HomeMy WebLinkAbout08302019 City Council Special Packet Seward City Council
Agenda Packet
•
Special City Council Meeting
Friday, August 30, 2019
Council Chambers, City Hall S:00 p.m.
SPECIAL MEETING REQUEST
Pursuant to Seward City Code 2.10.030 (2), this is to serve as the written notice
calling a Special City Council Meeting on Friday, August 30, 2019 at 5:00 p.m. for
the purpose of:
To consider extending the Friends of the Jesse Lee Home Agreement
Signed this 29t" day of August 2019 at 4:00 p.m.
Mayor City Manager
3- 6—unc' �Members
Upon this request the City Clerk will give due and proper notice as required by
SCC 2.10.032
(No business shall be transacted other than stated above.)
1
SPECIAL MEETING NOTICE
Pursuant to Seward City Code 2.10.030 (2), this is to serve as the written notice
calling a Special City Council Meeting on Friday, August 30, 2019 at 5:00 p.m. for
the purpose of:
To consider extending the Friends of the Jesse Lee Home Agreement.
The meeting will commence in the City Council Chambers, City Hall, 410 Adams Street,
Seward. All interested persons are invited to attend the meetings.
Posted: 4:40 p.m. on Thursday, August 29, 2019
City Hall bulletin board
U.S. Post Office
Harbormaster's Building
Seward Community Library Museum
2
The City of Seward, Alaska
Special City Council Meeting
Friday, August 30, 2019 5:00 p.m.
David Squires 1. Call To Order
Mayor
Term Expires 2019 2. Pledge Of Allegiance
Sue McClure 3. Roll Call
Vice Mayor
Term Expires 2019 4. Citizen Comments On Any Subject Except Those Items
Scheduled For Public Hearing. [Those Who Have Signed In
Suzi Towsley Will Be Given The First Opportunity To Speak. Total Time For
Council Member This Agenda Item is 36 Minutes.]
Term Expires 2019
5. Approval Of Agenda And Consent Agenda [Approval of'
Jeremy Horn Consent Agenda passes all routine items indicated by asterisk
Council Member (*). Consent Agenda items are not considered separately unless a
Term Expires 2019 council member so requests. In the event of such a request, the
item is returned to the Regular Agenda.]
Sharyl Seese
Council Member 6. New Business
Term Expires 2021
A. Other New Business Items
John Osenga
Council Member 1. To consider extending the Friends of the Jesse Lee Home
Term Expires 2021 Agreement............................................................Pg. 4.
Kelley Lane
Council Member 7. Council Comments
Term Expires 2020
8. Citizen Comments
Scott Meszaros
City Manager 9. Council And Administration Response To Citizen Comments
Brenda Ballou 10. Adjournment
City Clerk
Will Earnhart
City Attorney
City of Seward, Alaska 3 Council Agenda
August 30, 2019 Page 1
as
0 �
4r, a 13r..C?e1.dT"i t Pert f CC:�r�trWtt�°RC E, M S ^EC.f ICY, C'rW ECONOMIC DEVI:t,CiT'MENT
DrVISfON OF('ONMU:VITY AND REGIONAL AFFAIRS
Designated Legislative Grant Program
C:rrttnt .Agreement
C' r:ant Agicerrrent Number �"�ra�4 r �,uaaro tram. A,rcaount cap'Srrata Funds
lzt1': ha rarfars"arion Uni� 1.al�aser Date 1110,4cr Title Hazardous rnaterlal te'snesw�al and site remedfatiaan ar
d;`M S21004 06,!3i,),%'?021 the Jessel ee 1-leasxae for tine fiscal years ending Jtine 30, 019,June
0,2020,and 'unc 30,2021
Grantee J elaa:rtrrtent Contaact Person
N aarnea
N srosaae
City of Seward Robua Park
street/110 13nx 3'arle
110 Box 107 grants raadnau.nlstraar;crr 11
clt� 1 t,ata " a1a Street 1'CS Zia s
Seward, Alaska 99664 01 '7 P0 Box 110809
C aanract Pcr,aon Ciq Stare Zip
Knsrin Erchin,eer, 1°lrnnce Director Juneau, AlasLa 99811 0,309
Phone 7777
907-224 4¢:6 4 90"'-22 , 4t;1.38 9t,➢�,4o 4731 46s'5 4761
ke"rcltata�a�r!r�;a.ar��aat'scaa»aa°r1.aact raii�ira."wrar�""�}:aGras4aa. aasv�
71 C liC 1 1:l!wl laa "r
Affairs p of Cwaaa¢�r�acaarramr,.,. 7, 7aka r'calacrar W, l,�ua°u^aar,n rat.G.aa.rara•ura.t) and Regions
f"Ise r�4ask,a C9e trrrerat � C.rrnarsa+��anat aaraa:l le:c«~.rtanrr.ac 1�.
r ff;irs(hereinafter"C epirunent")and�,���q, k t��.tt "te�resn,after Grantee) agree as set;foada heremr
Seettrarr &" The shall
t ntee for the laerfnznaance of the favor ecr work under the teens crrutl.ined i tins
A reernent, The amount of�the r�a7ra~a "�ea�ar is based upon prow ect expenses incurred, which h are aurlaor ztd under this
A .cement. in vacs event shall the fraymenr exceed a,97- 441::4�r
Section 11, The Grantee shaU perfa:arrrs all of the work required h� flit, Agreerrier•at.
