HomeMy WebLinkAbout09262022 City Council Special Meeting LAYDOWN 1 SMIC Study ReportLAYDOWN #1 9/26/2022 City Council Special Meeting
SEWARD MARINE INDUSTRIAL CENTER (SMIC) BENCH
DRAFT DEVELOPMENT FEASIBILITY STUDY
PREPARED AUGUST 2022 FOR: City of Seward • 410 Adams Street, Seward,Alaska 99664
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R&M Consultants, Inc
• gioi Vanguard Drive Anchorage, AK 995o8 • 907.522.1707
CITY OF SEWARD SMIC BENCH DRAFT FEASIBILITY STUDY 2022
CONTENTS
INTRODUCTION................................................................................................................................
ExistingConditions Overview.............................................................................................
OPPORTUNITIES & CONSTRAINTS.............................................................................................2
LandUse & Zoning..............................................................................................................2
IntendedLand Use.........................................................................................................................................2
Zoning............................................................................................................................................................... 2
Development Requirements........................................................................................................................3
Required Public Improvements...................................................................................................................3
Geotech.................................................................................................................................4
Access.................................................................................................................................... 4
Utilities..................................................................................................................................5
WaterSource..................................................................................................................................................5
WaterTreatment............................................................................................................................................ 5
WaterStorage.................................................................................................................................................6
Water Transmission & Distribution............................................................................................................6
Sewer Collection,Treatment & Disposal...................................................................................................6
Total Order of Magnitude Utility Development Costs..........................................................................7
TsunamiCenter Site Potential...........................................................................................7
DEVELOPMENT CONCEPT.............................................................................................................8
Overview............................................................................................................................... 8
ConceptDesign....................................................................................................................8
FEASIBILITY SUMMARY.....................................................................................................................9
ATTACHMENTS
I. SMIC Bench Subdivision Concept
2. SMIC Bench Concept Roadway Alignments
R&M CONSULTANTS, INC.
CITY OF SEWARD SMIC BENCH DRAFT FEASIBILITY STUDY 2022
INTRODUCTION
The City of Seward is exploring development opportu-
nities for its vacant land to meet community needs and
advance their vision and goals. Part of their land inventory
includes an 1,828-acre parcel on the east side of resurrec-
tion Bay near the Seward Marine Industrial Center (SMIC)
Fourth of July Creek and its tributaries created a natural
northern and southern divide of the parcel.The northern
portion of the parcel has been identified as a potential
development opportunity and the City of Seward has
authorized R&M Consultants, Inc. to assess its feasibility.
The following feasibility study provides an overview of the
SMIC Bench property being considered for development,
identifies opportunities and constraints of the site, and
presents development concepts based on the goals of the
project and municipal code requirements. Conclusions and
recommendations made in this study are based on desk-
top analysis conducted by certified surveyors, engineers
and planners and are considered conceptual.
EXISTING CONDITIONS OVERVIEW
The City of Seward is considering the development fea-
sibility of the portion of the SMIC Bench property gen-
erally adjacent to Nash Road, north of the Spring Creek
Correctional Center, and west of Godwin Creek. Physical
constraints including steep slopes and the presence of in-
termittent or permanent streams are driving the feasibility
study area boundary (see cover image).
Parcel ID
14532003
Legal Description
Tract G, Fourth of July Creek Subdivision No. 2,
according to Plat No. 98-04, Seward Recording Dis-
trict,Alaska. Located within T I S R I E& I W SEC 7,
8, 17, 18, 12, & 13
Physical Address
700 Nash Road
Size of Study Area
833 acres, approximately (full parcel is 1,828 acres)
Zoning
Resource Management — partially developable lands
subject to floodplains and steep slopes.
Land Use
Vacant land that is anecdotally used for recreation
(recreation occurs north of the SMIC Bench parcel
on USDA Forest Service land for the Godwin Gla-
cier Overlook trail).
Utilities
Utilities do not extend into SMIC Bench area.
Water and sewer lines exist within a closed system
between the SMIC harbor and prison facilities; no
sewer lines are present on Nash Road, however,
city water is available at the base of the mountain.
Overhead electric lines are present along Nash
Road adjacent to the SMIC Bench study area, and
underground lines are present on the Spring Creek
Correctional Center property.
R&M CONSULTANTS, INC.
CITY OF SEWARD SMIC BENCH DRAFT FEASIBILITY STUDY 2022
OPPORTUNITIES & CONSTRAINTS
LAND USE & ZONING
Intended Land Use
The City of Seward is experiencing an ongoing housing
shortage for seasonal and year-round residents and it is a
priority of the Community Development Department and
City Council to identify areas for residential development.
