Loading...
HomeMy WebLinkAboutRes2022-122 CRRC Sponsored by: Bower Public Hearing: December 12, 2022 CITY OF SEWARD,ALASKA RESOLUTION 2022-122 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, AUTHORIZING THE CITY MANAGER TO ENTER INTO AND EXECUTE THE PURCHASE AND SALE AGREEMENT AND RELATED DOCUMENTS WITH CHUGACH REGIONAL RESOURCES COMMISSION (CRRC) FOR THE SALE OF 1.52 ACRES OF LAND AND THE RELATED IMPROVEMENTS AND FIXTURES, PHYSICAL ADDRESS 101 RAILWAY AVENUE, PARCEL 14920016,IN THE AMOUNT OF$500,000 WHEREAS, the Alutiiq Pride Marine Institute (APMI) facility located at 101 Railway Avenue is currently owned by the City of Seward and has been leased to various entities since 1970; and WHEREAS, the facility, itself, was constructed by the Alaska Department of Fish and Game(ADF&G)using funding from the Exxon Valdez Oil Spill (EVOS) settlement; and WHEREAS, no City funds were used in the construction of the improvements on the parcel; and WHEREAS, in 2004, ADF&G transferred ownership, at no cost, to the City of Seward; and WHEREAS, the APMI facility has been managed, maintained, and operated by the Chugach Regional Resources Commission (CRRC), or Qutekcak Native Tribe (one of CRRC's constituent tribes) for over 25 years, and is currently leased to CRRC through 2069, with an option for CRRC to renew for an additional 25 years; and WHEREAS, CRRC's operation of the APMI has provided local jobs and has made Seward a hub for the natural resource management activities of the Tribal communities of the Chugach region, and APMI's shellfish aquaculture activities contribute to the health of the surrounding marine ecosystems, which increases economic industry and opportunity for Seward and its residents; and WHEREAS,ownership of the parcel and facility will allow CRRC to expand the footprint and operations in the coming years and bring in additional economic, scientific, and cultural opportunities to Seward; and WHEREAS,the Municipal Land Plan as approved by City Council on October 24, 2022 via Resolution 2022-107 recommends that the City of Seward sell this parcel to CRRC; and CITY OF SEWARD, ALASKA RESOLUTION 2022-122 WHEREAS,fair market value as determined by an appraisal found the value of the land to be $500,000. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SEWARD,ALASKA that: Section 1. The Seward City Council finds it is in the public's interest to enter into a purchase and sale agreement with the Chugach Regional Resources Commission by sole source negotiation, pursuant to Seward City Code 7.05.120 and 7.05.150, and the essential terms and conditions in the attached Purchase and Sale Agreement. Section 2. The attached Purchase and Sale Agreement is hereby approved and the City Manager is hereby authorized to execute the Purchase and Sale Agreement in substantial form as attached hereto,and to make such corrections and execute related documents as may be necessary to fulfill the intent of this resolution on behalf of the City of Seward. Section 3. Proceeds from this sale will be appropriated to the Capital Acquisition Fund account no. 80010-0000-4610. Section 4. This resolution shall take effect thirty(30)days upon approval. PASSED AND APPROVED by the City Council of the City of Seward, Alaska, this 12th day of December, 2022. THE CITY OF SEWARD,ALASKA Sue McClure,Mayor AYES: Osenga, Wells,Finch, Barnwell, Calhoon, McClure NOES: None ABSENT: DeMoss ABSTAIN: None se��ruttttt�� °o°A OF SEQ'i,, ATTEST: ,•'O���opP®..s��0,: • 1/4 FOs w , . SEAL • E • renda J. Ballo MC • e City Clerk .........�' �.$ (City Seal) •, OF AN-1;0'' °Btttttaslits" City Council Agenda Statement Meeting Date: December 12, 2022 ► To: City Council From: Janette Bower, City Manager Agenda Item: Resolution 2022-122: Authorizing the City Manager to Enter into and Execute the Purchase and Sale Agreement and Related Documents with Chugach Regional Resource Commission (CRRC) for the Sale of 1.52 Acres of Land and the Related Improvements, Physical Address 101 Railway Avenue, Parcel 14920016, in the Amount of $500,000 Background and justification: The Alutiiq Pride Marine Institute (APMI) facility located at 101 Railway Avenue is currently owned by the City of Seward and has been leased to various entities since 1970. The facility itself was constructed by the Alaska Department of Fish and Game (ADF&G), using funding from the Exxon Valdez Oil Spill (EVOS) settlement. As such, no City funds were used in the construction of the improvements on the parcel. Because EVOS funding was utilized, the Alaska Department of Fish and Game was required to ensure the facility's continued use for mariculture operation. In 2004, ADF&G transferred ownership, at no cost, to the City of Seward. CRRC has continued to operate the facility in a manner that positively contributes to the Seward community and beyond. Ownership of the parcel and facility will allow CRRC to expand the footprint and operations in the coming years and bring in additional economic, scientific, and cultural opportunities. McSwain and Associates conducted an appraisal on behalf of CRRC in order to determine the fair market value of the parcel. The appraisal determined the fair market value of the parcel to be $500,000 and the improvements are valued at $1,075,000. Due to the nature of the funding source for construction of the facility, City Administration recommends the transaction only take into consideration the parcel value. Seward City Code 7.05.150 (b) states, "If an appraisal is made, the property interest shall not be disposed of for less than the appraised fair market value, unless the City Council finds by resolution that public interest will be served by disposing of the property interest for less than the appraised fair market value." Due to the funding mechanism which provided for the construction of the facility; it must remain in use for the purpose of maricultural purposes. Given this restriction, selling the parcel for the appraised value of the land itself to a non-profit entity who has been operating with excellence meets the legal criteria described in City Code. Additionally, the current, no-cost lease is in place until 2069, with CRRC having the option to extend for up to 25 years. Thus, the City will likely not realize any direct financial benefit at all from the parcel or the structure for at least 47 years. The Municipal Land Plan as approved by City Council on October 24 recommends that the City of Seward sell this parcel to CRRC. 360 Comprehensive and Strategic Plan Consistency Information This legislation is consistent with (citation listed): Comprehensive Plan: 3.2 Land Use Strategic Plan: Other: Municipal Land Plan (page 145) Certification of Funds Total amount of funds listed in this legislation: $ 500,000 This legislation (✓): x Creates revenue in the amount of: $ 500,000 Creates expenditure in amount of: $ Creates a savings in the amount of: $ Has no fiscal impact Funds are (✓): Budgeted Line item(s): 80010-0000-4610 X Not budgeted Not applicable Fund Balance Information Affected Fund (✓): General SMIC Electric Wastewater Boat Harbor Parking F1 Wat F1 Healthcare Motor Pool Other Note:amounts are unaudited Fund Balance/Net position — restricted $ Fund Balance/Net position — unrestricted/unassigned $ Available Unrestricted Cash Balance: $ Finance Director Signature: Attorney Review X Yes Attorney Signature: Not applicable Comments: r- -- Administration Recommendation XeAdopt Resolution Other: 361