HomeMy WebLinkAboutRes1971-814
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CITY OF SEWARD, ALASKA
RESOLUTION NO. 814
NOW, THEREFORE, BE IT RESOLVED, that the City Council of the City
of Seward, Alaska, hereby accepts the loan and grant offer as
tendered by the United States Deparbment of Commerce, Economic
Development Administration on February 11, 1971, and further
identified as Project No. 07-1-00701.
This Resolution shall be effective upon the date of its passage
and approval.
Passed and approved by the City Council of the City of Seward,
Alaska, this ~ day of March, 1971.
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ATTEST:
DISTRIBUTION:
Economic Development Administration
Approv~ as to form:
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RESOLUTION NO. 814
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD,
ALASKA, ACCEPTING A LOAN AND GRANT OFFER FROM THE U. S.
DEPARTMENT OF COMMERCE, ECONOMIC DEVELOPMENT
ADMINISTRATION
Resolution No. 814 was approved on March 8,1971.
City Council Minute Book
Volume 15 Page 29
No original or record copy was found.
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4. MANNER OF CONVEYANCE - CONDITION OF TITLE: Upon
expiration of thirty (30) days from the date on which Resolution
of City of Seward No. ~1authorizing the sale of this property
has been on file in th~6tfice of the Clerk of City, and if such
thirty (30) day term has expired then simultaneously, with the
execution of this instrument, City shall at once deliver to
Developer a Warranty Deed of said property for recordation in
the office of the District Recorder in the Seward Recording
District.
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" 5. BOND REQUIREMENI': Developer shall pay all laborers,
I materialmen, and all other obligations which arise in the course
II of construction promptly, and shall, prior to commencement of
','I work hereunder, furnish a bond covering the faithful performance
I of this obligation, in a sufficient amount to discharge all
II amounts which might be owing, including the satisfaction of any
it liens which may arise thereby, in a form and with a surety
ij satisfactory to the City.
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Title so conveyed shall be free and clear of encumbrance I
and subject only to: (a) patent reservations and easements, i'
power and utility lines or rights-of-way of record or visible !
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or determinable upon physical inspection of the premises. The i
City represents that if there is any encumbrance easement or I
zoning ordinance whereby the intended land use in developing I
a condiminium structure would be frustrated, that it will use
its best efforts to assist the Developer in having such
encumbrance or zoning restriction removed, (b) to the extent
granted by law the right of re-entry and forfeiture and reverter
of 'title to City in case of default or noncompliance with any
of the terms and provisions of this instrument.
6. LOCAL PROCUREMENT: Where practical and consistent
with good business practices, and where proficient workmen are
available, Seward Residents shall be given priority as laborers
and materialmen.
7. CONSTRUCTION ENVISIONED: The Development of the
property shall consist of the development of a main condominium
complex including the installation of recreational and commercial
facilities, the construction of apartment buildings and the
construction of a convention hall.
8. CONSTRUCTION SCHEDULE: The construction shall be
divided into five phases, and each phase shall be completed by
the date specified.
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Phase 1. of the development shall involve general
preparation and maintenance activities, including, but not
limited to, cleaning all existing structure, repairing roofs on
existing structures, cleaning and painting of the exteriors of
all existing structures, removal of window units complete with
frames on all existing structure, preparatory to replacement
thereof with thermopane units, initiation of landscaping work
on the premises, and initiation of work on final working draw-
ings for units to be involved in remodeling of present
structures as well as additional units to be constructed.
Phase 1. will be initiated not later than fifteen (15) days
after the date of execution of this contract, and will be
completed no later than three (3) months after the execution date.
LAoW Of'FtCL;
~UGHE..
,~ss, Low..
[ 8c CLARK
PHONE 27...1122
ANCHORAGE.