SMIC Bench is being considered as a potential develop-
ment site for a new residential neighborhood.
Depending on the feasibility of development and antic-
ipated housing units, additional public or commercial
land uses could be desirable or needed within the SMIC
Bench area. Non-residential uses may include parks and
recreation, a school or other institutional land uses, home
occupation or other small commercial or office uses,
restaurants or other food establishments. A school site
has been included in the subdivision concept (see Attach-
ment I, SMIC Bench Subdivision Concept) which could
also be used for a tsunami evacuation area.
Access for recreation is anticipated to accompany any
development of SMIC Bench, as public lands are adjacent
to the City' property and the topography, viewsheds and
environment make it highly attractive for year-round
recreational pursuits. If access up the mountain to the
bench can be established, the topography and amount of
available city -owned land would be supportive of a trail
network. Development of a trail system should take into
consideration access and parking, wayfinding, maintenance,
management, intended uses and sustainable design and
construction of trails. Establishment of a recreational trail
system could increase the attractiveness and marketability
of housing developments at SMIC Bench and provide a
new destination to be enjoyed by Seward residents.
Zoning
Zoning districts create the framework for regulating land
use within the City of Seward. Each zoning districts has
allowable land uses and associated development require-
ments. SMIC Bench is zoned Resource Management (RM)
residential, industrial or public uses; and other possible
environmental considerations.
To effectively support the desired development at
SMIC Bench, rezoning the area to one or more of the
following zoning districts may be considered based on
the City's desired use and intensity of the land:
Rural residential district (RR),Intended to provide
for stable, quiet, low density (one or two dwelling
units per acre) detached single-family residential
development, free from other uses except those
which are both compatible and convenient to
residents of such a district including recreational,
religious and educational facilities of an appropriate
scale and design complementary to the neighbor-
hood character.
Single-family residential district (R 1) Intended to
provide for stable and quiet low to medium density
(one to five dwelling units per acre) detached, sin-
gle-family residential development, free from other
uses except those which are both compatible and
convenient to residents of such a district.
Two-family residential district (R2).Medium density
(one to seven dwelling units per acre) transitional
housing area with a mix of single and two-family
units, free from other uses except those which are
both compatible and convenient to residents of
such a district.
4. Multi -family residential district (R3 Intended to
provide opportunities for a higher density residen-
tial setting with a mix of housing units which are
predominately multi -family units close to concen-
trations of public services, employment and/or
recreation.This district may provide a transition
between more intensive districts and lower density
residential areas if sufficient screening and design
features are provided to protect multi -family resi-
dences from undesirable effects.
Resource Management — Considered principally public
5. Urban residential district (UR),Intended to allow an
The RM district is defined by City of Seward Code Ti-
area of higher density mixed residential uses from
tle 15.05.025(b). as lands which are generally undevel-
detached single-family housing to multi -family apart-
oped and cannot be precisely zoned due to inadequate
ments in conjunction with compatible low impact
information on the extent of public services and utili-
professional office uses in the area surrounding the
ties; the suitability of the land to support commercial,
downtown business district.
R&M CONSULTANTS, INC.
CITY OF SEWARD SMIC BENCH DRAFT FEASIBILITY STUDY 2022
Residential development has been identified as the primary
land use for a SMIC Bench development to address the
identified need for additional housing units.The preferred
residential density (units per lot, lots per acre, etc.) will
be determined by market preferences and the anticipated
availability and costs of utilities, roadways and lot develop-
ment.The following tables summarizes potential land uses
allowed in applicable zoning districts.
Table I. Summary of Residential Land Uses by Zoning District, per City of Seward Code 15.10.226
RM
RR
RI
R2
R3
UR
Apartment, efficiency or accessory
Prohibited
Permitted
Permitted
Permitted
Permitted
Permitted
Apartment, studio
Conditional
Prohibited
Prohibited
Prohibited
Prohibited
Prohibited
Attached single-family townhouse, row
Conditional
Prohibited
Prohibited
Prohibited
Prohibited
Conditional
Condominium
Conditional
Prohibited
Prohibited
Prohibited
Conditional
Conditional
Detached single-family
Conditional
Permitted
Permitted
Permitted
Permitted
Permitted
Group Home
Conditional
Permitted
Permitted
Permitted
Permitted
Permitted
Guest House
Conditional
Permitted
Permitted
Prohibited
Prohibited
Prohibited
Two-family or duplex
Conditional
Prohibited
Prohibited
Permitted
Permitted
Permitted
Multi -family (3 or more)
Conditional
Prohibited
Prohibited
Prohibited
Conditional
Conditional
Table 2. Summary of Non -Residential Land Uses by Zoning District, per City of Seward Code 15.10.226
•
RM
RR
RI
R2
R3
UR
Grocery, convenience store
Prohibited
Permitted
Prohibited
Prohibited
Conditional
Conditional
Home occupation
Permitted
Permitted
Permitted
Permitted
Permitted
Permitted
Home rental on a nightly basis
Prohibited
Prohibited
Prohibited
Prohibited
Admin.