Section 111, The work to be taaerfornaed under this Agreement be irar ��4ttC�,9,..� .f w and sh-all be c:asrnplered no later than
Section 1'1,".'3"uae Agreement crmsWs of this p1ge and the following:
.ttx.hn,.ent A: Scope ofWork Any, fo.:l.ly cxec�ed a nac°nclnaents to tlaia e\ reemcr
1. lrrupecc Description
7, larrr ccc Budget APIR N
3 Project 4" Reportingana era,crrat Appends, .'^ Snate Laws and iCef„ulaadcnns
Attachment R Payment Method
rt.achrnent C Standard Provisions
Grantee De artn"aent
uasaaaansre Sirsarsrre
Printed"s° sae ,r td eer� Prasaeed'Name and Title
effse Interar Cite Mann f"auletta Bourne, Grants Ac�hiurnstratrar�111
Date: Darr
DECEMBER ff13, 2018
Gtea-uaa�rad la} _... �
Pei,6INS Des�w,�ewszred�a� saFratevr"�,eara � a�^mar are a , Ii
4
i
or 71 'FHE STATE
A
?ALA"X
and Economic DeN,clopilic.'rit
GO ER . U BILI. % ALKt_ta E ., (�[ au�Q. .»ft " "'D ! �atT�"n „al :°
ALI
00aalaa^r , 201
Kristin I xcllir�al c't, 1°iruaautr,e� Director
la( ) Ile, c 167
e waaa•c:I, AK 99664 t l l6r
RI°O FY 009 lWillatatexel l,cl;ua»laWT Muat `t)luTe°a.°aaam
Dear Nk I;r�eIa�rrl7e:ar:
I;ttealoscd ycnu QU bul ;a lVant aallreearnerat lacrra°ccta the: (Am ofa~wma-ud aautel l;)cl:aatrmott of
Grraaruwra:e^, (Amuum.ur'titl„ "anti Iaco carrtk; Develolataacr�rt h+at° use towards the 1 laa;,,m o us r�n:atcriaal
a~caamwaal ,and she trnuxhabmi at lc je^aw .Ixe Uhattae tl:;ar the 6-0 iv^us eaaadtaag.franc 30, 20�9, ja. nc,
'ill„ 201, and wrote: 3V 2021,
lint aaralcr to rcceirc grant 11artels, a gmnt afire°a°nectar maim he e° ec utcel. Garcfullv rc6cw dic, aagrcctuacuat,
he
sign telaau ,you �crazrtfllet tlue�°� auelclue.s alx)vc. Upcw t mccipt and approval, a f�atllr a°�u�a:°a.�attc°cl c(Ily S�t�ill
ent
If a on have any elrue° th as rcg,arela.ng your pTaartt aapecarre:atrt a.`etrnact nun via plraa a at P7YI 165.4 73I or
c1li,ail rr;alruat,I><aa err;»alda�4..a. a::aa
Sirtcearc h",
Robin INS
Gr„arats :dini.rrkraa.wr H
Enc~hwurc:W
5
�_ ... .. �... _ .. . ...........
Scope of Work
Project Description
lie Irauquasc° crl this M"�019 De°sufrrauteed Lclria ht:ia°cw Grant in Mee aarraomat of 1,073„441.46 Vvirmaill bra the
pnaaFishns#�00 ..a31 a A.5.S/a//ae, 'saasa s to"11UN�NrMr .S°I A 201A.S"II /12, C h(( *r 19, .Scala°rsa 32, I'Tr������„ anel l illr
131 as to preshk faruralAW to (Am <rf`Icea'vv°aarcl Or use tcaaa,rd„ I laaz,arclaruus uuraterdaal rearmnaal aaaacl sic rcetruxhaatit.rra at
tire° 1csse Le°c° I-Icmne I'eau. the fieac`;rd rcems c°uucll: g juunc° Th 20" 9,ju.uuae.° 30, 20M, and June 30, 2021. Ile su6rjective
ad tlu s Irr° lmt is to ndilate the Jesse Ixe Ifunne siruuc tarurce which pews ar syrrilicarw natrraaati%e nt.urs.aticce and a
health hazard to the rceastcicuratiaul A;ylul>arr°lCHKI. "I`IrCSC frraads "A he rr cd trr rc°aart;r q elle,larcw and aalaaatce
eaaaa°u.rcrrrrrreer�utarl haxaa°e.ls wrt-aalaaaral.l on the property, including aasbcstos, uurucletgrournd fuel .and/or other t niks,
laeurlclhuaq, biwingand structures,and to rr(Ispsec tfrrlly° re°tn ovee salvageable aawrc d and/or l.rrc)pvrtl. fcanrres, to IauAI
ae rruceraaeurial tar tlae rcwsi deerrtsr and staaff o tluc: firculit�a.
Ibis Iur°eymi ruses" OWN the fcalleraa ruy ite°rw
* lJazard aalaauteeraae.°sat
+ I_e,rra°rrc:raarasc null haxaar<Itrrre,Ava mu cllslaeaa,arl
� l�aalaart c:°erst`s
Nkneeriauls/surlrp h es
* Permits
• Meurrarrial construction
Acic.lArraal es.Iaamlutrrrces uaaaust lic rcaascarraalalce .and rea°lautivee to than Irrerlect Ajeucthv and raus v rc°clu"w Inc ,alaPrm wal
by the cle:Iaaartun erut.
?"s;ea r.ruarr°c^ than fie percent (za"o) crl Ow tcrta'I Mrarat award may be Kr~aalaaursm:l faro° 1drrriraastratas~e cxlrcaa�scs Ar.
Iar(gc°cts drug-Wit, a eclaulprravrats puurclraascw or rcelrKahs <arrcl no rraem"haarr wn I>cRr°c.•cerat (I W4) a,I he tcrtud grant mars
tniv be r~cedtt b urewd in ,'aclm inktr ative e°x pe ausys Ow A Am frr° gebc°ts. To be reinib ursc d for cldflulale
.adt'llini;traative e.°casts„ CNI>c r SCS ruacrst be tVl�aerr Cd eras the I)e Siglu,agMI l.e.40Sl;16VC Grant I°truaaracataal/Pr(al,rcss
.aehrcarrt fc>r�rrr.
. Project Budget
..ca t ( t. . .r ...... Ot»i Prgje c t Co,s,t,s
r l.. _..._rv.._.ry.,. ........ . . 4
Total Grant Funds +�,I)73, 41.........6.....
I Project Management
°I Wain Iar"ect mAl be ruraaraalbeecl by ties! Grantee.
Siflrratoy acrtlrcrr.i , fin cexecurti°»rya of the Grant greenicnt and smisequern ar cemirnevats us granted to the chief
administrator. For grants aafalamp6aatcd to a rraamkllmhty, die rraaym is the cwlAf ;aelurar .tmautcara tudeeass the
rrrurkiluahty° crlwmes a marrage:r6l kn ur of fls:aa er-unerut; them the city mauaager/admi,t�arstra mr ,acrs as tree chief
admiraistratem I^ w named recipients aarucl imincot1aeuraated c,eararnnur itice „ the executive utivee director or highest ranking
official will act as c hi of aac(rr inistar,atcua°.
