HomeMy WebLinkAboutRes2021-082 CITY OF SEWARD,ALASKA
RESOLUTION 2021-082 Sponsored by: Bower
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD,
ALASKA, ACCEPTING THE CITY MANAGER'S RECOMMENDATION
TO APPROVE THE DEVELOPER INCENTIVE AND REIMBURSEMENT
PROGRAM APPLICATION RECEIVED FOR THE GATEWAY
SUBDIVISION,AND APPROVING REIMBURSEMENT OF 50% OF THE
COSTS RELATED TO THE INSTALLATION OF PUBLIC UTILITIES IN
THE AMOUNT OF$16,460.43 FOR EACH OF THE THIRTEEN PARCELS,
FOR A TOTAL AMOUNT OF$213,985.59
WHEREAS, the purpose of the Developer Incentive and Reimbursement Program is to
reimburse a developer for up to 50 percent of the costs of extending public utilities to undeveloped
property, assessed in a special improvement district, in order to incentivize installation of public
utilities and property development within city boundaries; and
WHEREAS, the City Council adopted Resolution 2020-006, determined it is in the
public's interest, and necessary,to proceed with the proposed utility improvement district for, and
benefiting,Lots 1,2,3,and 4,Block 3,and Lots 38,39,40,41,42,43,and 44,Block 2,of Gateway
Subdivision, in an amount not to exceed $337,375 and appropriating funds; and
WHEREAS,Resolution 2020-006 also established the special improvement district knows
as the Zimmerman Utility Improvement District and appropriated the funds from the electric and
general funds; and
WHEREAS, Resolution 2020-006 authorized the expenditure of funds for water, sewer,
and electrical improvements and paid the invoices submitted by Mr. Zimmerman; and
WHEREAS, the City Council adopted Resolution 2021-016, confirming the special
assessment roll for the Gateway Subdivision Improvement District and providing for the levy,
payment terms, and penalties of the special assessment district, and appropriating funds; and
WHEREAS,Resolution 2021-016 provided for an additional appropriation from the water
and wastewater funds; and
WHEREAS,the total project cost is $427,971.09 and was assessed to the affected parcels
by Resolution 2021-016; and
WHEREAS, the developer submitted an application for reimbursement under the
Developer Incentive and Reimbursement Program; and
WHEREAS, the developer met all code requirements set forth in Seward City Code
Chapter 5.22; and
CITY OF SEWARD,ALASKA
RESOLUTION 2021-082
WHEREAS,the City Manager recommends the developer be reimbursed 50%of the costs
related to installation of public utilities; and
WHEREAS,the total amount of the reimbursement is$213,985.50 and will be in the form
of a credit to each assessed parcel; and
WHEREAS, the parcels will be reassessed and recorded with the reduced assessment
amounts.
NOW,THEREFORE,BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF SEWARD,ALASKA that:
Section 1. The City Council hereby accepts the City Manager's recommendation to
approve the Developer Incentive and Reimbursement Program application received for the
Gateway Subdivision.
Section 2.The City Council hereby approves the reimbursement of 50%of the costs related to
the installation of public utilities in the amount of$16,460.43 for each of the thirteen(13)parcels, for
a total amount of$213,985.59.
Section 3. The City of Seward paid all invoices on behalf of the developer, therefore,
reimbursement will be in the form of a credit assessed to each parcel; as each lot is sold, the
assessment will be collected at closing and remitted to the City of Seward.
Section 4. If parcels are sold prior to adoption of this resolution and the action to reassess
and record the assessments, Mr. Zimmerman will receive $16,460.43 in the form of a
reimbursement check from the city for each parcel sold.
Section 5.Lots not sold by November 1,2021 are subject to the repayment terms described
in Resolution 2021-016.
Section 6. This resolution shall take effect immediately upon adoption.
PASSED AND APPROVED by the City Council of the City of Seward, Alaska, this 26th
day of July, 2021.
