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HomeMy WebLinkAboutRes2003-102 Sponsored by: Shealy I 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 I 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. I 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 SZ-c~ StuClark,Mayor AYES: NOES: ABSENT: ABSTAIN: Branson, Dunham, Orr, Valdatta, Clark Shafer, Amberg None None ATTEST: ",'11'"", ......,. OF St:u~"'," .... ~--t ..... 'Y-i ~.. .:- cl:..~n~POiii~..~<) ~ ~ ..~v- ~.. ~ (City Seal) i . f SEAL' ()\ S : : : - : . ~ : .. .. . ---- ... "". . . .. ~ 0"....,V, 'l, .. ~ -=:. ~~....~~ 11"9J,~"':L"t'~ '.. -, ..... ..' C;;j-r...~- '&''/1 OF p..\..f"..~,.. I"....nn'" 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.