Al la„:4`dM I aertil;nemet Cegishvite Grant Agreement�nt Nge 2 cyl.3
.......... _... ...... .... ........ . ........�.. ..,..._ . .. . .�, _..... .... _..w . ...... ...... .., _..,,,,,
The C hie fadministrwa nug WgritellUdWy for cxvcmhig die Grant .1grevinew maul amendments U) odiers
WAS the Gwnw& cqpnizadmi & the Signatory Nuthority waL rhe clWf adnWitistrator So desynaws
financial and performance progress trjumbig authtwity & Me Synamy AuNwity Form, SLIC11 dC1Cg2ti0f1 as
lindred to odiers WON taus Gratam's (alynkmAm unless othcrwisc approved by the Depannient,
11re Grantee Inust establish and maintak selmrare ammmQ; Umn1w me of this Wma, Ile "w to Watu folels
At any "mitner conwry to the uTn" and comikicnis (W this Grant Typeinm tam'
y result in tlw st0sequent
revocatia,)n of thc Grant and am balancv of funds, under the (drant, 1) also resuh ill the Grantee being
required m rouni sudi anumnus N) the Stm,
if 1.111LI(T St_MC 1AW, graiaves inust hv registmed and in gm)d simichng widi div DvIntriment of
Wrimove, 0"ninmik and Koremic DevchpiwnCs ISSAin of G)Tmations, Busilless aallll Profession,"d
4. Reporting
The Wanlcu shall mdmlt a Des4piated JAJOSISM Gnint FinalKin I/Prt Tress Rclum 11min Inwil"I 1, dic
IhImm"nent each tract d, (w quarterly, Wh tht, conctmem, of the 10partmcw, dultnp, the hfc of the Grant
kgrvemem. Wnt lWanclal/Progress Report Forins are due thi, (3Q days alK the v:Rl of the m(midi or
tpink,bckg rqunwd The n1wrt 1wriod is dw first of dw imm"h thrmqj the lut day of the immidl. If quarwrly
reporting is approvcd, the report pe tiot! is t1w first daV Of t1k, f1w n"mah dwou h the St day c 4the didd n lon d i
9
of dic quartet. '11w 6nal l'inaricid/Pngress l0pons must be sidmiAtted \%,ithrn thirty' (w) da�ts follo.,ving
conipletion of'the project,
Rev 6 2W8 1qw5ww;e(orant Agrconenr 3 13
7
Sponsored by: Flunt
CITY OF SEW AID D,ALASKA
RESOLUTION 2014-059
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD,
ALASKA, ENTERING INTO A PURCHASE AND SALE M'REEMENT'
("AGREEMENT") BETWEEN THE CITY OF SE AMA AND THE
FRIENDS OF THE JESSE LEE HOME, DISPOSING OF PROPERTY AT
LESS THAN FAIR MARKET VALUE TO A NONPROFIT
CORPORATION, FOR ]LOTS I AND 15B, JESSE LEE HOME
HEIGHTS SUBDIVISION ADDITION NO. 4 ACCORDING 'ro PLAT` 89-
18, FOR 13SE AS A PUBLIC EDUCATIONAL AND RESIDENTIAL
BOARDING SCHOOL
WHEREAS, the Seller owns the Jesse Lee Horne property ("Property," defined below)
that is the subject of this Agreement; and
WHEREAS, since 2005 the Buyer has been working pursuant to City of Seward
Resolution 2005-01 and City of Seward Resolution 2005-83 to obtain ftinding fbr the
rehabilitation and development of the Property as an educational and residential/ boarding
facility;and
WHEREAS, Buyer has already coordinated valuable improvements to the Property,
including but riot limited to Structural Stabilization, Roof Protection & Repairs, Phase I
E'nvin)nmental Assessment, flazinat Study, Surveying, Structural Analysis and Architectural
Design; and
WHEREAS, the property was appraised by MacSwain Associates LLC, in 2011 and the
two parcels were valued at$470,000 for the raw land; and
WHEREAS, since repossessing the property in 2001 the C'ity has paid $264,958 in back
taxes and utility assessments, plus untallied administrative, maintenance and risk control costs-,
and
WHEREAS, the assessed value of the property has decreased over time as the property
has deteriorated; and
WHEREAS, Buyer has supported $33,125,51 for the Environmental Study, liazmat
Study, and survey work and has agreed to provide additional improvements totaling $290,750 as
consideration toward the purchase of the property; and
WHEREAS, the Buyer wishes to acquire, rehabilitate and develop the Property fbr LISC
ass public educational and residential/boarding school; and
WHEREAS, the Buyer intends to submit an application to the Kenai Peninsula Borough
School District for a charter school; and
8
CITY OF SEWARD, ALASKA
RESOLUTION 2014-059
WHEREAS, the Property requires significant physical improvements to be used for such
purposes,and such uses also require,that governmental permits and approvals be granted', and
WHEREAS, development of the Property by the Buyer as an educational and
residential/boarding school will he a public benefit-, and
WHEREAS, the educational and residential/boarding school will have a net positive
econornic development impact for the community including short and lean -terns employment;
and 9
WHEREAS, Buyer is uniquely situated and able to redevelop the Property; and
WHEREAS, it is in the City's best interest to dispose of these properties in the manner
described in the attached Purchase and Sale Agreement, to transfer the risk and liability of the
abandoned Properties and the responsibility for necessary site hazardous materials disposal and
abatement to the Buyer,
NOW, THEREFORE, BE irr RESOLVED BV THE CITY COUNCIL OF THE
CITV OF SEWARD,ALASKA that:
Section 1, The City of' Seward hereby authorizes the City Manager purRiant to S(,(-'
7.05,120 and 7,05,150 to execute the Purchase and Sale Agreement tbr the sale of properties'
referenced as 15A and 1513, Jesse Lee Heights Subdivision Addition 'No. 4 according to Plat 89-
18, Seward Recording Distract, Third Judicial District, State of Alaska to the Friends of`the Jesse
Lee florne for less than flair market value.
Section 2. The Friends of the Jesse Lee Home agree to complete at least $290,750 in
future long-term site improvements and to pay all closing costs and flees for said property as
consideration to the City for the properties.
Section 3. The Seward City Council finds the disposal of these properties as described in
the attached Purchase and Sale Agreement to he in the best interests of the citizens of the City of'
Seward and that the public interest will be served by disposing of the property interest for less
than the appraised fair market value, in accordance with the recitals above whicil are
incorporated herein,
Section 4. This Resolution shall take effect thirty (30)days after passage and posting.
PASSED AND APPROVED by the City Council of the City ofSeward, Alaska, this 28"' day of
July, 2014,
9
Council Agenda Statement
Meeting Date: July 28, 2014
nirougir Jim Hunt,City Manager
From: Ron Long, Assistant Q �r&Community
Development Direct arm
0-7
Z7,-',-
Agenda Item: To enter into a purchase and sale agreement
between the City of Seward and the Friends of the Jesse Lee Home,disposing of
property at less than fair market value to a nonprofit corporation, for lots 15A
and 1513,Jesse Lee Home Heights Subdivision Addition No.4 according to Plat
89-18
BACKGROUND & 11 IRTIFICA-TION:
The Jesse Lee Horne is listed on the National Register of Historic Places and has been identified by the
Seward Historic Preservation Comurtission,Planning and Zoning Commission,previous City Councils
and the State of Alaska as a property that should be preserved and rehabilitated, 'rhe City of Seward
acquired the Jesse 1,ee Home property through a foreclosure action in 2001 after previous private
preservation efforts failed, The Friends of the Jesse Lee Home (FJLf I) was formed to preserve the
property as an education facility and has since worked to obtain funding for the rehabilitation and
development of the Property and to develop a business model that can sustainably operate the property
as an educational and residential/boarding school.
