HomeMy WebLinkAboutRes2002-047
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CITY OF SEWARD, ALASKA
RESOLUTION 2002-047
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD,
ALASKA, AUTHORIZING THE SALE OF LOT 2, BLOCK 1, FOURTH OF
JULY CREEK SUBDIVISION, SEWARD MARINE INDUSTRIAL CENTER
AND A NON-EXCLUSIVE PIPELINE EASEMENT TO SHORESIDE
PETROLEUM, INC. FORA TOTAL PURCHASE PRICE OF $36,700
WHEREAS, Shoreside Petroleum, Inc. submitted a request to purchase Lot 2, Block 1,
Fourth of July Creek Subdivision, Seward Marine Industrial Center from the City of Seward; and
WHEREAS, the requested parcel is located east of Nash Road at 3306 Jellison Avenue and
is zoned Industrial; and
WHEREAS, Shoreside Petroleum, Inc. has leased the property since 1988 and has developed
the site with a bulk fuel plant; and
WHEREAS, Shoreside Petroleum, Inc. has also requested an easement to cover the existing
underground fuel pipeline that runs from their lease parcel to the North Dock; and
WHEREAS, on January 28, 2002 the City Council approved Resolution 2002-011
identifying the requested property for disposal by sale through sole source negotiations with
Shoreside Petroleum, Inc., and authorizing the City Manager to negotiate a purchase and sale
agreement for the requested property subject to further consideration and final approval by the City
Council at a later date; and
WHEREAS, Resolution 2002-011 further authorized the City Manager to negotiate and
prepare the requested pipeline easement to be brought back to the City Council for further
consideration and final approval; and
WHEREAS, pursuant to Resolution 2002-011, the City Manager has negotiated the sale of
the requested property and the associated pipeline easement with Shoreside Petroleum, Inc. for a
total sale price of $36,700.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF SEWARD, ALASKA, that:
Section 1. The Purchase and Sale Agreement, attached and incorporated herein by reference,
between the City of Seward and Shoreside Petroleum, Inc., is hereby approved in substantial form
and the City Manager is authorized to finalize, complete and execute all documents as are necessary
to complete the sale in substantial form as described in this resolution, including, but not limited to,
CITY OF SEWARD, ALASKA
RESOLUTION 2002-047
the purchase and sale agreement, easements, subdivision plat, closing instructions, and quitclaim
deed.
Section 2. In accordance with Seward City Code S7.05.135, and for the reasons set forth in
this resolution and Resolution 2002-011, the City Council finds that the essential terms and
conditions of this land disposal, $36,700 cash, and the method of disposition, by negotiation as
authorized by Seward City Code g7.05.120, are in the public interest.
Section 3. In 2000, the City completed an appraisal of Lot 2, Block 1, Fourth of July Creek
Subdivision, SMIC, for the purpose of determining the fair market rental value of the City's lease
with Shoreside Petroleum, Inc. The City finds that it is in the public interest to complete the sale
described in this resolution without completing another appraisal of the property. The City hereby
accepts the fair market valuation of$22,000, as determined by MacSwain Associates 2000 appraisal
of the property, plus ten percent, for the purpose of satisfying the appraisal requirement and to
identify the fair market land value of Lot 2, Block 1, Fourth of July Creek Subdivision, SMIC at
$24,200.
Section 4. The Council further finds that the public interest would not be served by
completing an appraisal ofthe non-exclusive pipeline easement. The fuel pipeline was constructed
after Lot 2, Block 1 was leased to Shoreside Petroleum, Inc. in 1988. The lease agreement stipulated
that the City would grant non-exclusive easements across and to the Seward Marine Industrial Center
North Dock for the transfer of bulk fuel and petroleum products to and from the leased land and the
North Dock, and that the parties would enter into and record appropriate easement documents. The
Council recognizes the difficulties in appraising the value of such an easement, particularly when
factors include prior use by the lessee, existing construction of a fuel pipeline, the important
relationship between the easement and the use of Lot 2, Block 1, Fourth of July Creek Subdivision,
SMIC, and the non-exclusive nature ofthe easement. For these reasons the City Council finds that
the public interest would not be served by completing an appraisal of the easement, and hereby
accepts $12,500 as the fair market valuation of the non-exclusive pipeline easement.
Section 5. This resolution shall take effect 30 days after passage and posting as required by
Seward City Code g7.05.145.
PASSED AND APPROVED by the City Council ofthe City of Seward, Alaska, this 13th
day of May, 2002.
THE CITY OF SEWARD, ALASKA
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Edgar Blatchford, Mayor
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CITY OF SEWARD, ALASKA
RESOLUTION 2002-047
AYES:
NOES:
ABSENT:
ABSTAIN:
Blatchford, Branson, Brossow, Calhoon, Clark, Orr, Shafer
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