HomeMy WebLinkAboutRes1998-071
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Sponsored by: Janke
CITY OF SEWARD, ALASKA
RESOLUTION NO. 98-071
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD,
ALASKA AUTHORIZING THE AMENDMENT OF ITS LEASE OF THE
SEWARD HISTORIC RAILROAD DEPOT BUILDING AND APPROVING
CHUGACH ALASKA CORPORATION'S EXERCISE OF ITS OPTION TO
PURCHASE
WHEREAS, the City entered into a lease with Chugach Alaska Corporation ("CAC") of the
Seward Historic Railroad Depot Building (the "Depot") pursuant to Resolution 97-161 effective
November 13, 1997; and
WHEREAS, Article 4 of the lease allowed CAC to exercise an option to purchase the site
according to the terms of the lease; and
WHEREAS, CAC's option to purchase was contingent upon CAC completing certain
renovations and improvements; and
WHEREAS, it is the intent of CAC and the City that the Depot remain on the National
Register of Historic Places or the land shall revert back to the City and that certain covenants and
restrictions shall run with the land; and
WHEREAS, CAC obtained an appraisal ofthe Depot to determine the fair market value and
the City pursuant to Resolution No. 97-161 accepted that appraised value as reasonable; and
WHEREAS, CAC has substantially completed its renovations and improvements and was
open to the public by May 1, 1998; and
WHEREAS, the City and CAC desire to decrease the land area covered by the lease and
option to purchase by a distance of approximately 25 feet where such area is to be retained in the
City's ownership as a portion of Hoben Park and the sales price of the remaining Depot property is
intended to be adjusted accordingly.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF SEWARD, ALASKA, that:
Section 1. The Lease Agreement With Option to Purchase between CAC and the City
entered into effective November 13, 1997, pursuant to Resolution No. 97-161 shall be amended as
follows:
CITY OF SEWARD, ALASKA
RESOLUTION NO. 98-071
(a) Article 4 is to be amended to permit CAC to exercise its
option to purchase sooner than September 30, 1998, provided that all
of the preconditions of Section 4.l(a) are met and lessee is not in
default under the terms and conditions of the lease.
(b) The declaration of covenants and restrictions regarding use of
the land shall be contained in a separate recordable document to be
recorded in the real property records for the Seward Recording
District, Third Judicial District, State of Alaska, prior to recordation
of any deed transferring the property from the City to CAC.
(c) The legal description of the property shall be amended to
decrease the property size from approximately 16,583 square feet to
an approximate amount of plus or minus 15,084 square feet. Actual
numbers are to be confirmed in a re-survey and re-plat to be con-
ducted by the City.
(d) Article 4, Section 4.1 is to be amended to adjust the purchase
price to approximately $257,012 to reflect the decrease in the size of
the parcel to be conveyed (based on $12.00 per square foot, land
only).
( e) Article 8, Section 8.1 is to be amended to change the require-
ment for an eight-foot wide sidewalk to a six-foot wide sidewalk.
Section 2. The effectiveness of the lease amendments and closing of the sale are contingent
upon completion ofthe following:
(a) Completion of all of the improvements and renovations
required by the lease.
(b) Completion of a re-plat to be conducted by the City to reflect
a reduction of approximately 1500 square feet in the lot size and
including payment by CAC of all taxes that may be required by the
Kenai Peninsula Borough.
(c) Payment in full by CAC ofthe purchase price and the City's
legal fees and costs to the City.
(d) Approval by the City and recordation of a declaration of
restrictive covenants to run with the land and a quitclaim deed
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CITY OF SEWARD, ALASKA
RESOLUTION NO. 98-071
including a reverter clause giving the City the right to reenter the
Property and be seised of its former estate in the event the Property
does not remain on the National Register of Historic Places.
(e) Designation of a public access easement on the multi-purpose
trail that runs east-west along the south side of the Depot property.
(f) The City's receipt of the as-built survey prepared by or at the
direction of CAC in accordance with Article 8, Section 8.1.
