HomeMy WebLinkAboutRes2014-086 Sponsored by: Hunt
CITY OF SEWARD, ALASKA
RESOLUTION 2014-086
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD,
ALASKA, AUTHORIZING THE CITY MANAGER TO ENTER INTO
TWO LEASE AND SALE AGREEMENTS WITH THE ALASKA
RAILROAD CORPORATION (ARRC) FOR AN EXCHANGE OF
UPLANDS ALONG FOURTH AVENUE AND TIDELANDS
CONTAINING THE SMALL BOAT HARBOR EAST BREAKWATER
WHEREAS, for at least ten years the Alaska Railroad Corporation (ARRC) has had
plans for a Mariner's Landing commercial development on its uplands between the J and F dock
fire lanes; and
WHEREAS, in part, the plans have not been implemented pending the relocation of the
USCG facilities formerly at the head of F-float, which occupied land owned by both the ARRC
and the City of Seward, which land has now been vacated; and
WHEREAS, the city also owns a small sliver of land along Fourth Avenue adjoining the
west boundary of the ARRC property, a portion of which is currently leased to the ARRC and
sublet to James Pruitt for parking at the Holiday Inn Express hotel; and
L.. WHEREAS, neither city parcel is developable as a stand-alone lot; and
WHEREAS, the ARRC desires to acquire these lots, do the replatting necessary to
vacate the lot line and allow construction on that part of the property, and to develop the entire
area; and
WHEREAS, the city requires clear access through fire lanes/pedestrian access to both J
and F floats, and a utility easement along Fourth Avenue to repair and upgrade utilities as
necessary;
WHEREAS, as part of the South Harbor Expansion, the city moved the Small Boat
Harbor breakwater eastward onto ARRC lands near the coal dock; and
WHEREAS, the city built a fish cleaning station at J-dock, and an oil recycling facility
along the J-dock fire lane, both on ARRC property; and
WHEREAS, the city has a lease from the ARRC for the fish cleaning station and oil
recycling facility, holds a reciprocal lease to the ARRC for the portion of Lot 1 Block 6 (sliver)
used for parking, and has a separate lease for the ARRC of the breakwater lands; and
WHEREAS, the reciprocal leases act as consideration for each other, and the city pays
ihme
rent to the ARRC for the breakwater lands; and
CITY OF SEWARD, ALASKA
RESOLUTION 2014-086
iij
WHEREAS, the city desires to have long term control of each of these lands for harbor
use purposes; and
WHEREAS, the ARRC and city administration have negotiated terms of the attached
agreement to accomplish the purposes stated above by asking the City Council to authorize fee
simple transfer of title from the City to the ARRC of Lots 1 and 2, Block 6, Seward Small Boat
Harbor Subdivision in exchange for long term renewable rent free leases from the ARRC to the
city of the breakwater lands, fish cleaning station, and oil recycling facility.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE
CITY OF SEWARD, ALASKA that:
Section 1. The City Manager is authorized to enter into the two lease and sale agreements
with the Alaska Railroad Corporation, in substantial form as presented at this meeting and
incorporated by reference, for the parcels of land identified in the leases.
Section 2. This resolution shall take effect 30 days after adoption.
PASSED AND APPROVED by the City Council of the City of Seward, Alaska, this 27th day of
sijOctober, 2014.
THE CITY OF SEWARD, ALASKA
can Bardarson, Mayor
AYES: Keil, Casagranda, Terry, Butts, Darling, Bardarson
NOES: None
ABSENT: Squires
ABSTAIN: None
ATTEST:
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J. anna Ki MiT, CMC II
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Council Agenda Statement
Meeting Date: October 27, 2014
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From: Jim Hunt, City Manager e . , a
Agenda Item: To enter into lease and sale agreements between q �P
the City of Seward and the Alaska Railroad
Corporation (ARRC), transferring title from the
City to ARRC for certain uplands along 4th Ave
in exchange for long term leases of uplands at J-Dock fish cleaning station
and oil recycling facility, and tidelands and adjacent containing the Small
Boat
Harbor east breakwater
BACKGROUND & JUSTIFICATION:
ARRC wishes to improve and further develop its uplands along 4th Avenue in the Boat Harbor area,
and the City wishes to acquire long term rent free leases for the Harbor's east breakwater, the J-
Dock fish cleaning station, and nearby oil recycling facility. The City also wishes to maintain public
and emergency access to J-Dock and the Boat Harbor across ARRC lands at the existing fire lane,
and utility easements along 4th Avenue for repairs and upgrades to utilities as are or may become
necessary.