Admin.
Lodging, B&B, rooms, duplex and acces-
sory apartment
Prohibited
Permitted/
admin
Permitted/
admin
Permitted/
admin
Permitted/
admin
Permitted/
admin
Lodging, multifamily dwelling apartment
Prohibited
Prohibited
Prohibited
Permitted
Permitted
Permitted
Office, home professional
Prohibited
Prohibited
Prohibited
Prohibited
Prohibited
Permitted
Planning Unit Development
Prohibited
Prohibited
Permitted
Permitted
Permitted
Prohibited
Playground, public tot lot
Permitted
Permitted
Permitted
Permitted
Permitted
Permitted
Restaurant, food service, catering, brew
pub
Conditional
Prohibited
Prohibited
Prohibited
Prohibited
Prohibited
School, public/private elementary/sec-
ondary
Prohibited
Conditional
Conditional
Conditional
Conditional
Conditional
Wind Energy Conservation System
Permitted
Permitted
Permitted
Permitted
Permitted
Permitted
Development Requirements
City of Seward Land Use Code,Title 15, defines dimen-
sional standards by zoning district that limit the range of
possible subdivision configurations. Table 3 on the follow-
ing page provides the dimensional standards required by
zoning district:
*Note 2E. Multiple -family developments (except studio apartments)
with three or more units require a minimum of 9,000 SF in the R3,
UR, OR Districts and 20,000 SF in the RM District
*Note 2F. Two -Family or duplex developments require a minimum of
6,000 SF in the R2, R3, UR, OR,AC and CB Districts and 20,000 SF
in the RM District. Duplex developments within the Federal Addition
Subdivision require 5,000 SF.AII other development requirements of
this chapter shall be met.
*Note 2G. Multiple -Family, studio apartments in the OR, AC, CB, HC,
I and RM districts require a minimum of 9,000 SF. The total square
footage required for lot setbacks shall be reserved as open area.All
other requirements set forth in this chapter shall be met.
Required Public Improvements
City of Seward Subdivision Code,Title 16 identified
required public improvements that must meet identified
minimum standards for a subdivision to be approved by
the City.
R&M CONSULTANTS, INC.
CITY OF SEWARD SMIC BENCH DRAFT FEASIBILITY STUDY 2022
Table 3. Summary of City of Seward Code Table 15.10.222 Development Requirements
NON-RESIDENTIAL
IL
RM
RR
RI & R2 R3
UR
Maximum Building Height (ft.)
34
34
34
34
34
Minimum Buildable Lot Size (ft.) *Note 23, 2.E, 2.F.
20,000
20,000
Varies 3,000 to
7,000
Varies 3,000 to
9,000
Varies 3,000 to
9,000
Minimum Lot Width (ft.)
100
100
Varies 30 to 60
Varies 30 to 90
Varies 30 to 90
Minimum FrontYard Setback (ft.)
20
20
20
20
20
Minimum Side Yard Setback (ft.)
10
10
5 min. each side
with 15 total
10
5
Minimum Side Yard Setback Adjacent to Street (ft.)
20
10
10
10
10
Minimum RearYard Setback (ft.)
10
10
10
10
10
Maximum Accessory Building Height (ft.)
34
20
20
20
20
Maximum Lot Coverage (%) *Note 2G
100
30
35
40
40
16.05.010 Required Public Improvements:
I . Streets: minimum requirements are a 50' width and
gravel surface.
2. Telephone and electric lines: must be underground.
3. Water system: the subdivider shall provide the
water system in accordance with the specifications
established by the city planning and zoning commis-
sion and affirmed by the city council. Fire hydrants
shall be provided to standards established by the
American Waterworks Association and shall be a
brand specified by the city.The subdivider shall not
be required to drill individual wells.
4. Sewer system:Where the city sewer system will
service the area covered by the plat or proposed
plat, the subdivider shall provide the sewer system
in compliance with all applicable state and federal
health and environmental laws and regulations.
5. Street lighting: Street lighting shall be installed in
accordance with the requirements of the city.
