MEMORANDUM

TO: Pete Sprague, Assembly President

Kenai Peninsula Borough Assembly Members

FROM: Grace Merkes, Assembly Member

DATE: February 4, 2004

SUBJECT: Ordinance 2003-19-38 , Authorizing the acquisition and sale of property to the Sterling Area Senior Citizens

The Sterling Area Senior Citizens ("SASC"), an Alaska nonprofit corporation, owns property in Sterling upon which the Sterling Senior Center facility is built. The adjacent property (Lots 4, 5, & 6, Block 2, Sumpter Subdivision) has been listed for sale by the owner and the SASC needs the property in order to construct planned facilities and provide space for a well and septic system capable of supporting both the existing facility and planned facilities.

At this time the SASC is planning to construct the first phase of the planned senior campus which is a 10 unit apartment complex. The SASC has verbally offered to purchase the property for $60,000 although it was advertised for $80,000. The seller has indicted his willingness to sell it at this price, but would require two balloon payments in the amount of $20,000 each. The SASC is very concerned that it will not be able to meet this payment schedule.

The services provided by the SASC in constructing these facilities and using the property for these purposes would provide a significant benefit to the Sterling community. The benefit would include temporary construction jobs and permanent jobs associated with operating the facility and providing the services. The SASC intends that the planned fitness center would be available to both the senior citizens and the general public. As this facility would be for these public purposes the SASC is requesting that the borough, as its local governing body, provide better financing terms in order to enable it to purchase this property for this public purpose. The Sterling Senior Center is a designated Emergency Center and has been used for borough emergencies such as floods and fires and elections. The benefit to the borough also includes its receipt of a better rate of interest than is currently received by the borough's Land Trust Fund and the borough population would receive the public services offered by the SASC. Attached is the resolution of the SASC requesting borough assistance in obtaining this land. Your support of this ordinance would be appreciated.