HomeMy WebLinkAboutRes2023-099 Seward City Tours Land PurchaseSponsored by: Sorensen
CITY OF SEWARD, ALASKA
RESOLUTION 2023-099
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 SEWARD CITY TOURS FOR THE SALE OF
1.40 ACRES OF LAND AND THE RELATED IMPROVEMENTS AND
FIXTURES, PHYSICAL ADDRESS 905 SEA LION AVENUE, PARCEL
1452608, IN THE AMOUNT OF $290,000
WHEREAS, on August 4th, 2023 Seward City Tours sent the City Manager a letter
requesting discussion with City Council regarding a proposal to purchase the North Portion of Lot
10A, Fort Raymond Subdivision Replat No. 1 905 Sea Lion Avenue from the City of Seward; and
WHEREAS, the parcel is 1.4 acres, bordered on the north by Sea Lion Avenue, Seward
Highway to the East, and Dimond Blvd to the West; and
WHEREAS, a June 2022 appraisal determined the fair market value of the parcel to be
$290,000; and
WHEREAS, City Council discussed this possible transaction during the August 14, 2023
Regular meeting; and
WHEREAS, following the discussion, City Council voted unanimously to direct the City
Manager to bring a resolution to a future meeting to approve the purchase and sale agreement;
and
WHEREAS, Seward City Tours intends to construct a multi -use facility on the parcel for
the purpose of vehicle storage, maintenance, and employee housing.
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 Seward City Tours 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. Proceeds from this sale will
be appropriated in to the Capital Acquisition Fund 80010-0000-4610.
Section 3. This resolution shall take effect immediately upon adoption.
CITY OF SEWARD, ALASKA
RESOLUTION 2023-099
PASSED AND APPROVED by the City Council of the City of Seward, Alaska, this
11`" day of September 2023.
THE CITY OF SEWARD, ALASKA
guaktrwi.
Sue McClure, Mayor
AYES: Osenga, DeMoss, Finch, Wells, Calhoon, McClure
NOES: None
ABSENT: Barnwell
ABSTAIN: None
VACANT: None
ATTEST:
vC/
Kris Peck, City Clerk
(City Seal)
x
City Council Agenda Statement
Meeting Date: September 11, 2023
To: City Council
From: Kat Sorensen, City Manager
Subject:
Resolution 2023-099: Authorizing The City Manager To Enter Into And Execute
The Purchase And Sale Agreement And Related Documents With Seward City
Tours For The Sale Of 1.40 Acres Of Land And The Related Improvements And
Fixtures, Physical Address 905 Sea Lion Avenue, Parcel 14502608, In The
Amount Of $290,000
Background and justification
On August 4th, Seward City Tours sent the City Manager a letter requesting discussion with City Council
regarding a proposal to purchase the North Portion of Lot 10A, Fort Raymond Subdivision Replat No. 1
905 Sea Lion Avenue from the City of Seward. The parcel is 1.4 acres, bordered on the north by Sea Lion
Avenue, Seward Highway to the East, and Dimond Blvd to the West. A June 2022 appraisal determined
the fair market value of the parcel to be $290,000.
Seward City Tours intends to construct a multi -use facility on the parcel for the purpose of vehicle storage,
maintenance, and employee housing.
During the Regular City Council meeting on August 14th, City Council discussed the possible sale of the
parcel to Seward City Tours and voted unanimously to direct the City Manager to bring a resolution back
to City Council to approve the purchase and sale agreement. This resolution fulfills that direction from City
Council.
Comprehensive and Strategic Plan Consistency Information
This legislation is consistent with (citation listed):
Comprehensive Plan:
Strategic Plan:
Other:
Total amount of funds listed in this legislation: $ 290,000
This legislation (✓):
Creates revenue in the amount of:
Creates expenditure in amount of:
Creates a savings in the amount of:
Has no fiscal impact
Funds are (✓):
Budgeted Line item(s):
Not budgeted
Not applicable
x
$ 290,000
$
$
Affected Fund (✓):
General
Boat Harbor
Motor Pool
x
Available Fund Balance
x
Fund Balance Information
SMIC Electric Wastewater
Parking Water Healthcare
Other Funds will go into the
Capital Acquisition
Account
Attorney Signature:
Not applicable Comments:
Yes
$
Note: amounts are unaudited
Finance Director Signature:
c..„... .e,,.1 t.,J
Administration Recommendation
x
Adopt Resolution
Other:
MACSWAIN ASSOCIATES LLC
4401 Business Park Boulevard, Suite 22, Anchorage, Alaska 99503
APPRAISAL REPORT
City of Seward Land: 60,984± SF (1.40± Acres)
North Portion of Lot 10A, Fort Raymond Subdivision Replat No. 1
905 Sea Lion Avenue, Seward, Alaska
Appraised Land
60,984± SF (1.40± Acres)
Date of Value: June 28, 2022
Submitted To:
Janette Bower, City Manager
City of Seward
PO Box 167
Seward, AK 99664
File No. 22-3700
MacSwain Associates LLC
4401 Business Park Blvd., Suite 22
Anchorage, Alaska 99503
Phone: 907-561-1965
Fax: 907-561-1955
s.macswain@macswain.com
July 1, 2022
Janette Bower, City Manager
City of Seward
PO Box 167
Seward, AK 99664
Re: City of Seward Land: 60,984± SF (1.40± Acres)
North Portion of Lot 10, Fort Raymond Subdivision Replat No. 1
905 Sea Lion Avenue, Seward, Alaska
Dear Ms. Bower:
We have prepared an Appraisal Report of the above -referenced City of Seward -owned land
fronting the Seward Highway in Seward, Alaska. The appraised parcel consists of 60,984±
square feet or 1.40± acres of vacant land, which is legally part of a 2.116-acre lot. It is a
hypothetical condition of the appraisal that the appraised 1.40± acres is legally separated
and developable to its highest and best use. The purpose of the appraisal is to assist the
client with a potential sale of the subject 1.40± acres. The type of value estimated is market
value. The property rights appraised is the fee simple estate. The report is prepared in
accordance with the Uniform Standards of Professional Appraisal Practice (USPAP).
Based on the data, reasoning, and analysis that follows, the market value of the appraised
property, as of June 28, 2022, is estimated as follows.
TWO HUNDRED NINETY THOUSAND DOLLARS $290,000
We direct your attention to the Scope of Work, Certificate of Appraisal, and Assumptions
and Limiting Conditions for an explanation of restrictions and limitations of this report. We
also direct your attention to the hypothetical condition of the appraisal. If you have any
questions, please contact our office.
Respectfully submitted,
AK
Alex Kleinke
Steve MacSwain, MAI
State of Alaska Certificate No. 148873 State of Alaska Certificate No. 42
22-3700 — North Portion of Lot 10A, Fort Raymond Subdivision Replat No. 1, Seward, Alaska
MacSwain Associates LLC
Appraiser Certification
The undersigned certifies that to the best of their knowledge and belief:
4 The statements of fact contained in this report are true and correct.
4 The reported analyses, opinions, and conclusions are limited only by the reported
assumptions and limiting conditions, and are our personal, impartial, and unbiased
professional analyses, opinions, and conclusions.
4 We have no present or prospective interest in the property that is the subject of this report,
and no personal interest with respect to the parties involved.
4 We have no bias with respect to the property that is the subject of this report or to the parties
involved with this assignment.
4 We have not performed any services as an appraiser or in any other capacity, regarding the
property that is the subject of this report, within the three-year period immediately preceding
acceptance of this assignment.
4 Our engagement in this assignment was not contingent upon developing or reporting
predetermined results.
4 Our compensation for completing this assignment is not contingent upon the development
or reporting of a predetermined value or direction in value that favors the cause of the client,
the amount of the value opinion, the attainment of a stipulated result, or the occurrence of a
subsequent event directly related to the intended use of this appraisal.
4 The reported analyses, opinions, and conclusions were developed, and this report has been
prepared, in conformity with the requirements of the Code of Professional Ethics and
Standards of Professional Appraisal Practice of the Appraisal Institute.
4 The reported analyses, opinion, and conclusions were developed, and this report has been
prepared, in conformity with the Uniform Standards of Professional Appraisal Practice.
4 The use of this report is subject to the requirements of the Appraisal Institute relating to
review by its duly authorized representatives.
4 Alex Kleinke inspected the property on June 28, 2022. Steve MacSwain, MAI is familiar
with the property from other appraisal assignments in Seward.
4 No one provided significant real property appraisal assistance to the persons signing this
certification.
4 As of the date of this report, Alex Kleinke and Steve MacSwain, MAI are certified General
Real Estate Appraisers in the State of Alaska and have completed the education requirements
through June 2023.
4 As of the date of this report, Steve MacSwain, MAI has completed the Standards and Ethics
Education Requirements for Designated Members of the Appraisal Institute.
22-3700 — North Portion of Lot 10A, Fort Raymond Subdivision Replat No. 1, Seward, Alaska
MacSwain Associates LLC
As of the date of this report, Alex Kleinke has completed the Standards and Ethics Education
Requirements for Practicing Affiliates of the Appraisal Institute.
As of the date of this report, Steve MacSwain, MAI has completed the continuing education
program for Designated Members of the Appraisal Institute.
As of the date of this report, Alex Kleinke has completed the continuing education program
for Practicing Affiliates of the Appraisal Institute.
