Municipality of Anchorage, AK Chapter 25.40 HERITAGE LAND BANK [1]

[1] Editor's note — Prior history: AO No. 79-170; AO No. 83-86; AO No. 86-108(S); AO No. 87-98(S); AO No. 94-99, 2, 6-7-1994.

§ 25.40.010 Heritage Land Bank established—Purpose and mission.

There is established a Heritage Land Bank. It is the mission of the Heritage Land Bank to manage uncommitted municipal land and the Heritage Land Bank fund in a manner designed to benefit the present and future citizens of Anchorage, promote orderly development, and achieve the goals of the comprehensive plan. The Heritage Land Bank shall acquire, inventory, manage, withdraw, transfer and dispose of municipal land which has not been dedicated or transferred to a specific municipal agency for one or more municipal uses. Acquisition, inventory, management, retention, withdrawal, transfer and disposal of Heritage Land Bank land shall be governed solely by this chapter and the regulations and policies adopted pursuant thereto.

A. The acquisition responsibility of the Heritage Land Bank is to apply for and acquire, in the name of the municipality, all lands to be transferred to the municipality from the state as part of the municipality's land entitlement under the Municipal Entitlement Act, AS 29.65.010—29.65.130, as well as other land acquired by the municipality by purchase, donation, exchange or other means which is to be managed by the Land Bank on behalf of the municipality pursuant to section 25.40.015A. Land acquired under this section shall be added to the Heritage Land Bank inventory.

B. The inventory responsibility of the Heritage Land Bank is to identify all land and interests in land to be managed and/or retained by the Heritage Land Bank for future municipal use or disposal. The inventory shall identify each parcel of Land Bank land, including all related information which may be useful for proper land management. The Heritage Land Bank will perfect the municipality's title to all land in the Heritage Land Bank inventory and maintain complete and accurate public records regarding the location, size and classification of all such parcels of land, including their planning and zoning status and the identification of valid existing rights. The inventory shall be updated by the Heritage Land Bank at least once every three years.

C. Where land is retained, it shall be managed in a manner which will protect and enhance its economic and other municipal values, consistent with section 21.05.020. The Heritage Land Bank shall seek to ensure that the economic and other public values of this land are not diminished as a result of ongoing land management activities. It shall be the responsibility of the Heritage Land Bank to work with the school district, public works department, community planning and development department, department of cultural and recreational services, and other municipal agencies to contribute to the long range analysis of the need of the municipality to retain various properties in the Heritage Land Bank for future municipal needs. The Heritage Land Bank may enter into cooperative land management agreements with other public agencies to achieve municipal purposes and to enhance the management of Heritage Land Bank land. Such agreements shall be consistent with section 25.40.020. The decision to enter into such an agreement shall be made after public notice and hearing as specified in this chapter. The recommendations of the Heritage Land Bank advisory commission shall be supported by the record that it is in the municipality's best interests.

D. Consistent with section 25.40.015B, the Heritage Land Bank may, at the direction of the mayor and assembly, withdraw and transfer to municipal agencies or to the school district, land from the Heritage Land Bank inventory needed for the location of public facilities or purposes, including schools and designated or dedicated parks or open space lands. The Heritage Land Bank shall condition such withdrawals and transfers upon a reverter clause which specifies that the land will be returned to the Heritage Land Bank inventory if it is not managed by the affected municipal agency for its intended purpose.

E. The disposal responsibility of the Heritage Land Bank is, at the direction of the mayor and assembly, to convey from municipal ownership Heritage Land Bank land or interests in land which is not needed for specific public facilities or purposes. Each disposal shall be in the municipal interest, and based at or above appraised fair market value or for other equivalent municipal values or objectives, under the procedures specified in section 25.40.025.

F. The Heritage Land Bank is the municipal agency designated the exclusive grantee of conservation easements and recipient of funds generated by compensatory mitigation agreements with the U.S. Army Corps of Engineers.

(AO No. 95-198(S-3), § 2, 12-5-1995; AO No. 2009-68, § 1, 6-16-2009)

§ 25.40.015 Heritage Lands—Designation for and withdrawal from, the Heritage Land Bank for public purposes.

