TABLE OF CONTENTS
1. General Information
Welcome to the Alaska Mental Health Trust Land Office (TLO) 2010 Land Sale website. The purpose of this information is to:
- Describe the TLO's land sale procedures and schedule;
- Provide information regarding conditions of sale;
- Illustrate the location of the parcels; and
- Advertise minimum bids for the parcels.
The TLO is offering approximately 74 parcels in its 2010 Land Sale on behalf of the Alaska Mental Health Trust Authority (The Trust). All parcels will be sold by sealed competitive bid; Parcels 3, 5, 12, 22, 23, 24, 25, 26, 27, 28, 31, 32, 33, 34, and 35 will be sold by the Alternate Sale Procedure as fully described in Section 4.
The TLO strongly urges anyone wishing to purchase a parcel to first review and read all information provided here and to personally inspect the land before submitting a bid. The land chosen by a bidder is taken "AS-IS" and "WHERE IS" with no guarantees, expressed or implied, as to its suitability for any intended use. The submission of a bid constitutes acceptance of the parcel "AS-IS" and "WHERE-IS".
The parcels are located in the following areas:
- Fairbanks: Horseshoe Downs, Olnes East Subdivision, and Olnes West Subdivision.
- Nenana: Nenana South Subdivision.
- Delta Junction: Greely Subdivision.
- Tok: Tok South Addition Subdivision.
- Glennallen area.
The TLO attempts to have parcel locations identified on the ground. In many cases, parcel corners have been approximately located and marked with flagging tape. Bright yellow signs advertise the sale and list the subdivision, lot, and block. When possible, signs are placed in the approximate middle of the parcels.
The TLO 2010 Land Sale website is intended for informational purposes only and does not constitute an offer to sell. It is possible that modifications of this information may need to be made after initial posting. A 2010 Land Sale Update Page will be published to this website.
It is the bidder's responsibility to be aware of any changes or corrections prior to submitting a bid.
2. Sale Schedule
Sealed Bid Auction Bid Acceptance Period:
8:30 a.m., August 16, 2010 through 4:00 p.m. October 15, 2010
Sealed Bid Auction Bid Opening:
9:00 a.m. October 20, 2010 at the Trust Land Office, 718 L Street, Suite 202, Anchorage, Alaska
Sealed Bid Auction Award Notifications will be mailed to the Apparent High Bidder within one week of the Bid Opening.
Live Phone Auction, if necessary (please see Section 4. Alternate Sale Procedure)
10:00 a.m. November 3, 2010
Second Bid Auction Schedule:
Dates for the bid offering period, bid opening, award notifications, Second Live Phone Auction, if necessary will be posted to this website on December 1, 2010. See Section 6. Second Sealed Bid Auction for all dates.
3. Sealed Bid Procedures
The parcels will be sold and tentatively awarded to the highest qualified bidder (described below) after submission of sealed bids to the TLO. The minimum bid for each parcel is shown in the parcel description portion of this website. Each bid shall include a cashier's check or money order made out to the Trust Land Office for at least five percent (5%) of the bid amount. Parcels 3, 5, 12, 22, 23, 24, 25, 26, 27, 28, 31, 32, 33, 34, and 35 require at least 10% of the bid amount, as described in Section 4, Alternate Sale Procedure.
The TLO reserves the right to modify the sale method of any parcel. Any parcel may be offered through the Alternate Sale Procedure if deemed in the best interest of The Trust.
Bidder Qualifications
To be a qualified bidder to purchase Trust lands, an individual must be at least 18 years of age on or before the date of the auction, not have defaulted on a Trust land sale contract in the past three years, and is current on payments on any Trust land sale contracts. Two or more individuals may jointly submit a single bid; however, each bidder must be qualified. Successful bidders' names will carry forward to the purchase agreement or deed; no names will be added or removed before the purchase agreement is executed. Upon approval by the TLO, additional names may be added through a purchase assignment and a $300.00 transaction fee.