The property was appraised by Mac Swain Associates LLC in 2011 and the two parcels were val tied at
$470,000 for the raw land. The Kenai Peninsula Borough assesses the properties' value at$193,500.
The City's cost basis in the property is $264,958 paid in back taxes and assessnients, plus untallied
administrative, maintenance, and risk control costs. FJLH has coordinated$33,125 in environmental
Studies, [JAZMA*r assessments and survey work that estimate the costs of HAZMAT abatement at
S216,000. Actual costs may be more, and other costs would be necessary to make the property
marketable for other uses.
FJLH wishes to acquire, rehabilitate and develop the Property for use as a public educational and
residential boarding school. Tice Friends ofthe Jesse Lee Home intend to submit an application to the
Kenai Peninsula Borough School District for a charter school,The Property requires significant physical
inaprovenients to be used for such purposes,and such uses also require that governmental peri-nits and
approvals be granted,
The City recognizes that in its current state the property is more of as liability than an asset to the City,
and that FJLll is uniquely situated as the most likely entity to bring the property back to a viable state
that will restore the public purpose and maintain the historic significance of the property.
FJLH has coordinated significant funding towards the project,has done considerable architectural an(]
engineering work already, and now needs to gain site control before beginning the mkior work of
restoration and development, Yet more funding is needed to complete the proJect;FULH will exhaust sillefforts to ensure the project succeeds but there is no guarantee that a source can he found or that the
project will actually he completed.The Friends of the Jesse Lee[Ionic and the City adn ii nist ration have
negotiated the attached Purchase and Sale agreement that,attempts to further(fie Friends'obJectives and
the City's desire to see the project succeed but at the same time ensure that if it does not, that the City
10
will at least take back ownership of as developable and sellable property.
'I"he agreement prioritizes the HAZMATabatement and environmental cleanup work and provides a
reasonable timeline to complete that work,The City receives no cash in this agreement,and this is a less
than fair market value transaction. As consideration, the: City accepts the $290,500 of planned
improvements as described in the Purchase and Sale Agreement,at the timeline benchmarks therein,to
be of good value and in the public's interest. Additionally, a reversionary clause endures with the
prol.ject to ensure that if the property is used for any purpose other than that which the City accepts,as a
condition to the transaction (use as a public educational and residential boarding school), ownership
goes back to the City,
Development of the Property by the Buyer as an educational and residential/boarding facility will be a
public benefit. The educational and residential/ boarding school will have a positive economic
development impact for the community including short and long-term employment,The Friends of the
Jesse Lee Home is uniquely situated and able to redevelop the Property.
This Agreement is in the city's best interest to dispose of unused land and provide necessary site
improvements to make the property an asset to the community and not as continuing liability,
jNTEW: To dispose of property at less than fair market value as described in the Resolution and
Purchase arid Sale Agreement.
CONSISTENCY CHEMIST: Yes No N/A
Comprehensive Plan (p. ):Cultural bare ilifies - Options re,furbishing the
1, Jesse Ixe Home pet-HistoricStructure Report; 3.9.1..E— Encourage the X
e�c()S!tition, rehabilitatio an ms�,d i�c ton historic,structures...
Strategic Plan (document sourve here): X
m Other
T W-�iT olutions of support;
(le
National Reg�lsfiLi otflistoric Place. X
El CAL N0'FE: No money changes hands in this transaction. The Friends of the Jesse Ixe Iforne
agrees to pay all closing costs and fees, The City has written off the costs to acquire the property in
previous budgets. Transfer of ownership will reduce the City's liability for an attractive nuisance
property. Ownership by as non-profit entity will maintain the tax-exempt status of the property.
Approved by Finance Department:
A'I'TORNEY REVIEW
RECOMIM.E.NI)AI'ION:
To authorize the City Manager to execute the Purchase Agreement for the property referenced as 15A
and 1513, Jesse Lee Heights Subdivision Addition No. 4 according to Plat 89-18, Seward Recording
District,Third Judicial District,State of Alaska with the Friends of the Jesse Lee Flome as a less than
fair market transaction in substantial form as described in the attached Purchase and Sale agreernent to
facilitate the use of"the property as as public educational and residential/hoardi rig facility,
11
7/28/2014
PURCHASE AND SALE AGREEMENT
This Purchase and Sale Agreement ("Agreement") is made as of July 28, 2014, between
Friends of the Jesse Lee Home, an Alaska nonprorit corporation, recognized by the Internal
Revenue Service under 26 US.0 i1(c)(3) ("Buyer"), whose address is 11.0. Box 737,
Seward, Alaska 99604, and the City of Seward, an Alaska home rule municipal corporation,
whose address is P.O. Box 167, Seward, Alaska 99604("Seller"),
RECITALS
WHEREAS, the Seller owns the Jesse Lee Home property ("Property," defined below)
that is the subject of this Agreement; and
WHEREAS, since 2005 the Buyer has been working pursuant to City of Seward
Resolution 2005-01 and City of Seward Resolution 2005-83 to obtain funding for tile
rehabilitation and development. of the Property as an educational and residentiall boarding
facility; and
WHEREAS, Buyer has already coordinated valuable improvenients, to the Property-, and
WHEREAS, the property was appraised by MacSwain Associates LIX. in 2011 and the
two parcels were valued at$470,(M for the raw land; and
WHEREAS, since repossessing the property in 2001 the City has paid $2.64,958 in back
taxes and utility assessments, plus untallied administrative, maintenance and risk control costs;
and
WHEREAS, Buyer has agreed to coordinate additional improvements which will
increase the long-term value of the site; and
WHEREAS, the Buyer wishes to acquire, rehabilitate and develop the Property for'Use as
as public educational and resident ial/bciardi ng school; and
WHEREAS, the Buyer intends to submit an application to the Kenai Peninsula Borough
School District for a charter school-, and
WHEREAS, the Property requires significant physical improvements to be used for such
purposes,and such uses also require that governmental permits and approvals be granted; and
WHEREAS, development of the Property by the: Buyer as a public educational arid
residential boarding schoc.)l will be a public benefit,: and
WHEREAS, the educational and residential/ boarding school will have a net positive
economic development impact for the community including short and long-.term employment;
and
WHEREAS, Buyer is uniquely situated and able to redevelop the Property; and
UJAL%A L4q.YU 21__
Seller Initial I I ik 1yer.1 16 11 1i a
Page 1 (PI'7
12
7/28/2014
WHEREAS, it is in the city's, best interest to dispose of these properties at less than fair
market value in the manner described herein, transfer the risk and liability of the abandoned
properties and the necessary site hazardous material cleanup and abatement to the Buyer.