In addition to the City of Seward Code, minimum stan-
dards contained in the Kenai Peninsula Borough Code
under Title 20 must be met. Some requirements are more
stringent in the KPB Code, and any deviation from the
code requires a waiver.
GEOTECH
Based on the review of available geotechnical reports'
geologic maps2, and LIDAR data 3, the surficial geology of
the subject site is expected to consist of thin soil de-
posits overlying bedrock.The thickness of soil deposits
is expected to be generally less than 5 feet, and exposed
bedrock is likely present in many areas, particularly on
the steeper slopes. In flat areas bog deposits are expect-
ed consisting of saturated organic material and perched
groundwater.The bedrock is mapped as the Valdez Group,
composed of interlayered sandstone and phyllite.Actual
bore holes have not been drilled on site to confirm the
information gathered from existing sources.
Landslide risk at the subject site is considered low due to
the thin soil and lack of evidence of past landslide activity.
Excavations for road construction and site development
are likely to encounter bedrock and may require blasting.
The subject site is not expected to be suitable for con-
ventional on -site wastewater disposal.
ACCESS
The current access to the SMIC Bench area is via Nash
Road, a paved road that extends around the east side of
the bay and into Seward.There are currently no roads
that access the SMIC Bench area and this feasibility study
addresses the various issues and costs associated with
constructing an access road up the mountain.
Two primary constraints have been identified for devel-
opment in this area: the steepness of the terrain and the
presence of shallow bedrock.The slopes adjacent to Nash
Road vary, but are consistently over 30 percent, with
many areas up to 80 percent.The Kenai Peninsula Bor-
ough Code Title 14 Streets and Sidewalks, Roads and Trails
1 R&M consultants, Inc., Nash Road Extension Geologic Evaluation, November 1980.
2 Tysdal, R.G., and Case, J.E., Geologic Map of the Seward and Blying Sound Quadrangles, Alaska, USGS Map 1-1150, 1979.
3 https://gis.kpb.us/map/index.html?viewer=terrain
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CITY OF SEWARD SMIC BENCH DRAFT FEASIBILITY STUDY 2022
Chapter 14.06 Road Standards identifies the following
construction requirements for roadways:
14.06.160 Road Construction Standards —Alignments:
A. Vertical alignment. Roads shall be constructed in
a manner such that grades shall not exceed, at any
point, six percent on arterial roads and ten percent
on all other roads, and no more than four percent
within 100 ft. of any intersection.
We have assumed that the access road to SMIC Bench
would not be an arterial road and can be constructed to
a maximum of ten percent.Two potential alignments con-
necting Nash Road with the SMIC Bench have been iden-
tified (see Attachment 2, SMIC Bench Concept Roadway
Alignments).The main access alignment recommended
accesses the northern portion of the developable bench
area.The alignment switches back to maintain the ten per-
cent requirements and is approximately 6,000 feet long.
Because of the slopes along this alignment, no new lots
can be created along the alignment until the top of SMIC
Bench is reached. Secondary access would be provided
via a 7,600-foot-long road originating at Nash Road and
extending to the southern portion of the development.
The road is designed to fit completely within the existing
City of Seward tract so that no additional agreements
are required with other property owners to build and
maintain the road.
The second impediment to construction is the shallow
bedrock. Bedrock is good for stability, and dramatically
decreases the chances of landslides, however, it increases
the cost of road and site construction because it needs
to be blasted rather than dug. It also precludes the use of
traditional on -site sewer and water system that make the
development of individual lots simpler and cheaper (see
Utilities section below). Steep slopes and shallow bedrock
add significant costs to road and utility construction for
the project.
UTILITIES
Providing public water and sewer to homes on the SMIC
bench requires construction of significant infrastructure
relative to the number of parcels being served.This sec-
tion evaluates utility requirements in concept, including
how improvements can be constructed in phases while
supporting the future full build -out.
Water Source
The SMIC Bench development depends on the develop-
ment of a water source with adequate quality and capacity.
Based on the desktop geotechnical assessment of the
bench study area, the high bedrock makes well develop-
ment expensive. Depending on source aquifer hydrology,
groundwater production, and water quality, wells on the
bench may be entirely infeasible.The following solutions
for providing the SMIC bench with water were considered:
I. Develop additional high production capacity public
groundwater well(s) near existing city wells. Poten-
tial impacts to existing groundwater wells served by
shared aquifer would need to be evaluated further.
Develop high -capacity public groundwater well(s)
on bench — capacity and water quality are likely not
adequate due to shallow bedrock and lack of water
producing aquifers in bedrock. If a water source on
the bench were deemed viable, it could be more
cost efficient, depending on the well depth required
through bedrock.This should be confirmed by geo-
technical or hydrologic study.
