HomeMy WebLinkAbout01092023 City Council Minutes City of Seward,Alaska City Council Meeting Minutes
January 9, 2023 Volume 42,Page 194
II CALL TO ORDER
The January 9,2023 regular meeting of the Seward City Council was called to order at 7:10
p.m. by Mayor Sue McClure.
OPENING CEREMONY
Police Chief Alan Nickell led the Pledge of Allegiance to the flag.
ROLL CALL
There were present:
Sue McClure, presiding, and
John Osenga Liz DeMoss
Mike Calhoon Randy Wells
Kevin Finch Robert Barnwell
comprising a quorum of the Council; and
Janette Bower, City Manager
Brenda Ballou, City Clerk
Brooks Chandler, City Clerk
Excused—None
Absent—None
CITIZEN COMMENTS ON ANY SUBJECT EXCEPT THOSE ITEMS SCHEDULED FOR
PUBLIC HEARING—None
APPROVAL OF AGENDA AND CONSENT AGENDA
Motion (Osenga/DeMoss) Approval of Agenda and Consent Agenda
McClure moved Resolution 2023-001 up on the agenda to be taken up as the first public hearing
item; there was no objection from council.
Calhoon removed Resolution 2023-006 from the consent agenda.
Motion Passed Unanimous
The clerk read the following approved consent agenda items:
Approval of the December 12,2022 City Council Regular Meeting Minutes.
Ordinance 2023-001,Amending Seward City Code Chapter 3.50.010 to Recognize Easter as a
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January 9,2023 Volume 42,Page 195
Paid City Holiday for Regular Full-time and Regular Part-time Employees.This ordinance was
introduced tonight and will come for public hearing and enactment on January 23, 2023.
Resolution 2023-007, Authorizing The City Manager To Execute R&M Engineering Task
Order No. 2734.28, Completing Required Survey Work And Creating Utility Easements
Within Tracts 1A And 1B, Waterfront Tracts, Mariculture Addition, In The Amount Of
$28,184 And Appropriating Funds.
Resolution 2023-008, Authorizing the City Manager to Approve R&M Engineering Task
Order 2734.27.01 for Engineering Services to Design Water and Sewer Main Extensions on
Ballaine Boulevard, and Appropriating Funds.
Approving the continuation of the Port& Commerce Advisory Board for 2023.
Approving a letter of support for the recertification of the Prince William Sound Regional
Citizens' Advisory Council (PWSRCAC) and authorizing the mayor to sign on behalf of
council.
SPECIAL ORDERS, PRESENTATIONS AND REPORTS
Proclamations and Awards
Recognizing Karen Corrigan for achieving the designation of Certified Administrative
Professional(CAP).
2023 Polar Bear Jump Off Festival Proclamation.
City Manager Report
City Manager Janette Bower said her report was in the packet.
McClure continued to get compliments about the holiday lights.
Harbormaster Norm Regis commended Jim Gudobba for his quick response and assistance
in safely rescuing three young ladies form the harbor waters last week.
Bower said there would be status update on the animal shelter and the Jesse Lee Home
Memorial property at the next meeting.
City Clerk Report
City Clerk Brenda Ballou said she provided a report tonight as a laydown. The report
included information about the upcoming borough special election for borough mayor, as well as
some year end 2022 statistics and a summary of upcoming items that would be going to council.
City of Seward,Alaska City Council Meeting Minutes
January 9, 2023 Volume 42,Page 196
City Attorney Report
City Attorney Brooks Chandler said Happy New Year. December had been a fairly
standard month for his firm.His firm drafted a purchase and sale agreement for the sale of land to the
US Coast Guard. He had been working extensively with electric manager Rob Montgomery on the
due diligence process with Homer Electric Association in preparation for the potential sale of the
electric utility; the due diligence process should be wrapped up by Friday this week.
Other Reports and Announcements—None
Presentations
Presentation from Aviva Braun from the National Oceanic and Atmospheric
Administration (NOAA) on the City of Seward's Tsunami Ready and Storm Ready
Community Designations.
