HomeMy WebLinkAbout03062024 PACAB PacketPort & Commerce Advisory Board
Agenda Packet
Regular Meeting
March 6, 2024
City Council Chambers 12:00 p.m.
The City of Seward, Alaska
PORT AND COMMERCE ADVISORY BOARD
MEETING AGENDA
City Council Chambers, 410 Adams Street
Please silence all cell phones and devices during the meeting
Chair Bruce Jaffa
Vice Chair Ben Smith
Board Member Dwayne Atwood
Board Member Tom Miller
Board Member Melissa Schutter
Board Member Open
Board Member Open
Assistant City Manager Jason
Bickling
Harbormaster Norm Regis
City Clerk Kris Peck
March 6, 2024 at 12:00 p.m.
1.CALL TO ORDER
2.PLEDGE OF ALLEGIANCE
3.ROLL CALL
4.CITIZEN COMMENTS ON ANY SUBJECT (Those who have signed in will be given the first
opportunity to speak. Time is limited to 3 minutes per speaker and 36 minutes total time for this agenda item.)
5.APPROVAL OF AGENDA AND CONSENT AGENDA (Approval of Consent Agenda passes all
routine items listed under Item 7. Consent Agenda items are not considered separately unless a council member
requests. In the event of such a request, the item is returned to the Regular Agenda. Marked with *.)
6.SPECIAL ORDERS, PRESENTATIONS, AND REPORTS
A.Proclamations and Awards
1)Proclamation
B.City Administration Report…………………………………………………………..Pg. 3
C.Other Reports and Announcements
1)Alaska Railroad Report…………………………………………………………..Pg. 7
D.Presentations (Presentations are limited to ten minutes each, excluding Q&A, and are limited to two per
meeting unless increased by council.)
1)Presentation
7.CONSENT AGENDA
A.Minutes of Preceding Meeting
1)* Approve February 7, 2024 Port and Commerce Advisory Board Meeting Minutes
B.Resolutions-None
C.Other Items-None
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8.UNFINISHED BUSINESS-None
9.NEW BUSINESS
A.Resolutions-None
B.Other New Business
1)Discuss- SMIC Development Plan……………………………………………Pg. 8
2)Discuss-Housing ………………………………………………………...……Pg. 30
10.INFORMATIONAL ITEMS AND REPORTS (No action required.)
A.Reminder of Meetings
1) Work Session March 20,2024 South Harbor Uplands/New Harbormaster Building
2) Regular Meeting on April 3,2024 Utility Infrastructure
B.Other Items-None
11.CITIZEN COMMENTS (There is no sign in for this comment period. Time is limited to five (5) minutes
per speaker.)
12.BOARD AND ADMINISTRATION COMMENTS AND RESPONSES TO CITIZEN
COMMENTS
13.ADJOURNMENT
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Assistant City Manager
Jason Bickling
Electric Utility: Both the City Manager and I are taking on some extra pieces in the
interim while the MEA management contract is getting set up, including regular
meetings with staff, and continuing with the process of infrastructure project work. The
MEA contract will come before council in March. Even after that is set up, we will
continue some extra tasks as there is need for direct Seward representation on state
boards and committees (MEA can’t represent Seward.)
Public Safety Feasibility Study: R&M presented the results of the feasibility study to
Council during a work session on January 22nd. It recommends new facilities for both
the Fire and Police Departments at new locations. It is on Legislative History if you are
interested in looking at it in detail. In the coming months, P&Z and Council will be
having worksessions to further discuss recommendations and make next steps.
Public Works Facility: R&M is wrapping up the 65% design which will be brought before
council in a future work session and the project will then move to a 95% design.
Comprehensive Plan: We know that Council, Administration, Community Development,
and P&Z will be developing tasks and timelines for a Comprehensive Plan Revision.
Hazard Mitigation Plan: We will be working with the Borough OEM to develop a
collaborative Hazard Mitigation Plan.
Legal: I’m continuing to work regularly with the city attorneys on several litigation fronts
including the Chugach Rate Case, Short Term Rental, and Land Use issues.
Adminstration Report
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We received the payment for the Coast Guard land acquisition and are waiting for that to be
recorded with the Borough.
The Land Sale with 4JBC closed. With that sale finalized, we are currently sourcing new
electric pedestals to additional power located in SMIC boat yard, more to come later.
Updated schedule on the Coast Guard vessel schedule: Nothing new as of 1-24-2024
•Seward FRC Homeport (FY2019 MASI / $1.0M; Anticipated FY2024 MASI / $42M):
Scope: Acquire real property and complete NEPA for future FRC homeport.
Status: CEU Juneau obligated funds on 25 Aug 2023 to purchase a 1.5-acre parcel at the Seward
Marine Industrial Center (SMIC) for future waterfront improvements.
