HomeMy WebLinkAboutRes1992-118
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Sponsored by: Schaefermeyer
CITY OF SEWARD, ALASKA
RESOLUTION NO. 92-118
A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF SEWARD, ALASKA, APPROVING AN AGREEMENT OF SALE
WITH JAMES T. PRUI'IT FOR THE PURCHASE OF
APPROXIMATELY 20 ACRES OF REAL PROPERTY LOCATED
WITHIN THE SEWARD MARINE INDUSTRIAL CENTER INCLUDING
THE SYNCROLIFf PLATFORM, THE ADJACENT DOCK AND
ASSOCIATED RAILS AND TRANSFER SYSTEM AND CALLING
A SPECIAL ELECTION TO SEEK VOTER APPROVAL OF THE
DISPOSAL OF THE SHIPLIFf FACILITY
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 development and diversification of the Seward
economy by the construction of the above facilities and other projects at the Seward
Marine Industrial Center including financing and construction of the Spring Creek
Correctional Center which has over 200 full-time 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 of a dock by Inlet Salmon in exchange for
lease of uplands in the harbor, and the purchase and operation of other facilities
including a 250 ton travelift, barge unloading facility, and the North Dock, all of which
represent investment by the City or private parties; and
WHEREAS, the City has consistently encouraged the development of a marine
repair and construction facility at SMIC; and
WHEREAS, by lease agreement 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 facility; and
WHEREAS, the City and Seward Ship's Chandlery are in the process of arbitrating
whether the tenant has defaulted in the terms of the original lease, and the amount of
rent due; and
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
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CITY OF SEWARD, ALASKA
RESOLUTION NO. 92-118
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, James T. Pruitt, dba Seward Ship's Chandlery, has indicated its desire
to purchase additional land, including the entire shiplift platform system, the shiplift
dock, rail and transfer facilities; and
WHEREAS, the City and James T. Pruitt have negotiated a sales 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 sold; and
WHEREAS, the City Council finds that a negotiated sale without public bidding
is in the public interest; and
WHEREAS, a portion of the land to be sold includes public facilities that are
within the definition of the Seward City Charter Section 1.5(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; and
WHEREAS, in order to all Pruitt to move forward with the purchase of the
property during the current construction season, the City Council finds it in the public
interest to call a special election for the purpose of seeking voter approval of the sale of
the shiplift dock and the Syncrolift shiplift platform;
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 sales
agreement attached as Exhibit A to this resolution.
Section 2. An election shall be held on Tuesday, August 18, 1992, in and for the
city of Seward for the purpose of submitting to the qualified voters of the city the
question of approval of a sales agreement with James T. Pruitt, dba Seward Ship's
Chandlery, for the purchase of approximately 20 acres of real property located within the
Seward Marine Industrial Center including the Syncrolift Platform, the adjacent dock and
associated rails and transfer system. An affirmative vote of three-fifths of the qualified
electors voting at the special election shall be required for approval of the sales
agreement.
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CITY OF SEWARD, ALASKA
RESOLUTION NO. 92-118
Section 3. The proposition shall be substantially in the following fonn:
PROPOSITION NO.
SALES AGREEMENT WITH lAMES T. PRUITT. DBA SEWARD SHIP'S
CHANDLERY
Do you approve the sale of approximately 20 acres of real property located within
the Seward Marine lndustrial Center, including the syncrolift platfonn, the
adjacent dock and associated rails and transfer system, as approved by City Council
Resolution No. 92-118, to James T. Pruitt, dba Seward Ship's Chandlery?
Section 4. The foregoing proposition shall be printed on a ballot which may set
forth other propositions. The proposition set forth in Section 3 above shall be printed in
full, and the following words shall be added as appropriate and next to a space provided
for marking the ballots:
PROPOSITION NO.
YES
NO
Section 5. A person may vote at this election who (a) is qualified to vote in state
election sunder AS 15.05.010, (b) has been a resident of the City for at least 30 days
immediately preceding the election, (c) is registered to vote in state elections at a
residence address within the city at least 30 days before the election, and (d) is not
disqualified under Article V of the Alaska Constitution. The election shall be conducted
in compliance with the procedures established in Title 4 of the Seward City Code.
Section 6. Publication of this resolution shall be made by posting a copy hereof
on the City Hall bulletin board and one other public place for a period of at least 30 days
prior to the date of the election, and notice shall be published in a newspaper of general
circulation within the city at least 20 days prior to the election. In addition, copies of the
resolution shall be made available at the City Clerk's Office for at least thirty days
preceding the date of the election.
Section 7. The sales agreement shall not be effective until it has been
approved by three-fifths of the electors voting on a proposition to approve the same.
Section 8. This resolution shall become effective immediately upon its adoption.
PASSED AND APPROVED by the City Council of the city of Seward, Alaska, this
13th day of July, 1992.
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CITY OF SEWARD, ALASKA
RESOLlITION NO. 92-118
AYES:
NOES:
ABSENT:
ABSTAIN:
A TIEST:
THE CITY OF SEWARD, ALASKA
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Donald W. Cripps, Mayor
Bencardino, Crane, Cripps, Dunham & Swartz
None
Krasnansky & White
None
APPROVED AS TO FORM:
Perkins Coie, Attorneys for the city of
Seward, Alaska
tni;~~y,~c;:c&~ P.~~
City Clerk
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Fred B. Arvidson
City Attorney
(City Seal)
SEWARD SHIP'S CHANDLERY
PURCHASE OFFER TO CITY OF SEWARD
ESSENTIAL TERMS AND CONDITIONS
June 29, ~992
Resolution 92-~~8
Attachment A
.LLER:
BUYER:
City of Seward
James T. pruitt or his assigns
LAND:
22.647 Acres, described on Exhibit A (Land description from
Paul Diener) .
PRICE:
$577,085.44
CLOSING/CONTINGENCIES:
1. Excepting only tidelands, City to supply warranty of title. City
agrees to make best efforts to obtain the tidelands within 18
months.
2. Parties to split closing costs, survey, platting and title insur-
ance.
3.
Environmental baseline study to be conducted at City's expense with
firm of City's choice. If any Hazardous Materials as defined
inmost recent version of lease) are found in existing leased land,
City, at its option, can refuse to close. Similarly, if any are
found on city-operated portion of the land, Buyer can refuse to
close.
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4.
Sale and closing subject to voter approval of sale in accordance
with Seward City Charter provisions.
5. Buyer to supply City with acceptable EDA waiver/release of existing
grant conditions by whatever means required (including Buyer paying
existing balance of grant if necessary) .
SUPPLEMENT:
Full settlement of all existing claims under existing
lease, including those subject to current arbitration.
Buyer shall continue syncrolift tariff payments of
$25,000 per month until closing. Parties to sign mutual
releases.
OTHER:
The city shall quitclaim and assign all of its interest
in the tidelands to Buyer. Buyer's obligation is
conditional upon obtaining a loan from Key Bank Alaska on
terms acceptable to Buyer and in the amount of the
purchase price plus any funds due from Buyer pursuant to
Item 5, above.
tlgned
Date
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