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HomeMy WebLinkAboutRes2006-042 I I I Sponsored by: Corbridge Pu lied 4/24/06 CITY OF SEWARD, ALASKA RESOLUTION 2006-42 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, ENTERING INTO A FIFTH AMENDMENT TO THE AGREEMENT FOR THE FINANCING, LEASE, CONSTRUCTION, OPERATION AND MAINTENANCE OF THE ALASKA SEALlFE CENTER, BETWEEN THE CITY OF SEWARD AND THE SEWARD ASSOCIATION FOR THE ADVANCEMENT OF MARINE SCIENCE (SAAMS), TO LEASE A PORTION OF ALASKA TIDELANDS SURVEY 174, SHOWN AS ATTACHED EXHIBIT DATED OCTOBER 20, 1998, LOCATED SOUTH AND SEAWARD OF CITY OWNED TRACT 2A, WATERFRONT TRACT, WHICH IS CURRENTLY LEASED BY SAAMS WHEREAS, the Seward Association for the Advancement of Marine Sciences (SAAMS) has submitted a proposal to lease city-owned tidelands and submerged lands which are South and seaward of the Alaska SeaLife Center property. The Alaska SeaLife Center property is currently leased by SAAMS and has a legal description of Tract 2A, Waterfront Tract; and WHEREAS, SAAMS will need to provide the City of Seward with a legal description of the portion of the tidelands and provide a plat within 90 days of final lease approval, and WHEREAS, in 1999 SAAMS obtained an Army Corps of Engineers (ACOE) permit authorizing use of a floating dock on this site and a renewal is currently being sought from the ACOE; and WHEREAS, the Conditional Use Permit issued to SAAMS in 1997 stipulated that "Future expansion plans shall be subject to P & Z review and approval", therefore an amendment to the Conditional Use Permit was approved at the March 7, 2006 Planning and Zoning meeting; and WHEREAS, the Seward Planning and Zoning Commission passed a resolution supporting the lease of the tidelands, subject to certain conditions; and WHEREAS, SAAMS and the City of Seward have reviewed the partnership arrangement for the floating dock regarding leasing fee structure, private versus public use and other issues; and WHEREAS, this lease would enhance existing operations by providing for tideland exhibits and providing a floating dock for chartered boat tours; and CITY OF SEWARD, ALASKA RESOLUTION 2006-42 WHEREAS, the City of Seward encourages more waterfront activity and supports the I use of tidelands for marine exhibits; and WHEREAS, proposed Amendment NO.5 has been reviewed by the City of Seward and the SAAMS administration and is available for public review; and WHEREAS, the City of Seward finds that providing this lease to SAAMS is in the public interest. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Seward Alaska that: Section 1. The City of Seward finds that leasing a portion of the city-owned tidelands having a legal description of Alaska Tidelands Survey 174 will allow for expansion of existing operations for the Seward Association for the Advancement of Marine Science and this is consistent with the Municipal Lands Management Plan, the Strategic Plan, and the Comprehensive Plan, subject to the following conditions: 1. The use of the tidelands for a dock and boat shall be done in a manner which minimizes conflicts with public use of the beach and tidelands. I 2. Alaska State Statute 38.05.126 &127 shall be considered in the negotiations of the lease agreement. 3. The City and the applicant are encouraged to negotiate the use of the dock by other operators taking into consideration liability issues. 4. SAAMS is required to subdivide the new lease parcel subject to City approval 90 days after the effective date of the lease amendment. Section 2. I. This resolution shall take effect thirty (30) days after its adoption. PASSED AND APPROVED by the City Council of the City of Seward, Alaska this 8th day of May, 2006. I I I I CITY OF SEWARD, ALASKA RESOLUTION 2006-42 THE CITY OF SEWARD 'Llt0 ~ LL~ Vanta Shafer, Mayor AYES: NOES: ABSENT: ABSTAIN: Dunham, Val datta, Lorenz, Thomas, Schafer, Bardarson, Shafer None None None \\iUUlltft ~~~H[?11::~-:'. ~.. c} ....?,?oi::.:\.() ',:. $ "'~fJO . "t~..Jv ~~ -.. ..~ ----- 0" ~ : ! \ : : .: SEAL :.:: : : : :: ... -.-,.. -:.. -, ""- ..:: ~ ~~"'~/~ 1 ~~~::..;~.~ .}~ ~;'~'O...:.:l:':' b.~'-<l <~, ,.. AV'_,,~' ""ll.llilt;.