Schedule
Mar 2024: RFP package to contracting.
Apr 2024: Design/Build solicitation released.
Sep 2024: Contract award.
Projected Construction Completion Date (CCD): September 2026
Notes: Construction pends funds appropriation which is anticipated in FY2024.
Polar Bear Jump was a success, (no accidents reported in the area.)
Summer scheduling for North Dock use is filling up and expecting a busy season.
Starting to see requests for 50/300 Ton lifts.
Whale Watching Tours are scheduled to start on March 8th and will run daily.
PACAB
Harbor
Harbormaster Norm Regis
Adminstration Report
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Adminstration Report
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Updated schedule on the Coast Guard land acquisition:
•Seward FRC Homeport (FY2019 MASI / $1.0M; Anticipated FY2024 MASI / $42M):
Scope: Acquire real property and complete NEPA for future FRC homeport.
Status: CEU Juneau obligated funds on 25 Aug 2023 to purchase a 1.5-acre parcel at the Seward
Marine Industrial Center (SMIC) for future waterfront improvements.
Schedule
Mar 2024: RFP package to contracting.
Apr 2024: Design/Build solicitation released.
Sep 2024: Contract award.
Projected Construction Completion Date (CCD): September 2026
Notes: Construction pends funds appropriation which is anticipated in FY2024.
Adminstration Report
6
Port Activity Update March 6, 2024
THE ALASKA RAILROAD'S MISSION -- Through excellent customer service and sound business
management practices, provide safe, efficient, and economical transportation and real estate services
that support and grow economic development opportunities for the State of Alaska.
Port Traffic
The port continues to be busy with pipe shipments, break bulk barges, fuel tankers and winter
yard storage. We logged 22 vessel dockings between January 1 and February 26.
Longshore crews recently unloaded the BBC Emerald, which was in port February 22-26. That
3,500 ton load of pipe is bound for the North Slope and will leave Seward by truck. The port will
receive two more pipe ships by April 10.
The rail mainline closed January 15 for bridge projects at Trail River and Falls Creek and is
scheduled to open again on April 15.
The cruise ship season will begin April 22 with the arrival of the Norwegian Jewel. The 2024
schedule currently includes 92 cruise ships for a total of 104 docking days.
Port Capital Projects
On February 12, ARRC Administration gave a City Council presentation on the proposed cruise
dock replacement concept and timeline. The $135 million construction project will begin in the
fall of 2025. Additional information is available at: https://sewardcompany.com
Removal of the coal dock conveyor belt and loading arm is going forward. The pre-bid contractor
meeting was held on January 17. The work is set for the summer and autumn of 2024.
Current cruise dock repairs include east-side decking, under-dock catwalks and piling. The east-
side deck reinforcement will be completed before the start of the cruise ship season.
The freight dock expansion and improvement is currently under review. That dock project is
scheduled to begin in late 2026 and most of the cost will be met by a $19.8 million federal grant.
Dwayne Atwood, Accredited Maritime Port Executive
Seward Port Manager
907-265-2696 office | 907-362-6038 mobile
mailing: PO Box 95, Seward, AK 99664
physical: 913 Port Avenue
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220202 PACAB LAYDOWN
Housing Issues
Affecting
Employment in
Seward
Presented By: Nicole Lawrence of
Seward Properties
Presented 2/2/2022 to PACAB
Nicole Lawrence of Seward Properties
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Presented 2/2/2022 to PACAB
Nicole Lawrence of Seward Properties
General Info on Rentals
Most people moving to Seward prefer to rent before buying
To learn the area and the job
Sometimes they have a house elsewhere that they need to sell first
People looking for jobs plan ahead
Details about which rental will be opening is often not known until the month before
This makes planning difficult and then potential employees cannot commit
once people find a good rental they often stay in that unit for a long time
Not much turnover with leases on properties with good rental rates, utilities, and location
Results in a low vacancy rate and little openings for long -terms rentals
A major barrier for renters in Seward is that they have multiple pets
Landlords prefer to rent to people without pets
Sometimes paying a larger deposit will help
Fducating landlnrds that it cnmes down to resnnnsihle net nwnershin/references nn nets
31
Presented 2/2/2022 to PACAB
Nicole Lawrence of Seward Properties
Length of Rentals in Seward
Summer
n -7 n,
3
based off S
Properties' n
32
Presented 2/2/2022 to PACAB
Nicole Lawrence of Seward Properties
Rental
113
Total units under management
based off Seward
Properties' managed rentals •Leases renewed •Leases ended
Rentals are challenging due to availability more than prices
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Seward
Rental Prices
Rental prices have stayed
very close to the same as
when we started
managing properties 11
years ago.