A bidder does not have to be an Alaska resident or Alaska corporation to bid on Trust parcels. Bidders may acquire more than one Trust parcel. Corporations may purchase Trust land, but proof of corporate status and signatory authority by the person submitting the bid must be provided with subsequent documents.
You may not attempt to influence bidding by others, conspire with other bidders to reduce the price of a parcel, or otherwise act to defeat an open, fair-market bidding process. Bidders found colluding to reduce the purchase price will lose their bid deposits and be prosecuted to the full extent of the law under AS 38.05.950.
An employee or contractor of a State agency or other instrumentality of the State, who gains knowledge of the disposal area at State expense, or is in a position to obtain inside information about the disposal process may not file a sealed bid for an auction within the final 15 days of the bid acceptance period (11 AAC 67.005(c)).
The TLO does not offer a Veteran's discount for Trust land sales (AS 38.05.940) per regulations adopted under 11 AAC 99.040(c). Offering discounted land sales is inconsistent with The Trust principle requiring Trust land to be managed for maximization of long-term revenue to The Trust. Provisions of law applicable to other State land that appear to be in conflict with the management of Trust land under Trust principles as described in the Alaska Mental Health Enabling Act (P.L. 84-830, 670 Stat. 709 (1956)) are inconsistent with Trust land sales and do not apply.
Bid Submittals
Sealed bids will be accepted by the TLO, located at 718 L Street, Suite 202, Anchorage, Alaska 99501, between 8:30 a.m. on August 16, 2010, and 4:00 p.m. on October 15, 2010. Bids received after the designated closing date and time will not be accepted and will be returned. Improperly submitted bids will be rejected.
Please make certified checks and money orders payable to: Trust Land Office. No personal or two-party checks will be accepted. Do not send cash.
Each bid must include the following in the inner bid envelope:
- A completed 2010 Bid Response Form (copies of the form are acceptable) which must contain the Bidder's original signature(s);
- A bid deposit in the form of a cashier's check, money order or the credit card voucher sufficient to cover the five percent (5%) bid deposit. Parcels 3, 5, 12, 22, 23, 24, 25, 26, 27, 28, 31, 32, 33, 34, and 35 involve different sale procedures as set in Section 4, Alternate Sale Procedure, and require a bid deposit of at least ten percent (10%) of the total bid amount, in the form of cashier's check, money order, or the credit card voucher;
- A self-addressed, stamped 9 1/2" x 4" envelope (to return unsuccessful bidder's deposits).
Each bid packet must be submitted in a separate, sealed envelope within an outer envelope.
The inner envelope shall be clearly marked with the following information:
Trust Land Office 2010 Land Sale
Name______________________________
Parcel Number_______________________
Phone Number_______________________
Address and mail the outer envelope to:
Alaska Mental Health Trust Land Office
718 L Street, #202
Anchorage, AK 99501
More than one bid packet can be mailed in the outer envelope.
Note: The TLO is not responsible for opening improperly marked bid envelopes. All bid envelopes will be date and time stamped upon receipt.
Successful bids are not transferable to another party without the express written consent of the TLO and payment of an assignment fee. Sealed bids and all bid information will be confidential and stored in a locked safe until the bid opening. A bidder may withdraw before the bid is opened. To withdraw a bid, the bidder must do so in person or through an agent with properly executed power of attorney; in either case identification must be presented. A bid may be withdrawn until 8:30 a.m. on the bid opening date.
Please note: If you are the apparent high bidder but decline to purchase the parcel, you will forfeit your bid deposit equal to 5% of your bid amount.
Bid Opening/Apparent High Bidder Notification Procedures
- The bid opening for the first sealed bid auction will begin at 9:00 a.m. on Wednesday, October 20, 2010, in the TLO Conference Room, 718 L Street, Suite 202, Anchorage, Alaska. Attendance at the opening is not required, but the public is welcome to attend. Doors open at 8:45 a.m.
