HomeMy WebLinkAboutRES2024-028 SMIC Development PlanSponsored by: Port and Commerce Advisory Board
I CITY OF SEWARD, ALASKA
RESOLUTION 2024-028
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD,
ALASKA, ADOPTING THE SEWARD MARINE INDUSTRIAL CENTER
DEVELOPMENT PLAN AS UPDATED IN NOVEMBER 2022
WHEREAS, through Resolution 2006-131 the City Council assigned the Port and
Commerce Advisory Board to review and update the Seward Marine Industrial Center
Development Plan (SMIC); and
WHEREAS, the SMIC Development Plan was updated in 2008, 2011,2018 and 2022; and
WHEREAS, at the Port and Commerce Advisory Board regular meeting on April 3, 2024,
they approved the November 2022 updated SMIC Development Plan; and
WHEREAS, the City Harbor Department is actively looking to expand the infrastructure
at SMIC.to further expand business opportunities and services
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF SEWARD, ALASKA, that:
Section 1. The City Council hereby adopts the November 2022 Updated Seward Marine
Center Development Plan
Section 2. The plan will be updated by Administration as needed
Section 3. This resolution shall take effect immediately upon adoption.
PASSED AND APPROVED by the City Council of the City of Seward, Alaska this 13
day of May 2024.
th
I
THE CITY OF SEWARD, ALASKA
vs?
Sue McClure, Mayor
AYES:
NOES:
ABSENT:
ABSTAIN:
Crites, Einch, Barnwell, Wells, Osenga, McClure
None
Calhoon
None
ATTEST:
I Kris Peck
City Clerk
(City Seal)■^'.-foFPVr>
City Council Agenda Statement
Meeting Date: May 13, 2024
To: City Council
Through: Kat Sorensen, City Manager
From: Port and Commerce Advisory Board
Subject: Resolution 2024-028, Adopting The Seward Marine Industrial Center
Development Plan As Updated In November 2022
Background and justification:
Through Resolution 2006-131, the City Council assigned the Port and Commerce Advisory Board
to review and update the Seward Marine Industrial Center Development Plan. The plan was
updated in 2008,2011,2018 and again in 2022.
The Port and Commerce Advisory Board approved the November 2022 Updated Seward Marine
Industrial Center Plan at their regular meeting on April 3, 2024 Resolution 2024-001.
The Cities Harbor Department is actively looking to expand the infrastructure at Seward Marine
Industrial Center to further expand business opportunities and services.
Comprehensive and Strategic Plan Consistency Information
This legislation is consistent with (citation listed):
Comprehensive Plan: 3.5.1 Maintain a thriving port of Seward through harbor improvements,
infrastructure expansion, and implementation of management plans.
Strategic Plan: We are a community that promotes economic diversity, encourage
growth of year-round businesses, desires environmentally responsible
industry, and seeks jobs that promote a higher standard of living.
