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CITY OF SEWARD, ALASKA
RESOLUTION NO. 89-040
A RESOLUTION OF THE CITY COUNCIL
OF THE CITY OF SEWARD, ALASKA APPROVING A
LEASE AGREEMENT WITH CHUGACH ALASKA CORPORATION, INC.
CHUGACH LEASE .3
WHEREAS, the City of Seward has sought to promote development
of city-owned real property in the vicinity of the Seward Marine
Industrial Center; and
WHEREAS, the Chugach Alaska Corporation, Inc., ("Chugach") a
corporation organized and existing under the laws of the State of
Alaska and 43 U.S.C.A. S 1601 et seg. (1971), has leased
approximately thirty (30) acres of land from the city of Seward
("Chugach Lease #1") effective January 11, 1988; and
WHEREAS, the City has leased an additional four (4) acres,
more or less, of property adjacent to Chugach Lease #1 effective
July, 1988, ("Chugach Lease .2); and
WHEREAS, Chugach has indicated its desire to lease an
additional approximate eight (8) acres of land immediately to the
north of Chugach Lease #1, ("Chugach Lease .3"); and
WHEREAS, the proposed lease would be in the public interest
in that it will promote the development of the leased land and, in
addition to the continued development and expansion of operations
from the Chugach Lease #1; and
WHEREAS, Chugach has agreed to pay fair market value for the
leased land; and
WHEREAS, the City and Chugach have been negotiating a co-
generation agreement to reflect the development of Chugach's
electrical generation capabilities at the forest products plant
under construction on the land leased under Chugach Lease #1; and
WHEREAS, the City would not approve Chugach Lease .3 without
such an agreement being concluded; and
WHEREAS, an appraisal of the property would not be in the
public interest and an unnecessary expense to the City of Seward.
NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF SEWARD, ALASKA, that:
Section 1. A lease agreement between the city of Seward and
Chugach Alaska Corporation in substantially the form as that
attached to this resolution as Exhibit A is approved and the city
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CITY OF SEWARD, ALASKA
RESOLUTION NO. 89-040
manager is authorized to execute it subject to having first
successfully concluded negotiations for a co-generation agreement
between the City and Chugach and having further obtained approval
of that agreement by the City Council by June 27, 1989.
Section 2. It is in the public interest to not require the
disposal of the land subject to the lease agreement by public bid
or auction and a negotiated lease provides the city of Seward with
the best terms and conditions of lease and further will provide
incentives to the Lessee to develop a beneficial new industry for
the city of Seward.
Section 3. An appraisal of the property is not in the public
interest.
Section 4. This resolution shall take effect only AFTER
approval by the City Council of the co-generation agreement
referenced in Section 1 of this resolution AND after this
resolution has been posted for a period of 30 days in accordance
with the Ordinances of the City of Seward. If a co-generation
agreement is not approved by the council by June 27, 1989, then
this resolution and Chugach Lease #3 shall be void and of no
effect.
PASSED AND APPROVED BY THE CITY COUNCIL OF THE CITY OF SEWARD,
ALASKA, this 8th day of May, 1989.
CITY OF SEWARD, ALASKA
AYES:
NOES:
ABSENT:
ABSTAIN:
GIESELER, DUNHAM, HILTON, MEEHAN, NOLL & SIMUTIS
NONE
O'BRIEN
NONE
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CITY OF SEWARD, ALASKA
RESOLUTION NO. 89-040
ATTEST:
(City Seal)
APPROVED AS TO FORM:
Perkins Coie
Attorneys for City of Seward
By: 7~ /II ~
Fred B. Arvidson
City Attorney
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