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HomeMy WebLinkAbout02172010 PACAB Packet Port and Commerce Advisory Board Regular Meeting f of Sew z .,„,, a __ 0 i #4* 4.1 4 - ialit" • February 17, 2010 Regular Meeting City Council Chambers Beginning at 12:00 pm SEWARD PORT AND COMMERCE ADVISORY BOARD Regular Meeting February 17, 2010 Noon COUNCIL CHAMBERS Ron Long, Chair 1. CALL TO ORDER Board Member Term Expires 2011 2. PLEDGE OF ALLEGIANCE Theresa Butts, Board Member 3. ROLL CALL Term Expires 2012 4. SPECIAL ORDERS, PRESENTATIONS AND Deborah Altermatt REPORTS Board Member Term Expires 2010 A. ARRC Representative Louis Bencardino Daniel Oliver Board Member B. Chamber Report-Laura Cloward, Executive Director Term Expires 2010 Daryl Schaefermeyer C. Harbormaster Report — Kari Anderson Board Member Term Expires 2012 D. Community Development Report- Christy Terry Robert Buck Board Member 5. Citizens' comments on any subject except those items Term Expires 2012 scheduled for public hearing. [Those who have signed in Paul Tougas will be given the first opportunity to speak. Time is limited Board Member to 2 minutes per speaker and 30 minutes total time for this Term Expires 2011 agenda item.] Phillip Oates 6. Approval of agenda and consent agenda [Approval of City Manager Consent Agenda passes all routine items indicated by Kari Anderson asterisk ( *). Consent Agenda items are not considered Harbormaster separately unless a Board Member so requests. In the event of such a request, the item is returned to the Regular Suzi Towsley Executive Liaison Agenda.] City of Seward, Alaska PACAB Agenda February 17, 2010 Page 1 1 7. INFOMATIONAL ITEMS, REPORTS AND PRESENTATIONS — A. WTC Forum Luncheon (1- 13 -10) Report by Board Member Altermatt Pending B. North East Harbor Development Plan by Kim Nielsen of URS Engineering Page 3 8. UNFINISHED BUSINESS A. Proposed revisions and timeline for SCC 7.10, Harbor and Port Facilities Page 9 9. NEW BUSINESS A. Discussion and recommendation regarding Council City Land Sale Policy Work Session Scheduled for March 9, 2010 Page 10 B. Approval of January 6, 2010 Regular meeting minutes Page 57 10. CORRESPONDENCE, INFORMATIONAL ITEMS AND REPORTS (No action required) - A. Exxon Valdez Oil Spill Trustee Council- Notice of Intent News Release .... Page 64 B. Monthly PACAB Budget Report Page 66 11. BOARD COMMENTS 12. CITIZEN COMMENTS [5 minutes per individual - Each individual has one opportunity to speak] 13. BOARD AND ADMINSTRATIVE RESPONSE TO CITIZENS'COMMENTS 14. ADJOURNMENT City of Seward, Alaska PA CAB Agenda February 17, 2010 Page 2 2 North Harbor Development Plan Outline Goal: Complete the orderly development of the North Harbor as defined by the boundaries. ZONING Goal: The area is zoned Harbor Commercial District to accommodate economic development and harbor related functions. PLATTING/ BOUNDARIES Goal: Plat the area... REVIEW EXISTING PLATS North Harbor Boundaries — South of Port Avenue West of Alaska Railroad fence East of 4 Avenue North of J -Dock ramp LAND USE Goal: The area would be used for economic development and homeland security. • Economic Development o Encourage lease or sale of undeveloped land, look at unused parcels. • United States Coast Guard Building o Support opening up land for possible parking east of the railroad line and negotiate for a land swap. o Consider sheet pile zone for security and or stability. o Leave access to NE fish cleaning station. • Other? o Discuss with Seward fisheries lease term and or development of that area. o Consider previous grant requirements /stipulations from previous awards, PARKING AND TRANSPORTATION FACILITIES 5 3 Goal: Ensure safe and convenient parking and transportation services that address the needs of Seward residents, businesses and visitors. • Parking Facility o Research designating long term parking further out and short term closer in from float access areas. o Consider paving X -Float road or provide some form of dust control measures. o Parking fees are consistent with the Seward City Code § 11.15.010. See Attachment A for the Parking Fee Schedule, • Boardwalk/Bike Path /Sidewalks o Move pedestrian traffic off Port Avenue and onto sidewalks. • Drainage o Drainage plans need to be created to meet the Storm Water Prevention Plan Permit requirements. o Engineered drawing will be needed. PUBLIC FACILITIES AND SERVICES Goal: Provide quality public facilities and services to the residents, businesses and visitors of Seward. • Utilities o Utility use is directly correlated to development in the North Harbor Area. • Environment and Waste Management o Research cost and pros /cons of vessel wash down facility. • Floats /Docks o Consider piling and wooden decking construction similar to existing T Dock the area between I Dock and 50 Ton Travelift and the area between T Dock and NE fish cleaning stations to result in workable space across the entire North Harbor. COMMUNITY APPEARANCE 6 4 Goal: Improve the appearance of the community through increased landscaping, beautification efforts and creating a user friendly environment. • Aesthetics o 5ignage/Interpretive Postings o Improve landscaping for Cruise Ship pedestrian traffic. o Photo Opportunities FENDING STRATEGIES o Pre - engineering in -house to control architectural and engineering costs whenever possible. 7 5 . 1 1 ti J r, s' . } j , ' s ' - I i t. ∎ 0 _' • "+' .m. t Sr � �, 7i + I . oati 4 "sl 2 + � ; , � ' 2 - I" 111111111k. 1, - My , .-.. rol a try. l Oft k 8 6 Sponsored by: PACAB CITY OF SEWARD, ALASKA PORT AND COMMERCE ADVISORY BOARD RESOLUTION 2009 -02 RESOLUTION OF THE PORT AND COMMERCE ADVISORY BOARD, SUPPORTING CITY COUNCIL APPROVAL OF THE NORTH IIARBOR DEVELOPMENT RECOMMENDATIONS WHEREAS, Council directed the Seward Port and Commerce Advisory Board generate recommendations to guide city planning and private enterprise in the continued development and management of the North Harbor Area; and WHEREAS, the Port and Commerce Advisory Board held multiple work sessions, regular meetings and a public hearing to solicit public comments and discuss development policy for the area and WHEREAS, the 1993 Small Boat Harbor Management Plan incorporates and addresses this area of the Harbor, but is outdated; and WHEREAS, City Administration plans to update the Small Boat Harbor Management Plan in 2010; and WHEREAS, the attached recommendations shall be incorporated into the update ofthe Small Boat Harbor Development Plan; and WHEREAS, the attached recorrunendations shall be used as a reference for the City of Seward Municipal Lands Management Plan update. NOW, THEREFORE, BE IT RESOLVED by the Port and Commerce Advisory Board that: Section I. For the reasons stated in the recitals, the Board supports Council approval of the attached development and management recommendations for the North Harbor Area. Section 2. The development and management recommendations apply to the area described as: South of Port Avenue, West of Alaska Railroad fence, East of 4`'' Avenue and North of J -Dock ramp. The attached map depicts the North 1 (arbor Area. Section 3. This resolution shall take effect immediately upon its adoption. 3 7 Port and Commerce Advisory Board Resolution 2009 -02 PASSED AND APPROVED by the Port and Commerce Advisory Board this 4' day of March, 2009. THE CITY OF SEWARD, ALASKA Ron Long, Chair AYES: NOES: ABSENT: ABSTAIN: ATTEST: Jean Lewis, CMC City Clerk (City Seal) 4 8 Port and Commerce Advisory Board Agenda Statement Meeting Date: February 17, 2010 of s ett, To: Port and Commerce Advisory Board 4 Through: Ron Long, Chair qP BASK From: Suzi Towsley, Executive Liaison Agenda Item: Proposed revisions and timeline for SCC 7.10, Harbor and Port Facilities BACKGROUND & JUSTIFICATION: The Port and Commerce Advisory Board has worked for over a year on revisions to Seward City Code 7.10, Harbor and Port Facilities. The Harbormaster will make recommendations and staff is developing a resolution of amendments encompassing all Port and Commerce Advisory Board revisions. Staff will work in conjunction with board members to prepare a resolution for PACAB approval to be forwarded for subsequent Seward City Council consideration. RECOMMENDATION: The Port and Commerce Advisory Board should discuss remaining Title 7 amendments at its March 3, 2010 work session. 9 Agenda Statement Meeting Date: February 17, 2010 , °F sett To: Chair Long and PACAB q;) o From: Community Development Director Christy Te \, t Agenda Item: Discussion and recommendation regarding Council icnsrt-P City Land Sale Policy Work Session Scheduled for March 9, 2010 BACKGROUND & JUSTIFICATION: Seward City Code authorizes the City Council to dispose of real property by negotiation, public auction or sealed bid. On January 25, 2010 Seward's City Council set a Council Work Session for Tuesday, March 9, 2010 to discuss City Land Sale Policies. In preparation for the scheduled Work Session, Administration would like to hear comments and concerns from the Port and Commerce Advisory Board to help gather informational items for the Work Session. In a nutshell: what items in regards to the City Land Sale Policies would PACAB like to see discussed at the Work Session? To facilitate a meaningful discussion you will find attached: 1) January 25, 2010 Minutes Section setting the Council Work Session 2) SCC §7.05 Acquisition and Disposal of Real Property 3) 2020 Comprehensive Plan Volume 1 Section 3.2.1- 3.2.11 Land Use 4) City of Seward Municipal Lands Management Plan (1995) DISPOSAL Section 5) Seward City Council Resolution 1994 -101 6) 2002 Harbor Uplands Property Lease versus Sale CBA In addition, at the February 17, 2010 PACAB Meeting a large City of Seward Ownership Map will be displayed. RECOMMENDATION: PACAB discuss items Council should evaluate at the March 9`'' Council Work Session. 10 City of Seward, Alaska Ciry Council Minutes January 25, 2010 Volume 38, Page Amendment #3 Passed Unanimous Consent Council member Amberg made a motion to strike the wording in the 15 WHEREAS "in the defense of the lawsuit" and delete section 3, which died for a lack of a second. After hearing council concerns about the amount of financial and legal support, Oates stated he would ask for an executive session at the next meeting to explain possible strategies. Amendment #4 (Amberg/Keil) Delete Section 3 Amendment #4 Passed Unanimous 1.. Main Motion was Passed as Amended Unanimous �: < .,_ '� OTHER NEW BUSINESS . ' The Mayor appointed Vice -Mayor Bardarson to value for the City Attorney and City Clerk. ' -a -e Some ideas were discussed on how to celebrate Seward's` , , onda March 29, 2010. Council would ask the Historical S e Historic Pres motion Commission and the Pioneers for ideas. ; , - At ", i City land sale policies were discussed, and a or essio set for Tuesday, March 9, 2010. / / INFORMATIONAL ITE ANDItEPORTILM action required) 1. January 8, 2010 yor alnro re: Mural Exchange. 2. January 13, 2010 *`r letter to Senator Murkowski. yon'' ' 'S. ., z 3 COUNCIL COMMEN S : £ r' c, y' Shaf was happy thMthe city staff was raising funds for Haiti. Valdatta °s ,ed tbatSeward Landfill only had fluorescent bulb disposal once a month and thought the city need- to notify them on the dates and times the City was disposing of their fluorescent bulbs. ; Keil and Bardarson thanked all the volunteers for another successful Polar Bear Jump. Dunham complimented the 50 volunteers who assisted with the Alaska Sealife Center Marine Gala in Anchorage. He thought it was extremely well attended and it had raised around $58,000. He notified that EVOS and NOAA had about $76 million dollars of Exxon funds remaining and was proposing to split it up and would be in town in March 2010. Dunham had attended a two day session on economic development and mentioned that the oil refinery in Kenai 22 11 Chapter 7.05. Acquisition and Disposal of Real Property* *State law references: See AS 29.35.010(8) for state provisions allowing a municipality to sell, own, etc., real property; see AS 29.35.030 for state provisions allowing municipalities to exercise the powers of eminent domain; see AS 29.71.010 as to adverse possession. Article 1. Generally 7.05.110. Adoption of provisions and statutory authority. 7.05.115. Definitions. 7.05.120. Alternative means of real property acquisition or disposition. 7.05.125. Public hearing and notice. 7.05.130. Terms and conditions to be made available. 7.05.135. Authorizing resolution to approve terms and conditions. 7.05.140. Posting copy of resolution. 7.05.145. Effectiveness of resolution. 7.05.150. Appraisal. 7.05.155. Notice of foreclosure sale. 7.05.150. Adjustment to fair market value. Article 2. Disposition of Real Property by Public Auction or Sealed Bid 7.05.210. Terms and conditions of sale. 7.05.215. Location of sale. 7.05.220. Procedure for sale by sealed bid. 7.05.225. Selection of successful bidder(s). 7.05.230. Resolution accepting bids. Article 3. Short-Term Lease Negotiation 7.05.410. City manager authorized to negotiate short-term leases. Article 4. Encroachments, Easements and Rights -of -Way 7.05.510. Easements and rights -of -way. 7.05.515. Encroachments. 7.05.520. Recording. Article 5. Tidelands 7.05.610. Purpose. 7.05.615. Definitions. 7.05.620. Preference to upland owners. 7.05.625. Preference right application. Article 1. Generally* *Prior ordinance history: Ord. 520, 1984; Ord. 610, 1988; Ord. 92 - 05. 7.05.110. Adoption of provisions and statutory authority. These regulations are adopted by the city council pursuant to authority vested in that body by the charter of the city and by the Alaska Land Act, AS 38.05.820, as amended. (Ord. 98 -04) 7.05.115. Definitions. For purposes of this chapter, the following terms defined have the meaning provided below unless the context requires otherwise. Acquisition means to obtain ownership or interest in and to hold real property within or outside the city boundaries by purchase, gift, donation, grant, dedication, exchange, 12 redemption, purchase or equity of redemption, operation of law, tax or lien foreclosure, adverse possession, condemnation or declaration of taking, annexation, lease or by any other lawful means of conveyances. City means the city of Seward, Alaska. Disposition means the transfer of city interest in real property by warranty or quitclaim deed, easement, grant, permit, license, deed of trust, mortgage, contract of sale of real property, plat dedication, lease, tax deed, will, or any other lawful method or mode of conveyance or grant. Fair market value means the highest price, described in terms of money, which the property would bring if exposed for sale for a reasonable time in the open market, with a seller, willing but not forced to sell, and a buyer, willing but not forced to buy, both being fully informed of all the purposes for which the property is best adapted or could be used. Real property interest means any estate in land, including tide and submerged lands, or improvements thereon. Rights -of -way, encroachments or easements wherein no warranties are made and title is not transferred are regarded as not involving the disposal of a party's interest in real property; thus, the execution of such documents are exempt from provisions of charter section 12.3(b) and section 7.05.110, et seq. of this chapter. Structure means any improvement, constructed or erected on or attached to the ground or another structure, including, but not limited to, awnings, refuse container racks, towers, sheds, signs and fences. Submerged lands means those lands covered by tidal waters between the line of mean low water and seaward to a distance of three geographical miles, or as may hereafter be properly claimed by the city. Tidelands means those lands which are periodically covered by tidal waters between the elevation of mean high water and mean low water or are contained within a recorded Alaska Tideland Survey. (Ord. 92 -05; Ord. 98 -05) 7.05.120. Alternative means of real property acquisition or disposition. The city council may acquire or dispose of an interest in real property by negotiation, public auction, or sealed bid. (Ord. 98 -04) 7.05.125. Public hearing and notice. Prior to disposition or acquisition of a real property interest by negotiation, public auction or sealed bid, a public hearing shall be held. Notice of the public hearing shall be published in a newspaper of general circulation in the city and shall be posted in at least three public places within the city. Both posting and publication shall be done at least ten days prior to the hearing. (Ord. 98 -04) 7.05.130. Terms and conditions to be made available. The notice of public hearing shall indicate where the public may obtain the essential terms and conditions of the proposed acquisition or disposition. A copy of the terms and conditions shall be maintained for inspection at the office of the city clerk for at least ten days prior to the hearing. (Ord. 98 -04) 7.05.135. Authorizing resolution to approve terms and conditions. 