Utilities account for some
of the major cost when
renting a house and
should always be
researched before signing
a lease.
based off Seward
Properties' rentals only
Apartments (generally include utilities - very different layouts, size and amenities)
70% of our rentals are apartments or shared walls
Size Monthly Rental Rate of Rentals (SProp)
1 bed 900 23%
2 bed 1,150 14%
3 bed 1, 300 30%
4 bed 1, 700 1 %
Houses (utilities are generally additional and avg extra $150-$500/month depending on size
very different layouts, size and amenities)
30% of our rentals are houses
Size Monthly Rental Rate of Rentals (SProp)
1 bed 1,100 10%
2 bed 1,250 14%
3 bed 1, 500 6%
4 bed 1, 700 1 %
5 bed 1, 800 1 %
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Presented 2/2/2022 to PACAB
Nicole Lawrence of Seward Properties
What Can A Renter Afford?
It is recommended to spend 30% of your monthly income on rent
For a 2 bed apt at $1150/month including utilities that would mean you would need to be making
3,800/month or $46,000/year
For a 3 bed house at $1500/month plus $350/month in utilities that would mean you would need to be
making -$6,200/month or $74,000/year
With home prices increasing, mortgages are increasing, and rents will too
Property owners want to cover their mortgages when they are renting out homes
Sales price increase = delayed rental rate increase
Three years from now average long term rental rates might go up 20%
A home renting for $1250/month in 2021 may be renting for $1450/month in 2024
Tenants in the future possibly paying over 30% of monthly income unless wages rise to meet housing
cost needs
Makes it harder for tenants to purchase
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Presented 2/2/2022 to PACAB
Nicole Lawrence of Seward Properties
What Can A Buyer Afford?
It is recommended to spend 30% of your monthly income on housing
For a house costing $305,000, with 5% down and 3. 5% interest on a 30 year loan...
184
10- SUM
173(V
i
payment -
756°
I'. 1
a 0 Q
fl
6) r1,295 D 0000/y U
Interest rates affect what a buyer can afford
This only work if interest rates stay low. When they go up, so do mortgages, which then increases the
amount of annual income a buyer needs to afford that monthly payment.
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Seward Residential Average & Median Sales Prices
400, 000
300, 000
200, 000
nL
LL
100, 000
0
A Average Sales Price E Median Sales Price
M
243,00C$240, 006$252,00
193001212,00C$_ DO„ 180,
006 ' 2012
2013 2014 2015 2016 2017 2018 2019 2020 2021 The
residential median sales price in Seward in 2021 was $306,000. This is the first year in history that it has broken 300,
000.
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Presented 2/2/2022 to PACAB
Residential Prices in e w a r Nicole Lawrence of Seward Properties
I..
I 11r,u° 11K-
45.7%
201 K- WOK 301 K- OK 401 K+
52% of homes are now selling for over $300K as compared to 35% 2 years ago
From 2009 - 2019, only 17 houses had sold for over $400K
From 2019-2021, 25 houses sold for over $400K in the past 2 years
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Seward Residential Rate of Appreciation
30.00%
24.50%
20.00%
10.00%
0.00%
10.00% -5.00%
NI o .' \1 o 0
o o`
Yearly Comparison
Avg increase in value was 5% per year from 2012 - 2020 but jumped up 24.5% last year = not sustainable
Rate of appreciation is not sustainable but with limited land/homes and more demand than supply, likely rate of
appreciation will go back down to 5% as an average. It is unlikely that homes will go down in value (with current
average annual home inventory vs. demand)
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Seward "Sold" and "Days on Market" Residential Statistics
Days on Market 0 Number Sold
200
184- ,1,7,9
150 154
l
1y28
100
86 /-....
78
4
50 44-4j1-- _3+7----"
52--____48_ ,
3+7- ,,
45
34_
4fi
24
0
2012 2014 2016 2018 2020
The total number of homes sold (in red) has stayed pretty steady since 2013. Without additional inventory (new
construction), this number will likely remain the same.
The days on market has been decreasing drastically for the past decade. The average home is on the market 44 days
but that is accounting for fixer uppers and homes over $600K which might be on the market for a year or more.
Homes from $200K-$500K were on the market in Seward in 2021 for an average of 5 days!
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Presented 2/2/2022 to PACAB
Types of Buyers 2019 - 2022 Nicole Lawrence of Seward Properties
Second Home/Investment •
75% of the buyers in Seward are peopleCurrentlyLivinginSeward
Moved to Seward 17.6% 25.7% living here and using the home as their
t primary residence.
568% \
Non Primary Residence Purchasers
Many 2nd home buyers purchase non-
Local Seward
financeable properties and fix them up.