Section 3. The City finds that it is in the public interest to complete the transaction described
in this resolution without completing a City appraisal because CAC has already obtained a recent
appraisal determining the fair market value of the property and land and because ofthe City imposed
restrictions on the use of the property, further appraisals are unnecessary. Pursuant to Resolution
No. 97-161 the City accepted CAC's appraisal of the fair-market value for the purchase option, and
pursuant to the lease that price would remain unchanged regardless of when the option would be
exercised. To the extent the price as adjusted by this resolution is less than the fair market value of
the property, the City finds it in the public interest to sell the property at the reduced price because
the City will retain a portion of the original leased site as an addition to Hoben Park. For the
preceding reasons it would not be in the public interest to prepare an appraisal of the property or
incur the costs for such an appraisal.
Section 4. The City finds that it is in the public interest to amend the lease in the manner
described in this Resolution and to approve the sale to CAC for the reasons stated in Resolution No.
97-161 and this Resolution. CAC has made substantial improvements to the Depot as agreed and
the ownership of the Depot by CAC will promote tourism in the community and provide interpretive
opportunities oflocal transportation history and Native culture. In addition, the sale of the property
will relieve the City of management responsibilities and administrative costs related to the property
while preserving the historical significance of the building. The sale will also place the property in
private ownership generating tax revenues and promoting local economic development.
Section 5. The Real Estate Purchase and Sale Agreement and Amendment to Lease (the
"Agreement") between CAC and the City, a copy of which is attached as Exhibit A hereto and
incorporated by reference, is hereby approved in substantial form, and the City Manager is
authorized and directed to sign the Agreement in substantial form as attached hereto on behalf of the
City of Seward. The City Manager may, after consultation with the City Attorney, authorize such
changes in the Agreement which do not materially change the terms of the transaction but which
may be necessary to finalize the lease amendments and complete the closing related to the sale. The
City Manager is also authorized to agree to and sign such other documents on behalf of the City as
are necessary to complete the lease amendments and sale including, but not limited to, a revised
CITY OF SEWARD, ALASKA
RESOLUTION NO. 98-071
lease memorandum, lease amendments, a release oflease, restrictive covenants, the quitclaim deed,
and all documents necessary to complete a properly exercised option to purchase.
Section 6. This resolution shall take effect 30 days after passage and posting as required by
Seward City Code.
PASSED AND APPROVED by the City Council of the City of Seward, Alaska, this 13th
day of July, 1998.
THE CITY OF SEWARD, ALASKA
-;kJlil/C ,~
Lowell R. Satin, Mayor
AYES:
NOES:
ABSENT:
ABSTAIN:
Callahan, Clark, Gage, King, Orr, Satin
None
None
Blatchford
ATTEST:
~/t:/ /~;0
Patrick Reilly /
City Clerk
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REAL ESTATE PURCHASE AND SALE AGREEMENT AND AMENDMENT TO
LEASE
Buyer, Chugach Alaska Corporation (CAC or Buyer), an Alaska Native
Regional Corporation formed pursuant to the Alaska Native Claims Settlement Act
and organized under the laws of the State of Alaska, agrees to buy and Seller, the
City of Seward (City or Seller), organized as a first class municipality under the laws
of the State of Alaska, agrees to sell on the following terms the real property together
with all structures and appurtenances commonly known as the Seward Depot (the
"Property"), legally described as follows:
Lot one (1), Waterfront Tracts, according to the official plat
thereof filed under Plat No. 95-13, in the records of the
Seward Recording District, Third Judicial District, State of
Alaska.