13 At any time after the hearing required in section 7.05.125, the council shall make a finding in an authorizing resolution that the essential terms and conditions and the method of acquisition or disposition are in the public interest. (Ord. 98 -04) 7.05.140. Posting copy of resolution. Upon adoption of a resolution approving an acquisition or disposition, the city clerk shall cause a true copy of same to be posted for at least 30 days in at least three public places within the city. (Ord. 98 -04) 7.05.145. Effectiveness of resolution. Objections to a resolution approving a real property acquisition or disposition may be made at any time until the resolution becomes effective. Unless rescinded or amended, any resolution adopted under this chapter automatically becomes effective 30 days after passage and posting. (Ord. 98 -04) 7.05.150. Appraisal. (a) The city shall not sell any real property interest without first making an appraisal of the fair market value of that interest, unless the city council finds that the public interest will not be served by an appraisal. (b) If an appraisal is made, the property interest shall not be disposed of for less than the appraised fair market value, unless the city council finds by resolution that public interest will be served by disposing of the property interest for less than the appraised fair market value. (Ord. 98 -04) 7.05.155. Notice of foreclosure sale. Before property obtained through a foreclosure may be sold, notice of such sale must be sent by registered or certified mail to the last known address of the record owner at the time the foreclosure action was initiated. The notice shall be mailed at least 30 days prior to the effective date of sale. It shall contain the following information: (1) The time and date of sale; (2) The manner of sale; (3) The place of sale; and (4) Notice that until the effective time of sale the record owner has the right to repurchase the property as provided by AS 29.45. (Ord. 98 -04) 7.05.150. Adjustment to fair market value. (a) Except as provided in (b) of this section, the rent under each lease of city property shall be adjusted on July 1, 1995, and on July 1 of every fifth year thereafter during the term of the lease, to the fair market rental value of the property as of the date of adjustment. For each leased property subject to rent adjustment under this section, the city shall obtain a fair market rental value appraisal as of the date of each rent adjustment. (b) Subsection (a) of this section shall not apply to any lease of city property: (1) Authorized before the effective date of this section, except to the extent that the rent adjustment described in subsection (a) of this section has been incorporated in the terms of the lease; 14 (2) For which the council finds that the public interest will be served by leasing the property for Tess than appraised value; or (3) Whose terms provide for adjustment of rent to fair market value more frequently than every five years. (c) Nothing in this section extends the term of any lease of city property. (Ord. 98 -04) Article 2. Disposition of Real Property by Public Auction or Sealed Bid* *Prior ordinance history: Ord. 520, 1984; Ord. 610, 1988; Ord. 92 - 05. 7.05.210. Terms and conditions of sale. (a) The resolution authorizing the sale of real property by public auction or sealed bid shall set forth the terms and conditions of the public sale. The council shall reserve the right to reject any and all bids received. The resolution shall provide if the sale is for cash, or cash deposit and a purchase agreement. If the sale is for a cash deposit and a purchase agreement, the city manager shall prescribe the form of the purchase agreement. (b) The city manager shall designate the individual who shall conduct the sale, and such designee shall give the bidder a receipt for all moneys received by the city. A purchaser at a public sale by auction or sealed bid who fails to make such other cash payments within the time required by the authorizing resolution shall forfeit any cash deposit paid to the city. (Ord. 98 -04) 7.05.215. Location of sale. The public sale by auction shall take place at a location within the city limits as selected by the city manager. (Ord. 98 -04) 7.05.220. Procedure for sale by sealed bid. All real property interests offered for public sale by sealed bid may be sold to any person submitting an offer in writing to the council. Such offer shall be submitted in a sealed envelope marked "Real Property Bid" and must be accompanied by a check or money order made payable to the city in an amount equal to at least 20 percent of the amount bid for residential lots and ten percent of the amount bid for other parcels. (Ord. 98 -04) 7.05.225. Selection of successful bidder(s). If there is more than one bid, at a public auction or by sealed bid, for a particular or group of lots, the lot(s) shall be sold to the highest bidder(s). The highest bidder(s) shall be the one(s) whose bid(s) represents the highest total price for the property interest(s). In the event that two or more parties submit high but identical bids, the council may accept the bid first received, or reject all bids. (Ord. 98 -04) 7.05.230. Resolution accepting bids. After a sale has been conducted by public auction or sealed bid, the council, by resolution with or without public hearing, may approve all public sales of real property based on 15 the bids received, and shall approve any purchase agreement prior to its execution by the city. The approval of any public sale by the council authorizes the city manager to take all steps and execute all instruments to complete and close the sale. (Ord. 98 -04) Article 3. Short-Term Lease Negotiation 7.05.410. City manager authorized to negotiate short-term leases. Nothing in this chapter shall prevent the city manager from negotiating short-term leases of city property subject to council approval at the next regularly scheduled city council meeting. Such leases shall not be subject to the public hearing process, shall not exceed 120 days in length, and shall contain no provisions for optional terms. The resolution approving such a lease may be signed and adopted immediately provided the lease form contains a provision stating that the lease is subject to suspension during the first 30 days after passage of the resolution if a sufficient referendary petition is filed in accordance with section 4.8 of the City Charter. (Ord. 520, 1984; Ord. 610, 1988; Ord. 92 -05) Article 4. Encroachments, easements and rights -of -way 7.05.510. Easements and rights -of -way. A. Subject to applicable provisions of the Kenai Peninsula Borough Code, Title 20, Subdivisions, the city manager may, with regard to city land, negotiate and execute rights -of- way and easements not exceeding a term of 20 years. B. The city manager may negotiate and execute the acquisition of rights -of -way and easements necessary for a utility, public improvement or other public use except the city council shall, by resolution, approve acquisitions involving cash considerations or the exchange or real property valued in excess of $50,000.00. C. Any other rights -of -way and easements shall be granted or acquired only upon approval of the city council. D. The city manager may, at the direction of the city council convey, quitclaim, release, cancel, or otherwise relinquish any real property easement, right -of -way, permit or license the city may have or hold for the purpose of installing, constructing or maintaining a public improvement or utility, whenever the interest is no longer used or useful for that purpose. (Ord. 92 -05; Ord. 98 -05; Ord. No. 2008 -018, § 2, 11 -24 -2008) 7.05.515. Encroachments. A. It is the city's policy not to allow new or unauthorized encroachments into any public right -of- way, land or easement. The city finds that: (i) neither the perpetuation of an existing encroachment beyond the depreciable life of the structure, nor its enlargement, expansion, improvement or extension is deemed to be in the public interest; (ii) all encroachments considered as hazardous, obstructing motorists' line of sight, impeding emergency vehicle access, or impairing snow removal, shall be removed at the earliest available opportunity; and (iii) all other encroachments shall eventually be removed over time. B. The city manager may, after determining that alternatives, including but not limited to, removal of the encroachment or vacating the right -of -way are not feasible alternatives and would not be in the public interest, and where neither public safety nor access is impaired, issue an encroachment permit for the depriciable life of the encroaching structure. 1. No permits may be issued for refuse container racks, towers, sheds, signs or fences; 16 2. The city may revoke the permit upon written notice of not less than twenty days nor more than six months for the construction, improvement or use by the public of public street, sidewalk, and utility projects; 3. The encroachment may not be expanded, extended, improved or enlarged; 4. Encroachment permit shall require the permittee to: a. Pay an appropriate fee as established by city council resolution; b. Secure and maintain general liability insurance coverage based on appropriate minimum limits as determined by the city's risk manager, to protect, defend and indemnify the city during the term of the permit. The city shall be named as a certificate holder for any structure associated with a personal use single family residence; and as an additional insured party for any structure associated with an activity involving rentals, the sale of goods or services, or any business carried out for profit; c. Maintain the property in such a manner as to protect the public safety and welfare; d. At the expiration of the agreement or permit, remove the encroachment and restore the encroachment site to the surrounding grade leaving it in a clean, safe and stable condition; e. Provide other assurances as deemed appropriate by the manager in order to protect the public interest; and f. Provide an as -built survey completed by an Alaska registered surveyor which clearly delineates all encroaching structures. (Ord. 98 -05) 7.05.520. Recording. All easement and encroachment permits including applicable as -built surveys shall be recorded by the permittee in the Seward recording district, third judicial district, State of Alaska. (Ord. 98 -05) Article 5. Tidelands 7.05.610. Purpose. These regulations implement, interpret and apply the provisions of the Alaska Land Act concerning use and disposal of tide and submerged lands and related matters and extend to and include the applicable provisions of Public Law 85 -303. (Ord. 92 -05) 7.05.615. Definitions. For purposes of this article, the following terms shall be defined as follows: Coast line means the line of ordinary low water along that portion of the coast which is in direct contact with the open sea and the line marking the seaward limit of inland waters. Improvements and substantial permanent improvements means buildings, wharves, piers, drydocks and other similar types of structures permanently fixed to the tidelands or contiguous submerged lands that were constructed and /or maintained by the applicant for commercial, recreation, residential, or other beneficial uses or purposes. In no event shall fill be considered a permanent improvement when placed on tidelands solely for the purposes of disposing of waste or spoils. However, fill material actually utilized for beneficial purposes by the applicant shall be considered a permanent improvement. Mean low or lower water means the tide datum plane of the average of the low tides as has been or may be established by the United States Coast and Geodetic Survey. Mean high tide means the tidal datum plane of the average of all the high tides as has been or may be established by the United States Coast and Geodetic Survey. 17 Mean high water line shall be interpreted as the intersection of the datum plane of mean high water with the shore. Occupant means any person as defined herein, or his successor in interest, who actually occupied for any business, residential, or other beneficial purpose, tidelands, or tidelands and submerged lands contiguous thereto, within the city, on or prior to January 3, 1959, with substantial permanent improvements. The holder of a permit of clearance in respect to interference of navigation, or of a special use permit from a government agency will not qualify as an "occupant" unless such entry on the land had, through exercise of reasonable diligence, resulted in actual occupancy and substantial permanent improvements as hereinafter mentioned. No person shall be considered an occupant by reason of having (a) placed a fish trap in a position for operation or storage upon the tide, shore, or submerged land; (b) placed a set net or piling thereof or any other device or facility for taking of fish; (c) placed pilings or dolphins for log storage or other moorage; (d) placed floats or vessels upon the tide, shore or submerged land; (e) placed telephone, power or other transmission facilities, roads, trails or other improvements not requiring exclusive use or possession of tide or contiguous submerged lands; or (f) claimed the land by virtue of some form of constructive occupancy. Where land is occupied by a person other than the owner of the improvements thereon, the owner of the improvements shall, for the purposes of this definition, be considered the occupant of such lands. Occupied and developed means the actual use, control, and occupancy, but not necessarily residence, of the tide and contiguous submerged land by the establishment thereon of substantial permanent improvements. Permit preference means the privilege of the upland owner to acquire first choice over other non - preference right claimants to a permit for like use and enjoyment of city owned tide or contiguous submerged lands abutting his property. Person means any person, firm, organization, cooperative association, partnership or other entity legally capable of owning land or an interest therein. Pierhead line means the line fixed by the Department of the Army Corps of Engineers that is parallel to the existing mean low tide line at such distance offshore from the mean low tide line that the pierhead line shall encompass, landward and no more, all stationary man -made structures (but shall not encompass any part of breakwaters, bridges, or piers used for vessel dockage which part extends beyond such a parallel line marking the seaward extremity of other man -made structures) which were in existence as of February 1, 1957, to seaward of the city. Preference right subject to the established classifications, means and includes the right of an occupant to acquire by grant, purchase, or otherwise, at the election of the occupant, except as otherwise limited or prescribed in these regulations, any tract or tracts of tidelands, or tide and submerged land contiguous thereto, occupied or developed by such occupant on and prior to January 3, 1959. Preference right, Class I means a right claimed by persons who occupied and developed tide and contiguous submerged lands seaward of the city on and prior to September 7, 1957, after executing a waiver to the city and state of all right such occupant may have had pursuant to Public Law 85 -303. Upon execution of the waiver, such persons or their successors in interest have the right to acquire such occupied and developed tide and contiguous submerged lands from the city for consideration not in excess of the cost of survey, transferring and conveying of title. Preference Right, Class 11 means a right claimed by Class I Preference Right claimants who decline to execute a waiver to the state and city of any rights such occupants may have acquired pursuant to Public Law 85 -303 (71 Stat. 623). It shall be mandatory for the city to honor the application from the occupant after the Secretary of the Army has submitted to the Secretary of the Interior, the Governor of Alaska and the city manager, maps showing the pierhead line established by the Corps of Engineers with respect to the land claimed. Upon 18 proof of such occupancy, such persons have the right to acquire such tidelands and contiguous submerged lands from the city for a consideration not in excess of the cost of survey, transferring and conveying title. Preference Right, Class 111 means a right claimed by persons who occupied and developed tidelands and contiguous submerged lands after September 7, 1957, and who continued to occupy them on January 3, 1959. Upon proof of such occupancy, such persons have the right to acquire such tidelands and contiguous submerged lands for a consideration not in excess of the cost of appraisal, survey, administering and transferring title, plus the appraised fair market value of the land claimed, exclusive of any value accruing from improvements or development, such as fill material, buildings or structures. Upland owner means that land owner whose upland property abuts the line of mean high tide. (Ord. 92 -05) 7.05.620. Preference to upland owners. Should the city decide to dispose of interest in any tide or submerged land, the city shall grant to the owner of upland property adjacent to said tide and submerged land a first preference to acquire said interest over other applicants /bidders. The upland owner shall be notified by certified mail or by a posting of a notice for three consecutive weeks of his right to exercise his preference. The upland owner shall then have 90 days to exercise this preference under this section. If the preference is not exercised by the upland owner, then the city may dispose of the tide and submerged land to others. It shall not be required that the city offer its tide and submerged lands for disposal should the city determine that it is not in its best interests to dispose of such land. The city may itself make such use of its tide and submerged lands as it may consider in the public interest without offering the tide and submerged lands to others. (Ord. 92 -05) 7.05.625. Preference right application. An occupant claiming a class I, class II, or class III preference right may apply for preference rights within two years from the effective date of the ordinance adopting these regulations. Any preference right for which an application is not filed within this period shall be forfeited. Completed applications shall be submitted to the city manager on forms supplied by the city. (Ord. 92 -05) 19 0 • Adjust local regulations, where appropriate, to encourage development in international commerce consistent with the community vision. 