HomeMy WebLinkAboutRes1992-077
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Sponsored by: Schaef~eyer
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CITY OF SEWARD, ALASKA
RESOLUTION NO. 92-077
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A RESOLUTION OF THE CITY COUNCIL OF THE q,ty
OF SEWARD, ALASKA, APPROVING AN AGREEMENT/WITH
SEWARD SHIP DRYDOCK, INC., FOR THE LEASE OF
APPROXIMATELY 20 ACRES OF REAL PROPERTY WCATED
WITHIN THE SEWARD MARINE INDUSTRIAL CENTER INCLUDING
THE SYNCROLIFT PLATFORM, THE ADJACENT DOCK AND
ASSOCIATED RAILS AND TRANSFER SYSTEM
WHEREAS, since 1980, the City of Seward has provided for development of the
Seward Marine Industrial Center (SMIC) and the City has expended over $40 million in
construction of improvements to the area; and
WHEREAS, the City has sought developmenfand diversification of the Seward
economy by the construction of the above faciliti~ and other projects at the Seward
Marine Industrial Center including financing al}'a construction of the Spring Creek
Correctional Center which has over 200 full-timlt/people employed, the construction by
Chugach Alaska of a sawmill operation with a'value in excess of $10 million on land
leased from the City of Seward, construction ~ a dock by Inlet Salmon in exchange for
lease of uplands in the harbor, and~ thrchase and operation of other facilities
including a 250 ton travelift, barge unloadi g facility, and the North Dock, all of which
represent investment by the City or priv e parties; and
WHEREAS, the City has consis.*ntly encouraged the development of a marine
repair and construction facility at SMJC; and
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WHEREAS, by lease agreeme~t dated August, 1988, the City leased approximately
two acres of land to James Pruitt/d/b/a Seward Ship's Chandlery for the construction and
operation of a marine repair fa~ity; and
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WHEREAS, the City a9'~ Seward Ship's Chandlery are in the process of arbitrating
whether the tenant has def~lted in the terms of the original lease, and the amount of
rent due; and ./
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WHEREAS, pensftng resolution of the arbitration, the City Council agreed not to
implement Amendme.r't No.2 to the Seward Marine Industrial Center Shiplift System
Tariff No. 1 which.. would have generated additional revenues to offset continued
maintenance and operation deficits; and
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WHEREAS, by Request for Proposal dated December, 1990, the City sought
interest in the construction of additional repair facilities adjacent to the existing leased
land to Seward Ship's Chandlery, in order to promote a multiple user concept for SMIC;
and
WHEREAS, Todd Shipyards, Inc., withdrew its proposal for a multiple-user lease
for land adjacent to that leased by Seward Ship's Chandlery before negotiations could
commence; and
WHEREAS, Seward Ship's Chandlery has indicated its desire to lease additional
land, including the entire shiplift platform system, the shiplift dock, rail and transfer
facilities; and
WHEREAS, the City and Seward Ship Drydock, Inc., have negotiated a lease
agreement in the form attached hereto as Exhibit A; and
WHEREAS, the City Council finds that it would not be in the public interest to
appraise the value of the property being leased; and
WHEREAS, the City Council finds that a negotiated lease without public bidding
is in the public interest; and
WHEREAS, a portion of the leased land includes public facilities that are within
the definition of the Seward City Charter Section l.5(k), and
WHEREAS, pursuant to Section 13.4 of the Seward City Charter, a disposal by
lease or sale or otherwise of property used or useful in the operation of a utility must be
approved by three-fifths of the electors voting on a proposition to approve the same;
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF SEWARD, ALASKA, that:
Section 1. The city manager or his designee is authorized to execute the lease
agreement attached as Exhibit A to this resolution.
Section 2. This resolution shall take effect thirty days after posting of the same
by the city clerk.
Section 3. The lease agreement shall not be effective until it has been
approved by three-fifths of the electors voting on a proposition to approve the same.
PASSED AND APPROVED by the City Council of the city of Seward, Alaska, this
18th day of May, 1992.
THE CITY OF SEWARD, ALASKA
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CITY OF SEWARD, ALASKA
RESOLUTION NO. 92-077
AYES:
NOES:
ABSENT:
ABSTAIN:
ATTEST:
Donald W. Cripps, Mayor
Bencardino, Cripps & Swartz
Crane, Dunham, Krasnansky & White
None
None
APPROVED AS TO FORM:
Perkins Coie, Attorneys for the city of
Seward, Alaska
Linda S. Murphy, CMC/AAE
City Clerk
(City Seal)
Fred B. Arvidson
City Attorney