Steve MacSwain, MAI
(tki)6
7/1/22
Alex Kleinke Date
State of Alaska Certificate No. 42 State of Alaska Certificate No. 148873
22-3700 — North Portion of Lot 10A, Fort Raymond Subdivision Replat No. 1, Seward, Alaska
MacSwain Associates LLC
Table of Contents
Title Page
Transmittal Letter
Appraiser Certification
Table of Contents
Appraisal Summary 1
Chapter 1: Definition of the Appraisal Problem 5
Chapter 2: Seward Area and Market Summary 9
Chapter 3: Neighborhood Description and Analysis 13
Chapter 4: Site Description and Analysis 15
Chapter 5: Highest and Best Use Analysis 18
Chapter 6: Land Valuation - Sales Comparison Approach 20
Addendum
Assumptions and Limiting Conditions
Hypothetical Condition
Appraiser Qualifications
22-3700 — North Portion of Lot I0A, Fort Raymond Subdivision Replat No. 1, Seward, Alaska
MacSwain Associates LLC
Appraisal Summary
Value Type:
Property Type:
Property Rights Appraised:
Location:
Legal Description:
Tax Parcel No:
Physical Address:
Property Owner:
Zoning:
Site Description:
Topography:
Access/Frontage:
Utility Service:
Soil and Subsurface
Conditions:
Hazardous Substances:
Wetland Designation:
Flood Hazard Restrictions:
Easements and Restrictions:
Market value
Vacant Institutional -zoned land
Fee simple estate
Southwest corner of Seward Highway and Sea Lion Avenue,
fronting east side of Dimond Boulevard, near Seward
Highway MP 2.1, approximately one mile north of the
Seward Small Boat Harbor, Seward, Alaska
North Portion of Lot 10A, Fort Raymond Subdivision Replat
No. 1, Plat No. 87-12.
145-026-08 (portion)
905 Sea Lion Avenue, Seward, Alaska
City of Seward (per KPB)
INS — Institutional
Irregular -shaped parcel containing 60,984± square feet or
1.40± acres per client
Generally level to undulating/sloping, near to slightly below
access grade
No direct Seward Highway access, ingress/egress
constructed off Sea Lion Avenue (north boundary) and
Dimond Boulevard (west boundary), property has 206± feet
frontage on Seward Highway, 325± feet frontage on Sea
Lion Avenue, 229± feet frontage on Dimond Boulevard
Public water, sewer, electricity, and telephone
Based on observations of surrounding development, soils
appear to be suitable for development
None known
None
Zone X, an area outside the 0.2% annual chance floodplain
Per plat 87-12: 30-foot utility easement along east boundary
and 25-foot utility easement along west boundary
22-3700 — North Portion of Lot 10A, Fort Raymond Subdivision Replat No. 1, Seward, Alaska 1
MacSwain Associates LLC
Sale/Lease History:
Highest and Best Use:
Extraordinary Assumptions:
Hypothetical Condition:
Date of Property Inspection:
Effective Appraisal Date:
Date of Report:
No known sales or leases of property in past three years
Commercial development
None
The appraised 1.40± acres is legally separated and developable
to its highest and best use.
June 28, 2022
June 28, 2022
July 1, 2022
Market Value Estimate: $290,000 ($4.75±/SF)
22-3700 — North Portion of Lot 10A, Fort Raymond Subdivision Replat No. 1, Seward, Alaska 2
MacSwain Associates LLC
Subject Property Photographs
Date: June 28, 2022
Taken By: Alex Kleinke
Southeast view of property from corner of Sea Lion Avenue and Dimond Boulevard
North view of small clearing on property
22-3700 — North Portion of Lot 10A, Fort Raymond Subdivision Replat No. 1, Seward, Alaska 3
MacSwain Associates LLC
Subject Property Photographs
Date: June 28, 2022
Taken By: Alex Kleinke
East view of clearing onto property from Dimond Boulevard
Southwest view along east boundary and Seward Highway frontage
22-3700 — North Portion of Lot 10A, Fort Raymond Subdivision Replat No. 1, Seward, Alaska 4
MacSwain Associates LLC
Chapter 1: Definition of the Appraisal Problem
Overview
We prepare an Appraisal Report that analyzes a 60,984± square foot
(1.40± acre) parcel located approximately one mile north of the Seward
Small Boat Harbor. Currently, the appraised land is part of a 2.116-acre
parcel owned by the City of Seward. Thus, we invoke a hypothetical
condition that the appraised 1.40± acres is legally separated and
developable to its highest and best use. The purpose of the appraisal is
to assist the City of Seward with selling the subject property to Seward
City Tours; however, the City of Seward is the only intended user of
this Appraisal Report. The report is intended to comply with the
Uniform Standards of Professional Appraisal Practice (USPAP).
Value Type Market value
Client City of Seward
Intended Use of Assist client with selling property to Seward City Tours
Appraisal Report
Intended User of City of Seward, property owner
Appraisal Report
Property Inspection
Date
Effective Appraisal
Date
June 28, 2022
June 28, 2022
Date of Report July 1, 2022
Identification of Real
Estate Appraised
The appraised property contains 1.40± acres, which is a portion of a
2.116-acre vacant lot. The Kenai Peninsula Borough identifies the
property as Parcel ID 145-026-08 and the physical address as 905 Sea
22-3700 — North Portion of Lot 10A, Fort Raymond Subdivision Replat No. 1, Seward, Alaska 5
MacSwain Associates LLC
Definition of
Market Value
Property Rights
Appraised
Lion Avenue, Seward, AK. The land fronts the west side of Seward
Highway, approximately one mile north of the Small Boat Harbor.
The type of value estimated is market value. Market value is defined as
follows.
The most probable price which a property should bring in a competitive
and open market under all conditions requisite to a fair sale, the buyer
and seller each acting prudently and knowledgeably, and assuming the
price is not affected by undue stimulus. Implicit in this definition is the
consummation of a sale as of a specified date and the passing of title
from seller to buyer under conditions whereby:
a. buyer and seller are typically motivated;
b. both parties are well informed or well advised, and acting in what
they consider their own best interests;
c. a reasonable time is allowed for exposure in the open market;
d. payment is made in terms of cash in US dollars or in terms of
financial arrangements comparable thereto; and
e. the price represents the normal consideration for the property
sold unaffected by special or creative financing or sales
concessions granted by anyone associated with the sale. 1
We estimate the market value of the fee simple estate, which is defined
as follows.
Absolute ownership unencumbered by any other interest or estate,
subject only to the limitations imposed by the governmental powers of
taxation, eminent domain, police power, and escheat.2
1 Appraisal of Real Estate, Fifteenth Edition (2020), by the Appraisal Institute, p. 49.
2 Appraisal of Real Estate, Fifteenth Edition (2020), by the Appraisal Institute, p. 60.
22-3700 — North Portion of Lot 10A, Fort Raymond Subdivision Replat No. 1, Seward, Alaska 6
MacSwain Associates LLC
Legal Description The property is a portion of a 2.116-acre parcel. For the purpose of this
appraisal assignment, the legal description is as follows:
North Portion of Lot 10, Fort Raymond Subdivision Replat No. 1, Plat
No. 87-12.
Property Owner Public Records indicate the owner of the appraised property is as
follows.
City of Seward
PO Box 167
Seward, AK 99664-0167
Assessed The property is owned by the City of Seward and exempt from taxation.
Value The property's assessment history applies to the entire 2.116-acre
parcel, rather than the appraised 1.40± acres, and is not considered
applicable.
Three Year Sale and
Lease History
There have been no known sales or leases of the property in the past
three years. The property is being considered for purchase by Seward
City Tours, but no sale price has been established or was reported to the
appraisers.
Report Type and This Appraisal Report develops the sales comparison approach to
Methodology estimate market value. Neither the cost nor the income capitalization
approach reflects market behavior for vacant land. Qualitative
techniques are used to measure differences between the comparable
sales and the subject. The appraisal report is a summary of the
appraisers' data, analyses, and conclusions with supporting
documentation retained on file.
Scope of Appraisal
Alex Kleinke of MacSwain Associates, LLC performed the inspection
of the appraised property, data collection, and analysis. Steve
MacSwain, MAI has observed the property during the course of other
Seward appraisal assignments and is familiar with the neighborhood. In
addition, Steve MacSwain, MAI administered the appraisal process,
reviewed draft appraisals, and concurred with an opinion of value.
22-3700 — North Portion of Lot 10A, Fort Raymond Subdivision Replat No. 1, Seward, Alaska 7
MacSwain Associates LLC
Exposure Time
Preparation of this report encompassed the following scope of work that
concluded with an opinion of market value.
4 Inspected the appraised property on June 28, 2022;
4 Discussed the property with Stephen Sowell, Assistant City
Manager with the City of Seward;
4 Reviewed aerial mapping indicating appraised property premises
provided by City of Seward;
4 Reviewed KPB assessor map 145-026;
4 Reviewed Plat Map 87-12;
4 Reviewed City of Seward Zoning Map and zoning codes;
4 Reviewed City of Seward 2030 Comprehensive Plan Update
prepared by PDC Engineers, adopted May 30, 2017;
4 Gathered data from the KPB Assessor's office and State of Alaska
Recorder's office regarding ownership, assessments, and general
property information;
4 Interviewed Seward real estate Brokers, agents, and property owners
regarding land sales;
4 Interviewed Seward market participants regarding current
commercial land market conditions, trends, and expectations;
4 Gathered and confirmed information on comparable land sales;
4 Inspected the primary comparable sales we relied upon in our
comparative analysis; and
4 Applied the sales comparison approach to arrive at a market value
indication.
We have collected and analyzed market and economic data that projects
real estate trends and activity for similar land. Discussions with Brokers
and analysis of similar property sales indicate that a period of
approximately 6-9 months prior to our effective date of value is a
reasonable exposure period.
22-3700 — North Portion of Lot 10A, Fort Raymond Subdivision Replat No. 1, Seward, Alaska 8
MacSwain Associates LLC
Chapter 2: Seward Area and Market Summary
Overview
Population
We present a summary analysis of factors that define the socio-
economic factors defining the Seward economy and real estate market.
The map below depicts Seward location within Southcentral Alaska.
Seward is located at the head of Resurrection Bay, on the southeast side
of the Kenai Peninsula. It lies 70 air miles south of Anchorage or 126
miles via the Seward Highway. Seward has an ice -free port with year-
round access to the Alaska Railroad.
