HomeMy WebLinkAboutRes1996-084
r
,
,
Sponsored by: Klinkner
CITY OF SEWARD, ALASKA
RESOLUTION NO. 96-084
A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF SEWARD, ALASKA, APPROVING SETTLEMENT AGREEMENTS
WITH FRANK IRICK AND GEORGE ATKINSON CONCERNING
DELINQUENT SPECIAL ASSESSMENTS ON PROPERTIES
IN THE JESSE LEE HEIGHTS AREA
WHEREAS, the City of Seward (the "City") has levied special assessments on properties
in the Jesse Lee Heights area of the City (the "Properties") owned by Frank Irick ("Irick") and
George Atkinson ("Atkinson"), among which are Lots 15A and 15B, Jesse Lee Heights Addition No.
4 (the "Jesse Lee Home Properties"), upon which are located the remaining historic structures of the
former Jesse Lee Home; and
WHEREAS, the City brought an action in the Superior court in Kenai to foreclose its lien
for delinquent installments on these special assessments, and the Superior Court entered final
judgment foreclosing the City's special assessment liens against the Properties, and Irick and
Atkinson appealed that judgment to the Alaska Supreme Court; and
WHEREAS, Dan Claugus has entered into an agreement to purchase the Jesse Lee Home
Properties from Irick, subject to the City's agreement to release its special assessment liens on the
Jesse Lee Home Properties, and Claugus proposes to restore and redevelop certain historic structures
on the Jesse Lee Home Properties; and
WHEREAS, the City considers it to be in the best interest of the City and its inhabitants, and
in furtherance of the public purposes of the City, that the historic structures on the Jesse Lee Home
Properties be restored; and
WHEREAS, the agreements authorized herein will facilitate the restoration of historic
structures on the Jesse Lee Home Properties while providing the City with a substantial recovery of
delinquent special assessments on the remaining Properties;
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF SEWARD, ALASKA, that:
Section 1. The City Manager is hereby authorized to settle all claims against the Properties
for delinquent special assessments by executing (i) an agreement among the City, Irick and Claugus,
and (ii) an agreement between the City and Atkinson, substantially in the form attached hereto.
Section 2. The City Manager is hereby authorized to take all actions necessary to carry out
the terms of the agreements authorized under Section 1.
CITY OF SEWARD, ALASKA
RESOLUTION NO. 96-084
Section 3. This resolution shall take effect immediately upon its adoption.
PASSED AND APPROVED by the City Council of the city of Seward, Alaska, this 24th
day of June, 1996.
THE CITY OF SEWARD, ALASKA
AYES:
NOES:
ABSENT:
ABSTAIN:
Bencardino, Crane, Deeter, King,
Sieminski
Anderson, Keil
None
ATTEST:
IT as. urp y, C
City Clerk
.~nl~'13fll
.,. "...,. -. ~ f_...
~l:' c' ". , .'r
~"'''(fr!y .S~J)' " ~""~
~ . ,'.,. '..
- :~ ~
~ ....' d'f
:: : ':
: . :. ~Il ~
.. .. ~: f,
~ ~ :~
~t \ ~' E
-;. If- 'II '1f~ . 'h
r " .~,.~,,)"/v.., ,,~.. .~'_l-- .,:
.: $'';'. ."~ I'';. 1 "\: .,C',.> .;.'
~.. i .f~' '~Q$G.."" ,,~,'~ t.J.'
..~ 11 ,~... ',,' y, ~v ?,.~
"I', ,,"' OR; \,\J ~ .,V
"I, !, \~
IIUiU1l"
--
.
,
, I
AGREEMENT
AGREEMENT dated as of June 11, 1996 among the City of Seward. an Alaska
municipal corporation (the "City"), whose address is P.O. Box 167. Seward. Alaska
99664, Dan Claugus ("Claugus") whose address is P.O. Box 771971, Eagle River,
Alaska 99577, and Frank Irick ("Irick"), whose address is 1518 D Street, Anchorage,
Alaska 99501.