3. Develop private groundwater wells on individual
parcels.These are subject to the same challenges
listed in #2 above.
4. Develop a surface water impoundment and water
intake structure in nearby creek — not likely to be
viable and will be influenced by climate conditions.
This would require a new WTP be constructed
on the SMIC bench. Booster pumps may also be
required for source water transmission/distribution.
Connect to existing city water distribution net-
work located at the bottom of the mountain south
of Nash Road.This option requires constructing
pumping stations to pump the water up the moun-
tain, and large storage facilities on the SMIC Bench
to store the water once on site.
WaterTreatment
The existing water treatment plant (WTP) located near
the correctional center serves a limited number of city
customers in the area.The WTP will require expansion,
modernization, and improvements to support the addi-
tional water demand presented by the SMIC bench.The
WTP should be improved to increase output capacity and
meet current water treatment regulatory requirements.
R&M CONSULTANTS, INC.
CITY OF SEWARD SMIC BENCH DRAFT FEASIBILITY STUDY 2022
The existing WTP should be further evaluated for its
condition and suitability for expansion, improvement, or
replacement.
Water Storage
Water storage tank(s) (WST) would likely need to be
provided for the SMIC Bench development to serve antic-
ipated community peak demands, emergency storage, and
fire flows for the area.The tanks should be placed at an
elevation which the system can provide minimum pres-
sures to higher elevation homes.This may require dedi-
cated access and a WST site higher than the development,
approximate elevation of 1,200'.
Water use and storage requirements are estimated based
on the following design criteria:
a. 3-bedroom residential homes
b. 100 gal/capita/day
c. School/commercial daily use (35k gpd)
d. 3 days emergency storage.
The water storage tank site can be developed to support
phased development. A smaller 0.5 million -gallon (mGal)
tank could be constructed for a first phase, with future
expansion area reserved for the full build -out 1.5 mGal
water storage tank.
Water Transmission & Distribution
Water must be supplied to the SMIC bench develop-
ment to fill the WST and provide distribution system
pressures.To supply treated water from the source well/
WTP (elevation 100'+) to the bench/WST (elevation
1,200+), a series of booster stations supplying high-pres-
sure transmission mains would be required.The booster
pumps could be vault style or in above -grade structures.A
high-pressure transmission main would be constructed.
The SMIC Bench development parcel elevations range
from approximately 700' to 1,050' which will likely re-
quire two or more hydraulic pressure zones managed by
city pressure reducing valve (PRV) stations to maintain
service pressures within the pressure range allowable by
Uniform Plumbing Code (UPC) and the city code utility
tariffs. Alternatively, homes could be supplied with in -
home PRVs or booster pumps, but limitations exist due
to the elevation differences.The following improvements
will be required:
1. Booster Station and high-pressure transmission
main from source wells/WTP to bench WST.
2. Intermediate booster stations for water transmis-
sion to SMIC bench along access road.
3. Pressure reducing valve stations to manage service
pressures throughout bench development.
Sewer Collection, Treatment & Disposal
Due to the number of parcels, their density, topography,
and size of the proposed parcels, on -site septic systems
are not practical or suitable for wastewater disposal (see
Development Concept and Attachment 1. SMIC Bench
Subdivision Concept). On site -treatment and disposal for
each lot is limited by the presence of groundwater, topog-
raphy, and geotechnical conditions and must comply with
minimum separation distances. Installation per lot would
be approximately $30,000, and ongoing electricity and
maintenance costs will be incurred by individual private
property owners.Advanced on -site treatment systems
(Advantex or similar) for individual parcels could be con-
sidered as an interim solution but these are not the most
cost-effective design for the full SMIC build -out.
A public sewer collection system maintained and op-
erated by the city is recommended. Sewage would be
collected at a Wastewater Treatment Plant (WWTP).
The WWTF would provide for the secondary treatment
of wastewater via mechanical processes. Final effluent
disposal discharge quality parameters and wastewater
effluent discharge receiving waters should be evaluated
further. AWWTP requires active and ongoing facility
management and maintenance including sludge disposal,
electricity costs, replacement and servicing of parts, and
presents additional energy costs to the city.
Another alternative to the WWTP was considered.This
alternative would pipe wastewater down the hill and
discharge into the existing city sewer Iagoon.The lagoon
would require expansion approximately doubling its foot-
print, and associated improvements/upgrades. Due to the
high-pressure sewer mains, wastewater pressure reducing
stations are required. In -line hydro turbines could be con-
sidered to recapture potential energy, generate electricity,
and supply power to the grid offsetting energy consump-
tion by the booster stations.
