HomeMy WebLinkAboutRES2025-074 Pacific Seafood LeaseSponsored by: Sorensen
Public Hearing: August 11, 2024
CITY OF SEWARD, ALASKA
RESOLUTION 2025-074
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD,
ALASKA, APPROVING A MASTER AGREEMENT TO TERMINATE THE
LEASES AND EASEMENT NEAR 301 LOWELL POINT ROAD AND
DESCRIBE CONCEPTS FOR A NEW LEASE NEAR 3201 SORREL ROAD
BETWEEN THE CITY OF SEWARD AND PACIFIC SEAFOOD
WHEREAS, Pacific Seafood — Seward, LLC (doing business as Pacific Seafood and
formerly known as Pacific Resurrection Bay Seafoods, Inc.) has been leasing lots from the City
off Lowell Road; and
WHEREAS, a predecessor of Pacific Seafood and the City have also executed an easement
to construct seafood processing improvements, and it includes a reversionary provision for the
City if Pacific Seafood does not use the parcel for certain uses for a period of eighteen consecutive
months; and
WHEREAS, Pacific Seafood has entered into negotiations with Polar Seafoods, the prior
lessee of leased land in the Seward Marine Industrial Center, to acquire the rights to the seafood
facilities and property that the City leased to Polar Seafoods in 2021 (Doc. No. 2021-000314-0);
and
WHEREAS, the City and Pacific Seafood have negotiated the termination of Pacific
Seafood's current leases and the termination of Pacific Seafood's interest in the easement as
distinct portions of the same negotiation and transaction; and
WHEREAS, the City and Pacific Seafood are also negotiating a new lease for Pacific
Seafood to continue operating from the Polar Seafood facility in the Seward Marine Industrial
Center, which will be presented to the City Council when staff is ready; and
WHEREAS, because this entire negotiation has so many inter -related moving parts, the
parties identified that a master agreement would be helpful to outline expectations and set up the
framework for the negotiations; and
WHEREAS, adoption of this master agreement would terminate the leases and easement
at the end of Lowell Point Road, except it would allow Pacific Seafood to continue using the Ice
House facility through next fishing season, and adoption of this master agreement would also
outline concepts for a new lease of Polar Seafoods facility at the Seward Marine Industrial Center
to Pacific Seafood; and
WHEREAS, the City Council finds that terminating the leases and easement off Lowell
Point Road so that land can be used for the upcoming flood control project is in the public interest;
and
CITY OF SEWARD, ALASKA
RESOLUTION 2025-074
Page 2 of 2
WHEREAS, the City Council finds that the concepts identified in this master agreement
for inclusion in a new lease to Pacific Seafood at the Seward Marine Industrial Center are in the
public interest, which will require a separate resolution to adopt the essential terms and conditions
for a new lease.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF SEWARD, ALASKA, that:
Section 1. The City Council hereby authorizes the City Manager to execute the attached
Master Agreement between the City of Seward and Pacific Seafood.
Section 2. The Seward City Council approves the essential terms and conditions of the
lease and easement terminations in Exhibit A to the Master Agreement.
Section 3. The Seward City Council also approves of the new lease concepts for Pacific
Seafood to lease the seafood processing facility in the Seward Marine Industrial Center, knowing
that a future resolution is required to specifically approve the essential terms and conditions for a
new lease.
Section 4. The Seward City Council authorizes City administration to take all acts
necessary to record the transactions contemplated in this resolution.
Section 5. This resolution shall take effect immediately upon adoption.
PASSED AND APPROVED by the City Council of the City of Seward, Alaska this 11th
day of August 2025.
AYES:
NOES:
ABSENT:
ABSTAIN:
Kris Peck
City Clerk
(City Seal)
THE CITY OF SEWARD, ALASKA
Sue McClure, Mayor
Osenga, Warner, Finch, Barnwell, Wells, McClure
None
Crites
None
City Council Agenda Statement
Meeting Date: August 11, 2025
To: City Council
Through: Kat Sorensen, City Manager
From: Doug Schoessler, Public Works Director
Subject: Resolution 2025-074: Approving a Master Agreement to Terminate the
Leases and Easement Near 301 Lowell Point Road and Describe Concepts
for a New Lease Near 3201 Sorrel Road Between the City of Seward and
Pacific Seafood
Background and justification:
The City of Seward has a long-standing relationship with the seafood processing industry. This is
the first of two resolutions to facilitate the relocation of Pacific Seafood from the end of Lowell
Point Road to the Seward Marine Industrial Center (SMIC). Pacific Seafood is acquiring all of
Polar Seafoods interests in the SMIC and the move would make it easier and cheaper for the
upcoming flood control project near the Lowell Point Road facility.