TWAKA
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CITY OF SEWARD, ALASKA
LRESOLUTION 2021-082
AYES: Osenga, Seese, McClure, Casagranda, DeMoss, Baclaan, Terry
NOES: None
ABSENT: None
ABSTAIN: None
ATTEST:
Brenda J. Ballou, MMC
City Clerk
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City Council Agenda Statement
Meeting Date: July 26, 2021
To: City Council
From: Janette Bower, City Manager
Agenda Item: Accepting the City Manager's recommendation to approve the Developer
Incentive and Reimbursement Program application received for the
Gateway Subdivision, and approving reimbursement of 50% of the costs
related to the installation of public utilities in the amount of $16,460.43
for each of the thirteen parcels, for a total amount of $213,985.59
Background and justification:
The Developer Incentive and Reimbursement Program is intended to reimburse a developer for up to
50 percent of the costs of extending public utilities to undeveloped property, assessed in a special
improvement district,in order to incentivize installation ofpublic utilities and property development
within city boundaries.
Resolution 2020-006
On January 27,2020,the City Council adopted Resolution 2020-006.The resolution"determined it
is in the public's interest, and necessary,to proceed with the proposed utility improvement district
for,and benefiting, Lots 1,2,3,and 4, Block 3, and Lots 38,39,40,41,42,43,and 44,Block 2,of
Gateway Subdivision, in an amount not to exceed $337,375 and appropriating funds".
The resolution also established the special improvement district knows as the Zimmerman Utility
Improvement District and appropriated the funds from:
Electric Fund 15000-0-3710-0-80070 Chugach Electric Association Credit $ 281,043.46
General Fund 01000-0-3710-0-80070 $ 56,331.54
Total: $ 337,375.00
The resolution authorized the expenditure of funds for water, sewer,and electrical improvements.
Invoices were submitted by Mr. Zimmerman to the city for payment.
Resolution 2021-016
On January 25,2021,the City Council adopted Resolution 2021-016.The resolution confirmed the
special assessment roll for the Gateway Subdivision Improvement District and provided for the levy,
payment terms, and penalties of the special assessment district,and appropriated funds.
The actual costs exceeded the previously appropriated amount. An additional appropriation was
made from the following funds:
Water Fund 17000-0-3710-0-80070 $ 45,298.04
Wastewater Fund 18000-0-3710-0-80070 $ 452298.04
Total: $ 90,596.08
The resolution created the Special Assessment as follows and assessed 100%of the project cost to
the Developer:
Parcels Assessed
Amount
Gateway Subdivision,No. 1 Lot 44, Blk 2 $ 32,920.85
Gatewa Subdivision No. 1 Lot 43 Blk 2 $ 32 920.85
Gateway Subdivision,No. 1, Lot 42, BIk 2 $ 32,920.85
Gateway Subdivision No. 1 Lot 41 Blk 2 $ 32 920.85
Gateway Subdivision,No. 1, Lot 40, Blk 2 $ 32,920.85
Gateway Subdivision No. 1 Lot 39 Blk 2 $ 32 920.85
Gateway Subdivision No. 1 Lot 9 BIk 3 $ 32 920.85
Gateway Subdivision,No. 1 Lot 1, BIk 3 $ 32,920.85
Gateway Subdivision No. 1 Lot 2 BIk 3 $ 32 920.85
Gateway Subdivision,No. 1 Lot 8, Blk 4 $ 32,920.86
Gatewa Subdivision No. 1 Lot 9 Blk 4 $ 32 920.86
Gateway Subdivision,No. 1 Lot 10, BIk 4 $ 32,920.86
Gateway Subdivision No. 1 Lot 11 BIk 4 $ 32 920.86
Total: $ 427 971.09
The resolution also created a repayment plan for the Developer:
Annual Payment Date: November I, 2021
Rate of Interest: Deferred or installment payments of special assessments shall bear
interested at an annualized rate of the lessor of:
1. The prime rate plus 4°', as the prime rate in published in the
Wall Street Journal's Consumer Money Rates for the date
the resolution confirming the special assessment roll is
adopted; or
2. 15 percent(15%).
Maximum Annual Installments: 10
Penalty for Late Payments: 10°o
Invoices continued to be submitted by Mr. Zimmerman. The City paid all invoices in full.
On June 14,2021,Mr.Phil Zimmerman submitted an application for reimbursement for his project.
As required by Seward Municipal Code Chapter 5.22.030,subsection(c),this written memorandum
is provided as a statement recommending approval of the application and the approved
reimbursement amount.
Based on the code language,I recommend Mr.Zimmerman be reimbursed 50%of the costs related
to installation of public utilities. Because the City paid all invoices, reimbursement will be in the
form of a credit to each assessed parcel. The parcels will be reassessed and recorded with the
reduced assessment amounts.