PUBLIC HEARINGS
Resolution 2023-001,Authorizing The City Manager To Enter Into A Consent Assignment To
ZPA,LLC,To The Lease Agreement L04-096 With Juris Mindenbergs,For Lot 3B,Block 1,
Marina Subdivision, City Of Seward, Kenai Peninsula Borough Plat 2005-8, Seward
II Recording District, Third Judicial District, State Of Alaska, To Amend Articles 3, 6.1, 11.2
And 12.3,And Extending The Term Of The Lease For 17 Years,And To Add Two Five Year
Options To Extend.
Motion (DeMoss/Osenga) Approve Resolution 2023-001
Bower said she received the question about why the approval of this lease transfer was going
to city council, and explained the reason was because this business was on city-owned land.
Regis said he received a request from the Mindenburgs to transfer the lease to ZPA,LLC and
was bringing forward all the pertinent documentation.
Notice of the public hearing being posted and published as required by law was noted and the public
hearing was opened.
Kelly Ann Cavaretta, inside the city, said in her opinion,ZPA, LLC appeared to have the
resources necessary to take over the Breeze Inn.Her fear was what would happen to the Breeze Inn if
it were not sold; it may not continue to operate. She did not believe the popularity of the parties
involved should have any bearing in this lease transfer.
Nicole Lawrence,outside the city,wished to speak on behalf of her clients,the Mindenbergs.
The Mindenbergs chose to sell their business to ZPA,LLC and had full confidence in ZPA's ability
to run the business.There had been many potential buyers,and the Mindenbergs believed that ZPA,
LLC would serve the community well.
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January 9,2023 Volume 42,Page 197
Henry West,outside the city,was a current employee at the Breeze Inn.His biggest fear with
this lease transfer was that one person would own the majority of the restaurants in the harbor. At
any point, the owner could sell out to a cruise ship company and then Seward would turn into a
cruise ship town like Skagway and Ketchikan.
Valerie Swinson,inside the city,was an employee at the Breeze Inn and said there had been
talk amongst the employees about their concerns; several of the employees said they would resign,
and this made her worry that the business would be short-staffed this summer and unable to operate
effectively. She said employee concerns related to how paychecks, overtime, and tips would be
handled and that there was no guarantee that the Breeze Inn would stay open year round.
Tim Scheurer,outside the city,was a current employee at the Breeze Inn.He worried about
potential changes that could happen at the Breeze Inn; he had health insurance right now and
wondered if that would continue. He also worried that it might not be kept open year round.
Libby Ferrara, outside the city, was concerned that this was leading toward a potential
monopoly of restaurants in town being owned by one person;it seemed like all the eggs were being
put in one basket.
Bucky Walt, inside the city, had seen a lot of businesses change hands over the year; he
didn't support this particular lease transfer.
Tara Swanson,outside the city,thought this was a legally complicated situation.Rather than
being concerned about a monopoly,she was more concerned with ZPA's ability to operate a business
safely and appropriately. She said visitor reviews online for other ZPA businesses were terrible.
Patrick Lewis,outside the city,was concerned with ZPA's ability to run this business. The
Breeze Inn was too important a property to allow it to be run by someone lacking ability.
Harrick Sullivan, outside the city, said ZPA owned many businesses in town and their
reputation was telling. ZPA owned enough businesses to have an impact on the supply of Seward's
restaurants; putting all the eggs in one basket could potentially expose the community to damage
down the road.
Casie Warner, inside the city, said the Breeze Inn was a staple in the community and she
thought it was clear by the number of people who were speaking up that it was not in the
community's best interest to transfer this lease. The Breeze Inn provided year round work for
employees.
Wanice Cowles,inside the city,visited local restaurants often; she believed ZPA would be
incapable of successfully running the Breeze Inn.
Ristine Casagranda, inside the city,represented ZPA,LLC as the realtor. She had known
the owner of ZPA personally for many,many years and she had enjoyed a professional and respectful
City of Seward,Alaska City Council Meeting Minutes
January 9, 2023 Volume 42,Page 198
relationship with him. She had watched him grow his businesses over the years and was impressed
with the 40-plex housing facility that he built for his employees.She had faith in ZPA's ability to run
the Breeze Inn. Casagranda asked everyone to open their minds and their hearts to recognizing the
good things that he was doing.