Location Map
2003r M icrosofG'o r: 9t3F, or
Within city limits, Seward's 2020 Census population was 2,717 and
2021 population estimate was 2,603, representing stability over the past
decade. Community growth areas are principally rural residential
neighborhoods to the north outside city boundaries. According to the
State of Alaska Division of Community and Regional Affairs (DCRA),
a table containing Seward's historic population follows.
2021 2020 2019 2018 2017 2016 2015 2014 2013 2012
2,603 2,717 2,545 2,569 2,512 2,663 2,740 2,768 2,487 2,752
22-3700 — North Portion of Lot 10A, Fort Raymond Subdivision Replat No. 1, Seward, Alaska 9
MacSwain Associates LLC
Seward Employment
Seward Economic
Sectors
The actual contributory population to the Seward economy is 4,700±
residents with the inclusion of rural residential districts located outside
of city boundaries. Moreover, the seasonal population swells to nearly
6,000± during the prime summer months.
Seward employment is gradually shifting from trades and fishing to
leisure, hospitality, and government. Although Seward employment is
projected to increase, we anticipate unemployment to remain above the
statewide rate due to the seasonal character of the economy. Because
of high demand for seasonal employment, part of the work force resides
outside of the Seward residential sphere.
Seward Area Map
Ice -free deep -water port facilities integrated with road and rail service
to interior Alaska drive the Seward economy. The port is home to a
commercial fishing fleet, and is the impetus for thriving tourism and
recreation. These latter economic sectors have enhanced retail and
service industries as well as increased demand for petroleum products.
22-3700 — North Portion of Lot 10A, Fort Raymond Subdivision Replat No. 1, Seward, Alaska 10
MacSwain Associates LLC
Diversification of the Seward economy has been a central theme of city
management, planning, and infrastructure development over the past
few decades. Examples of economic diversification include expansion
of the Small Boat Harbor, Alaska Vocational and Technical Center
(AVTEC), Aurora Energy Services Coal Terminal (not operating), and
the Spring Creek Correctional Facility. Furthermore, construction of a
breakwater to protect Seward Marine Industrial Center (SMIC) from
prevailing weather and seas will improve the economic viability as a
market alternative for shipbuilding and repair.
Evolving economic diversification is a stabilizing influence and cause
to enhance growth opportunities for corollary industries. Despite the
seasonal character of the Seward economy, government, natural
resources, health care, and transportation sectors contribute year-round
employment. A summary analysis of the primary components of the
Seward economy follows.
Tourism: Tourism has continued to be a strong economic sector of the
Seward Economy since the recovery from the national recession. Over
the five-year period from 2014 to 2018, the City of Seward reported a
17% increase in sales tax revenue, and a 31 % increase in hotel/motel tax
over the same period, with 2019 figures anticipated to grow further.
New hotel construction in 2020 has the potential to further increase
revenues in future seasons. Cruise ship port calls increased from year
to year since 2013 (50 ships) to 2016 (67 ships) to 2019 (87 ships and
95 days with cruise ships in port). Consequently, Seward cruise ship
visitation increased by 84 percent over the same period, with 125,000±
passengers in 2013 to 230,000± passengers estimated in 2019.3 The
2013 figures represent an average passenger/ship ratio of 2,500
passengers, while 2019 figures indicate 2,640 passengers. The increase
is due to not only fuller ships, but also the industry replacing medium-
sized cruise ships with larger cruise ships. Conversely, expedition style
trips with 100 to 200 passengers are becoming increasingly common.
These ships, while lowering the passenger/ship average, offer exclusive,
high -cost ecotrips. As this trend continues, passenger volume should
continue to increase over the long term, with exception to the substantial
decline experienced for 2020 and 2021 due to the COVID-19 Pandemic.
According to the Cruise Line Agencies of Alaska Calendar, 76 cruise
ship dockings are planned for the Summer 2022 season.
Port Activity: As an industrial port, Seward has not reached the potential
that was invested in port infrastructure. However, over the past several
years, SMIC has benefited from increased demand for lease property.
3 City of Seward, Comprehensive Annual Financial Reporting.
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MacSwain Associates LLC
Real Estate Market
Summary
Companies that commenced leases in SMIC in 2013 and 2014 include
Raibow Fiberglass and Boat Repair and Vigor Alaska. Raibow
continued to expand their lease footprint, entering into new leases in
2016 and 2019. JAG Alaska, Inc. became the new operator at the
Seward shipyard after Vigor announced its withdrawal. Additional new
lessees in SMIC include SEWMAR, LLC and Hamilton Construction.
Established marine industrial uses that enhance economic productivity
include bulk fuel storage, ship repair and dry-dock, and fish processing.
The US Coast Guard has expressed interest in commencing land leases
in SMIC, however no official commitments have been made as of early
2021. SMIC recently completed a new $27M± rubble mound
breakwater, intended to improve protection and enable moorage of
larger ships, with a new dock rounding out recent SMIC construction.
Construction: A summary of construction projects that had a
measurable effect on the Seward economy include:
4 $30 million Seward Long -Term Care Facility (LTCF) in 2010
4 16,300± square foot, $5 million± Seward Community Library
and Museum in 2012
4 $13 million student housing complex for Alaska Vocational
Technical Center in 2014
4 Conversion of the 13,500± square foot former Elks Lodge into a
brewery/restaurant in 2013
4 New 80± room hotel on the corner of 4th Avenue and Van Buren
Street
4 19,000± square foot special -use marine industrial building
located north of the Seward Small Boat Harbor
We anticipate the Seward real estate market to remain stable over the
medium and long-term with upward trending prices for properties with
high demand and limited supply. Importantly, the real estate market has
a direct link to the health of Seward's economic sectors. For example,
increases in tourism and recreation cause greater demand for properties
that can accommodate cruise ships. These market dynamics will cause
upward price pressure. Short-term uncertainty existed throughout the
Summer 2021 tourist season; however, many expect a return to
normalcy for Summer 2022 as COVID-19-related worries subside.
Offsetting this optimism is rising fuel prices, which could dampen
demand. Moreover, an employee shortage has prevented many
businesses, primarily restaurants, from operating at full capacity and
taking advantage of the return of tourism, as hesitancy to travel has
diminished.
22-3700 — North Portion of Lot 10A, Fort Raymond Subdivision Replat No. 1, Seward, Alaska 12
MacSwain Associates LLC
Chapter 3: Neighborhood Summary
Overview
Neighborhood
Description
The subject neighborhood is approximately one mile north of the Small
Boat Harbor, bounded by the Seward Highway. The neighborhood is
mixed -use in character, with commercial development evident on
properties fronting the west side of Seward Highway. The reader is
referred to the zoning map below illustrating neighborhood land use and
assisting with the description and analysis that follows.
City of Seward Zoning Map
Rural Residential
Single Family Residential
■ Two Family Residential
Multi Family Residential
▪ Urban Residential
■ Office Residential
Harbor Commercial
■ Auto Commercial
Central Business District
■ Industrial
Institutional
■ Park
Resource Management
The neighborhood is situated along the Seward Highway corridor north
of the Seward Small Boat Harbor. Industrial use comprises the east side
of the highway with Leirer Subdivision and Alaska Railroad
Corporation land. In the subject's immediate vicinity, commercial
development fronts the west side of the Seward Highway extending
south to the harbor. Businesses along this corridor include Safeway,
Wells Fargo, Tesoro, Shore Side Car Wash, The Cup Espresso, and
Saltwood Smokehouse. Just to the northwest of the subject is the
Seward Military Resort. Further north, and to the west, development
consists of schools, athletic fields, and parks.
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MacSwain Associates LLC
Summary
While the neighborhood is mixed -use in character and includes a
multitude of zoning designations, the majority of land along the Seward
Highway is zoned Auto Commercial (AC), a highly regarded zoning
designation affording a wide range of uses including office, personal
services, retail and residential support which do not detract from
residential areas. However, the subject is within the Institutional Zoning
District, intended for public and private educational, administrative,
government and health care uses, including public land reserve for
future development.
In summary, with tourism industry as the economic focal point,
Seward's outlook is promising. The subject neighborhood is just north
of the Seward Small Boat Harbor and benefits from its frontage on the
Seward Highway. Based on these factors, the outlook for the subject
neighborhood is positive.
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MacSwain Associates LLC
Chapter 4: Site Description and Analysis
Overview
Site Description
Analysis of land describes the characteristics that enhance or detract
from its utility or marketability. The site description and analysis is
based on our property inspection and review of the Plat Map No. 87-12,
aerial, Borough, and other mapping. The plat map below overlaid with
the approximate dimensions provided by the client, as well as the aerial
mapping on the following pages assist in the description and analysis of
the parcel that follows.
Plat Map No. 87-12
Location:
Shape and Land
Area:
Access:
Appraised Land
60,984± SF
Sea Lion Avenue
Dimond Boulevard
Seward Highway
Southwest corner of Seward Highway and Sea
Lion Avenue, fronting the east side of Dimond
Boulevard, near Seward Highway MP 2.1,
approximately one mile north of the Seward
Small Boat Harbor, Seward, Alaska
Irregular -shaped parcel containing 60,984±
square feet or 1.40± acres
No direct Seward Highway access, ingress/egress
off Sea Lion Avenue on north boundary and
22-3700 — North Portion of Lot 10A, Fort Raymond Subdivision Replat No. 1, Seward, Alaska 15
MacSwain Associates LLC
Dimond Boulevard on west boundary (paved, two
lane roads)
Zoning: Institutional (INS) District, intended for public
and private educational, administrative,
government and health care uses, including public
land reserve for future development.