1. Status (.If Lease. Chugach Alaska Corporation executed a lease in
November 1997, styled as "Lease Agreement Between City of Seward, Alaska and
Chugach Alaska Corporation," (the "Lease"). The Lease is currently in good
standing.
a) Option to Purchase. Paragraph 4 of the Lease grants to Chugach
Alaska Corporation the option, subject to certain conditions to purchase the
Property on specified terms and conditions at any time after September 30,
1998, but before September 30, 2002. The City agrees to entertain Chugach
Alaska Corporation's Notice of Intent to exercise its option prior to September
30, 1998 provided that all other conditions of Article 4 of the Lease are met.
b) Amendment of Lease. The parties intend by this Real Estate
Purchase and Sale Agreement and Amendment to Lease ("Agreement") to
amend Chugach Alaska Corporation's rights under the Lease to allow Chugach
Alaska Corporation to exercise its option on the terms and conditions set out
herein. In so much as necessary to effect this Agreement, the Lease is
amended to accommodate the purposes of this Agreement. In the event the
purchase and sale contemplated by this Agreement is not closed, the Lease
shall continue in full force and effect as if no amendment had occurred.
Notwithstanding the preceding sentence, in the event the sale does not close,
Article 8, Section 8.1, of the lease shall remain amended to change the
requirement for an eight-foot wide sidewalk to a six-foot side sidewalk. In the
event the purchase and sale contemplated by this Agreement is closed, the
Lease shall terminate, however, the provisions of paragraph 24.1 (d) shall
survive termination.
2. Purchase Price. Buyers shall pay a purchase price of approximately
two hundred fifty-seven thousand twelve dollars and no/100s ($257,012.00). The
purchase price reflects the estimated lot size reduction of approximately 1500 square
feet now part of Hoben park. Final adjustment to the original purchase price of two
hundred seventy five thousand and no/100s ($275,000.00) (based on $12.00 per
square foot, land only) will be made once the re-plat is completed.
3.
closing.
Terms of Payment. Buyer shall pay the purchase price in cash at
4.
following:
Contingencies. The obligations of Buyer are contingent upon the
a) Approval of Title Defects and Encumbrances. The status of
Seller's title shall be shown in a preliminary commitment for an owner's
standard AL T A form policy of title insurance issued by an insurance company
of Buyer's choice which shall be obtained by Buyer at Buyer's expense. The
preliminary commitment shall have attached thereto photocopies of all
documents shown as defects or encumbrances to the title of Seller for the real
property. Buyer must within ten (10) business days after obtaining the
preliminary commitment approve or object in writing to Seller the title, defects,
and encumbrances. If Buyer does not give written approval, or if Seller does
not agree in writing prior to closing to remove those defects and encumbrances
to which Buyer objects in writing, at Buyer's option, this Agreement shall
become null and void. Defects and encumbrances shall include, without
limitation, liens, easements, covenants, and restrictions of any nature except
those required in the Lease.
b) Hazardous Substance. Buyer may conduct, at Buyer's expense,
an inspection and review of the Property to discover whether hazardous
substances, as defined under state or federal law, are present on or in the
Property. In the event Buyer discovers hazardous substances on or in the
Property, at Buyer's option, Buyer may terminate this Agreement.
5.
following:
Contingencies. The obligations of Seller are contingent upon the
a) Substantiation of Restoration Costs. Buyer shall provide, to
Seller's reasonable satisfaction, verification that Buyer has restored the
improvements on the Property, and that Buyer has incurred restoration costs
exceeding five hundred thousand dollars ($500,000.00). In the event this
contingency is not met or waived by Seller prior to closing, this Agreement
shall be void and terminate.
b) Operational by May 1, 1998. No later than May 1,1998, Buyer's
operations for a Native Cultural Center shall be operational and open to the
public, or this Agreement shall be void and terminate.
c) Completion of Capital Improvements. Prior to closing, Buyer
shall complete the capital improvements, renovation and construction required
under the Lease.
d) Default of Lease. Seller shall have no obligation to close the
purchase and sale contemplated by this Agreement if Chugach Alaska
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Corporation has defaulted any term of the Lease referenced above prior to the
closing.
e) Re-Plat. Completion of a re-plat to be conducted by the Seller to
reflect a reduction of approximately 1500 square feet now part of Hoben Park
and payment by Buyer of all taxes that may be required by the Kenai
Peninsula Borough.
f) Referendum. Under the charter and code of Seller, this
Agreement may be subject to a referendum and may be voided. Nothing in
this Agreement shall affect or reduce the rights of the voters of the City of
Seward to reject this Agreement by Referendum. Buyer agrees that it shall
have no rights under this Agreement unless and until the Resolution is
approved by the voters of the City of Seward(in the event a referendum
petition is timely filed and accepted), and except as provided under the Lease,
Buyer shall not be entitled to any damages or other relief against the City in
the event the Resolution is not approved.