Benjamin Kemper,outside the city,had been working at the Breeze Inn for the last 15 years.
He worked hard and was concerned about what the future might hold if this lease was transferred.
Marc Swanson, outside the city, said in a small town when one person owned a lot of
businesses,that person became the face of the community. He urged council to look at the reviews
and customer comments for ZPA businesses and then ask themselves if that was the face they wanted
for the community.
Sol DeMoss, inside the city, said a lot of ZPA's businesses were run seasonally and
employed a lot of J-1 workers; to him, this indicated that all the revenues were leaving the
community.He thought it would be in the community's best interest to have the Breeze Inn continue
to operate year round and they should employ locals.
No one else appeared and the public hearing was closed.
Osenga was concerned about potentially creating a monopoly;he didn't believe it was healthy
for the town.
Finch thanked everyone for coming out tonight.He believed council's job was to protect the
citizens and the economy year round; he believed this lease transfer could negatively affect local
housing, economy, and residents. He was not comfortable with this lease transfer.
Wells wondered what ZPA's history with the city had been like,if the LLC was operating up
to code, and what interactions between the city and ZPA had been like historically. In response,
Regis said this was a new LLC and it was currently up to date with the city.
Wells restated his query to ask,for all the properties owned by this owner throughout the city,
and more specifically the Van Gilder, what was the status of compliance with the city. Fire Chief
Clinton Crites said he had worked with the owner of ZPA over the past four years;currently,all the
businesses were complaint with the city, except for the Van Gilder.
DeMoss thanked everyone for speaking up tonight. She reminded everyone that this lease
transfer needed to be in the community's best interest.
Finch was concerned with the business practices being described by the citizens tonight.He
wanted to do the best thing for the year round locals.
Wells stated there was recently a sign installation attempt at the Marina Motel wherein the
dig had resulted in a water line break;he asked for an update on that situation.Bower said there was
a water line break caused by the dig for which the city issued an invoice for labor and fines,and as of
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January 9, 2023 Volume 42,Page 199
last week all fees and fines for that damage had been paid by the business owner.Wells wondered if
the proper permits had been in place and if a locate had been requested before the sign installation
work began. Crites said there was a building permit issued two or three years ago for the sign that
had included an architectural rendering of how the sign would be installed.Public Works Director
Doug Schoessler said the dig was in a state right of way and there had not been a current dig permit
in place issued by the city or the state.
Barnwell appreciated the public coming out to speak tonight. He was concerned that the
business owner was not present at tonight's meeting,that none of ZPA's employees came forward to
speak in his favor,and that the public testimony had not been positive.He worried about how ZPA's
other businesses were being run;council had the responsibility to make sure this lease transfer was
done right.
Finch said that because this was on city-owned property,if something bad happened,the city
could be held liable.
Calhoon thanked everyone for speaking on both sides of this issue;getting all the information
possible was always a good thing. He reminded council to keep emotions out of this decision, and
think through the possible ramifications of their decision. In a town this size, he wondered if this
lease transfer was in the best interest of the community. Regardless of how good a business person
anyone was,allowing one business owner to dominate certain industries was something to consider.
McClure said having one person own so many businesses in a small town was a monopoly
and was problematic; Seward was a tourist town and tourists paid attention to what they saw and
participated in.The people of the city owned the land for this lease;tonight's issue was to determine
what was in the best interest of the community.
Motion Failed Unanimous
Council recessed the meeting at 8:14 p.m.
Council resumed the meeting at 8:21 p.m.
Ordinances for Enactment
Ordinance 2022-016, Amending Seward City Code; 15.10.140(b)(49) Defmitions, Lodging;
15.10.226(b) Land Uses Allowed,Modifying And Including Additional Regulations Relating
To Lodging,Short-Term Rentals;And 15.10.226 Land Uses Allowed Table.This ordinance was
introduced on November 28, 2022 and was postponed in order to have a joint special meeting with
the Planning & Zoning Commission to further analyze and discuss the details of this ordinance.