Other: Seward Marine Industrial Center Development Plan
Certification of Funds
Total amount of funds listed in this legislation: $ 0
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
Fund Balance Information
Affected Fund ():
General SMIC Electric Wastewater
Boat Harbor Parking Water Healthcare
Motor Pool Other
Note: amounts are unaudited
Available Balance $
Finance Director Signature:
Attorney Review
Yes Attorney Signature:
Not applicable Comments:
Administration Recommendation
Adopt Resolution
Other:
SEWARD MARINE INDUSTRIAL CENTER
DEVELOPMENT PLAN
Prepared by
Seward Harbormaster and Community Development Department
in Cooperation with the
Seward Port and Commerce Advisory Board
Adopted by Resolution 2018-000
on January 3 2018
Updated November 2022
TABLE OF CONVENTS
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BASIC MARINE INFRASTRUCTURE
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MANAGEMENT •aiatr*i#a.a.*.#a#*.#**#iiiiiiii##riiiii#i##riiiii*iiiii.isi#.ia#s.#.a#.....##.#..;..s.#...r...s..aa..a#.a#i*a.#a.ar....•
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Land Values
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Public ilities 8
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Environmental Concerns
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APPEARANCE aa#a.ata*isa#a.#r.a#*fra#i*#i*ai*#*iiii#ii*#*ais#ri#*ii*i#ii#*►###iiiiliiri##i*a#sr*#!**ii#ii*i*iiiii**i**ir*##iiiii*ii**#ii
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PLAN IMPLEMENTATION
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Adopting a Plan
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Exhibit A-SiteMap: Fourth ofJuly reek 1
Exhibit B#Preliminary Subdivision Layout .ar•#..#rr#r.#./#.#r##.#r/#r.#,.#rii•//#/#r//#./#.//i.#•/..•r.#1
Exhibit C-Project Overview! 1980 Project De erlption 4..,1....../##.,...l..l./,#.#..,#....#..#.#1
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Exhibit F-Utility Layout
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. Sewer 1
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i11
SEWARD MARINE INDUSTRIAL CENTER
DEVELOPMENT PLAN
INTRODUCTIONDuring the mid-1970's,the City began developing a plan to create
an industrial complex at the Fourth of July Creek area to service the maritime industry. The
City annexed the valley in 1977,acquired lands through the Alaska Statehood Act Municipal
Entitlement, and completed the 1979 Fourth of July Creek Industrial Development
Feasibility Study. That study identified four examples of industries that would be more likely
than others to locate in the Fourth of July Creek area: fisheries, shipyard, petrochemical
processing,and heavy industry such as ore refining and bulk freight handling.
The foundation for the project was a shipbuilding facility proposed b the Danish firm
Burmeister-Vain to meet the high demand for new vessels in the king crab fisheries. With
the crash of the fish stock in 1980, the project evolved into a mix of ship repair facilities,
general cargo,fisheries processing,and other industrial uses. The project today is essentially
as described in the 190 Century- uadra report entitled Fourth of July Creek Industrial
Marine Park Project Description and shown on Figure 2 -Project Overview and Figure 3 -
Site Plan(Appendix Exhibits O&D).
[upon completion of a comprehensive 1981 Environmental Impact Assessment, the City
embarked on a multi-year construction project that ultimately invested the majority of the
ity's share of the port bonds and State ail revenues in an access road, the relocation of
Fourth of July Creek, a retaining dike,basin, breakwater, and shipuft. with a Mate grant,
new investment work has been done to the North Dock and a new floating dock for a total
investment of approximately 65 million.
Access, utilities and land availability helped spawn development of the sawmill and the
prison within the boundaries of the Fourth of July Creek valley complex. The shiplift has
been operational since 1985, and a building was erected to cover large banes and vessels,
new break roam, and machine shop buildings. Development activity continues to occur in
the area known as the Seward Marine Industrial Center SMIO .
THE PLAN
GOAL An action-oriented document to guide the City and private enterprise In
completing the development of a vibrant and successful marine industrial
center
The Seward Marine Industrial Center Development Plan is a direct outgrowth of the
community's desire to enhance, encourage, and promote an atmosphere favorable for
additional private sector economic development at the Seward Marine Industrial Center.
For the purpose of this plan,the Seward Marine Industrial Center is considered to include
the 128.5 acres immediately adjacent to the harbor basin,south of Spring Creek and west of
I
the prison property(Tract A and Tract H,Johnson—Swift ub[ivisio 1,USS No. 1 1,Parcel
ID 14 33004 [Appendix Exhibits A and B] .
The Seward Marine Industrial Center Development Plan becomes a component of the City
of Seward Comprehensive Plan. whereas the comprehensive plan contains both advisory
and binding elements, this Plan contains only advisory elements comprised of goals, issues,
and actions. The binding element of the comprehensive plan is the nand Use Plan Which i
a legal document that must be adhered to and can be revised only by ordinance.