The improvements presented carry additional O&M costs
and responsibility for the city public works department.
The concept design goals and assumptions are subject to
R&M CONSULTANTS, INC.
CITY OF SEWARD SMIC BENCH DRAFT FEASIBILITY STUDY 2022
Table 4. Full Build -Out Utility Expansion Order of Magnitude Cost Estimate
SMIC BENCH FEASIBILITY STUDY — UTILITY • ORDER OF MAGNITUDE COST
FULL BUILD -OUT
The cost estimate is a preliminary concept order of magnitude level of completion only. Estimator's contingency is intended to
cover engineering and construction requirements not readily apparent at the concept level of evaluation, inflation, and escalation of
construction costs.
WORK DESCRIPTION
UNIT
QUANTITY
UNIT COST
COST
Water Source,Treatment, Storage, Distribution
Water Source Well Development
Lump Sum
1
$250,000
$250,000
WaterTreatment Plant
Lump Sum
1
$5,000,000
$5,000,000
Treated Water Storage Tank
Gallons
1,500,000
$4
$5,250,000
Water Booster Station
Each
3
$1,000,000
$3,000,000
Water Transmission Mains
Linear Foot
8,500
$325
$2,762,500
Water Distribution Mains
Linear Foot
19,000
$250
$4,750,000
Pressure Reducing Valve Station
Each
2
$450,000
$900,000
Subtotal Water
$21,912,S00
Sewer Collection and Treatment
Gravity Sewer Collection System
Linear Foot
19,000
$275
$5,225,000
Wastewater Treatment Facility
Lump Sum
1
$16,000,000
$16,000,000
Subtotal Sewer
$21,22S,000
Electrical Service and Communications
Electric and Communications Service
$16,500,000
Estimator's Contingency (2S%)
Total Order of Magnitude Estimated Coqr'
$14,909,375
$74,546,0
change as the site is investigated further and the project
evolves.
Electric and Communications
Overhead electric is present along Nash Road adjacent
to the SMIC Bench study area. Its capacity, condition,
and suitability for serving the full build -out of the SMIC
Bench is unknown but upgrading the electric line to meet
demand is assumed feasible. Roadway lighting and other
amenities on the SMIC bench may be considered.The city
power utility, in consultation with Sturgeon Electric Com-
pany Inc. reviewed the SMIC Bench subdivision concept
and developed conceptual costs for providing electrical
and communication services to SMIC Bench. Rough order
of magnitude cost estimate includes the labor, equipment,
materials and engineering for electrical and communi-
cation services to be taken to a transformer on SMIC
Bench, assuming the subdivision developer or homeown-
ers would be responsible to get the services to the meter
$12,500,000 is estimated for electric and an additional
$4,000,000 is estimated for communication, based on
relatively normal installation processes for underground
lines. However, with the presence of bedrock on SMIC
Bench, installing underground utilities would require a
substantially larger price. Therefore, overhead lines are
recommended to reduce the total estimated cost.
Total Order of Magnitude Utility
Development Costs
Table 4 above summarizes an order of magnitude cost
estimate for providing water and sewer service to 750
parcels in the SMIC Bench "full build-out".The order of
magnitude cost estimates should be updated as design
assumptions evolve, and more information becomes avail-
able.Annual O&M and energy costs for operation of the
water and sewer facilities are not included in this estimate
and should be considered in a net present worth evalua-
tion of project feasibility.
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CITY OF SEWARD SMIC BENCH DRAFT FEASIBILITY STUDY 2022
TSUNAMI CENTER SITE POTENTIAL
The City of Seward is within a tsunami hazard zone.
Currently there is no tsunami refuge location east of
the Seward Hwy, resulting in people at the correctional
center, SMIC harbor area, and residential neighborhoods
accessed via Nash Road having to travel to the Seward
Hwy and north to evacuate. If a significant earthquake
event were to compromise the bridge on Nash Road,
access to the Seward Hwy would not be possible.The
DEVELOPMENT CONCEPT
OVERVIEW
The concept design shown in this report is a portion of
Tract G, Fourth of July Creek Subdivision, Number 2,
according to Plat No. 98-04, Seward Recording District,
Alaska. Contours were obtained from publicly available
LiDAR data from the Kenai Peninsula Borough GIS.The
terrain within Tract G is very steep, which makes con-
struction of an access road up the mountain to reach the
SMIC Bench challenging. In addition, the Kenai Peninsula
Borough (KPB) code stipulates, in 14.06.080 — Road
Construction Standards -Construction categories, that a
road that serves greater than 50 lots is designated as a
Category IV road and cannot exceed 10% slope. Design
concepts are based on all rights of way being 60 feet wide,
with road slopes at, or less than, a 10% slope.
