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Home My WebLink AboutRES2026-045 DRP Application - OLV LLCSponsored by: Sorensen Amended and Approved: May 11, 2026 CITY OF SEWARD, ALASKA RESOLUTION 2026-045 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, APPROVING THE DEVELOPER REIMBURSEMENT PROGRAM APPLICATION SUBMITTED BY OLV LLC FOR ROAD AND ELECTRIC EXTENSIONS FOR PROPOSED LOTS 1-17 WITHIN THE POINT SUBDIVISION AND AUTHORIZING AN EXPENDITURE IN THE AMOUNT OF $423,537.25 AND APPROPRIATING FUNDS WHEREAS, on April 13, 2026, the City Council held a work session to review Developer Reimbursement Program applications and directed administration to return with resolutions funding each applicant at 50 percent; and WHEREAS, OLV LLC has submitted a Developer Reimbursement Program application for infrastructure improvements associated with the Point Subdivision; and WHEREAS, the subject property is located within the City of Seward and identified as Kenai Peninsula Borough Parcel 14517009, legally described as T 01S R OIW SEC 01 SEWARD MERIDIAN SW 2020010 THE POINT SUB TRACT B THAT PORTION THEROF LYING WITHIN THE SEWARD CITY LIMIT, and includes 17 proposed lots within the Point Subdivision; and WHEREAS, the total estimated cost of the project is approximately $423,537.25, and the City will pay for the installation of public improvements upfront, utilizing Reimbursement Method 1, with OLV LLC reimbursing 50 percent of those costs through the Developer Reimbursement Program; and WHEREAS, following completion of the project, actual costs will be finalized, and a subsequent resolution will be brought forward to Council to establish final reimbursement terms in accordance with the Developer Reimbursement Program. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA: Section 1. The Developer Reimbursement Program project will include the 17 proposed lots within the Point Subdivision located on Kenai Peninsula Borough Parcel 14517009, legally described as T 01S R 01W SEC 01 SEWARD MERIDIAN SW 2020010 THE POINT SUB TRACT B THAT PORTION THEROF LYING WITHIN THE SEWARD CITY LIMIT. Section 2. After full review by the City Council of all the facts and opinions presented, it is hereby determined that the proposed improvements are in the public's interest, are necessary, and will benefit the properties to be served. CITY OF SEWARD, ALASKA RESOLUTION 2026-045 Page 2 of 3 Section 3. The City Council hereby approves the Developer Reimbursement Program application submitted by OLV LLC and approves reimbursement of 50 percent of the costs related to the installation of public improvements and authorizes the City Manager to proceed with the design and construction of the project. Section 4. The developer may proceed with design and construction activities associated with the project prior to rezoning approval; however, reimbursement under the Developer Reimbursement Program shall not occur unless the subject property is rezoned to a residential zoning district permitting the proposed residential development. Section 5. Reimbursement authorized under this resolution is contingent upon the developer obtaining all necessary approvals for the use of onsite wells and septic systems, and providing documentation, signed and sealed by a licensed professional engineer, demonstrating that adequate onsite wells and septic systems are feasible and sustainable for each lot within the subdivision in accordance with applicable regulatory requirements, such that all required improvements necessary for issuance of building permits can reasonably be achieved. Section 6. The City Manager is hereby authorized and directed to keep account of all costs associated with the improvements, including acquisition of interests in land, design, engineering, administration, overhead, professional services, bond or loan costs, and all other costs resulting from the construction of the improvements. Section 7. Funding in the amount of $423,537.25 is hereby appropriated from the Developer and Incentive and Reimbursement Fund (80071-0000-8101-0193), and other applicable funds as determined necessary, for the purpose of completing the improvements associated with this project. Section 8. Following completion of the project, actual costs will be calculated, and a subsequent resolution will establish final reimbursement terms in accordance with the Developer Reimbursement Program. Section 9. This resolution shall take effect immediately upon adoption. APPROVED BY THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA THIS 11TH DAY OF MAY 2026. Stwice I 1 M re Sue McClure, Mayor CITY OF SEWARD, ALASKA RESOLUTION 2026-045 Page 3 of 3 AYES: Warner, Barnwell, Crites, Draper, Calhoon, McClure NOES: None ABSENT: Osenga ABSTAIN: None ATTEST: Kris Peck City Clerk City Council Agenda Statement Meeting Date: May 11, 2026 To: City Council Through: Kat Sorensen, City Manager From: Daniel Meuninck, Community Development Director Subject: Resolution 2026-045: Approving the Developer Reimbursement Program Application Submitted by OLV LLC for Road and Electric Extensions for Proposed Lots 1-17 within the Point Subdivision and Authorizing an Expenditure in the Amount of $423,537.25 and Appropriating Funds Background and justification: On April 13, City Council held a work session to review Developer Reimbursement Program (DRP) applications. At that time, Council directed administration to return with resolutions funding each applicant at 50 percent. Administration has determined that the proposed project is in the public interest, is necessary, and will benefit the properties to be served. City Code Section 5.20.035 states that "the costs of an improvement shall be the actual costs of the improvement, including acquisition of interests in land for the improvement, design, engineering, administration, overhead, professional services, guarantee fund, bond costs and interest incurred as a result of the improvement, and all other costs resulting from the construction of the improvement." This development will provide road, electrical, and associated infrastructure to proposed lots 1-17 within the Point Subdivision, located on Kenai Peninsula Borough Parcel 14517009, as described in the title of this resolution. The total estimated cost of the project is approximately $423,537.25. The City will pay for the installation of public improvements upfront, utilizing Reimbursement Method 1, and OLV LLC will reimburse the City for 50 percent of those costs in accordance with the Developer Reimbursement Program. Following completion of the project, actual costs will be finalized. A subsequent resolution will be brought forward to Council to establish final reimbursement terms in accordance with the Developer Reimbursement Program. All utility installations are subject to the Development's Subdivision Agreement and all applicable codes and permits. Comprehensive and Strategic Plan Consistency Information This legislation is consistent with (citation listed): Comprehensive Plan: 3.3.1: 3.3.1.1., 3.3.1.2., 3.3.1.3 Strategic Plan: Other: Total amount of funds listed in this legislation: This legislation (V): Creates revenue in the amount of: Creates expenditure in the amount of: Creates a savings in the amount of: X Has no fiscal impact Funds are (✓): Budgeted Line item(s): 80071-0000-8101-0193 X $ 423,537 $ 423,537 Not budgeted Not applicable Fund Balance Information Affected Fund (✓): General Boat Harbor Motor Pool X SMIC Parking Other Net Position as of 04/30/2026 Electric Water DRP FUND Yes Attorney Signature: X Not applicable Comments: Wastewater Healthcare Note: amounts are unaudited $ 3,417,807 _ Finance Director Signature: Attorney Review Administration Recommendation X Adopt Resolution Other: