HomeMy WebLinkAboutRes2001-115
I
I
I
Sponsored by: Janke
CITY OF SEWARD, ALASKA
RESOLUTION 2001-115
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD,
ALASKA, AUTHORIZING THE CITY MANAGER TO ENTER INTO
AMENDMENT NO.3 TO THE LEASE AGREEMENT AND AN AMEND-
MENT NO.1 TO THE MAINTENANCE AND OPERATING AGREEMENT
WITH SEWARD SHIP'S DRYDOCK, INe. TO EXPAND THE LEASED
AREA WITHIN BLOCKS 7 AND 8, FOURTH OF JULY CREEK SUBDIVI-
SION, SEWARD MARINE INDUSTRIAL CENTER, AND WITHIN A
PORTION OF SORREL ROAD IN TRACT A PROPOSED TO BE VACATED
AS AN ACCESS EASEMENT, SUBJECT TO CERTAIN CONDITIONS
WHEREAS, Seward Ship's Drydock, Inc. submitted a proposal on July 21,2000 to lease
additional land within the managed parcel of the Syncro-lift facility in the Seward Marine Industrial
Center; and
WHEREAS,in accordance with the City's Lease Policies and Procedures, the Planning and
Zoning Commission reviewed the proposal and adopted its Resolution 2000-04, recommending City
Council approval of Seward Ship's Drydock request and further recommended that the City Council
examine the original multi-user concept of the Syncro-lift facility, and consider leasing Seward Ship's
Drydock, Inc., additional lands within the managed parcel; and
WHEREAS, the US. Department of Commerce, Economic Development Administration
has approved the lease of two additional parcels ofland, contingent upon maintaining public access
to the Syncro-lift Facility; and
WHEREAS,Resolution 2001-090 authorized the City Manager to negotiate a potential lease
and agreement terms, excluding Sorrel Road; and
WHEREAS, Seward Ship's Drydock, Inc. currently leases a 5.811 acre parcel described as
Lot 1, Block 7, Fourth ofJuty Creek Subdivision, Seward Marine Industrial Center, and operates the
Syncro-lift facility for the City under a Maintenance and Operating Agreement with the City
("Operating Agreement"); and
WHEREAS, the requested additional lease property includes portions of the unsubdivided
remainder of Blocks 7 and 8, Fourth of July Creek Subdivision, Seward Marine Industrial Center
(generally described as a :1::2 acre parcel east of Sorrel Road which includes the northwest 180 foot
dry berth rail, and a :1::1.5 acre parcel south of Sorrel Road which Seward Ship's Drydock currently
uses for parking and storage) and a portion of Sorrel Road in Tract A to be vacated as an easement;
and
\\PAnC$\CURREN-1\CQUNCIL\RESOLU-1\01-115-1.WPD
CITY OF SEWARD, ALASKA
RESOLUTION 2001-115
WHEREAS, the Premises have been identified as available for lease in the Municipal Lands
Management Plan and the Seward Marine Industrial Center Development Plan; and
WHEREAS, pursuant to Seward City Code ~7.05.120, the City Council may dispose of
interests in real property by negotiation, public auction or sealed bid; and
WHEREAS, the additional lands to be leased are now covered by the Operating Agreement,
the parties recognize and agree that the Operating Agreement must necessarily be amended to be
consistent with the amended lease; and
WHEREAS, the parties intend the guaranty executed by James T. Pruitt cover the amended
lease; and
WHEREAS, except for the area currently under lease that is eligible for rent credits, the
premises will be leased for fair market rental value, as periodically adjusted pursuant to Seward City
Code ~7.05.160.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF SEWARD, ALASKA, that:
Section 1. The recitals are hereby incorporated by reference. The City Council finds that it
is in the public interest to enter into Amendment NO.3 to the Lease with Seward Ship's Drydock,
Inc. to expand the leased area to include the real property described above, for the purpose of
promoting economic development and expanding employment opportunities in the City through
expansion of the vessel repair and construction industry and other commercial activities in the Seward
Marine Industrial Center.
Section 2. The City Council finds that lease of the additional premises and construction and
operation thereon of a vessel repair and construction facility is in the public interest in that such
operations are compatible with the public's use of the public port facilities, provide employment for
the residents of the City of Seward, and promote the growth and stability of the economy of the City
of Seward.
Section 3. The City Council further finds that the requirements of Seward City Code
97.05.150 have been met and a new appraisal is not needed for the expanded lease area because
adjacent and similarly used land was recently appraised and the lease rental rate will be periodically
adjusted to fair market value pursuant to the lease terms and Seward City Code ~7.05.160.
Section 4. The City Manager is hereby authorized to enter into Amendment No.3 to the
Lease Agreement with Seward Ship's Drydock, Inc. with the rent for the additional land to be at fair
market rental value, in substantial form as attached hereto and incorporated by reference, to record
a lease memorandum to reflect such Amendment No.3, and to make such changes to the attached
\\PAnC$\CURREN-1\cOUNCILIRESOLU-1\o1-,,5-1.WPD
I
I
I
CITY OF SEWARD, ALASKA
RESOLUTION 2001-115
Amendment No.3 as necessary to finalize the lease amendment between the parties but without
changing the substantive terms.
Section 5. The Amendment No.3 to the Lease shall require Lessee to survey and replat the
Premises, as shown on Exhibit A to the attached form oflease amendment, within 270 days of the
effective date of the Lease Agreement No.3, to reflect the site dimensions and existing easements
and the like. The plat shall be subject to approval by the City through the City Manager.
Section 6. As required by Seward City Code ~16.0LOI5(B), the City Council hereby
consents to the subdivision of city-owned Blocks 7 and 8 and Tract A, Fourth of July Creek
Subdivision, Seward Marine Industrial Center and authorizes the City Manager to sign the final plat
on behalf of the City of Seward.
Section 7. The City Manager is hereby authorized to enter into Amendment No. 1 to the
Operating Agreement, in substantial form as attached hereto and incorporated by reference, and to
make such changes as necessary to finalize the amendment but without changing the substantive
terms. The authorization in this Section is conditioned upon execution and delivery of Lease
Amendment NO.3 described above.
Section 8. This resolution shall take effect thirty (30) days after its adoption and posting.
PASSED AND APPROVED by the City Council of the City of Seward, Alaska, this 24th
day of September, 2001.
THE CITY OF SEWARD, ALASKA
[e, , .0:, Lt.-I'Vt --'
Edgar Blatchford, Mayor
AYES: Blatchford, Branson, Calhoon, Clark, OIT, Shafer
NOES: None
ABSENT: Brossow
ABSTAIN: None
\\PATIC$\CURREN-1\COUNCIL\RESOLU-1\01-115-1.WPD
en:"" of SEW A.ltD, A.LA.S}(A.
IU:SOL\J'flON 2()()1~'\15
(City Seal)
,,"".....,
~'.'. r: SE I"
~..... 4. O.~......~""l ~,)>~
~ ~ ....'i-fOI:v::../'fo .....
:: (J ,~. . "'V~'::. -:.
...' "0,-:,
: : ...- " ...
- : :EAL.,..
. . . ...
..~ S :a::
:. ' ' -
...... __ i-
'~.......,. ft.~/.,.,. I
..."'N \,~ ... "t ~
~1ir""'\'-:' ~tfl
... Of"'v ~...<l'
..n.""'"
...---
.---~