Now, therefore, Buyer and Seller agree as follows:
1. Put�Lasg and Sale.-
SubJect to the terms and conditions of this Agreement, Seller agrees to sell and Buyer
agrees to purchase good and marketable title in fee simple, subject to reversion, of the following
real property, including all irnprovements, fixtures, and appurtenances, described as follows (the
"Property")-
Lots 15A and t513, Jesse Lee Heights Subdivision Addition No, 4
according to Plat 89-18, Seward Recording District, Third Judicial
District, State of Alaska.
1 Consideration:
'rhe title of the property shall be transferred on August 29, 2014. rhere shall be a
reversionary clause to transfer the property back to the City of Seward if the following
improvements are not, completed within a five (5) year terns. The consideration for the transfer
of the Property shall consist of previous studies necessary to evaluate the site plus site
improvements (the "Work") to be performed by, Buyer to the satisfaction of the seller, on, or
before, the final date of the Due Diligence Period of August 30, 2019. The Work shall consist, of
the following:
a. 1-lazmat Abatement (estimated at$216,000)
b. 50% of Water Utilities: 270+/- feet 8" main @ $200 per foot and 2 hydrants
(estirnated at$74,000 X .5 =$37,000)
c. 50% of Sewer Utilities: 220+/- feet 6" main @ $150 per foot, 100+/- feet 4"
main @ $125 per foot, 3,SSMHs @ $1 0,(M each (estimated at $75,5M X .5
$37,750)
Total estimated required future unprrrvernents: $290,750.00.
In addition, Buyer has coordiiiated$33,125.51 for the Environmental Study, Fiazinat Study, and
survey work listed in Appendix A, for total consideration of$323,875.51.
Upon substantial completion of all Work, the reversionary clause shall rernain in effect so that
the properties shall revert to the City of Seward if the above work is not completed finally or the
properties are used for any other purpose than as a public education and residential boarding
...........---------- . ......
Seiler ln4ial Buyer lnilW
Page 2 of 7
17-
13
............
7/2a/2014
facility, unless the City and Buyer mutually and in writing agree to allow other uses and not
initiate reversion,
3, closiAg:
Consummation of the sale (the "Closing") shall take place at the offices of the Seller, or
such other place as Seller and Buyer agree in writing, The Closing shall be completed on
August_,-.,.,--_-,, 2014, unless otherwise agreed by both parties. In the event this transaction is
not closed within the above-described closing period, this Agreement shall terminate unless
extended in writing by mutual agreement of the parties, Seiler and Buyer shall cause the
following to occur at Closing:
a, A Quitclaim Deed with reversionary clause as described above, conveying the
Property to Buyer, duly executed and acknowledged by Seller, shall be recorded
in the Records of the Seward Recording District, Third Judicial District, State of
Alaska.
K Buyer shall deliver to Seller a certification that the work will be completed no
later than August 30, 2019.
4. Closi ts*
ps-f-0—S �
All Closing costs of the transaction, unless otherwise provided in this Agreement, shall
be paid by Buyer,
5. arL d arrant.!j L:
The representations and warranties of Buyer in this paragraph are, a material inducernent
for Seller to enter into this Agreement. Such representations and warranties shall Survive the
Closing, Buyer represents and warrants,to the best of its knowledge:
a, Buyer is being provided a sufficient opportunity to investigate the condition of'tile
Property; Closing of this transaction shall constitute a certification that Buyer releases and holds
harmless the Seller froun all liability and legal clainis, environmental or otherwise, whether
known or rnay be discovered in the future, concerning or affecting title to the Property, any
operation or activity on the Property or any condition now and hereafter existing on, in, or under
the Propeiiy.
b. Buyer is being provided a sufficient opportunity to become farrifliar with the
deteriorated condition of improvements on the Property. Buyer acknowledges that it shall
acquire the property "AS IS" AND WITHOUTWARRANTY OF ANY TYPE OR NA,rURE
rNCLUDING ANY IMPLIED WARRANTY OF MERCHANTABILITY OR FITNESS FOR
ANY PARTICULAR PURPOSE,OR USE.
& Condo ons of L),sjqgd
C1
LLUKLL
SQUer Initial
Vage 3 47 Buyer Initial
14
7/28/2014
This Agreement is subject to approval by the City Council for the City of Seward,
following notice and a public hearing as required by the Seward City(-I
ode.
b. After approval by the City Council, Buyer shall have until August 30, 2019 to
perform Due Diligence (the "Due Diligence Period'), to investigate the condition of the Property
and its suitability for Buyer's intended use, and to perform the Work that shall constitute the
consideration for the acquisition of the Property.
L If Buyer determines for zany reason in its sole discretion during the Due Diligence
Period that the Property does not meet its needs, Buyer may notify Seller in writing that it
is terminating this Agreement and shall be released from all obligations under this
Agreement except for ongoing indemnity obligations and any costs to the City associated
with terminating the Agreement,
2. During the Due Diligence Period, Buyer and its agents may enter upon the
Property and, at Buyer's expense, conduct soils tests, environmental assessments, traffic
studies, feasibility of excavation permits, physical inspections and any other analyses or
evaluations (hereafter collectively "Evaluations") that Buyer desires, Buyer also shall be
granted consent, during the Due Diligence period, to enter the Property and initiate,
conduct,and complete the Work on the Property,
3. Buyer shall indemnify, defend and hold Seller harmless against any claims, costs,
or liabilities related to or arising out of any Evaluations, Rernediation or Work that Buyer
performs during the Due Diligence Period. Buyer shall ensure that Buyer and all of its
contractors and subcontractors maintain workers compensation insurance as required by
law,
4. If, despite Buyer's reasonable efforts, Buyer has initiated the Work but riot been
able to complete the Work by the end of the Due Diligence Period, Buyer and Seller may
confer to discuss and negotiate an extension to the Due Diligence Period, which may be
reasonably necessary for the Buyer, making commercially reasonable efforts, to complete
the Work.
