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HomeMy WebLinkAboutRes1998-094 I I I TABLED: July 27, 1998 Sponsored by: Janke CITY OF SEWARD, ALASKA RESOLUTION NO. 98-094 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, AUTHORIZING THE CITY MANAGER TO ENTER INTO A PROFESSIONAL SERVICE CONTRACT WITH STEVE MACSW AIN, DBA MACSW AIN ASSOCIATES, TO HAVE AN APPRAISAL OF FAIR MARKET VALUE PERFORMED ON NINE (9) SMALL BOAT HARBOR UPLAND PROPERTIES OWNED BY THE CITY OF SEWARD WHEREAS, the City of Seward currently owns numerous properties and the current administration strongly believes that the City shouldn't be a land bank; and WHEREAS, it is better for the City to allow the private sector the maximum benefit and use of the land in the City; and WHEREAS, though there is some lands that the City would choose to retain because oftheir importance, location, and character, such as the waterfront in the Small Boat Harbor, others should be put into the private sector; and WHEREAS, sale of the properties will provide a short-term benefit to the City in the form of revenues derived from the sale transaction, as well as long-term benefits to the community when properties are developed and managed to their maximum potential; and WHEREAS, the administration began to work in this direction during the FY99 budget process; and WHEREAS, the short term benefit is much needed revenues to balance the Harbor budget, but the long-term benefit is increased property values when the property owners have the ability to buy the land they currently retain under a long-term lese with the City; and WHEREAS, though the long-term lease generates property taxes on the building, the fact that the lessee does not own fee simple interest in the land decreases the value ofthe property; and WHEREAS, attached is the property descriptions and map of the properties the administration is recommending for disposal which are all in the harbor area, though none ofthem are on the waterfront; and WHEREAS, the first step is to have the Council authorize the City Manager to enter into a professional service contract with Steve MacSwain, dba MacSwain Associates, so that the properties can be appraised to determine their current fair market value; and CITY OF SEWARD, ALASKA RESOLUTION NO. 98-094 WHEREAS, this information will allow the administration to nm a cost-benefit analysis to determine if the sale benefits the City financially, and if so, the City Manager would proceed to negotiate sales, allowing the current lessees the first opportunity under SCC ~7.05.120 which states "The City Council may acquire or dispose of an interest in real property by negotiation, public auction, or sealed bid;" and WHEREAS, Mr. MacSwain is an MIA certified appraiser and capable of providing a full and complete appraisal and will perform the appraisal work for a cost not-to-exceed $10,000.00, including travel expenses; NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, that: Section 1. The Council approves Resolution 98-094, authorizing the City Manager to enter into a professional service contract with Steve MacSwain, dba MacSwain Associates, to have an appraisal of fair market value performed on nine (9) Small Boat Harbor upland properties owned by the City, such contract not-to-exceed $10,000.00 including travel expenses. Section 2. This resolution shall take effect immediately upon its adoption. PASSED AND APPROVED by the City Council of the city of Seward, Alaska, this 27th day ofJuly, 1998. THE CITY OF SEWARD, ALASKA Lowell R. Satin, Mayor AYES: NOES: ABSENT: ABSTAIN: ATTEST: Patrick Reilly, City Clerk (City Seal)