HomeMy WebLinkAboutRes2009-021Sponsored by: Oates
CITY OF SEWARD, ALASKA
RESOLUTION 2009-021
A RESOLUTION OF'CHE CITY COUNCIL OF THE CITY OF SF.WARD,
ALASKA, AUTHORIZING THF. CITY MANAGER TO PROCF,Ell WITH
THE ACQUISITION OF LOTS AW, AV, AU, MM, DA, DB, DC, DE, DF, DG,
QQ, AND TRACTS 1, 2, 3, AND 4 OF FOREST ACRES SUBDIVISION IN
SEWARD, ALASKA FOR $429,000.00, AND APPROPRIATING FUNDS FOR
THE NORTH FOREST ACRES LEVEE./ROAD PROJF,C'C
WHEREAS, the City of Seward completed Phase I of the west Forest Acres levee in 2002,
and began the process of acquiring permits for Phase 1[, 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
levee/road 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 Impact 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
WHERF,AS, 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 permit; and
WHEREAS, at the direction of the City, appraisals were made of the fair market value ofthe
parcels of land, all of which are undeveloped parcels of land, and each appraisal received an
appraisal review; and
WHEREAS, 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 timeframe 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 in consideration of the timeliness of a closing of the sale and for other terns as set forth in
the agreement presented at this meeting; and
WHEREAS, Seward City Code Section 7.05.120 permits the acquisition of real property by
negotiation; and
V1'HEREAS, the essential terms and conditions contained in the form of purchase and sale
,,,_ agreement (the "Purchase and Salc Agreement") have been available for public inspection for 10
SEWARD, ALASKA
RESOLUTION 2009-021
days in the office of the City Clerk.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
OF SEWARD, ALASKA that:
Section I. 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 ternis
contained in the agreement presented at this meeting.
Section 2. The City Manager is hereby authorized to proceed with the acquisition of land
commonly described as lots AW, AV, AU, MM, DA, DB, DC, DE, DF, DG, QQ, and tracts 1, 2, 3,
and 4 of Forest Acres Subdivision in Seward, Alaska (the "Property"), and to execute the purchase
and sale agreement for a purchase price of $429,000.00 in substantial ly the form as presented at this
meeting, and any other necessary legal documents to acquire fee 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 City Code Title
16 do not apply to the City's purchase of the Property because, among other things, the Property will
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 $429,000.00 are hereby appropriated from the North
Forest Acres Levee/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.
PASSED AND APPROVED by the City Council of the City of Seward, Alaska, this 13`~ day of
April 2009.
THE CITY OF SF,WARD, ALASKA
Clark Corbridge, Mayor
AYES: Dunham, Valdatta, Bardarson, Smith, Kellar, Keil, Corbridge
NOES: None
ABSENT: None
ABSTAIN: None
ATTEST:
SEVVARD, ALASKA
RESOLUTION 2009-021
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City Clerk, CNLC
(City Seal)
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COUNCIL AGENDA STATEMENT
Meeting Date: April 13, 2009 g~'
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Through: Phillip Oates, CiryManager J ` ~ ..,~ ~~
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From: Kristin Erchinger, Finance Director ~ `~ ~ r
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Subject: Acquisition of Parcels AW, AV, AU, MM, DA, DB, DC,
DE, DF, DG, QQ, and Tracts 1, 2, 3, and 4 of Forest Acres
Subdivision, for North Forest Acres Levee/Road Project
BACKGROUND & Ji15T1FICATION
The City of Seward has received all required permits to proceed with construction of the North Forest Acres Project. The
City's acquisition of property for the project was contingent on final receipt of all 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 Engineers permit, the City was required to purchase specific properties for
compensatory mitigation purposes. Seven of these fifteen parcels (DB, DC, DE, DF, DG, QQ, and Tract 4) are parcels
which Council has authorized the administration to negotiate for purchase, in Resolutions 2007-041 passed on Apri123,
2007, Resolution 2008-096 passed on September 22, 2008, and Resolution 2008-135 passed on December 8, 2008.