Earlier this evening council had a joint special meeting with P&Z in a Committee of the Whole to
discuss this ordinance. There was one amendment made to the ordinance when they came out of
Committee of the Whole. The original motion to enact was made by DeMoss and seconded by Wells;
the main motion is back on the floor.
City of Seward,Alaska City Council Meeting Minutes
January 9, 2023 Volume 42,Page 200
McClure asked that the amendment made earlier tonight at the special meeting be read aloud
for the public.City Clerk Brenda Ballou stated the amendment was to exclude all language related
to Auto Commercial, Harbor Commercial, and Central Business for the entire ordinance of the
proposed amendments and to adjust the Land Use Table accordingly.
Notice of the public hearing being posted and published as required by law was noted and the public
hearing was opened.
Kelly Ann Cavaretta, inside the city, thanked everyone for the work that went into this
ordinance.Her home was zoned Urban Residential and that had been an intentional decision on her
part because she wanted the flexibility that came with that zone. She was aware of the housing crisis
in Seward,and was happy to see work being done to address the problem. She believed there was a
need to curb people from buying homes purely as investment properties inside city limits;however,
it needed to be done in a manner that was fair and equitable to existing homeowners who had
invested their life savings into their properties. Cavaretta proposed an idea: for existing property
owners,whether the property was developed or not,the current zoning should be grandfathered in;
then any new purchase or sale after the passage of this ordinance would be done under the new zone.
Nicole Lawrence, outside the city, said the amendment left out Office Residential, which
was an important part of the principally commercial district. There was one item related to the
amendment that she wanted to expand on: in a commercial district, for a multi-family property that
was not operating as a short-term rental and was purchased,the purchaser had to wait for four years
to apply for a short-term rental permit. Lawrence thought this was a great rule, but by doing the
amendment,the result was that this rule would be eliminated. She believed this rule would be good
to keep because it would provide some protection for long term renters so that a new buyer could not
kick them out to switch to a short term rental business.
Doug Schoessler,inside the city, also thought Office Residential should be included in the
amendment. He appreciated the suggestion made to grandfather in the original zone for existing
property owners. He also encouraged council to further investigate the idea of setting caps.
Nicole Lawrence,outside the city,said Urban Residential was the zone that would be most
affected by this ordinance. 26% of short term rentals were located in Urban Residential zone; city
code dictated that Urban Residential was principally residential. Lawrence said under the current
circumstances,Urban Residential would be the most negatively affected.
No one else appeared and the public hearing was closed.
Motion to Amend (Calhoon/Wells) Amend Ordinance 2022-016 by excluding all
Office Residential language in the proposed
• amendments and adjust the Land Use
Table accordingly.
DeMoss supported this and said things could be fine-tuned in the future as Seward continued
to grow.
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January 9, 2023 Volume 42,Page 201
Motion to Amend Passed Unanimous
Finch wondered how to address putting a cap on short term rentals.Osenga suggested taking
up to topic of setting a cap at a future meeting,separate from this ordinance.In response to McClure,
Bower said a cap discussion would go through the Planning&Zoning Commission and then come to
council for consideration.
Barnwell wondered what could be done to put some teeth into this ordinance. Bower said
there had been a fine established for code violations in Title 1 when it was updated in 2022.Bickling
said he pursued compliance through his office, and sometimes had to use the city attorney;
compliance processes required a significant amount of time and dedication, but Bickling had had
success with his efforts.
Main Motion Passed Unanimous
Ordinance 2022-017,Amending Seward City Code Title 4—Elections.
Motion (Osenga/DeMoss) Enact Ordinance 2022-017
Ballou stated this ordinance would bring Seward's code up to date as part of the
recodification effort.
Notice of the public hearing being posted and published as required by law was noted and the public
hearing was opened. No one appeared and the public hearing was closed.
Motion to Amend (McClure/Calhoon) Amend Ordinance 2022-017 in Section
4.01.035 by striking "30 days'" and
replacing it with "60 days'".