Currently the City's lands along 4th Ave. (the sliver) are used for sidewalk and parking (public
parallel parking to the south and leased to ARRC and sublet to Holiday Inn Express to the north),
and also include the City's portion of the old Coast Guard building location. By themselves, these
parcels are not suitable for commercial development. Joined with the adjacent ARRC parcels, the
potential for development is enhanced.
To accomplish these goals administration and the ARRC have negotiated the contracts attached to
the resolution, summarized as follows:
• City deeds parcels 14733026 and 14733027 (City portion of old Coast Guard building lot
and the "sliver" along 4th Avenue)to ARRC;
• City acquires 95 year lease to the tidelands where the east harbor breakwater is built;
• Current lease fees for that parcel of$11,067/year or equivalent value in gravel at $3/cubic
yard is rescinded;
• City acquires 35 year lease for the fish cleaning station and oil recycling facility, with an
option to renew for another 35 years, at which point the lease can be renegotiated if the City
desires;
• City maintains through covenants fire lane access at J-Dock and 10' utility easements along
4th Avenue.
This Agreement is in the city's best interest to dispose of otherwise undevelopable land in exchange
for necessary harbor related infrastructure, and to enhance economic development viability of
neighboring ARRC lands.
INTENT: To implement the land disposal and lease as described in the Resolution and Purchase
and Sale Agreement attached to the resolution.
CONSISTENCY CHECKLIST: Yes No N/A
Comprehensive Plan (p. 18): Economic Development: Update and
1. expand infrastructure for commercial and industrial properties that are X
currently undeveloped or underdeveloped.
2. Strategic Plan (document source here): X
3. Other (list): X
FISCAL NOTE:
Approved by Finance Department:
ATTORNEY REVIEW: Yes X No
RECOMMENDATION: IRGSpk .Ova 2-o
To authorize the City Manager to execute the lease and sale agreements with the Alaska Railroad
Corporation, in substantial form as attached to and incorporated by reference in the Resolution, for
the parcels of land identified in the leases.
QUITCLAIM DEED
The Grantor, CITY OF SEWARD, a municipal corporation located in the Kenai Peninsula
Borough, State of Alaska, whose address is P.O. Box 167, Seward, Alaska, 99664, for and
in consideration of the sum of Ten Dollars ($10.00) and other good and valuable
consideration, the receipt and sufficiency of which is hereby acknowledged, hereby
conveys, releases, and quitclaims to the Grantee, ALASKA RAILROAD CORPORATION,
whose address is P.O. Box 107500, Anchorage, Alaska 99510-7500, all of Grantor's right,
title, and interest in that certain real property situated in the Seward Recording District,
Third Judicial District, State of Alaska, more fully described as follows:
Lots 1 and 2, Block 6, SEWARD SMALL BOAT HARBOR SUBDIVISION,
according to Plat Number 2000-19, Records of the Seward Recording
District, Third Judicial District, State of Alaska
Together with any and all of the easements and appurtenances thereto, and
improvements located thereon; and subject to any and all easements, restrictions,
covenants, and encumbrances of record.
This Quitclaim Deed is made, and the above-referenced real property conveyed to
Grantee, on the condition that use and development of that portion of said real property
located in Lots 1 and 2, Block 6, Seward Small Boat Harbor Subdivision shall be in
compliance with the Seward City Code of Ordinances applicable to said lot.
CITY OF SEWARD, ALASKA
Dated By:
Jim Hunt
City Manager
STATE OF ALASKA )
) ss.
THIRD JUDICIAL DISTRICT )
The foregoing instrument was acknowledged before me this __ day of _____________,
2014, by Jim Hunt, the City Manager of the City of Seward, Alaska, a municipal
corporation, on behalf of the same.
Notary Public in and for Alaska
My Commission Expires
RECORDER'S OFFICE RETURN TO:
ALASKA RAILROAD CORPORATION
ATTN: REAL ESTATE
P.O. BOX 107500
ANCHORAGE, AK 99510-7500
STATE BUSINESS – NO CHARGE