Frontage and 206± feet frontage on Seward Highway, 325± feet
Exposure: frontage on Sea Lion Avenue, 229± feet frontage
on Dimond Boulevard
Easements and Per plat 87-12: 30-foot utility easement along east
Restrictions: boundary and 25-foot utility easement along west
boundary
Public Utilities: Public water, sewer, electricity, and telephone
Topography: Generally level to slightly sloping, slightly below
highway grade, dirt mound on west portion of
property
GIS Aerial Map (Kenai Peninsula Borough) 2020
Dimond Boulevard
Sea Lion Avenue
Appraised Land
60,984± SF
Seward Highway
22-3700 — North Portion of Lot 10A, Fort Raymond Subdivision Replat No. 1, Seward, Alaska 16
MacSwain Associates LLC
Vegetation:
Soil Conditions:
Wetland
Designation:
Flood Hazard:
Environmental
Conditions:
Site
Improvements:
Site Utility:
Heavily vegetated with spruce, cottonwood, alder,
and low-lying vegetation
Based on observations of surrounding development,
soils appear to be suitable for development
None noted on KPB Wetland Mapper
Zone X, an area outside the 0.2% annual chance
floodplain
The existence of any hazardous material or other
type of environmental contamination, which may or
may not be present on the property, was not
observed by the appraisers nor do the appraisers
have any knowledge of the existence of such
substances. Our value conclusion assumes that the
property is free of environmental and hazardous
contaminants.
Minimal clearing and signage; signage excluded
from valuation
The site is suitable for commercial -related
development. Due to highway frontage, exposure,
and Auto Commercial zoning, coupled with relative
proximity to other commercial areas including the
Small Boat Harbor, the site is well suited for
commercial development.
22-3700 — North Portion of Lot 10A, Fort Raymond Subdivision Replat No. 1, Seward, Alaska 17
MacSwain Associates LLC
Chapter 5: Highest and Best Use Analysis
Overview
The parcel is located within the City of Seward, subject to zoning
regulations. Zoning is INS, Institutional. According to the City of
Seward Zoning Code, this designation was:
Intended for public and private educational, administrative,
government and health care uses, including public land reserve
for future development. The development standards are
intended to set a high standard to assure that the activities
provide visual amenity to the surrounding area.
Within the Institutional District, a variety of commercially -related uses
are permitted, such as medical clinics, offices, governmental and
quasigovernment administrative developments. Additional commercial
uses require conditional use or administrative permits. Industrial uses
allowed with conditional use permits include storage and distribution
warehousing and industrial cargo uses. Other permitted uses include
parking lots, recycling, schools, passenger dock, emergency services,
library, dorm -style housing, museum, impound lot, and utility facility.
After analysis, zoning limits the scope of physically possible uses.
Essentially, the intent of the zoning district does not accommodate
purely commercially -motivated uses, but rather those that serve a public
purpose in conjunction with a profitable use.
The appraised parcel contains 60,984± square feet or 1.40± acres, and
benefits from 206± feet of frontage on the Seward Highway, but lacks
direct access. Instead, access is from the north and west boundaries on
secondary streets. The property is generally level with a gentle slope,
and near access grade. There has been some clearing, but the majority
of the property is in a raw state and heavily vegetated. Public water,
sewer, electricity, and telephone are available. Surrounding
development varies; however, commercial development is evident on
parcels fronting the west side of the Seward Highway. The adjacent
property to the south is being developed for a medical clinic. The
location one mile north of the Small Boat Harbor coupled with highway
frontage encourages commercial development, however zoning limits
the scale and type of development permitted.
Determining the specific land use alternative that maximizes
productivity is a difficult analytical task. Based on highway frontage,
relative proximity to the Seward Small Boat Harbor and other
commercial areas, commercial development is considered financially
feasible. Thus, commercial development consistent with Institutional
22-3700 — North Portion of Lot 10A, Fort Raymond Subdivision Replat No. 1, Seward, Alaska 18
MacSwain Associates LLC
zoning restrictions is the highest and best use of the property, as vacant.
The most probable buyer is an owner -user.
Highest and Best Use As Vacant Commercial Development
22-3700 — North Portion of Lot 10A, Fort Raymond Subdivision Replat No. 1, Seward, Alaska 19
MacSwain Associates LLC
Chapter 6: Land Valuation - Sales Comparison Approach
Overview
Comparative Market
Analysis
The sales comparison approach is a systematic procedure of estimating
the subject's market value by comparing it directly to property sales
afforded similar physical and economic character. The approach is
founded on the principle of substitution, theorizing value is a function
of a knowledgeable investor's (buyer) intent to pay no more for a
specific property than the cost of acquiring an alternative property
offering similar utility (economic satisfaction). The sales comparison
approach is the best approach for valuing vacant land.
Our sales search focused on vacant land with similar zoning, physical,
and economic character to the subject, located in the immediate
neighborhood. This search criteria produced a paucity of sale data,
compelling us to expand our search to alternatives locations with
varying zoning designations. This search produced four closed
transactions that transpired in from 2017 to 2021. Of these, three
transactions are land sales and one transaction is a land lease on ARRC
land. We also analyzed a pending sale of the adjacent property to the
south. The primary land transactions we relied upon are listed in the
table below. Additional details of the comparables are retained on file.
Summary of Primary Land Transactions
No. Location Zone Sale Date Sale Size $/SF
Price (SF)
1 Northwest corner of Seward Highway and AC 8/21 $663,500 144,184 $4.60
Aspen Lane, one mile north of SSBH (pending)
2 Southeast corner of Port Avenue and Fourth HC 10/21 $311,000 22,194 $14.01
Avenue
3 Northeast corner of Seward Highway and N/A 11/18 $130,000 74,923 $1.74
Seward Park Drive
4 North side of Seward Highway between N/A 7/18 $85,000 98,881 $0.86
Seward Park Drive and South Fork Lane
5 West side of First Avenue at corner of Madison INS 11/17 $200,000 41,818 $4.78
Street
-- -- Southwest corner of Seward Highway and INS
Sea Lion Avenue, one mile north of SSBH
(Subject)
60,984
22-3700 — North Portion of Lot 10A, Fort Raymond Subdivision Replat No. 1, Seward, Alaska 20
MacSwain Associates LLC
Elements of
Comparison
The elements of comparison that have the greatest influence on market
behavior and the price paid for similar land in Seward is market
conditions, location, zoning, and physical character, including
clearing/grading, frontage/access, and size. We use a qualitative
comparison technique that rates elements of comparison as superior,
inferior, or similar.
Comparable Land Sales Map
Pending Land Sale 1
Pending Land Sale 1 is the August 2021 pending sale of a property just
southwest of the subject fronting the Seward Highway. The irregular -
shaped parcel contains 3.311 acres or 144,1841 square feet. At the time
of the purchase agreement, the property was a portion of a larger 11-
acre parcel. Thus the pending sale requires a replat prior to closing. The
platting process has caused an extraordinarily lengthy sale process The
property has public water, sewer, electricity, and telephone. Zoning is
22-3700 — North Portion of Lot 10A, Fort Raymond Subdivision Replat No. 1, Seward, Alaska 21
MacSwain Associates LLC
AC, Auto Commercial. The property has direct highway access and
benefits from 448± feet of frontage. It was previously used as the US
Air Force Recreation Center and is primarily cleared. The pending sale
price of $663,500 indicates a unit price of $4.60 per square foot. It is
based on the average of two appraisal reports; one completed for the
City of Seward (seller), and one completed for Chugachmiut (buyer).
The buyer intends to construct a medical clinic on the site. By
comparison, downward adjustments are required, primarily to reflect
superior zoning, access, and clearing. An offsetting upward adjustment
is necessary for inferior size differential. The net adjustment is
marginal, indicating a unit value approximating $4.60 per square foot
for the subject.
Land Transaction 2
Land Transaction 2 is the October 2021 lease of ARRC land located at
the north end of the Seward Small Boat Harbor on the southwest corner
of Port Avenue and Fourth Avenue. The nearly -trapezoidal shaped site
contains 22,194± square feet or 0.51± acre, including a small portion
encumbered by public use easements. Access is from paved, two-lane
streets and all public utilities are available. Zoning is HC, Harbor
Commercial. The property is currently used for restaurant and tourism -
oriented uses, benefitting from its proximity to the harbor and railroad
depot. The lease rate of $24,880 per year indicates a capitalized value
of $311,000 using an 8% rental rate specified in the lease. The lease is
subject to five-year renewals based on an MAI appraisal. It indicates a
unit indicator of $14.01 per square foot. By comparison, downward
adjustments are required, primarily to reflect superior location, zoning,
and size differential. Thus, a unit value substantially less than $14.01
per square foot is indicated for the subject.
Land Sale 3
Land Sale 3 is the November 2018 sale located on the northeast corner
of the Seward Highway and Seward Park Drive, approximately 3.5
miles north of the Small Boat Harbor. The irregular -shaped lot contains
74,923± square feet or 1.72± acres. Situated outside of Seward City
Limits, the parcel is unzoned. The listing Broker indicated there was a
700 square foot shop on the property connected to electric service, but
that power was turned off. Additionally, it was revealed the well and
septic on -site likely did not meet ADEC standards, and the well lacked
a well pump. The property was exposed to the market for 104 days,
originally listed for $150,000. The sale price of $130,000 indicates a
unit price of $1.74 per square foot. By comparison, downward
adjustments are necessary for lack of zoning restrictions, access, and
22-3700 — North Portion of Lot 10A, Fort Raymond Subdivision Replat No. 1, Seward, Alaska 22
MacSwain Associates LLC
improvements on the property at the time of sale. Conversely,
overriding upward adjustments are required for inferior market
conditions, lack of public water and sewer, and inferior location. Thus,
Land Sale 3 indicates a unit value greater than $1.74 per square foot for
the subject.
Land Sale 4
Land Sale 4 is the July 2018 sale located on the north side of the Seward
Highway between Seward Park Drive and South Fork Lane,
approximately 3.5 miles north of the Small Boat Harbor. The irregular -
shaped lot contains 98,881± square feet or 2.27± acres. Situated outside
of Seward City Limits, the parcel is unzoned. The listing Broker
indicated the lot has been cleared, and a building pad was prepped for a
structure approximating 40 feet by 70 feet. It was also revealed an
engineered septic system would be required to facilitate development.
The property was exposed to the market for 107 days, originally listed
for $95,000. The sale price of $85,000 indicates a unit price of $0.86
per square foot. Subsequent to the sale, a dental clinic was constructed
on the site. By comparison, downward adjustments are necessary for
site improvements at the time of sale and lack of zoning restrictions.