T Costs
--grid Fee, :
If either party breaches any terra of this Agreement,the breaching party agrees to pay the
non-breaching party all actual and reasonable attorneys'fees and other costs and expenses
incurred by the non-breaching party in enforcing this Agreement or preparing for legal or
other proceedings, whether or not,instituted, If any legal or other proceedings are
instituted, the party prevailing in any Such proceeding shall be paid all of the
aforementioned costs,expenses, and fees by the other party, and if any judgment is
secured by such prevailing party, all such costs,expenses, and fees shall be included in
such judgment. In the case of"the Seller all monetary obligations hereunder are subject to
appropriation,
U,Nt MISr—Of
Seller fnitid Buyer Initial
Page 4 of
/ a
��cst "lcar ; tams:
After closing, Brayer will need to obtain certain governmental aaathori ations,
permissions, and permits ("Approvals") in order to use the Property for its .intended use as an
educational and residential/boarding facility, The Approvals are anticipated to include but area not limited to tine following: (1) construction permit(s)„ (2) replatting of the Property to vacate
the lot lines between the two parcels; (3) rezoning of tlae Property to "Institutional"; and )
approval of a conditional use permit. Seller agrees to cooperate reasonably with Buyer in
processing applications for such Approvals, provided, however, that such cooperation shall not.
be construed as a warranty that any such Approval(s) will be granted or in ally way as a waiver
of any otherwise applicable City or Borough requirements, standards, or prohibitions,
9 ) !giver:
o delay in exercising any right or remedy shall constitute a waiver thereof, and nca waiver by Seller or Buyer of a breach of any covenant of this Agreement shall be construed as a
waiver of any preceding or succeeding breach of the same or any other covenant or condition of
this Agreement.
10. Assi nment:
This Agreement is binding on the heirs, successors, and assigns of the parties, but shall
not be voluntarily assigned by either party without: prior written consent of the other partly, which
consent shall not he unreasonably withheld, Buyer may pledge its interest in the;property, subject
to the reversionary interest,for the purpose of financing improvements of the existing structures,
ll, Conaaisicau ;
Each party represents and warrants to the either that it has not engaged the services of any
breaker„ finder„ or other person who would be entitled to any commission or fee to respect to the
subJect matter of this Agreement and each shall indemnify the other against any loss, cost,
liability, or expense incurred by the other as a result of any claim asserted by any such broker,
under„ or other person on tine basis of any brokerage or sianilar arrangement or agreement made
or alleged to have been made.
12, Notices,
No notice, consent„ approval, or other communication provided for herein or given in
connection with this Agreement shall be given, made, delivered, or served unless it is in writing
and delivered personally, sent by overnight courier, or sent by registered or certified United
States mail,postage prepaid, with return receipt requested to:
Seller: City of Seward
Seward, Alaska 99664
l: nyUa Friends of tlae Jesse Lee Home
c�cat� cal c�taAtazts�a� N f....�
Seller
nkW Buyer Initial
t'ag c 5 Get`7
16
7/2812014
P.O. Box 737
Seward,Alaska 99664
Notices, consent, approvals, and communications given by it shall be deemed delivered upon
the earlier of three days after deposit in the (Jnited States mail in the manner provided above or
immediately upon delivery to the respective addresses set forth above, if delivered personally or
sent by overnight courier.
13. Eplirle-Agjeetq!�At:
This document and its attachments contain the entire Agreement between the parties. It
may not be modified except in writing and signed by all parties,
The indemnification provisions of this Agreement shall survive the delivery of the Deed.
15 Time is of the Essence:
Time is ofthe essence of this Agreement,
16. Exclusiv rp rn rlt:
'this Agreement shall constitute an exclusive arrangement between the parties. Seller
shall not market, sell, negotiate for the sale of, or convey the Property to any other person,
provided that Buyer has not delivered notice that it will not close due to an unsatisfied condition,
17. Control
-Yenue:
This Agreement shall be governed by, construed under, and enforced in accordance with
the laws of the State of Alaska,and venue for actions between the parties arising out of or related
to this Agreement shall be in the Alaska Superior Court, Third Judicial District, Anchorage,
Alaska,
SELLER: BUYER:
1'be City of Seward Friends f the Jesse I Ho
a irten
ger s Ves; µKK
esel, Executive Director/Project
Irs
Manager 15.h-
Date:7�
ATTEST,
Seller Inittaf"'- Buyer Initial
Page 6 cif`7
17
7/28/2014
i3f(7-, C—ity—CJcr-k---—
Page 7 of 7
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19
CITY OF SEWARD,ALASKA Sponsored by: Bridges
RESOLUTION 2018-088
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
SEWARD,ALASKA, APPROVING A GRANT AGREEMENT BETWEEN
THE CITY OF SEWARD AND THE ALASKA DEPARTMENT OF
COMMERCE, COMMUNITY, AND ECONOMIC DEVELOPMENT
DIVISION OF COMMUNITY AND REGIONAL AFFAIRS FOR A
DESIGNATED LEGISLATIVE GRANT IN THE AMOUNT OF$11073,441.46
FOR HAZARDOUS MATERIAL REMOVAL, SITE REMEDIATION, AND
CONSTRUCTION OF A MEMORIAL AT THE SITE OF THE JESSE LEE
HOME
WHEREAS, the City of Seward and, the Friends of the Jesse Lee Home entered into a
Purchase and Sale Agreement, for the property identified as Lots 15A and 15B, Jesse Lee Home
Heights Subdivision Addition No.4 according to Plat 89-18 also known as the Jesse Lee Home, as
authorized by City of Seward Resolution No. 2014-059; and
WHEREAS, within that purchase and sale agreement there are certain improvements
required during a"due diligence"period which expires August 29,2019. Those improvements are:
a. Hazmat abatement(estimated at$216,000)
b. Extension of 50% of the water utilities: 270 +/- feet 8"main @ 200 per foot and 2
hydrants (estimate at &74,000 X .5 =$37,000)
C. Extension of 50%of the sewer utilities: 220+/- feet 6" main @$150 per foot, 100
+/-feet 4"main @ 125 per foot,3SSMHs @$10,000 each(estimated at$75,000 X
.5 = $37,750)
and;
WHEREAS, in the event these improvements are not completed by August 29, 2019, the
property reverts back to City ownership; and
WHEREAS, the City has been awarded a Department of Commerce, Community, and
Economic Development Grant in the amount of$1,073,441.46 to mitigate the Jesse Lee Home
structure,to remove,dispose,and abate environmental hazards remaining on the property,including
asbestos,underground fuel and/or other tanks,buildings,fencing and structures,and to respectfully
remove salvageable wood and/or property features to build a memorial to the residents and staff of
the facility; and
WHEREAS, it is in the City's intent to conduct such hazardous material removal, site
remediation,and memorial construction in the event the ownership of the property reverts back to the
City.