Out of state buyers tend to respect City
zoning rules.
Of the properties sold over the past 2 years,
only 3 have been identified as being
purchased with the primary intent of
changing the use from primary residence to
nightly rentals. Out of State
31.6%
26.3%
42.1 %
AK 2nd Home
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r
Demographics of Buyers
Buyers under 35
have increased
113% in 5 years.
Buyers 35-50
have remained
steady.
Buyers 50 and
over have
decreased by
50%. * many are
investments
Information Based off Seward Properties' Data from 2016, 2019 and 2020
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Demographics of US Population/Potential Buyers
Total US Population by Generation in 2020
Shore of total population
Greatest Gen (92-100 years in 2020): 1%
Silent Gen (74-91 years in 2020): 7% —
f Gen-Z (0-20 years in 2020): 26%
Baby Boomers (55-73 years in 2020): 21 %
Gen-X (39-54years in 2020): 20% / \ Millenials (21- 38 years in 2020): 25%
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Presented 2/2/2022 to PACAB
Marl(et Trwith Lain Sewa Nicole
Lawrence of Seward Properties Outsl*
de City Li*mi*ts 2018 - $
50,000/acre 2021 - $
100,000/acre Land
is becoming more scarce resulting in extremely high sales prices Building
costs are also high - high costs result in more pressure on limited existing inventory resulting in more offers and
higher residential sales prices These
numbers are averages and depend on many variables including location, elevation, ease of utility installs, flood zone,
etc.
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Possible Solutions?
Presented 2/2/2022 to PACAB
Nicole Lawrence of Seward Properties
More Houses/Land & Builders
Support making City land available for developing
Support expanding utilities to make building more affordable
More available housing means less competition for current inventory which would slow the rate of growth of
home and land prices
Getting developers who can add consistent & quality housing to the market at a rate to keep up with demand
We have lots that people want to build on but our builders are at capacity and often 6 months to a year out
City Enforcement
Consider a cap on the total amount of local nightly rentals to allow for more long-term rentals as many other
Cities are doing
Don't allow nightly rentals in areas not zoned for it
Incentivize/Enforcing building to happen sooner on lots inside City limits - especially ones sold by the City
More Multi-Plexes
Not low income but quality multi-plexes with different sized apartments
Downtown & walkability are important considerations for tenants' needs/wants
Focus on long-term rental opportunities for year-round employees
If built new, bunkhouses don't usually pencil out even with winter tenants
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Presented 2/2/2022 to PACAB
Nicole Lawrence of Seward Properties
ewev&-C %oro ernes
SALES• RENTALS• MANAGEMENT
Questions?
Presented By: Nicole Lawrence
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2024 DEADLINES FOR PACAB AGENDA AND PACKETS
Pre-Meeting
(Administration)
Clerk’s Deadline
(for City Calendar ad)
(Tuesdays @ noon)
PACAB
Meeting Date
(Wednesdays unless otherwise noted in
italics)
December 22, 2023 **December 27,2023 January 3, 2024
January 26, 2023 January 30, 2024 February 7, 2024
February 23, 2024 February 27, 2024 March 6, 2024
March 22, 2024 March 26, 2024 April 3, 2024
April 19, 2024 April 23, 2024 May 1, 2024
No June Mtg
No July Mtg
No August Mtg
August 23, 2024 August 27, 2024 September 4, 2024
September 20, 2024 September 24, 2024 October 2, 2024
October 25, 2024 October 29, 2024 November 6, 2024
November 22, 2024 November 26, 2024 December 4, 2024
*Subject to change if/when PACAB meetings change.
**Date moved due to Christmas Holiday
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PACAB
Meeting Date Meeting Topic
REGULAR 1/3/2024 Set Regular and WS Topics
WS 1/17/2024 Comprehensive Plan
REGULAR 2/7/2024 Fisheries and By Catch Issues/Chamber Marketing
WS 2/21/2024 Sewer Treatment Options/Sidewalks (Public Works Director to attend)
REGULAR 3/6/2024 SMIC Development Plan/Housing Issues
WS 3/20/2024 S. Harbor Uplands/New Harbormaster Building
REGULAR 4/3/2024 Utility Infrastructure
WS 4/17/2024 Alternative Energy Hydo, Tidal, and Solar/Heat Loop Update
REGULAR 5/1/2024 Set The Rest of Regular and WS Topics
WS 5/15/2024
REGULAR 9/4/2024 AML Attendance
WS 9/18/2024 Legislative Priorities
REGULAR 10/2/2024 Approve Legislative Priorities
WS 10/16/2024
REGULAR 11/6/2024
WS 11/20/2024
REGURLAR 12/4/2024 Harbor Tariff
WS 12/18/2024
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