- Bids will be opened in an order determined by the number of bids received. The parcel having the most bids will be opened first. Where an equal number of bids are received for more than one parcel, bids for the parcel with the lowest parcel number will be opened first.
- The eligible bidder who submitted a properly completed Bid Response Form with sufficient payment having the highest bid amount will be named the apparent high bidder; if the bid envelope and Bid Response Form list different parcel numbers, the Bid Response Form will take precedence.
- If there are two or more identical high bids for a parcel, the apparent high bidder will be determined by the earliest day received, demonstrated by the TLO date stamp (not the postmark) on the sealed-bid envelope. If the receipt date is also identical, then the apparent high bidder will be determined by lottery.
- Following the auction, a list of apparent high bidders will be posted on the TLO website and at the Department of Natural Resources (DNR) Public Information Centers in Juneau, Anchorage, and Fairbanks. Apparent high bidders will be notified by certified mail.
- If an apparent high bidder declines to purchase the parcel or otherwise fails to comply with the requirements under Section 5. Responding to the Intent to Award Notification before the deadline, the bidder forfeits the bid deposit and any rights to the parcel and is required to complete a Bid Relinquishment Form to release their obligations. The second highest bidder will then be given the opportunity to purchase the parcel.
- Unsuccessful bidders' deposits will be returned after the bid opening in the self-addressed, stamped envelope provided by the bidder. No interest will be paid on the bid deposit while it is in the possession of the TLO.
- Any parcels not awarded during the first sealed bid auction may be placed in a second sealed bid auction (at the TLO's option). Parcels to be offered in the second sealed bid auction will be posted on the TLO's website by November 30, 2010.
- Bidders are responsible for keeping the TLO informed of their current address. The bid is subject to rejection if the TLO is unable to contact the bidder at the current address of record.
4. Alternate Sale Procedure for Parcels 3, 5, 12, 22, 23, 24, 25, 26, 27, 28, 31, 32, 33, 34, and 35
These parcels have unique values. To address the unique circumstances, the TLO will use a two-step auction process. A bidder must first submit a sealed bid for one of these parcels during the bidding period and in accordance with the sealed bid procedures described in Section 2. Sale Schedule except that a deposit of 10% of the bid amount is required with the Bid Response Form.
Bidders' names and bid amounts will not be identified at the sealed bid opening. In the event that more than one sealed bid is received for one of these parcels, an outcry Live Phone Auction will be held among the three highest qualified bidders via teleconference. Qualified bidders will only be notified by phone, fax, or e-mail that they may participate in the Live Phone Auction; therefore, accurate contact numbers must be supplied to the TLO on the Bid Response Form. The Live Phone Auction will be held by teleconference at 10:00 a.m. on Wednesday, November 3, 2010.
If the parcel is not awarded in the first sealed bid auction, the parcel may be reoffered in a second sealed bid auction; bids may be accepted in the second sealed bid auction, following the same procedures. If required, a Live Phone Auction will be held at 10:00 a.m. on Wednesday, January 26, 2011.
The bid amount and the bidder's name, address, and phone numbers for those bidders prequalifying for the Live Phone Auction process will be held confidential until the Live Phone Auction is completed. Each eligible bidder will be assigned a bidder number to be used as their identifier during the Live Phone Auction. Bidding will start at the highest bid received. An eligible bidder may withdraw a bid at any time before the hammer falls. If the withdrawn bid would otherwise have been the winning bid, the bidder forfeits the deposit. The TLO may withdraw any parcel from the auction before the hammer falls.
5. Responding to the Intent to Award Notification
Approximately one week after the bid opening, apparent high bidders will be notified of the award by certified mail. The notification will include an intent to award letter and a Declaration of Intent Form for the purchaser to complete. The TLO must receive a completed Declaration of Intent Form with payment within 30 days of the mailing of the intent to award notification. Responses must include the following:
For TLO financing:
- $500 transaction fee;
- Additional payment to bring the total down payment to 10% of the purchase price; and
- Completed Declaration of Intent Form.