Conversely, overriding upward adjustments are required for inferior
market conditions, size differential, lack of public water and sewer, and
inferior location. Thus, Land Sale 4 indicates a unit value greater than
$0.86 per square foot for the subject.
Land Sale 5
Land Sale 5 is November 2017 located on the west side of First Avenue
near the corner of Madison Street, just north of the Seward Hospital.
The nearly rectangular -shaped lot contains 41,818± square feet or 0.96±
acre. Access is from First Avenue, a paved, two-lane road running
north/south on the west side of the townsite. Zoning is INS,
Institutional, which also allows some commercial uses. At the time of
sale, the property was vacant as the original structure had been razed
prior to 2012. The property was exposed to the market for 108 days
before selling at the list price of $200,000. This indicates a unit price
of $4.78 per square foot. The motivation for the purchase was for
eventual medical -related expansion due to its adjacency to the hospital
campus. By comparison, downward adjustments are necessary for size
differential and to reflect the degree of clearing at the time of sale, which
reduces site preparation expenses. Offsetting upward adjustments are
necessary for inferior market conditions and lack of highway frontage.
The net adjustment is minimal, indicating a unit value approximating
$4.78 per square foot for the subject.
22-3700 — North Portion of Lot 10A, Fort Raymond Subdivision Replat No. 1, Seward, Alaska 23
MacSwain Associates LLC
Reconciliation of
Comparative Market
Analysis
Presented below is a rating grid and analysis of the comparables used in
comparative analysis.
No. $/SF Rank Net Adjustment
2 $14.01 Superior
5 $4.78 Similar
1 $4.60 Similar
Subject
3 $1.74 Inferior
4 $0.86 Inferior
The comparables indicate a wide value range from $0.86 to $14.01 per
square foot. Land Sales 3 and 4 are rated inferior indicating a unit value
greater than $1.74 per square foot. Conversely, Land Transaction 2
(which is a land lease) is rated superior indicating a unit value
significantly less than $14.01 per square foot. Pending Land Sale 1 and
Land Sale 5 are rated similar, indicating a unit value approximating
$4.60 and $4.78 per square foot. After comparative analysis and making
the necessary adjustments, we conclude with a unit range from $4.50 to
$5.00 per square foot. This develops the following indicators.
60,984 SF x $4.50/SF =
60,984 SF x $5.00/SF =
$274,428
$304,920
Based on the preceding analysis, we reconcile with a value near the
middle of the range. Therefore, the market value of the appraised land,
as of June 28, 2022, is estimated as follows.
Market Value Estimate $290,000
22-3700 — North Portion of Lot 10A, Fort Raymond Subdivision Replat No. 1, Seward, Alaska 24
Addendum
MacSwain Associates LLC
Assumptions and Limiting Conditions
This appraisal is subject to the following assumptions and limiting conditions.
No responsibility is assumed for the legal description provided or for matters pertaining to
legal or title considerations. Title to the property is assumed to be marketable unless
otherwise stated.
The property is appraised free and clear of all liens or encumbrances unless otherwise stated.
The information furnished by others is believed to be reliable, but no warranty is given for
its accuracy.
All maps, plot plans, and other illustrative material are believed to be accurate, but are
included only to help the reader visualize the property.
It is assumed that there are no hidden or unapparent conditions of the property, subsoil, or
structures that render it more or less valuable. No responsibility is assumed for such
conditions or for obtaining the engineering studies that may be required to discover them.
It is assumed the property is in full compliance with all applicable federal, state, and local
environmental regulations and laws unless the lack of compliance is stated, described, and
considered in the appraisal report.
It is assumed the property conforms to all applicable zoning, land use regulations, and platting
restrictions unless the nonconformity is identified, described, and considered in the appraisal
report.
4 Possession of this report, or a copy thereof, does not carry with it the right of publication.
The appraisers, by reason of this appraisal, is not required to give consultation or testimony
or to be in attendance in court with reference to the property in question unless arrangements
have been previously made.
4 Neither all nor any part of the contents of this report shall be disseminated to the public
through advertising, public relations, news, sales, or other media without the prior written
consent and approval of the appraisers.
The existence of any hazardous material or other type of environmental contamination, which
may or may not be present on the property, was not observed by the appraisers nor do the
appraisers have any knowledge of the existence of such substances. However, the presence
of these substances may affect the value of the property. Therefore, the client is urged to
retain an environmental assessment for discovery and evaluation.
Hypothetical Condition
This appraisal is subject to the following hypothetical condition.
It is a hypothetical condition of this appraisal that the appraised 1.40± acres is legally
separated and developable to its highest and best use.
22-3700 — North Portion of Lot 10A, Fort Raymond Subdivision Replat No. 1, Seward, Alaska
MacSwain Associates LLC
4401 Business Park Boulevard, Suite 22, Anchorage, Alaska 99503
Appraiser: Alex Kleinke
State of Alaska, Certified General Real Estate Appraiser — License #148873
Education: Bachelor of Business Administration, Finance, University of Alaska Anchorage (2009)
Master of Business Administration (MBA), University of Alaska Anchorage (2012)
Professional Experience: 2009 to Present — MacSwain Associates LLC
Real estate appraiser of all property types throughout Alaska including commercial, industrial, land, rights -of -way,
and special-purpose properties. Appraisals performed for financing, right-of-way acquisitions, conservation
easements, leasing, insurance, taxation, estate planning, investment analysis, and buy -sell decisions.
Appraisal Education: The following is a list of recently completed appraisal courses and seminars.
2022 — Fundamentals of UASFLA by the Appraisal Institute, Online
2021— Cool Tools: New Technology for Real Estate Appraisers by the Appraisal Institute, Online
2021— Analyzing Operating Expenses by the Appraisal Institute, Online
2021— Business Practices and Ethics by the Appraisal Institute, Online
2020 — 7-Hour National USPAP 2020-2021 Update Course by the Appraisal Institute, Anchorage, AK
2017 — Business Practices and Ethics by the Appraisal Institute, Online
2017 — 7-Hour Equivalent USPAP Update Course by the Appraisal Institute, Online
2016 — Advanced Market Analysis and Highest and Best Use by the Appraisal Institute, Chicago, IL
2016 — General Sales Comparison Approach by the Appraisal Institute, Chicago, IL
2015 — Real Estate Finance, Statistics, and Valuation Modeling by the Appraisal Institute, San Diego, CA
2015 — General Report Writing and Case Studies by the Appraisal Institute, Las Vegas, NV
2015 — General Income Approach Parts I and II by the Appraisal Institute, San Diego, CA
2013 — The Discounted Cash Flow Model: Concepts, Issues, and Apps. by the Appraisal Institute, San Diego, CA
2013 — General Appraiser Site Valuation and Cost Approach by the Appraisal Institute, Fort Lauderdale, FL
2012 — General Market Analysis and Highest and Best Use by the Appraisal Institute, San Diego, CA
2011 — 15-Hour National USPAP Course by the Appraisal Institute, Anchorage, AK
2010 — Basic Appraisal Procedures by the Appraisal Institute, Anchorage, AK
2010 — Basic Appraisal Principles by the Appraisal Institute, Anchorage, AK
Sample of Significant and Project Assignments:
2020-21 — Eight right-of-way appraisals for Knik-Goose Bay Road Reconstruction Project
2020 — 43 City of Seward Lease Parcels including commercial, industrial, and marine -type properties
2020 — 41 City of Kenai Lease Parcels including aviation, commercial, industrial, and marine -type properties
2019 — City of Kodiak Lease Parcels including aviation and communication sites, seaplane base, and shipyard
2018 — Fractional interest of land and sandwich leases for Anchorage hotel and fuel station properties
2017 — Pacific Spaceport Complex, market rent of launch complex facilities within PSCA on Kodiak Island
2016-2017 — Provided insurable value project appraisals for properties in Utqiagvik, Dillingham, Iliamna, Kotzebue,
Nome, Cordova, Naknek, Angoon, Haines, Hoonah, Juneau, Kake, Anchorage, Bethel, and Yakutat
2015 — 40 City of Seward Lease Parcels including commercial, industrial, and marine -type properties
2015 — 97 City of Kenai Lease Parcels including aviation, commercial, industrial, and marine -type properties
2015 — Assisted with cost estimate to acquire lands to develop proposed AKLNG from Pt. Thomson to Nikiski
2014-2020 — 50+ Right-of-way appraisals for Parks Highway MP 48.8 to 52.3 Reconstruction Project
2014 — Assisted with project management and appraisals of Nikiski properties for Alaska LNG acquisitions
2012 — Assisted in the income analysis portion of the Trans Alaska Pipeline System (TAPS)
2010-2022 — Alaska Railroad Corporation (ARRC) land lease appraisals in Anchorage, Seward, and Whittier
Professional Affiliation: Practicing Affiliate — Appraisal Institute
License #: 148873
ERective: 5/23/2021
Expires: 06/30/2023
State of Alaska
Department of Commerce, Community, and Economic Development
Division of Corporations, Business, and Professional Licensing
Board of Certified Real Estate Appraisers
Licensee: ALEXANDER H KLEINKE
License Type: Certified General Rea! Estate Appraiser
Status: Active
Commissioner: Julie Anderso
MacSwain Associates LLC
4401 Business Park Boulevard, Suite 22, Anchorage, Alaska 99503
Appraiser: Steve MacSwain, MAI
Member of Appraisal Institute - No. 5700
State of Alaska, Certified General Real Estate Appraiser - No. 42
Professional Experience: 1986 to Present - MacSwain Associates LLC
1976 to 1986 - Appraisal Company of Alaska - President
1970 to 1975 - Real Estate Services Corporation — Appraiser
1969 to 1970 - State of Alaska Department of Highways - Right of Way Agent
Real estate appraiser and consultant of all property types throughout Alaska including commercial, industrial,
subdivisions and special-purpose properties. Appraisals have been performed for financing, leasing, insurance,
condemnation, taxation, property damages, investment analysis, and buy -sell decisions. Appraisals include valuation
of both real property and business enterprises. Professional experience totals 49 years. Life-long Alaskan resident
of Alaskan Native descent.