A. In addition to the municipal land which is by this chapter designated for the Heritage Land Bank, the mayor, with assembly approval, may designate additional municipal land or interest in land for placement in the Heritage Land Bank. Such land or interests in land designated for the Heritage Land Bank shall be consistent with the Heritage Land Bank's purpose and mission specified in section 25.40.010, and will generally be:

1. Land to be reserved for a specific future municipal use, or needed for future municipal uses.

2. Land determined to be excess to specific municipal needs but which is unsuitable for municipal development or for disposal, including wetlands and lands subject to geophysical and terrain limitations, such as seismic or avalanche hazards or other severe development constraints. Such land shall be retained by the Heritage Land Bank pending its future designation as parks, open space, or other appropriate classification.

3. Land determined to be excess to those present or future municipal needs and which may have present or future market value for industrial, commercial, residential, recreational, institutional, park, open space, or other municipal use.

B. The mayor, with assembly approval, may withdraw land from the Heritage Land Bank inventory for any lawful municipal purpose, consistent with the comprehensive plan and implementing measures or applicable site specific land use studies. Such a withdrawal shall become effective only after at least 30 days' prior written notice to the Heritage Land Bank advisory commission, to the affected community council and to the public as specified in section 25.40.030, and after at least one public hearing regarding the proposed withdrawal. If land is withdrawn from the Heritage Land Bank inventory for use and management by a public agency which is not supported by municipal taxes, compensation shall be paid to the Heritage Land Bank for at least the current appraised fair market value of the land, unless otherwise provided in this chapter.

C. The mayor shall periodically review the current land holdings of all municipal agencies, including the school district, to determine whether any land is excess to present or future needs and uses. After completion of such review, the mayor, upon written findings and with assembly approval, shall transfer qualifying land to the Heritage Land Bank inventory.

D. School lands.

1. Acquisition. Until formally designated as school land, and compensation is paid according to this section, all land acquired by the municipality for a potential school site shall be held in inventory and managed by the Heritage Land Bank.

2. Lands held for potential school sites may be managed and used by the Heritage Land Bank for any purpose not inconsistent with their ultimate use as a school site.

3. Land identification.

a. Following a determination of need by the Anchorage school district, and approval by the Anchorage School Board, the school district shall make a request in writing to the Heritage Land Bank to identify municipal lands available for use as potential school sites.

b. If no land available in inventory meets the need of the school district, the municipality may utilize any method set out in Chapter 25.20 to identify and acquire property for potential school sites.

c. Such acquisitions shall be available for consideration as potential school sites, subject to Section 21.15.015.

d. Upon assembly designation of a school site, and compensation as described in this section, management authority shall be delegated to the school district.

4. Compensation. At the time of delegation of management authority, Heritage Land Bank shall provide the mayor and school district an accounting showing all costs and fees associated with the land acquisition, including whether the costs were paid by the school district or by the municipality.

a. Notwithstanding the disposal provisions in Section 25.40.025, the school district shall pay the Heritage Land Bank for all land acquisition costs incurred by the municipality, except the assembly may, in its discretion, waive some or all of the acquisition costs.

b. Compensation may occur by cash payment, exchange, credit, or any combination thereof, as mutually agreed between Heritage Land Bank and the school district, and approved by the assembly.

5. Lands determined by the school district and approved by the school board to be excess to school needs shall be returned to the Heritage Land Bank inventory, upon assembly approval and compensation to the school district pursuant to this section.

(AO No. 95-198(S-3), § 2, 12-5-1995; AO No. 2007-124(S), § 3, 9-25-2007)

§ 25.40.020 Management of Heritage Land Bank lands.

The Heritage Land Bank advisory commission shall recommend, and submit for assembly action, a comprehensive land and fund management program, including written policies and procedures, to accomplish the purpose and mission of the Heritage Land Bank specified in section 25.40.010. Such a program shall contain, at a minimum, the following elements:

A. Five-year management plan. The advisory commission, following public notice and hearing as specified in this chapter, shall recommend, and submit for assembly approval, a five-year Heritage Land Bank management plan. The plan shall identify those land acquisition, inventory, management, transfer, and disposal objectives anticipated during this time frame. The plan shall also contain the five-year revenue and expenditure projections of the Heritage Land Bank Fund. The plan shall be maintained and updated when necessary, but at least once every five years.

B. Annual work program. The advisory commission, following public notice and hearing as specified in this chapter, shall recommend, and submit annually for assembly approval, a work program which conforms to the current or proposed five-year management plan and which includes detailed descriptions of the proposed land acquisition, inventory, management, transfer and disposal activities of the Heritage Land Bank for the coming year, including revenue and expenditure projections of the Heritage Land Bank Fund, and proposed budget for the Heritage Land Bank. A public notice, as set forth in this chapter, of not less than 45 days, is required prior to a hearing by the Heritage Land Bank advisory commission on the annual work program. All new proposed land sale activities not currently in the program will require an assembly approved amendment. The annual work program shall include a review of Heritage Land Bank activities during the prior year, including but not limited to:

1. A financial audit, if available, of all Heritage Land Bank accounts, including income, expenditures and investments;

2. A summary of each transaction involving Heritage Land Bank land or the Heritage Land Bank fund; and

3. An inventory of all Heritage Land Bank fund expenditures.

C. Policies and procedures. The Heritage Land Bank advisory commission shall develop, adopt and maintain comprehensive policies and procedures to govern the management of Heritage Land Bank land and fund. These policies and procedures shall be submitted for assembly action, following public notice and hearing as specified in this chapter.

(AO No. 95-198(S-3), § 2, 12-5-1995)

§ 25.40.025 Heritage Land Bank disposals.

A. The Heritage Land Bank advisory commission shall hold a public hearing, with public notice as specified in this chapter, prior to making a recommendation to the mayor and assembly regarding the disposal of Heritage Land Bank land or an interest in land. Land disposals under this chapter include land sales, land exchanges, leases, and easements.

B. After the public hearing, the advisory commission shall submit a written finding and recommendation to the mayor and assembly, stating whether or not a proposed land disposal is in the best interest of the municipality, and consistent with the Heritage Land Bank's purpose and mission. The written finding shall identify the proposed land disposal, including details regarding its method, timing, and terms, its projected effects on the neighborhood and on public facilities, and other relevant information. All proposed land disposals shall also specify those terms and conditions necessary to ensure that the Heritage Land Bank receives the maximum overall benefit for the disposal of its land, including equivalent non-monetary public benefits, consistent with the municipality's best interests.

C. The Heritage Land Bank shall determine which land or interests in land should be disposed of; consistent with section 25.40.020 and the comprehensive plan and implementing measures. If the information in the comprehensive plan and implementing measures is insufficient to determine whether the disposal of a parcel or parcels is consistent with the plan or measures, the Heritage Land Bank shall complete a site specific land use study for the use of the land which has been adopted through the public process specified in this chapter. Each site specific land use study shall address; a) the need for community facilities such as roads, parks, trails, schools, satellite municipal offices, etc; b) identify historical and natural landmarks, natural hazards, and environmentally sensitive lands; c) public utility needs; d) potential residential, commercial and industrial uses; e) land use compatibility with adjacent areas; and f) consistency with land uses identified in the Comprehensive Plan and zoning for the area.

D. Except as otherwise provided in this section, all proposed Heritage Land Bank land sales shall occur by an open competitive bid process for at least the appraised fair market value of the land, as determined by a State of Alaska certified real estate appraiser designated by, and given appropriate written instructions from, the Heritage Land Bank. An application to purchase Heritage Land Bank land shall grant the applicant no right of preference or priority. Should the open competitive bid process fail to result in the sale of the Heritage Land Bank parcel, the Heritage Land Bank may continue attempts to sell the parcel by choosing one of the following methods:

1. The Heritage Land Bank may enter into direct negotiations with interested parties who seek to acquire municipal land in HLB inventory.

2. The Heritage Land Bank may invite sealed bids for municipal land in HLB inventory, specifying the time and place for receiving bids and the minimum acceptable bid.

3. The Heritage Land Bank may offer municipal land in HLB inventory for sale at public auction, specifying a minimum acceptable bid, or specifying that if no higher price is offered, the land may be sold pursuant to a preexisting contract for sale for the minimum bid amount.

4. The Heritage Land Bank may invite proposals to purchase municipal land in HLB inventory for a fixed price. The invitation shall specify the basis upon which proposals shall be evaluated, which may include but need not be limited to the quality of proposed development of the land and its benefit to the community, the qualifications and organization of the proposers, the value of the proposed improvements to the land and the rents or resale prices to be charged by the proposer.

E. The Heritage Land Bank may exchange Heritage Land Bank land for other land on at least an equal value basis, as determined by a fair market value appraisal.

F. The Heritage Land Bank may lease Heritage Land Bank land.

1. The leases shall be awarded by open competitive bid process in one of the following ways:

a. For at least appraised fair market rental rates, as determined by a certified real estate appraiser designated by, and given appropriate written instructions from, the Heritage Land Bank;

b. Percentage of receipts; or

c. User fee equivalent.

2. Where leases are based on appraised fair market rental rates under subsection F.1.a above, the lease rates shall be adjusted at intervals of no more than five years to reflect current market conditions. An application to lease shall grant the applicant no right of preference or priority. Heritage Land Bank land may be leased non-competitively to a non-profit agency for less than its appraised fair market value if the municipal benefits which are projected to accrue are found by the mayor and the assembly to be in the best interest of the municipality.

G. "Appraised fair market value," for purposes of this chapter with respect to land sales or exchanges but not leases, means the most probable price in cash, terms equivalent to cash, or in other precisely revealed terms, for which the appraised property will sell in a competitive market under all conditions requisite to fair sale, with the buyer and seller each acting prudently, knowledgeably, and for self-interest, and assuming that neither is under undue duress. If the appraised fair market value would be increased by a rezoning of a parcel of land prior to its disposal, the Heritage Land Bank may seek a rezoning under applicable municipal procedures, taking into account the compatibility with the surrounding neighborhood.

H. In order to assist development that will provide public benefits and notwithstanding any other provision of this section, Heritage Land Bank land may be disposed of by lease, sale or other disposition, for the purpose of facilitating a specific project. The project shall provide public benefits. In addition to and consistent with the applicable requirements of titles 21, 23 and 24 of this Code, the disposition shall include additional requirements and conditions to insure the proper development and completion of the project in the public interest. Disposals pursuant to this subsection shall be through requests for proposals or through invitations to bid. The disposition of property pursuant to this subsection may be for less than fair market value or less than fair market rental rate. However, the Heritage Land Bank shall, for informational purposes only:

1. Provide a descriptive summary of the public benefits expected from the project; and

2. Obtain an appraisal of the value of the property, determined by a certified real estate appraiser, if it were disposed of without the development requirements imposed pursuant to this subsection. Assembly approval of a disposition under this subsection shall include a finding that the disposition provides public benefits.

3. A summary listing and description of estimated economic and non-economic benefits and costs associated with the project. This summary should be succinct, concise, and quantified where appropriate, and should not exceed two pages in length.

I. The competitive bid process shall not apply to disposals of easements on municipal land in HLB inventory. The Heritage Land Bank shall dispose of these easements pursuant to the methods described in subsections D.1 through D.4 for at least the appraised fair market value of the easement, as determined by a State of Alaska certified real estate appraiser designated by, and given appropriate written instructions from, the Heritage Land Bank.

(AO No. 95-198(S-3), § 2, 12-5-1995; AO No. 2002-135(S), § 1, 10-29-2002; AO No. 2014-69, § 1, 5-20-2014)

§ 25.40.030 Public notice procedures.

A. All public notices required by this chapter for actions proposed to be taken regarding Heritage Land Bank land or fund shall be given in substantial compliance with this section.

B. All Heritage Land Bank activities requiring notice to the public shall be preceded by notice by publication calculated to achieve the greatest reasonable notice.

C. A proposed action shall be noticed by a sign conspicuously placed upon the land proposed for action. The sign shall generally identify the proposed action and include the information specified in section 25.40.030F, the sign shall be easily visible to the public and be placed upon the land no less than 14 days prior to a public hearing by the Heritage Land Bank Advisory Commission on the proposed action.

D. In addition to notice by publication and signage, notice by mail shall be given to:

1. The community council for the area where the land is located, including the Girdwood Board of Supervisors, as well as any other community council which requests notice of Heritage Land Bank activities; these community councils shall be given an opportunity to provide public input prior to the Heritage Land Bank advisory commission taking action.

2. All persons listed in the records of the municipal assessor as owners of land abutting the parcel proposed for Heritage Land Bank action and all owners of:

a. The parcels of property within 500 feet of the outer boundary of the parcel proposed for action; or

b. The 50 parcels nearest the outer boundary of the parcel proposed for action;

whichever is the greater number of parcels, at the addresses of record according to the municipal assessor's files; and

3. All persons requesting general notice of proposed Heritage Land Bank actions, from a standing list of names and addresses which the Heritage Land Bank shall maintain.

E. All public notices of proposed Heritage Land Bank Advisory Commission actions, including public hearings regarding proposed actions, shall precede a hearing before the advisory commission on the proposed action by at least 14 days.

F. All required public notices concerning proposed Heritage Land Bank advisory commission public hearings and actions shall describe the proposed action, and shall give the location of the land proposed for action, including the legal description and reference to nearby streets or other landmarks, a map of the area, and a statement of the date, time, and location for any public hearing or other public response to the proposal.

(AO No. 95-198(S-3), § 2, 12-15-1995; AO No. 2002-136, § 1, 10-15-2002; AO No. 2009-134, § 1, 1-12-2010)

§ 25.40.035 Heritage Land Bank fund.

A. There is hereby established a Heritage Land Bank operating fund and a Heritage Land Bank capital fund. All income obtained by activities of the Heritage Land Bank, including but not limited to revenue received by the municipality from the disposal of Heritage Land Bank land, or for the use of that land, and all interest earned on funds in Heritage Land Bank accounts, shall be deposited in the Heritage Land Bank operating fund, to be applied solely to the Heritage Land Bank purposes stated in this chapter. Funds from other sources may also be deposited in the Heritage Land Bank operating fund, but shall be separately accounted for. All monies held by the municipality in connection with any activity of the Heritage Land Bank shall be held in its capacity as a public fiduciary, and shall be accounted for in accordance with subsection B.

B. All funds held by the municipality in connection with all activities of the Heritage Land Bank, including but not limited to revenue received by the municipality through the sale, lease, other disposal or use of land or interest in land that has been placed in the Heritage Land bank, the value of any receivables, and all interest earned on funds in the account shall be accounted for separate of all other municipal funds. The accounting for land bank funds shall be sufficiently detailed to provide an annual financial audit to the assembly, pursuant to the annual reporting requirements of this chapter.

C. A portion of the Heritage Land Bank operating fund accounts may be appropriated annually for management of the Heritage Land Bank and the land in the Heritage Land Bank inventory, to fulfill the purpose and mission of the Heritage Land Bank as stated in this chapter.[1]

[1] Editor's note — AO No. 96-198(S-3) provided that subsection C is effective 1-1-1996.

D. In addition to the use of the fund for the Heritage Land Bank operating budget as provided in section 25.40.035C, revenue in the Heritage Land Bank operating fund may be appropriated by the mayor and assembly to the Heritage Land Bank capital fund only for the acquisition of land for municipal use, and for improvements to Heritage Land Bank land. The Heritage Land Bank Advisory Commission shall receive at least 30 days prior notice of any proposed assembly action regarding any proposed appropriations from the fund.

E. Heritage Land Bank fund revenue not appropriated pursuant to subsections C and D, above, shall be prudently invested, consistent with the municipal interest and the fiduciary nature of the fund. Interest earned from such investments shall be reinvested in the fund or appropriated pursuant to this chapter.

F. "Improvements to Heritage Land Bank land," for purposes of this chapter, means a valuable addition to Land Bank property or an amelioration in its condition, intended to enhance its value or utility or adapt it for new or further purposes, including expenditures to extend the useful life of the property asset, to improve its performance, or for off-site mitigation necessary to improve Land Bank land.

(AO No. 95-198(S-3), § 2, 12-5-1995)

§ 25.40.040 Heritage Land Bank executive director.

An executive director of the Heritage Land Bank shall be appointed by the mayor and confirmed by the assembly, acting upon the recommendation of suitable candidates made by the Heritage Land Bank advisory commission. The executive director shall have professional experience in land and resource management, and shall be responsible for the day-to-day management of the Heritage Land Bank, the Heritage Land Bank fund, and any staff assigned to those duties. The executive director is authorized to hire and retain necessary staff; subject to approval of the mayor, and shall serve as the executive secretary and technical advisor to the Heritage Land Bank advisory commission.

(AO No. 95-198(S-3), § 2, 12-5-1995)

§ 25.40.045 Transition provisions.

A. The provisions of this chapter shall, upon adoption, apply to all future actions of the Heritage Land Bank and the advisory commission, except in any instance in which, in the written opinion of the municipal attorney, private contract or property rights have already vested as the intended result of a decision or action taken prior to the effective date of this chapter with regard to a particular parcel of land in the Heritage Land Bank inventory.

B. Notwithstanding any other provision of this chapter to the contrary:

1. The supplemental appropriation of 50 percent of the 1995 net revenues of the Heritage Land Bank made to the Areawide Capital Projects Fund in 1996 after the close of the 1995 fiscal year, accounted for as a 1995 appropriation, shall continue to be effective for the fiscal year 1996 as approved and shall not be otherwise affected contrary to its purpose by this chapter; and

2. The 1996 municipal budgets approved and adopted prior to the end of 1995, their implementation and appropriations made in furtherance thereof shall not be modified, amended or prohibited by this chapter.

(AO No. 95-198(S-3), § 2, 12-5-1995)