6. Conveyance by Quitclaim Deed. Fee title to the subject Property shall
be conveyed at closing to the Buyer by quitclaim deed subject to easements,
covenants and restrictions of record and those defects and encumbrances approved
by Buyer pursuant to contingency section above. The quitclaim deed shall be in the
form attached and hereby incorporated by reference as Exhibit A. In addition to the
defects and encumbrances approved by the Buyer, the Buyer agrees to the recording
of a declaration of restrictive covenants run with the land. The Declaration of
Restrictive Covenants shall be in the form attached and hereby incorporated as
Exhibit B. The quitclaim deed shall permit Seller the right to reenter the Property and
be seised of its former estate in the event Buyer fails to keep the Property registered
on the National Register of Historic Places and this broken condition remains
unremedied for a period of 180 days.
7. Possession. Buyer has possession of the, Property pursuant to the
Lease. Buyer shall be entitled to full possession upon the closing of the transaction
described herein. Closing shall mean disbursement of all funds to Seller by the
closing agent and recordation of all relevant deeds and documentation.
8. Included Items. All of the personal property located on the premises or
fixed to the improvements are included in this sale.
9. Escrow Closing Agent. This transaction shall be closed by
TransAlaska Summit Title Insurance Agency, Inc., Seward, Alaska.
10. Closing or Termination Date. This transaction shall be closed on or
before sixty (60) days from the effective date of the Resolution authorizing the
execution of this Agreement. In the event this transaction fails to close on such date,
ALL01EB8.WP5/43371028
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this Agreement shall terminate unless extended in writing by mutual Agreement of the
parties.
11. Time. Time is of the essence for this Agreement.
12. Closing Costs and Prorations.
a) Real property taxes. Real property taxes on the Property and
general and special assessments, if any, for the current fiscal year shall be
paid by Bwer.
b) Closing costs. All closing costs not otherwise allocated to one
party or the other shall be paid one-half by the Seller and one-half by Buyer.
c) Failure to close. In the event escrow does not close on the
scheduled closing date or another mutually agreed date, the closing costs
incurred through the escrow to such closing date shall be paid by the party at
fault. In the event escrow shall fail to close on the scheduled closing date or
another mutually agreed date due to the fault of both parties or neither party,
the costs of terminating the escrow shall be divided equally between the '
parties.
d) Realtor commissions. The parties represent that no realtor
commissions are to be paid in connection with the closing of the purchase and
sale contemplated by this Agreement.
13. Notices. All notices pursuant to this Agreement shall be sent by
certified mail, return receipt requested, to the following addresses unless either party
notifies the other in writing of a change of address:
Buyer:
Chugach Alaska Corporation
560 East 34th Avenue, Suite 200
Anchorage, Alaska 99503
Seller:
City Manager
City of Seward
P.O. Box 167
Seward, Alaska 99664
14. Default. In the event Seller defaults in Seller's obligation under this
Agreement, at Buyer's option Buyer may specifically enforce this Agreement, recover
damages from Seller, rescind this Agreement, or any combination thereof. In the
event Buyer defaults in Buyer's obligation under this Agreement at Seller's option,
Seller may specifically enforce this Agreement, recover damages from Buyer, rescind
this Agreement, or any combination thereof.
15. Assignment. Neither Buyer's or Seller's rights under this Agreement
may be assigned without the prior written consent of the other party, which may be
withheld for any reason. In any event, this Agreement shall be binding upon and
AlL01 EBB.WP5I4337.1 028
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inure to the benefit of the parties hereto and their respective successors, assigns,
heirs, and legal representative.