~o;,.T,) Council Agenda Statement Meeting Date: April 24, 2006 Through: Clark Corbridge, City Manager From: Malcolm G. Brown, Planner Agenda Item: The Seward Association for the Advancement of Marine Science request to lease a portion of the adjacent tidal and submerged lands located within Alaska Tidelands Survey 174 for the installation and operation of a floating dock for tour boat operations BACKGROUND & JUSTIFICATION: The Seward Association for the Advancement of Marine Science (SAAMS) has requested to lease a portion of city-owned Alaska Tidelands Survey 174. The tidelands and submerged lands would be used for a floating dock for tour boat operations to be conducted by a private operator. The use of the tidelands was reviewed by the Planning Commission at the March 7, 2006 meeting as an amendment to the Conditional Use Permit which was issued in 1994 to SAAMS via P&Z Resolution 2006-08. The Planning Commission also reviewed the request to lease and approved with certain conditions, via P&Z Resolution 2006-06. The City of Seward has brought forward a negotiated lease amendment for review. This lease amendment is the “Lease Amendment No. 5 between City of Seward, Alaska and Seward Association for the Advancement of Marine Science d/b/a Alaska SeaLife Center” (hereafter referred to as the City’s lease amendment). There are two versions of this document in the packet. The one being forwarded to Council for approval is entitled “City’s Recommended Lease Amendment.” The second version represents the proposal by SAAMS and is entitled, “SAAMS Version.” This version is included to clearly present SAAMS’ requested terms. The primary areas of disagreement between the two proposals are as follows: 1) The City supports a passenger fee equal to that paid by users of municipal harbors (currently $3.50), in an effort to level the competitive playing field and account for the fact that the property on which the floating dock exists, is public property. SAAMS does not support the $3.50 passenger fee in addition to their $3.50 dock surcharge. The proposed dock surcharge was agreed to by the City, and is intended to compensate the dock owner for capital construction costs. 2) The City requires the property be replatted, and SAAMS prefers not to have to replat. CITY OF SEWARD, ALASKA RESOLUTION 2006-42 _____________________ 3) Both parties agree that the dock will be available for use by other users. SAAMS has limited the use of the dock to other commercial users operating sightseeing tours. Such users are required to maintain $5,000,000 / $6,000,000 (marine protection, automobile, and general liability) in insurance, which compares to the City’s $1,000,000 requirements for vessels utilizing the Small Boat Harbor. 4) The City requires that the arbitration provisions of the operating and lease provisions mirror those of the over-riding Agreement between the City and SAAMS, and SAAMS prefers to use another arbitration method. 5) The City requires that the agreement between SAAMS and the dock owner be attached as an exhibit to this lease agreement and SAAMS objects. The Agreement between the City and SAAMS requires that subleases be provided to the City by SAAMS (Section 10.1). The City believes this agreement to be a sublease, as it limits the use of a portion of tidelands property to an exclusive dock owner, for an established fee, meeting the legal definition of a sublease. The administration believes that the agreement is material to a full understanding of the City’s long-term commitment of this property. 6) The City requires that the annual lease rate of $8,000 be adjusted by the Consumer Price Index each year, similar to the manner in which other City leases are now being crafted. SAAMS does not support the annual CPI increase provision. Staff recommends approval of the lease of the tidelands as proposed in the City’s recommended lease amendment. Section 5.3 specifies that “SAAMS shall pay to the City as additional rent [$3.50] per passenger, or such amount for passenger fees as adopted from time to time in the City’s Port and Harbor tariffs. The payment, timing of remittance, reporting, and audit of passenger fees shall be, in all respects, subject to the provisions of the Port and Harbor Tariff. The Passenger Fee shall be in addition to any Dock Surcharge.” This provision ensures consistency with use of City assets and will assure the dock is not in direct competition with the Seward Boat Harbor. Section 12 states “SAAMS and Qualified Vessel Operator shall accommodate Other Qualified Users desiring to use the Floating Dock. Such use shall be on a scheduled basis only and in accordance with such reasonable terms and conditions as determined by SAAMS and Qualified Vessel Operator.” CITY OF SEWARD, ALASKA RESOLUTION 2006-42 __________________________ The Floating Dock shall be considered a private dock located on the City-owned property. (Section 