After these items are received by the TLO, a sale contract will be issued to the purchaser.
For payoff:
- $500 transaction fee;
- Payoff amount; and
- Completed Declaration of Intent Form.
After these items are received by the TLO, a quitclaim deed will be issued to the purchaser.
6. Second Sealed Bid Auction
If any parcels remain unsold after the first sealed bid auction and the Live Phone Auction, a second sealed bid auction may be held. Procedures remain the same as described above. If the second auction is held, bids will be accepted between 8:30 a.m., December 7, 2010, and 4:00 p.m., January 20, 2011. Bids will be opened on January 26, 2011, at 9:00 a.m. in the TLO Conference Room, 718 L Street, Suite 202, Anchorage, Alaska.
Parcels not sold in the first sealed bid auction may be withdrawn by the Executive Director of the TLO from further offerings. After reevaluation, the property may be offered in a later sale. All sale and auction procedures for the competitive sales are the same for both the first and second sealed bid auctions.
A list of available parcels to be included in the second sealed bid auction, if offered, will be available on the TLO website, the DNR Public Information Centers listed in Section 12, and published on the TLO website on December 30, 2010.
7. Purchase Information
All purchasers, whether financing through the TLO or not, will pay a transaction fee of $500 at the time the Declaration of Intent is submitted. Purchasers may elect to either make a lump sum payment for payoff or use TLO financing.
Bidders have the following payment options for submittal with their Declaration of Intent:
- TLO financing: payment of additional funds to bring the down payment to 10% of the purchase price, plus the processing fee of $500.
- Payment in full, plus the processing fee of $500.
Personal checks or credit cards may be used for the payments submitted with the Declaration of Intent. If a personal check is returned for non-sufficient funds, the purchaser will forfeit the original 5% bid deposit and lose the opportunity to purchase the parcel. The TLO's policy is to issue a contract or quitclaim deed after the check has cleared. If a cashier's check or money order is used, processing may be initiated sooner.
Purchase by Contract
If the principal sum remaining after the 10% down payment is more than $2,000 and less than or equal to $5,000 the TLO will offer an annual payment contract only. The first payment under an annual contract will be due 12 months after the effective date of the contract. If the principal sum is more than $5,000 the TLO will offer either a quarterly or annual payment contract. Under a quarterly payment contract, the first payment will be due three months after the effective date of the contract.
Principal and interest payments will be set on a level-payment basis over a period of not more than 20 years according to the following financed principal amounts:
- $2,000 to $9,999.99, not more than 5 years;
- $10,000 to $14,999.99, not more than 10 years;
- $15,000 to $19,999.99, not more than 15 years; or
- $20,000 or more, not more than 20 years.
Every land sale contract requires a payment of at least $100 of principal each year. Interest charged on the unpaid balance is fixed throughout the term of the contract and will be calculated based on the prime rate as reported in the Wall Street Journal on the first business day of the month in which the contract is sent to the Purchaser, plus three percent (3%). Interest begins to accrue on the date shown on the face of the signed contract.
Payments must be made in advance of the due date. There is no prepayment penalty, but payments made more than 30 days in advance of the due date are considered to be additional payments, and the regular payment will still be required unless the TLO is specifically notified in writing. Late charges are described in the land sale contract. There is no fee for early payoff of the contract. Payments are due whether or not the buyer receives a Courtesy Billing Notice sent by the Department of Natural Resources on behalf of the TLO.
The TLO reserves the right to direct payments to a bank of its choice in the future. Purchasers using TLO financing will be responsible for paying any potential future bank service fees.
The TLO will not subordinate its interest to lenders providing construction loans; therefore the Purchaser must either pay off the TLO prior to obtaining further loans or ensure the TLO is always in first position, ahead of all other loans.
