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Home My WebLink AboutRes2010-012 Sponsored by: Oates CITY OF SEWARD, ALASKA RESOLUTION 2010 -012 ham A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, AUTHORIZING THE DISPOSAL OF LOT AU, FOREST ACRES SUBDIVISION, SUBJECT TO A PUBLIC USE EASEMENT, TO STEVE AND MAUREEN LEMME IN EXCHANGE FOR $4,000 AND A PUBLIC USE EASEMENT ON LOT ZZ, FOREST ACRES SUBDIVISION FOR THE NORTH FOREST ACRES LEVEE/ROAD PROJECT, AND APPROPRIATING FUNDS WHEREAS, the Seward City Council approved Resolution 2007- 41 on April 23, 2007, authorizing the "2007 Red Line" Alignment for the North Forest Acres Levee/Road Project (the "Project "); and WHEREAS, the Seward City Council approved Resolution 2008 -46 on May 27, 2008, authorizing the city manager to negotiate with property owners to acquire easements, rights -of -way and/or property purchase agreements as necessary to facilitate construction of the North Forest Acres levee /road; and WHEREAS, construction of the Project requires a public use easement of 15,654 square feet (sf) out of a total 30,019 sf parcel currently owned by Steve and Maureen Lemme, identified on Plat 78 -4 as Forest Acres Subdivision Lot ZZ; and WHEREAS, Lot ZZ was appraised at $40,000, equating to $1.33 /sq. ft, resulting in a value for the public use easement of approximately $21,000; and WHEREAS, the property owner wishes to enter into a land exchange with the City in lieu of receiving monetary compensation for the public use easement, and proposes to acquire the City -owned parcel identified on Plat 78 -4 as Forest Acres Subdivision Lot AU which is located across Dimond to the west of Lot ZZ, and the City agrees to transfer ownership of Lot AU to the property owner with the understanding that the City will retain a public use easement on 13,394 sf of Lot AU as needed to construct the Project, leaving a remaining useable portion of Lot AU equal to 26,659 sf; and WHEREAS, Lot AU was appraised at $40,000, equating to $1 /sf, equating in a value for the useable portion of Lot AU equal to $26,659, and resulting in a total exchange of City property equal in value to $26,659 (plus a $4,000 cash incentive to expedite transaction) with private property valued at $21,000; and WHEREAS, the Seward Planning and Zoning Commission has authorized disposal of Lot AU; and WHEREAS, this exchange is hereby found to be in the public interest because it fairly compensates the private property owner for the public use easement acquired on their property, transfers Lot AU back into private ownership and back on the tax rolls, allows for development of portions of Lots ZZ and AU (the portions not encumbered by public use easement areas), and satisfies the City's need for these parcels to construct the Project. NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF l"'" SEWARD, ALASKA, that: CITY OF SEWARD RESOLUTION 2010 -012 Section 1. The recitals stated above are incorporated by reference herein. For the reasons stated us i above, the City Council finds it is in the best interest of the City of Seward to dispose of Lot AU, while maintaining a public use easement on 13,394 sq. ft. of Lot AU as needed to construct the North Forest Acres Levee/Road Project, subject to the terms contained in the Purchase and Sale Agreement attached hereto. Section 2. The City Manager is hereby authorized to acquire a public use easement on 15,654 sq. ft. of Lot ZZ as depicted in the Purchase and Sale Agreement attached hereto, and to execute the Purchase and Sale Agreement in substantially the form presented at this council meeting. Section 3. Funds in the amount of $9,000 are hereby appropriated from the North Forest Acres Levee Project account to account no. 666 -666X -5910 for the purpose of paying any necessary closing costs, escrow, or other costs associated with this property exchange, including a $4,000 incentive for expediting the closing of this transaction. Section 4. This resolution shall take effect (30) days following passage and posting. PASSED AND APPROVED by the City Council of the City of Seward, Alaska, this 22nd day of February, 2010. THE CITY OF SEWARD, ALASKA 'Willard E. Dunham, Mayor AYES: Valdatta, Bardarson, Keil, Amberg, Shafer, Dunham NOES: None ABSENT: Smith ABSTAIN: None ATTEST: °A 4/ , Je.l Lewi s � .