20
CITY OF SEWARD, ALASKA
RESOLUTION 2018-088
NCB W,THERE FOR F,BE UT RESOLVED IIV'Y]-[E CITV COUNCIL.OF ITIE(''FIT
OF SEWARD, A,LASKA that:
Section I.The City of Seward finds it advisable to have resources available in the event the
Jesse I.ee Home reverts back to City ownership,
SeefionI The 0ty of Seward fie reby authorizes the City Managerto accept the Depaxtrnent
of Commerce, Community,and Economic Developinent Grant in the amount of'$1,073,441 A6,ind
tO CXCCUte all docurnents related to the gran on behalf of the City,
Section 3. This resolution shall take effect thirty (30) days after approval,
PASSED AND APPROVED bythe ity Council of Cityof`Seward,Alaskathis (err'clay
of November, 2018,
THE crry OF SEWARD, ALASKA
David Squh- , M"IYN es II.-
AYE'S� Squires, XICCILIT-k, Tmvsley, Horn, Seese, Osenga, Lane
I
N01.11S:
A B S 11",NTr
ABSTAIN:
ATTEST:
-—----------------------------------------------------------------Brenda J. Ballou,, MMC
City C.Ierl(
(City Seat)
,ok 0C C1:1
21
Agenda Statement
Meeting Date: November 26,2018
To: Mayor Squires and Seward City Council Members
From: Jeff Bridges, Interim City Manag
Agenda Item: Resolution 2018-088: A Resol�*O�he City of
Seward, Alaska Approving a Grant Agreement
Between the City of Seward and the Alaska Department of Commerce,
Community, and Regional Affairs for a Designated Legislative Grant in the
Amount of $1,073,441.36 for Hazardous Material Removal, Site
Remediation, and Construction of a Memorial at the Site of the Jesse Lee
Home.
BACKGROUND& JUSTIFICATION:
City of Seward Resolution 2014-059 (attached)provided for the approval of a Purchase and Sale
Agreement with the Friends of the Jesse Lee Home(FJLH). FJLH intended purpose of the purchase
was to renovate and restore the building for use as an educational and residential/boarding school.
Within that purchase and sale agreement there were certain due diligence provisions which must be
accomplished by August 29, 2019 or the ownership of the property reverts back to the City. Those
due diligence provisions included hazardous material removal and water and sewer utility
extensions. This grant would provide for hazardous material removal, site remediation, and the
construction of a memorial to the residents and employees of the Jesse Lee Home in the event the
property reverts back to City ownership as provided for in the purchase and sale agreement.
INTENT: The intent of this Resolution is accept the grant.
CONSISTENCY C14ECKLIST: Where applicable, this agenda statement is consistent with the
Seward City Code,Charter,Comprehensive Plans,Land Use Plans,Strategic Plan and City Council
Rules of Procedures or Other Plans or Policies:
Yes (List Below)
This Resolution is consistent with City of Seward Resolution 2014-059.
(Also included in the packet for background purposes of City of Seward Resolutions 2008-034 and
2005-0 1.)
FISCAL NOTE: There is no fiscal note related to the acceptance of this grant. No matching funds
are required.
Approved by Finance Department:
ATTORNEY REVIEW: Yes--X-No
22
RECOMMENDATION: Authorize the City Manager to accept the Department of Commerce,
Community,and Economic Development Grant in the amount of$1,073,441.46,and to execute all
documents related to the grant on behalf of the City.
23
Sponsored by- Oates
imam CITY OF SEWARD, ALASKA
RESOLUTION 2008-034
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD,
ALASKA, AUTHORIZING THE CITY MANAGER TO ACCEPT A $1
MILLION STATE GRANT FOR THE IMMEDIATE STABILIZATION OF
THE JESSE LEE HOME AND ADMINISTERING A PHASE 11
STRUCTURAL ENGINEERING REPORT FOR THE FRIENDS OF THE
JESSE LEE HOME
WHEREAS, resolution 2005-66 recognized the Jesse Lee Home as a historical landmark
for the State of Alaska and the City of Seward, and recognized the restoration of the Jesse Lee
Horne as a City priority, and directed the city manager or his designee to support the Historic
Preservation Commission to develop relationships with private, state and federal organizations to
further pursue the preservation and restoration of the Jesse Lee Home; and
WHEREAS, resolution 2005-83 supported the use of the Jesse Lee Home as an
educational institution and directed the city manager or his designee to support the Historic
Preservation Commission to apply for a grant or grants, intended to develop a feasibility study
and continue to pursue relationships with private, state and federal organization's; and
taw WHEREAS, the City of Seward approved resolution 2006-119 recognizing the Friends
of tile Jesse Lee Home (Friends) as a statewide interest group and project partner dedicated to the
restoration of the Jesse Lee Home as a statewide leadership school; and
WHEREAS, Resolution 2006-119 directed the city manager to support the Friends in
seeking private grants and/or the funding for the Jesse Lee Home and support the Friends to
assure the success of this partnership; and
WHEREAS, in 2007, the Friends of the Jesse Lee Home secured a state grant of $1
million for the purpose of immediate stabilization of the Jesse Lee Home; and
WHEREAS, the State of Alaska has appropriated grant funds to the Department of
Natural Resources totaling$1 million; and
WHEREAS, the Friends have requested the City of Seward advertise, award and
administer a contract to secure services from a professional to prepare the phase 11 engineering
report; and
bum
24
CITY OF SEWARD, ALASKA
RESOLUTION 2008-034
WHEREAS, this report will recommend appropriate strategies for the rehabilitation,
development and management of the Home in a manner that recognized the Jesse Lee Home's
historical significance; and
WHERE AS,, the report will help outline the most immediate structural needs, prioritize
the highest priorities and provide recommendations for immediate stabilization to the Friends of
the Jesse Lee Home and the City of Seward; and
WHEREAS, the remaining funding will be used to stabilize the Jesse Lee Home until
additional funds are secured,
NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE
CITY OF SEWARD, ALASKA, that:
Section 1. The city manager is authorized to accept a grant from the State of Alaska.
Section 2, The city manager is authorized to accept grant funds totaling $1 million to the
Jesse Lee Home Rehabilitation Fund account no, 271-2719-4680-0200,
Section 3. The city manager is authorized to execute an RFP for a Phase H structures
report to help outline the most immediate structural needs, prioritize the highest priorities and
provide recommendations for immediate stabilization for the Friends of the Jesse Lee Home.
Section 4. This resolution shall take effect immediately upon its adoption,
PASSED AND APPROVED by the City Council of the City of Seward, Alaska, this
28th day of April, 2008.
'THE CITY OF SEWARD,ALASKA
- Y4-112 Q
Clark Corbridge,Mayly
25
CoTbTlaae
' w
e' Lewis
r
pp
26
Council Agenda Statement
Meeting Date: April 28, 2008
Through: Phillip Oates, City Manager
Agenda Item: Authorizing the city manager to accept a $1 Million grant from the Alaska
Department of Natural Resources and authorizing the city manager to execute
an RFP for a Phase 11 structures report to help outline the most immediate
structural needs prioritize the highest priorities and provide recommendations
for immediate stabilization I*or the Friends of the Jesse Lee Home.