ALASKA
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s. J. 8UCICALIEW. .JR. ; i
41TOJlN&Y AT LAW i\
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Phase 2 shall con~ist of the remodeling of the interiors
of existi'lg structure asiadicated on the land development plan.
rhe timing of starts. 01) re!J1odeling of the units shall be
de terJlti ned by the sa }es of condol'li niul'l apartments, which
Developer will use best efforts to sell. Units sold will be
completed withLl five (5) we~ks after date of sale for sales
made during the period endi'lg Decf'11ber 1, 1970. In any case,
a t least twenty-fiye pel' ce ,)t (25'!,) of Phase 2 construction,
including but not Ih'iited to, the cOl}struction of 25% of the
condominium units, shall be completed by April 1, 1971.
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Phase 3 shall involve the installation of recreational
and commercial facilities. Commercial facilities shall include
a restaurant with supporting kitchen facilities, cocktail
lounge, c~nmon lobby area, rathskeller, and commercial shopping
facilities to be located in two arcades from the center buildin
Recreational facilities shall include a private key club,
dining room, lounges, sauna and steam rooms, enclosed heated
SWimming pool, exercise room, two indoor squash and handball
courts, four tennis courts convetible into outdoor skating
rinks, and a nine-hole putting green. Phase 3 shall be sub-
stantially completed by April 1,1972.
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Phase 4 shall involve the construction of from one to
three clusters of two-story apartment buildings with twenty
units per cluster. The initiation and completion of ?base 4
will be determined primarily by the demand for such units.
Work on Phase 4 shall be initiated by June 1, 1972,
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Phase 5 shall inv01ve the construction of a new con-
vention center, involving a unit containing at least 30,000
square feet of trade and convention area. Pending the completi n
of the new convention hall, the complete facilities of the
JESSE LEE Complex will be made available to conventions. The
initiation of work of this phase, being dependent upon additiOn
feas:l.bil:ity and cost studies, shall be at the discretion of the
Deve loper .
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9. CO~STRUCTIO~ REGULATIO~S: The Developer shall in-
sure that aIr-construction is performed in a workmanlike mannerJ
an<,i that all applicable laws, building codes, and regulations I
of all governmental and regulatory agencies are complied with.
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10. WATER A.~ SEWER: The Developer agrees to install
and dedicate to the City, at no cost to the City, and in accord
snce with all applicable laws, all streets, water, sanitary
sewers, light, power, telephone facilities and all storm sewers
which ~hall be placed upon lands within the development which
will thereupon become dedicated to public use.
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11. DEFAULT BY DEVELOPER: Time is of the essence of
this contract. In the event Developer shall fail to comply
with or to perform any of the covenants, provisions and
conditions of this contract, including but not limited to fail-
ure to complete the various stages of development as set forth
herein, City in addition to and not excluding all other rights
or remedies granted to it by law, may elect to declare this
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ANCHORAGe. ALAeKA
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contract in default, thus terminating all of Developer's right I
thereunder and causing the property to revert to City. DeVelopt'
er shall place into escrow a quit-claim deed of this property
with the escrow departmc;-nt of Alaska Title Guaranty Company, I
at its main branch i.n :ilH:h0rage. The escrow shall be instructe+
to deliver such nuit-claim deed to City only in the event that I
City submit!': a certif.ied .6py of Notice of Default as provided I
below under paragraph 14 of this contract, a return receipt
indicating delive~'y t.o Developer and a statement that City has
not acquiesced tn the breach. If the rights of Developer are
terminated upon such default, all payments made hereunder and
all improvements placed on the premises shall be forfeited
to City as liquidated damages.
City agrees to place into escrow with the escrow
department of Alaska Title Guaranty Company, at its main branch
in Anchorage, Alaska, a document of release of the possibility
of reverter under this provielon, Escrow shall be instructed
to deliver this instrument to Develope.r for recordation with-
in fifteen (15) days of completion of all aspects of this
contract by Developer as evidenced by proof of payment of
the purchase price and by architect; 's certificate of completion
If not previously so released, the possibility of
reverter under this provision shall terminate upon expiration
of 21 years after the executicll of this instrument.
