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HomeMy WebLinkAbout02012021 City Council Work Session Notes WORK SESSION NOTES CITY COUNIL Called by: CA/-heTime: (0 owl Date: c/l a # { Purpose: 3 itAV144-4,-714 2 /Q2J7 / 01444_,61.440t4.-(ni_,4 Present: ��0(�M)- t Council Members Present: ,, 4wo�.,$S' v �cSAE?,r( vy eviq` a¢ .yU�G C(v►�e Ste. 45 p).1.--) ,,i5t,t)AA'-e, Oa di ---7- .A4)) (,),, Otp,vt-frf, ?ate-64444 (2-darn 6°_ ,J1 -= z( oi,, / - a),,,4 _4_,3_,a.",s 1-0-faL Aa rzAte.. :-_-_. 1 1 ,1-1 acAta. cC,1,0 lIir.30/1 -, kee,,, ) t. � jvat-i.e. � (G � tipT %' / - - , Az 1-0 . 4 '?-4'c—a4.— , 74' Caii, i,) , cA4d k.,_64064 cfr-Y- /19,--kkist- f+4 ctl'r 3'f" W a a l oe. 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(t) -e SUS zqz.02.. f te° r W0. c S of„_ 0. swat d 14-, L-f-1 x, t) Ct-e. s L A/ ►,.,,t- oto 442 IA) k_ C O u / e-m s lc.e (yLoe- -Z cmot v c-tv '- --2 Lat1 ed `. -t, Ct &tut-0U -1—" 61,44- )LtAdr ug P `Af Sponsored by: Jon s • CITY OF SEWARD, ALASKA RESOLUTION NO. 94-101 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 I PasP Policies and Procedures, a copy of which is attached 0 and incorporated herein by reference, is hereby ADOP ED. prior resolutions in conflict herewith are hereby 2. All o RESCINDED.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 kaii4Z. (19 . @Aio-fuL.../ Dave W. Crane, Mayor AYES: Anderson, Bencardino, Crane, Krasnansky and Sieminski NOES: Darling ABSENT: O'Brien ABSTAIN: None • CITY OF SEWARD, ALASKA RESOLUTION NO. 94-101 ATTEST: APPROVED AS TO FORM: Wohlforth, Argetsinger, Johnson & Brecht, Attorneys for the city of Seward, Alaska ,--/ �, aeX7)) ei/ S. rph�, CM / City Attorney City Clerk (City Seal) 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. III D. The City Council will hold a public hearing on the disposal of the ated 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 0 Zoning Commission at their next regular meeting, for review and written recommen- 0 City of Seward,Alaska Resolution No. 94-101 Attachment A Page 1 dations, including any special lease conditions the Commission determines to be in the 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 H. In the event the City Council fails to approve the lease agreement within 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 ments licenses and insurance must be current. III2. All appropriate ro riate 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 • only after the following terms have been met: City of Seward,Alaska Resolution No. 94-101 Attachment A Page 3 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. III III City of Seward,Alaska Resolution No. 94-101 Attachment A Page 4 Seward, AK Code of Ordinances Page 1 of 12 Chapter 7.05. -Acquisition and Disposal of Real Property Footnotes: -- (2) --- State Law reference— 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 Footnotes: --- (3) --- 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, 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. Encroachment means any obstruction in, or intrusion into a delineated floodway, right-of-way, easement, or public land or associated airspace. about:blank 2/1/2021 Seward, AK Code of Ordinances Page 2 of 12 Essential terms and conditions means a description of the real property involved; the length or term of a lease; the sale, purchase or lease amount; any special deed restrictions or covenants; and any special development requirements. 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. 98-04; 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. about:blank 2/1/2021 Seward, AK Code of Ordinances Page 3 of 12 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. 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. about:blank 2/1/2021 Seward, AK Code of Ordinances Page 4 of 12 (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) 7.05.160 -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; about:blank 2/1/2021 Seward, AK Code of Ordinances Page 5 of 12 (2) For which the Council finds that the public interest will be served by leasing the property for less 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 Footnotes: --- (4) --- 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. about:blank 2/1/2021 Seward, AK Code of Ordinances Page 6 of 12 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 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 about:blank 2/1/2021 Seward, AK Code of Ordinances Page 7 of 12 • 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$30,000.00. 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; Ord. No. 2018-006, § 5, 9-24-2018) 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. about:blank 2/1/2021 Seward, AK Code of Ordinances Page 8 of 12 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; 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 about:blank 2/1/2021 Seward, AK Code of Ordinances Page 9 of 12 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. 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 about:blank 2/1/2021 Seward, AK Code of Ordinances Page 10 of 12 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. about:blank 2/1/2021 Seward, AK Code of Ordinances Page 11 of 12 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 II 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 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 III 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 about:blank 2/1/2021 Seward, AK Code of Ordinances Page 12 of 12 • 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) about:blank 2/1/2021