3.1.2. Increase public sector employment and programs. 3.1.2.1 Support existing public institutions in their effort to maintain, expand and develop. • Continue to advocate on behalf of the University of Alaska in their efforts to expand the Institute of Marine Science (IMS) facility. • Continue to advocate the Department of Corrections and Alaska State Legislature to expand the Spring Creek Correctional Center (SCCC). • Continue to advocate for the growth of the Alaska Vocational Technical Center (AVTEC). • Continue to support external funding for the Alaska SeaLife Center (ASLC). • Seek stable funding to maintain the District Recording Office in the Seward location. • Support existing public institutions in their efforts to maintain, expand and develop. • Support the concept, fundraising activities and construction of a new library/museum facility intended to combine, update and expand the programs and services of the Seward Community Library and the Seward Museum. 3.1.2.2. Encourage and assist in the development of new public services and facilities. • Support construction of the Multi- Agency Facility which is to include: National Park Service, US Forest Service, Alaska State Parks, and the University of Alaska. • Encourage the appointment of a superior court judge, and construction of a courthouse /public safety building in Seward. • Encourage additional military facilities that upgrade Seward as a Morale Welfare and Recreation (MWR) destination. c 3.2 LAND USE y 3.2.1 Promote residential and commercial development within the city of Seward and its vicinity in accordance with community values. 3.2.1.1 Manage land use to facilitate economic development while maintaining the historic, small town character of Seward. 2020 SEWARD COMPREHENSIVE PLAN VOL. 1 1 n 2005 20 • Use city -owned land and tidelands to encourage feasible and - sound economic development by setting development standards and performance periods through the leasing process. • Evaluate for disposal city -owned lands which have not or will not be dedicated to a public purpose. • Develop infrastructure and utility expansion plans for currently undeveloped residential and commercial property, including ways to reduce service costs once operational. • Evaluate ordinance requirements and provide incentives for property owners that balance economic development with design that is compatible with the historic character of Seward, and provides amenities such as landscaping and adequate parking. • Ensure uniform and consistent enforcement of the zoning code, building code, subdivision ordinance, and city lease agreements, and evaluate potential code changes to make enforcement easier. • Improve methods of communicating and achieving development requirements in each zoning district by preparing information packets that include: construction permits, code requirements, and means of minimizing pollution and drainage problems; and by streamlining the plan approval and building inspection processes. • Revise the Resource Management District to require rezoning before development for residential, commercial or industrial use. • Evaluate reducing the number of zoning districts by combining Urban Residential and Office Residential. • Make code changes to allow more reasonable rebuilding of non- conforming uses after fire or other significant damage or allow expansion of non - conforming uses to a limited extent. • Support the on -going dialogue with the Alaska Railroad Corporation and the State of Alaska regarding the status and disposition of their undeveloped lands. • Find land suitable for cemetery expansion. • Research Conservation options for environmentally sensitive areas. 3.2.1.2 Expand the opportunity for affordable, diverse, year -round housing through appropriate land use regulations. • Promote infill development by promoting housing construction on small vacant lots in already 2020 SEWARD COMPREHENSIVE PLAN VOL. 1 1n 2005 21 • generally used only as a last resort after other acquisitio orts have failed. The only instance of this in recent city records involved the first half mile of the Nash Road extension. Tax/Lien Foreclosure. Over the years, much of the land that is now Two Lakes Park, Gateway Subdivision and the Crawford Subdivision was acquired through tax foreclosure. State statutes require that tax foreclosed property within the city limits be deeded to the city. It gives the city the opportunity to declare by ordinance whether a foreclosed property is needed for a public purpose. If so, all redemption avenues by the former owner are closed. If property is not needed for a public use, the former owner has first right of redemption for up to 10 years. Any funds over and above taxes, penalties, interest and administrative costs gained from the fff sale of tax foreclosed property are made available to the former property owner. Although it has not been done in recent history, the city could acquire land through foreclosure on liens against utility improvement district property assessments. Purchase. Many of the city's parcels have been purchased from private land owners. Notable examples include the Lowell Point sewer lagoon site, as well as lands and easements along the city's power transmission line. Such purchases are generally based on a fair market appraisal value. Normally funding for such purchases is on a cash available basis from appropriated funds. Trade/Exchange. The city has acquired some lands through trades with private and public sources such as Two Lakes Park lands from the University of Alaska (UofA) for a longer lease term and vacation of the 1st Ave. right of way at the Institute of Marine Science (IMS) facility, and the transfer/landfill and elementary school sites to the borough for 4th of July Creek lands. DISPOSAL SCC 7.05.115 defines "disposition" as the transfer of city interest in real property by IC warranty or quitclaim deed, easement, grant, permit, license, deed of trust, mortgage, contract of sale of real property, plat dedication, lease, tax deed, will, or other lawful method or mode of conveyance or grant. Sale. After conducting a public hearing, City Council may approve the negotiated, sealed bid or public outcry auction sale of public property. The sale price or minimum bid price must be at fair market value unless otherwise found to be in the public interest by the Council. The sale of land converts a capital asset to cash which accrues to the city's general fund or one of the enterprise funds. It may then be appropriated through the budget process to many different uses. There has been increasing discussions about establishing a Land Bank fund in which the proceeds for land sales would accrue for the acquisition of future municipal lands, thereby benefiting present and future citizens and promoting the orderly development and achievements of the goals of the Comprehensive Plan. Recommendation: Establish a Land Bank where funds acquired from the sale of surplus property accrue to a special account for acquisition of other needed lands. Lease. The city has leased lands for many years with the oldest current lease dating from 1955. City Council Resolution 94 -101 established the most recent policy and procedure relating to the lease of public lands. The essential terms and conditions of city leases generally include length of the lease, rental rate, and development requirements. With the exception of those to the state or federal government, all leases require proof of liability insurance naming the city as an insured party. Leases are allowed to be assigned or sublet with written city consent. A condition of any sublet consent is that the city receive a copy of the sublet agreement including the rental value. This information is important to the city in the development of fair market land values. Although the Comprehensive Plan suggests that the city continue to dispose of commercial and industrial public Municipal Lands Management Plan May 1995 3 � - a 22 � 3 I I land through long term leases rather than sale, lessees continue to lobby for the fee simple transfer of their sites. Although the sale of these lands would generate a large one time cash infusion to the city, it would have a "; significant long term adverse impact on annual city budgets. Lease revenues currently generate in excess of I $330,000 a year; and this amount generally increases over time due to periodic appraisal adjustments and new leases. These lost revenues would have to be offset in some manner in the budget process. Preliminary evaluations of interest that might be earned from the deposited projected lease site sale income show that it will not replace lease income revenues. Recommendation: Reaffirm the Comprehensive Plan by continuing to I. dispose of commercial and industrial lands through long term leases rather than sale N City lands are normally leased at fair market rental rates based on a percent of fee simple land value. The City , 4 uses an 8% rate. Reviews of other community and public agency lease policies show that this rate varies from 1 6% to 10% throughout the state. The lower rates appear to apply where there is strong desire to encourage ;!' development and higher rates where the demand for land is high. In Seward, there is an exceptionally high demand !� for land in the small boat harbor where there are no vacant lands available for lease. On the other hand the city is trying to- encourage development at the Seward Marine Industrial Center. Recommendation: Consider using �; '. different rental percentage rates to reflect supply and demand on various city land areas Le. the Seward Marine Industrial Center where land is available and development is encouraged and the Small Boat "' Harbor where land is in short supply and high demand �t q , Trade/Exchange. The city has acquired substantial acreage through land trades with both public � agencies and private individuals. Most of the bench lands above Nash Road and in the Fourth of July Creek' valley were acquired through trades with the Kenai Peninsula Borough for the solid waste site and the elementary lj school site. l!; RIGHT OF WAYS, ENCROACHMENTS, and EASEMENTS p . iii Right of Ways. While they normally do not convey any warranty or title interest and are not " lo considered real property under general accounting procedures, they are a part of the city's overall land F4 management efforts. These are lands acquired by reservation, dedication, forced dedication, prescription, or �i condemnation and intended to be used for public access, roads, trails, parking, and utilities. They are normally . "0 dedicated to the public during the subdivision platting process, and there is usually no deed transferring I!,1 t ownership. They generally fall under the management authority of the local municipality providing road services. !`i All right of ways within the city are under city jurisdiction, except for Third Avenue /Seward Highway, Port Li' a Avenue, Airport Road and a small portion of Nash Road which are state. The city is responsible for 28 miles of developed dedicated right of ways (streets and alleys). Another three (3) miles are dedicated through subdivision plats, but have never been constructed. These are in the Marathon, Cliff, Bayview and Forest Acres j(1 1 Subdivisions. There are platted right of ways which will never be developed or used because of topography and 1 there are additional right of ways that the city should plan for in the future. Recommendation : ' a) Vacate otherwise undevelopable right -of -ways to enlarge and/or consolidate adjacent lands. b) Plan right of way acquisition to: j 1) connect Hemlock Avenue and Phoenix Road as an alternate exit from Gateway i d Subdivision and collector street for the undeveloped portion of Forest Acres and the land north and west of the two schools. (map 3 -22). 2) extend Chamberlain Road above the horse pasture to Phoenix Road provide an alternate parallel route to relieve pressure on the Seward Hwy (map 3 -23). ; 3) extend Benson Drive through from Swetmann Dr. to Phoenix Road to provide a safer school bus route and an alternate egress from Gateway Subdivision. (map 3 -19) Municipal Lands Management Plan May 1995 4 _ II I, • 23 ; it Sponsored by: ion 11110 CITY OF SEWARD, ALASKA RESOLUTION NO. 94101 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, APPROVING A POLICY FOR NOMINATING PUBLIC PROPERTY FOR DISPOSAL WHEREAS, the city regularly receives unsolicited proposals to lease city land; and WHEREAS, the city has no written policy regarding the identification and nomination of public lands for disposal; and WHEREAS, it is in the public interest to adopt such policies; NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, that: Section 1. City of Seward Lease Policies and Procedures, a copy of which is attached and incorporated herein by reference, is hereby ADOPTED. • All prior resolutions in conflict herewith are hereby 2. p Y RESCINDED. Section 3. This resolution shall take effect immediately upon its adoption. PASSED AND APPROVED by the City Council of the city of Seward, Alaska, this 8th day of August, 1994. THE CITY OF SEWARD, ALASKA uL9 _ `�- flitraiLf Dave W. Crane, Mayor AYES: Anderson, Bencardino, Crane, Krasnansky and Sieminsld NOES: Darling ABSENT: O'Brien ABSTAIN: None • 24 CITY OF SEWARD, ALASKA RESOLUTION NO. 94 -101 ATTEST: APPROVED AS TO FORM: Wohlforth, Argetsinger, Johnson & Brecht, Attorneys for the city of Seward, Alaska / 1 1 _aew,C/12, S. rph • , CM / • City Attorney City Clerk (City Seal) 25 rrr.rrr.r.rr City of Seward, Alaska • Lease Policies and Procedures PROCEDURES FOR NOMINATING PUBLIC LANDS FOR LEASE The following procedures have been adopted by the Seward City Council to allow the public to nominate city owned lands not otherwise designated as available for lease development: A. Any person may make written nomination to the City Council for the city to dispose of public lands without divulging specific development ideas or purposes. B. If requested by the City Council, city staff will research and prepare a report on titles, covenants, deeds, zoning, land use planning, other land restrictions, and any planned public uses associated with the nominated lands. C. The Planning and Zoning Commission will review and make a recommen- dation to the City Council regarding the pros and cons of disposing of the nominated parcel. D. The City Council will hold a public hearing on the disposal of the • nominated property and, by resolution, will make a determination as to whether or not to dispose of the nominated lands. If the City Council finds that it is in the public interest to dispose of the nominated lands, the resolution shall specify the method of disposal, i.e., lease, sale, negotiation, bid, or request for proposals. E. If the City Council finds it in the public interest to lease the nominated land, the City Manager shall proceed with the disposal process following polices and procedures outlined in the City Code and this resolution. LEASE PROPOSAL POLICIES AND PROCEDURES_ The following procedures have been adopted by the Seward City Council to guide prospective lessees and the city administration in handling proposals on city -owned lands designated for lease disposal A. The prospective Lessee shall submit to the City Manager a written development plan, including a conceptual site plan, building elevation drawings, a construction schedule, and proof of project financing. B. The lease development proposal shall be submitted to the Planning and al Zoning Commission at their next regular meeting, for review and written recommen- City of Seward, Alaska Resolution No. 94 -101 Attachment A Page 1 26 dations, including any special lease conditions the Commission determines to be in the 40 public interest. C. The proposal along with written Planning Commission and staff comments and recommendations shall be submitted to the City Council, at the next regularly scheduled meeting, subject to agenda deadlines. D. Not later than 30 days following presentation to Council, the City Council shall determine whether it is in the public interest to proceed with lease negotiations. E. Upon directing the administration to proceed with the lease negotiations, the prospective Lessee shall, within 30 calendar days, deposit with the city a cash performance bond in an amount not less than one -half the first year's lease payment as estimated by the city administration. 