WHEREAS, the City has levied special assessments on property in the City
owned by Irick and described as Lots 15A and 158, Jesse Lee Heights Addition No.4
(the "Jesse Lee Home Properties"), and Lots 5,6 and 10, Jesse Lee Heights Addition
No.3 (the "'rick Properties"), and brought an action to foreclose its lien for delinquent
installments on these special assessments in a civil action captioned In re Delinauent
Special Assessments for the Year 1994 and Prior Years. in the Citv of Seward, Superior
Court No. 3KN-95-310 Civil; and
WHEREAS the Superior Court entered final judgment foreclosing the City's .
special assessment liens against the Jesse Lee Home Properties and the Irick Properties
for certain of said delinquent assessment installments, and Irick appealed that judgment
to the Alaska Supreme Court in an appeal captioned Frank Irick and Georqe Atkinson
v. City of Seward, Supreme Court No. S-7628; and
WHEREAS, Claugus has entered into an agreement to purchase the Jesse Lee
Home Properties from Irick, subject to the City's agreement to release its special
assessment liens on the Jesse Lee Home Properties. and Claugus proposes to restore
and redevelop certain historic structures on the Jesse Lee Home Properties; and
WHEREAS, the City considers it to be in the best interest of the City and its
inhabitants, and in furtherance of the public purposes of the City that the historic
structures on the Jesse Lee Home Properties be restored.
NOW THEREFORE, in consideration of the premises and the mutual covenants
herein, the parties agree as follows:
1. Settlement. The City and Irick intend to compromise and settle on the
terms set forth below all claims between them that were raised or could have been
raised in the actions captioned In re Delinquent Special Assessments for the Year 1994
and Prior Years, in the City of Seward, Superior Court No. 3KN-95-310 Civil, and Frank
Irick and Georqe Atkinson v. City of Seward, Supreme Court No S-7628.
2 Dismissal of Claims. The City and Irick within thirty (30) days of the
execution of this agreement will enter into a stipulation dismissing with prejudice all
claims of the City, if any, against Irick personally, and all claims of Irick Dgainst the City,
in the actions captioned In re Delinquent Special Assessments for the Year 1994 and
AMUOO'..1JoC3J7 1023
Page 1 of 5
Prior Years. in the City of Seward, Superior Court No. 3KN-95-310 Civil, and Frank lric~ -
and Georqe Atkinson v. City of Seward. Supreme Court No. S-7628. Each party wi,
bear its own costs and attorney fees with respect to the claims dismissed under this
paragraph. Such dismissals shall not affect or apply to any claim in rem by the City of
Seward in such actions against either the Jesse Lee Home Properties or the Irick
Properties. and such claims shall be specifically reserved from the stipulation to be
entered into pursuant to this paragraph. The parties intend that the City's claims in rmn
against the Jesse Lee Home Properties and the Irick Properties in such actions shall be
resolved as provided below in paragraphs 4 and 5, respectively.
3. Mutual Release. The City and Irick, for themselves and their successors
and assigns, hereby release each other from any and all claims of the City against Irick
personally, and any and all claims of Irick against the City, in the actions captioned !!!
re Delinquent Soecial Assessments for the Year 1994 and Prior Years. in the City of
Seward, Superior Court No. 3KN-95-310 Civil, and Frank Irick and Georae Atkinson v.
City of Seward, Supreme Court No. S-7628, including without limitation claims for costs
and attorney fees. Such releases shall not affect or apply to any claim in rem by the
City of Seward in such actions against either the Jesse Lee Home Properties or the Irick
Properties, and such claims shall be specifically reserved from the releases granted in
this paragraph. The parties intend that the City's claims in rem against the Irick
Properties and the Jesse Lee Home Properties in such actions shall be resolved as
provided below in paragraphs 4 and 5, respectively.
4. Payment of Irick Properties Assessments. Irick shall pay the City the sum
required under AS 29.45.400 to redeem the Irick Properties from foreclosure under the
judgment of the Superior Court in In ra DelinQuent Soecial Assessments for the Year
1994 and Prior Years. in the City of Seward, Superior Court No. 3KN-95-310 Civil. It is
understood that this amount will consist of the amount set forth in the City's application
for judgment of foreclosure with respect to the Irick Properties. plus the assessment
installments due on the Irick Properties for 1995 and 1996, with penalties and interest.
One-half of the amount payable under this paragraph shall be paid upon execution of
this Agreement. The remaining half shall be payable, with interest at 9% per annum,
within 90 days of the execution of this Agreement. Upon payment in full as described
in this paragraph, the City will execute and record all documents necessary to extinguish
its assessment lien on the Irick Properties.
5. Discharqe of Jesse Lee Home Properties Assessments.
A. Upon completion by Claugus of the restoration and reconstruction
of the historic structures on the Jesse Lee Home Properties on or before
September 30, 1998. the City will execute and record all documents necessary
to extinguish its assessment liens on the Jesse Lee Home Properties. The
release of the assessment liens on the Jesse Lee Home Properties under this
paragraph shall include the amount set forth in the City's application for judgment
AMM(~;>"H"331 1013
Page 2 of 5
It
.
,
of foreclosure with respect to the Irick Properties, plus the assessment install-
ments due on the Irick Properties for 1995 and 1996. with penalties and interest.
