Loading...
HomeMy WebLinkAboutRes2005-063 Failed Sponsored by: Corbridge - CITY OF SEWARD, ALASKA RESOLUTION 2005-63 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, APPROVING THE SITE SELECTION LOCATION FOR THE LONG-TERM CARE REPLACEMENT FACILITY, LOCATED ON APPROXIMATELY FIFTY-THREE (53) ACRES OF PROPERTY CURRENTLY OWNED BY STEVE SCHAFER, DESCRIBED AS: TRACT 1, TRACT 2, TRACT 3, TRACT 4, TRACT 5, AND LOTS YY, ZZ, MM, DA, DB, DC, DE, DF, DG, QQ, PP, XX, AND BJ, OF FOREST ACRES SUBDIVISION WHEREAS, the Seward City Council has listed the replacement of Seward's long-term care facility as its number on capital priority; and WHEREAS, at the Seward City Council meeting of July 11, 2005, the City Council directed the administration to forward three resolutions, representing the final three site selection options for the construction of the replacement long-term care facility, in order to make a final site determination; and .... WHEREAS, Steve Schafer has offered to sell approximately fifty-three (53) acres of property located in Forest Acres to the City of Seward at a cost of twenty thousand dollars ($20,000) per acre, for a total sales price of approximately one million sixty thousand dollars ($1,060,000); and WHEREAS, the attached map shows the properties offered to the City by Mr. Schafer, demonstrating that approximately 2/3 ofthe property is located to the north of Japanese Creek; and WHEREAS, although the City is interested in a portion of the identified parcels as necessary for right-of-way acquisition for future construction of the Japanese Creek Levee, phase II, the time involved in negotiating property acquisition and/or a property swap for use in the long-term care replacement facility project may add significant costs to the project, since every month of delay in the project is expected to reduce reimbursement revenues by at least one hundred thousand dollars ($100,000); and WHEREAS, the City has not yet confirmed who has title to this property; and WHEREAS, the decision to select this property for purchase is contingent upon the parties successfully negotiating terms acceptable to the City, to be negotiated within a period of no more than 180 days. .... CITY OF SEWARD, ALASKA RESOLUTION 2005-63 NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, that: f, I , .... Section 1. The City Council of the City of Seward, Alaska hereby authorizes the City Manager to enter into negotiations with Steve Schafer to purchase approximately fifty-three 53 acres of property described as: Tract I, Tract 2, Tract 3, Tract 4, Tract 5, and Lots YY, ZZ, MM, DA, DB, DC, DE, DF, DO, QQ, PP, XX, and BJ, of Forest Acres Subdivision, to serve as the site of the long-term care replacement facility, with the stipulation that negotiations must conclude within 180 days from the effective date ofthis resolution, and the terms ofthe sale must be acceptable to the City. Section 2. The City administration is hereby authorized to pursue a Certificate of Need with the State of Alaska Department of Health and Social Services, for the purpose of constructing a long-term care facility in Seward, and to begin the planning and design phase of this project immediately. Section 3. This Resolution shall take effect immediately. PASSED AND APPROVED by the City Council of the City of Seward, Alaska, this 13th day of July, 2005. THE CITY OF SEWARD, ALASKA -I~-k- ~~ Vanta Shafer, Mayor .~ .... AYES: NOES: ABSENT: ABSTAIN: Lorenz, Valdatta Branson, Dunham, Amberg, Clark, Shafer None None ATTEST: ') Jea~ Lewis, eM \\"nuI", City Clerk '......'~I 01= Set;"'", .." ~"' .......... ''Af.!f"oo .. ,z,' c} ..~.(.,~POR..q~:'O ..~ (City Seal) ~ /-'>.V"' ~". ':. ... . .;:y -.-. () ., : .~-" : . - " . SEAL : .. :8: . :0: ~ . . - ~~ -..-!: ~ .fl\....VI. '" l ~ ':0 Y',. ..VA.,," _91"..".'l",!!e " '.:d -.'vIi;. 1 ',I ~ P '"!,; '7"'" ......1... CO .....' '~ ~ OF p..\..~\..