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HomeMy WebLinkAboutRes2024-001 SMIC Development PlanSponsored by: Sieminski CITY OF SEWARD, ALASKA PORT AND COMMERCE ADVISORY BOARD RESOLUTION 2024-001 A RESOLUTION OF THE PORT AND COMMERCE ADVISORY BOARD 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 Port and Commerce Advisory Board to review and update the Seward Marine Industrial Center Development Plan; and WHEREAS, the plan was updated in 2008, 2011, 2018, and again in 2022; and WHEREAS, the sales of property in the Seward Marine Industrial Center has allowed the City to start expanding the infrastructure; and WHEREAS, the City will be able offer more land for lease or sale to independent businesses NOW, THEREFORE, BE IT RESOLVED by the Port and Commerce Advisory Board, that: Section 1. The Port and Commerce Advisory Board supports the adoption of the updated Seward Marine Industrial Center Development Plan. Section 2. The Seward Marine Industrial Center Development plan has been reviewed by the Port and Commerce Board and will be brought forward to the Seward City Council for approval. Section 3 This resolution shall take effect immediately upon adoption. PASSED AND APPROVED by the Port and Commerce Advisory Board this 3rd day of April, 2024. THE CITY OF ARD, ALASKA Bruce Jaffa, Chai PORT AND COMMERCE ADVISORY BOARD RESOLUTION 2024-001 Page 2 of 2 AYES: Schutter, Smith, Atwood, Jaffa NOES: None ABSENT: Miller ABSTAIN: None ATTEST: Kris Peck City Clerk (City Seal) "IM1 MO% Port and Commerce Agenda Statement Meeting Date: April 3, 2024 To: Port and Commerce Advisory Board From: Tony Sieminski, Harbormaster Subject: Resolution 2024-001 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. With improvements completed in the Seward Marine Industrial Center we have been able to expand services. This has led to sales of property and allowed the City to start expanding the infrastructure. The City will be able to offer more land for lease or sale to independent businesses, increasing City growth and revenue. 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: This legislation (✓): Creates revenue in the amount of: $ Creates expenditure in amount of: $ Creates a savings in the amount of: $ Has no fiscal impact $ 0 Funds are (✓): Budgeted Line item(s): Not budgeted Not applicable Affected Fund (✓): General Boat Harbor Motor Pool Available Fund Balance SMIC Parking Other Fund Balance Information Electric Water $ Wastewater Healthcare Note: amounts are unaudited Finance Director Signature: Attorne Review Yes Not applicable Attorney Signature: 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 i TABLE OF CONTENTS INTRODUCTION 1 THE PLAN 1 BASIC MARINE INFRASTRUCTURE 3 Basin 3 Docks 3 Shiplift Operations 4 Uplands 4 MANAGEMENT 4 LAND USE 5 Platting 5 Land Values 5 Land Uses 5 Parks and Recreation 6 MARKETING 6 TRANSPORTATION 6 Roads 7 Parking 7 Airport 7 PUBLIC FACILITIES AND SERVICES 7 Public Facilities 7 Public Safety 7 Public Utilities 8 ENVIRONMENT AND WASTE MANAGEMENT 8 Environmental Concerns 8 Waste Management 9 APPEARANCE 9 Landscaping and Beautification 9 ii SIGNS, ZONING, BUILDING 9 Signs 9 Zoning 10 Buildings 10 PLAN IMPLEMENTATION 10 Adopting a Plan 11 Use the Plan 11 APPENDIX 11 Exhibit A - Site Map: Fourth of July Creek Valley 12 Exhibit B - Preliminary Subdivision Layout 13 Exhibit C - Project Overview: 1980 Project Description 14 Exhibit D - ARCADIS 2016 Site Plan 15 Exhibit E - Lease Sites 16 Exhibit F - Utility Layout 1. Power Utilities 17 2. Sewer Utilities 18 3. Water Utilities 19 iii SEWARD MARINE INDUSTRIAL CENTER DEVELOPMENT PLAN INTRODUCTION During 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 by the Danish firm Burmeister -Wain 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 1980 Century-Quadra 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 C & 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 City's share of the port bonds and State oil revenues in an access road, the relocation of Fourth of July Creek, a retaining dike, basin, breakwater, and shiplift. With a State 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 barges and vessels, new break room, and machine shop buildings. Development activity continues to occur in the area known as the Seward Marine Industrial Center (SMIC). 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 1 the prison property (Tract A and Tract B, Johnson —Swift Subdivision, USS No. 1651, Parcel ID 14533004 [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 Land Use Plan which is 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 2011. The most recent update was completed in 2018. An effective plan is one which is implemented. The City of Seward has a track record of accomplishing actions outlined in its plans. Recommendations from previous plans that have been accomplished within the SMIC area include: • Syncrolift with upland rail system • 315 ton Travelift • Bulk fuel facility • 430' North Dock • Fisheries dock and plant improvements • New DEC approved outfall • Electrical substation • Primary electrical service • 34 individual power stalls, water, and sewer systems • Secondary sewer treatment plant • Preliminary real estate subdivision plat • Some fill and cargo laydown area • Some utility improvements including area lighting • Campground improvements • Some real estate development (leases and sales) • New 400 and 800 Amp service located at the North Dock • Rubble mound breakwater • Wash down pad • 10-ton crane • 315' floating dock (Fisherman's Float) • 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 1980 Century-Quadra concept was enclosed, protected and dredged to -21 feet mean lower low water (MLLW) to accommodate medium -draft vessels for ship repair, cargo off loading, and general moorage. The basin has been dredged to design with -25 foot berths adjacent to the Shiplift Dock and the North 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 1980 Century-Quadra 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 cargo dock have been constructed and are in operation. There is a growing demand for additional General -Purpose Moorage 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 Ramp repairs have been completed. 2. Maintain the Fisheries Dock per lease agreement. The 315 ton Travelift Dock has been widened to accommodate the newly widened Travelift. The Shiplift Dock is maintained per a Maintenance and Operating (M&O) agreement with the Syncrolift lessee. 3. 