Education: Bachelor of Business Administration, Finance (1969), University of Alaska Fairbanks
Appraisal Education: The following is a list of completed appraisal courses and seminars.
2021— Cool Tools: New Technology for Real Estate Appraisers by the Appraisal Institute
2021— Desktop Appraisals (Bifurcated, Hybrid) and Evaluations by the Appraisal Institute
2021— Hot Topics & Myths in Appraiser Liability by LIA Administrators & Insurance Services
2020 — Uniform Standards of Professional Appraisal Practice — Update by the Appraisal Institute
2019 — How Tenants Create or Destroy Value: Leasehold Valuation and its Impact on Value —by the Appraisal Institute
2017 — Appraising Environmentally Contaminated Properties by the Appraisal Institute
2017 — Residential & Commercial Valuation of Solar by the Appraisal Institute
2017 — Right of Way Acquisition for Pipeline Projects by the International Right of Way Association
2015 — Litigation Appraising: Specialized Topics and Applications by the Appraisal Institute
2015 — Business Practices and Ethics by the Appraisal Institute
2013 — Complex Litigation Appraisal Case Studies by the Appraisal Institute
2013 — Uniform Appraisal Standards for Federal Land Acquisitions (Yellow Book) by the Appraisal Institute
2012 — Appraisal Curriculum Overview by the Appraisal Institute
2010 — Reviewing Appraisals in Eminent Domain by the International Right of Way Association
2010 — Commercial Appraisal Engagement and Review Seminar for Bankers and Appraisers by the Appraisal Institute
2009 — The Appraiser as an Expert Witness: Preparation and Testimony by the Appraisal Institute
2009 — Attacking and Defending an Appraisal in Litigation by Whitmer Education
2008 — Uniform Standards of Professional Appraisal Practice by the Appraisal Institute
2007 — Business Practices and Ethics by the Appraisal Institute
2007 — Eminent Domain Law for Right of Way Professionals by the International Right of Way Association
2007 — Appraisal Review for Federal Aid Programs by the International Right of Way Association
2007 — Analyzing Operating Expenses by the Appraisal Institute
1969-2006: Numerous appraisal classes pertaining to principles, income capitalization, cost analysis, sale
comparison approach, and highest and best use analysis by the Appraisal Institute, Society of Real Estate Appraisers,
International Right -of -Way Association, International Association of Assessing Officers, and Marshall Valuation
Service
Membership and Organizations: Member of Appraisal Institute — No. 5700, International Right of Way
Association (IRWA), and Building Owners and Managers Association (BOMA)
Public Service: Past Chairman of the State Board of Certified Appraisers
Past Member of Board of Equalization, Municipality of Anchorage, National Experience Review Committee of
the Appraisal Institute, and Regional Ethics and Counseling Panel of the Appraisal Institute
Past President of Alaska Chapter 57 of the Appraisal Institute
Significant Assignments:
Appraised Pacific Spaceport Complex -Alaska (PSCA) land and facilities for Alaska Aerospace Corporation on
Kodiak Island.
4 Appraised proposed LNG Pipeline, a FERC-regulated 860-mile pipeline transporting liquefied natural gas.
4 Appraised the Trans -Alaska Pipeline System, a FERC-regulated 800- pipeline that transports crude oil from
Prudhoe Bay to Valdez, for TAPS ownership.
4 Appraised remote lands (65,000± acres) owned by three Native corporations damaged by the Selendang Ayu
grounding and subsequent oil spill.
4 Appraised Calais Company, Inc., a real estate holding company consisting of 39 commercial parcels in Anchorage.
4 Principal real estate consultant and expert witness for all lands affected by the Exxon Valdez oil spill. Project
involved over 2,000,000 acres of remote land and nearly 2,000 private property owners.
4 Appointed as a representative of a three -member panel that analyzed and valued over 1,000,000 acres and 8,000
parcels for the Mental Health Lands Settlement.
Contract assessor for the North Slope Borough, Kodiak Island Borough, City of Nome, and the City of Valdez.
4 Represented Seibu Alaska, Inc. (Alyeska Resort and Alyeska Prince Hotel) in preparing of their property tax
appeal with the Municipality of Anchorage that resulted in a $65 million reduction in assessed value.
4 Appraised submerged tideland parcels and wetlands parcels located in Womens Bay on Kodiak Island for the
purpose of an exchange between Koniag, Inc. and U.S. Fish and Wildlife Service.
4 Appraised Common Carrier Pipeline right-of-ways leased and operated by BP Transportation Alaska and
ConocoPhillips Alaska.
4 Appraised 3,600 acres consisting of the former Adak Naval Air Station and Submarine Base conveyed to the City
of Adak and the State of Alaska.
Expert Witness Experience: Steve MacSwain, MAI is qualified as an expert witness in both the United States
Federal Court and the State of Alaska Superior Court. Steve has testified as an expert witness in State and Federal
courts. In addition, Steve has testified as expert witness in numerous Alaskan municipal tax courts, public hearings,
and depositions on matters related to real property.
Arbitrator Experience: Appointed a Master by the Superior Court of Alaska and Municipality of Anchorage to
serve as an arbitrator in determining just compensation.
Licensee: APRCr42
Etfe4ive: 6f812021
Expires: 06130/2023
State of Alaska
Department of Commerce, Community, and Economic Development
Division of Corporations, Business, and Professional Licensing
Board of Certified Real Estate Appraisers
Licensee: STEVEN JAMES MACSWAIN
License Type: Certified General Real Estate Appraiser
Status: Active
Commissioner: Julie Anderson
PURCHASE AND SALE AGREEMENT
This Purchase and Sale Agreement ("Agreement") is made as of September 11, 2023 between
Seward City Tours ("Purchaser"), and the City of Seward ("City" or "Seller"), organized as a first-
class home -rule municipality under the laws of the State of Alaska.
Purchaser and City agree as follows:
1. Purchase and Sale:
Subject to the terms and conditions of this Agreement, the City agrees to sell and Purchaser agrees to
purchase the real property and improvements described as follows (the "Property"):
T 1N R 1W SEC 34 SEWARD MERIDIAN SW 0870012 FORT RAYMOND SUB REPLAT
NO 1 LOT 10A
The final legal description is subject to plat approval by the parties and responsible agencies and
subject only to the "Permitted Exceptions" as defined in Section 5 below.
The Property will be legally described as set forth in the final plat approved by The City and
Purchaser, and properly recorded in the appropriate recording district prior to Closing.
2. Purchase Price and Payment Terms:
The purchase price for the Property shall be two hundred ninety thousand ($290,000.00) dollars.
Purchaser will pay a deposit of ten thousand dollars ($10,000.00) (the "Earnest Money" or
"Deposit") to the Escrow Agent described in Section 4 with Purchaser's delivery of this signed
Agreement to the City. After all other terms and conditions of this Agreement have been satisfied,
including completion of all contingencies in Section 8 to Purchaser's sole satisfaction, the balance of
the purchase price shall be due to the City at Closing. Under the municipal charter and code of
ordinances of Seller, the City resolution required to approve this Agreement will be effective 30 days
following adoption of such resolution, except as provided in Section 3.
a. In addition to payment of the purchase price, Purchaser shall pay the costs and fees
associated with subdividing and platting the Property from the larger parcel of
which it is currently a part, including but not limited to survey expense, filing and
application fees, certificate to plat costs, title insurance and recording fees;
provided, that Purchaser shall only be responsible for paying fees and/or charges for
services and other items that are actually ordered directly or approved in advance by
Purchaser. Should the sale fail to close for any reason, the City will not reimburse
Purchaser for costs related to the platting process, except as provided in Section 3.
3. Referendum:
Nothing in this Agreement shall affect or reduce the rights of the voters of the City of Seward to
reject the City Council's approval of this Agreement by referendum. In the event a referendum
petition is timely filed and accepted, Seller shall provide written notice of acceptance to Purchaser at
the time the petition is accepted. Purchaser agrees that it shall have no rights under this Agreement
unless and until a resolution is approved by the voters of the City of Seward. Based on the burden
and delay inherent in a Referendum, Purchaser shall have the option of canceling this Agreement by
providing written notice to the City no later than thirty (30) days after the Referendum petition is
approved, with the City returning Purchaser's Earnest Money and prompt reimbursement by Seller of
all of Purchaser's reasonable, third -party costs actually incurred by Purchaser in connection with the
subdivision and replat, if a referendum petition is approved. Purchaser shall not be entitled to any
damages or other relief against the Seller in the event the voters void the Council's resolution. If the
resolution approving this Agreement is voided by such referendum action, this Agreement shall
terminate, the Deposit shall be promptly returned to Purchaser, and platting costs returned, within 10
days of the formal certification of the referendum vote, and neither party shall have any further
obligation hereunder.
4. Closin
The parties shall cause an escrow (the "Escrow") to be established with First American Title
Company of Alaska - Seward Office ("Escrow Agent"). Consummation of the sale (the "Closing")
shall take place through the Escrow at the offices of the Escrow Agent, or such other place as the
City and Purchaser agree upon in writing. The City and Purchaser shall be given One Hundred
Eighty (180) days from the effective date of the resolution approving this Agreement to complete the
subdivision and platting process required to close this transaction. The parties shall agree in writing
on the specific date of Closing. In the event this transaction is not closed within One Hundred Eighty
(180) days of the effective date of the resolution approving this transaction, this Agreement shall
terminate unless extended. Purchaser shall have one extension as a matter of right, for 60 days, by
issuing written notice to the City. Any other extension must be agreed to in writing by both parties.