12. DEVELOPER'S RIGHTS IF DEFAULT IS IMMINENT: If
Developer believes a default of any of the terms of this agree-
ment on his part is imminen: or threatened, then the Developer
may apply for an extension or a waiver to the City. For good
cause shown, the City may grant such waiver or extension under
such terms as it sees fit. Whether a given set of facts con-
stitutes gOod cause or not is entirely withiu the discretion
of the City. All waivers or extensions which may be granted
shall be very strictly construed, and 110 waiver or extension
shall affect any part of the contract other than that to which
it speCifically refers.
13. WAIVER AND ESrOPPEL: No acquiescence by the City I
in any breach of this contract or fai1ur. to ..c1.rn . ..f.u1t I
fo~ same, shall work as an estoppel to do so or the waiver of I
any right to do so in the future. No invalidity of any pro-
vision of this contract shall have any effect on any other part
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It 14, NOnCE OF DEFAULT: The City shall not declare thi
II contract in default until at least thirty (30) days after
, mail.ing, by registered or certified mail, of a notice of 4ft:
;: intention to do same, addressed to Developer at .
l~lt'li.. Ball"'u', ~olorlldo, during which time developer may cure
f'., the default or apply to the City for a waiver or extension.
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15. SECURITY TRANSACTIONS: ' Without the written consen
of the City, provided there shall then be no enforceable default
on the part of the Developer in the performance of any of the I
terms hereof, the Developer may grant a ,security interest !
in his interest in this property for the purpose of interim or I
permanent financing of the construction of improvements upon I
the premises and for no other purpose, and may encumber bY'.
mortgage, deed of trust or other appropriate instrument, his'
interest in the premises, provided such encumbrance pertains I
only to such interest.
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LAW OFFICE5
~HUQHn.
T .... IEn , Low..
rrz lie CLARK
07 II- IITREI:T
PHONI! a.,.....u
ANCHORAQE.
ALASKA
Vol.. / '5
If Develop~r shall mortgage this property in accordance
with the foregoing provisions, the City agrees that so long as
any such mortgage shall remain unsatisfied of record, and
written notice of such mortgage is given to City, then City shall,
upon serving upon Developer any notice of default, simultaneously
serving a copy of such notice upon the holder of such mortgage
; and no notice of such default shall be deemed to have been duly
ii given unless and until a copy thereof has been so served upon
the mortgagee. The mortgagee shall thereupon have thirty (30)
days more time than is given to Developer to remedy or cause
to be remedied the defaults complained of, and the City shall
accept such performance by or at the instigation of such mort-
gage as if the same had been done by Developer. Anything herein
contained notwithstanding, while such mortgage remains unsatis-
fied of record, if any event or events of default shall occur,
which under any provision of this agreement shall cause the
reverter to take effect and if before the expiration of thirty
(30) days of the date ofservlce of notice of same, such mortgagee
shall have paid to the City all payments herein provided for,
and then in default and shall have complied or shall engage in
the work of complying with all of the other requirements of
this agreement, if any, which are then in default, then in
such event the City shall not be entitled to terminate this
agreement and any notice of termination thereto given shall be
I' void and of no effect.
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16. ' HORIZONTAL REGIME - PARTIAL RELEASES: City and
Developer agree that for development of these properties as
intended by them, the execution and recordation by Developer
of a Declaration of Horizontal Property Regime as required by
statute and of a declaration of protective covenants in
connection herewith are essential; and the parties further
agree that the contemplated land use involves the sale and
conveyance of fee simple title of units free of prior lien but
subject to protective covenants.
Therefore it is agreed:
(a) That the terms and provisions of this contract be
subordinated to the terms and provisions of the Horizontal
ii Prope;rty Regime and the protective covenants thereunder to the
extent that the use and occupancy of the property shall be
governed by these instruments.