16. Entire Agreement. This Agreement and the Lease constitute the entire
Agreement of the parties and shall not be modified, interpreted, amended, waived, or
revoked orally, except by a written instrument signed by all parties. This Agreement
and the Lease supersede and replace all prior Agreements, discussions, and
representations on the subject matter discussed herein, all of which are merged into
this Agreement. None of the parties are entering into this Agreement in reliance on
any oral or written promises, inducements, representations, understandings,
interpretations, or Agreements, other than those contained in this Agreement and the
Lease.
17. Invalid Provision. If any provision of this Agreement is judicially
determined to be invalid, void, or otherwise without legal effect, the remainder of the
Agreement shall continue to be in full force and effect to the maximum extent
possible. In the event of a conflict between this Agreement and the Lease, the Lease
provisions shall be controlling.
18. Governing Law and Venue. The laws of the State of Alaska shall
govern the interpretation and enforcement of this Agreement. Venue for any such
action shall be Superior Court, Third Judicial District, Alaska.
19. Attorney Fees. The prevailing party in any suit or action to interpret or
enforce this Agreement shall be entitled to reasonable attorney fees and costs,
whether at arbitration, trial, or on appeal.
20. Counterparts. This Agreement may be signed in counterparts with the
same effect as if all signatures were on the same document.
ALL01 EBBWP5I4337.1028
Page 5
SELLER:
BUYER:
CHUGACH ALASKA
CORPORATION
~
BY'
. MICHA E. BROWN
President
CITY OF SEWARD
d~!rr~
City Manager
BY:
ATTEST:
~~~
PATRICK REILLY
City Clerk
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ACKNOWLEDGMENT
STATE OF ALASKA
THIRD JUDICIAL DISTRICT
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THIS IS TO CERTIFY that on this 76:--- day of '
1998, before me, the undersigned, a Notary Public in and for e
personally appeared W. Scott Janke, known to me and to me kno n to be the City
Manager for the City of Seward, Alaska, and authorized to execute documents on its
behalf, and is the individual named in and who executed the foregoing document on
behalf of the City of Seward for the uses and purposes therein set forth.
GIVEN UNDER MY HAND and offici
written.
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ACKNOWLEDGMENT
STATE OF ALASKA )
THIRD JUDICIAL DISTRICT ) ss.
THIS IS TO CERTIFY that on this / ~ day of /lv:OdJ:'5+-
1998, before me, the undersigned, a Notary Public in and for the ~ Alaska,
personally appeared Michael E. Brown, known to me and to me known to be the
President of Chugach Alaska Corporation, and authorized to execute documents on
its behalf, and is the individual. named in and who executed the foregoing document
on behalf of Chugach Alaska Corporation for the uses and purposes therein set forth.
GIVEN UNDER MY HAND and official seal the day and year last above
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ACKNOWLEDGEMENT
STATEOFA~S~ )
) ss.
THIRD JUDICIAL DISTRICT )
THIS IS TO CERTIFY that on this L q4 day of ~ u:rf ,
1998, before me, the undersigned, a Notary Public in and fo the State of Alaska,
personally appeared Michael E. Brown, known to me and to me known to be the
President of Chugach Alaska Corporation, and authorized to execute documents on its
behalf, and is the individual named in and who executed the foregoing document on
behalf of Chugach Alaska Corporation for the uses and purposes therein set forth.
GIVEN UNDER MY HAND and official seal the day and year last above written.
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Exhibit B
After recording, please send to:
Chugach Alaska Corporation
560 East 34th Avenue, Suite 200
Anchorage, Alaska 99503
DECLARATION OF RESTRICTIVE COVENANTS
This declaration of restrictive covenants and requirements (the "Covenants"), is
made and dated as of July _' 1998, by the City of Seward (the "Grantor"), whose
address is P.O. Box 167, Seward, Alaska.
WHEREAS, the Grantor is the owner of the below described real estate and the
Seward Historic Railroad Depot Building located thereon (collectively, the "Property")
located in the State of Alaska:
Lot one (1), Waterfront Tracts, according to the official plat thereof filed under Plat
No. 95-13, in the records of the Seward Recording District, Third Judicial District,
State of Alaska.