As part of the Process of finalizing the Plan,the City solicited initial suggestions from various
public boards and commissions and interested groups such as the Seward Chamber of
Commerce. The draft Plan was presented to the public at advertised public hearings and
through review by the aforementioned groups. The issues raised and recommendations
made by those individuals and organizations are reflected in this document. The original
Plan was approved by the Seward City Council in 1995. It was then updated in 2008 and
reviewed in toll.The most recent update was completed in 2018.
n effective plan is one which is implemented. The City of Seward has a track record of
accompllshig actions outlined in its plans.Recommendations from previous plans that have
been accomplished within the SNAG area include:
0 Syncrolift with upland rail system
• 315 ton Travelift
0 Bulk fuel facility
• 430' North Bock
• Fisheries clock and plant improvements
• New DEC approved outf ll
• Electrical substation
• Primary electrical service
• 34 individual power stalls,water,and sewer systems
• Secondary sewer treatment plant
0 Preliminary real estate subdivision plat
• Some fill and cargo la down area
• Some utility improvements including area lighting
• Campground improvements
• Some real estate development(leases and sales)
• New 400 and Boo Amp service located at the North Dock
• bubble mound breakwater
Nash down pad
• 10-ton crane
• 1 ' floating clock(Fisherman's Float)
0 Building for wash down pad
• Fenders on North Dock
• widening of the 315 ton Travelift and Travelift pit
BASIC MARINE INFRASTRUCTURE
2
GOAL Continuation of Upland Development
The Basin envisioned by the 190 Century- uadra concept was enclosed, protected and
dredged to - 1 feet mean lower low water(MLLW) to accommodate medium-draft vessels
for ship repair,cargo off loading,anti general moorage.'1'he basin has been dredged to design
with-25 foot berths adjacent to the Shiplift Dock and the forth Dock.The basin is protected
by a rip rap breakwater along the east shoreline, by a filled sheet pile cell breakwater along
the south and southwest,and by sheet piling along a section of the North Dock, It is still open
to the bay along the west and northwest sides.
Unlike a rock rip rap breakwater, the gravel-filled interconnecting sheet pile cellular
cofferdams making up the South Breakwater require regular maintenance to prevent
failure.
1. Monitor and repair South Breakwater anodes as needed.
Docks described in the 190 Century- uadra concept included an inner dock along the
north basin shoreline,deep-water sheet pile cell breakwater and dock enclosing the basin,a
ship repair dock,a boat ramp,and other miscellaneous docks.A ship repair dock,small fish
processing dock,barge ramp,and medium draft ergo dock have been constructed and are
in operation.
There is a growing demand for additional General-Purpose floorage dock space.
1. Finish surfacing the North Dock and staging areas with concrete, asphalt, crushed
rock, or Roto-Mill(crushed asphalt)including the installation of drainage pipes.
The Barge Damp repairs have been completed.
2. Maintain the Fisheries hock per lease agreement.
The 315 ton Tra elift Dock has been widened to accommodate the newly widened Travelift.
The Shiplift Dock is maintained per a Maintenance and Operating M agreement with
the Syncrolift lessee.
. Repair or replace Syncrolift dock ladders, bumpering system and corrosion control
of the pipe piling in the splash zone by application of a protective coating.
4. Monitor maintenance of the Shiplift Dock per M&O agreement for the useful life of
the facility.
Shiplift Operations are divided between the mobile 315 ton Tra eli t and the 5000 long
ton Syncrolift platform. The Syncrolift was an 'integral part of the original SMIC concept
3
1
plan. The Travelift was purchased and put into operation by the City in 1990 and upgraded
to a 315 ton Travelift in 2015 to fill the demand for lifting vessels too small to economically
use the Syncrolift platform but too large for the ity's 50 ton Travelift.
number of improvements relative to the 315 ton Travelift operation have been identified.
1. Expand existing water and electrical systems in the boat storage area.
. Encourage the development of full-service work stations for major maintenance/
construction projects on vessels in order to limit the degree of maintenance allowed
in the storage area.