In accordance with Council's direction, the City engaged the services of HDR Alaska to conduct property andright-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 Lartd 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 Kenai Peninsula Borough ("KPB") assessed value and the appraised value of each of the parcels is found in the table
below:
Parcel PartiaUFull sq ft (a) KPB Assessed Appraised
Partial Value
b Appraised Full
Value (c)
AU = 1.01 acres 13,394 / 40,053 $21,400 $13,400 $40,000
AV = 1.09 acres 9,084 / 46,371 $22,600 $6,000 $30,000
AW = 1.09 acres 340 / 46,383 $22,600 $200 $25,000
DA,DB,DC,DF,,DF,DG=
5.54 acres 237,411 Full only $123,000 $105,000
MM = 0.93 acres 4,667 / 39,687 $20,800 $4,800 $40,000
QQ = 1.18 acres 51,345 Full onl $23,800 $35,000
"tract 1, 2, 3 = 13.21 acres 581,437 Full onl $67,900 $80,000
Tract 4 = 2.68 acres 116,773 Ful] onl $37,700 $35 000
(a) "cull only" means the City either must acquire the full property (as in the case of DA, DB, DC, DE, DF,
DG, QQ and Tract 4 for compensatory mitigation), or the City agrees to purchase in full because property
north of levee is more problematic for owner to develop and therefore may justify full purchase.
CITY OF SEWARD, ALASKA
RESOLUTION 2008-021
PAGE TWO
(b) Properties showing partial value reflect parcels where City could agree to purchase less than entire parcel.
However, property owner desired City's full purchase of these parcels, and in order to acquire the parcels
required for compensatory mitigation, City agreed to pwchase these remaining parcels in full.
(c) This is the price the City has agreed to pay, plus an additional 10% to complete the purohase in time to place
restrictive covenants on properties as required by USACE permit prior to doing in-water work on Japp Creek
Relocation Project.
The City has agreed to pay the appraised value for all of the identified properties, plus 10%, in order to finalize the
purchase agreement in sufficient time to satisfy the 30 day referendum period on Council actions involving the pwchase
or property, so that restrictive covenants could be placed on the properties prior to May 15, 2009. Restrictive covenants
must be placed on the properties prior to any in-water work being conducted, in accordance with the U.S. Army Corps of
Engineers permit. Since the only period in which the City is allowed to conduct in-water work in Japp Creek is May 15 to
July 1 S, it is imperative that we finalize these property purchases immediately, in order to allow the copnhrt-aycp r sufficient
time to complete the relocation of the creek during the allotted time frame. Failure to close the roe urchase for
restrictive covenant-related properties, makes it impossible to proceed with the Japp Creek Relocation Project at this
time.
The total appraised market value of the identified properties is $390,000, plus a 10% add-on of $39,000 brings the total
purchase price to $429,000.
After completion of the purchase of the Afognak and Bailey properties, there will be four 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); Tract 5 (25 acres; assess value $58,000); parcelLZ
(0.63 acres, assessed value $20,500); and University of Alaska property needed for right-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 plan for
Resurrection River and Japanese Creek.
3.8.1.4 -Investigate land trades and other rnechmrisrns for acquisition ofpotentially hazardous lands (relative
to.floods and saturated soils)
2. Strategic Plan X
Page 11 -Secure funding to implement 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 utilize a grant from the State of Alaska which authorizes the pwchase of properties for the North
Forest Acres Levee/Road Project. At this time, no additional appropriation is anticipated.
Finance Department: ~~ ~ ~it~~~f~
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RECOMMENDATION
Council approve Resolution 2009- V 3\ approving a pwchase agreement for lots AW, AV, AU, MM, DA, DB, DC, DE,
DF, DG, QQ and Tracts 1, 2, 3 and 4 of Forest Acres Subdivision, in the amount of $429,000, and appropriating funds.
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