HomeMy WebLinkAboutRes2011-061 Sponsored by: Oates
CITY OF SEWARD, ALASKA
RESOLUTION 2011 -061
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD,
ALASKA, AUTHORIZING THE CITY MANAGER TO ENTER INTO A
LEASE AGREEMENT WITH THE UNITED STATES OF AMERICA FOR
TRACT A, MARINA SUBDIVISION, SEWARD SMALL BOAT HARBOR,
FOR THE PURPOSE OF OPERATING A MARINE DISPATCH
BUILDING
WHEREAS, the UNITED STATES OF AMERICA, specifically the U.S. ARMY,
( "Lessee ") has requested an existing lease agreement with the City of Seward for 2,546 square
feet, more or less, within Tract A, Marina Subdivision, Seward Small Boat Harbor, Kenai
Peninsula Borough Plat number 2010 -10, Seward Recording District, Third Judicial District,
State of Alaska; and
WHEREAS, the preliminary plat was approved by the Planning and Zoning Commission
Resolution 2006 -25; and
WHEREAS, the Seward City Council approved Resolution 2007 -013 recommending the
approval of this subdivision and creating Tract A; and
WHEREAS, the Seward Resort has utilized this
area through a temporary license
agreement with the City since 2007 as a staging area for their vessel operations on X float; and
WHEREAS, City administration has worked with the US ARMY for five years on site
plan development, platting, access agreements, and lease documents for Tract A; and
WHEREAS, the property is zoned HC, Harbor Commercial, and the proposed use by the
US ARMY meets a demonstrated need for active military personnel, retired military personnel
and their guests.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE
CITY OF SEWARD, ALASKA that:
Section 1. The City Manager is hereby authorized to enter into a lease agreement with
the UNITED STATES OF AMERICA in substantial form as presented at this meeting.
Section 2. This resolution shall take effect thirty (30) days after its adoption and posting.
Upon the effectiveness of this resolution, the lease will be effective September 30, 2011.
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CITY OF SEWARD, ALASKA
RESOLUTION 2011 -061
PASSED AND APPROVED by the City Council of the City of Seward, Alaska, this 22 " day of
August, 2011.
THE CITY 0EWARD, ALASKA
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illard E. Dunham, Mayor
AYES: Valdatta, Bardarson, Keil, Shafer, Casagranda, Dunham
NOES: None
ABSENT: Smith inj
ABSTAIN: None
ATTEST:
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( Jo anna Kinney
ty Clerk
(City Seal) ° ...sr,�
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Council Agenda Statement
Meeting Date: August 22, 2011
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Through: Phillip Oates, City Manager � Q
From: Kari Anderson, Harbormaster q
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Agenda Item: Approving a Lease with the U.S. ARMY for Tract
A, Marina Subdivision
BACKGROUND & JUSTIFICATION:
After the Army lost it marine dispatch facility located on Ballaine as a result of the 1964
earthquake, the Army built a new facility off Port Avenue in the Small Boat Harbor where they
dispatched their vessels until 1983. A letter from the Seward City Manager, Ronald Garzini,
dated July 20, 1983, requested that the Army consider relocating it operation to the East Side of
the Harbor near X Float on property owned by the Corps of Engineers (COE). The Army agreed
to the request.
On May 1, 1984 the U.S. Army Engineer District, Alaska granted a permit to the Department of the
Army, 6 Infantry Division (Light), to use a 100' x 100' parcel of land, containing approximately
0.23 of an acre for the construction and placement of a temporary boat dispatch building in the
Seward Boat Harbor. The permit was extended twice, and expired April 30, 1999. On September 23,
1999 the U.S. Army Engineer District granted a quitclaim deed to the City of Seward for two parcels
of land in the Seward Harbor, specifically for the purpose of improving the harbor and extending the
breakwater to the east. Since this date, the harbor expansion project has begun, and construction in
the eastern harbor has included the relocation of the breakwater, X float, and the installation of Z
float.
During the summer of 2006, representatives from the Seward Resort met with the City Manager and
presented a plan to remove the dispatch facility, as it did not meet the requirements of the city's
building codes. Throughout this time, the Seward Resort (Army) has operated their vessel dispatch
operations out of a temporary trailer through a license use agreement with the City of Seward.
The Seward Resort was able to secure the funding for the new dispatch facility and submitted a letter
of intent to the City Manager that they had secured federal funding and were moving forward with an
RFP. From 2006 until today, the US ARMY and City have worked together on platting efforts,
geotechnical studies, and access agreements for this parcel.
The Planning and Zoning Commission approved Resolution 2006 -25 (attached) recommending
borough approval of the subdivision of ATS No. 174, with the NW 1 /4 of Section 3, Township 1
South, Range 1 west, Seward Meridian, Marina Subdivision, to create a Tract A. The Seward City
Council approved Resolution 2007 -13 (attached) approving the platting action and proposed Tract A.
The access agreement to connect Tract A to Port Avenue was approved in March, 2010. The
preliminary plat was approved by the Kenai Peninsula Planning Commission on March 12, 2007 and
the plat was finalized and recorded on October 1, 2010.
INTENT: To approve a lease with the U.S. Army in the NE Harbor for the operation of a vessel
dispatch building.
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CONSISTENCY CHECKLIST: Where applicable, this agenda statement is consistent with the
Seward City Code, Charter, Comprehensive Plans, Land Use Plans, Strategic Plan and City Council
Rules of Procedures or Other Plans or Policies:
Yes (List Below) No
1.) Comprehensive Plan
Economic Development, Small Boat Harbor Development: expand and maximize potential of the existing harbor
2.) Strategic Plan
Growth Management and Land Use Planning: Promote residential and commercial development inside the city
3.) Municipal Lands Management Plan
Leases:... continue to dispose of commercial and industrial lands through long term leases...
4.) Small Boat Harbor Management Plan
Lands:... ensure that existing lease sites are fully developed
FISCAL NOTE:
The annual lease rate was established per the findings of the 2010 appraisal report for this parcel.
GOVERNMENT shall pay CITY annual rent of $2,160 (Two thousand one hundred sixty dollars and
zero cents) at the rate of $540 (Five hundred forty dollars and zero cents) per quarter in arrears
commencing on the Effective Date. Rent for a lesser period shall be prorated.
The annual rental payment shall be adjusted on July 1, 2015, and on the same date every five years
thereafter (each a "Rental Adjustment Date "). The adjusted annual rental payment to be paid under
the terms of this Lease shall be the appraised fair market rental value of the Premises at the highest
and best use of the Premises.
The U.S. Army will be charged attorney fees for the development of this lease, per Resolution 1994-
101 Lease Administration Policies and Procedures.
Approved by Finance Department: j /,
ATTORNEY REVIEW: Yes X No
RECOMMENDATION:
Council approve Resolution 2011 - authorizing the City Manager to enter into a lease
agreement with the United States ARMY for Tract A, Marina Subdivision.
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