14.20.090 Disposal for subdivision development.
A. Purpose and Applicability. The assembly has determined that, as part of the borough’s land disposal program, it will at times be desirable for some large parcels of land to be subdivided for residential or other use, without the borough’s direct involvement as the developer. In other instances, the borough may decide to act as its own subdivision developer, e.g., by contracting out for subdivision development services. The purpose of this section is to provide a mechanism to be applied in those instances where the assembly determines that the borough does not wish to be involved as the developer. This section does not preclude the assembly from adopting (by ordinance) other alternative methods of subdivision development in the future. Each individual disposal action, pursuant to this section, requires the assembly’s adoption of a noncode ordinance authorizing that specific sale and establishing its terms.
B. Minimum Sale Price. All land sales under this section shall be for no less than the fair market value as determined by the borough assessor or land manager. For each sale hereunder, the assessor or land manager shall establish the minimum sale price within the 90-day period prior to initial publication of the notice of invitation for bids.
C. Competitive Bidding. The assembly has determined that it is good public policy for large parcel land disposal, intended for subdivision development, to be disposed of through a competitive bidding process. Therefore, competitive bidding shall be required for all sales under this section, except land disposal totaling no more than five acres to a single bidder.
D. Competitive Bidding Process. The noncode ordinance which authorizes the specific sale and sets forth the material terms thereof (hereinafter “sale ordinance”) shall specify the particular competitive bidding process to be utilized for the specific sale. Unless the assembly selects (and adopts in the sale ordinance) a different process, the following process shall be used.
1. The assessor or land manager shall develop an invitation for bids (IFB), which shall inform potential bidders of the material terms of the sale, including but not limited to the deadline for receipt of bids, the identification of the land involved, the minimum sale price, and any requirements for information to be supplied by bidders in their bid package. A notice of the IFB shall be published at least once per week, for a period of at least two weeks prior to the deadline for receipt of bids, in at least two newspapers of general circulation, one in the Haines Borough and one in neighboring communities.
3. The IFB shall set forth the requirements to be placed upon the developer/bidder for completion of subdivision infrastructure improvements and all other obligations which the winning bidder must fulfill. Failure of a bidder to indicate the bidder’s commitment (in the bid package) to comply with all material requirements of the IFB shall result in rejection of the bid as nonresponsive.
4. The borough may, in a particular sale ordinance, include a requirement for bidders to submit information on their qualifications. Such information required of bidders may include, for example, a list of their prior subdivision developments in Alaska in the past 10 years, proof of their financial capability, confirmation of the current status of their statutory contractor’s bond, and information on their status with insurance companies which stand as surety for contractor performance bonds. When such bidder qualification information is required in the IFB, the qualification information received may be used by the borough to screen out bidders found to be nonresponsible, and potential bidders shall be so informed in the published notice of IFB.
5. The borough may elect to develop a list of interested, qualified subdivision developers (a bidder’s list) by advertising to invite submittal of developers’ qualifications for review and placement on a list of qualified bidders. If such an advance bidder’s list is developed, each potential bidder on that list shall receive a direct mailed copy of each IFB issued under this section; this direct mailing shall be in addition to the newspaper published notice of IFB required above.
6. The borough may elect (in the sale ordinance) to base the selection of the winning bidder on either:
a. The highest amount bid, in a responsive bid submitted by a responsible bidder; or
b. A combination of preselected and published criteria composed of factors involving both the amount of the bid and the bidder’s track record on prior developments.
7. No bids shall be considered acceptable which are not responsive and submitted by a responsible bidder. The terms “responsive bid” and “responsible bidder” have the same meanings herein as in general public contracting law.
E. Method of Disposal. Land disposal under this section shall be by contract of sale, requiring the developer to complete certain subdivision infrastructure improvements before title to the land passes to the developer, such improvements to be completed by a stated date. A quitclaim deed shall be used to convey title, after the developer has fulfilled all the bidder’s obligations under the sale contract. Where the land being disposed of lies within the Haines Borough, the contract shall require complete compliance with the borough subdivision requirements and the developer’s receipt of the borough’s approval of that completion before title passes to the developer. Where the land being disposed of lies outside the borough, the assembly, applying its proprietary powers as land owner, may establish (in the sale ordinance) the subdivision improvements (and standards to be applied thereto) applicable to the particular sale.
F. Completion by Phases. For a disposal of a parcel containing more than 10 acres, the borough may provide for completion of infrastructure improvements (and corresponding transfer of title) by phases. For example, if a parcel containing 40 acres is being disposed of under this section, the borough may (in the sale ordinance) provide a mechanism for the developer to complete the subdivision in quarters, so that Phase 1 would be the completion of subdivision infrastructure improvements for the first quarter, followed by transfer of title to the developer for that quarter, and so on.
G. Assurance of Completion of Infrastructure Improvements. The borough shall, in the sale ordinance, require that the developer provide the borough with satisfactory financial guarantees that the subdivision infrastructure improvements will be completed, and by a given date, and in accordance with standards stated by the borough in the IFB. Satisfactory forms of financial guaranty shall be limited to the following:
1. Performance Bond. The developer may furnish and file with the borough a corporate surety bond or cash bond in an amount equal to the cost of the required subdivision improvements based on a cost estimate approved by the land manager. Such bond shall be approved in form by the borough attorney. Upon the borough’s approval of the improvements as installed, the performance bond shall be released.
2. Deposit in Escrow. The developer may deposit in escrow an amount of money or certificates of deposit equal to the cost of the improvements based on a cost estimate approved by the land manager, under an escrow agreement. Release of escrow shall be conditioned on the installation of the improvements having been completed and the borough approval thereof. The escrow funds may be used by the borough to complete the installation of the required developments if the developer fails to do so within the specified time limit.
H. Indemnification of Borough. The sale ordinance, IFB, and contract of sale shall require the developer to indemnify, defend and hold the borough harmless, to the maximum extent allowed by law, from any third party disputes, lawsuits, or governmental enforcement actions arising from acts or omissions of anyone other than the Haines Borough or its employees or agents, or arising from the condition of the land, regardless whether arising from events prior to or subsequent to the date of the contract of sale.
I. The administrative foreclosure procedure set forth in HBC 14.20.110 shall not be applicable to contracts of sale entered into under this section.