1.5) Public input: This item was brought forward as a public hearing item at the March 7, 2006 Planning and Zoning Commission meeting along with the request to amend the Conditional Use Permit. Several members of the public spoke about this action. The request to lease was also reviewed by the Planning Commission as an “Unfinished Business” item at the April 4, 2006 meeting at which several members of the public gave testimony, as shown in the minutes from the March and the April P&Z meetings. Several members of the public reviewed the application before the meetings. The Clerk’s office has continued to receive requests for documentation regarding the lease request. Surrounding Land Use and Zoning: Tract 2A Waterfront Tracts is located within the Central Business District, a district which is intended to provide an area “of convenient, attractive, concentrated commercial development primarily intended for retail, financial, entertainment and professional services occurring within enclosed structures. Regulations applying to this zone are designed to encourage a compact group of businesses of the type which are mutually beneficial and located close enough together to encourage walk-in trade, SCC 15.05.025(9).” The land to the East is used for Parks, the land to the North is primarily used for retail, offices and restaurants and the land to the West is used by the Institute for Marine Sciences. Floodplain status: According to the FEMA Flood Insurance Rate Map, the tidelands property is located in a Coastal Velocity zone. Staff and the State Floodplain Administrator have determined that a Floodplain Development Permit will be needed. Staff has provided the ASLC with the application. Drainage: Staff does not anticipate any impact on drainage due to this activity. Utilities: The property is served by existing public utilities and developed streets. The applicants have stated that the dock will not need electricity, water or sewer. Location: Tract 2A, Waterfront Tracts and an adjacent portion of Alaska Tidelands Survey 174, a plat will be needed to finalize the boundaries Size: 79,451 square feet of tidelands, as per the site plan submitted by the applicant Zoning: Central Business District (CBD) for the uplands, the tidelands are not zoned. CITY OF SEWARD, ALASKA RESOLUTION 2006-42 ____________________________ Existing Use : The Alaska SeaLife Center is used for marine research, marine related outreach, marine education, visitor tours and retail activities. Proposed Use: The applicant proposes to have a privately owned and used floating dock to support boat tours of approximately two hours. The tours would take place several times per day and hold a maximum of fifty (50) passengers. CONSISTENCY CHECKLIST: Yes No 1. Comprehensive Plan (2006) X_ ____ The Comprehensive Plan encourages the City to “Improve and expand onshore and offshore maritime facilities (see Port and Harbor Development) (page 18) and to “Use city-owned land and tidelands to encourage feasible and sound economic development by setting development standards and performance periods through the leasing process. Evaluate for disposal city-owned lands which have not or will not be dedicated to a public purpose (page 20).” 2. Strategic Plan (1999) X_ ____ This plan has statement which provides general support for this type of an activity “Vision Base: We are a community that promotes economic diversity, encourages growth of year-round businesses, desires environmentally-responsible industry, and seeks jobs that promote a higher standard of living (page 3).” 3. Municipal Lands Management Plan (1995) X_ ____ This plan has a recommendation for “Tidelands, Undeveloped Remainder, Retain ownership. Except for tidelands directly adjacent to upland Parks, dispose through lease or permit as opportunities arise (pages 22-23). FISCAL NOTE This Amendment allows for an initial annual rent in the amount of $8,000, which shall be adjusted each year based on the Consumer Price Index. In addition, the City will receive $3.50 per passenger in the form of a Passenger Fee. In accordance with the lease amendment all surveying, platting and recording costs for this city owned land shall be paid for by the applicant. Finance Approval:_______________________________ RECOMMENDATION: Staff recommends that Council approve Resolution 2006-42, in accordance with the City’s lease amendment. The City’s lease amendment ensures collection of passenger fees for the City, public use of the dock and clarifies operations and maintenance issues.