Notwithstanding the foregoing, if this transaction will close, then the City and Purchaser shall cause
the following to occur at the Closing:
A Quitclaim Deed conveying the Property to Purchaser, duly executed and acknowledged by the
City, shall be recorded in the Records of the Seward Recording District, Third Judicial District, State
of Alaska.
a. Purchaser shall pay to the City the price set forth in Section 2 of this Agreement.
b. The title company shall issue to Purchaser the title insurance policy described in
Section 7 of this Agreement.
5. Title:
The City will deliver to Purchaser, at Purchaser's expense, within ten (10) days of mutual execution
of this Agreement a commitment for title insurance (the "Preliminary Commitment") preliminary to
the issuance of the title policy referred to in Section 7 of this Agreement, together with copies of all
underlying exceptions described in the Preliminary Commitment. The Property is to be sold and
conveyed subject to: (a) the condition that title to the Property is vested solely in the City and in the
City's name prior to closing, and (b) reservations, restrictions and easements as disclosed in the
Preliminary Commitment and approved by Purchaser. Purchaser shall be entitled to object to any
exceptions stated in the Preliminary Commitment by delivering written notice to the City and Escrow
Agent on or before fifteen (15) days after the receipt of the Preliminary Commitment, supplemented
with the copies of the underlying exceptions described therein, which notice shall specify the matters
to which Purchaser objects. If Purchaser objects to any such matters, the City shall have fifteen (15)
days after receiving written notice from Purchaser to attempt to eliminate the matters to which
Purchaser has objected or to cause Escrow Agent to insure over said matters. The City shall notify
Purchaser in writing, within the fifteen (15) day period, if the City is unable or unwilling to eliminate
said matters or cause Escrow Agent to insure over said matters. Purchaser may then elect, by written
notice to the City and Escrow Agent, either to waive the objectionable matters and proceed to
Closing or to terminate this Agreement and receive a refund of the Deposit, and the parties shall have
no further obligations to each other under this Agreement. The parties agree that, promptly after the
recordation of the plat for the Property, the Escrow Agent shall update the Preliminary Commitment
to reflect the Property as the Property to be insured under the title policy. With respect to such
update, and with respect to any other amendments or updates to the Preliminary Commitment that
occur prior to Closing, if there are any exceptions or matters not previously disclosed to which
Purchaser objects, Purchaser may then elect to object to said matters as provided above; to terminate
the Agreement and receive a refund of the Deposit; or waive the objectionable matters and proceed to
Closing. Purchaser shall have the right to extend closing to address new or amended exceptions.
Permitted Exceptions: Notwithstanding the immediately preceding paragraph, Purchaser may not
object to any of the following title matters: reserved mineral rights; and rights reserved to federal
patents. All items to which Purchaser does not object under the immediately preceding paragraph,
plus all items described in this paragraph, are referred to herein as "Permitted Exceptions".
6. Deed:
Title to the Property shall be conveyed to Purchaser by a Quitclaim Deed (the "Deed") duly executed
by the City and recorded at the Closing. The Deed shall be in the form and content acceptable to the
City and Purchaser.
7. Delivery of Title Policy.
At Closing, or as soon as practical thereafter, the City shall cause to be delivered to Purchaser the
owner's title insurance policy required by this Agreement, which policy shall insure Purchaser's fee
simple interest in the Property in the amount of the Purchase price, and which shall contain no
exceptions other than the general exclusions and exceptions common to the form of policy issued,
and the Permitted Exceptions.
8. Closing Costs:
All Closing costs of the transaction, unless otherwise provided in this Agreement, shall be divided as
follows:
The City shall pay the following Closing costs:
a. Any outstanding or pending assessments or liens
b. City's attorney fees and costs
c. City's cost of appraisal (McSwain's fee)
d. Real Property taxes will be prorated to date of closing and if applicable, paid
through escrow
Subject to Section 2 above, Purchaser shall pay the following Closing costs:
a. All recording fees
b. All document preparation fees
c. All escrow closing fees
d. Owner's standard coverage title insurance described herein (Required)
e. Any ALTA title insurance policies desired by Purchaser (Optional)
f. All Purchaser's attorney fees and costs
g. Cost of Purchaser's appraisal, Commitment fees, points, and financing costs
h. Real Property taxes if any, will be prorated to date of closing and, if applicable, paid
through escrow
Notwithstanding the above, if the escrow fails to close due to the default of one party, the defaulting
party shall pay any escrow and title policy cancellation fees.
Except for items in Section 11, from the date of mutual acceptance of this Agreement until Closing,
Seller agrees to maintain the Property in its present condition.
9. Seller's Conditions Precedent:
The parties acknowledge that the City's obligation to close on the purchase of the Property shall be
subject to the following:
a. Receipt of approval by Purchaser of Purchaser's inspection of the Property not
revealing any basis upon which Purchaser timely terminates this Agreement as
provided in paragraph 10 below.
b. Approval of this Agreement by the Seward City Council, and, if a timely
referendum petition is filed, approval by voters in a referendum election.
c. No litigation or other claim which has any probability or reasonable likelihood of
success, challenges or controverts the Purchaser's action to acquire the Property.
d. Completion by Purchaser and the City of all items necessary to subdivide and plat
the Property to be purchased.
e. Purchaser to pay all amounts required by this Agreement.
10. Inspection:
Purchaser, its agents and contractors, have been provided with access to the facility for a number of
years, which gave Purchaser reasonable access to the Property to conduct such tests and inspections
as Purchaser deems appropriate. If Purchaser reasonably determines from the inspections or testing
that any condition of the Property does not meet Purchaser's satisfaction, Purchaser shall have the
right within thirty (30) days after the effective date of this Agreement to object to such matter by
delivering written notice to the City specifying the matters to which Purchaser objects. To the extent
that any objection is curable, the City shall have twenty (20) days after receipt of the written notice to
cure the deficiency, at The City 's expense and to Purchaser's satisfaction, or negotiate an acceptable
resolution with the Purchaser. Unless Purchaser has agreed to proceed as a result of the City's cure or
other agreed -upon resolution, Purchaser may elect, by written notice to the City, to waive the
objectionable matter and proceed to Closing, negotiate a different, written resolution with the City, or
to terminate this Agreement. If this Agreement is terminated by Purchaser pursuant to this paragraph,
the Deposit shall be returned to Purchaser and the parties shall have no further obligation to each
other under this Agreement.
Site Assessment and Hazardous Substances.
(a) Purchaser acknowledges that some or all of its officers and owners are
familiar with the Property. Purchaser, its agents and contractors, have been provided with access to
the facility for a number of years, which gave Purchaser reasonable access to the Property to conduct
such tests and inspections as Purchaser deems appropriate. Purchaser further acknowledges that it
has (i) thoroughly inspected the Property and has had complete access to inspect the Property, and
(ii) evaluated to the extent Purchaser deems necessary the need for an Environmental Site
Assessment or any testing. Any additional environmental assessment or review is to be undertaken
at Purchaser's option and expense.
(b) Purchaser has leased the Property for a number of years and is in a
superior position to assess its condition; Seller expressly makes no warranties as to the physical
condition of the Property and all inspection obligations rest with the Purchaser.
(c) Seller shall have no obligation to remediate or to incur any expense in
connection with any environmental contamination and/or Hazardous Substances of any kind on the
Property and/or which may have in the past, may now be in the process of or may in the future
escape, migrate from or be released in any manner from the Property before or after Closing, and any
remediation of any such environmental contamination or Hazardous Substances at any time shall be
at Purchaser's sole cost or expense
(d) Nothing in this Agreement shall be construed to require Seller to
expend funds for remediation or to accept a reduction in the Purchase Price or other consideration set
forth in this Agreement.
(e) "Hazardous Substances" shall mean:
(i) all substances, the clean up and disposal of which is regulated
by the Comprehensive Environmental Response Compensation and
Liability Act of 1980 (CERCLA) and the Resource Conservation
Recovery Act (RCRA), both as amended and all implementing
regulations and any similar or successor statutes and regulations;
(ii) The applicable provisions of Title 46 of the Alaska Statutes and
all implementing regulations, as amended and any similar or successor
statutes and regulations; and
(iii) All substances containing petroleum or other hydrocarbons,
asbestos, solvents, paints, thinners or other materials, substances or
waste which are or become regulated as hazardous or toxic under
federal, state or local law.
(f) The terms of this Paragraph shall survive the Closing.
11. Property Condition.
As Is, Where Is Sale, Release and Indemnification.
SELLER SELLS AND PURCHASER BUYS THE PROPERTY HEREUNDER "AS IS"
AND "WHERE IS." SELLER SHALL HAVE NO LIABILITY OR RESPONSIBILITY TO
PURCHASER WHATSOEVER FOR ANY VIOLATIONS OF ANY LAW, REGULATION,
BUILDING CODE, ORDINANCE OR OTHER LEGAL REQUIREMENT OF ANY KIND
WHATSOEVER APPLICABLE TO THE PROPERTY AS MAY BE DISCOVERED AT ANY
TIME, INCLUDING BUT NOT LIMITED TO MATERIAL (OR NON -MATERIAL)
HAZARDOUS SUBSTANCES CONTAMINATION, VIOLATIONS OF BUILDING OR SAFETY
CODES, LATENT DEFECTS, DETERIORATION OR PROBLEMS OR LIABILITIES OF ANY
KIND. PURCHASER HEREBY RELEASES SELLER FROM AND SHALL INDEMNIFY,
DEFEND AND HOLD SELLER HARMLESS FROM ANY AND ALL LIABILITIES, COSTS,
EXPENSES OR CLAIMS OF ANY KIND WHATSOEVER ARISING OUT OF OR IN
CONNECTION WITH THE PROPERTY, INCLUDING BUT NOT LIMITED TO ANY THAT
MAY DATE TO OR ORIGINATE DURING THE TIME OF OWNERSHIP OF ALL OR ANY OF
THE PROPERTY BY SELLER OR ITS PREDECESSOR S IN INTEREST.
THE INTENT OF THE PARTIES IS THAT PURCHASER HAS HAD ALREADY AND
SHALL CONTINUE TO HAVE A THOROUGH OPPORTUNITY TO INSPECT AND STUDY
THE PROPERTY BEFORE THE CLOSING, BUT THAT ONCE SUCH CLOSING OCCURS.