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 Travelift and the 5000 long ton Syncrolift platform. The Syncrolift was an integral part of the original SMIC concept 3 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 City's 50 ton Travelift. A 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. 2. 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. 3. Provide additional restrooms 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. During winter, ditches and culverts freeze causing runoff to pool in the lower areas behind roads. 1. Provide engineer -designed drainage. 2. Fill and grade the storage area to the correct elevation for the continued improvement of drainage. 3. 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 City'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 2. 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. 3. 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 GOAL Sound, maximized, and coordinated development of private and public uplands and facilities in support of the needs of the users and visitors Platting 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 Values In order to provide adequate public services and maintenance at SMIC, it is important that the City receive a fair market value —the current rate is S% 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. 2. 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 ("CPI"), 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 15.10.225 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 Nash Road to the mouth of Spring Creek and provide a camping area, and include signage of the access route. 2. Maintain separation between the campground and industrial uses. A chain link fence will be installed to separate the North Dock from the Campground. MARKETING GOAL 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. 1. Maintain a sign along Nash Road and central to the SMIC area showing what lands are available for lease (Appendix Exhibit E). 2. Maintain a fair market value base line from which leases will be negotiated. 3. Continue to encourage multiple users. 4. Evaluate utility rates to encourage more usage while ensuring a fair return to the public utility system. 5. 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. To 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 Parking 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 docks. 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 AND 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 City's Capital Project Plan. 2. Improve paving, fill, fencing, and storm water drainage collection and treatment infrastructure as development occurs. Public Safety 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 2. Complete water system to loop all lines or upsize all cross -feeder lines and provide additional fire hydrants as needed. 3. 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. 5. 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 F1-F3). 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. 2. Include in City capital planning the extension of electrical, sewer, and water throughout the industrial area. 3. Support updating Seward City Code to facilitate utility extension development. 4. 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. 2. Maintain policies and procedures for monitoring and ensuring vessel storage/ repair site clean-up. 3. 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 oil in solid waste containers. 1. Continue implementation and improvements of a program 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. 2. Continue to improve used oil collection procedures and disposal facilities to meet the demands of user groups and to ensure a clean environment. 3. Improve methods to monitor waste material disposal to control and reduce the costs associated with the collection of solid and liquid waste materials. 4. 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 keeping 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 compliance with Seward City Code Signs Adequate public signing is important to provide directions, identify streets, point out public facilities, and post rules and regulations for visitors. Private signing identifies places of business. 1. Review public signing to ensure that it is adequate to the needs of the public and the City. 2. Ensure private signing meets Seward City Code. 3. Maintain a sign along Nash Road identifying and welcoming visitors to the Seward Marine Industrial Center. 4. Maintain a sign denoting lands for lease with contact information. 5. Support north and southbound directional signage to SMIC at the corner of the Seward Highway and Nash road. Zoning code development requirements regulate open space for fire prevention/fighting, air and light. 1. Recognize that current zoning codes could limit necessary and appropriate development. 2. Support variance requests for height and set -back requirements as approved by the Planning and Zoning Commission. Buildings 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 a 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 2028. Use the Plan to guide the City of Seward in the appropriate quality 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 is 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 recognizes 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 B - Preliminary Subdivision Layout Exhibit C - Project Overview: 1980 Project Description Exhibit D - ARCADIS 2016 Site Plan Exhibit E - Lease Sites Exhibit F - Utility Layout 1. Power Utilities 2. Sewer Utilities 3. Water Utilities 11 Exhibit A - Site Map: Fourth of July Creek Valley Seward MaliMaline Industrial center City, ofe'er, Alas STTt CORRECTIONAL FACILITY pirMitudi biro ire Y etoviteytirtrascri. moin acresitr ax. Exhibit B - Preliminary Subdivision Layout PRIVATE LAND BLOCK 10 BASIN 750 ZJ Seward Marine Industrial Center City of Seward, Alaska BLOCK 1 JEWSONAW 6 BLOCK 3 2 3 ZMUSTANG AVE 00 4 MORRIS AVE H4 3 70. C? Feet BLOCK 2 N o; 1 N W h 2 00� i xit; D gy ws re— r CO a 00 State SORREL NO Land The gotta or nsmapwere r proud tam tre best aralatle isources The Gty o! Sera essune norespanib6lylaar+rorMaens etaccura:asct or errors mat meat g*mg 1ts +401K .21.1744574 13 Exhibit C - Project Overview: 1980 Project Description 14 Exhibit D - ARCADIS 2016 Site Plan 15 Exhibit E - Lease Sites ni �x jY ]!A 16 PARCEL LEASE STATUS Exhibit Fi - Power Utilities Aaadnb o i i i 1 Z z ■ • 4 • i , 1 i I 1 ! / i i 1 ! rI g I i ° • • is MU4d1312 17 Exhibit F2 - Sewer Utilities Aabdno 1 4 Z ). WO_ Huj Ce uU 0 0 1SHJH4 3tl ISYDIO (II!II to eree • 0 • e► °YOURS ion Bay I 18 Exhibit F3 - Water Utilities Aaavno WM 0 • 1 u NIKOao raw +i• 1710 1, i.vec n Bay 1,-49 1 1. co • 19