CITY OF ANDERSON

SPECIAL CITY COUNCIL MEETING

May 14, 2007

ANDERSON CITY HALL

Present:                                                                 Staff:

Mike Pearson, Mayor                                         Nancy Hollis, City Clerk                                                                   

Andy Archer                                                         Guests:

Daryl Frisbie                                                         Pam Fetzer                            Josh Hockin

Lindsay Erber @7:00 PM                                  Megan Hockin                     Scott Thompson

Keith Fetzer                                                          Colleen Taylor                     Sandy Trumbower

                                                                Samantha Rathbone          Sid Michaels                                                                                                                                        

Excused:                                                              

Jacob Noll                                                                                                                                                                                                                                                            

Mary Berry                                                          

ROLL CALL                                       The Special Meeting of the Anderson City Council was called to order by Mayor Mike Pearson at 6:35 PM.

AGENDA APPROVAL                     M/S D. Frisbie/A. Archer moved to approve the agenda.

                                                                There was no further discussion.  Motion passed unanimously.

Written Proposal

Keith Fetzer

Purchase of City

Municipal Land                      Keith Fetzer gave an oral presentation to the city council on purchasing city entitlement land adjacent to the Denali Borough Landfill.  He also presented a written proposal. His written proposal stated that he would like to purchase a ten acre parcel of land at the intersection of the Parks Highway and the Clear base access road for survey costs plus $ 1.00 and not more than $10,000.00.   His oral presentation included building the following businesses at the site:

                                                            Gas Station

                                                            Convenience Shopping Center

                                                            Fabric/craft center

                                                            Denali Learning Center Branch

                                                            Washeteria/laundry and shower facility

                                                            NAPA Parts store

                                                            Pizzeria/Chicken Wings Restaurant

                                                            Bakery

                                                He would like to start this project this summer.  He has verbal commitments from seven businesses for his bank for rental agreements.  He would like to have ten individual businesses.  Mayor Pearson wrote on the board the pros and cons of this venture:

                                                            Pros                                         Cons

                                                Businesses                                           Land is not appraised

                                                Jobs  35-40                                          What if the land does Mini-Mart                                              not get developed

                                                Convenience                                        Land free and clear

                                                Increased revenue for

                                                Sales tax

                                                18 months

                                                Council Person Archer stated that the land has not been valued.  Keith Fetzer stated that his banker has stated that he needs to own the land free and clear.  Mr. Fetzer stated that he needs to be able to diversify his business and not just offer a gas station to be able to get his loan.  Sid Michaels asked if anyone has looked into what type of customer base is available for this type of business, Mr. Fetzer stated that one has been done for Healy, but not in our area.  Colleen Taylor stated that it has been the past a dream of the council for a business such as this to exist.  Mayor Pearson asked what happens if Mr. Fetzer can not get the financing for the property and business, Mr. Fetzer stated that the property would revert back to the city.  Council Person Archer would like to see what the property is valued or appraised at, Mr. Fetzer stated that was the city options but in a cash deal an appraisal is not required.  Building would be 60 feet deep and 260 feet wide.    Mayor Pearson stated that we do not know what the costs of surveying would be for the two parcels.  The two tracts that we are having surveyed will cost $ 18,900.00.  Mayor Pearson stated that another individual had approached the council in prior years and the council had said no without title.  Council Person Archer asked if we should advertise the property prior to accepting a proposal.  Clerk Hollis also stated that the city needs to be very careful and following the city code and procedures to avoid conflict issues since a council person has submitted this proposal.  She also stated that it will take approximately three months to obtain the patent once the survey plat has been submitted.  Clerk Hollis stated that the city only has management control of the property.  Mayor Pearson wanted to know what the drop dead date for acceptance of this proposal would be.  Mr. Fetzer stated that his drop dead for this transaction would be June for things to work.  Sid Michaels stated that he has purchased property from the state in past years with the condition that title would be clear in the future.  Mayor Pearson wanted to know if the land should be advertised more than locally.  Council Person Frisbie stated that land has been advertised all over the world for our free land incentive.  He stated that the council has not received any other offers.  Josh Hockin stated the we just gave away over 30 acres to a bunch of individuals that are not residents, we have someone locally that wants to invest in the community.  Mayor Pearson just wants to cover the city’s legal issues and make sure someone can come in and accuse the city of making special deals for certain individuals.  Mr. Fetzer wanted to know that if we advertise this land and a large corporation is willing to purchase the land for considerable more monies, is the city willing to accept their deal just for the money.  Do small businesses have a chance at purchasing land to further the economic development of the community?  Clerk Hollis reviewed the ordinance for disposal of municipal land.  All disposals must be completed through a resolution or non code ordinance.  This proposal would fit the disposal for economic development.  The ordinance 11.04.070 D.  Method of Disposal states the following:

                                                            The city council may dispose of real property or an interest in real property to any person or entity in furtherance of local trade or industry without seeking bids and for less than the fair market value of that real property or interest in real property.  If a disposal is made to further economic development, the non code ordinance or resolution authorizing the disposal must include in addition to the requirements in section 11.04.060A:

1.      A finding that the property or property interest which is the subject of the disposal will be used in furtherance of the local trade or industry;

2.      A requirement that the conveyance of the property or property interest disposed of shall include a condition that the title will revert to the municipality in the event the property is no longer used for the local trade or industry justifying the disposal; and

3.      Any other requirements that the city council deems appropriate to advance the local trade or industry.

                                                Sid Michaels suggested that we have a public hearing at the time                                                        of the resolution.  He also stated that for the public notice a legal                                                       description would have to be included.  A letter of intent would                                                         have to be completed if work was going to be done prior to                                                         actual written contract.  Mayor Pearson stated that the city needs                                                         to follow its ordinance for the sale of this parcel.  Mayor Pearson                                                 stated that the city needs the legal description and land valuation.                                           Mr. Fetzer stated that the two ten acre parcels have been pinned.

                                                Mr. Fetzer stated that he needs a commitment from the city to                                                            sell the land pending the final surveyors report and agreement                                                            for a right away for access to the city property that is situated                                                      behind the ten acres.   

                                                A special meeting was scheduled for May 23^rd @ 6:30 PM for                                                           the resolution and public hearing on this land proposal.   City                                                             clerk will have the resolution and a contract available at this                                                   meeting.  The contract will be reviewed by the attorney.  It was                                                        suggested that we publish this information in the weekly school                                                        paper to notify the community and get the proposal advertised. 

ADJOURMENT                     M/S L. Erber/A. Archer moved to adjourn the meeting @ 8:05 PM.