1.. If the prospective Lessee does not diligently pursue lease negotiations within 60 days of the date that the Council consents to the commencement of said negotiations, the entire performance bond shall be retained by the city as liquidating damages. 2.. If the city and the prospective Lessee reach an impasse and are unable to come to terms on a lease agreement, the performance bond shall be returned to the prospective Lessee after deducting lease document preparation costs incurred by • the city. Such costs shall include, but not be limited to, appraisals, attorney and actual staff costs, advertising and other incidental expenses. F. If the city and the prospective Lessee reach an agreement on lease terms, the lease documents shall be signed by the prospective Lessee, approved as to form by the City Attorney and forwarded to the City Clerk. Once the Clerk receives the properly signed lease agreement, a public hearing will be advertised and held in accordance with provisions of the Seward City Code, and the lease agreement will be presented to the City Council for action. G. If the proposed lease is approved by the City Council, the resolution approving the lease and the lease agreement shall be posted for thirty days as required by the City Code. Barring the filing of a sufficient referendum petition to set aside the lease, the lease shall then become effective 30 days after passage and posting. Once the lease agreement becomes effective, the city shall deduct from the performance bond all lease preparation costs incurred by the city, including but not limited to appraisals, attorney and staff time, advertising and other incidental costs. The remainder of the performance bond, if any, shall be credited towards the rents due, and the Lessee shall be billed in accordance with the city's quarterly lease billing cycle. • City of Seward, Alaska Resolution No. 94-101 Attachment A Page 2 27 rr► H. In the event the City Council fails to approve the lease agreement within 40 60 days of the date the negotiated lease agreement is first presented to the City Council, the total cash performance bond shall be returned to the prospective Lessee. I. The City Council may waive any or all of these requirements as it deems necessary to ensure successful completion of the lease negotiations. LEASE ADMINISTRATION POLICIES AND PROCEDURES The following procedures have been adopted by the Seward City Council to guide lessees and the city in the fair conduct of business associated with lease administration: A. Fees set by resolution of the City Council will be assessed to cover administrative time, copying costs, phone calls, postage, legal notices and other costs associated with processing all lease assignments, amendments, and sublet consent actions requested by lessees. Additionally, lessee will pay all recording fees and will reimburse the city of city attorney time in connection with the requested action or actions. B. Lease assignments and sublet consent requests will be reviewed, processed and approved as administrative functions subject to: 1. All taxes (real, personal and sales), utilities, lease payments, assess meets, licenses and insurance must be current. 2. All appropriate fees must be paid in advance. 3. City sublet approval will not be required for individual tenant space rentals in buildings designed with separate retail and office spaces. 4. Following evaluation and administrative determination, the city may require a personal guarantee by lessees requesting assignments to corporations which are principally owned by lessee and created for tax and liability purposes. 5. Each sublessee must provide proof of insurance in accordance with the principal lease, naming the city as an insured party. 6. The city must be provided a copy of any sublet agreements, including lease amounts, so that the city may forward this information to city appraisers for future fair market value determinations. Copies of the sublet agreements, including lease amounts, will be provided to the City Council at the next regular Council meeting. C. Amendments to leases that change the essential terms and conditions (lease rate, term, land area, or development conditions) may be approved only by resolution of the City Council. Such requested amendments will be scheduled for Council action 41) only after the following terms have been met: City of Seward, Alaska Resolution No. 94-101 Attachment A page 3 28 1. All taxes (real, personal and sales), utilities, lease payments, assess . ments, licenses and required insurance must be current; 2. All appropriate fees must be paid in advance; and 3. The lessee's signature(s) must be in place on all required documents. • • City of Seward, Alaska Resolution No. 94 -101 Attachment A Page 4 29 r.rri.rnr.' • (0 Cost - Benefit Analysis '' "' Lease is Preferred over Sale Parcel Valuation Summary KPB Assessed and MacSwain Appraised Values City of Seward Harbor Uplands Property Lease versus Sale Discount Rate Summary Cost- Benefit Analysis i Impact of Various Assumed interest Rates July 27, 2002 Lease versus Sale Alternatives Examines 20 -Year or 40 -Year Lease, and Sale Projected Property Taxes Estimates taxes under sale or lease scenarios Projected Lease Revenues Assumes land continues to be leased, not sold Individual Parcel Information Results of MacSwain Associates 2000 Appraisals 30 • MEMORANDUM d 'fA Date: July 27, 2002 To: Scott Janke, City Manager qu a NIP From: Kristin Erchinger, Finance Director Subject: Harbor Upland Properties Lease vs. Sale - Cost Benefit Analysis The following information presents the findings of the cost - benefit analysis of the harbor upland property lease versus sale. This study updates the analysis conducted in January, 1998, utilizing Kenai Peninsula Borough property assessment values from 2000, and March 2000 property appraisal values computed by MacSwain Associates. The purpose of this analysis is to determine whether it is in the City's financial interests to sell the harbor upland properties, or to continue leasing the properties. The three alternatives examined include: 1) a 20 -year lease of the properties; 2) a 40 -year lease of the properties; and 3) sale of the properties to taxable entities in the private sector. Summary of Finding The study concludes that it is in the City's financial interest to maintain ownership of the harbor upland property rather than to sell. The financial justification in favor of leasing the properties is even more compelling at this time than it was in 1995, when the issue was first studied. This is due to the fact that while the appraised value of the subject properties increased 49.9% from 1995 to 2000 (from $984,000 to $1,475,000), the KPB assessed value of the land increased 42.7% (from $587,000 to $837,800) and improvements increased 77.9% (from $2,707,400 to $4,816,400). Thus, annual lease revenues for these parcels increased 339,280 ($491,000 appraised value increase x 8%), and annual property tax revenues increased approximately $7,360. J nundaries of Analysit The study was limited to examining the direct costs and benefits associated with the three alternatives listed above. It does not consider the impact of potential indirect costs or benefits such as economic benefits derived from private ownership, the loss of higher or better uses of the land, or potential increases in property tax revenues resulting from the increased value of improvements made to the properties. The administration may want to consider these potential indirect factors in a second -cut analysis, before making a final decision. Assumptinna Cost - benefit analysis is a tool which allows policy makers to evaluate the consequences of alternative public investment decisions. Such analysis however, is highly dependent on the assumptions made in the analysis. The choice of assumptions is important, because the inclusion or exclusion of certain assumptions can have a substantial impact on the results of the analysis. The assumptions included in this analysis are as follows: Assumptions unio�e to J ncv AlternntiveA -. Property taxes are based on the Kenai Peninsula Borough (KPB) 2000 assessed property values. Improvements are taxed by the Borough at full value, but the value of the land is discounted based on the remaining term of each particular lease. For shorter -term leases, the taxable value of the land is much lower, as the lessee is considered to have less of a possessory interest in the land. For longer leases, the lessee is taxed on a higher percentage of the fee value of the land. Generally, KPB assesses land leased from a government agency at a lower value than privately -owned property. -. Annual lease revenues are based on 8% of the 2000 market value appraisals. 31 Harbor Upland Properties Lease vs. Sale - Cost- Benefit Analysis Page Two ,4ssumptinnv unique to Leave Alternnnvot rantinued• . -. For the purpose of estimating property tax revenues, land values are assumed to increase 5% per year, but the value of property improvements does not change. -. Properties are re- appraised every 5 years; appraisal cost to City is $1,.500 per parcel. -. Cost to City of administering each lease is $250 per year. /issumptinns unique to .Cole, Alternative If the properties are sold, property taxes are based on the 2000 appraised market values of the properties, as determined by MacSwain and Associates (see Appendix). -. Properties are sold at 115% of the 2000 KPB assessed value. -. For the purpose of estimating property tax revenues, the value of land and property improvements increases 5% per year. -. Cost to City of selling each parcel is $2,000. .4ssumptinne shored by all alternatives Property tax mill rate remains at 3.12 mills (the current mill rate). -. Benefits (i.e. lease revenues) accrue at year -end. -. Net present value (NPV) is computed in present dollars. prsrerlure, The steps used to conduct this analysis included: 1) formulating alternatives, 2) estimating the costs of each alternative, 3) estimating the benefits of each alternative, 4) discounting the costs and benefits to their present value, and 5) selecting the best alternative. Selecting the best alternative —in terms of costs and benefits— requires determining which altemative has the highest net present value (NPV) of future cash inflows and cash outflows. A positive NPV indicates that the benefits of a project outweigh the costs associated with it. In my assessment, each alternative yields a positive NPV, suggesting that all alternatives have a net positive benefit to the City. However, a comparison of the three alternatives suggests that a 40 -year lease of the harbor upland properties yields a higher net benefit to the City than either the 20 -year lease option or the sale of the properties. niccnunt Rate, A comparison of the net present value of the alternatives requires selecting an appropriate discount rate. The discount rate is intended to reflect the rate of return that could be earned from an investment of similar risk. The choice of discount rates is important because it often has a significant impact on which of several alternatives is optimal. Historically, many government projects are evaluated using a very low discount rate such as the 20 year municipal bond rate (i.e. 4, 5 or 6%), since that is thought to approximate the cost to a government of borrowing funds. There is a "fairly broad consensus both inside and outside the public sector however, that rates more realistically reflecting opportunity costs should be used. Accordingly, in recent years, the Office of Management and Budget of the federal government has frowned on the use of discount rates lower than 10 percent per year for the evaluation of public programs." A related argument suggests that since public projects are funded from private sector resources, it is appropriate to select a discount rate approximating the private sector's cost of borrowing. Such a discount rate considers the opportunity cost of funds in the private sector of 1 Truett, Lila and Dale, "Managerial Economics ", p. 647. 32 Harbor Upland Properties Lease vs. Sale - Cost - Benefit Analysis Page Three ,Sensitivity Analysis A sensitivity analysis was conducted to determine the extent to which the discount rate affected the outcome of the analysis. An examination of discount rates ranging from 6% to 18% revealed that the analysis is not sensitive to the discount rate up to 15.9 %; at all rates below this rate, the 40 -year lease is preferred to the 20 -year lease, which is preferred to the sale. The discount rate of 15.9% represents the switch point; at this point the order of preferred alternatives changes and while the 40 -year lease is still the preferred alternative, the sale is now preferred to the 20-year lease. At a discount rate of 17.7% and above (the pivotal switch point in this analysis), the sale alternative is now preferred to both the 40 -year and 20 -year lease alternatives. What exactly does this mean? It means that in order for the sale to be the preferred alternative, the City would have to be able to invest the proceeds of the sale in an investment vehicle yielding at least 17.7%. These NPV results are summarized as follows: NPV of 40 -year lease and 20 -year lease > Sale up to discount rate of 15.9% NPV of 40 -year lease > Sale > 20 -year lease at 15.9% NPV of Sale > 40 -year lease > 20 -year lease at 17.7% Figure 1: Sensitivity Analysis of Discount Rates from 6% - 22% 40-Year Lease is preferred to Sale up to 17.7% discount rate 4.000.000 r 3,500,000 �s ,. � � Fr Y r ` 3,000000 yr: r . , ti rxr? c° :, W 2,500,000 °4 j. t 2.000, t ' - k H'$i:y" ! • f �`d a A 1,500,000 .4.. . y,t 9 5.. 6% 8% 10% 12% 14% 16% 18% 20% 22% Discount Rate I—Alt. - 20-yr lease -Alt. 2 - 40 -yr lease Alt. 3 - Salel 33 imiromimir Harbor Upland Properties Lease vs. Sale - Cost - Benefit Analysis Page Four The following table highlights the preferred alternative — the alternative with the highest net present value — at each discount rate: 10% 15.8% 15.9% * 17.6% 17.7% ** Alternative 1- 20-yr lease 1,473,055 974,246 968,132 873,202 868,106 Alternative 2 - 40-yr lease 2,005,003 1,090,848 1,081,749 946,052 939;053 Alternative 3 — Sale 1,098,728 972,833 971,113 943,558 942,029 * Switchpoint - Represents the point at which the order of preference changes, and the sale is now preferred to the 20 -year lease. ** Pivotal switchpoint - Represents the point at which the sale is now preferred to a lease. A sensitivity analysis of the sales price of the properties suggests that the analysis is not highly sensitive to a reasonable range of the sales price. In fact, for the sales price to make the sale alternative more appealing than either of the lease alternatives (at a 10% discount rate), the City would have to sell the harbor upland properties for 234% of their 2000 KPB assessed values. It is important to note however, that the combined 2000 KPB assessed values for these properties is $837,800, while the 2000 appraised values total $1,475,000 (an increase of $637,200 or 76%). Therefore, a further sensitivity test was conducted to determine the pivotal switchpoint of a range of sales price based on the appraised values rather than KPB assessed values. In this test, in order for the sale to be preferred to either lease option, the properties must collectively sell for approximately 133% of their 2000 values as appraised by MacSwain Associates. Sensitivity tests of the other variables in this analysis (e.g. property tax rates, land value increases, appraisal costs, lease administration costs) are ancillary to the overall lease versus sale decision. Cnncbnsinn In conclusion, the results of the cost - benefit analysis - -given my assumptions -- suggests that at any discount rate less than 17.7%, it is in the City's interest to lease the harbor upland properties for a 40 -year term (or even a 20 -year term below 15.9 %), rather than to sell the properties outright. Of course, there are other factors to consider in making this decision, such as indirect costs and benefits, potential higher and better uses of the properties, administrative feasibility, analyzing alternative assumptions, and political viability. Based on this cost - benefit analysis alone however, the City is better off maintaining ownership of the harbor upland properties. 