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HomeMy WebLinkAboutRes1989-040 . . . Sponsored by: Royle CITY OF SEWARD, ALASKA RESOLUTION NO. 89-040 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA APPROVING A LEASE AGREEMENT WITH CHUGACH ALASKA CORPORATION, INC. CHUGACH LEASE .3 WHEREAS, the City of Seward has sought to promote development of city-owned real property in the vicinity of the Seward Marine Industrial Center; and WHEREAS, the Chugach Alaska Corporation, Inc., ("Chugach") a corporation organized and existing under the laws of the State of Alaska and 43 U.S.C.A. S 1601 et seg. (1971), has leased approximately thirty (30) acres of land from the city of Seward ("Chugach Lease #1") effective January 11, 1988; and WHEREAS, the City has leased an additional four (4) acres, more or less, of property adjacent to Chugach Lease #1 effective July, 1988, ("Chugach Lease .2); and WHEREAS, Chugach has indicated its desire to lease an additional approximate eight (8) acres of land immediately to the north of Chugach Lease #1, ("Chugach Lease .3"); and WHEREAS, the proposed lease would be in the public interest in that it will promote the development of the leased land and, in addition to the continued development and expansion of operations from the Chugach Lease #1; and WHEREAS, Chugach has agreed to pay fair market value for the leased land; and WHEREAS, the City and Chugach have been negotiating a co- generation agreement to reflect the development of Chugach's electrical generation capabilities at the forest products plant under construction on the land leased under Chugach Lease #1; and WHEREAS, the City would not approve Chugach Lease .3 without such an agreement being concluded; and WHEREAS, an appraisal of the property would not be in the public interest and an unnecessary expense to the City of Seward. NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, that: Section 1. A lease agreement between the city of Seward and Chugach Alaska Corporation in substantially the form as that attached to this resolution as Exhibit A is approved and the city -1- . . . CITY OF SEWARD, ALASKA RESOLUTION NO. 89-040 manager is authorized to execute it subject to having first successfully concluded negotiations for a co-generation agreement between the City and Chugach and having further obtained approval of that agreement by the City Council by June 27, 1989. Section 2. It is in the public interest to not require the disposal of the land subject to the lease agreement by public bid or auction and a negotiated lease provides the city of Seward with the best terms and conditions of lease and further will provide incentives to the Lessee to develop a beneficial new industry for the city of Seward. Section 3. An appraisal of the property is not in the public interest. Section 4. This resolution shall take effect only AFTER approval by the City Council of the co-generation agreement referenced in Section 1 of this resolution AND after this resolution has been posted for a period of 30 days in accordance with the Ordinances of the City of Seward. If a co-generation agreement is not approved by the council by June 27, 1989, then this resolution and Chugach Lease #3 shall be void and of no effect. PASSED AND APPROVED BY THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, this 8th day of May, 1989. CITY OF SEWARD, ALASKA AYES: NOES: ABSENT: ABSTAIN: GIESELER, DUNHAM, HILTON, MEEHAN, NOLL & SIMUTIS NONE O'BRIEN NONE -2- . . . CITY OF SEWARD, ALASKA RESOLUTION NO. 89-040 ATTEST: (City Seal) APPROVED AS TO FORM: Perkins Coie Attorneys for City of Seward By: 7~ /II ~ Fred B. Arvidson City Attorney -3-