MEMORANDUM

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: January 8, 2004

SUBJECT: Ordinance 2003-19-35: An Ordinance Authorizing the Acquisition of 12 acres from Carol and Frank Griswold for a New Seward Middle School and Appropriating $346,500 to Acquire the Property

The borough determined that it is no longer cost-effective to maintain the current Seward Middle School facility and it should be demolished.^{⁽¹⁾ A majority of borough residents voting in the
October 1, 2002 general election approved issuance of up to $14,700,000 in general obligation
bonds for capital improvements and property acquisition and other costs associated with the
Seward Middle School Project.}

The preferred site for the new Seward Middle School is 12 acres of a larger 47.46 acre parcel. This site was selected because of its proximity to the high school and elementary school, which will facilitate sharing common facilities. The 12-acre site is shown on map Exhibit B.

Carol and Frank Griswold own the 47.46 acre parcel. Tom Dunagan, MAI, completed an appraisal dated December 18, 2003 that concluded the market value is $0.60 per square foot, which is equivalent to $26,100 per acre rounded. The Griswolds are willing to sell their property for 10 percent over the appraised value at $0.66 per square foot. The borough and the Griswolds have negotiated terms of the sale as represented in the Draft Earnest Money Receipt and Purchase Agreement to sell a net 12.00 acres to the borough for $345,000. The borough will be responsible for the cost to survey and plat the 12 acres.

This ordinance appropriates funds from the project account for the Seward Middle School Project for the land acquisition and closing costs. The KPB Planning Commission will consider this ordinance at its regularly scheduled meeting of January 26, 2004, and the action taken will be reported to the assembly.

¹ Reference Project Rationale, Exhibit A, for the decision to construct a new Seward Middle School facility.