~ l"UUIUr,' ..... Council Agenda Statement Meeting Date: July 13, 2005 From: Clark Corbridge, City Manager Agenda Item: Site Selection for Long-Term Care Replacement Facility Option: Schafer 53 acre Forest Acres Subdivision property BACKGROUND & JUSTIFICATION : The Seward City Council has listed the replacement of Seward’s long-term care facility as its number one capital priority. During 2004, the City engaged the services of ECI Hyer to examine potential site selection alternatives for a long-term care replacement facility, with primary emphasis placed on attempting to utilize either existing space on the current hospital site, or adjacent privately-owned parcels. Council discussion on the results of the ECI Hyer study suggest that there is insufficient space available on the City- owned hospital property site, to construct a long-term care facility that will meet the residential-style model of care necessary to make the new facility appealing to prospective residents and their families. At this point, it does not appear likely that adjacent property owners will willingly sell their properties, and the administration prefers to find a site that does not generate unnecessary opposition to the project. In addition, the administration recommends finding a site that provides opportunity for future expansion, including the possibility of someday physically co-locating the hospital and the long-term care facility onto a single site. At the Seward City Council Meeting of July 11, 2005, the City Council directed the administration to forward three resolutions for their consideration, representing the final three site selection options, in order to make a final site determination. The City has been approached by Steve Schafer, with the offer to sell approximately 53 acres of property to the City at a price of $20,000 per acre, for a total cost of approximately $1,060,000. Mr. Schafer has also indicated an interest in possibly entering into a mix of selling land to the City, and exchanging land with the City. The long-term care facility project is constrained by the need to complete construction by January 1, 2007, or incur lost revenues in excess of $100,000 per month. This necessarily requires that the City move forward as expeditiously as possible to complete the project. Unfortunately, we expect that the time involved in purchasing and/or swapping land with Mr. Shafer would delay the project resulting in added project costs of up to $600,000. In addition, the purchase of land is not reimbursable in medicaid rates, and would therefore have to be paid for by local taxpayers. The General Fund has a total undesignated fund balance at January 1, 2005, of approximately $3 million. In order to maintain a fund balance level equal to the industry standard of between three and six months of expenditures, the fund balance level should be between $2.1 and $4.2 million. The administration does not recommend the purchase of this property for the long-term care replacement facility project based on the likelihood of incurring significant added costs to the project. However, the administration is interested in discussing this particular property as it relates to the need for right-of-way access to some of the identified Schafer property, for the future construction of the Japanese Creek levee. CONSISTENCY CHECKLIST : Yes No N/A 1. Comprehensive Plan XX 2. Strategic Plan XX Site Selection for Long-Term Care Replacement Facility Privately-Owned Forest Acres 53-Acre Site Page Two FISCAL NOTE: The outright purchase cost associated with purchasing 53 acres of property is approximately $1,060,000. In addition, there will be costs associated with conducting a geotechnical study on this property as part of the planning phase of the project. Further costs will be incurred in the form of lost revenues, for each month in which the project completion extends beyond December 31, 2006, so the estimated additional costs could be up to $600,000. Approved by Finance Department: ____________________________________ CONCLUSION: If the Council decides to pursue this site as the future location of the long-term care facility, the administration will negotiate with Mr. Schafer to purchase approximately fifty-three (53) acres of property described as: Tract 1, Tract 2, Tract 3, Tract 4, Tract 5, and Lots YY, ZZ, MM, DA, DB, DC, DE, DF, DG, QQ, PP, XX, and BJ, of Forest Acres Subdivision, with a final sale contingent on negotiations being complete within 180 days, and the terms of the sale must be acceptable to the City. The Council further authorizes the administration to proceed with an application for a Certificate of Need through the State of Alaska, and to begin immediate planning and design to construct the long- term care facility on this particular site.