MEMORANDUM

TO: Pete Sprague, Assembly President

Kenai Peninsula Borough Assembly Members

THRU: Dale Bagley, Mayor

Craig Chapman, Controller

Max Best, Planning Director

FROM: Paul C. Ostrander, Land Management Officer

DATE: June 11, 2004

SUBJECT: Resolution 2004-065; Authorizing the Acquisition of the Underlying Interest of Certain Lands Adjacent to the Central Peninsula General Hospital

The Kenai Peninsula Borough is currently in the process of expanding the Central Peninsula General Hospital. Certain lands needed for that expansion are encumbered by easements in favor of the City of Soldotna for street, water, and sewer purposes only. The underlying ownership of these parcels vests in the estate of Eleanor Faa Carver. The City of Soldotna has agreed to vacate these easements if the borough obtains the underlying ownership. Exhibit A shows the location of the property to be acquired. Upon completion of this acquisition and Soldotna's vacation of the easements, the borough will have clear title to all property underlying the hospital grounds.

On May 27, 2004 the borough made an offer to the four heirs of the estate to purchase their interests in the property for $15,786 contingent upon approval of the assembly. The borough was informed on June 9, 2004 by the administrator of the estate that the offer had been accepted. Due to the construction timeline of the hospital expansion this resolution is being offered to the assembly as a laydown.

As drafted, this resolution authorizes the administration to purchase the underlying interest of these lands for $15,786, and pay up to $1,000 in closing costs from account no. 401.81111.04CHB.48610. While the actual closing costs are estimated to be less than $400, authority to spend $1,000 is requested in the event of unanticipated expenses.