In response to McClure,Ballou said this amendment would allow for proper public noticing.
Motion to Amend Passed Unanimous
Motion to Amend (McClure/DeMoss) Amend Ordinance 2022-017 in Section
4.05.020 under items(c)and(d)by striking
the words "non-code ordinance" and
replacing it with "resolution".
In response to McClure, Ballou said Seward was a Home Rule municipality and was not
required to pass a non-code ordinance to put forward a ballot proposition. Chandler said it was
council's choice to use a non-code ordinance or a resolution.
Motion to Amend Passed Unanimous
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January 9, 2023 Volume 42,Page 202
Motion to Amend (McClure/Osenga) Amend Ordinance 2022-017 in Section
4.01.010 under the definition for
Questioned Voter by striking the words,
"...a voter who has received an absentee
ballot and does not turn it in when voting
at his/her precinct on election day...".
In response to McClure,Ballou said a voter could receive an absentee by mail ballot,but the
voter was under no obligation to return that ballot by mail; the voter could change their mind and
vote absentee in person,or in person on election day.There were appropriate mechanisms in place to
determine if a voter had voted more than once.
Finch asked for an explanation on the mechanisms that were in place to prevent a voter from
voting by mail as well as in person.Ballou said the voter register was marked for the election board
to show that a voter had already voted absentee in person or absentee by mail; that let the election
board know who already voted.
Motion to Amend Passed Unanimous
Main Motion Passed Unanimous
Ordinance 2022-018, Amending The Land Use Plan To Rezone Lot AT, Forest Acres
Subdivision,Located At 2607 Dimond Blvd,From Rural Residential(RR)Zoning District To
Resource Management(RM) Zoning District.
Motion 0 Enact Ordinance 2022-018
City Planner Courtney Bringhurst said this rezone was requested in order to accommodate
a boat storage and repair business which was not allowed in a Rural Residential zone.Rezoning this
particular property to Resource Management would be a solution and would not be considered spot
zoning because the properties to the north and east were already zoned Resource Management,and
city code allowed for the rezoning of land less than one acre.As well,the adjacent properties were at
the same elevation, which lent to being in a flood area which was not suitable for developing for
housing. Bringhurst recommended this rezone be approved.
Notice of the public hearing being posted and published as required by law was noted and the public
hearing was opened. No one appeared and the public hearing was closed.
Motion Passed Unanimous
Resolutions Requiring Public Hearing
111 Resolution 2023-002,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
City of Seward,Alaska City Council Meeting Minutes
January 9, 2023 Volume 42,Page 203
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).
Motion (DeMoss/Calhoon) Approve Resolution 2023-002
Regis said this had been a long process with the US Coast Guard, and Senator Sullivan had
helped a lot.Regis said when the land transfer happened,the city would take ownership of the USCG
building on X Float Road.
Bower commended Regis for his work on this long term project.
Notice of the public hearing being posted and published as required by law was noted and the public
hearing was opened. No one appeared and the public hearing was closed.
Motion Passed Unanimous
Resolution 2023-003, Authorizing The City Manager To Sign A Consent To Assignment To
Jag Alaska Inc.,Of Lease Agreement L09-126 With Alaska Logistics LLC,For Lot 2,Block 3,
Fourth Of July Creek Subdivision, Seward Marine Industrial Center, Kenai Peninsula
Borough And Recorded As Plat No. 97-108 In Seward Recording District, Third Judicial
District, State Of Alaska.
Motion (Osenga/DeMoss) Approve Resolution 2023-003
Regis said Alaska Logistics requested to transfer their lease to Jag Alaska across the bay at
the Seward Marine Industrial Center (SMIC). Jag planned to use the property to expand their
operations.
Notice of the public hearing being posted and published as required by law was noted and the public
hearing was opened. No one appeared and the public hearing was closed.
DeMoss said in her understanding, whenever older city leases granted for 99 years came
before council for consideration, as this lease transfer was coming tonight, council's goal was to
amend it to a 30 year lease.
Motion to Amend (DeMoss/Calhoon) Amend Resolution 2023-003 in the lease
agreement by striking "99 years" and
replacing it with"30 years plus two 5-year
extensions".