34 Harbor Upland Properties - Cost Benefit Analysis Table 1: Parcel Valuation Summary . KPB KPB . MacSwain Annual Assessed Value Assessed Value Market Lease Rate Annual City Parcel of Land of Improvements Value as % of Lease Property ID Lessee (a) _ (a) (b) Market Value at 8% Taxes 1 -17 Mark Clemens 129,300 604,700 250,000 8.00% 20,000 2,290 1 -21 Orca Enterprises 145,100 486,200 225,000 8.00% 18,000 1,970 1 -19 Charles Bald 31,600 85,800 100,000 8.00% 8,000 366 1 -20 Juris Mindenbergs - Sublet 108,900 141,000 175,000 8.00% 14,000 780 1 -22 James Pruitt 126,500 761,100 225,000 8.77% 19,741 2,769 1 -23 Dot Bardarson 29,800 271,900 50,000 8.00% 4,000 941 1 -24 Linda Lorz 29,800 71,900 50,000 8.00% 4,000 317 1 -18 Juris Mindenbergs 236,800 2,393,800 400,000 8.00% 32,000 8,207 , w 837,800 4,816,400 1,475,000 119,741 17,641 cn (a) Source: Kenai Peninsula Borough 2000 property assessments (b) Source: MacSwain Associates 2000 City of Seward property appraisal City of Seward - Harbor Upland Property - Cost Benefit Analysis -Lease vs Sale miwor Harbor Upland Properties - Cost - Benefit Analysis Table 2: Discount Rate Impact on Net Present Value Total Order of Discount Net Present Preference Alternative * Rate Value 1 40 -year lease 6.00% 3,701,028 2 20 -year lease 2,088,591 3 Sale 1,233,471 1 40 -year lease 10.00% 2,005,003 2 20 -year lease 1,473,055 3 Sale 1,098,728 1 40 -year lease 14.00% 1,281,871 2 20 -year lease 1,096,085 3 Sale 1,005,956 1 40 -year lease 15.80% 1,090,848 2 20 -year lease 974,246 3 Sale 972,833 1 40 -year lease 15.90% 1,081,749 2 Sale 971,113 * Switchpoint 3 20 -year lease 968,132 1 40 -year lease 17.60% 946,052 2 Sale 943,558 3 20 -year lease 873,202 1 Sale 17.70% 972,029 ** Pivotal Switchpoint 2 40 -year lease 939,053 3 20 -year lease 868,106 * Switchpoint - Represents the point at which the order of preferred alternatives changes. ** Pivotal Switchpoint - Represents the point at which the sale is now preferred to a lease. City of Seward - Harbor Upland Pi 36 y - Cost Benefit Analysis -Lease vs Sale Schedule At Alternative 1: 20 year lease Attataavfions: Discount rete 10.00% Property tax mill nue 0.00312 Anal lase maintenance costs 5250 Land fair market value inmates per year 5.00% hnprovememe fair motet value increase/ yr 0.00% Lase rate is 8% of appraised land value . Leases reappraised every 5 years beginning 2005 Land value increases reflected each lase renewal Appraisal cost 51.500 Year 1 is 2003 NPV composed in cutout dollars Benefits (i.e. lease revenue) accrue at yearend 2003 BENEFITS: Year 1 • 2 3 4 5 6 7 8 9 10 11 12 13 Lease revenue 118,000 118,000 118,000 136,600 136,600 136,600 136,600 136,600 174,340 174,340 174,340 174,340 174.340 Property taxes 17 641 17.862 18.000 18.144 18 295 18 454 18,621 1: 796 18.980 19173 19 375 19,588 19,812 Annual Benefits 135.641 135.862 136.000 154.743 154,895 155,054 155,220 155,395 193,319 193,512 193.715 193,928 194,152 PV of Annual Benefits 123.310 112,283 102,178 105,692 96,177 87,524 79.653 72,493 81,986 74,607 67,896 61,791 56,239 COSTS: Appraisal every 5 years 0 0 0 1,500 1.500 0 Aneual contract adniniaaation 250 250 250 250 250 250 250 250 250 250 250 250 250 Annual Costs 250 250 250 1.750 250 250 250 250 1,750 250 250 250 250 PV of Annual Costs 250 250 250 1,750 250 250 250 250 1,750 250 250 250 250 Annual Net Present Value (PV Ben - PV Cost) 123,060 112.033 101,928 103,942 95.927 87,274 79.403 72.243 80,236 74,357 67,646 61.541 55,989 BENEFITS: Year 14 15 16 17 18 19 20 V lease revenues 222,507 222,507 222,507 222.507 222,507 283,981 283.981 Property taxes 20,047 20,293 20,552 20,824 21,109 21,408 21,723 Annual Benefits 242, 553 242. 800 243, 058 243.330 243.615 305.389 305,704 PV of Total Benefits 63,872 58,124 52.897 48,142 43,816 49,934 45,441 COSTS: Appraisal every 5 years 1.500 0 1,500 Annual contract administration 250 250 250 250 250 250 250 Annual Costs 1,750 250 250 250 250 1,750 250 PV of Annual Costs 1,750 250 250 250 250 1.750 250 Annual Net Present Value (PV Ben - PV Cost) 62,122 57.874 52.647 47.892 43,566 48,184 45,191 PV of Total Benefits 1,484,055 PV of Total Costs 11.000 Total Net Present Value 51,473,055 Property Value at end of 20 yr lease 52.222.933 • City of Seward - Harbor Upland Property - Cost Benefit Analysis -Lease vs Sale Schedule B: Alternative 2: 40 year lease 4 AagarYd1 ms: olsmr mg 100x% P lyisau II Ws 000312 Aid tree sslsesse ear 5250 W fin nano sss haws rpar 3.00% la pavisass Gtr who via laswasalyr. 0.00% . Law err it 89, arsppaisad Mad Was Laws wwralsl mess 3yaws WOW' l 2015 Lad value Woos s8ufd sob lets rawbu1 Amaisl asst s1.300 Yrs l 1. 2003 NMI sapid isc i Who }Wads cLa. Isms mewl sass wxi,. rn: Year 1 2 3 4 5 6 7 8 9 10 11 12 13 14 13 16 Lease revenues 118,000 118,000 118,000 136.600 136,600 136.600 136.600 136.600 174.340 174,340 174,340 174,340 174340 222,307 222,507 222,507 Propertytues 17,641 17.862 18,000 18,144 18,295 18.454 I8o21 18,796 18,980 19,173 19,373 19488 19 ,812 20,047 20,293 20552, Annual Benefits 135,641 135.862 136,000 154.743 154.895 155.034 155.220 153,395 193,319 193,512 193,715 193.928 194.152 242,353 242,800 243,058 PV of Annual Benefits 123,310 112.283 102,178 105.692 96.177. 87.524 79.653 72,493 81.986 74,607 67,896 6091 56,239 63.872 58.124 52,897 Appraisal every 5 years 1.300 1.500 1.500 Annual eauuactadministration 250 250 250 250 250 250 250 250 250 250 250 250 230 250 250 250 Annual Cons 250 230 250 1.750 250 250 230 250 1,750 250 250 250 250 1.750 250 250 PV of Annual Costs 250 250 250 1.730 250 230 250 250 1.750 250 250 250 250 1.730 230 250 Annual Net Present Value (PV Ben - PV Cost) 123,060 112,033 101.928 103.942 95,927 87.274 79.403 72,243 80.236 74.357 67,646 61341 55,989 62,122 57,874 52.647 w;: E1 Year 21 22 23 24 23 26 27 28 29 30 31 32 33 34 35 36 Lease manes 283,981 283,981 283,981 362,440 362,440 362.440 362, 440 362. 440 462,375 462,575 462.575 462,575 462.575 590,376 390,376 390,376 Property mates 22.053 22.400 22,764 23, 146 23.548 73.9679 24,412 24.877 23.365 25,877 26,415 26,980 27,573 28,196 28,830 2,536 Annual Benefits 306.034 306.381 306.745 385.516 385.988 386.409 386,852 387.316 487,940 488.452 488,990 489,555 490.148 618,572 619,226 619.912 PV of Annual Benefits 41355 37.638 34.257 39,147 33.625 32.422 29.508 26,858 30.759 27.992 25,476 23,187 21.104 24,212 22.035 20,054 rn s's.. Appraisal every 5 years 1.500 1.500 1.300 CO Annual contract administration 250 250 250 250 250 250 250 250 250 230 250 250 250 250 250 250 CO Annual Costs 250 250 250 1750 250 250 250 250 1750 250 250 250 250 1750 250 250 PV of Annual Costs 250 250 250 1,730 250 230 250 250 1.750 250 250 230 250 1,750 250 250 Annual Net Pleae= Value (PV Ben - PV Cost) 41,103 37,388 34,007 37.397 33,375 32,172 29.258 26,608 29.009 27.742 25,226 22.937 20,854 22.462 21.785 19,804 h Taal PV or 2,027.003 • Total PV of Costs 22,000 Total Net Present Value a 2.005 M) Property Value at end of lease 5,898.103 . • • • City of Seward • Harbor Upland Properly - Cots Benefit Analysis -Lease vs Sale Schedule C: Alternative 3: Sale of land to taxable entities Assanrplions: Discount rate 10.00% Sale price as 96 of ICPB assessed value of lr 115.00% • • Property tax mill rate 0.00312 Land fair market value increases per year 5.00% Improvements fair market value increase/ys 5.00% NPV computed in cumin dollars BENEFITS: Year 1 2 3 4 5 6 7 8 9 10 Sale of land 963,470 0 0 0 0 0 0 0 0 - 0 Property taxes 19,720 20,706 21,741 22,828 23,969 25,168 26,426 27,748 29,135 30,592 Annual Benefits 983,190 20,706 21,741 22,828 23,969 25,168 26,426 27,748 29,135 30,592 PV of Annual Benefits 893,809 17,112 16,334 15,592 14,883. 14,207 13,561 12,944 12,356 11,794 COSTS: Total Costs of selling properties 16,000 PV of Annual Costs 16,000 Annual Net Present Value (PV Ben - PV Cost) 877,809 17,112 16,334 15,592 14,883 14,207 13,561 12,944 12,356 11,794 ISF.NEF/TS: , Year 11 12 13 14 15 16 1 7 18 19 20 Property taxes 32,121 33,727 35,414 37,184 39,044 40,996 43,046 45,198 47,458 49,831 oa Annual Benefits 32,121 33,727 35,414 37,184 39,044 40,996 43,046 45,198 47,458 49,831 co PV of Annual Benefits 11,258 10,747 10,258 9,792 9,347 8,922 8,516 8,129 7,760 7,407 COSTS: 11 12 13 14 15 16 17 18 19 20 Total Costs 0 0 0 0 0 0 0 0 0 0 PV of Annual Costs • 0 0 0 0 0 0 0 0 U 0 Annual Net Present Value (PV Ben - PV Cost) 11,258 10,747 10,258 9,792 9,347 8,922 8,516 8,129 7,760 7,407 Present Value of Total Benefits 1,114,728 Present Value of Total Costs 16,000 Total Net Present Value S1.098,728 City of Seward - Harbor Upland Property - Cost Benefit Analysis -Lease vs Sale • Schedule 1: Projected Property Tax Revenues for Harbor Leased Parcels East of 4th Avenue Scenario - L.and continues to be leased. not sold Yar KPB Aerrd Ve6r 1 Yw Yw Yw Yw Yw Yw Yw Year Yw Yw Yw KPBTa Lama Prawn lad I.srorac l Taul1 600312 2 3 4 5 6 7 1 9 IQ 11 12 14731011 Mark Gana - PraMria.. 1 a62 129.300 401,700 731,003 2,290 2,310 1331 2.354 2,317 2,402 2.427 2.431 2,483 2,512 2,544 2.377 14731021 On Erripeirs - reae.11 86r 1444444. 143.100 4142100 631.300 1.970 1.992 2.016 2.041 2.067 2.093 2.124 2,154 2.116 2.219 2,234 2.291 14731006 Clair 916C. Lela Madam, La 6. 21011 31,600 85.100 117,400 366 371 376 382 388 394 400 406 413 421 428 436 14731009 5. 141e1abrp SiM66Meelaa, Let 7.8l11 101.900 141,000 249,900 710 197 115 133 133 174 195 918 912 961 993 1.011 14731012114310413 1. Pn6aAlwIOr 0414.2440 A. 81k 1 Nord 126.200 761.100 887.600 2,769 2.719 2,110 2232 2254 2.878 2.904 2.930 2,958 2.161 3,011 3.050 14731010 Da a L4u. 9r6rw9344.. 3.49: 59 29,100 271.900 301.700 911 946 951 936 961 967 973 979 996 993 3.000 1.007 14731019 Dodd A Vi Ian •14.4a.. Lot SA 29,900 71.900 101.700 311 322 327 332 337 343 349 335 362 369 376 383 14731017 has 141.1alrp - Plarlea. far 3A 9a 216.800 2,422.100 2.610600 8.207 6,335 9.374 14414 1,457 9,302 1.549 1.599 1,651 6,705 1.763 8.823 Aural Properly 1 837,800 4.945.400 1634.100 11.641 17.162 11.000 11,144 11.295 18,454 11.621 19.796 31,990 19.173 19.373 19.388 Yw Yw Yw Yeas Yw Yw Veer Yw Yea Yew Year Yw Year Yew Yea. 13 14 15 16 17 It 19 20 21 22 23 24 25 26 27 2611 2,647 2,685 2.725 1767 2,111 2.158 2.906 2.957 1011 3.061 3,126 3.188 3.233 3.321 2.330 2.371 2,413 2.451 2.505 2355 2.606 2,661 2.711 2.771 2.941 1907 1977 3,050 3.127 445 454 463 473 483 494 503 317 529 542 556 571 596 602 611 1,050 1.011 1,113 1.146 1.112 1.219 3,258 1291 1341. 1.387 1,434 1,414 1.536 1.390 11411 3.083 1119 3.156 3.195 3.236 3,279 3.324 1372 3.422 3.474 3.529 3.587 3.646 3.711 3.771 1.015 3,024 1.032 3,043 1.051 1.061 1.077 1093 1,093 1,107 1.110 3,334 1.146 1163 1.179 391 400 401 416 427 437 446 459 471 4531 496 510 524 539 535 8216 9.932 9,022 9993 9372 9.233 9237 9,426 9.519 9.617 9,720 9.129 9.942 10.061 10.116 19.112 20.047 20,293 20,552 20824 21.109 21.401 21,723 22.033 22.400 22.764 21146 23.541 23.969 24.412 Yw Yw Yew Yw Yw Yea Yw Yw Yew Year Yew Yw Yw LAW vibe Lied vase 21 29 30 31 32 33 34 35 36 37 31 39 40 Ver 20 r yew 40 3,393 3.461 3.547 3,630 3.717 3109 3.905 4,006 4,112 4,223 4.340 4.463 4.591 113 .071 ' 910.211 3.207 3.292 3.310 3,474 3.571 3.674 3.712 3295 4,014 4,139 4270 4,406 4.552 394293 3.023.302 636 654 614 694 715 737 761 716 112 139 867 997 929 93.944 222.464 1201 1,772 1,838 1,908 1,982 2,059 2,140 2,225 1314 2.409 2.506 2,610 2,718 288.944 766.655 1941 3,922 3.999 4.090 4,166 4.235 4,349 4,44* 4.522 4.661 4,773 4.995 5.023 335.642 990.359 1.195 1213 1,231 1.250 1270 1,291 1,314 1 .337 1.361 1,317 1414 1,442 1,472 19.069 200.792 311 389 407 626 616 667 690 713 737 763 790 818 146 71.068 209.792 O 10.317 10.455 10.600 10.752 10,912 11060 11,256 11.440 11,634 11,831 12.032 12.271 12,313 621301 1667069 24.177 23.363 15.177 26.415 26.910 11573 21.196 29,050 29.536 30.257 31.014 33.909 32.6431 2.222.933 3.991103 45941a1109/16 Valor of Property Vass arid Prewar Taw Properly Tu lever. Ant pm 20 8301.262 Rup. as ail me 0.00312 Tow napery Taa Ramie der year 40 51.210.123 59 are. lama a wrM valea of lad Vsl4e of Proprly afar yew 20 52.222,933 Noaass' Mows V urwd vela allawaseseis VaraofPreemie a9r year 40 55 • City of Seward - Harbor Upland Properly - Cost Benefit Analysis -Lease vs Sale • Schedule 2: Projected Property Tax Revenues for Harbor Leased Parcels East of 4th Avenue Scenario: Lund is sold rather than leased Mmes.++. Valve of KPB Valve of Year Year yew yew year Yaw Year year Yaw Year Yaw Yew Kra Too 3 Lwow Pra.eY lard loorovewawt Tumble _ 1 2 3 4 3 6 7 8 9 10 11 12 14731018 14.r3 deem- PraMarlue, Lao 1 ad 2 234000 604.700 334.700 1667 2100 2.940 3.017 • 3.243 3.400 3,374 3,732 3.940 4,137 4,344 4.361 14731021 Ora Eaterprlaer . ParSsdl Bar Nrbw. 223.000 406.200 711.200 2,219 2.330 2.446 2.369 2.697 2.832 2.974 3.122 3.278 1442 3.614 3.793 amain (links B.M. C WIaMedea bat 4 316 1 100.000 15900 183.100 30 609 679 671 705 740 777 616 636 1199 944 991 14731009 1. Mide66s6e BekleMalaa.L66 7. B1k 1 173.000 141,000 316.000 986 1.035 1.017 1141 1.191 1250 1321 1.317 1.457 1.529 1906 1916 14731012/14510413 1.PnWMd6a Cantor A. BB l Nod 223,000 761200 986,100 3.077 3.230 3.392 3.362 3.740 3.927 4123 4,329 4,546 4173 3,012 3,262 14731020 putt Uwe Berddwar La1. 3B 50.001 271,900 321.940 1,004 1.035 1.101 1263 1221 1282 1.346 1.413 1.464 ' 1.330 1.636 1,718 14731019 Maid l 1/ da law 6 .4 , 1.40 : SA 30.000 71,900 121,900 380 399 419 440 462 483 310 373 362 390 620 650 14731017 lark Weda6a3I- PMrlrq L66 3A Blk 400,000 2,422,100 2122.500 6,107 9.247 9.710 14193 10.703 11240 11101 12.393 13,012 13.663 14.346 15.063 ApdMI Property 1 3t.V9ale: 1,473,00000 4145.40000 19.720 30.706 21.741 22121 23,969 25.366 26.426 2174 21,133 30392 32,121 33,727 Yew Yew Yaw Year Yew Yer Year Year Yea yew yew yaw Yea Yew Yaw 15 14 15 16 _ 17 _ 13 19 20 21 22 23 24 25 26 27 4.789 5.028 3.210 5,344 5.121 6.112 4411 6.739 7.075 7,429 7.101 1,191 - 0.600 9.030 9.432 3,915 4,184 4,393 4,613 4,844 5.016 5340 3.607 5.11 6.182 6.491 6116 7,156 7,514 7.890 1941 1.093 1,148 1203 1,363 1.329 1.395 1,467 1.331 1.613 1.696 1.781 1.870 1.963 2.061 1.771 1139 1.652 two 2,132 2.260 2,373 2,491 2.616 2.747 2 1001 3,160 3,339 3,509 3.525 5,003 6.092 6.396 6.716 7.032 7,404 7.774 8,163 837/ 9,100 9.430 9.922 10,419 10,939 1.104 1.14 3.9099 21180 2.192 2.302 2917 2,530 2.663 2.798 2.938 31703 3239 3.401 3,573 453 717 733 791 330 372 915 961 1.009 1.060 1.113 1,166 1.227 121 1352 13.116 16107 17.433 10,309 19225 20,186 21.193 22.233 23340 24.336 23.763 27.051 29,404 19124 31,115 35.414 37984 39.044 40,996 43,046 45,191 47938 49.131 32.322 54.938 37,613 40,369 63391 66,778 74117 Value WWII& Wire alined ! Yea Year Yew Yaw Yaw Yew Yew Yew Year Yeas Yew Yet Yew 109040,44044 hpau.aau a 29 30 31 32 33 34 33 36 37 31 39 40 at raw 20 es war 40 9.936 14454 10.976 11.325 12.101 11706 13.342 14.009 14.709 15.443 36.217 17,028 17.179 2.267,773.35 6.017.07933 3284 5.699 9.133 9.390 10,070 10,373 11,102 11.637 12.240 12.152 13,494 14,169 14,977 1317,023.33 5110613917 2.164 2.272 2.316 2.303 2.631 2,762 2.900 3.03 3.198 3.357 1325 1702 3187 492,1171 1301109.90 3.681 1865 4.051 4.261 4474 4.691 4.933 3.179 3.433 3210 3.996 6296 6110 038.44207 2.124,63663 11916 12.061 12964 13.297 13.962 14,660 15393 • 16.163 16971 17119 11710 19.646 20,625 291691617 6941132.17 1730 3.937 4.134 4361 4.358 4,786 5.025 5.276 5,340 3117 6(01 6,413 6,734 834,09633 2261172.37 1,420 1.491 (.365 1,644 1.726 1.112 1103 1.991 2.098 2203 2.313 2.429 2,330 32343699 /3/97442 32,101 34,323 34231 31061 31967 41163 44.064 44267 41,30 51.009 33.560 36.238 39,050 7.439.723.76 19172.410.14 73,622 77.304 81.169 85.227 19,91 93.963 98.661 303.391 101774 114.233 119.923 123.919 132.2131 16.769.902/2 44.495,544.66 A9arw eradt Ve a of hv,attird:9: ad Prowls Tout Pagaty Tax pewee den yaw 20 562,108 /reprry 0.00312 Twal Pi tyTaxRevereWm 3,423128 Land Gtr ~kw vales Iara.a par 5.00% wise of lad 4lo mweaew afar yaw 20816,769,903 loiavawwll va* reed Imam 5.00%, VsJ. .fl.d 6 Waw.wru.lar war 40844.491545 City of Seward - Nasbor Upland Properly - Cost Benefit Atullysis -Lease vs Sae • 5 at:§Ir:lii' +e 111111 1M14.1461.1A15P40411 -• Site SbulSbapa 24 ,E SF / irregular Subject Property Data, Analysis, & Valuation: Pared 1 -17 ed= Water Frontages Nave • Site Aec alStsaet Improvements. South Harbor Snot sad Fourth Lessee: MabAClanem Avenue with ans. pates, Property Avenue and sidewalks. 20-foot Ideatlntiw Subfuse= Na applante paved walkway non& side Lease No: 61.09 Midas: Localism: 1301 and 1303 Fourth Avenue, Sawed Aiello' Public Water: City of Seward Legal Desertptoa: Lot IA, Block 1, Marina Subdivision Pablk Sewer. City of Seward Cornet Uses Bay Trader Spotting Gads end Barham Electricity: Seward Public Wades Sam . T.1 p►ana OlMAlaska T•pep'apby; Level and at strut peels Fasesea U and Rslrk*snk Scoot sews mane* bisects .0010 poetics (are attached agreaowa) K i- r { r ' Other ratans Caw • _ • a Zeiap Barba Commercial (AL) Subject Proper t' �/ r +a • Perkily ti0ee tynired PbNepapb _ �- + r �, . f illl ' . 4' •s AusaerNe 14741041 __..;;ra. rani= "x "" -« _ Araomr Das 1999 Mm Rata 1122 c - Aussseat History: Data Aprl 15, 2000 Take. By: 1114 Vc.ar 2000 1990 1994 1n'P�"s Data Darr »d btarcb 11, 2000 Jared Valet 5152,911• 511,4111• NIA laepeaed By: Steve MaeSwaia lepr+vset Vale ARM, inuit NIA Repraestat)va Lemma contacted appraiser' by telephone Teed Valet 5797,611 5435200 NIA • Meow amble kambeld intros t>b Sewed 00411 Ha Co dSerrN0aM1 SOS reSw ik Al ► i1N ,i$*sia +ociaieil The demand for land rem the Small Boat Harbor a Wong with a Land Vale Bad on the encoding d10c on and mating the mama Hlgiesc sad Bet Use limited supply of lard available. 