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HomeMy WebLinkAboutRes1992-118 . . . Sponsored by: Schaefermeyer CITY OF SEWARD, ALASKA RESOLUTION NO. 92-118 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, APPROVING AN AGREEMENT OF SALE WITH JAMES T. PRUI'IT FOR THE PURCHASE OF APPROXIMATELY 20 ACRES OF REAL PROPERTY LOCATED WITHIN THE SEWARD MARINE INDUSTRIAL CENTER INCLUDING THE SYNCROLIFf PLATFORM, THE ADJACENT DOCK AND ASSOCIATED RAILS AND TRANSFER SYSTEM AND CALLING A SPECIAL ELECTION TO SEEK VOTER APPROVAL OF THE DISPOSAL OF THE SHIPLIFf FACILITY 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 development and diversification of the Seward economy by the construction of the above facilities and other projects at the Seward Marine Industrial Center including financing and construction of the Spring Creek Correctional Center which has over 200 full-time 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 of a dock by Inlet Salmon in exchange for lease of uplands in the harbor, and the purchase and operation of other facilities including a 250 ton travelift, barge unloading facility, and the North Dock, all of which represent investment by the City or private parties; and WHEREAS, the City has consistently encouraged the development of a marine repair and construction facility at SMIC; and WHEREAS, by lease agreement 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 facility; and WHEREAS, the City and Seward Ship's Chandlery are in the process of arbitrating whether the tenant has defaulted in the terms of the original lease, and the amount of rent due; and 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 . . . CITY OF SEWARD, ALASKA RESOLUTION NO. 92-118 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, James T. Pruitt, dba Seward Ship's Chandlery, has indicated its desire to purchase additional land, including the entire shiplift platform system, the shiplift dock, rail and transfer facilities; and WHEREAS, the City and James T. Pruitt have negotiated a sales 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 sold; and WHEREAS, the City Council finds that a negotiated sale without public bidding is in the public interest; and WHEREAS, a portion of the land to be sold includes public facilities that are within the definition of the Seward City Charter Section 1.5(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; and WHEREAS, in order to all Pruitt to move forward with the purchase of the property during the current construction season, the City Council finds it in the public interest to call a special election for the purpose of seeking voter approval of the sale of the shiplift dock and the Syncrolift shiplift platform; 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 sales agreement attached as Exhibit A to this resolution. Section 2. An election shall be held on Tuesday, August 18, 1992, in and for the city of Seward for the purpose of submitting to the qualified voters of the city the question of approval of a sales agreement with James T. Pruitt, dba Seward Ship's Chandlery, for the purchase of approximately 20 acres of real property located within the Seward Marine Industrial Center including the Syncrolift Platform, the adjacent dock and associated rails and transfer system. An affirmative vote of three-fifths of the qualified electors voting at the special election shall be required for approval of the sales agreement. . . . CITY OF SEWARD, ALASKA RESOLUTION NO. 92-118 Section 3. The proposition shall be substantially in the following fonn: PROPOSITION NO. SALES AGREEMENT WITH lAMES T. PRUITT. DBA SEWARD SHIP'S CHANDLERY Do you approve the sale of approximately 20 acres of real property located within the Seward Marine lndustrial Center, including the syncrolift platfonn, the adjacent dock and associated rails and transfer system, as approved by City Council Resolution No. 92-118, to James T. Pruitt, dba Seward Ship's Chandlery? Section 4. The foregoing proposition shall be printed on a ballot which may set forth other propositions. The proposition set forth in Section 3 above shall be printed in full, and the following words shall be added as appropriate and next to a space provided for marking the ballots: PROPOSITION NO. YES NO Section 5. A person may vote at this election who (a) is qualified to vote in state election sunder AS 15.05.010, (b) has been a resident of the City for at least 30 days immediately preceding the election, (c) is registered to vote in state elections at a residence address within the city at least 30 days before the election, and (d) is not disqualified under Article V of the Alaska Constitution. The election shall be conducted in compliance with the procedures established in Title 4 of the Seward City Code. Section 6. Publication of this resolution shall be made by posting a copy hereof on the City Hall bulletin board and one other public place for a period of at least 30 days prior to the date of the election, and notice shall be published in a newspaper of general circulation within the city at least 20 days prior to the election. In addition, copies of the resolution shall be made available at the City Clerk's Office for at least thirty days preceding the date of the election. Section 7. The sales agreement shall not be effective until it has been approved by three-fifths of the electors voting on a proposition to approve the same. Section 8. This resolution shall become effective immediately upon its adoption. PASSED AND APPROVED by the City Council of the city of Seward, Alaska, this 13th day of July, 1992. . . . CITY OF SEWARD, ALASKA RESOLlITION NO. 92-118 AYES: NOES: ABSENT: ABSTAIN: A TIEST: THE CITY OF SEWARD, ALASKA ( ,- . ,/ / ,/ L./ " '/'-~4cLii.P', ~.~ Donald W. Cripps, Mayor Bencardino, Crane, Cripps, Dunham & Swartz None Krasnansky & White None APPROVED AS TO FORM: Perkins Coie, Attorneys for the city of Seward, Alaska tni;~~y,~c;:c&~ P.~~ City Clerk oz~ J1j r4-.. Fred B. Arvidson City Attorney (City Seal) SEWARD SHIP'S CHANDLERY PURCHASE OFFER TO CITY OF SEWARD ESSENTIAL TERMS AND CONDITIONS June 29, ~992 Resolution 92-~~8 Attachment A .LLER: BUYER: City of Seward James T. pruitt or his assigns LAND: 22.647 Acres, described on Exhibit A (Land description from Paul Diener) . PRICE: $577,085.44 CLOSING/CONTINGENCIES: 1. Excepting only tidelands, City to supply warranty of title. City agrees to make best efforts to obtain the tidelands within 18 months. 2. Parties to split closing costs, survey, platting and title insur- ance. 3. Environmental baseline study to be conducted at City's expense with firm of City's choice. If any Hazardous Materials as defined inmost recent version of lease) are found in existing leased land, City, at its option, can refuse to close. Similarly, if any are found on city-operated portion of the land, Buyer can refuse to close. . 4. Sale and closing subject to voter approval of sale in accordance with Seward City Charter provisions. 5. Buyer to supply City with acceptable EDA waiver/release of existing grant conditions by whatever means required (including Buyer paying existing balance of grant if necessary) . SUPPLEMENT: Full settlement of all existing claims under existing lease, including those subject to current arbitration. Buyer shall continue syncrolift tariff payments of $25,000 per month until closing. Parties to sign mutual releases. OTHER: The city shall quitclaim and assign all of its interest in the tidelands to Buyer. Buyer's obligation is conditional upon obtaining a loan from Key Bank Alaska on terms acceptable to Buyer and in the amount of the purchase price plus any funds due from Buyer pursuant to Item 5, above. tlgned Date ~~~~ ~//S- / q~