. Provide additional restroorns as needed.
The Syncrolift, although owned by the City, is operated by a contractor through a
Maintenance and Operating Agreement.
The Uplands forming SMIC were for the most part created from the material dredged
during the formation of the basin. The original design called for a grade of 18 feet above
MLLW. The roads are to grade, but some of the land is below desired grade. Drainage
ditches were placed along Delphin and Olga Streets and the north property line to divert
water runoff in the summer. Luring winter, ditches and culverts freeze causing runoff to
pool In the lower areas behind roads.
1. Provide engineer-designed drainage.
. Pill and grade the storage area to the correct elevation for the continued
improvement of drainage.
Add to Article 18 of all new leases, under Maintenance, "Do not push snow into
ditches."
MANAGEMENT
GOAL A management level that is responsive to the needs of its customers and users,
adequately serves the public's needs, protects the ity's investment, and
ensures public safety
Security and concerns related to potential environmental pollution grow as the number of
boats,cargo,and equipment on-site increases.Sufficient revenues are necessary for effective
on-site management and security of this public facility.
4
1. Seek a rate of return from the use of public facilities,land assets,and equipment that
will adequately cover deferred maintenance and replacement costs.
a. Examine electric rate method of calculating charges to users
b. Examine credit card rate method of calculating charges to users
. Continue to review the Upland Boat work Policy and Best Management Practices to
ensure compliance with the Clean water Act and Local,State,and Federal laws and
regulations where they apply.
. Ensure that the facility and uses are consistent with the requirements of the Maritime
Security Act of 2002 33.CFR 104.105 and maintain the Facility Use Plan.
LAND USE
SAL Sound, maximized, and coordinated development of private and public
uplands and facilities in support of the needs of the users and visitors
Platt n The City has formulated a subdivision of SMIC and the Fourth of July Creek
Valley. The subdivision plat dedicates roads and provides as-built utility and access
easements. It creates legal lots for existing leases and leaves the majority of the SMIC area
in blocks.
1. Maintain an accurate map through survey and plat amendments for all current and
future leases.
Land Value In order to provide adequate public services and maintenance at SMI ,it is
important that the City receive a fair market value—the current rate is % annually of the
appraised value- for the use of its limited land assets.
1. Reappraise the lease land every five years. The adjusted annual rental payment shall
be the appraised fair market rental value of the leased land at the highest and best
use of the leased land.
. Increase the annual rental payment every year in an amount that reflects the
increase, if any,in the cost of living for the previous year as stated in the Consumer
Price Index, All Urban Consumers, Anchorage, Alaska Area, All Items 1967=100
('1CP111), as published by the United States Department of Labor,Bureau of Labor
Statistics.
Land Uses SMIC is zoned Industrial. The Seward Zoning Code, Table 15.10.225 Land
Uses Allowed,establishes what uses are allowed within that district.Uses allowed within the
SMIC should focus on strengthening and enhancing the area as a center for marine and other
compatible industries.
5
1, Review Table 1 .10.225 to ensure the uses listed are compatible with the overall
intent of the SMIC area.
Parks and Recreation Under State statutes,the City is required to provide public access
along Spring Creek, Fourth of July Creek, and Resurrection Bay. Although the area is
principally industrial, limited recreation opportunities can be made available without
interfering with surrounding industrial uses.
1. Maintain access from lush Road to the mouth of Spring Creek and provide a
camping area,and include signage of the access route.
. Maintain separation between the campground and industrial uses.A chain link fence
will be installed to separate the forth Dock from the Campground.
MARKETING
GOAD. A comprehensive marketing program primarily targeting fisheries, ship
repair, and marine transportation industries along with a healthy and
complementary mix of commercial support businesses
Current City marketing efforts include: attendance at trade shows,overseas trade missions,
brochures,and advertising.
I. Maintain a sign along Nash road and central to the SMIC area showing what lands
are available for lease(Appendix Exhibit E).