In addition to the steep slopes, the soils in the area are
shallow, and most of the site is expected to be near -sur-
face bedrock.This means that all road construction will
include a fair amount of blasting, which increases the
overall construction costs.The north access road that
connects the proposed subdivision with Nash Road will
need to be approximately 6,000 feet long, with switch
backs to accommodate the slope Iimits.A secondary
access road will need to be constructed to meet second-
ary access requirements for subdivisions over 30 Iots.The
estimated cost of the road construction from Nash Road
to the beginning of the proposed subdivision is $2,000
per linear feet of road.This does not include water and
sewer but does include ditches and lighting.
Individual lot development is also limited by steep slopes.
In general, slopes up to 20% are developable, but slopes
between 20% and 30% require additional effort and mon-
ey to develop. Slopes over 30% require specialty measures
SMIC Bench study area is at an elevation above the areas
of potential impact for tsunami events and therefore pres-
ents an opportunity for a tsunami refuge location. Prelim-
inary research to identify grant funding opportunities to
mitigate this hazard revealed that new road construction
intended to facilitate emergency evacuation was not an
eligible use of funding through the existing hazard mitiga-
tion programs.
to develop.The concept lots shown attempt to keep the
slopes within individual lots at 20% or less, however, some
lots are in slopes that exceed this due to necessity.
Lot development is also hampered by the near -surface
bedrock.This site condition inhibits the use of on -site
sewer and water. Instead, the water will need to be
pumped up the hill and stored in tanks at the top. A spe-
cialized sewer treatment system will also be required as
typical leach fields do not work in bedrock.
CONCEPT DESIGN
The concept design features lots with a minimum area
of 10,500 square feet.This size accommodates City of
Seward code requirements for single family, duplexes, and
multi -family houses. In general, for this type of terrain,
more lots are needed to offset the high costs of road and
utility construction.This design creates approximately 674
lots and requires approximately 32,625 feet of local roads
for access within the proposed subdivision.The cost of
road construction is expected to be less than the main
access road at $1,000 per linear foot but will still require
blasting and on -site gravel production.
Another feature of this design is a 12-acre parcel that
can be used for development of aTsunami Evacuation
Area, parking for recreational trails, and potentially as
an elementary school site in the future.Ten-foot-wide
rights of way are also dedicated throughout the proposed
subdivision to allow foot and bicycle traffic to access the
12-acre site without having to traverse completely around
the subdivision using bike paths along the roads.These
corridors would also create more direct access to other
trails that might be developed on the hillside around the
subdivision. See attached SMIC Bench Concept.
R&M CONSULTANTS, INC. 8
CITY OF SEWARD SMIC BENCH DRAFT FEASIBILITY STUDY 2022
The main barrier to achieving a concept design that
financially breaks even or makes a profit is the cost of the
road and utility construction.Within any given subdivision
design, the lots along a section of the subdivision road
that serves those lots must pay for itself at a minimum.
The construction will include the road itself, ditches, bike
paths, lighting, and underground electric, communication,
and gas Iines.These features are considered when gen-
erating a construction cost for a linear foot of road.This
makes the equation simpler when comparing costs of
construction to the market value of each lot created.At a
minimum, the creation of a group of lots, served by a road
corridor that includes all utilities and drainage, would
pay for itself when the lots are sold. If the road costs are
more than other areas within a given market, the market
value of the lots must also increase proportionally, and it
becomes a question of what the market will bear regard-
ing the appeal of the lots.
The concept design requires two access roads that begin
at Nash Road and extend to the top of the SMIC Bench.
Because of the steep slopes between the road and the
Table 5. Estimated Concept Development Cost Summary.
bench, there can be no lot development until the top is
reached.Therefore, there is no offsetting lot sales available
to pay for the construction of the 13,600 feet of road
construction.The estimated cost of this road construc-
tion is $27.41 OM, which does not include the water and
sewer costs.The interior subdivision roads on top of the
bench are expected to cost $32.6M, bringing the total
roads costs to $60M.Water, sewer, electric, and commu-
nication line costs for the entire 674 lot development is
expected to be approximately $70M, driving costs upward
to above $ I OOM.
There are contingencies associated with each construc-
tion estimate. For example, the utilities estimate has a
25% contingency that adds $14.9M to the final cost; the
utility estimate is based on 750 housing units to account
for two or multi -family units on some of the proposed
lots and ensure the water and wastewater systems would
be right -sized for the potential development. Final con-
struction costs could potentially be lower depending on
actual conditions within the site, lowering the breakeven
individual lot value.
