A. Authority to Sell or Dispose of Property. The city may sell, convey, exchange, transfer, donate, dedicate, direct or assign to use, or otherwise dispose of city-owned real property by any lawful means or conveyances.

B. Form of Sale or Disposition. The city may sell or dispose of real property by warranty or quitclaim deed, easement, grant, permit, license, deed of trust, mortgage, contract of sale of real property, plat dedication, lease, tax deed, will, or any other lawful method ormode of conveyance or grant. Any instrument requiring execution by the city shall be signed by the mayor and attested by the city clerk. The form of any instrument shall be approved by the city attorney.

C. Rights and Powers. The city shall have and may exercise all rights and powers in the sale and disposal of real property as if the city were a private person; provided, however, the city shall not waive any immunities of a municipality regarding the sale or disposition of real property unless specifically provided for by resolution concerning the specific sale or disposition. The city may sell or dispose of any real property, including property acquired or held for or devoted to a public use, when in the judgment of the city council it is no longer required for municipal purposes.

D. Public and Charitable Conveyances. The council may sell, donate or exchange with the United States, the state, any political subdivision, or a nonprofit organization, city-owned real property without a public sale and for less than the fair market value, whenever in the judgment of the city council it is advantageous to the city to make the conveyance.

E. Property Exchanges. The council may approve, after public notice, the conveyance and exchange of a parcel of city property for an equivalent parcel of property owned by another person, subject to such conditions as the council may impose on the exchange, whenever in the judgment of the city council it is advantageous to the city to make the property exchange.

F. Grants for Federal and State Programs. The council may grant or devote real property no longer held for public purpose to the United States, the state of Alaska, a local subdivision, or an agency of any of these governments, for a consideration agreed upon between the city and the grantee without a public sale if the grant or devotion is advantageous to the city. Any approval of a federal or state program providing for the participation or cooperation of the city by grant or devotion of the real property is a sale of that real property for the consideration stated in the program.

G. Industrial Sites. Notwithstanding any other subsections of this section, the city may sell, lease or dispose of sites acquired for new industries benefiting the city upon the terms and conditions as the city council considers advantageous to the civic welfare of the city, to a person who agrees to install, maintain and operate a beneficial new industry.

H. Change of Use. Real property acquired or purchased for one city purpose may be appropriated, transferred, assigned, or directed without public sale to another city purpose, whenever the city council determines that the purpose for which the property was acquired or purchased no longer exists, or the property is no longer used or useful for the purpose. No formal conveyance is necessary to dispose of the real property to another city purpose, and the disposition may be made to another purpose with or without legal consideration for the disposition. The city may sell, convey or otherwise dispose of real property no longer used or useful in the operation of a city-owned utility. Real property no longer needed for the purpose for which the real property was acquired or purchased, or utility property no longer used or useful in the operation of a city-owned utility, is no longer property owned, held for or devoted to a public use, and may be sold or disposed of as provided in this chapter if the council determines the real property is not useful to the city for any other purpose.

I. Conveyance of Public Improvement Property Interests. The city council may at any time, without public sale, convey, quitclaim, release, cancel, or otherwise relinquish any real property easement, right-of-way, permit, or license the city may have or hold for the purpose of installing, constructing, or maintaining a public improvement, whenever the interest is no longer used or useful for that purpose.

J. Real Property as Security. The council may pledge, mortgage or otherwise secure city real property for the payment of city bonded or other indebtedness when required, as authorized by law.

K. Public Sale. Unless otherwise provided in this chapter, real property no longer used or useful for a public use or purpose shall be sold to the highest responsible bidder at a public sale. Public sale shall not be required where the real property of the city is subject to any term or condition restricting or limiting the ability of the city to obtain the fair market value of the property.

L. Notice. Unless otherwise provided in this chapter, notice of a proposed public sale of real property shall be published not less than two weeks prior to bid date in a newspaper of general circulation in the city. The notice shall contain a description of the real property to be sold and the time, date, place and any terms or limitations of the public sale.

M. Fair Market Value. Real property shall be sold for not less than the fair market value. If a public sale does not result in a bid equal to or greater than the fair market value and costs of sale, the council may sell the real property at a private sale or may conduct another public sale. In the event of an authorized private sale or another public sale, the council may approve the sale of the property at the highest price which may be obtained. “Fair market value” as used in this subsection means the price determined in terms of money at which the real property is appraised by a qualified appraiser, or the value assessed by the borough tax assessor.

N. Procedure on Public Sale. The council in the resolution authorizing the sale of real property shall set forth the terms and conditions of the public sale. The council may reserve the right to reject any and all bids received at the public sale, if the highest bid is below the fair market value and costs of sale or is not made by a responsible bidder. The resolution shall provide if the sale is for cash, or cash deposit and a purchase agreement. If the sale is for a cash deposit and a purchase agreement, the city manager shall prescribe the form of the purchase agreement. No sale or purchase agreement will be enforceable against the city unless and until the city council approves such sale or purchase agreement. The approval of any public sale by the council authorizes the city manager to take all steps and execute all instruments to complete and close the sale. The city manager shall conduct the sale, and shall give to the bidder at the auction a receipt for all moneys received by the city. A purchaser at a public sale who fails to make such other cash payments within the times required by the resolution shall forfeit any cash deposit paid to the city.

O. Appraisal. No real property shall be sold at a public sale unless the real property to be sold has been appraised by a qualified appraiser within 180 days prior to the date of the resolution authorizing the public sale.

P. Council Action. No action of the council to dispose of any city interest in real property dedicated to public use shall be final until the resolution to do so has been on file in the office of the city clerk for 30 days. Prior to any council action on the sale of real property, the city manager shall make his recommendation to the city council as to any change of use or merits of the sale or disposition of the real property.

Q. Purchase Agreement. A purchaser of real property from the city may purchase the real property by purchase agreement if provided in the resolution for the sale. Unless otherwise provided in the resolution for the sale, a purchase agreement shall provide for a deed, note and deed of trust. The purchase agreement shall be executed by the mayor, attested by the city clerk and approved as to form by the city attorney.

R. Broker. The city may employ a broker for the sale of real property and may pay the broker a commission for the sale. The employment shall be in the resolution for the sale of the real property and any contract of employment shall be first approved by the city council unless the city council authorized the city manager to execute the contract without approval.

S. Easements and Rights-of-Way. The city may reserve any easement and right-of-way to be used for public improvements and purposes before selling or disposing of city-owned real property. The city council may make such restrictions, limitations, reservations, reversions, or other covenants the council may find advantageous to the city even if the fair market value of the property is affected. The effect of these reservations may be considered in determining the fair market value of the property.

T. City Manager Regulations. The city manager may provide by regulation for the procedures and forms as to applications, surveys, appraisals, auction, bidding, form or substance of purchase agreement, or any other matter involving the sale or disposition of city property not inconsistent with and to implement the intent and purpose of this chapter. The absence of a regulation or an inconsistent resolution shall not invalidate any public sale procedure, or conveyance executed or to be executed by the city, where the requirements of this chapter have been otherwise satisfied. (Ord. 544 § 3, 1999; Ord. 246 § 3, 1982)