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HomeMy WebLinkAboutRes2009-033Sponsored by: Oates CITY OF SEWARD, ALASKA RESOLUTION 2009-033 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, AUTHORIZING THF, CITY MANAGER TO PROCEED WITH THE ACQUISITION OF UNNAMED TRACT 5, FOREST ACRES SUBDIVISION ACCORDING TO THE OFFICIAL PLAT THEREOF, FILED UNDER PLAT NO. S-17, RECORDS OF THE SF,WARD RECORDING DISTRICT, THIRD JUDICIAL DISTRICT, STATE OF ALASKA; EXCEPTING THEREFROM THAT PORTION OF "UNNAMED TRACT 5" CONVEYED TO THE STATE OF ALASKA, DF,PARTMENI' OF TRANSPORTATION AND PUBLIC FACILITIES, BY WARRANTY DEED RECORDED AUGUST 7, 2003 IN BOOK 121 AT PACE 485, FOR $271,000, AND APPROPRIATING FUNDS FOR THE NORTH FOREST ACRES LEVEE/ROAD PROJECT WHEREAS, the City of Seward completed Phase I of the west Forest Acres levee in 2002, and began the process of acquiring perntits for Phase IT, known as the North Forest Acres Levee/Road Project (the `'Project"); and proposed acquisition is a crucial component necessary to move forward with the construction of the Project; and WHEREAS, the City of Seward spent many years developing the design and location for a ~. leveelroad to benefit the people of Seward; and WHF,REAS, in 2008 the Seward City Council accepted the alignment of the Project as described in the Finding of No Significant hnpact and authorized the administration to pursue environmental permitting and to negotiate with property owners to acquire easements, rights-of--way and/or ownership of parcels of land affected by the Project; and WHEREAS, the US Army Corps of Engineers issued a permit in 2009 to the City of Seward to construct the Project in accordance with the conditions of the pernlit; and WHEREAS, at the direction ofthe City, appraisals were made ofthc fairmarket value ofthe parcels of land, all of which are undeveloped parcels of land, and each appraisal received an appraisal review; and WIIF,REAS, the owner of the land described in this resolution ("Property') desires to sell the Property, as evidenced by listing the Property with a broker; and WHEREAS, to allow the construction to occur within the timeframc requested by the Corps of Engineers, the City finds that it is in the public interest to pay more than fair market value for the Property inconsideration of the timeliness of a closing ofthe sale and for other terms as set forth in the agreement presented at this meeting; and i CITY OF SEWARD, ALASKA RESOLUTION 2009-033 WHEREAS, the appraisal of Tract 5 included only the southern 12.18 acres (out of 24.42 total acres) of property which the City initially desired to purchase, with said value appraised at $20Q000 with the remaining 12.24 acre value derived from appraisals of adjacent properties vahied at $3,750 per acre, and after applying a 10% signing bonus, results in a total settlement price of $271,OOQ with purchase of the entire parcel being a requisite condition to the seller agreeing to sell the other parcels which were required to meet restrictive covenant permit conditions, thus the City agrees to purchase the entire 24.42 acres at a total price of $271,000; and WHEREAS, Seward City Code Section.7.05.120peanits the acquisition ofreal property by negotiation; and WHEREAS, the essential terms and conditions contained in the form of purchase and sale agreement (the "Purchase and Sale Agreement") have been available for public inspection for 10 days in the office of the City Clerk. NOV1', THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF OF SEWARD, ALASKA that: Section 1. The City Council finds it is in the best interest of the City of Seward to purchase Property by negotiation for the North Forest Acres Levee/Road Project subject to conditional terms contained in the agreement presented at this meeting. Section 2. The City Manager is hereby authorised to proceed with the acquisition of land known as Unnamed Tracl 5 of Forest Acres Subdivision in Seward, Alaska (except that portion of "Unnamed Tract 5" conveyed to the State of Alaska DOTPP by warranty deed recorded August 7, 2003 in Book 121 at Page 48) (the "Property"), and to execute the purchase and sale agreement for a purchase price of $271,000.00 in substantially the forni as presented at this meeting, and any other necessary legal documents to acquire tee simple title to the Property and to take all such action necessary under the agreement to complete the purchase. Section 3. City Council finds that the subdivision requirements of Seward Cily Code Title 16 do not apply to the City's purchase of the Property because, among other things, the Property wi I I be owned by the City, is being purchased for the Project, and subdivision development requirements are not necessary or desirable for the Project. Section 4. Funds in the amount of $271,000.00 are hereby appropriated from the North Forest Acres Levec/Road Project account no.666-6664-4680-0200 to the land account no. 666-6664- 5910 to be paid at closing in accordance with the agreement presented at this meeting. Section 5. This resolution shall take effect (30) days following passage and posting C[TY OF SF.WARD, ALASKA RESOLUTION 2009-033 PASSED AND APPROVED by the City Council of the City of Seward, Alaska, this 27`" day of Apri 12009. THE CITY SEWARD, ALASKA Willard Duuham, Vice Mayor AYES: Valdatta, Bardarson, Kellar, Keil, Dunham NOES: Nonc ABSENT: Corbridge, Smith ABSTAIN: None ATTEST: Jean Le~~ris Cnly Clerk, CMC (City SCaI) ~aY~~~s~`~r~eTUn~~~*~Q • ~ .. m :: ~, ~;.