Persons Ineligible for TLO Financing
In some cases the TLO will not offer financing to a purchaser. The circumstances under which a purchaser is ineligible to finance through the TLO are as follows:
- A purchase contract or lease was administratively foreclosed for cause within the past three years;
- A purchase contract or lease is currently in default, in which case the purchaser is ineligible until the amount in default is paid in full; or
- A purchase contract or lease is in default for nonpayment of municipal taxes or assessments, in which case the purchaser is ineligible until the default is remedied.
The TLO has the right to review situations on a case-by-case basis and waive the above requirements.
8. Conditions of Purchase
Quitclaim / AS-IS Purchase
Alaska Mental Health Trust Land was conveyed by the State of Alaska to the Alaska Mental Health Trust Authority by quitclaim deed, conveying The Trust all rights and title that the State had in the conveyed estate. The TLO does not warrant title. In addition, the Alaska Mental Health Trust reserves the mineral estate to The Trust. Purchasers are welcome to acquire title insurance at their expense. If for any reason the underlying State of Alaska title is not valid, all money paid to purchase the land will be refunded. The Trust has no further liability to the Purchaser for the termination of the contract.
These parcels are of varying quality. It is strongly suggested that prior to the sale all prospective purchasers personally examine the parcels in which they are interested to determine if the land will meet their needs and desires. The Trust does not guarantee the condition or usefulness of the land offered.
Parcels are sold AS-IS WHERE-IS via quitclaim deed with all faults, and in the condition as of the date of the sale with no guarantees, expressed or implied, as to suitability or fitness for any intended use, availability of water, or for any other reason whatsoever. All purchasers have the responsibility to inspect the parcels and become thoroughly acquainted with the parcel condition. The purchaser's submission of the bid constitutes acceptance of the parcel "AS-IS WHERE-IS".
Locating Parcels
The purchaser is responsible for correctly locating the parcel. The TLO suggests that purchasers contract with a registered surveyor to locate the exact property boundaries. Inaccurate location of parcel boundaries by the purchaser is not justification for alteration of the parcel boundaries, does not vest any preference right to the land improperly entered, and may result in prosecution for trespass.
All maps shown in the TLO's 2010 Land Sale Website are intended to provide a graphic illustration of the parcels and should only be used for general location purposes.
Access
The Trust makes no representations or warranty that it will construct or maintain access to the parcel. Some parcels being offered are not road accessible; however, legal access may exist along a surveyed section line or a platted right-of-way. The Trust has no legal obligation to build roads to any parcel.
The location of legal access to a specific subdivision may be obtained from the DNR Public Information Centers. Please note that rights-of-way shown on subdivision maps designate areas reserved for road construction and access but do not necessarily indicate the existence of a constructed road.
Homeowner's Associations
If a subdivision has an incorporated Homeowner's Association, subsequent owners of parcels automatically become members. A Homeowner's Association has generally established its by-laws to assess lots within the subdivision for the costs of capital improvements and maintenance. To find out if a subdivision has an active, incorporated Homeowner's Association, contact the Department of Commerce and Economic Development, Division of Corporations, Business, and Professional Licensing at 907-465-2530 or on-line at http://www.commerce.state.ak.us/occ/home_corporations.htm by using the 'Search Corporation Database' feature and the name of the subdivision.
Reservations/Existing Encumbrances
The subdivision plat for the offered parcels may impose restrictions not listed on this website. Parcels are subject to rights-of-way, easements, setbacks, roads, trails, plat notes, and other restrictions. Purchasers should review the subdivision plat available at any of the DNR Public Information Centers listed in Section 12 and on the DNR website: http://plats.landrecords.info/. Subdivision and status plats may be obtained from the DNR Public Information Centers; charges may apply. As noted above, The Trust reserves the mineral estate. Reservation codes describing special encumbrances on sale parcels are listed at the end of this section.