Road Construction from Nash Rd. to Bench
$27.4 million
20% ($5.48 million)
Interior Subdivision Roads
$32.6 million
20% ($6.52 million)
Water, Sewer, Electric, Communication Lines
$74.5 million
25% ($14.91 million)
Total Estimated Development Cost
$134.5 million
$24.91 million
Price per Lot to break even on development costs (total
costs/674 lots)
$199,639
FEASIBILITY SUMMARY
The SMIC Bench provides a large, buildable space to ex-
pand housing for the City of Seward.The crux of develop-
ment is constructing access roads up the steep slopes to
the bench and bringing utilities to the site.The expecta-
tion that the entire site is shallow bedrock also increases
the costs of development. Roads and ditches would need
to be blasted, and gravel crushed on -site for use as a
leveling course.The bedrock also eliminates the option of
on -site sewer and water for each lot. Instead, the water
must be pumped up the hill, or a community well would
need to be established at the top of the bench. In either
case, a water storage system would also be required. On -
site sewage systems would not be viable, so a treatment
system would need to be constructed that would meet
the needs of the entire community. Estimated costs for
creating these systems is included in Tables 4 and 5. Utility
Expansion Order of Magnitude Cost Estimate.
The last consideration is the cost to maintain the im-
provements. Roads must be plowed. Sewage systems must
be maintained.Water pumps and storage facilities require
maintenance.With a subdivision such as this, it is impera-
tive that the access road be maintained in a usable state.
Any disruption caused by landslides, avalanches, earth -
R&M CONSULTANTS, INC. 9
CITY OF SEWARD SMIC BENCH DRAFT FEASIBILITY STUDY 2022
quakes, or even on -going maintenance, would disrupt the
entire community that resides in the subdivision.
The SMIC Bench site is one of the only large areas in
Seward that can add a meaningful amount of housing in-
ventory for the city. Once the site is accessed, the bench
offers over 240 acres of space to develop individual lots,
a tsunami evacuation area, a potential school site, and
access to millions of acres of public recreational Iand.The
views from the bench would undoubtedly be stunning on
a clear day, adding value to the created lots, and making
the subdivision one of the more desirable ones in the city.
For a subdivision of this size, a phased approach works
best to avoid incurring the costs of constructing the
entire subdivision prior to selling a single lot.A connec-
tion will need to be made between the north and south
access roads to provide alternate access for the created
Iots.This connection would naturally fall along the south
and west edges of the subdivision, which feature lots likely
to have the greatest appeal and views.The southern and
western lots would be expected to have a higher value
once access and utilities are provided, and construction
costs could be recovered more quickly than lots on the
interior.After dual access is constructed, the rest of the
subdivision could be developed as needed, and as more
funding becomes available.
An additional benefit of phasing the development is that
the SMIC Bench area becomes available sooner to the
community at large for recreational purposes. Once on
the bench, multi -use trails can be established and be
incorporated into future phased development.Trails built
to accommodate a multitude of nonmotorized recre-
ational uses, including cross-country skiing in the winter
and mountain biking in the summer, could crisscross the
bench resulting in trails with breathtaking mountain views
on one side and panoramic views of Resurrection Bay
on the other. Local hiking trails might be built to connect
with established ridge trails to provide further access to
millions of acres of recreational public land and scenic
vistas.The Bench Community, if constructed thoughtfully,
could satisfy the need for housing while creating miles of
recreational opportunities for the citizens of Seward.
The SMIC Bench subdivision has been designed to sup-
port a potential mix of zoning and housing development
types including single family homes, single family with
accessory dwelling units, duplexes, and multifamily devel-
opments to provide for significant and flexible housing
unit expansion.The opportunities offered through the
development of SMIC Bench are feasible and could help
meet multiple high priority needs of the community and
achieve identified goals of the City of Seward.The cities'
Comprehensive Plan and Strategic Plan both encourage
development of new housing, and the city and borough
code support the proposed concept plan.The citizens
of Seward are united in their love for the city and the
outdoor space that surrounds it, but also understand that
the city needs housing for people that live and work in
the city year-round.This subdivision addresses the com-
munity's needs and values by creating housing opportuni-
ties surrounded by expansive nature, featuring panoramic
views, and providing access to recreational opportunities
otherwise available to so few.
R&M CONSULTANTS, INC. 10
NOTES
1. CONTOURS WERE OBTAINED FROM THE KENPI PENINSULA
BOROUGH OIS, AND HAVE NOT BEEN FIELD VERIFIED.
��I 2. CONTOUR INTERVAL IS TEN FEET.
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