MEMORANDUM

TO: Pete Sprague, Assembly President

Kenai Peninsula Borough Assembly Members

THRU: Dale L. Bagley, Mayor

THRU: Max Best, Planning Director

Paul Ostrander, Land Management Officer

FROM: Roy E. Dudley, Land Management Agent

DATE: September 18, 2003

SUBJECT: Ordinance 2003-19-20 An Ordinance Authorizing the Acquisition of Lot 6, Block 9, Fairview Subdivision, Plat No. 56-2936, Homer Recording District for an Addition to the South Peninsula Hospital and Appropriating $182,600.00 to Acquire the Property

The South Peninsula Hospital needs additional space for clinical services. To accommodate this need, the hospital proposes to move the offices of its accounting and education departments to the house and garage located on Lot 6, Block 9, Fairview Subdivision, Plat No. 56-2936, Homer Recording District, to provide additional space for clinical services. Attached is a map showing the proximity of this property to the hospital.

The purchase of subject Lot 6 was approved at the joint meeting of the South Peninsula Hospital Service Area Board and South Peninsula Hospital, Inc., board of directors on June 25, 2003. The owners have signed an Earnest Money Receipt and Purchase Agreement to sell Lot 6 for $182,000. The borough contracted with Northern Test Lab to complete a Phase 1 Environmental Site Assessment to be completed by October 15, 2003. This ordinance appropriates funds from the South Peninsula Hospital Service Area fund balance for the acquisition and closing costs.