If Claugus fails to complete the restoration and reconstruction of the historic
structures on the Jesse Lee Home Properties as described in Exhibit A on or
before September 3D, 1998, the City (i) will be under no obligation to extinguish
its assessment liens on the Jesse Lee Home Properties. except in upon payment
of the redemption or repurchase price for those properties in accordance with law:
and (ii) may proceed to sell the Jesse Lee Home Properties or retain them for a
public use, subject to the owner's right of repurchase, as provided by law.
B. If Claugus demonstrates to the satisfaction of the City that he cannot
obtain financing for the restoration and reconstruction of the hi~torjc structures on
the Jesse Lee Home Properties, without the release or subordination of the City's
assessment liens on such properties, the City may agree, in its sole discretion,
to release or subordinate such assessment liens (i) only to the degree necessary
for Claugus to obtain such financing, and (ii) only upon Claugus providing the City
with alternate security. acceptable to the City in its sole discretion, for his
obligation t:"l complete the restoration and reconstruction of the historic structures
on the Jesse Lee Home PropertIes on or before September 3D, 1998. Such
security shall, at a minimum, permit the City to recover the full amount of the
amount set forth in the City's application for judgment of foreclosure with respect
to the Jesse Lee Home Properties. plus the assessment installments due on the
Jesse Lee Home Properties for 1995 and 1996, with penalties and interest. if
Claugus fails to perform his obligations under paragraph a.A above.
C. In this Agreement, "restoration and redevelopment" of the historic
structures on the Jesse Lee Home Properties means returning the Balto Building
and Jewel Guard Hall, the remaining buildings of the Jesse Lee Home, to a
condition for human habitation or use through adaptive modification while
preserving the original exterior architectural features of the property, all in such
a manner as to maintain its National Register of Historic Places status and all in
accordance with the conditional use permit issued by the Seward Planning and
Zoning Commission on May 3. 1996.
7. Other Claims Unaffected. The actions captioned In re Delinouent Special
Assessments for the Year 1994 and Prior Years, in the City of Seward, Supera Court
No. 3KN-95-310 Civil, and Frank Irick and Georae Atkinson v. City of Seward. Supreme
Court No. $-7628, also concern claims by the City for special assessments levied on
properties other than the Jesse Lee Home Properties and the Irick Properties. Nothing
in this Agreement affects the City's claims for special assessments levied against such
other properties
AMM00241/<(3311W3
Page 3 of 5
. ,
IN WITNESS WHEREOF, the parties hereto, in consideration of the mutu~l-
covenants set forth herein and intending to be legally bound, have caused this Fir
Amendment to be executed and delivered as of the date first written above.
CITY OF SEWARD, ALASKA
(SEAL)
By:
Ronald A. Gariini
City Manager
" '.
ATTEST:
n "".. .' ,
,'vle ';;'.-:.
:~l;. ..."'r--- " ... -:.
... : ~.- . : 4b ::
.. .. ..-
:8\ t':. 1:
.... -~"...'" , ::
.... e. t"t:" ( <<lit
~ .~".':'u~, ...Q;.......>.J' ~
r,.., \J'~ ....'vE! ,\, .... <,;,~"'" ~
..... '-11; ....... ~-....
"<"-1:.. !: Of ro-\,.: \..,..
"'111111\\\\
)
<:~~;;;-A: ,JL;L
Frank 'rick
STATEOFA~S~ )
) 58.
THIRD JUDICIAL DISTRICT }
The foregoing instrument was acknowledged before me this t!!!-day Of~
1996, by Ronald A. Garzini, City Manager of the City of Seward, Alaska, on behalf of the
City.
[j~~
"T~~~I~:l^~~~,. ~l
STATE OF ALASKA ~
YVET.TE G. WELSH ~j
~
ry for the State of Alask0
Commission Expires: 7 OJ.<Kjq g
,
WMOO24114337.1D23
Page 4 of 5
.
.
I
SMTEOFA~S~ )
) 35.
THIRD JUDICIAL DISTRICT )
The foregoing instrument was acknowledged before me this II~ay of June
1996. by Dan Clagus.
~
. ~--
Notary for the State of Ala~'9! _ /..
My Commission Expires: ~ q
',. '"
S~TEOFA~S~ )
) 55.
THIRD JUDICIAL DISTRICT )
The foregoing instrument was acknowledged before me this ll~ay of June
1996. by Frank Irick.
~~~
Notary for the State of AlaJ.?'. k",
My Commission Expires: ~'1
,.t.MMlloo..1I.137 1023
Page 5 of 5