~ ': n ,;, a o t° .. ~ ~ ~~~~~~~ fit ~+~'~''~o ,~~QI/aaR'aa ®~®~ Council Agenda Statement Meeting Date: April 27, 2009 Through: Phillip Oates, City Manager ~j'~ ~c,Y! ~ ' ~ '`~ ,~ From: Kristin Erchinger, Finance Director ~J'- ~d '~ ~' _ ~. Subject: Acquisition of Tract 5 of Forest Acres Subdivision, for North Forest Acres Levee/Road Proiect BACKGROUND & JUSTIFICATION The City of Seward has received all required permits to proceed with construction of the North Forest Acres Project. The City's acquisition ofproperty for the project was contingent on final receipt ofall necessary permits (including the U.S. Army Corps of Engineers permit, the Fish & Habitat permit, the DOT Access "approval to construct'. As a condition of obtaining the U.S. Army Corps of F,ngineers permit, the City was required to purchase specific properties for compensatory mitigation purposes., all of which the Council authorized for purchase in special meetings on April 13 and 14, 2009. In accordance with Council's direction, the City engaged the services ofHDR Alaska to conduct property and right-of- way acquisition negotiations with affected property owners. HDR solicited property appraisals from MacSwain Associates LLC for all affected properties, as well as a the services of a third-parTy "technical reviewer" (Statewide Appraisal Services), to evaluate the appropriateness ofthe appraisal methodology, analytical consistency, internal logic, accuracy ofmathematical calculations, and compliance with the Uniform Standards of Professional Appraisal Practices, and the Uniform Appraisal Standards for Federal Land Acquisitions. This second layer of review was performed in order to ensure that the determinations of market value would stand the test of scrutiny. The City was initial ly prepared to purchase 12.18 acres of the total 24.42 acre parcel known as Tract 5, since that was the portion of the parcel to the south of the proposed levee. However, the owner required a full purchase of the entire parcel in order to agree to sell the other parcels which the City was required by the Army Corps permit to purchase for mitigation purposes. Since the appraisal only considered the southernmost 12.18 acres and deternrined a value of $200,000, the right-of=-way agent utilized adjacent properties to the north of the proposed levee, which had been appraised during this recent round of appraisals, to extrapolate aper-acre price of $3,750 for the remaining 12.24 acres. Thus, when taking the $200,000 appraised price for the southern portion of the parcel, plus $45,900 for the northern portion of the parcel ($3,750 x 12.24 acres), and adding a 10% signing bonus, the total amount for Tract 5 was $270,490, and the City agreed to purchase the entire Tract 5 for a price of $271,000. After completion of the purchase of this property, there will be three primary properties remaining for which the City requires access for the North Forest Acres Levee/Road Project. Those properties include Tract B Dieckgraeff/Gillespie Replat (2.35 acres, assessed value $11,800); parcel ZL (0.63 acres, assessed value $20,500); and University ofAlaska property needed forright-of-way acquisition (value not yet known). CONSISTENCY CHECKLIST Yes No N/A 1. Comprehensive Plan X 3.8.1.3 -Mitigate Flood Hazards -Secure funding to implement the comprehensive flood mitigation plmr for Resurrection River and Japanese Creek. 3.8.1.4 -Investigate land trades and other mechanisms for acquisition ofpotentially daazardous lands (relative to floods and saturated soils) 2. Strategic Plan X Page 11-Secure fitrading to itnplernerat comprehensive flood mitigation plan for...Japanese Creek. Page 16 - Develop a flood mitigation project to protect the runway from flooding. FISCAL NOTE The City of Seward will uti line a grant from the State of Alaska which authorizes the purchase of properties for the North Forest Acres Levee/Road P??r~ojec~~t. At this time, no additional appropriation is anticipated. Finance Department: ~~tto~ „~a, RECOMMENDATION Council approve Resolution 2009- ~ ,7~ approving a purchase agreement for Tract 5 of Forest Acres Subdivision, in the amount of $271,000, and appropriating funds.