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HomeMy WebLinkAboutRes1992-077 . . . Sponsored by: Schaef~eyer / I I CITY OF SEWARD, ALASKA RESOLUTION NO. 92-077 I I I I I A RESOLUTION OF THE CITY COUNCIL OF THE q,ty OF SEWARD, ALASKA, APPROVING AN AGREEMENT/WITH SEWARD SHIP DRYDOCK, INC., FOR THE LEASE OF APPROXIMATELY 20 ACRES OF REAL PROPERTY WCATED WITHIN THE SEWARD MARINE INDUSTRIAL CENTER INCLUDING THE SYNCROLIFT PLATFORM, THE ADJACENT DOCK AND ASSOCIATED RAILS AND TRANSFER SYSTEM WHEREAS, since 1980, the City of Seward has provided for development of the Seward Marine Industrial Center (SMIC) and the City has expended over $40 million in construction of improvements to the area; and WHEREAS, the City has sought developmenfand diversification of the Seward economy by the construction of the above faciliti~ and other projects at the Seward Marine Industrial Center including financing al}'a construction of the Spring Creek Correctional Center which has over 200 full-timlt/people employed, the construction by Chugach Alaska of a sawmill operation with a'value in excess of $10 million on land leased from the City of Seward, construction ~ a dock by Inlet Salmon in exchange for lease of uplands in the harbor, and~ thrchase and operation of other facilities including a 250 ton travelift, barge unloadi g facility, and the North Dock, all of which represent investment by the City or priv e parties; and WHEREAS, the City has consis.*ntly encouraged the development of a marine repair and construction facility at SMJC; and / WHEREAS, by lease agreeme~t dated August, 1988, the City leased approximately two acres of land to James Pruitt/d/b/a Seward Ship's Chandlery for the construction and operation of a marine repair fa~ity; and I WHEREAS, the City a9'~ Seward Ship's Chandlery are in the process of arbitrating whether the tenant has def~lted in the terms of the original lease, and the amount of rent due; and ./ / WHEREAS, pensftng resolution of the arbitration, the City Council agreed not to implement Amendme.r't No.2 to the Seward Marine Industrial Center Shiplift System Tariff No. 1 which.. would have generated additional revenues to offset continued maintenance and operation deficits; and =t.~0-~ s \ \ ~ \ 'i~ . . . WHEREAS, by Request for Proposal dated December, 1990, the City sought interest in the construction of additional repair facilities adjacent to the existing leased land to Seward Ship's Chandlery, in order to promote a multiple user concept for SMIC; and WHEREAS, Todd Shipyards, Inc., withdrew its proposal for a multiple-user lease for land adjacent to that leased by Seward Ship's Chandlery before negotiations could commence; and WHEREAS, Seward Ship's Chandlery has indicated its desire to lease additional land, including the entire shiplift platform system, the shiplift dock, rail and transfer facilities; and WHEREAS, the City and Seward Ship Drydock, Inc., have negotiated a lease agreement in the form attached hereto as Exhibit A; and WHEREAS, the City Council finds that it would not be in the public interest to appraise the value of the property being leased; and WHEREAS, the City Council finds that a negotiated lease without public bidding is in the public interest; and WHEREAS, a portion of the leased land includes public facilities that are within the definition of the Seward City Charter Section l.5(k), and WHEREAS, pursuant to Section 13.4 of the Seward City Charter, a disposal by lease or sale or otherwise of property used or useful in the operation of a utility must be approved by three-fifths of the electors voting on a proposition to approve the same; NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, that: Section 1. The city manager or his designee is authorized to execute the lease agreement attached as Exhibit A to this resolution. Section 2. This resolution shall take effect thirty days after posting of the same by the city clerk. Section 3. The lease agreement shall not be effective until it has been approved by three-fifths of the electors voting on a proposition to approve the same. PASSED AND APPROVED by the City Council of the city of Seward, Alaska, this 18th day of May, 1992. THE CITY OF SEWARD, ALASKA . . . CITY OF SEWARD, ALASKA RESOLUTION NO. 92-077 AYES: NOES: ABSENT: ABSTAIN: ATTEST: Donald W. Cripps, Mayor Bencardino, Cripps & Swartz Crane, Dunham, Krasnansky & White None None APPROVED AS TO FORM: Perkins Coie, Attorneys for the city of Seward, Alaska Linda S. Murphy, CMC/AAE City Clerk (City Seal) Fred B. Arvidson City Attorney