ITEM TITLE:
#22-39 - Authorizing the Purchase of Nine Lots Within the Old Valdez Townsite to Include Lots 1, 2, 9-12, Block 43 and Lots 4-6, Block 55, US Survey 439 from Steve Alley in the Amount of 36,000
SUBMITTED BY: Kate Huber, Planning Director
FISCAL NOTES:
Expenditure Required: $36,000
Unencumbered Balance: $36,000
Funding Source: 350-8000-55000.582
RECOMMENDATION:
Approve resolution #22-39 authorizing the purchase of nine lots within the Old Valdez Townsite to include lots 1, 2, 9-12, Block 43 and Lots 4-6, Block 55, US Survey 439 from Steve Alley in the amount of $36,000.
SUMMARY STATEMENT:
Mr. Steve Alley contacted the Planning Department because he owns nine parcels located on the south side of the Richardson Highway in the Old Valdez Townsite. Mr. Alley inherited these parcels and would like to sell them to the City of Valdez. The parcels are about 7,000 square feet in size and have not been modified since the original plat. The lots are not accessible. The area has been platted, but is unimproved.
The terrain near the mouth of Valdez Glacier Stream has changed drastically since the 1891 plat and has increased access issues due to some of the platted roads now being located in the streambed. The lots for sale are not impacted, but this contributes to the challenges with establishing access to the area.
The parcels in this area are zoned light industrial, in part due to concerns related to soil stability, and the desire to prevent residential development from occurring in the old town area. The Comprehensive Plan depicts place types of industrial business & production (closer to the highway) and working waterfront (closer to the water.) Additionally, in the development suitability map, the areas closer to the water are not recommended for development, due to significant environmental constraints.
In order for this area to be developed, access will need to be established, requiring changes to the existing plat. Also, the small lot size poses issues for light industrial development. For this reason, city staff desires to eventually re-plat the area to resolve access issues and design lots that are more suitable for the type of development outlined in the comprehensive plan.
Because Mr. Alley desires to sell his parcels, staff is recommending Council approves the purchase of the nine parcels. There are other privately held parcels in the area but reducing the number of property owners will more easily facilitate the subdivision process. The city already owns the majority of remaining Old Valdez Townsite parcels.
The parcels in consideration are located in the same area as the 20 parcels council authorized for purchase in March. Prior to that authorization, staff ordered an appraisal of one of the lots involved in the first authorization. The value of that lot, 840 Klutina Street or Lot 3, Block 50, Old Valdez Townsite, is $4000.
Valdez Municipal Code Section 4.10.010 states that “all acquisitions of any interest in real property shall be approved by resolution of city council.” Should council approve this resolution, the City Manager and Planning Staff will work with our legal team to execute a purchase and sale agreement with Mr. Alley to purchase the lots in the amount of $36,000 to be conveyed via warranty deed. The code also requires a phase I environmental assessment to be completed prior to conveyance of the property.