0s the does side, d.maod a Cou.Jrriea vs Autumns, die .met mit value for the subject a N A Ll y ab arsenal which would make it difficult to anon a sip lSant inane estimated in the 310.00 a/ 511.00 pa aquae foot sage. Ibis Vassal is supply. Market arlysa of the existing and contemplated lad ms develops: fmMa suggests the highest and best are of the subject would to 24,523 SF x1 gOtBR 5210.025 marine c mmewial. 24,025 SF at 511.00/S1 - 5264,273 From to market data diesmend in Chapter 5, tre have selected the Land Value 5250, (Rd) Marled Anayria and fallow comrades an being the but data available. Properly Wears Tehie (Coapmdfa Ceepad Pared 1-11 No Location Sale Date Sale Prim Size (SF) Price/SF I SEC of Fourth Avenue and 7/94 5105 000 9.000 51167 Adams Street t aide ofThied Avast 9/93 525 00 3,000 11133 NWC of Third Avenue and 9/93 551.000 9,000 59.00 Washington Steed Wct side of Foustb Avenue 9197 595,OOg0 6000 513.03 Wst 1/97 Si70000m 9,000 31150 Est aide of MTh Avenue 3/911 574,500 9,000 5225 • (1) kaiaks St0,000ofdemolition (2) unlade. 566300 of improvement vale The sompnablr listed above involve ske sales in or near dosages/it Comparative Lad Seward Further. sacs comparable is maed CBD which is similar is Value Asmtysle the subject's HC zoning, As an be semi, than sales yields range of 51.211 to 515.12 pa square foot. Eoeriing Comparable No. 4, the range is tighter at 5521 to 511.67 per square fool Used on the upward ptmsae on oommetaaI lad vales In Seward, it is our opinion the subject's value would be neer the upper end of this range. 42 Schedule 3: Projected Lease Revenues for Harbor Leased Parcels East of 4th Avenue Scenario: Land continues to be leased, not sold Initial Annual Year Year Year Year Year Year Year Year Year Year Year . Year lessee Lease 1 2 3 4 5 6 7 8 9 10 11 12 Mack Clouds - Pavel 1 -17 20,000 20.000 20.000 20. 000 23, 152 23. 152 23, 152 23, 152 23,132 29.549 29,549 29,549 29.549 Om Enwpises - Pawl 1 -21 18,000 18.000 18900 18.000 20, 837 20. 837 20, 837 20, 837 20 ,837 26,594 26.594 26,594 26.594 Cosies Bald/C. L.itkaia. Parcel 1 -19 8,000 8,000 8,000 8,000 9.261 9,261 9.261 9.261 9.261 11,820 11,820 11.820 11,820 1. Mindenberp Sublet - Parcel 1 -20 14,000 14,000 14,000 14,000 16,207 16.207 16.207 16.207 16,207 20,684 20,684 20,684 20984 J. PhuitUHirbor Gateway lac. - Parcel 1.22 18,000 181300 18,000 18.000 20. 837 20 .837 20.837 20.837 20,837 26,594 26,594 26,594 26.594 Dot d Lbw Bardinan - Parcel 1 -23 4.000 4.000 4.000 4.000 4.631 4.631 4.631 4.631. 4,631 5.910 5,910 5,910 5.910 Daniel it Linda Lola - Parcel 1 -24 4,000 4,000 4,000 4.000 4,631 4.631 4.631 4.631 4,631 5,910 5,910 5,910 5.910 lwis Mhudeo erp - Puce! 1 -18 32.000 32.000 32.000 321300 37.044 37,044 37.044 37.044 37,044 47,279 47,279 47,279 47.279 Annual Lease Revenue: 118,000 118.000 118,000 136,600 136,600 136.600 136.600 136.600 174.340 174.340 174.340 174,340 Year Year Year Year Year Year Year Year Year Year Year Year Year Year 13 14 15 16 17 18 19 20 21 22 23 24 25 26 29,549 37,713 37.713 37.713 37.713 37,713 48.132 48,132 48.132 41.132 48.132 61.430 61.430 61.430 26,594 33.942 33.942 33.942 33.942 33.942 43.319 43.319 43.319 43,319 43.319 55.287 55,287 55.287 11,820 15.085 15,085 15985 15985 15985 19,253 19,253 19,253 19,253 19,253 24.572 24,572 24,572 20.684 26,399 26.399 26.399 26.399 26.399 33,693 33.693 33.693 33.693 33.693 43,001 43.001 43.001 26.594 33.942 33.942 33,942 33.942 33.942 43.319 43.319 43.319 43.319 43,319 55.287 55.287 55.287 5,910 7.543 7,543 7,543 7.543 7.543 9,626 9.626 9,626 9.626 9,626 12,286 12.286 12,216 5.910 7543 7.543 7,543 7.543 7,543 9.626 9.626 9.626 9.626 9.626 12386 12.286 12.286 47,279 60.341 60.341 60.341 60.341 60.341 77.012 77.012 77,012 77,012 77.012 98 289 98.289 98,719 174.340 222.507 222,507 222,507 222.507 222,507 283.981 283.981 283. 981 283. 981 283.981 362.440 362.440 362,440 W Year Yer Year Year Year Year Year Year Yew Year Year Year Year Year 27 28 29 30 31 32 33 34 35 36 37 38 39 40 61.430 61,430 78,403 78,403 78.403 78.403 78.403 100.064 100.064 100.064 100,064 100,064 127,710 127.710 55.287 55.287 70.562 70, 562 10.562 70, 562 70.562 90.057 90.057 90.057 90,057 90.057 114,939 114,939 24,572 24.572 31.361 31,361 31,361 31.361 31,361 40.026 40.026 40.026 40.026 40.026 51.084 51.084 43,001 43,001 54.882 54,882 54182 54. 882 54.882 70.045 70,045 70.045 70,045 70.045 89.397 89,397 55.287 55287 70.562 70,562 70.562 70,562 70.562 90.057 90957 90,057 90.057 90,057 114.939 114939 12,286 12.286 15.681 15,681 15,681 15.681 15.681 20.013 20.013 20.013 20.013 20,013 25.542 2.5.542 12,286 12,216 15,681 15,681 15,681 15.681 15.681 20.013 20.013 20.013 20,013 20.013 25342 25.542 98,289 98,289 125,444 125,444 125,444 125,444 125.444 160.102 160,102 160,102 160,102 160,102 204.335 204.335 362.410 362.440 462.575 462,575 462.575 462.575 462.575 590.376 590.376 590376 590.376 590.376 753.486 753.486 Asmoviarr. ...Mae of Learn 4r1rd f'nvpary Year 1 is 2003 Total !.ere Revenue taro year 20 4,261,508 Lease nue is NI of appraised land value Taal lease Revenue teru Year 40 23.242,915 Leases reappraised every 5 sets beginning 2005 Value or Property afar yew 20 52,222.933 Ltd value Naomi reflected each lease rarewd , Value of Prapat9 after ruse 40 S5 .898.103 Laud fair value increases per yen 5.00%, City of Seward - Harbor Upland Property - Cost Benefit Analysis -Lease vs Sale • •t te • • PORTION OF SEC. 3, T1S, MW, SEWARD MERIDIAN . 147 -310 , ft . - I /." .._ .._ «... «. .._._.._......._._.. . MARINA ». «.... «.._. _.... «»...» NA SUBDIVISION O C E A N V I E W SUBDIVISION ._.. _.......... «...«..«..NoRT H..- HABB©a. • THIRD AVE . SUBDIVISION • can z I: i. i5 AC. • CB, 1.88 AC. y 0 3A .51 = .....- • -0• PTN.) A • I a . 47'AC . 112' — 1_1g ' - ZQ > 30 .39 AC . 33� ° r 16' gg 's • 0 8 . ® .55 AC a $ (1) En ID 145 o, 6 • � 8 1A 188' ~ • i; i 104 • wo. FOURTH AVE . r .'I I .. 11 i . • r 1 [. 1 i 1 . __...-J ci. [-----1 . 1 _ _______ • , 11 , • • .� • � 0 ..' •••r..• ««. »•.w w.. .Yd1.v....w...t.. ti• ` ..•..._` ..`..!^Nww.w_^.ivYrr... «...•� • . f '' 1..11..ti«i<.L Jl. 1i.. fi. a' i...1.1.Jt..ii...Il.1....O • ,. « . «___.... __......_.._._ «« IL 11 ....It.. ft..li «J.. jj . .. - • DATEi'. �E 199E a. ras:: s7 �: •a _ MS MM Is / A71� 44x7« - ' •• r « �; :.x., • ION KENAI /ff AM A, "nun ark axts Asa 4+ s 4 "'xq. tr MOYGN Aaaaa7pN6 .4. 1. ma A•+ 77' C= s :xx a I. r t ai r ' a . r Ipso KM ANY •c . I • rNSaf uu ow IfErsestNr r {oN a�` 1R E SSC9SOT 8 M w i " .• UM i 1 U lr !/ 0 0 01 ' •• • NOTE — Aasesaoi•f e o clt7rowur,ha.a et....... I I.. ew...... • • tN#attii%iji.Ati116dti' • Subject Property Data, Analyab, & Veinslon: Para) 1-1S SitShe/Shape She/Shape 49,920 SF or 1.15 acrd rectangular Site Dnrripdas Water Frontage: None Lessee: imis Mitdenbetp AeamdSlnet Improvements: South Harbor Street end Fourth Property Sublessee: Not applicable Avenue whir curbs, yarn, Ideati6estlas streetlights and sidewalks. Then is Luau No: 67 036 ale a 20400t paved walkway providing access on the east tide Location: Wert ride of Fourth Avenue in the Small Bout Utilities: Harbor District, Seward, Alaska Legal Deseriptles: Lot 3A, Block 1, Manisa Subdivision Public Wafer City of Sewed Correct Use: Bees loo- RDWaaebtetiiUmdei 1'sbbe Sewn City of Seward Elanridtyt Seward Public Utilities Tolapbons: OTE Alaska TsP.RtPb'= Level and at street vide • Easements and Retrietisnu 20 -foot utility o aemeat bisects lot as smell triangular eammem (450 SF) �, • r.• : ,; : -`: Other Features: Comer lot Frontage, no but access .'• : ' • • .• ct n Pooh Avenue. Subject Properly ' � m • P Harbor ComaeL► (HC) KrsPk r- ; — aJ� ` _ Parklav None toadied 1 24: s � i 1� it.---414:4•L f ; 'y- � a - f 3'4 ,� _ Aasaucr 117 -31x17 • AsseremmtDab 1999 Mill Rats 11.22 Ameatuoralt Moor Dater April 15,2000 Takao By SDd Date V Lar 21E9 1999 19911 D Inspection Data Inspected: March 14, 2000 Land Value 5252,200. 5209,00• $309,1100• impacted By Sire hi,:Swaie Representative No response Improvement Valise so ILIU 31.195300 Total Value 12,675,000 11.707,300 S1,707,300 'Deans taxable fsseboW inaea Ott of Swami 00401 1aa tom' al Seward 06Nr II • r ( i- iiisw;a 1 iQi'Ytet' . z II Lead Valve Buell on the pweede& dim a r%sad a eompleoe 'elm ath orbs - o .( ill o • ep Cendi den temperable, the make value of the appraised lard la ertirreeard b ¢ W v t be St.00 per squue foot This develops: a _0® i 19.9311 Sr at 33.00(117 1399,360 1.4 i Li j N. HARBOR sr. I I - �� il Land Vallee © s 5100,000 (Rd) in ® ii • t9, • < ° � ' o Li H A vl H H ^, CD 4k • m t s 100 < 1 11 h Q o ® ) = n ig CC Z i" w t , ¢ ILIi H -,t m "t P ® ` -• t` j ° r S. HARBOR S I ' / x ) . ,.. i ' s 1 z F 1 w O g Ltu CD e to -a . N ii > - ff..,1 z 45 j� t • • I ! U n OF • SEC. 3, T1S, Rita, SEWARD MERIDIAN • • • 147 -310 PORTION • t • «r. `.. 33t M ARINA SUBDIVISION • ...www w . . w....._.. w«... ........... .................. _. «: ..... ww.w...w ...._w._....ww w -NORTH HARBOR OCEANVIEW SUBDIVISION THIRD AVE. SUBDIVISION z 01 51 AC tr8: N.1 A • t C • _ " 3A �Z 9 AC / g1 1 A . 47 AC . 112' j - k % - 116' ®� g aril, .55 AC o ( 1 ) � u ' • i ii i i 429 N •4 --+1+ • 104 . VOW q • ., 1 f FOUR T AVE . 1- .... .. ............................... ...... i ...,___... 01 ........ ....... ........... \ , 1 i „ 1 1 .... I/ 1 r. . . w. [.1 •' • �' :; , ttttw•+••'•+s:: , :: rr rnrrrx ..............�— ,•wM.++r"^r... ' \ 1 . « «.. ..r «.. • r S=M•.N..w .rrrNnrprrY.. ••j:fr.N•....•.MI.y ..lNINwM'.' i it 1 11.x.... ..:3 , � I fi ..... .. w... �.: .1 t MP MAP la rues imu:.. �,,.• ✓'� -�• „ ..•.r «. { ' t j con R (NA1 mean t r, �. .r...w«•... �• s :: r:.t .Epla ONLY SA u6�OI 11::ssss sssaa < : MiENDEO f0� ANY 1 f IP! ? DE l990 t . . ITE 1,�N w � �a w ,i•• .. df �' .n,_.,. attaZIMEM +(VJseSwii Aiioeiajes1 • Subject Property Data, Analysis, & Valuation: Parcel 1-20 Site S&&Sb■pe 22,203 SF /eloopted Sits Description Water Frontage None Lessee kris Mrrd:obrp Amen/Street 1 prove s's* Fourth Avenue and Noah Harbor P r o perty Sebleasee Nor applicable with sheet lights Identification Lease No: 04-037 UtiBtlas: Lsntisa: 303 North arbor Street. Seward, Maths PuDlie Water City of Seward Legal Description: Lot 7, Block 1. Marina Subdivides Public Sewer City of Sewed Electricit Current Use Comcnacial Budding- Breeze lm parking y: Seward Public Utilities Telephone GTE Alsaki Topography: Level and at street grade y,; t a '' F i ' t ' , LaHabitats': r end Habitats': 20 -foot utility an east side v 1 Jr: , ar t } '-'. r t : r - , •-'s; ; •, ..x . ;3%4 : ' ,. tit'- Other restores: Comas lot. Sewed )Eghwny frontage n . Zoniop arbor Commreial 01C) . • t Perkier None squired r Subject Properly •- s � ' 7 ----- • teRapb t - . , i AasasnsrNr 147 -3!0-09 P� r- ! Asseamest Dais inn lwiu Rate 11.22 y AuesvaW Hilary: n.. ^'° l«s "°"�s. i tar 20011 1999 1998 Date: April 13, 2000 Takla By: SIM Land Vallee 5122,!11• 581,200• 331 ,2010 Inspection Dan Dar Inspected: Meech 14, 2000 Improvement Vales WWI 3133.10• 5133.100 7o4.1 Valve 324,900 5214,411 5214,401 Inspected By: Steve MeeSweu • Demotes Iwble Wrbold irwt Repraeeative: No Tearoom cast ewdmisr 137 oh'esewdoart 1e ,MiI' _ i114itCSir4Ts'?ksdeiataI Highest and Bert the The dented for land sea the Small Hoot Harbor 6 strong with • (HASH) Lsmted supply of lad available On the dawn sick, deemed is Lead Vabe comparative on the p•neediq theme= fad =king 0n moeasry Vacant a aessmal which would make it d(f6wh to absorb a significant )ocincrease Consltnisn nntisered m the 57.00 t�dFtmnmta current unit foot ms for the develops: of is ate*. Market analysis of the existing end contemplated land uses per square foot rangR This develops: fetter stows the higher and tent use of the subject would be 22,205 37 at 37.005P w 5155,435 mrineeomaeeial. 22,201 SF at S11.00/SY w 5177,440 Land Value 5175,055 (Rd) MartuaAnalysh end From the market data discussed in Chapter 3, we have selected One Property yaieutba following camp ables as bang the her dap available. Table ofCenpreilr Crapes!& Prod.14* No Location Sale Date Sale Price Sire (SF) Price /SF SEC of Fourth Avemr and 719/ 5105.000 9,000 SI167 Adams Street West aide of Third Avenue 9/95 525.000 3,000 3033 501.000 9,000 59.00 NWC of Tbad Avenue rd 9/95 Waahiapoe Street Weal Bide e of Fourth Avenue 9/97 $95,000eo 6,000 31513 Wet side of Fitch Avenue 1/97 3170,000ra 9,000 511.50 Earn side of Fifth Avenue 5/93 574,500 9,000 50.28 (1) Iodides 510,000 ofdernoiido. (2) Iodides S66,500 ofbeproveeeset valor Comparative Load The comparables listed above involve nix mks in or nee downtown Vane Anal 0 Seward. Further, each comparable is Zoned CBD which is similar to the subject's NC coning. As an be seen, these asks yield a range of 50.20 to S15.82 pr Rum foot. Excluding Comparable No. 4, the range is tighter st 51.20 CO S11.67 per square foot. Due to the smbjaet's elongated shape, it le our opinion the current unit value would be at the low red of the range 47 .. , • . . .. .... • . .. ( . . ........ ... • • . . . . PORTION OF SEC. 3, T1S, R1W, SEWARD MERIDIAN • • 147-310 iiiiw r / , ....... ! ,.././ • 1 . J ...... ..... .. ......... .. ....... ............. ....... ...... ....... . ......... ...... ....... _ MARINA SUBDIVISION ..... ..._.._._.._....__._._ . . •• OCEANVIEW SUBDIVISION ............. ~NORTH ..... HARBOR— THIRD AVE. SUBDIVISION 1 .............................. U) 1.15 AC. 1 * - . f 1.88 AC. 47 AC . 1 7. ' e 3A .51 = ; - to • k 0 ) (al . 33 v.;.7 112 • 6 I -2 -° 3 43 39 AC a) c-12) P A ................. - ......" / i 16' 0 ® 0 33-4 .t. I: t ® ' co e c2). 04 ,- . 33 0 ---- CWIP u) ' .55 AC.1/0 5 ( 1) 6 o k) V co 145 -4 ' IMP 104 --- 0 i 7-..-..' s ■ t;z1..........,_ . FOURTH AVE . .1 • / . • i friti 1 ‘ c l . I I. 7 , , , li , 1 \ . , , , 1 .... .7 r 1 1 1 1.......1.--i...../.„...1. .....1... 1 i i ' i II I s s i i — i ! 1 i—...— _..... .1............ _ I 1 i 1 i ........ 1 .... ,.... 1 . .. ....... i ........ - ... - .::::.-2 , •••"! ...... —"—""::: - 1 ...::::.....—........ ......... ,,„„„„. .. ..... i • v..... ... ......, j. . ,..,... ..... ,......„—..—.....: - • - -- — ..... ' .1 • i 1 ... 1 . • : ..-•:0- i i ..1.1..11...H..11.1..11..L.1 . . . ....-- .... .I t..11.11.1 11 11 111.1.1.1.11.2..11..iii1.1.1.0 P n alai • . . .. ....... i 1 l . i 11413 MAI IS POVARFAI 1 , DATtr... 1E () 1996 f°' i . - - - L ...: [.. *a= Cilia Jan* 4,1 rIZIA I FON KENAI 1 1 1 1 11,r 9 6-M* I MM I • 1. [VIM ......3 CUM .:41.71', %"1.4%•.. •••%•,41 • I * * * ?4,....111.0ROUGM ASSESS*: OE I RI .:v...., M SIAM Cr-- i 2 I .1 i . 107:10'7N ANY 14fi ,. ..:...• . 11 e i • 4 I 1 r 4 [ 1.4..(itH" usl " "M iggl I (9: 4." 10 Assessor's r .. -• -•,..- -- l it I " —... maw m4=4179ATIATT'unoom 0 1 '1 r • - - " ...4 % .:%., . - - - -E '''''- ie Art MI rhagnignas•l. 11.......... -1- • ■••••..• ........- -___ • rill. • Subject Property Data, Analysis, & Valuation: Parcel 1-21 Site Str.NSbape: 20 ,519 SF /slightly ittegdi Site Description Water Prestige: Nome Loiset: Orta Eremites Aeeen/Stnd Improve: a w FomM Avenue and South /bubo Property Sublessee: Various taunts Street, with em6s, green, wee Identification Ggbh and sidewalks Leos Ns: 6E472 Ub7itler: Location: SWC of Fourth Avenue and South Smell Boat Harbor, rbes Seward, sinker Public Warr City of Sewed Legal Description: Portion of Block 9, Ocsaoview Subdivision Electricity: Sower City of Sewed Corrine Usc Rwil/Rota rant o 7 sewed Public Utilities Tekphsa. GTE Alaska Topography: ad a weft grade Iiaeawr w and Roaistlw: 10-foot public utility aneroid vies aid south sides and 30-foot niangda easement r ' ' '' : ,,,eal?'JM° - `s�� y. Other Features: Comer lot o '\ Zonings Harbor Ccemmeid (HC) • Subject Property i 4 , ' V _ ., t aslda6 None milked Photograph 3 G 1i1i r — � 11111 I ■ ,,,. - r , _ - ••" AowerNee 147 -3I047 Aceaunent Dar 1999 Hdlg Rant 11.22 ,,,,� ".::,.L.-•;::' -a Assessment History: Date: April 15, 2000 T BF: Slit 1' err nun 1999 l99* Iaspsetlea Data Dar inspected: Mud: 14,2000 Lead Vtkar 1124,301. swop Kam. lsaprwesaent Value 3199.000 jJ.lie!!1 3Jj5 Inspected By: Save MacSwaii Rspreseiative: No response Teed Value 5323,300 5179,700 5179,100 • Denotes tumble kaahoid auaet city et Snow 00410 121 ay e/9w,wd 0040 fix eWFj1:A.6a0c area MtElnr.t2r3 Lend Value Based on the receding discussion and making the neoenwy fir the subject is and BatUas The demand for lad new the Small Haar Harbor is wars with • a to wn ar6�Iu me current Wt value Gotham estimated is the 510.00 to 511.00 ( N Autoi A. limited supply of land available. On the down side, demand is per q toot tangs This Vacant seasonal which would make it difficult r absorb a significant hu:rease mss ' in supply. Market analysis of the existing are eoatempleted land ores hotter suggests the highest and best nee of tie subject would le 20'x! u S10.0a marine mmmfteial. 10,38 SF at 511.00IS7 .