Leasing or Purchasing City Property

While the city does not regularly list land for sale or lease.  It is the city's policy that the City Council may approve negotiations for purchase or lease of city owned lands that the city is not otherwise using.  Lands are leased at a minimum of 8% of market value per year (except for government to government and non-profit leases) as approved by the council.  Sales of city owned land are done at a minimum of market value.  Market value for all leases and sales is calculated using an approved appraisal not more than 12 months old; current assessed values; or adjusted value based on the change in the Urban Alaska Consumer Price Index (CPI).

To lease or purchase city property you must complete the Application for Lease or Application for Purchase of City Property and submit it to the Craig City Planner along with a non-refundable $150 application fee.

After the application and fee are received city staff will start a 30 day public notice process which will include publication in a local newspaper for at least three weeks.

During the public notice period staff will introduce an ordinance to the Craig City Council about the sale and authorizing staff to begin negotiations.  At the conclusion of the 30 day public notice period the City Council will hold a public hearing and make a ruling on the ordinance at second reading.  If the ordinance is not approved then the sale is disapproved.  Applicants can ask the council about modifying the sale, or submit a modified application (along with a new application fee).

If the ordinance is approved then the applicant and staff can start negotiating the sale.  Generally one of the first things that happens in the negotiations is that the applicant is responsible for hiring an MAI certified appraiser acceptable to the city to complete a current market value appraisal.  If there is surveying, subdividing, or replatting required as part of the lease or sale the city will have the applicant initiate this process with a professional land surveyor.  All appraisal and survey costs are the responsibility of the applicant.

Once the property is appraised (and surveyed if necessary) the applicant and city staff negotiate the final terms of the lease or sale and present the final terms to the City Council for approval.

Once approved by the City Council the applicant and staff make arrangements for payment and any other terms in the final sales agreement in exchange for a quit claim deed on the property.

Click HERE to find the application forms.

Click below to view currently advertised leases out for public comment.