HomeMy WebLinkAboutRes2004-027
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Sponsored by: Shealy
CITY OF SEWARD, ALASKA
RESOLUTION 2004-27
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD,
ALASKA, AUTHORIZING THE SALE OF LOT lA, BLOCK 4, FOURTH OF
JULY CREEK SUBDIVISION, SEWARD, ALASKA TO PATRICK MARRS,
dba COMMUNICATIONS NORTH AND TERMINATION OF THE
EXISTING LEASE
WHEREAS, the City of Seward leases Lot lA, Block 4, Fourth of July Creek Subdivision,
according to Plat 2000-6 filed in the Seward Recording District, Third Judicial District, State of
Alaska (the "Property") to Patrick Marrs, dba Communications North (the "Lessee"); and
WHEREAS, Seward City Code Section 7.05.120 authorizes the City Council to dispose of
real property by negotiation, public auction or sealed bid; and
WHEREAS, it was and continues to be the intent of the City and the Lessee that the Lessee
will release and indemnifY the City from liability and compliance with past, present or future
environmental regulations or controls with respect to the Property and Lessee's operations on the
Property; and
WHEREAS, the proposal before the City will reduce rental income to the City but will result
in placing the Property in private hands; and
WHEREAS, the City finds that it is in the public interest to convey the fee interest in the
Property to Patrick Marrs for fair market value and pursuant to the terms of the Purchase and Sale
Agreement between the City and Patrick Marrs, attached in substantial form hereto as Exhibit A and
incorporated by reference; and
WHEREAS, the City and Patrick Marrs intend to terminate the existing lease ofthe Property
upon the sale of the Property as described herein.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF SEWARD, ALASKA, that:
Section 1. The recitals are hereby incorporated by reference. The City Council finds that it
is in the public interest to enter into a purchase and sale agreement with Patrick Marrs by sole source
negotiation pursuant to the essential terms and conditions in the attached Purchase and Sale
Agreement.
Section 2. The City Council finds that the public interest will not be served by a new
appraisal because the Property leased by the City was recently appraised and both parties accept such
appraisal as fair market value.
Section 3, The attached Purchase and Sale Agreement incorporated herein by reference as
Exhibit A, is hereby approved and the City Manager is hereby authorized to execute the Purchase
and Sale Agreement in substantial form as attached hereto and to make such corrections and execute
related documents as may be necessary to fulfill the intent ofthis resolution on behalf ofthe City of
Seward.
Section 4, This resolution shall take effect 30 days after passage and posting.
PASSED AND APPROVED by the City Council of the City of Seward, Alaska this 22nd
day of March, 2004.
THE CITY OF SEWARD, ALASKA
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C, David Brossow, Mayor
AYES: Shafer, Branson, Dunham, Clark, Valdatta, Amberg, Brossow
NOES:
ABSENT:
ABSTAIN:
ATTEST:
J Lewis
. y Clerk
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COUNCIL AGENDA STATEMENT
Meeting Date: March 22, 2004
Through: Phil Shealy, City Manager
From: Harbormaster, James B. Beckham
Agenda Item: Authorizing the Sale of Lot1A, Block 4, Fourth of July
Creek Subdivision, to Patrick M. Marrs, the Current Lessee.
BACKGROUND & JUSTIFICATION:
The City of Seward leases Lot 1A, Block 4, Fourth of July Creek Subdivision, (the "Property") to
Patrick Marrs, dba Communications North. He has requested to purchase this property and Seward
City Code Section 7.05.120 authorizes the City Council to dispose of real property by negotiation,
public auction or sealed bid.
There is a public interest in conveying the fee interest in the Property to Patrick Marrs for fair market
value, pursuant to the terms of the Purchase and Sale Agreement between the City and Patrick Marrs,
attached in substantial form to the Resolution. The Property was recently appraised and both parties
agree and accept the appraisal as fair market value.
It was and continues to be the intent of the City and the Lessee that the Lessee will release and
indemnify the City from liability and compliance with past, present or future environmental
regulations or controls with respect to the Property and Lessee's operations on the Property. The
parties intend to terminate the existing lease of the Property upon the sale.
CONSISTENCY CHECKLIST: Yes No
1. Comprehensive Plan X
Economic Development
2. Strategic Plan X_
Economic Base ,Improve and Expand Maritime Facilities:
3. Other:
FISCAL NOTE:
This lease generates $1,840 in annual revenue for the SMIC Enterprise Fund. Reduction in revenue
will result in a larger subsidy from another fund.
Approved by Finance Department
RECOMMENDATION:
Council approve Resolution 2004-27, authorizing the City Manager to enter into a Sale Agreement
with Patrick M. Marrs for Lot1A, Block 4, Fourth of July Creek Subdivision.