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Sponsored by: Shealy
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CITY OF SEWARD, ALASKA
RESOLUTION 2003-102
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD,
ALASKA, AUTHORIZING THE CITY MANAGER TO ENTER INTO A LONG
TERM LEASE AGREEMENT WITH THE ALASKA RAILROAD
CORPORATION (ARRC) FOR A PORTION OF ATS 174 CONTAINED WITHIN
THE INNER HARBOR BASIN FOR THE EAST HARBOR EXPANSION
PROJECT
WHEREAS, the City of Seward has long pursued the expansion of the Small
Boat Harbor; and
WHEREAS, in 1998, the U. S. Army Corps of Engineers, Alaska District,
(USACE) completed a Feasibility Study and an Environmental Assessment for the
project, both of which were approved in 1999; and
WHEREAS, the USACE advertised the project in late September on their web
site; and
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WHEREAS, the new breakwater will be constructed on ARRC property by the
USACE; and
WHEREAS, a portion of ARRC tidelands consisting of approximately 1.9 acres,
not subject to the Right of Navigational Servitude exercised by the federal government,
will remain in the future harbor basin and must be leased from the ARRC; and
WHEREAS, the ARRC has agreed to lease the tidelands to the City of Seward
for 55 years at fair market value with the option to prepay the full term at any time during
the lease and without credit for annual rent already paid; and
WHEREAS, the City may provide, at its expense, fill material in exchange for rent
credits and may apply this towards prepayment ofthe entire term's rent.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF
THE CITY OF SEWARD, ALASKA, that:
Section 1. The City Manager is authorized to enter into a long term lease
agreement with the Alaska Railroad Corporation (ARRC) for a portion of ATS 174
contained within the inner harbor basin for the East Harbor Expansion Project.
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Section 2. The Ground Lease in substantial form as attached hereto and
incorporated by reference is approved. The City Manager is authorized to negotiate
changes to those terms and conditions that would result in a more favorable position for
the City.
CITY OF SEWARD, ALASKA
RESOLUTION 2003-102
Section 3. This resolution shall take effect thirty days after adoption.
PASSED AND APPROVED by the City Council of the City of Seward, Alaska
this 13th day of October, 2003.
THE CITY OF SEWARD, ALASKA
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StuClark,Mayor
AYES:
NOES:
ABSENT:
ABSTAIN:
Branson, Dunham, Orr, Valdatta, Clark
Shafer, Amberg
None
None
ATTEST:
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COUNCIL AGENDA STATEMENT
Meeting Date: October 13, 2003
Through: Phil Shealy, City Manager
From: Harbormaster, James B. Beckham
Agenda Item: Authorizing the City Manager to Enter into a Long term
Lease Agreement with the Alaska Railroad Corporation
(ARRC) for a portion of ATS 174 Contained Within the
Inner Harbor Basin for the East Harbor Expansion
Project
BACKGROUND & JUSTIFICATION:
The City of Seward has long pursued the expansion of the Small Boat Harbor. In 1998, the U. S.
Army Corps of Engineers, Alaska District, (USACE) completed a Feasibility Study and an
Environmental Assessment for the project. The Feasibility Study was favorable and the project was
approved in FY1999.
The USACE advertised the project in late September on their web site
http://www.poa.usace.army.mil/contracting/default.asp
The new breakwater will be constructed on ARRC property by the USACE. A portion of ARRC
tidelands consisting of approximately 1.9 acres, not subject to the Right of Navigational Servitude
exercised by the federal government, will remain in the future harbor basin and must be leased from
the ARRC. The ARRC has agreed to lease the tidelands to the City of Seward for 55 years at fair
market value. The City has the option to prepay the full term at any time during the lease and without
credit for annual rent already paid. The City may provide, at its expense, fill material in exchange for
rent credits and may apply this towards prepayment of the entire term’s rent.
1. Comprehensive Plan X
Economic Development, Small Boat Harbor Development: expand and maximize potential of the
existing harbor.
Transportation Facilities, Harbors: Continue to support, promote, enhance and develop harbor
facilities…
2. Strategic Plan X_
Economic Base ,Improve and Expand Maritime Facilities: complete eastward expansion of the
Small Boat Harbor
3. Other: Small Boat Harbor Management Plan X
Harbor Development, New Harbor Development and Expansion: …expand the existing harbor…
FISCAL NOTE:
The annual lease payment to the ARRC is $11,067.00. The prepayment provision for the entire lease
term is $122,963.00 if paid within 90 days of executing this lease. Recalculation of the prepayment
amount will be done if prepayment is elected at a later date.
Approved by Finance Department
RECOMMENDATION:
Council approves Resolution 2003-102, authorizing the City Manager to enter into enter into a long
term lease agreement with the ARRC for a portion of ATS 174 contained within the inner harbor
basin for the East Harbor Expansion Project.