BACKGROUND & JUSTIFICATION:
The Friends of the Jesse Lee Home (Friends)are a statewide special interest group dedicated to
the preservation of the Jesse Lee Home for a worthy sustainable end use. The Friends have
embraced a leadership charter school as their preferred alternative use for the facility, and are
actively lobbying for funds and seeking grants to fulfill their plans.
The Jesse Lee Home buildings are national treasures. They are listed individually on the National
Register of Historic Places. The National Trust for Historic Preservation found the buildings,
their history and the proposed use to be compelling enough to award a nationally competitive pre-
development grant. The Friends secured a$1 Million grant from the State of Alaska in 2007 and
are expecting another$1 Million grant from the State of Alaska in 2008. The Friends have an
active capital campaign where they are raising additional private and corporate funds; in addition
to seeking grants and historic preservation tax credits to complete the end goal of fully restoring
the property.
The Friends propose to restore the facilities to their best and highest use,as a residential,
statewide leadership charter school for high-school aged youth. Students from across the state
will come to stay at the Jesse Lee Home to study with local day students in Alaska's only
residential charter school, learning through competency-based educational techniques about
leadership, democracy, sciences, mathematics, politics, technology and the humanities at the same
time as they learn about what makes Alaska work: hands-on skills such as plumbing,welding,
computer repair, home-building and healthcare.
This leadership charter school will be a state of the art, innovative education model customized
for our state's greatest needs. The Jesse Lee Home leadership charter school will provide a
critical component of Alaska's education ensuring a secure future for our state. This charter
school will not only instill leadership skills, it will also instill a sense of experiential learning and
democratic education to specifically foster the future leaders of the State of Alaska.
The goal is that upon graduation from the Jesse Lee program, these students will be
technologically fluent, self-motivated, committed to lifelong learning and have a strong sense of
responsibility. They will then go back home and share their experiences with their communities.
It is hoped that students will foster lifelong relationships with their Jesse Lee Home peers. They
will grow up to be leaders in their communities, able to address complex issues capably and
empathetically across the traditional divides of race, gender and class.
Economic Benefits to the Community:
'The Jesse Lee Home is physically located in Seward, Alaska. The Friends ofthe Jesse Lee Home
(Friends)expect that students from the ten rural and urban school districts using the Re-Inventing
Schools Coalition(RISC)approach will be interested in semester-long, cross-district cohorts, The
Friends believe that students from across the state will compete for regional corporation
scholarships to cover their room and board costs for semester or year-long stays. The Friends also
believe that the home-school population of Seward is a potential day school cohort and is
collaborating with the public high school to create a partnership effort in conjunction with the
Kenai Peninsula school district.
Charter schools are affecting community economic development(CED) in three major ways.
First,there is growing evidence that an increasing number of community-based organizations are
starting charter schools to expand their current services. Second, as neighborhood schools
improve, families are less likely to move once they have children. Finally,with respect to real
estate development,charter schools often purchase or lease vacant,dilapidated buildings, long
viewed as eyesores, and renovate them into state-of-the-art new schools and even community
centers.
Charter schools have a direct impact on community development as they help turn rundown,
unused structures into renovated school buildings. Charter schools are generally welcome to
communities and are positive additions to their neighborhoods. The Jesse Lee home is a
cherished landmark and a fully restored facility will allow the community to treasure their historic
landmark. Furthermore, the Jesse Lee Home will become the gem of the state, where Alaskan
leaders teach students to become the future leaders of our great state.
City of Seward Historical Support:
In 2005,Resolution 2005-66 recognized the Jesse Lee Home as a historical landmark for the State of
Alaska and the City of Seward, and recognized the restoration of the Jesse Lee Home as a City
priority, and directed the city manager or his designee to support the Historic Preservation
Commission to develop relationships with private, state and federal organizations to further pursue
the preservation and restoration of the Jesse Lee Home. Again, in 2005, Resolution 2005-83
supported the use of the Jesse Lee Home as an educational institution and directed the city manager or
his designee to support the Historic Preservation Commission to apply for a grant or grants intended
to develop a feasibility study and continue to pursue relationships with private, state and federal
organizations.
In 2006, the City of Seward approved resolution 2006-119 recognizing the Friends,of the Jesse Lee
Home (Friends) as a statewide interest group and project partner dedicated to the restoration of the
Jesse Lee Home as a statewide leadership school. Again,in 2006,Resolution 2006-119 directed the
city manager to support the Friends in seeking private grants and/or the funding for the Jesse Lee
Home and support the Friends to assure the success of this partnership.
In 2007, the Friends of the Jesse Lee Home secured a state grant of$I Million for the purpose of
immediate stabilizing of the Jesse Lee Home. The State of Alaska has appropriated grant funds to the,
Department of Natural Resources totaling$1 Million.
The Friends of the Jesse Lee Home have created bylaws and articles ofineorporation to create a non-
profit,501(c)3. This status is still pending state approval. Until they receive this status, the Friends
are not a legal entity and are not able to administer the$1 Million for a structures report or immediate
I)
�W �.11 01,.
stabilization. Due to the fragile state of the Jesse Lee Home structures,the Friends are concerned that
time is of the essence. The Friends would like to update the structures report that was administered
by the City of Seward in 2003 to obtain a professional recommendation for the immediate
stabilization of the structures and have asked the City of Seward to, assist them in this eflbrt. The
Friends are able to provide administrative assistance to help facilitate the request for proposal and the
City will not incur any costs other than some in-kind staff time.
The Friends have requested the City of Seward advertise,award and administer a contract to secure
services, from a professional to prepare the phase 11 engineering report. The $I Million grant will
cover all costs to the City. Attached is a Friends of the Jesse Lee Home Background summary report
for additional information about the project.
CONSISTENCY CHECKLIST:
Where applicable,this resolution is consistent with the Seward City Code, Charter, Comprehensive
Plans, Land Use Plans, Strategic Plan and City Council Rules of Procedures.
FISCAL NOTE: There is no cost to the City of extending this contract other than some in-kind
staff assistance.
RECOMMENDATION: Seward City Council approve Resolution 2008-ai authorizing the
city manager to accept a$1 Million grant from the Alaska Department of Natural Resources
and authorizing the city manager to execute an RFP for a Phase R structures report to help outline
the most immediate structural needs,prioritize the highest priorities and provide recommendations
for immediate stabilization for the Friends of the Jesse Lee Home.
-, 'I
4�t, ')