The following list identifies some of the types of encumbrances that may be recorded on the survey plat or reserved by the United States, State of Alaska, or TLO. This list is not all-inclusive:
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A
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Subject to platted Easements, Restrictions and Reservations
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B
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Access & Utility Easements
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C
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50' Public Easement
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Surface and Subsurface Resources
Except to the extent reasonably necessary to construct buildings and improvements on the parcel (or without prior written consent by the TLO), purchasers are not permitted to remove or sell from the parcel any surface resource such as timber, stone, gravel, sand, top soil, or any other material valuable for commercial or off-site purposes until a quitclaim deed is conveyed to the purchaser. As stated previously, The Trust reserves the mineral estate to all parcels. The commercial sale of timber in violation of this restriction is strictly prohibited.
Wetlands
Some Trust parcels may contain wetlands. Purchasers are responsible for obtaining any necessary permits from the U.S. Army Corps of Engineers prior to filling or dredging in wetlands.
Improvements
It is the responsibility of the purchaser to properly locate improvements within the parcel. No improvements may be constructed within platted easements or rights-of-way. It is the purchaser's responsibility to obtain all necessary authorizations from federal, state, or local agencies prior to constructing any improvements.
Taxes
Property offered by The Trust is subject to taxes and assessments levied by local taxing authorities. After a land sale contract or quitclaim deed has been executed, the purchaser is liable for all taxes and assessments.
Sewer and Water
No individual water supply system or sewage disposal system shall be permitted on any lot unless such system is located, constructed, and equipped in accordance with the requirements of the Alaska Department of Environmental Conservation (ADEC). Many of the subdivisions included in this offering have some restrictions on the types of sewage disposal systems allowed. For more information regarding a particular subdivision or lot, please refer to the subdivision and survey plats and contact the appropriate office of ADEC.
Eagle Nesting Sites
Federal law prohibits any disturbance of bald eagles or their nests. If there is an eagle nest on or near the parcel, please consult the United States Fish & Wildlife Services (USFWS) concerning eagle nesting sites: http://alaska.fws.gov/eaglepermit/index.htm. Please direct all eagle or eagle nest inquires to the USFWS.
9. Appeal Process
If a bidder believes there have been any irregularities in the bidding process, or wishes to appeal a TLO decision regarding the bid process or an award, the bidder may file an appeal. The written appeal must be received by the TLO within 20 days of the decision or action. The appeal must specify the reason for the appeal and why an alternate decision or action is consistent with Trust Land Management Regulations (11 AAC 99).
The TLO reserves the right to modify information posted on this website at any time without prior notice. Bidders shall be bound by the most current land sale terms and conditions at the time an offer is received. The policies, procedures, terms, and conditions posted on this website are intended for information purposes only and do not constitute an offer to sell. It is possible that this website may be modified after initial posting. It is the Bidder's responsibility to check with the TLO for any changes or corrections prior to mailing and submitting a bid. Click here to view the Corrections Page.
11. TLO's Right to Withdraw Parcels or Cancel Auction
To protect the interest of The Trust, the TLO reserves the right to postpone or cancel any land offering. Individual parcels may be withdrawn from the sale process at any time prior to the TLO signing the final conveyance document. In the event that the TLO cancels a land offering, all fees and deposits paid to the TLO will be reimbursed to the bidder within 30 days.
12. Contacts
Alaska Mental Health Trust Land Office
718 L Street, Suite 202
Anchorage, AK 99501
Phone: (907) 269-8658
Fax: (907) 269-8905
Website: www.mhtrustland.org
Alaska Department of Natural Resources:
Southcentral Region
Public Information Center
550 West 7th Avenue, Suite 1260
Anchorage, AK 99501
Phone: (907) 269-8400
Northern Region
Public Information Center
3700 Airport Way
Fairbanks, AK 99709
Phone: (907) 451-2705
Southeast Region
Information Office
400 Willoughby Avenue, 4th Floor
Juneau, AK 99801
Phone: (907) 465-3400
Bid Response Form (two pages) |
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