HomeMy WebLinkAboutRes2022-122 CRRC Sponsored by: Bower
Public Hearing: December 12, 2022
CITY OF SEWARD,ALASKA
RESOLUTION 2022-122
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
SEWARD, ALASKA, AUTHORIZING THE CITY MANAGER TO
ENTER INTO AND EXECUTE THE PURCHASE AND SALE
AGREEMENT AND RELATED DOCUMENTS WITH CHUGACH
REGIONAL RESOURCES COMMISSION (CRRC) FOR THE SALE OF
1.52 ACRES OF LAND AND THE RELATED IMPROVEMENTS AND
FIXTURES, PHYSICAL ADDRESS 101 RAILWAY AVENUE, PARCEL
14920016,IN THE AMOUNT OF$500,000
WHEREAS, the Alutiiq Pride Marine Institute (APMI) facility located at 101 Railway
Avenue is currently owned by the City of Seward and has been leased to various entities since
1970; and
WHEREAS, the facility, itself, was constructed by the Alaska Department of Fish and
Game(ADF&G)using funding from the Exxon Valdez Oil Spill (EVOS) settlement; and
WHEREAS, no City funds were used in the construction of the improvements on the
parcel; and
WHEREAS, in 2004, ADF&G transferred ownership, at no cost, to the City of Seward;
and
WHEREAS, the APMI facility has been managed, maintained, and operated by the
Chugach Regional Resources Commission (CRRC), or Qutekcak Native Tribe (one of CRRC's
constituent tribes) for over 25 years, and is currently leased to CRRC through 2069, with an
option for CRRC to renew for an additional 25 years; and
WHEREAS, CRRC's operation of the APMI has provided local jobs and has made
Seward a hub for the natural resource management activities of the Tribal communities of the
Chugach region, and APMI's shellfish aquaculture activities contribute to the health of the
surrounding marine ecosystems, which increases economic industry and opportunity for Seward
and its residents; and
WHEREAS,ownership of the parcel and facility will allow CRRC to expand the footprint
and operations in the coming years and bring in additional economic, scientific, and cultural
opportunities to Seward; and
WHEREAS,the Municipal Land Plan as approved by City Council on October 24, 2022
via Resolution 2022-107 recommends that the City of Seward sell this parcel to CRRC; and
CITY OF SEWARD, ALASKA
RESOLUTION 2022-122
WHEREAS,fair market value as determined by an appraisal found the value of the land
to be $500,000.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE
CITY OF SEWARD,ALASKA that:
Section 1. The Seward City Council finds it is in the public's interest to enter into a
purchase and sale agreement with the Chugach Regional Resources Commission by sole source
negotiation, pursuant to Seward City Code 7.05.120 and 7.05.150, and the essential terms and
conditions in the attached Purchase and Sale Agreement.
Section 2. The attached Purchase and Sale Agreement 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 of this resolution on behalf of the City of Seward.
Section 3. Proceeds from this sale will be appropriated to the Capital Acquisition Fund
account no. 80010-0000-4610.
Section 4. This resolution shall take effect thirty(30)days upon approval.
PASSED AND APPROVED by the City Council of the City of Seward, Alaska, this 12th
day of December, 2022.
THE CITY OF SEWARD,ALASKA
Sue McClure,Mayor
AYES: Osenga, Wells,Finch, Barnwell, Calhoon, McClure
NOES: None
ABSENT: DeMoss
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City Council Agenda Statement
Meeting Date: December 12, 2022 ►
To: City Council
From: Janette Bower, City Manager
Agenda Item: Resolution 2022-122: Authorizing the City Manager to Enter into and
Execute the Purchase and Sale Agreement and Related Documents with
Chugach Regional Resource Commission (CRRC) for the Sale of 1.52
Acres of Land and the Related Improvements, Physical Address 101
Railway Avenue, Parcel 14920016, in the Amount of $500,000
Background and justification:
The Alutiiq Pride Marine Institute (APMI) facility located at 101 Railway Avenue is currently owned
by the City of Seward and has been leased to various entities since 1970. The facility itself was
constructed by the Alaska Department of Fish and Game (ADF&G), using funding from the Exxon
Valdez Oil Spill (EVOS) settlement. As such, no City funds were used in the construction of the
improvements on the parcel. Because EVOS funding was utilized, the Alaska Department of Fish
and Game was required to ensure the facility's continued use for mariculture operation. In 2004,
ADF&G transferred ownership, at no cost, to the City of Seward.
CRRC has continued to operate the facility in a manner that positively contributes to the Seward
community and beyond. Ownership of the parcel and facility will allow CRRC to expand the
footprint and operations in the coming years and bring in additional economic, scientific, and
cultural opportunities.
McSwain and Associates conducted an appraisal on behalf of CRRC in order to determine the fair
market value of the parcel. The appraisal determined the fair market value of the parcel to be
$500,000 and the improvements are valued at $1,075,000. Due to the nature of the funding
source for construction of the facility, City Administration recommends the transaction only take
into consideration the parcel value.
Seward City Code 7.05.150 (b) states, "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."
Due to the funding mechanism which provided for the construction of the facility; it must remain
in use for the purpose of maricultural purposes. Given this restriction, selling the parcel for the
appraised value of the land itself to a non-profit entity who has been operating with excellence
meets the legal criteria described in City Code. Additionally, the current, no-cost lease is in place
until 2069, with CRRC having the option to extend for up to 25 years. Thus, the City will likely
not realize any direct financial benefit at all from the parcel or the structure for at least 47 years.
The Municipal Land Plan as approved by City Council on October 24 recommends that the City of
Seward sell this parcel to CRRC.
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Comprehensive and Strategic Plan Consistency Information
This legislation is consistent with (citation listed):
Comprehensive Plan: 3.2 Land Use
Strategic Plan:
Other: Municipal Land Plan (page 145)
Certification of Funds
Total amount of funds listed in this legislation: $ 500,000
This legislation (✓):
x Creates revenue in the amount of: $ 500,000
Creates expenditure in amount of: $
Creates a savings in the amount of: $
Has no fiscal impact
Funds are (✓):
Budgeted Line item(s): 80010-0000-4610
X Not budgeted
Not applicable
Fund Balance Information
Affected Fund (✓):
General SMIC Electric Wastewater
Boat Harbor Parking F1 Wat F1 Healthcare
Motor Pool Other
Note:amounts are unaudited
Fund Balance/Net position — restricted $
Fund Balance/Net position — unrestricted/unassigned $
Available Unrestricted Cash Balance: $
Finance Director Signature:
Attorney Review
X Yes Attorney Signature:
Not applicable Comments: r- --
Administration Recommendation
XeAdopt Resolution
Other:
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