HomeMy WebLinkAboutRes2020-056 Sponsored by: Meszaros
CITY OF SEWARD,ALASKA
RESOLUTION 2020-056
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD,
ALASKA, AUTHORIZING THE SEWARD ASSOCIATION FOR THE
ADVANCEMENT OF MARINE SCIENCE (SAAMS) TO ENCUMBER A
LIEN ON THE ALASKA SEALIFE CENTER (ASLC) PROPERTY
SUPPORTING A SMALL BUSINESS ADMINISTRATION (SBA)
ECONOMIC INJURY DISASTER LOAN
WHEREAS,the City of Seward, the State of Alaska, and the Alaska Department of Fish
and Game signed a Cooperative Agreement for the Construction, Operation and Maintenance of
the Research Infrastructure Improvements and rehabilitation components of the Alaska SeaLife
Center (hereinafter referred to as the "Facility") at the Alaska SeaLife Center ("ASLC"), in
Seward,Alaska executed in April 1995, as amended(the "Cooperative Agreement"); and
WHEREAS, the Facility is described in the Institute of Marine Science Infrastructure
Improvements Exxon Valdez Oil Spill (hereinafter referred to as "EVOS") Trustee Council
(hereinafter referred to as the "Trustee Council") Project #94199, Project Description and
Supplemental Materials, dated September 26, 1994, Section 6, Schematic Design; and
WHEREAS, the City of Seward ("City') and the Seward Association for the
Advancement of Marine Science ("SAAMS") entered into an Third Amended and Restated
Agreement ("The Agreement") on March 28, 2017 via Resolution 2017-015 where the City has
an obligation under the Cooperative Agreement to own, operate, and maintain the ASLC for the
practical life of the facility at Tract 2A, Waterfront Tracts and Adjacent Tidelands; and
WHEREAS, SAAMS operates the ASLC year-round and provides full-time employment
in the City; and
WHEREAS,job creation,job retention, and promotion of marine research and economic
development are important to residents of Seward; and
WHEREAS, economic stability of operation of the ASLC is necessary to avoid requiring
the City to assume operation of the facility; and
WHEREAS, due to the global pandemic outbreak of COVID-19, the ASLC was closed
from March 16, 2020 to May 14, 2020 with paid spring/summer attendance running at 25% of
normal paid attendance, and the ASLC relies on its increase in visitor income during the spring
and summer seasons to survive the slower winter month attendance; and
WHEREAS, the ASLC's summer visitor gate revenues are projected to remain at
approximately 25% of normal, given State of Alaska Health Mandates restricting out of state
travel (after COVID-19 test) optional social distancing, the Centers for Disease Control's no sail
CITY OF SEWARD,ALASKA
RESOLUTION 2020-056
order eliminating summer cruise ships, and Canada's ban on cruise ships through November
2020; and
WHEREAS, in order to maintain essential animal care and facility operations and
repairs, ASLC has sought and received various lending opportunities for partial interim support;
and
WHEREAS, during this unexpected economic downturn related to the pandemic spread
of COVID-19, the Alaska SeaLife Center applied for and received the Small Business
Administration ("SBA") Economic Injury Disaster Loan ("EIDL") #3600294296 in the amount
of$150,000 that must be closed before July 25,2020; and
WHEREAS, according to Section 7.02 of the Bylaws for the Seward Association for the
Advancement of Marine Science, no loans shall be contracted on behalf of the corporation and
no evidence of indebtedness shall be issued in its name unless authorized by a resolution of
SAAMS Board of Directors,which has occurred for this SBA EIDL loan; and
WHEREAS, according to Section 10.1 Permitted Encumbrances, of the"Third Amended
Agreement" with the City of Seward, during this Agreement, "SAAMS shall not, without the
prior written consent of the City, which consent shall not be unreasonably withheld, grant a
security interest in (i) all goods, inventory, equipment, and fixtures used or acquired for use on
the Site and Improvements; (ii) all accounts,related to the Site or Improvements,owned as of the
effective dates of the Prior Agreements or at any time subsequently acquired by SAAMS; (iii) all
general intangibles, related to the Site or Improvements, owned as of the effective date of the
Prior Agreements or at any time subsequently acquired by SAAMS; and(iv) all proceeds of such
goods, inventory, equipment, and fixtures, accounts, and general intangibles".
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE
CITY OF SEWARD,ALASKA that:
Section 1. The Seward City Council hereby authorizes consent for lien capability to be
granted to the Seward Association for the Advancement of Marine Science (SAAMS) on the
Alaska SeaLife Center(ASLC)facility for this specific instance.
Section 2. This resolution shall take effect immediately upon adoption.
PASSED AND APPROVED by the City Council of the City of Seward, Alaska, this
15th day of July, 2020.
•
CITY OF SEWARD, ALASKA
111 RESOLUTION 2020-056
, T iF1 W. B. • . •
'isty Terry, ayor
AYES: Seese, Butts, Crites, Baclaan,McClure,Terry
NOES: None
ABSENT: Osenga
ABSTAIN: None
ATTEST:
bityfr%
Brenda J. Ballou, MC
City Clerk
(City Seal)•��•�...�...,,,
• SEAL
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Agenda Statement
Meeting Date: July 15, 2020
To: City Council
From: City Manager,Scott Meszaros
Agenda Item: Resolution of the City Council of the City of Seward, Alaska, Authorizing
the Seward Association for the Advancement of Marine Science
("SAAMS") to Encumber A Lien on the Alaska Sealife Center Property
Supporting an SBA Economic Injury Disaster Loan
BACKGROUND &JUSTIFICATION:
The City of Seward and SAAMS entered into a Third Amended and Restated Agreement on
March 28, 2017. This agreement explains the City has an obligation under the Cooperative
Agreement to own,operate, and maintain the ASLC.
Due to the COVID-19 pandemic, the ASLC was closed from March 16, 2020 - May 14,2020
with paid spring and summer attendance was down 25%given State of Alaska Health Mandates
that restrict out-of-state travel (after COVID-19 test); social distancing; no cruise ship entry; and
also Canada's ban on cruise ships through November 2020.
To maintain essential animal care and facility operations and repairs, ASLC has received various
lending opportunities for partial interim support and also received the Small Business
Administration ("SBA")Economic Disaster Loan ("EIDL")#3600294296 of an amount of
$150,000 that must be closed before July 25, 2020.
If funding requirements are not met, a lien may be placed on the ASLC property, which requires
authorization by the City.
INTENT:
For SAAMS to put a lien on the ASLC property at Tract 2a,Waterfront Tracts And Adjacent
Tidelands.
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CONSISTENCY CHECKLIST: Yes No N/A
1 Comprehensive Plan X
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2 Strategic Plan I I X
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3. Other(list: X
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ATTORNEY REVIEW: Attorney recommends council approval, but did not review this
document
FISCAL NOTE:
Approved by Finance Department: _—______________________________________w
RECOMMENDATION:
Resolution 2020-056
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