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Home My WebLink AboutRES2023-002 USCG Property Sale at SMIC Sponsored by: Bower Public Hearing: January 9, 2023 CITY OF SEWARD,ALASKA RESOLUTION 2023-002 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 THE US COAST GUARD FOR THE SALE OF 1.576 ACRES OF LOT 2A-1 BLOCK 9 FOURTH OF JULY SUBDIVISION, SEWARD MARINE INDUSTRIAL CENTER, KENAI PENINSULA BOROUGH, COASTAL LOT REPLAT, SEWARD RECORDING DISTRICT, THIRD JUDICIAL DISTRICT, STATE OF ALASKA FOR FOUR HUNDRED TWENTY-NINE THOUSAND SEVEN HUNDRED AND FIFTY DOLLARS ($429,750) WHEREAS, the City has been working with the US Coast Guard ("USCG") on a land acquisition site for their Fast Response Cutter("FRC") located in Seward; and WHEREAS, the USCG has requested a section of land located at Seward Marine Industrial Complex ("SMIC") for their Uplands Shore facility for the new FRC; and WHEREAS, the City had the USCG's desired site re-platted as Lot 2A-1, Block 9, Fourth of July Creek Subdivision, Seward Marine Industrial Center, Kenai Peninsula Borough, Coastal Lot Replat, Seward Recording District, Third Judicial District, State of Alaska ("SMIC Lot 2A-1 Block 9"); and WHEREAS, two appraisals were completed: one by the City valuing the parcel at $425,000, and one by the USCG valuing the parcel at $480,000; and WHEREAS, on December 5, 2022, the City received an offer of$480,000 from the USCG for SMIC Lot 2A-1 Block 9; and WHEREAS, included in this offer is to exchange the remaining leasehold interest of the USCG's shore support building located at 1507 X Float Road, Seward, Alaska (the "Building") (Lease L 11-041 and USCG Contract HSCG 89-11-1-0047); and WHEREAS,the City currently owns the land under the Building; and WHEREAS, the USCG appraised value of the Building was determined to be $335,000; and WHEREAS, the USCG is expected to leave the Building with approximately three years left on the leasehold interest; and CITY OF SEWARD,ALASKA RESOLUTION 2023-002 WHEREAS, based on the full appraised value of the Building, the remaining leasehold value is $50,250; and WHEREAS, Seward City Code 7.05.120 states City Council may acquire or dispose of an interest in real property by negotiation,public auction,or sealed bid; and WHEREAS,when the acquisition and move is complete,the USCG will pay the City $429,750 for SMIC Lot 2A-1 Block 9 and the current lease agreement between the City and USCG (Lease L 11-041 and USCG Contract HSCG 89-11-1-0047) will be terminated. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SEWARD,ALASKA that: Section 1. The City Council finds it is in the public's interest to enter into a Purchase and Sale Agreement with the USCG for SMIC Lot 2A-1 Block 9. Section 2. Upon completion of the USCG move to the new Uplands Shore facility located on SMIC Lot 2A-1 Block 9,the lease agreements between the City of Seward and the USCG will be terminated. Section 3. The City Manager is authorized and directed to negotiate on behalf of the City, a purchase and sale agreement with the United States Coast Guard for the Sale of 1.576 Acres for Lot 2A- 1 Block 9 Fourth of July Creek Subdivision,Seward Marine Industrial Center,Kenai Peninsula Borough, Coastal Lot Replat,Seward Recording District,Third Judicial District,State of Alaska,for Four Hundred Twenty-Nine Thousand Seven Hundred and Fifty Dollars($429,750),and containing terms substantially similar to those in the draft agreement attached hereto, subject to further consideration and final approval by the City Council at a later date. Section 4. This resolution will take effect thirty (30) days from the date and posting of adoption. PASSED AND APPROVED by the City Council of the City of Seward, Alaska, this 9th day of January,2023. THE CITY OF SEWARD,ALASKA Sue McClure, Mayor CITY OF SEWARD,ALASKA RESOLUTION 2023-002 AYES: Wells, DeMoss, Barnwell, Calhoon, Finch, Osenga, McClure NOES: None ABSENT: None ABSTAIN: None ATTEST: LOP/ renda J. Ba , C City Clerk (City.•' �F SEyy4% • : SEAL • _ • City Council Agenda Statement a Meeting Date: January 9, 2023 t! To: City Council Through: Janette Bower, City Manager From: Norm Regis, Harbormaster Subject: Resolution 2023-002: Authorizing the City Manager to Enter into and Execute the Purchase and Sale Agreement and Related Documents with the U.S. Coast Guard for the Sale of 1.576 Acres of Lot 2A-1 Block 9 Fourth of July Subdivision, Seward Marine Industrial Center, Kenai Peninsula Borough, Coastal Lot Replat, Seward Recording District,Third Judicial District,State of Alaska for Four Hundred Twenty-Nine Thousand Seven Hundred and Fifty Dollars ($429,750) Background and justification: The City has been working with the Coast Guard since 2014 on a feasibility study to homeport a Fast Response Cutter (FRC) in Seward. Working with many different Coast Guard personnel who regularly change duty stations has drawn out the process. The City started working with a civilian officer, Mr. David Brumley that handles land acquisitions for the Coast Guard. In 2022, the Commandant of the Coast Guard along with Senator Sullivan, which helped negotiations progress rapidly, visited the City. We have found a suitable location for their facilities, the above referenced subject property, commonly known as 3201 Sorrel Road at SMIC. We had the parcel re-platted for the footprint that the Coast Guard needs for their Uplands Shore facility. The City had the lot appraised as part of the acquisition process. The City's appraisal was $425,000.00. The Coast Guard had their own appraisal done, which came in at $480,000, well above the City's appraised value. Working with Mr. Brumley, the U. S. Coast Guard has made an offer of $480,000 to purchase Lot 2A-1 Block 9 Fourth of July Subdivision, Seward Marine Industrial Center, Kenai Peninsula Borough, Coastal Lot Replat, Seward Recording District, Third Judicial District, State of Alaska. This offer is above what the City had expected based on its own appraisal. As part of the offer, the Coast Guard is planning to exchange the remaining leasehold interest in their building at 1507 X Float road. The land is owned by the City and leased to the Coast Guard through lease L11-041, and USCG contract HSCG89-11-1-0047.The appraised value on the building is $335,000. With a remaining leasehold interest of three (3) years,the remaining value that would be exchanged as a portion of the purchase price in $50,250. Due to this offset, the expected revenue of the City from this sale is $429,250 The City Manager is requesting the Council to accept this offer and allow the City Manager to negotiate the remaining terms of the sale. 216 Comprehensive and Strategic Plan Consistency Information This legislation is consistent with (citation listed): Comprehensive Plan: Strategic Plan: Other: Certification of Funds Total amount of funds listed in this legislation: $ This legislation (✓): x Creates revenue in the amount of: $ 429,750.00 Creates expenditure in amount of: $ Creates a savings in the amount of: $ Has no fiscal impact Funds are (✓): Budgeted Line item(s): Not budgeted X Not applicable Fund Balance Information Affected Fund (✓): x 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: 217 Administration Recommendation ✓ Approve Resolution Other: 218