WHEREAS, the Grantor entered into a long term lease with Chugach Alaska
Corporation ("CAC"), whose address is 560 East 34th Avenue, Suite 200, Anchorage,
Alaska, 99503, of the Property pursuant to Resolution 97-161, effective November 13,
1997; and
WHEREAS, it is the intent of the Grantor, as the current owner of the Property,
to declare and impose on the Property the restrictive covenants and requirements
described herein to run with the land and be applicable to CAG, its successors and
assigns, and any and all subsequent owners and successors in title to the Property; and
WHEREAS, the lease allowed CAC to exercise an option to purchase the Property
according to terms of the lease, and it is the intent of the Grantor to convey the Property
to CAC following recording of the Covenants; and
WHEREAS, it is the intent of the Grantor and CAC that the Property remain on
the National Register of Historic Places and be subject to the restrictive covenants and
requirements set forth herein upon conveyance of the Property to CAC.
NOW, THEREFORE, there are hereby created, declared, established, and
imposed against the Property, the following restrictive covenants and requirements,
which restrictive covenants and requirements shall run with the land and remain in full
force and effect for the period set out in paragraph NO.2 below. Each of the restrictive
covenants and requirements are for the benefit of the Grantor, its successors and
assigns, and shall be binding upon CAC, its successors and assigns, and any and all
subsequent owners and successors in title to the Property (the "Grantee) and are not
merely personal covenants of the Grantee.
1. Restrictive Covenants and Reauirements.
A. The Property shall remain registered on the National Register of Historic
Places as administered in accordance with federal regulations established by the U.S.
Department of the Interior, and the Grantee shall comply with all National Register of
Historic Places criteria, guidelines, and regulations, now in effect or hereafter amended,
applicable to registered historic properties, including but not limited to, the Secretary of
the Interior's Standards for Rehabilitation and Guidelines for Rehabilitating Historic
Buildings.
B. The Property shall be maintained and operated in such a manner to permit
pedestrian access between the Property and adjacent Hoben Park.
C. No more than forty percent (40%) of the first level interior floor area of the
Seward Historic Railroad Depot Building (excluding restrooms and covered open spaces)
may be used for food or beverage service. Floor area shall be measured by square feet
and shall be considered used for food or beverage service if used in any manner to
support food or beverage service including, but not limited to, kitchen facilities, seating
and waiting areas, counters, cashier stations, server stations, busing stations,
dishwashing areas, freezer and refrigeration areas, and related storage.
D. The Property or any portion thereof shall not be used for residential
purposes or overnight accommodations. Prohibited overnight accommodations shall .
include a "Hostel", "Hotel", "Lodging", and "Motel" as defined in Seward City Code
915.10.140 on the date the Covenants are recorded. These definitions are set forth
below:
Hostel. A building, or portion thereof, in which temporary or overnight lodging is
provided for hikers, cyclists or other travelers not generally traveling by car.
Hotel. A facility offering transient lodging accommodations to the general public
on a daily rate where access to all sleeping rooms is through a main entrance and
which may provide food, entertainment, meeting rooms, recreational facilities or
various personal services. Includes lodges and inns.
LodainQ. The renting out of a dwelling, or portion thereof, to provide overnight
sleeping accommodations for a period of less than 30 consecutive days. The use
includes the providing of meals to overnight guests only. This use includes bed
and breakfast, but does not include motel, hotel or hostel.
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Motel. A building or group of detached or connected buildings offering sleeping
accommodations to the general public on a daily rate and designed primarily for
the motoring public with parking conveniently located on the premises. Includes
designations such as motor lodges, auto courts or tourist courts.
E. The Property or any portion thereof shall not be used as an "Amusement
and recreation facility" as defined in Seward City Code ~ 15.10.140 on the date the
Covenants are recorded. This definition is set forth below.
Amusement and recreation facilitv. Establishment engaged primarily in
providing entertainment for a fee including such activities as bowling alleys,
billiards and pool, dance hall, pinball machines, video games or other similar
player-operated amusement devices.