Project cost—all invoices vaid by the City and assessed to theparcels: $ 427,971.09
Reduced assessment total: $ 213 985.59
Amount owed to the City through the assessmentprocess: $ 213,985.50
As each lot is sold,the assessment will be collected at closing and remitted to the City.Lots not sold
by November 1, 2021, are subject to the above repayment terms.
Parcel and Reassessment Information:
Parcels Assessed Credited Amount New Assessed
Amount Total
Gateway Subdivision,No. 1,Lot 44,Blk 2 $ 32,920.85 $ (16,460.43) $ 16,460.42
Gateway Subdivision,No. 1,Lot43,Blk 2 $ 32,920.85 $ (16,460.43) $ 16,460.42
Gateway Subdivision,No. 1,Lot42, Blk 2 $ 32,920.85 $ (16,460.43) $ 16,460.42
GalewaX Subdivision,No. 1,Lot 41,Blk 2 $ 32,920.85 $ (16,460,43) $ 16,460.42
Gateway Subdivision,No. 1,Lot 40,Blk 2 $ 32,920.85 $ (16,460.43) $ 16,460.42
Gateway Subdivision,No. 1,Lot 39,Blk 2 $ 32,920.85 $ (16,460.43) $ 16,460.42
Gateway Subdivision,No. 1 Lot 9,Blk 3 $ 32,920.85 $ (16,460.43) $ 16,460.42
Gateway Subdivision, No. l Lot 1, Blk 3 $ 32,920.85 $ (16,460.43) $ 16,460.42
Gateway Subdivision, No. I Lot 2, Blk 3 $ 32,920.85 $ (16,460.41) $ 16,460.42
Gateway Subdivision,No. I Lot 8,Blk 4 $ 32,920.86 $ (16,460,43) $ 16,460.43
Gateway Subdivision, No. I Lot 9, Blk 4 $ 32,920.86 $ (16,460.43) $ 16,460.43
Gateway Subdivision, No. 1 Lot 10, Blk 4 $ 32,920.86 $ (16,460.43) $ 16,460.43
Gateway Subdivision,No. I Lot 11, Blk 4 $ 32,920.86 $ (16,460.43) $ 16,460.43
Total: $ 427,971.09 $ (213,985.59) $ 213,985.50
Please note that Mr. Zimmerman indicated two parcels are in the process of being sold and the
assessments will be paid in full for the parcels.If parcels sell prior to council action and the action to
reassess and record the assessments, Mr. Zimmerman will receive $16,460.43 in the form of a
reimbursement check from the city for each parcel sold.
My decision is based on the following
•- Seward Municipal Code 5,22.030, subsection (a) - Mr. Zimmerman completed and filed the
required application for reimbursement.
r Seward Municipal Code 5.22.030, subsection (b)-- the application is complete and filing fee
paid in full.
�- Seward Municipal Code 5.22.030, subsection (c) the Planning and Zoning Commission
reviewed the application and found the applicant meets for the requirement for reimbursement.
Seward Municipal Code 5.22.030,subsection(e) the required statement regarding properties
owned within the special improvement district was provided,an itemized report concerning the
actual direct cost was provided,and a statement regarding the purpose and use of the property
promoting public interest and compliance with the comprehensive plan was provided.
r Seward Municipal Code 5.22.030, subsection (h) the extension has been completed.
Intent:
To complete the process required by Seward Municipal Code Chapter 5.22 which provides for the
Developer Incentive and Reimbursement Program.
Consistent checklist: Yes No NIA
L Comprehensive Plan: 3.2.1., 3.2.1.2 ✓
2 Strategic Plan: Page 9 Promote Residential and Commercial Development
inside the Cit
3. Other: ✓
Fiscal note:
Funding is to: 800071-0000-4700 Developer Incentive and Reimbursement Fund
Current Balance: $ 800,000.00
Resolution 2021-058 - $300,000
Resolution 2021-071 - $500,000
Zimmerman Reimbursement(when all lots are sold): _$ 213,985.59_
To $ 1,013,985.59
Finance Department approval:
Attorney Review:
Yes ✓� No FINot applicable
Recommendation
City Council approval of Resolution 2021-082, Accepting the City Manager's recommendation
to approve the Developer Incentive and Reimbursement Program application received for the
Gateway Subdivision, and approving reimbursement of 50% of the costs related to the
installation of public utilities in the amount of$16,460.43 for each of the thirteen parcels, for a
total amount of$213,985.59.