This Master Agreement establishes the framework for the various transactions and specifically
allows the termination of the Lowell Point Road leases and easements. The Master Agreement
also establishes some concepts that staff intend to insert into the essential terms and conditions for
a new lease with Pacific Seafood at the SMIC.
Notably, the Lowell Point Road leases and easement would terminate by March 30, 2026, except
Pacific Seafood would have until October 31, 2026, to remove the Ice House. The Ice House was
recently renovated, and the infrastructure can be relocated to the SMIC site. This resolution has
no fiscal impact, but the next resolution for the new SMIC leased lots will.
City staff and Pacific Seafood are in final negotiations for the new lease at the SMIC, to enable
Pacific Seafood to move its seafood processing to the SMIC with a new lease. In essence, Pacific
Seafood would lease the same three lots that Polar Seafood leased from the City. Negotiations on
the rental rate are still being finalized, which will likely absorb the various benefits and detriments
Pacific Seafood and the City are incurring with all the transactions. Pacific Seafood will need to
apply for a new seafood processing conditional use permit and will likely apply for a conditional
use permit to allow temporary employee housing at the SMIC. Those two permit issues are
identified in the Master Agreement but neither the Master Agreement nor the anticipated SMIC
lease can dictate the outcome of the Planning & Zoning Commission's decisions. Staff intend to
present a resolution for the new SMIC lease with Pacific Seafood at the following City Council
meeting.
The Harbormaster and the City Attorney have both been involved with the negotiations and
recommend the City Council adopt this resolution.
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:
This legislation (✓):
Creates revenue in the amount of:
Creates expenditure in amount of:
Creates a savings in the amount of:
Has no fiscal impact
X
Funds are (✓):
Budgeted Line item(s):
Not budgeted
Not applicable
X
$ 0
$
Affected Fund (✓):
General
Boat Harbor
Motor Pool
Available Fund Balance
X
Yes
SMIC
Parking
Other
Fund Balance Information
Electric
Water
Wastewater
Healthcare
Note: amounts are unaudited
Finance Director Signature:
Attorney Signature: /s/ Rob Palmer
Not applicable Comments:
Administration Recommendation
X
Adopt Resolution
Other:
Document Title: Agreement to Terminate Lease and Easement
Grantor: Pacific Seafood — Seward, LLC
Grantee: City of Seward
Abby. Legal Descriptions: USS 1806; L15-17 Blk 2 Plat S-30; ATS 174 all in Seward Rec. Dst.
Ref: #2006-000341-0, #1980-000939-0, #1995-001721-0
After Recording Return To:
City of Seward
Attention: City Manager
PO Box 167
Seward, Alaska 99664
AGREEMENT TO TERMINATE LEASE AND TERMINATE EASEMENT
This Agreement to Terminate Lease and Terminate Easement ("Agreement") is entered into
and effective as of August _, 2025, by and between the City of Seward, Alaska, a home rule
municipal corporation, organized under the laws of the State of Alaska whose address is P.O. Box
167, Seward, Alaska 99664 (the "City") and Pacific Seafood — Seward, LLC, d/b/a Pacific Seafood,
f/k/a Pacific Resurrection Bay Seafoods, Inc., and Alaska limited liability company whose mailing
address is 16797 S.E. 130th, Clackamas, OR 97015 (the "Lessee").
WHEREAS, Lessee has been leasing two lots from the City off of Lowell Road
described as U.S. SURVEY 1806, according to the official survey thereof, records of the Seward
Recording District, Third Judicial District, State of Alaska,and Seward City Council Resolution
2022-046); and
WHEREAS, Lessee and the City have also executed an Easement (Book 21, Page
182, #1980-000939-0, Seward Recording District) and a Corrective Easement Amendment
(Book 79, Page 580 and 631, #1995-001721-0, Seward Recording District) concerning ATS 174,
adjacent to USS 1806, located within Section 15 and 16, T1S R1W, Seward Meridian, which
provide certain interests and mutual rights between the parties, including a reversionary
interest for the City if Lessee does not use the parcel for certain uses for a period of eighteen
consecutive months; and
WHEREAS, the Lessee is not in default and the Parties now desire to terminate the Lease;
and
WHEREAS, the Parties wish to expedite the reversionary interest of the Easement to return
the property to the City's control by Lessee relinquishing its interest; and
2025 Agreement to Terminate Lease and Easement Page 1
WHEREAS, such termination and exercise of reversionary interest are deemed to be in the
public interest and agreeable to the City;
NOW THEREFORE, IN CONSIDERATION of the foregoing recitals and mutual
promises and covenants herein, the parties hereby agree as follows:
1. The Leases described in the above recitals encompassing:
Portion of ATS 174 (Parcel A & B), Seward Recording District, Third Judicial
District, State of Alaska, consisting of approximately, Parcel A, 19,756 sq. ft. and Parcel
B, 33,572 sq. ft., more or less (the "Leased Land") (Tax Parcel ID 14823009
and 14823010, respectively) is hereby terminated effective March 30, 2026 (the
"Termination Effective Date") by all parties to this Agreement. Provided lease terms are
completed and inspected by lessor; (i.e. articles 10, 12, 14, 17...)
