HomeMy WebLinkAboutRes2009-023Sponsored by: Oates
CITY OF SEWARD, ALASKA
RESOLUTION 2009-023
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD,
ALASKA, AUTHORIZING THE CITY I<7ANACER TO PROCEED WITH
THE ACQUISITION OF LOTS SS AND RR OF FOREST ACRES
SUBDIVISION IN SEWARD, ALASKA FOR $75,000, AND
APPROPRIATING FUNDS, FOR THE NORTH FOREST ACRES
LEVEE/ROAD PROJECT
WHEREAS, the City of Seward completed Phase I of the west Forest Acres levee in 2002,
and began the process of acquiring pcrntits for Phase II, known as the North Forest Acres
Levee/Road Project (the "Project"); and proposed acquisition is a cnicial component necessary to
move forward with the construction of the Project; and
W HF,REAS, the City of Seward spent many years developing the design and location for a
levee/road to benefit the people of Seward; and
WHEREAS, in 2008 the Seward City Council accepted the alignment of the Project as
dcscribcd in the Finding of No Significant hnpact and authorized the administration to pursue
environmental permitting and to negotiate with property owners to acquire easements, rights-ot=way
and/or ownership of parcels of land affected by the Project; and
WHEREAS, the US Army Corps of Engineers issued a permit in 2009 to the City of Seward
to construct the Project in accordance with the conditions of the permit; and
WHEREAS, at the direction of the City, appraisals were made of the fairmarkct value ofthe
parcels of land, all of which are undeveloped parcels of land, and each appraisal received an
appraisal review; and
WHEREAS, the owner of the land dcscribcd in this resolution ('`Property") desires to set I the
Property; and
WHEREAS, to allow the construction to occur within the timeframe requested by the Corps
of Engineers, the City finds that it is in the public interest to pay more than fair market value for the
Property in consideration of the timeliness of a closing of the sale and for other terms as set forth in
the agreement presented at this meeting; and
WHEREAS, Seward Cily Code Section 7.05.120 pcrnlits the acquisition ofreal property by
negotiation; and
WHEREAS, the essential terms and conditions contained in the form of purchase and sale
agreement have been available for public inspection for 10 days in the office of the City Clerk,
CITY OF SEWARD, ALASKA
RESOLUTION 2009-023
NOW, TIIF.RF,FORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
OF SEWARD, ALASKA that:
Section L The City Council finds it is in the best interest of the City of Seward to purchase
Property by negotiation for the North Forest Acres Levee/Road Project subject to conditional terms
contained in the agreement presented at this meeting.
Section 2. The City Manager is hereby authorized to proceed with the acquisition of land
commonly described as lots RR and SS of Forest Acres Subdivision in Seward, Alaska (the
"Property"), and to execute the purchase and sale agreement for a purchase price of 575,000.00 in
substantially the fom~ as presented at this meeting, and any other necessary legal documents to
acquire fee simple title to the Property and to take all such action necessary under the agreement to
complete the purchase.
Section 3. City Council finds that the subdivision requirements of Seward City Code Title
16 do not. apply to the City's purchase of the Property because, among other things, the Property wit l
be owned by the City, is being purchased for the Project, and subdivision development requirements
are not necessary or desirable for the Project.
Section 4. Funds in the arnount of $75,000 are hereby appropriated from the North Forest
Acres Levee/Road Project fund balance account 666-6664-5910 to be paid at closing in accordance
with the agreement presented at this meeting.
Section 5. This resolution shall take effect thirty (30) days following passage and posting.
PASSED AND APPROVED by the City Council of the City of Seward, Alaska, this 14th day of
April 2009.
THE CITY OF SEWARD, ALASKA
Clark Corbridge, Mayor
AYES: Dunham, Valdatta, Bardarson, Kellar, Keil, Corbridge
NOES: None
ABSENT: Smith
ABSTAIN: None
ATTEST:
CITY OF SEWARD, ALASKA
RESOLUTION 2009-023
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Jcan Lewis ~~~
City Clerk, CMC
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COUNCIL AGENDA STATEMENT
Meeting Date: April 14, 2009 ( %
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Through: Phillip Oates, City Manager ~ . ~ `~
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From: Kristin Erchinger, Finance Director f~"- _ ~ J
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Subject: Acquisition of Parcels "RR" and "SS" for North Forest
Acres Levee/Road Proiect
BACKGROUND & JiJSTIFICATION
The City of Seward has received all required permits to proceed with construction of the North Forest Acres Project. The
City's acquisition of property for the project was contingent on final receipt of all necessary permits (including the U.S.
Arnry Corps of Engineers permit, the Fish & Habitat permit, the DOT Access "approval to construcf~. As a condition of
obtaining the U.S. Army Corps of Engineers permit, the City was required to purchase specific properties for
compensatory mitigation purposes. These two parcels ("1112" and "SS" of Forest Acres Subdivision) are two of the nine
parcels which Council has authorized the administration to negotiate for purchase, in Resolutions 2007-041 passed on
Apri123, 2007, Resolution 2008-096 passed on September 22, 2008, and Resolution 2008-135 passed on December 8,
2008.
In accordance with Council's direction, the City engaged the services of HDR Alaska to conduct property and right-of-
way acquisition negotiations with affected property owners. HDR solicited property appraisals from MacSwain
Associates LLC for all affected properties, as well as a the services of a third-party "technical reviewer" (Statewide
Appraisal Services), to evaluate the appropriateness of the appraisal methodology, analytical consistency, internal logic,
accuracy of mathematical calculations, and compliance with the Uniform Standards ofProfessionalAppraisal Practices,
and the Uniform Appraisal Standards for Federal Land Acquisitions. This second layer of review was perfornted in
order to ensure that the determinations of market value would stand the test of scrutiny.
Parcel KR has a Kenai Peninsula Borough ("KPB") assessed value of $41,900 and an appraised value of $35,000. Parcel
SS has a KPB assessed value of $33,100 and an appraised value of $25,000. The City has negotiated a purchase price of
$75,000 for the two parcels, equal to the assessed value on both parcels. The compensatory mitigation process requires
complete purchase of these parcels, and requires that upon recording of the properties, restrictive covenants be placed on
these properties. The City Council will be asked to address the issue of restrictive covenants in Resolution 2009-022.
The administration recommends purchase of these properties in order to proceed with construction of the North Forest
Acres Levee/Road.
CONSISTENCY CHECKLIST Yes No N/A
1. Comprehensive Plan X
3.8.1.3 -Mitigate Flood Hazards -Secure funding to implernerrt the comprehensive flood mitigation plan for
Resun•eetion River and Japanese Creek.
3.8.1.4 -Investigate land trades and other mechmzisms far acquisition of potentially hazardous lands (relative
to floods artd saturated soils)
2. Strategic Plan X
Page 11 -Secure funding to irnplernent comprehensive flood mitigation plan for....Iapanese Creek.
Page 16- Develop a flood mitigation prr~ject to protect the runway from,Jlooding.
CITY OF SEWARD, ALASKA
RESOLUTION 2008-023
PAGE TWO
FISCAL NOTE
The City of Seward has been awarded a grants from the State of Alaska which can be used to purchase properties for the
North Forest Acres Levee/Road Project. At this time, no additional appropriation is anticipated.
Finance Department: JfiLfa~i-J -~i'tt,~Lt..`CF-t~
RECOMMENDATION
Council approve Resolution 2009- ~~~ approving a purchase agreement for Parcels RR and SS of Forest Acres
Subdivision, in the amount of $75,000, and appropriating funds.