Regis concurred and said council had decided some years ago that the city would no longer
issue 99-year leases,and any time a lease came before council,the lease should be amended to be on
a level playing field with all the other leases.
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January 9,2023 Volume 42,Page 204
Motion to Amend Passed Unanimous
Barnwell wondered how Jag was addressing employee housing concerns.Regis said Jag had
purchased the old chicken farm near Bear Creek and built a bunkhouse to use for employee housing;
they also owned other employee housing properties in town.
Main Motion Passed Unanimous
Resolution 2023-004, Recognizing The 2023 City of Seward Harbor Tariff.
Motion (DeMoss/Osenga) Approve Resolution 2023-004
Regis said the harbor tariff was being updated for Consumer Price Index(CPI). Following
council approval,he was required to submit the tariff to the Federal Maritime Commission(FMC).
Notice of the public hearing being posted and published as required by law was noted and the public
hearing was opened. No one appeared and the public hearing was closed.
Motion Passed Unanimous
Resolution 2023-005, Adopting the Calendar Year 2023 City of Seward Tariff.
Motion 0 Approve Resolution 2023-005
Bower said the tariff was being updated for water, sewer, and electric by 2.1% CPI.
Notice of the public hearing being posted and published as required by law was noted and the public
hearing was opened. No one appeared and the public hearing was closed.
Motion Passed Unanimous
UNFINISHED BUSINESS—None
NEW BUSINESS
Resolutions
Resolution 2023-006,Amending the City of Seward 2023 Fee Schedule,Adding a Short-Term
Rental Permit Fee of$50 to the Community Development Fees.
Motion (Osenga/DeMoss) Approve Resolution 2023-006
Bidding said a standard industry practice for permit fees to equate to one night's rental.This
fee would be charged for each unit that was permitted; for example, a five unit plex would be
charged $250 each year, and a bed and breakfast in a house would pay$50 per year.
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January 9, 2023 Volume 42,Page 205
Calhoon said the lodging businesses in town created a lot of revenue and had to compete with
lodging businesses outside city limits that were not required to pay the same fees. Calhoon did not
support adding another fee to lodging businesses in town when they already paid a$30 life safety
inspection fee and a$30 business license fee.
Osenga wondered what the purpose of this fee was. In response,Bickling said the city paid
over $6,000 per year to Harmari for their compliance services, and the Community Development
Department was also launching an online permit application for short-term rentals; the review
process for short term rentals was time consuming.Bickling said the intent was not to make money,
but to offset some expenses.
Motion Passed Yes: Barnwell, Osenga, Finch, McClure
No: DeMoss,Calhoon,Wells
Other New Business
Set the timing for the 2023 annual evaluations for the city attorney, city clerk, and city
manager; Mayor appoint two council members as the Tabulation Team for each evaluation.
Council set the annual evaluations as follows:
City Clerk February 13, 2023 McClure, Wells
City Manager February 27, 2023 Osenga, Finch
City Attorney March 13, 2023 DeMoss, Barnwell
McClure directed council to submit their completed evaluations on paper,no later than the
Friday preceding the council meeting at which the evaluations would be conducted, and to turn in
the completed evaluations at the Human Resources office.
INFORMATIONAL ITEMS AND REPORTS
Boards and Commissions Minutes
Port & Commerce Advisory Board (PACAB) minutes from the September 7, 2022,
October 5,2022 and November 2,2022 PACAB Meetings.
Historic Preservation Commission minutes from the October 13,2022 HP Meeting.
Other Items
Providence Financials for October& November, 2022.
CITIZEN COMMENTS
City of Seward,Alaska City Council Meeting Minutes
January 9, 2023 Volume 42,Page 206
Ristine Casagranda,inside the city,wished to speak on behalf of her client,ZPA,LLC.She
said not all the testimony given tonight had been factual,and that ZPA had fixed up every property it
had purchased. She said the water line break happened because ZPA's contractor started doing the
work without notifying ZPA prior to digging;the contractor should have been held responsible,but
ZPA had paid the bill. Casagranda asked council to reconsider this resolution. Regarding the Van
Gilder Hotel,the only item that was out of compliance was the windows,and those windows were on
the building when the hotel was purchased;the window repairs had been delayed due to COV1D-19.
She implored council to think about how their decision was made and the effects it would have.
Callie Bacon, inside the city, wished to speak on behalf of the Mindenbergs. The
Mindenbergs had been successful business owners of the Breeze Inn and had employed Seward
locals for over 30 years. The property had been on the market for over eight months and a lot of
expenses had already been incurred by both parties.The Mindenbergs had selected ZPA to purchase
the property. She urged someone on council to reconsider the ordinance and give the Mindenbergs a
chance to retire.
Nicole Lawrence,outside the city, spoke on behalf of the Mindenbergs. The Mindenbergs
purchased the Breeze Inn in 1978; they took a small run-down hotel and turned it into a 100-room
hotel that was an asset to the community. Juris Mindenbergs put his blood, sweat, and tears into a
place where people would want to stay and work. The only viable offer came from ZPA. The only
reason the Breeze Inn was successful was due to the loyalty of the staff. ZPA committed to the
Mindenbergs that he would treat his staff properly and with respect. If the city denied this lease,the
Mindenbergs would suffer great financial hardship. Lawrence said ZPA had presented himself
throughout this transaction with respect. She thought council's action tonight was discriminatory.
Nate Smith,outside the city,said what tonight's meeting told him was that 30 citizens could
march into council with their opinions about how they didn't like a certain person,and council would
say it was in the best interest of the community. He thought this decision could end up in litigation,
and the city would use tax dollars to pay for that litigation;he didn't want his tax dollars to pay for
litigation.He thought the public comments tonight demonically lambasted the business owner,and
suggested that some back-room deals had been made with council. Smith said he knew that council
had had a meeting with the city attorney, and the attorney had advised council on what to say;
everything was well-worded and well-rehearsed to say the decision was made because the people had
spoken.He said the city got their money's worth out of the attorney. Smith said if council had to give
depositions about back-room deals they made,they would be in a lot of trouble.He wondered if the
next buyer would be character-assassinated as well. He said he didn't know where this was headed,
but he thought it set a precedent.The next time he wanted something done,he was going to march 30
people into council and council had better do it for the people.
COUNCIL AND ADMINISTRATION COMMENTS & RESPONSE TO CITIZEN
COMMENTS
111 Barnwell said this was an emotional issue, and he was sorry that not everyone was
comfortable with council's decision. He resented the suggestion that council made any back-door
City of Seward,Alaska City Council Meeting Minutes
January 9, 2023 Volume 42,Page 207
deals;he didn't observe anything to suggest that kind of thing.He said council worked hard to have
integrity and he believed they tried their best.
DeMoss appreciated Barnwell's comments. She said it was very important to her that she be
honest and transparent and that her participation in council was open.In response to the citizen who
suggested back-door deals, she said there were no back-door deals going on. She said this council
was extremely honest and transparent and worked very hard to listen to the community and make
decisions based on what they believed was best for the health of the community.DeMoss respected
all the people who testified at the meeting tonight;there were a lot of other people who did not speak
because they feared retaliation. She was pro-business and pro-growth for Seward,and was sorry the
transaction was not working out for the realtors because she knew there would be financial loss.She
said since she started her business 15 years ago, she recognized that not all business was good
business.
Osenga wished everyone a Happy New Year. The Polar Bear Jump Off Festival would be
this weekend;enjoy and support the activities.He thanked NOAA for the readiness recognition.He
said he had no back-room or back-door talks, he did not speak to any lawyer or the city attorney
about his decision, and he came to tonight's meeting with an open mind.
McClure thanked everyone who came out and spoke their minds tonight. She said every
decision council made would have pros and cons to different people; that was the burden council
carried as elected officials. She said some of council's decisions were agonized over a lot.
ADJOURNMENT
The meeting was adjourned at 9:43 p.m.
renda Ballou Sue McClure
City Clerk Mayor
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