2. Such termination does not invalidate any of the Lease provisions which expressly survive
termination of the Lease, for example, the certain provisions of Article 19.
3. The rights to and any interest in the Easement, including any interest in the eighteen month
reversionary interest period, situated in protracted Sections 15 and 16, Township 1 S, Range
1 West, Seward Baseline and Meridian and lying within Alaska Tidelands Survey (ATS) 174
being more particularly described by metes and bounds as follows:
Starting at Meander Corner 4 of USS 1806, thence northerly along the ATS 174 meander
line coincident with the easterly meander boundary of USS 1806 N 05 deg 11'43" W a
distance of 120.00 feet to the Point of Beginning, thence N89 deg 59'37"E a distance of
118.00 feet, thence NOOdeg00'23"w a distance of 339.53 feet, thence S89deg59'37"W a
distance of 137.04 feet to intersect with the meander line of ATS 174, thence southernly
S01 deg03' 17"W along the ATS 174 meander line a distance of 107.89 feed to Meander
Corner 1 of USS 1806, thence southerly S05degl l'43"E along the ATS 174 meander line
coincident with the easterly meander boundary of USS 1806 a distance of 232.61 feet to the
Point of Beginning and containing an area of 44,663 SF more or less (the "Easement Parcel")
are hereby waived, relinquished, and forfeited by Lessee and control of the Easement Parcel
is returned to the City who may immediately exercise any reversionary interest it may have,
effective on the Termination Effective Date; provided, that Lessee may continue to use and
occupy, dissemble and relocate that certain "ice house" improvement on the Easement Parcel
and all equipment and fixtures contained therein up to and until October 31, 2026.
4. For consideration of such waiver, relinquishment, and forfeiture of Lessee's Easement
interest, the City will handle recording of all necessary documents and any associated fees.
2025 Agreement to Terminate Lease and Easement Page 2
5. This Agreement may be signed in multiple counterparts with the same effect as if all Parties
signed the same document. Delivery of a legible photocopy or scanned copy of the entire
signed original of this Agreement will be treated the same as delivery of the original.
Each party has full power and authority to enter into this Agreement and no further action or
approval is required to cause this Agreement to be binding and enforceable against either party in
accordance with its terms.
THE CITY OF SEWARD
By:
Kathleen Sorensen,
City Manager
ATTEST:
Kris Peck
City Clerk
STATE OF ALASKA
)
) ss
THIRD JUDICIAL DISTRICT )
THIS IS TO CERTIFY that on this day of , 2025, before me the
undersigned, a Notary Public in and for the State of Alaska, duly commissioned an sworn as such,
personally appeared Kathleen Sorensen, individually, known to me and to me known to be the
individual named above and who executed the foregoing instrument, and acknowledge to me that he
signed the same freely and voluntarily for the uses and purposes therein set forth.
Notary Public in and for Alaska
My Commission Expires:
2025 Agreement to Terminate Lease and Easement Page 3
PACIFIC SEAFOOD — SEWARD, LLC
By:
Ashton Meier
VP of Processing
STATE OF ALASKA
THIRD JUDICIAL DISTRICT
)
) ss
)
THIS IS TO CERTIFY that on this day of , 2025, before me the
undersigned, a Notary Public in and for the State of Alaska, duly commissioned an sworn as such,
personally appeared Ashton Meier, individually, known to me and to me known to be the individual
named above and who executed the foregoing instrument, and acknowledge to me that he signed the
same freely and voluntarily for the uses and purposes therein set forth.
Notary Public in and for Alaska
My Commission Expires:
2025 Agreement to Terminate Lease and Easement Page 4