(b) Upon completion and filing of the survey map and
floor plans of the "condiminium" as required by law, City shall
place into escrow with the escrow department of Alaska Title
Guaranty Company at the main Branch in Anchorage, Alaska, deeds
of a partial release for each individual apartment and other
unit as established by the map and plan. These deeds of partial
release shall release each respective unit from such equitable
mortgage or vendor's lien and from any other right, title or
interest as may exist in favor of City under the terms and
provisions of this agreement. Escrow instructions to be furnish-
ed to said escrow shall provide th~t upon payment by the
Developer of the proper pro tanto amount of the total balance of
the unpaid purchase price under this contract for an individual
unit, and when the City Building Inspector has furnished a
certificate that said unit is substantially ready for occupancy,
the said escrow shall deliver the deed of release for such
unit to Developer.
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" ., J. BUCKALlEW, JR.
A1'TORNEY AT LAW
..,. NATIONAL .ANK
'JUILDING
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A,. '''AGE. AL....KA
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: : y ;I nd :;/,. ;o"e,' sh;! l' coopera te wi tl.l the escrow
in t:\H f')U ,-of' set " ,1ppr'cnriat€' escrow instructions and in
')""; ;'0, ':H :'1'0 t;l,'" ~ ',:, ,,(, ()f ilHlehtedness to be alloted to
eae", ::":;''''1.,,,(,,)t (',r " " "cc(".I'da',ce with the area ;:Jl}d space
I\CCllf\it,! 1.1y e3th ~.J.ch :'-'f~ n~cJE~r the flo'")r ;1]an.
i'h, de,.u, cd p<l1'ti;1} l'el€a~e frjreach 'i,'ldividual IInit
sha 11. 'l'~ l'lclt- 1" TE' [\<IS/" of .i' s ;,,~rcentage ()f undivided
j;)l:e:",,"'t, j'l the, ,,,,,on areas alld f'H'llities and shall be re-
c()t'::led "I'o'l del .overy as rel"[llired by statute.
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17. ~'IJBORDINATIO',{: It is the intent of the parties
that securing ':If both interim and permanent flnanci'lg of the I
cori.pleted construction is essential for achieving a condominiuml
development on this property for the benefit of City and of i
Developer. I
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It is therefore agreed that the vendor's lien or I
equitable mortgagee's interest of City in this property arising:
under the uupa id portion or portiOI\E' of the purchase money ,
herein ;>rovidt!d shall be subJect to and inferior to any con- i
strlle tj on marl: '5age or deed of trus t now 0,(, herel' fter to be PlaCld
on the premises for a ny sur or money loa r1ed or to be loa ned
to Developer under the te,"rl1/S of any snch security transaction
as anthorized under paragraph 15 hereinabove,
I\1' WI'!'{ESS WIfrREnF, the parties hereto have ~ their 1
h:lnds and seals,the CITY OF SEWARD this 2.JJ"'$iay of fJi"''':;'--
19721 and L'HE VU.' ft!~T C()RPORATIO:~ !)p-mTH AMERI IS
..1f(::-day of , ' 1970, by their respective officers,
II'ho ea,;h warra'lt aut lorized tt) t~xt'Cl1t:e this document,
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CTTY olIo' SEWARD
rm.: n}:;VELOPMl:.~T CORPORATION' OF
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l'HIS IS ra CJ,;RrIFY, that on Lhe b~ay of _,I
1970, before me, the undersigned, a Notary Public in a or I
the State of Alaska, ~/.;ly com' si le arld sworn affll such, // ,
per lly appeared /.1. r' and"~ K. i
!lawn 0 l"~ 11 k '~n to !:,e ~ e t e i
and who executed.).l\~f~~O,}jl i g instrument I
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STATE OJ:<' ALASKA
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rHIRD JUDICIAL DISTRICT
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ATTACHED TO AND MADE A PART OF THE MINUTES OF THE S i\RD CITY COUNCIL
L 15 - PCE../J!;
ames R:');.'i~
City Clerk-Treasurer
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Is/Robert E. Glud
Mayor
ATTEST:
APPROVED AS TO FORM:
HUGHES, THQRSNESS, LOWE, GANTZ & CLARK
Attorneys f~r City of Seward
By
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