HomeMy WebLinkAboutRes1981-009
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CITY OF SEWARD, ALASKA
RESOLUTION NO. 31-9
A RESOLUTION OF THE CITY OF SEWARD, ALASKA,
DECLARING THAT AN APPRAISAL AND PUBLIC BID
PROCEDURE FOR THE DISPOSITION OF CERTAIN
INTERESTS IN LAND IS INAPPROPRIATE AND NOT
IN THE BEST INTEREST OF THE CITY OF SEWARD.
WHEREAS, for the past several years the City of Seward has
been attempting to attract industrial development to the City of
Seward in order to create jobs and stimulate the economy, and
WHEREAS, the City of Seward has undertaken to construct on
Resurrection Bay, a Marine Industrial Terminal, and
WHEREAS, the potential exists for the development of a
world-class coal facility for the transloading and exporting of
coal, and
WHEREAS, the city of Seward has solicited various proposals
from local, national and international firms but only one proposal
has demonstrated substantial economic feasibility and is supported
by a substantial corporation with an international reputation and
expertise in the construction and operation of coal exporting
facilities, and
,
~~REAS, the City is concerned that any coal exporting
facility to be constructed on Resurrection Bay adhere to the
highest standards of safety and the highest standard of environ-
mental protection, and
WHEREAS, Torkelson-Kellogg, Inc. a Wheelabrator-Frye company
has proposed to construct on land adjacent to the Seward Marine
Industrial Terminal a coal exporting and transshipping facility
of a world-class scale capable of exporting at least five million
(5,000,000) tons of coal per year, and
WHEREAS, Torkelson-Kellogg, Inc. has proposed to lease from
the City of Seward certain lands adjacent to the Marine Industrial
Terminal more generally described as:
A tract of land located in fractional Sect.
13, TlS, RIW, and fractional Sect. 18, TIS,
R1E, Seward Meridian, Third Judicial District
Alaska, described as the South 1150.00 feet
of U.S. Survey 4828 and more particularly des-
cribed as follows:
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Beginning at corner No.5 of said U.S. Survey
4828, which is the true point of beginning;
thence S 89025'47"W a distance of 3681.48
feet along the South boundary to corner No. 5
of said survay; thence along the original
meander N 18 07'59"W a distance of 813.12
feet to an original meander cooner~ thence
along an original meander N 36 54'01"E a
distance of 472.21 feet to a point; thence N
89 25'4711E a distance of 3636.58 feet to a
point of intersection of the East boundary of
U.S. Survey ~828; thence along said East
boundary S 0 43'0911E a distance of 1150.00
feet to the true point of beginning.
This tract includes 100.21 acres, more or
less.
This tract shall include two right-of-way
easements as follows:
The South 100 feet of said tract shall be
retained by the owner as a permanent access
easement; and the dedicated public access
right-of-way for the Nash Road extension.
Bearings and distances are grid based on
geographic position, Alaska zone four.
to Torkelson-Kellogg, Inc. for the purpose of establishing a coal
exporting facility which will be of substantial benefit to the
City because it will create jobs and attract commerce, and
WHEREAS, under the terms of the proposed lease to Torkelson-
Kellogg, Inc. the land will be leased to Torkelson-Kellogg, Inc..
for an initial term during which time Torkelson-Kellogg, Inc.
will construct an initial coal facility capable of shipping at
least one million (1,000,000) tons per year, and
WHEREAS, in constructing said facilities, Torkelson-Kellogg,
Inc. will greatly stimulate the economy of the City of Seward,
provide jobs, and demonstrate the economic feasibility of major
shipments of coal from Alaska in general and Seward in particular,
and
WHEREAS, under the terms of the proposed lease to Torkelson-
Kellogg, Inc., it will undertake to construct a world-class coal
exporting facility on the leased property within eight (8) years
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,
of the completion of the initial facility, the construction of
which will provide jobs for citizens in the area and stimulate
the economy, and
WHEREAS, Torkelson-Kellogg, Inc. will provide the necessary
rolling stock to transport coal within Alaska to Seward, and
WHEREAS, subsequent to completion of the initial facility
and before construction of the world-class facility Torkelson
Kellogg, Inc. will ~ay the appraised fair market value rental of
the leased land at ~ts highest and best use, and
WHEREAS, ten (10) years subsequent to the construction of a
world-class facility and after shipments of coal have begun
Torkelson-Kellogg, Inc. will pay the appraised fair market value
rental of the leased ,land, as actually utilized by Torkelson-
Kellogg, Inc., and
WHEREAS, in addition to said lease payments, under the
proposed lease to Torkelson-Kellogg, Inc. the city of Seward will
receive as additional rental payments between one and two percent
of the value of coal shipped from the world-class coal exporting
facilities.
NOW, THEREFORE, BE IT RESOLVED by the city council for the
city of Seward, Alaska that:
section 1. The City of Seward hereby determines that a
dispos~t~on of the above-described real property by way of sealed
bid not be in the public interest for the reasons cited above and
in accordance with the Seward Code, section 2-92, the city Manager
is authorized to negotiate a disposition of the above-described
real property by way of lease to Torkelson-Kellogg, Inc. subject
to final approval by the city Council.
Section 2. The Cit~ of Seward hereby determines that an
appra~sal pr~or to the d~sposition of the above-described real
property would not serve the public interest and for the reasons
set forth herein and in accordance with Seward Code section 2-87
an appraisal is deteremined not to be in the public interest and
that the public interest is adequately protected by the terms of
the proposed disposal.
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PASSED AND APPROVED BY THE CITY COUNCIL OF THE CITY OF
SEWARD, ALASKA, this 11th day of May , 1981.
1-::: 0 j /(~
Mctyof{t ~
ATTEST:
City Clerk
CHC
Swartz, Hugli
Ayes: Campbell, Cripps, O'Brien, Soriano
Noes: None
Absent: CillcHl'ie
Not Voting:
APPROVED AS TO FORM:
HUGHES, THORSNESS, GANTZ
POWELL & BRUNDIN
By:
cz;~
Fred B. ArVidson