. Maintain a fair market value base line from which leases will be negotiated.
. Continue to encourage multiple users.
. Evaluate utility rates to encourage more usage while ensuring a fair return to the
public utility system.
. Continue to support the Seward Chamber of Commerce as the marketing arm of the
City of Seward.
TRANSPORTATION
GOAL An adequate transportation infrastructure that will serve the needs of the
industrial complex, allow for growth, and attract new business to the
community
6
Roads: Nash Road provides the only ground access to SMIC and the Fourth of July Creek
area.:'o adequately serve SMIC and attract new industries,it is of the utmost importance to
maintain and improve the public road system to the highest standard economically possible.
1. Postpone paving interior SMIC streets until site and utility developments are
completed.
Although Parkin has not been a problem in the past, as more activity develops it will
become imperative that vehicles park in designated areas off public roads and away from
equipment activity.
1. Ensure that all lease sites include adequate area to comply with parking
requirements set forth in the zoning code, and that lessees provide on-site parking
for employees and customers.
2. Maintain signage in parking areas in support of the public clocks.
Although not directly associated with SMIC, having a well-maintained Airport is an
important transportation link for the delivery of parts,goods,and services to the industrial
center businesses.
1. Continue to work with the Alaska Department of Transportation and Public
Facilities to improve airport facilities and protect it from river flooding and erosion,
PUBLIC FACILITIES All SERVICES
GOAL A full range of public facilities and services adequate to provide a safe and
comfortable work environment for users and visitors
Public Facilities are currently limited from available to non-available.
1. include construction of an additional public restroom/shower facility in the ity's
Capital Project Plan.
. Improve paving, fill, fencing, and storm water drainage collection and treatment
infrastructure as development occurs.
Public Sa e y The distance from town limits police coverage to an occasional patrol and
also increases fire response time. Although a pumper/ladder truck is located in the harbor
storage building,there are no scheduled trained fire department personnel on-site to operate
them. The fire truck is staged on-site and ready for volunteer personnel.
1. Evaluate each new development as to its impact on fire and police services.
7
. Complete water system to loop all lines or upsie all cross-feeder lines and provide
additional fire hydrants as needed.
. Identify and reserve a site for a fire station to serve the Fourth of July Valley area.
4. Include a separate fire station in Capital Project Plan,to accommodate more
and/or larger equipment and supplies to support increased industrial development.
Possibly include a joint small office for Seward Police.
. Explore possible cooperative arrangements with Spring Creek Correctional Facility
staff to provide initial fire or other public safety needs.
Public Utilities such as primary water,sewer,and electrical service systems have not been
extended throughout the undeveloped SMIC areas (Appendix Exhibits F143). The cost of
extending these utilities creates a disincentive to the establishment of smaller businesses.
1. Improve the water and electrical systems in areas associated with the 315 ton
Travelift to accommodate increased public use.
. Include in City capital planning the extension of electrical, sewer, and water
throughout the industrial area.
. Support updating Seward City Code to facilitate utility extension development.
. Continue to place all electric utilities below ground.
ENVIRONMENT AND WASTE MANAGEMENT
GOAL A high level of environmental regulatory compliance and a clean work
environment
Environmental Concerns The objective of the City is to maintain a clean work
environment and to protect the land, water, and air to the highest degree possible without
making the area prohibitive for the type of activities associated with industrial areas.
1. Require compliance with all rules and regulations of the Environmental Protection
Agency and the Alaska Department of Environmental Conservation.
. Maintain policies and procedures for monitoring and ensuring vessel storage/repair
site clean-up.
. Maintain and distribute use guidelines to lessees,operators,and users of the area for
ship repair--including minor repairs,sand blasting,and painting.
8
Waste Management is integral to managing a successful industrial area where large
amounts of waste are generated. Separation of steel,wood, and general garbage is required
at the Kenai Peninsula Borough (KPB) solid waste facility. It is illegal to dump used ail in
solid waste containers.