•e•ur.,,, ♦ ••' o¢ sE11/4 C y Clerk * . ♦/�� ♦♦ • (City Seal) ? ___ — . • • SEA •� —+— f s ... ♦ '••. OF AVP. *' Council Agenda Statement * ZIN li Meeting Date: February 22, 2010 �� 4LP � l Through: Phillip Oates, City Manager From: Kristin Erchinger, Finance Director Agenda Item: Property Swap with Lemme to facilitate acquisition of Public Use Easement required for North Forest Acres Levee/Road Project BACKGROUND & JUSTIFICATION: The City of Seward has been collaborating with state and federal resource agencies since 1999 to construct a levee to mitigate the impact of future flood events in Seward. Phase I of this project was completed in 2002. Phase II involves construction of a combined levee /road intersecting Dimond Boulevard on the western end of the levee, and intersecting the Seward Highway on the eastern end. In order to construct the levee /road (the "Project "), the City must acquire properties in whole or in part, as is in the case with this proposed purchase of a public use easement ( "PUE "). This resolution authorizes the acquisition of a public use easement (PUE) on Lot ZZ owned by Steve and Maureen Lemme. The City proposes to purchase a PUE amounting to 15,654 square feet, leaving 14,386 sf of Lot ZZ unencumbered by the PUE area, and therefore useable by the Lemmes. The appraised value of this parcel is $40,000, equating to $1.33 /sf, resulting in a PUE value estimated at $21,000. The City owns Lot AU across Dimond to the west of Lot ZZ. The property owner desires to be compensated for the PUE on lot ZZ that will be conveyed to the City with Lemme's acquisition of the City's Lot AU. The City can dispose of Lot AU but must maintain a 13,394 sf public use easement on Lot AU for the purpose of constructing the Project. This will leave an unencumbered remainder of parcel AU equal to 26,659 sf. Lot AU is not cleared or filled and is overburdened with cottonwood, spruce, and alder trees. Although larger than Lot ZZ, Lot AU is also appraised at a value of $40,000, and given its total size of 40,052 sf, the value of Lot AU is calculated as $1 per sf. This results in a calculated value of $26,659 for the unencumbered portion of Lot AU which will be the useable portion of Lot AU. In summary, this action will result in the City "swapping" Lot AU (with a value of $26,659 after encumbered with a PUE) for a public use easement on Lot ZZ (with a PUE value of $21,000). In addition, the City has offered $4,000 as an incentive to expedite the closing of this transaction. This exchange is reasonable and in the best interest of the public because it transfers Lot AU back into private ownership placing it on the tax rolls, allows for development of portions of Lots ZZ and AU, and satisfies the City's need for the portions of these parcels required to construct the North Forest Acres Levee/Road. CONSISTENCY CHECKLIST Where applicable, this agenda statement is consistent with the Seward City Code, Charter, Comprehensive Plans, Land Use Plans, Strategic Plan and City Council Rules of Procedures. Other: 1 CITY OF SEWARD RESOLUTION 201111-1?.., iD FISCAL NOTE The City will sell Lot AU (but will maintain a public use easement on the property equal to 13,394 sf) to Steve and Maureen Lemme in exchange for a public use easement on Lot ZZ which is owned by the Lemmes, plus a cash contribution of $4,000. The value of the unencumbered portion of the City's Lot AU which will be useable by the Lemmes is $26,658. The value of the public use easement the City will purchase from Lot ZZ is $21,000. At closing, the City will pay all costs related to processing, recording, and closing this transaction, estimated not to exceed $5,000. Approved by Finance: J , . , , RECOMMENDATION City Council approve Resolution 2010 - a authorizing a land swap between the City of Seward and Steve and Maureen Lemme, in addition to a $4,000 cash payment, to facilitate the construction of the North Forest Acres Levee/Road Project. 1?