SELLER WALKS AWAY FORM THE PROPERTY SO CONVEYED AND FROM ANY AND
ALL LEGAL LIABILITY OR RESPONSIBILITY OF ANY KIND WHATSOEVER ARISING
OUT OF OR IN CONNECTION WITH SUCH PROPERTY. EXCEPT AS EXPRESSLY STATED
HEREIN, AND THAT SELLER SHALL HAVE, AFTER THE CLOSING. NO FURTHER
RESPONSIBILITY OR LIABILITY TO PURCHASER OR ANY OTHER PERSON OR ENTITY
FOR ANY CLAIMS OF ANY KIND THAT MAY ARISE AS TO OR IN CONNECTION WITH
THE PROPERTY.
NEITHER SELLER, NOR ANY OF ITS OFFICERS, DIRECTORS, EMPLOYEES,
AGENTS, ATTORNEYS, OR REPRESENTATIVES HAVE PREVIOUSLY NOR DOES UNDER
THIS AGREEMENT MAKE ANY REPRESENTATIONS OR WARRANTIES, AND NONE OF
THE PERSONS OR ENTITIES DESCRIBED ABOVE SHALL IN ANY WAY BE LIABLE FOR
OR WITH RESPECT TO:
(A) THE CONDITION OF THE PROPERTY OR THE SUITABILITY OF THE
PROPERTY FOR PURCHASER'S INTENDED USE, OR FOR ANY USE
WHATSOEVER;
(B) THE PRESENCE OR EXISTENCE OF ANY HAZARDOUS
SUBSTANCES, ASBESTOS, OIL OR OTHER PETROLEUM PRODUCT
CONTAMINATION OR ANY OTHER MATERIAL AS TO WHICH THE
DISCHARGE, LEAKAGE, SPILLAGE OR PRESENCE ON THE
PROPERTY WOULD BE REGULATED BY APPLICABLE STATE OR
FEDERAL LAW. PURCHASER PURCHASES THE PROPERTY "AS IS"
AND "WHERE IS" AND ASSUMES THE RESPONSIBILITY AND RISKS
OF ALL DEFECTS AND CONDITIONS OF THE PROPERTY (AND
RELEASES AND AGREES TO INDEMNIFY. DEFEND AND HOLD
SELLER HARMLESS FROM THE SAME), INCLUDING BUT NOT
LIMITED TO ENVIRONMENTAL HAZARDS AND DETERIORATION
FROM AGE, WEATHER, DISUSE, LIMITED MAINTENANCE OR
OTHER CAUSES. PURCHASER ACKNOWLEDGES THAT
PURCHASER HAS HAD THE OPPORTUNITY AND WILL HAVE THE
OPPORTUNITY TO INSPECT THE PROPERTY AND WILL BE
RELYING ENTIRELY THEREON.
PURCHASER ACKNOWLEDGES THAT NOTWITHSTANDING ANY PRIOR OR
CONTEMPORANEOUS ORAL OR WRITTEN REPRESENTATIONS, STATEMENTS,
DOCUMENTS OR UNDERSTANDINGS, THIS AGREEMENT CONSTITUTES THE ENTIRE
UNDERSTANDING OF THE PARTIES WITH RESPECT TO THE SUBJECT MATTER
HEREOF, AND SUPERSEDES ALL SUCH PRIOR OR CONTEMPORANEOUS ORAL OR
WRITTEN REPRESENTATIONS, STATEMENTS, DOCUMENTS OR WRITTEN AGREEMENT
AND SHALL REMAIN UNAFFECTED BY ANY REPRESENTATIONS, STATEMENTS OR
UNDERSTANDINGS SUBSEQUENT TO THE DATE HEREOF WHICH SHALL NOT BE
REPRESENTED BY A MUTUALLY EXECUTED AMENDMENT TO THIS AGREEMENT.
The terms of this Section 11 shall survive the Closing.
Purchaser shall provide at its own cost, on -site sewer and water and fire protection.
12. Obligation to Construct Improvements.
Purchaser shall substantially complete construction of a permanent structure sufficient to provide
housing for at least four (4) employees on the Property no later than three (3) years after Closing.
Prior to commencement of construction Purchaser shall submit plans and specifications for
construction of the residence to Seller for approval which approval shall not be unreasonably
withheld. Construction shall not commence until Seller has approved the plans and specifications.
Failure to substantially complete construction within the required time shall cause title to the
Property to revert to Seward without necessity of reentry. The obligation to construct improvements
is a material term of the Agreement which survives closing and which shall be included in the Deed.
13. Remedies:
a. If Purchaser (a) fails, without legal excuse, to complete the purchase of the Property,
or (b) otherwise defaults under this Agreement, the City shall be entitled to retain
the $10,000.00 deposited by Purchaser with the Escrow Agent pursuant to Section
2.a above, and such retention by the City of this $10,000.00 Deposit shall be the
sole and exclusive remedy available to the City for such failure or default by
Purchaser; provided, however, Purchaser shall remain responsible to pay its portion
of subdivision and platting costs owed to the City or third parties and Purchaser
shall not be reimbursed by the City for any subdivision and platting costs already
paid by Purchaser, unless specifically provided otherwise herein.
b. If the City fails, without legal excuse, to complete the sale of the Property, then the
Deposit shall be returned to Purchaser, and City shall be responsible for reimbursing
any subdivision and platting costs paid by Purchaser. The City's return of the
$10,000.00 Deposit to Purchaser and reimbursement of any subdivision and platting
costs paid by Purchaser, shall be the sole and exclusive remedy available to
Purchaser for such failure or default by the City.
14. Costs and Fees:
If either party institutes suit concerning this Agreement, the prevailing party shall be entitled to its
reasonable attorneys' fees and costs.
15. Waiver:
No delay in exercising any right or remedy shall constitute a waiver thereof, and no waiver by the
City or Purchaser of a breach of any covenant of this Agreement shall be construed as a waiver of
any preceding or succeeding breach of the same or any other covenant or condition of this
Agreement.
16. Assignment:
This Agreement is binding on the heirs, successors, and assigns of the parties, but shall not be
voluntarily assigned by either party without prior written consent of the other party, which consent
shall not be unreasonably withheld.
17. Commissions:
Each party represents and warrants to the other that it has not engaged the services of any broker,
finder or other person who would be entitled to any commission or fee in respect to the subject
matter of this Agreement and each shall indemnify the other against any loss, cost, liability or
expense incurred by the other as a result of any claim asserted by any such broker, finder or other
person on the basis of any brokerage or similar arrangement or agreement made or alleged to have
been made.
18. Notices:
No notice, consent, approval or other communication provided for herein or given in connection with
this Agreement shall be validly given, made, delivered or served unless it is in writing and delivered
personally, sent by overnight courier or sent by registered or certified United States mail, postage
prepaid, with return receipt requested to:
Seller:
City of Seward
Kat Sorensen- City Manager
P.O. Box 167
Seward, Alaska 99664
Purchaser: Seward City Tours
PO Box 2031
Seward, AK 99664
or to such other addresses as either party may from time to time designate in writing and deliver in a
like manner to the other party. Notices, consent, approvals, and communications given by mail shall
be deemed delivered upon the earlier of three days after deposit in the United States mail in the
manner provided above or immediately upon delivery to the respective addresses set forth above, if
delivered personally or sent by overnight courier.
19. Entire Agreement:
This document and its attachments contain the entire Agreement between the parties. It may not be
modified except in writing and signed by all parties.
20. Construction of Agreement:
The captions of the paragraphs of this Agreement are for convenience only and shall not govern or
influence the interpretation hereof. This Agreement is the result of negotiations between the parties
and, accordingly, shall not be construed for or against either party regardless of which party drafted
this Agreement or any portion thereof.
21. Surviving Covenants:
The provisions of this Agreement shall survive the delivery of the Deed.
22. Time is of the Essence:
Time is of the essence of this Agreement.
23. Exclusive Agreement:
This Agreement shall constitute an exclusive arrangement between the parties. The City shall not
market, sell, negotiate for the sale of, or convey the Property to any other person, provided that
Purchaser has not delivered notice that it will not close due to an unsatisfied condition.
24. Controlling Law and Venue:
This Agreement shall be governed by, construed under and enforced in accordance with the laws of
the State of Alaska, and venue for actions between the parties arising out of or related to this
Agreement shall be in the Alaska Superior Court, Third Judicial District, Anchorage, Alaska.
25. Further Assurances:
Whenever requested to do so by the other party, the City or Purchaser promptly and expeditiously
shall execute, acknowledge and deliver any and all such conveyances, assignments, confirmations,
satisfactions, releases, instruments of further assurance, approvals, consents and any and all further
instruments and documents as may be reasonably necessary, expedient, or proper in order to
complete any and all conveyances, transfers, sales, and assignments herein provided, and to do any
and all other reasonable acts and to execute, acknowledge and deliver any and all documents as so
reasonably requested in order to carry out the intent and purpose of this Agreement, including but not
limited to subdividing and platting the tract containing the Property and the parcel to be the Property.
26. Possession:
Purchaser shall receive possession of the Property at the closing and recording of the Quitclaim deed.
Executed this 22nd day of August ,2023
Buyer:
Seward City Tours
144,A-
8/22/2023
Jonah Swiderski
State of Alaska
Judicial District (or County of
(or Municipality of )
)
The foregoing instrument was acknowledged before me this of , 2023 by Jonah
Swiderski of a (state or place of incorporation) corporation, on behalf of the
corporation.
(Seal)
Notary Signature
My Commission Expires:
Seller:
CITY OF SEWARD
Kat Sorensen, City Manager
State of Alaska
Seward Judicial District
The foregoing instrument was acknowledged before me this this of , 2023 by
Kat Sorensen, City Manager Seward, Alaska, on behalf of the City of Seward.
Notary Signature
My Commission Expires: