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HomeMy WebLinkAbout03172010 PACAB Packet Port and Commerce Advisory Board Regular Meeting of sew ,.,,„,, A 41 4$i a :, . , IS 4 # _,_- qL SA • March 17, 2010 Regular Meeting Happy St. Patrick's Day. City Council Chambers Beginning at 12:00 pm SEWARD PORT AND COMMERCE ADVISORY BOARD Regular Meeting March 17, 2010 Noon COUNCIL CHAMBERS Ron Long, Chair 1. CALL TO ORDER Board Member Term Expires 2011 2. PLEDGE OF ALLEGIANCE Theresa Butts, Board Member 3. ROLL CALL Term Expires 2012 4. SPECIAL ORDERS, PRESENTATIONS AND Deborah Altermatt REPORTS Board Member Term Expires 2010 A. ARRC Representative Louis Bencardino Daniel Oliver Board Member B. Chamber Report-Laura Cloward, Executive Director Term Expires 2010 Daryl Schaefermeyer C. Harbormaster Report — Kari Anderson Board Member Term Expires 2012 D. Community Development Report- Christy Terry Robert Buck Board Member 5. Citizens' comments on any subject except those items Term Expires 2012 scheduled for public hearing. [Those who have signed in Paul Tougas will be given the first opportunity to speak Time is limited Board Member to 2 minutes per speaker and 30 minutes total time for this Term Expires 2011 agenda item.] Phillip Oates 6. Approval of agenda and consent agenda [Approval of City Manager Consent Agenda passes all routine items indicated by Kari Anderson asterisk ( *). Consent Agenda items are not considered Harbor Master separately unless a Board Member so requests. In the event of such a request, the item is returned to the Regular Suzi Towsley Executive Liaison Agenda.] City of Seward, Alaska PACAB Agenda March 17, 2010 Page 1 1 7. INFOMATIONAL ITEMS REPORTS AND PRESENTATIONS— A. WTC Forum Luncheon (1- 13 -10) Report by Board Member Altermatt B. Monthly PACAB Budget Report .... 3 8. UNFINISHED BUSINESS -None 9. NEW BUSINESS A. Recommend Topic for April 21 work session; Updates to SCC 7.10 Page 5 B. Discussion of Harbor Vessel Maintenance and Repair Policy .. Page 6 C. Discussion and recommendation for City Land Sale Policy .. Page 10 * D. