Borough Lands for Sale

Requests to purchase Borough-owned real property shall follow the procedure established in Resolution 2517. This resolution establishes three procedures for the consideration of requests to purchase Borough-owned real property as outlined below.

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  1. Borough Lands

    1900 First Ave.
    Suite 126
    Ketchikan, AK 99901

    Ph: 907-228-6610
    Fx: 907-228-6698

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1. Procedures for Determining the Best Interest of the Borough.
Upon receipt of a  request to the purchase Borough-owned real property that is not currently offered for sale, the following steps shall be taken to determine the best interest of the Borough with respect to the prospective sale of such property:

(a)    The Borough Manager shall review the characteristics of the property requested to be sold, giving due consideration to the Borough’s current and anticipated future infrastructure needs.

(b)   If the Borough Manager determines that the property is needed for Borough purposes, the request shall be denied. A written statement of the reasons for the denial shall be provided to the individual or organization that submitted the request and a copy of the statement shall be provided to the Assembly.

(c)    If the property is surplus to the Borough’s current and anticipated future needs, the Borough Manager shall present a resolution for consideration by the Assembly authorizing disposal of the property for a proposed “Real Property Value” as defined in KGBC 11.40.020.

2. Acceptance of an Offer from an Individual or Realtor.
For unsolicited offers for the purchase of real property presented by an individual directly or by a realtor on behalf of a prospective buyer, the following procedure shall be used where the Assembly has authorized the sale of the property by adopting a resolution presented in accordance with Section 1(c) of this resolution.

(a)    The Borough Manager shall advertise the property for sale for at least once a week for two consecutive weeks starting from the effective date of the resolution authorizing disposal. The Borough Manager may take other steps, such as posting the property for sale on the Borough’s website, to increase public awareness of the availability of the property for sale.

(b)   All offers must be accompanied by an earnest money deposit of $1,000 to be applied to the sales price. In the event an accepted offer is withdrawn the earnest money for the accepted offer shall be forfeited in its entirety.

(c)    The dollar amount of the offers shall be published on the Borough website and posted on the bulletin board outside the office of the Borough Planning and Community Development Department within eight working hours from the receipt by the Borough Manager.

(d)   After at least seven days following the second advertisement noted in Section 2(a) of this resolution, the Borough Manager may accept the highest offer to purchase the property provided that the highest offer is at least 90 percent of the gross amount (i.e., without deduction) of the “Real Property Value” for the property as determined by the Assembly pursuant to KGBC 11.40.020 except as noted in (e) of this section. In the case of equal offers, the first offer received will prevail. To be considered, a “higher offer” must be the greater of at least one-half of one percent or $1,000 more that the present highest offer submitted to the Borough. Whenever a higher offer is received, the steps in (a)-(d) of this section need not be completed with respect to the previous highest offer; however, the steps in (a)-(d) shall be repeated with respect to the final highest offer to give the other prospective purchasers a reasonable opportunity to submit new offers.

(e)   Realtors may submit offers on behalf of prospective buyers. If a realtor submits the “highest offer” as defined here for a parcel, the Borough shall pay a commission equal to 5 percent of the selling price. For purposed of determining the highest offer, offers presented by realtors shall be calculated as the offer price less the commission.

3. Sales through an Open Listing of Property.
For a request to purchase Borough-owned real property that is not listed or offered for sale, unaccompanied by any specific offered price, the Borough Manager may enter in an open listing agreement with an and all existing full-service licensed real estate brokerage firms whose regular and primary business is sales and marketing of real estate in the Ketchikan Gateway Borough. Sales through an open listing of property shall be subject to the following conditions:

(a)    All offers must be accompanied by an earnest money deposit of $1,000 to be applied to the sales price. In the event that an accepted offer is withdrawn, the earnest money for the accepted offer shall be forfeited in its entirety.

(b)   The Borough Manager will have five working days to respond to any offer in a gross amount (i.e., without deductions) equal to or greater than 90 percent of the listing price; all offers below 90 percent of the listing price shall be addressed by the Assembly.

(c)    The real estate commission rate for properties listed with multiple realtors shall be 10 percent of the selling price, with half paid to the selling agency, and the other half divided equally among the remaining participating listing agencies.