• 1226,173 Lead Value 5225,000 (br) Market Analysis and From the market data dlecuned in Chapter 1, we have selected the Property Valiado. folio es as being the bas der available. Able easperablaCiapnmd aslarmd l,lf No Location Sale Da lc Salo Price Size(SF) Prins /SF SEC of Foath Avenue ad 7/94 9105,000 9,000 311.67 Aden Straw West side of Third Avenue 9/95 325,000 3,000 51.33 NWC of Third Avama and 9/95 311,000 9,000 19.00 ' Washington Street Wert side of Fourth Avenue 9197 595,0000p 6,000 315.13 West side ofFdthAvenue 1/97 S170000to 9,000 511.50 Esc side of Fifth Avenue 5/98 574,500 9,000 512E (1) Includes 110,000 alienation (2) Iodides 566,500 of iaprovapai *alto Comparative Laud The comparables listed above involve six sales in or rear dowatovs: Valise Analysis Seward Further, each comparable is awed CND which is similar to the subject's HC aoaing. As can be sew. 1110e sale yield a rate of 59.21 to 515.12 per square foot. Excluding Comparable No. 1, the range L tighter at 38.28 w 511.67 per aquae toot. Based on the [upward pressure on commercial lard vales In Seward, it is our opinion the subject's value would be sear the upper end of this range. 49 ._ y li • - • PORTION OF SEC. 3, T1S, R1W, SEWARD MERIDIAN • 147 -310 .../ .. . ... «._ «.. « «. « «... «.....«.. « « «•.•.«. M ARINA S U B D I V I S I O.N OCEANVIEW SUBDIVISION NORTH••- ••H THIRD AVE. SUBDIVISION 1.15 AC. o 1.88 AC. (8) 3A . 51 C 0 . 47 AC . ll2' _' g ZO P 39 AC ID Co 0 e r 116' a e m • m � V • • o • • 1 — ZI En ' . 55 AC . ® O ( 1) 4) 5 N 145 : ! A ::' :� i 104 FOURTH AVE . 1-7.- 1111110.i• ,S -- • �... .. i . ... «........ «. «. r , 1 •1 : I � �' ••`' �f, r%• r� _ Lt - • 11 � ii • � ..�.. • •� [ :1 1 t... .11.. . 1..i1..3�..'t s ...... nts n « «« C .. _ --no N • . IM= MAP 1= A_ : - : anus•+ � r:-::a • .4.4•41,4.4...... NNi m:+ �. "" �t� -��i' i. SSW 4,„::: f , 0R000N A3 I7EA3*N O ta ==n =tarts etu ( r. ttEE ONLY ANDSU: rst::+ OE ETE A. • •: ' yO c«. .:3 WARM sr•• r • 4 t ,, IN(lNOEO 1011 ANY tit 10 tt s atm :Ws , . sum .ru lOCRARYIRR 4 •. • ,..;a % { i . r _ . OINER V!E OR REMESENs T , r 'r .11 " . • .. ssesso 16t « «... 181911 MARaQ* u. k:a . t : ; ., �� :... i ; •::.. ! l°N.:=n � . 1. • • • . • ' ... ' ( . - • ''... .: .. .. • . . - • . . . • PORTION OF SEC. 3, T1S, R1W, SEWARD MERIDIAN 147-310 - 1 ... ..... 1 ..... 331 , • t 1 • . i I i MARINA SUBDIVISION - '''''''''''''''''''''''''''''' NORTH ''''' HARB OCEANVIEW SUBDIVISION THIRD AVE. • . SUBDIVISION i cri z I 1.15 AC. • • 1 7 ..1..... ( 8) 1 .88 AC . i • › e 3A .51 AC. •-■ e .47 AC. 33 112' 0 —2 • > PTN .) A • al 1 -1 g M7 .39 AC. crt • • 0 o ft ) co ._.. @ • 116' e IV. @ (2 ®,..c..; • 0 u) ID (11V .55 AC .cip " d r ., .T. 1 ( 1 ) ..,..‹) , • .• 0) 6 -.A .., u) ISO 145 • 6Z.?(9 • . . .1 A : : • v., 1 104 ... - / ii 1 1 11 f.-.....--- FOURTH AVE. c 1 1 1 n i 1 i 1 , i . ii 1 1 1 -, , 1 , , t , it i i ,• . , 1 i i i i ,. ,__. _ _...,,,.................., L.__....-.----? *** ------nz.-.3 ***** ***** .........,........... j ..,,.., . .. • ...," ....... ... •::, . il . • - -...... L .11..11 1.1.1.1.1.1..11.11.1.1.1.1.r11.1.1.1.31.1. . 1 r . 1 - : DATi1 DEL l a. 19911 f cm 47.4 c.a.. rana e•.•••3 :::::, aa I Imis MAP ID 2422A 1 i FOR UNA. PEPANSV .',.. • 4 40:: "••:;14.4,......tva r.. On le •• ' T 20 " 1.":"' 1 surn ausa ■CM•SS t::=1 A 4 4 . .. . • 1 1 ' I 0 • 4 '0 : 110110U014 AMONG GO i• za • 1 * *tas: 4, 0 1 f4tv Awbtimstol ):::::::$ DELETE • ' =Wall tr !=5 NA= 1 1 NO20 ton Alor . : c••••••1 :%:::2 412/21$ :147tlocturnsw 1 i omen tat o MI N *fromdtiorr I . to 1 ' Assessor's " tP NOM 110111111,,,. t9Pleens YAM LOTS 1. 7 1 c 1 WOMB 4:... ssessor i I '411%1 NOTE ..- A's i tiro 4 c 4. 1c * ' - -Number a ShowA In Ellipses 1 IA LB = 100' ' Kenai Peninsula Borough • NA:2„r s an 1 n satt4 ASSeiSilea R".....1 M...., -... .... . • „t - (jHre Tjiltiditci to rectenpdar Subject Property Data, Analysis, & Valuation: Parcel 1-23 Site Si►dShapa 4 250 SP / • Site D Water Treeless: None Lessee: Dot and Lime Beldame AceeoStr■N lmpranaee d Fourlb Avenue with cabs, paws, street lights and **ma ks • Property Sublessee: Not applicable Identification Utilities: Lease Not 76.064 Public Wale: City of Sewed Lustiest 1317 Fourth Avenue, Seward, Alaska Public Saner: City of Seward 1.ap1 Description: Scab 12 of Lot 5, Block 1, Marisa E ty Seward Public Utilities Subdivision Cerra” Uset Barda:ioo's Studio - Gift shoplift studio Telephone on Alaska Tepo jnpby: Level and at chop p■de . Eiseman sad kaMetlaas: None noted •.);,,,,';.•, fry 3t .:1--/' • % } ,1 ' i -'- _ Other Features: Private easement provides Kass to 1 � a ;: ,: • f i r Pookap Harbor Commode! ow) e, . Parldttp Nooesmoked Subject Property r a - �1 �, Ammer F I+ m er Nm 147. 310.15 Photograph r. ', vi lisfeill 9, a, i 1 c ,, Asawmat Dad 1999 MW Aa ( 1122 F ` J l •� • � Awuaestilidrm r''' a ° • " L ,, , ,, Star 2090 1949 1955 w �� ` V Si a+ 1.ad Valle 325,350• sups. 33,100- Dam April 15, 2000 Takao or S/14 1laprovesaent Value (}11.244 mug ;awl impends Data Data Impacted: March 14, 2000 Teed Valet 3217,150 5312,200 3312250 leapeeted By: Stave Mar-Swain • Dares toads husked dwelt Representative: Dot Badenaa :espooded by telephone and facsimile ay at Serial 040 rly Car d Swami 00.411: DI ffrfieSviiti:Athibahreil iliTe wn1rAitbtlattl t Uss The deemed for Iced saw the Small Boat Harbor le strong with a Land Vales lltyh nsi ,ad Beat Barad on ,hr preceding channeled and making the asesaary (H li d Base As limited supply of Lod On Ibe down side, demand is Cemeteries compararive sdjoroneon, the wtnnt Unit value for the subject is Wad aeasonel which would make it difficult to absorb a significant in estimated in the 311.00 to 312.00 par some fart nage This In apply. Market salmis of the existing and contemplated land mars dndopa: further =gime the highest and boor use of the subject would be marina roatm. ciaL 4,250 SF at 511.0061 366,750 4,250 SF at 512.50/SF. 551,850 Market Analysis add Flom the minke dad (mussed io Chapter 5, we have selected the land Value 350,050 (Rd) Properly Valuation following comparaMa as being the bat due available. Tolle of Cortpingda C.npardb PbnlH23 No Location Sale D,te Safe Price Size (SF) PriceBF SEC of Fourth Avenue end 7/91 3)05.000 9.000 511.67 Admen Street West side of Third Avenue 9/95 325,000 3,000 51.33 NWC of Third Avenue sad 9/95 f11,000 9000 59.00 Washington Street Adam side of Fourth Aron 9/97 395,000x0 6,000 515.13 West aide of Fifth Avenue 1/97 3170,000os 9,000 $1130 East side of Fifth Avenue 5/96 574,500 9,000 5626 • (I) Clods 310,000 of demdition (2) ladrdes 364,500 of improved/0 value The comparables listed above involve six sales in or now downtown Vane Auelyab Seward. Further, , each oomparabla is zoned CBD which is similar d the subject's HC zaniog. As can be saes, these mks yield a range of 3126 to 315.12 pa square foot. Buluding Comparable No. 4, dm rage L tighter at S121 m 311.67 per mum foot Based on the upward pressure on (ornameal land values in Sawmd, it is our opinion Ibt aukyst's value would be nor the upper end of this tinge. 52 . . . t • . • . ( -..,...,-,.. • . ...• . ... • . • . • . • . . PORTION OF SEC. 3, T1S, R1W, SEWARD MERIDIAN 147-310 I " 1 ......... 1 I ... . ..., MARINA SUBDIVISION . ....... OCEANVIEW SUBDIVISION THIRD AVE. • NORTH--4-1-ARBOR—. SUBDIVISION U3 Z 1,15 AC. (71 • . ( 1.88 AC. . 47 AC. 2 112' 0 3A .51 2 PTN.1 A ................. ® 14.3 CO 1-kg . C -'2-0 . 7 " 33 39 AC. SD 0_, 1Z Juiz cit (1) AVE . . 0 FOUR '' '' ''' • u 1A ::' -.. . • Witrii • ; i 10...4.... ...... -........... TH (MIA X — ( • II\ . . \\ , 1 ., 1 • 1 , 1 i II i . . 1 I ii..........e..i....1......f....7,..... ..... II: ''' ... '''''''''' . • li .1 , \I II i rl 11 II 1 z . •R I ........'*•.. .--':::' I ILI .11.. i 1.....:.... ''''' ... .- .. -11-11-11-11-1.k. 111 ... - ...:.... '' :.....:... .. :...: ............. 3 ILI .... . A..fi..1. CI 11..1 ......... ::......---..1 ....... ''...... 1 Ism MAP IS PRItAttal 1 .... mo DoNTE1'...1) 199S r L ". 1111 2A :::::3 tilittg. .:::::: \ 1,....... . 1.'?:AOCCIV:trAiVilITIN"rDiAl 1. fref613rffir5 44 arint ...... {VII" ..... . ... 4•4v...‘ 1 .. •'4.131 ONLY ANDew. Iss:sun O&M ti • ...: 4114166 1 V.V. V.:$ • Assessor's " - 4:41 .... 1 ottlt,...n.,„c,Alimn",,,,` : Me. t porm ...zic..4twie: gum urn uns 1. 71 II mu I Aram 4:.- 1 I ..........' . NOTE - nuessors'Block -NumberS Shown In Ellipses - --I-- . • stout% XMAS LOTS s. 4 k i stack s prism ,Assessnet D....._. .• . - — - — . - • nnet 1 MOONS ■ del: 1fi'ti�ti5 /651 Ai iegl SM. Slsa&Skape . 4,250 SF / reetengulsr Subject Property Data, Analysis, & Valuation: Parcel 1-24 • Site Dnawtpttea Water Presage Nana • Lasser Danlel E. and Linda S. Lore Aaas/Snad l.pr.vana5t Fourth Memo with nubs, gott% street lights and sidewalks Property Sublessee: Not applicable Mies: Identitorion Lase Nei 71-063 Public Water: City of Seward Lecatime 1319 Fourth Avenue, Sewall, Alaska Publie Sewer. City of Sawed Legal Daeriptie : No t4, 1/21 of 5, Block 1, Marina Subdivision )°2.esridgn Seward Public Utilities Current Use Home of Diamond Willow - (Bit atop Telephone: GTE Alaska Topography: Level and at street grade s z r . ; t - Inseam :Ws and Ratrictlaan Nose noted ' Other Vaarm: Privets easement provides access 10 4,T < !4 ' 'r' " • /oar Unbar Commends/ (HC) • ';, ` 1'arbiag Nacre oohed Subject Property SCULIMO° M Photograph 1 v t Ammo Nee 147 - 310-16 - tau _ lin=k , A+asaatDw 1919 Mill Rat.: 11.22 sees 7 ` � — ' - t .,s -- - r = '-. Aroansmeet Mawr V._ar 10011 1999 14if ',I., -. sees . s:• . sees 60050010. Data: April 15, 2000 Takes By SIM Lead Valise 526,500' 326,500' 325,559' Date loomed: Much 14, 2000 1•provemaat Was ELM Mal UM lupeese. Data laspeet.d By: Sarre MarSwdn Tabs Vale 590.400 595,700 596,700 • Desoto noble leasehold boo Representative No response fte Soot COW/ 373 earal Soma 004. 171 • 1► s rriilkiiti(ei` � lYftlESirsf "t }yi oe�iii0.� The demand for land nor the Smell Bon Harbor is soma with a Land Vab. Bared on the preceding disesuaim and maim the m.eory 19igh.at e.d Bert lbe °ompsaave adjustments, the dares unit value for the object is fi '''''' A •a b' - A ► s e a s o sappy of tad available. t8 absorb rba side demand is Csad sisa atimatd in the 511.00 to 512.00 per stone foot rang. Ibis Vaeasd ase.sel which would make it difficult to absorb a significant house �� in supply. Madre unpin of the existing and contemplated lced uses Portlier suggest the bight and beat me of the subject would be 4,2511 SF at 111a015F $K,750 maxim wnmewial 4,250 SF at S!2.00SF • 551,000 From the market daft discussed in Chapter 1, we have selected the Lead Value 550,500 (Rd) Markel Aaslyais sad following memorable as being the bat data available. Property Velma*. Tea ofCesgrnn6/a Camps/of wiJim1141 Na Location Sala Date Sale Price Stu (SF) Pr,a9S• I SEC of Farah Avenue end 7/14 5105,000 9,000 511.67 Adana Sneat Wert side of Third Avenue 9195 525,000 3,000 $133 NWC of Third Avenue and 9/95 5111,000 9,000 59.00 Washington Soot Wee aide ofFartb Avenue 9/97 5950003» 6.000 515.53 West side of Fifth Avow 1/97 3170,00000 9,000 511.50 East side of Fifth Avenue 5/90 574,500 9,000 31.28 • (1) woo 310,000 efdaeolitia. (2) hmades $66,500 of iwpto.emwt value Comp ara5ire Lad The ambles listed above invoke sir sales in a mar downam v Yaks Aad" Sonia. Father, each compamblc is zoned CBD which 1a shni1a to tls object's HC zoning. As eon be sea:, thus ales yield a range of 03.28 0. 315.02 per owe foot Excluding Coagulable No. 4, the range is lighter at 332E to 311 .67 per agues Pool. Based on One upward pressure on commercial land values in Seward, M is am opinion the subject's value would be near One upper end of this range. 54 . . . 1 . ......1 .... . . „ • i , . • .. • . . • .......___ . ....... PORTION OF SEC. 3, T1S, R1W, SEWARD MERIDIAN . 147-310 ...., ,......... eti ......................... ... ..... /. . ..- w.: ........... MARINA.SUBDIVISION ......................... • OCEANVIEW SUBDIVISION THIRD AVE . ' ***** ..- **** SUBDIVISION UT — cri tn . Z L (6) . 47 AC . 112' 1.88 AC . m 18 1 8 ,15 AC . ................. . • 8 3A .51 7 AC . = PTN . 116' ) A .): . . e 33 0 03 : 1-1 • @ ..._.•2:0 . > 3:3 . 03 8 - . 0 er _ @ C ® (I' • S ....-- WO (13" .55 AC. g (1) ci Nt- v c, 6 u) .., (18P inlik It. . e IA 188 104 .,. -0. . • latiliSli • ; 1 . . FOURTH AVE . r _______ /--........ . 1 I-2, 1 -k i _______ 0 / r • . t 1 , 1 c . . I H i : • 1 . .... ..... ..... -.....-... .... -....,.......... \ . i 1..11.1....1.0 ................._ i f I 1 1 i i : rt • : t t i S 0 WI I I : 1 1 I • ! t t --...— - . , ......-0 .......41,... .. ..71.11.0..V.W.,............................V1.....mr-.• :,,,,,,u,tal,•,...■•••••••■••.......~.....■.V, ......--- - I i ----- 1....5- • 1 ... .. ...,... I . .0...7 1 il i - 'I 1 4, _ti it tt 11 a . '7" :I- it il II il II 11 ji 1 — - " 1111121.1.1111.1.111.1 S -7- .3 1 1 .'• :4 1M3 MAP 1.1 PREIMami 1 MN r" ." C uaa * "` u ' munt‘ :::::::. Pork x1/4,4 PEMiiii.i i 00.,::::: . • ksotouGH ASIIIMMG 001. Ott ¶Q - .01fITIPS . *" :4". attni I VIM 1 :::* I .41. 1 4, 0 1 NLY D AWIT con sTS471 )nu: 1 ME 4'...... F IU"* __.........w.l: C .1:i DU OA 4 i.,1NEP IIENERNfloN Al auni 1:::::$ Inml rm.:Powwow 0 • :::: Ilt:...., t ...::.. 11%••• 1 1 POKTV NAintra... .0P,MMI:p I... ' •• C 11$•• • .. • ---- • .•,. S. ? 1 c 1 suseco 41-' ."4'...4• NOTE — Assessor's ItioaNurnbers Itletwil Mill. e ii 1tl; .' I1NiA wttit .iisaaitiftia Subject Property Data, Analysis, Br Valuation: Parcel 1 -22 Site Size/Shape 16,414 SF / nG$141y imp* Siva Deuriptbs Water Fraetegm Now Lessee: James T. Pruitt Access/Street Improvements: North Harbor Street, Thin' Arens sod Founts Avenue with Garb Property Subleuee: Various tenants goners, and sidewalb on two streets Idendtlimties and street lights Lease No: 34 -043 Utilities: Location: 1400 Third Avenue end 1401 Routh Avenue, Sewed, Alaska Pmblk Water. , City of Sewed Lqd Dseripti.a: Portion of Trap A, Block 1, North Harbor Pah&e Sewer. City of Seward Subdivision Illestrkiq: Seward Public Utilities Correct Use Convenience Store, rsonaants, retsll. °Moos Telephoner (i'IE Alaska . Topography: Level and at Meet grade ' Easements sad Itostrkti.. 15-foot utility easement though gh cede of peal. 10-foot a6lity • nesemesa co north side Mimed e . f , .: i , Other Futons: Prime comet lot � � t Burlap Harbor Caemiodal(HC) l 4,11 ,Z, a ` ParkYgr None required Subject Property _ t A ; I S ci • �•P'•pb _ " . ` per ¢ r, mw _ li AaMaseeNor 147- 310.12 r Tc v c v r Asammist Data 1999 Mill Ratan 11.22 Asessameat Rhin": ' - - - Y ear 2000 1999 1995 Dom Apnl 15, 2000 Talmo By: SJM Led Vohs 399,200' 367,411' 367,401' LfpMlen tau Dose 1..pestad: March 14, Inprovemewt Value Sumo $67.30B nun Ispeetsd By: Steve MaeSwein Total Value 3901.711 3334,701 3334,711 • Reprmmtativm Lessee's representative eadamed appraiser • Dendee limbic YeretoW :wrest awesome won 1u Oyeramwwdaolar 136 PO SIVOCAiaalttil 1Si let: litbI Highest and Best Use The dammed for lard near the Small Bon Harbor is strong with a Land Value Booed oar the preceding difcmsiem and mold. the mammy ( � As limited supply of lard available. On due down side. demand is C den comparative u mebnmb. the cement unit value for the sullied is emehu Waal seismal wbieb would Hake it difficult to absorb a significant increase estimated is the 113.00 to 314.00 per squat hot imp. This m apply. Market auetyaia of the existing and metemptated land tee develop hither aaggan the bigbed and best me of the subject would he marine oeretaecial. 16,464 SF atS13.SSISP- 3214,292 160114 SF et 514.0(431.3130,776 Market An 'ii. and From the mho dm discussed in ampea 1, we have selected the Lead Value 3226,001 (3d) Property Valuation following comparable Mm es being 9be gr d available. . 7bbte ea/operable: Coward se Pavel 142 No Location Sale Date Salo Price Sue (SF) PricdS I SEC of Fomth Avenm and 7/94 3105,000 9,000 311.67 Adanw Sheer Wear side of Third Avenue 9/93 325,000 3,000 50.33 NWC of Third Avenue and 9/95 311,000 9,000 39.00 Washington Street West aide effete* Avenue 9/97 $95,000to 6,000 315.13 West aide of TA Avenue 1/97 3170,000m 9,000 31130 East side of Fifth Avenue SAS 374,500 9,000 01.211 (I) loss ds 310,000 of demolition (2) includes 366,500 of kaprweoaat velum Coa -.Led The comparable listed above involve sbc sales in or near downtown Value Analysis Seward. Father, ma comparable is sand CBD which is shales. to the subject's HC zoning. As can be seen, than sales yield a range of 5123 to 115.12 per agues foot. Excluding Comparable No 4, the range is tighter at 311.21 to 311.67 per square foot. Due to the subject's pima harbor location, it is our opinion One cement unit value would be new the upper God of the range. 