1. Continue implementation and improvements of a programs to control the separation,
collection, recycling, and disposal of waste generated at the industrial center in
accordance with established environmental policies and regulations/requirements of
the KPB solid waste facility.
. Continue to'improve used oil collection procedures and disposal facilities to meet the
demands of user groups and to ensure a clean environment,
. Improve methods to monitor waste material disposal to control and reduce the costs
associated with the collection of solid and liquid waste materials.
. Maintain a Storm Water Pollution Prevention Plan(SWPPP).
APPEARANCE
GOAL A high standard of aesthetic appearance and cleanliness through landscaping,
litter control efforts,and development of public amenities that are in beeping
with the industrial maritime theme of the area
Landscaping and Beautification Industrial areas do not have to be barren and devoid
of natural aesthetics.An atmosphere that is pleasant and attractive to users and visitors alike
can be cultivated through thoughtful planning and landscaping efforts.
1. where possible,reduce scrap metal storage,trash,and other materials that may be
considered offensive to the casual observer.
2. Ensure that all businesses comply with City codes regarding the collection and
disposal of trash.
SIGNS, ZONING, BUILDING
GOAL A high level of public and private tompliance with Seward City Code
Sys Adequate public signing is important to provide directions,identify streets,paint out
public facilities,and post rules and regulations for visitors. Private signing identifies places
f business.
9
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1. Review public signing to ensure that it is adequate to the needs of the public and the
city.
. Ensure private signing meets Seward City Code.
. Maintain a sign along lash Road identifying and welcoming visitors to the Seward
Marine Industrial Center.
. Maintain a sign denoting lands for lease with contact information.
. Support north and southbound directional signage to SMIC at the corner of the
Seward Highway and Mash road.
Bonin code development requirements regulate open space for fire preventionfightin ,
air and light.
1. l ecognl a that current zoning codes could limit necessary and appropriate
development.
. Support variance requests for height and set-back requirements as approved by the
Planning and Zoning Commission.
Buil constructed to code are important to ensure safe working conditions and to add
to the community tax base. The City has adopted building, fire, mechanical, electrical, and
plumbing codes.
1. Ensure that all structures, permanent or temporary, are constructed to adopted
building and fire code standards.
PLAN IMPLEMENTATION
GOAL Adoption of the plan by resolution of the City Council and implementation by
all identified participants
For the City of Seward to realize the benefits of the SMIC Development Plan and thereby
ensure sound growth and development,actions must be taken not only by the City of Seward
but by many other players within the community and the Borough, State, and Federal
Governments.
Following are specific actions which are necessary to ensure the successful implementation
of this Plan:
10
Adopting _Plan shows commitment and establishes policy. Council should,by resolution,
adopt the Plan based upon recommendations of the Port and Commerce Advisory Board
and the Planning and Zoning Commission every 5 years, next plan adoption should be in
oll.
Use the Plan to guide the City of Seward in the appropriate duality growth and
development of the SMIC. Consistent with its original intent,the Plan will remain flexible.
While it is intended that all actions presented in this Plan will be implemented, it i
recognized that changing conditions in the future may necessitate modifications of planned
actions or the introduction of additional actions to satisfy local needs. The City recognies
the critical role of Plans as key program documents to guide the community's capital
budgeting process*
It is recommended that the SMIC Development Plan be reviewed annually and updated
within five years, or more often as needed. An annual review will help track
accomplishments,changes,and inadvertent omissions,
APPENDIX (The attachments must be updated and kept current.)
Exhibit A-Site Map: Fourth of July Creek'Valley
Exhibit D-Preliminary Subdivision Layout
Exhibit C-Project Overview: 1980 Project Description
Exhibit D-AADIS 2016 Site Plan
Exhibit E-Lease Sites
Exhibit F-Utility Layout
f. Power Utilities
. Seaver Utilities
3. Water utilities
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