The definition of "Amusement and recreation facility" shall not be construed to include
performances or exhibitions involving singing, cultural dances, theatrical performances,
recitations of poetry, or films.
F. For purposes of illustration but not limitation, permitted uses ofthe Property
include retail space, museum, community theater, public use building, meeting rooms,
conference center, visitor center, art gallery, cultural resource and heritage center, and
other uses consistent with the historical character of the building as a railroad depot, and
maintaining and preserving the historical integrity and significance of the building,
compatible with the use and restoration of the adjacent historic Hoben Park.
2. Term. The Covenants, including all restrictive covenants and requirements
contained herein, are to run with the land and shall be binding on the Grantee for a
period of 25 years from the date the Covenants are recorded, after which time the
Covenants shall be automatically extended for successive periods of ten (10) years.
An instrument signed by the Grantor will act to change the Covenants in whole
or in part. However, in the event the Grantor does not consent to a change requested
by the Grantee, the Grantee may submit a request to the City of Seward Planning and
Zoning Commission for approval of a change to the restrictive covenants and
requirements contained within the Covenants. Any decision by the Planning and Zoning
Commission shall be appealable by the Grantor and the Grantee under the then existing
City of Seward ordinances and procedures applicable to appeals of Planning and Zoning
Commission decisions. The appeal procedures may include, for example, appeal to the
Board of Adjustment and/or State Court. Upon the issuance of a final, non-appealable
decision the Grantor and Grantee shall comply with any such decision or order. In the
event such final, non-appealable decision requires the Grantor to change the covenants,
the Grantor shall execute and record the necessary documents to change or release the
particular restrictive covenant or requirement that is the subject of any such decision or
order.
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Page 3
3. Enforcement and Penaltv. Enforcement of the Covenants by the Grantor may be
by proceedings at law or in equity against the Grantee, the party in possession of the
Property, or any other person or persons violating or attempting to violate the restrictive
covenants or requirements. The Grantor may seek an appropriate order to either
restrain the violation and/or to recover damages. Failure by the Grantor to enforce the
Covenants or any restrictive covenant or requirement contained herein shall in no event
be deemed a waiver of right to do so thereafter.
4. Notice of Breach. In the event the Grantee, owner of record or party in
possession of the Property fails to observe any restrictive covenant or requirement, the
Grantor shall give the owner of record written notice specifying such breach. The
Grantee shall, within thirty (30) days of receipt thereof, give written notice to the Grantor
that the breach has been cured, or if it cannot be reasonably cured within thirty (30)
days, shall give written notice to the Grantor of its intent to cure the breach and shall
complete such cure as soon as reasonably possible but in no event later than one
hundred eighty (180) days from the date when notice was first given.
5. Notice of the Covenants. For the term of the Covenants, each and every
contract, deed or other instrument hereafter executed conveying the Property or any
portion thereof shall expressly provide that such conveyance is subject to the Covenants;
provided, however, the Covenants shall survive and be effective regardless of whether
such contract, deed or other instrument hereafter executed conveying the Property or
any portion thereof provides that such conveyance is subject to the Covenants.
6. Severabilitv. Invalidation of anyone of the restrictive covenants or requirements
by a judgment or court order shall in no way affect any of the other provisions of the
Covenants which shall remain in full force and effect.
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Page 4
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:~TY OF SEW:. ! /l
W. SCOTT J~
City Manager
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ATTEST:
ACKNOWLEDGMENT
STATEOFA~SAA )
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THIRD JUDICIAL DISTRICT )
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THIS IS TO CERTIFY that on this 25 day of ,
1998, before me, the undersigned, a Notary Public in, nd ~ the State of Alaska,
personally appeared W. Scott Janke, known to me and to me known to be the City
Manager for the City of Seward, Alaska, and authorized to execute documents on its
behalf, and is the individual named in and who executed the foregoing document on
behalf of the City of Seward for the uses and purposes therein set forth.
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GIVEN UNDER MY HAND and offici
ALLOl E9E. WP5
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