56 City of Seward, Alaska Port and Commerce Advisory Board Minutes January 6, 2010 Volume 3, Page CALL TO ORDER The regular January 6, 2010 meeting of the Seward Port and Commerce Advisory Board was called to order at 1:05 p.m. by Chair Ron Long. PLEDGE OF ALLEGIANCE TO THE FLAG led Ron Long ROLL CALL There were present: Board Member Chair Ron Long presiding, and Dan Oliver Rob Buck Deborah Altermatt Paul Tougas Darryl Schaefermeyer comprising a quorum of the Board Excused: Theresa Butts Absent: Also were present: Kari Anderson, Harbormaster Jim Lewis, Deputy Harbormaster Louis Bencardino, Alaska Rail Road Representative Suzi Towsley PACAB Liaison SPECIAL ORDERS, PRESENTATIONS, AND REPORTS - Administrative Report - Alaska Railroad Representative, Louis Bencardino reported on the following items: • The freight dock had a good year and was looking forward to continued progress in 2010. • The potential for up to $400 thousand to be invested by the Railroad in upgrades to the coal facilities in 2010. • The New Years party was fun for those who chose to attend. • Days for the archery group have been changed from Friday to Tuesday, at their request. • New collectors edition Alaska Railroad commemorative posters had been issued and available at Sea Life Center for sale -would be sent to American Legion, local Native Corporations and for use in other fundraisers or presentations. • There were no fire works for the New Year celebrations due to budget constraints by the group sponsoring the event. Seward Chamber of Commerce Director, Laura Cloward- Was not present 57 wrrr City of Seward, Alaska Port and Commerce Advisory Board Minutes January 6, 2010 Volume, Page Harbormaster Kari Anderson reported on the following items: • The Harbor was working on the North East Development plan for utilities design with URS and would report to PACABs February work session. The Z Float would be linking with this and future upgrades to the fish cleaning stations. • Continued work with the Railroad on dredging project. • Vandals had smashed in the windows of three vehicles and discharged a fire extinguisher on board the Harbors Boston Whaler in late December 2009. Police were investigating the incidents. • Two new employees had been hired in the Harbor. (Elhard and Roy) • Working to get moorage contracts up to date. • The Polar Bear Jump was Saturday January 16, 2010. • December 1 2009 storm surge event- No harbor damage, update given on City HLS meeting. Community Development Director Christy Terry —was not present. Email sent by Ms Terry was read by board. Citizens' comments on any item except those scheduled for public hearing Q- WILLE —Asked where he could find notice of the work sessions? A- LONG — Suggested getting on the City Clerks mailing list and/ or checking the standard public place postings, online, or City laserfische. Comments between present public (Maddox and Bencardino) Remark (Maddox) - Remarked to the board that RBCA had nothing to do with the Railroad lawsuit. Chair Long directed all present to keep their comments and questions directed to the board. Maddox stated that the Alaska Community Action on Toxics and the Alaska Chapter of the Sierra Club had filed suit against the Railroad and Usibelli Coal Mine. After making another comment to Bencradino, Maddox left. Approval of the Agenda and Consent Agenda Motion (Altermatt /Oliver) Approve the Agenda and Consent Agenda Motion Passed Unanimous Consent The following item was approved under the consent agenda: December 2, 2009 PACAB Meeting minutes INFORMATIONAL ITEMS - Clarification of administrative changes and how they affect the budget was requested by Chair Long. UNFINISHED BUSINESS -NONE 58 City of Seward, Alaska Port and Commerce Advisory Board Minutes January 6, 2010 Volume, Page NEW BUSINESS - Proposed Recommendations to Council for Amendments to SCC 7.10, Harbor and Port Facilities Motion (Tougas /Oliver) Approve canceling January 20, 2010 scheduled PACAB Work Session, cancel regular business meeting on February 3, 2010, schedule work session for February 10, 2010 at noon to discuss Seward City Code Title 7 and article 8 of the same, and scheduling a regular business meeting for Wednesday February 17, 2010 at noon Discussion: Board members discussed their schedules and the need for Harbormasters input to Title 7 Code changes. Motion Passed Motion Carried Unanimously Annual PACAB Report to City Council, January 11 by Chair Long Chair Long stated that he would be out of town on January 11, 2010 and encouraged another Board member to give the report. Tougas volunteered and was unanimously directed to report to the Seward City Council on PACABs 2009 activities in Chair Longs place, on Monday January 11, 2010. -Chair Long requested suspending the rules in order to discuss an email from Vice Chair Theresa Butts regarding her request for an excused absence from the board. With no objection this became the next agenda item. Motion (Altermatt/Tougas) Approve Vice Chair Butts' request for an excused leave of absence until at least April 1, 2010 and appointing Schaefermeyer vice chair during Butt's absence Discussion: Board members discussed the request and the subsequent need for election of an interim PACAB vice chair. Motion Passed Unanimous Consent 59 City of Seward, Alaska Port and Commerce Advisory Board Minutes January 6, 2010 Volume, Page 2010 Annual World Trade Center Alaska Statewide Economic Forecast Luncheon (January 13, 2010) Motion (Oliver /Schaefermeyer) Approve Deborah Altermatt's attendance of the 2010 Annual World Trade Center Alaska Statewide Economic Forecast Luncheon (January 13, 2010) in Anchorage, on behalf of PACAB, and requesting a report back to the board Discussion: Board members discussed the WTC forum. Motion Passed Unanimous Consent Harbormaster's 2009 Year -in- Review - Expansion and improvements to north harbor, south harbor, travel lift, I & T docks: A multi - phased project. Final phase- Z floats purchased and expected shipment soon. -Next step is replacing south harbor D float and S float. - Army Corp Projects were moving forward: Breakwater contract awarded to West Construction Harbor Dredging project on hold due to Amy Corp funding but still a top priority to both the city and Corp, and thus should start again as soon as funding was available. - 50 ton travel lift dock completed in 2009 -Swatting Construction claim was negotiated and contract closed - Electrical utility billing, for the harbor, had transitioned from city Finance offices to the Harbor. This had not yet been automated for the harbor. - Mustang USCG Mustang shore based facilities relocation to Z float, meetings and coordination of move ongoing. - Harbor Staff responded to 2 vessels that sank in slips in 09 due to improper owner weatherization techniques. -Fire extinguishers had been purchased for placement on A — D floats helping to improve code compliance. - Harbor passed OSHA inspection and was cited for excellence in 2009 -Grant Applications x 4 - ASLC working closely on multiple collaborative projects Looking into Fish Haven Dive Site near the Sea Life Center Personnel from ASLC were helpful dealing with problem sea lions in the harbor in May, 09. - October 2009 derelict vessel sale 2 sold and 2 destroyed - Maintenance and repair activities were reviewed; PACAB was familiar with these initiatives as they had been involved in discussion of policies. 60 City of Seward, Alaska Port and Commerce Advisory Board Minutes January 6, 2010 Volume, Page - Remodeled used oil stations, Program will be expanded Q- Schaefermeyer- is the oil burned? A- Harbormaster — answered "Yes. After it is processed and recycled, it is used to heat some city and harbor facilities." Q- Schaefermeyer -asked what happens to the antifreeze? A- Harbormaster — answered that the antifreeze was recycled by a private business. - 2 months ofbudget meeting had resulted in looking beyond operational focus, looking to long term critical maintenance and critical infrastructure. The harbormaster thanked PACAB for process input. - Websites for the Harbor and SMIC had been updated and were being improved - Leases -- Harbor and SMIC leases were very labor intensive for the harbor 5 year lease appraisals upcoming All require attorney review in 2010 Q- Schaefermeyer- asked where the revenue goes from the leases? A- Harbormaster — answered that half of the revenue from the leases went to the general fund and half to the Harbor. The finance department performed all the billing for those leases. - Improvements continued to be ongoing at Seward Ships Dry Dock in 2009 -50 ton Travel lift improvements have been focused on including belt upgrades and replacement schedule -DEC guidance on contaminated soil for land farming project had taken place in 2009, materials from a spill in 2005. Abandoned drums found along Nash Road remained in City custody - Stored vessels at SMIC had been tarped. 2010 goals ❑ Remainder of Z Float funding procurement ❑ Creating Harbor best management practices and allowable maintenance policy ❑ Seward Marine Industrial Center Best Management practices and yard improvements ❑ PACAB Code and Tariff revisions ❑ Begin online electrical utility and moorage customer access and payments ❑ Lease appraisals and development, in cooperation with community development, of a checklist for those interested in leasing city property ❑ Addressing SMIC impound and derelict vessel situation ❑ Marine facility inspection reports ❑ Customer efficiency and service improvement Board Questions -None BOARD COMMENTS — Lon- remarked that the Harbormasters report had a lot of information that could be used by Touags in his upcoming report to City Council. Dan Oliver- informed the Board that the Arctic Region Research Vessel had been named the "Sikuliaq" (see- koo -lak). It means new ice. Rob Buck - expressed Thanks to the Harbormaster for her report. Paul Touags — declined opportunity to comment. 61 rimomirvir City of Seward, Alaska Port and Commerce A dvisory Board Minutes January 6, 2010 Volume, Page Darryl Schaefermeyer- reminded Board of Gala for Sea Life Center in Anchorage on January 17 Debra Altermatt — Informed the board that she would not be in attendance for either the 17 of February for business meeting or March 3 2010. Altermatt said she would report to board on the WTC luncheon at the 2 -10 -10 work session. Chair Long- stated that the Alaska Logistics project appeared to be a positive move and a good company. CITIZEN COMMENTS — Ron Wille- asked if there are there security cameras at the harbor and if they work? Ron Wille- asked about prepayment qualifications and where it was discussed in code. BOARD AND ADMINISTRATION RESPONSE TO CITIZENS' COMMENTS - Long replied to Mr Wille that prepayment was discussed in the "Fees, Penalties and Ordinary Services " - Article 7.10.610 ADJOURNMENT The meeting was adjourned at 2:03PM Suzanne Towsley Ron Long Executive Liaison Chair (City Seal) 62 Exxon Valdez Oil Spill Trustee Council - • 441 W. 5th Ave., Suite 500 • Anchorage, AK 99501 -2340 • 907 278 8012 • fax 907 276 7178 a, NEWS RELEASE Date: January 15, 2010 Contact: Laurel Jennings, 888 - 654 -3867 Exxon Valdez Oil Spill Trustee Council Seeks Public Comment on Future of Program EVOSTC seeks public comment on proposed focus areas for remaining restoration funds, concurrent with a NEPA update of its 1994 Restoration Plan. ANCHORAGE, January 14, 2010 — The Exxon Valdez Oil Spill Trustee Council (Council) announces the posting of a Notice of Intent (NOI) and the opening of a public comment period to supplement the Council's existing Environmental Impact Statement. The public comment period will end on April 1, 2010 and a series of public meetings will be held in six communities during this time (please see below for dates and times). The Council, recognizing that the restoration funds remaining from the Exxon Valdez settlement continue to diminish, seeks to narrow and refine the scope of the Council's restoration efforts and to enable a more discrete and efficient funding mechanism by which to direct these remaining funds. In the NOI, the Council proposes to focus their restoration efforts to five defined restoration categories: herring; lingering oil; long -term monitoring of marine conditions; harbor protection and marine restoration; and habitat acquisition and protection. These Council efforts and deliberations dovetail with the need for the Council to complete a National Environmental Policy Act of 1969 (NEPA) update of its original 1994 Restoration Plan. Thus, in conjunction with the National Oceanic and Atmospheric Administration (NOAA), the Council has posted a Notice of Intent to prepare a supplement to the existing environmental impact statement (SEIS) on the Council's restoration efforts. A copy of the NOI can be obtained' from the EVOSTC office and on its website, www.evostc.state.ak.us. The Council would like to encourage public comment which may be submitted in several ways: • Written comments may be submitted by mail to: Laurel Jennings, Exxon Valdez Oil Spill Trustee Council, 441 West 5th Avenue, Suite 500, Anchorage, AK 99501 or via email to dfg .evos.nepacomments @alaska.gov • Verbal comments may be submitted by calling 888 - 654 -3867. • Written or verbal comments may be submitted at any of the following public meetings: Federal Trustees State Trustees U.S. Department of the Interior Alaska Department of Fish and Game U.S. Department of Agriculture Alaska Department of Environmental Conservation National Oceanic and Atmospheric Administration Alaska Department of Law 63 February 16, 2010 from 6:00 p.m. to 8:00 p.m. at the Alaska Islands and Oceans Visitor Center, 95 Sterling Highway, Homer, AK 99603. February 17, 2010 from 6:00 p.m. to 8:00 p.m. at Dena'ina Civic & Convention Center, 600 West Seventh Avenue, Anchorage, AK 99501. February 18, 2010 from 7:00 p.m. to 9:00 p.m. at the Cordova Public Library, 622 First Street, Cordova, AK 99574. March 16, 2010 from 6:00 p.m. to 8:00 p.m. at the K.M. Rae Building, 125 Third Avenue, Seward, AK 99664. March 17, 2010 from 6:00 p.m. to 8:00 p.m. at the Valdez City Council Chambers, 206 Pioneer Drive, Valdez, AK 99686. March 18, 2010 from 6:00 p.m. to 8:00 p.m. at the Kodiak Refuge Visitor Center, 402 Center Street, Kodiak AK 99615. For more information about the scoping process, please contact the EVOSTC office and details will be provided. Updates or changes to the meeting times or dates, due to weather or other factors, can be found at http: / /www.evostc.state.ak.us. Please note that for the NEPA public scoping process, comments must be received by April 1, 2010, in order to be incorporated into the official scoping record. Comments received after April 1 will still be considered by the Council in the development of the SEIS, but will not be a part of the scoping record Once this NEPA scoping process is complete, the Draft SEIS will be developed and released for public comment in Spring 2010. This second public comment period will be for 45 days. Further opportunities for public comment are provided through public review and comment on documents contained in the Administrative Record, as well as on the Final Supplemental Environmental Impact Statement. If you would like to receive electronic notices of these future public involvement events, please send your e-mail address to dfg.evos.nepacomments @alaska.gov, along with a message that you would like to be added to the mailing list. About the Council In 1992, the Exxon Valdez Oil Spill Trustee Council was formed by six trustees, three State of Alaska trustees and three federal trustees, to oversee restoration of the natural resources and ecosystem damaged by the 1989 oil spill. The Exxon Valdez Oil Spill Trustee Council was funded by settlement of civil claims brought against Exxon Companies by the State of Alaska and the United States. To learn more about the Council and its mission, visit www.evostc.state.ak.us Federal Trustees State Trustees U.S. Department of the Interior Alaska Department of Fish and Game U.S. Department of Agriculture Alaska Department of Environmental Conservation National Oceanic and Atmospheric Administration Alaska Department of Law 64 PACAB MONTHLY BUDGET REVIEW 2010 Budget Advertising $ 250.00 Subscription & Dues $ 750.00 Travel & Subsistence $ 1,560.00 Education & Training $ 660.00 Insurance $ 400.00 Supplies $ 990.00 Small Tools and Equipment $ 1,500.00 Postage & Fees $ 210.00 Misc $ - Totals $ 6,320.00 Expenditures per month 2010 Jan -10 Description $ 40.00 WTC Luncheon 65 .rrrrr February 2010 February 2010 March 2010 S M T W T F S S M T W T F S 1 2 3 4 5 6 1 2 3 4 5 6 7 8 9 10 11 12 13 7 8 9 10 11 12 13 14 15 16 17 18 19 20 14 15 16 17 18 19 20 21 22 23 24 25 26 27 21 22 23 24 25 26 27 28 28 29 30 31 Monday Tuesday Wednesday Thursday Friday Sat/Sun �..� .:..�. :a. .,y�:u:'..`.!F!u�l T`v ? ! ;a :r s. era,uii;�l ] °.ei:'6 -rlli � an: ?!� - r' J.a.un: :_ :. '�. ..:.: __ :. _. ._,:_��. _ : : .:. : .:: � ,:�:<::..::.as �a= a�a:�s t ,. i :,_>i! s.w.:� x ! � i �, ;�::a'�,: r 4F �i � s: n��s� � ��'+, ...:�a 7 30pm P&Z Meeting :' u rp{ e .p4 D 7 :00pm C!t Council 1, fi']2ODprl ,lam X2Wi; Meeting 4 ,! 15 16 ' p .� 5r?gM.. rr tSocial ii "� N �V '.i s a t N h�,s a�!,� i_, x '�1�ii 6,30pm, 7 1 2 00 m PACAB 0a �� 111160,01** Historic Security Rep Preservation Meeting 1 7:00pm;City Council Meeting tiairratteggittliga Nanci Richey 1 2/12/2010 1:18 PM March 2010 March 2010 April 2010 S M T W T F S S M T W T F S 1 2 3 4 5 6 1 2 3 7 8 9 10 11 12 13 4 5 6 7 8 910 14 15 16 17 18 19 20 11 12 13 14 15 16 17 21 22 23 24 25 26 27 18 19 20 21 22 23 24 28 29 30 31 25 26 27 28 29 30 Monday Tuesday Wednesday - Thursday Friday Sat/Sun March 1 2 3 4 5 7:30pm P&Z Meeting 7 8 9 10 11 12 13 7:00pm City Council 6:30pm CC WS 6:00pm Flood Plain 12:00pm Meeting Task Board Meeting (Kenai Peninsula Borough) 14 I ■ 15 16 17 — - 18 19 20 6:30pm 12:00pm '7. 9:00am Social ,, Security Rep 6:30pm Historic Preservation Meeting 21 22 23 24 25 26 27 7:00pm City Council Meeting 28 29 30 31r 7 11mmi, Nanci Richey 2 2/12/2010 1:18 PM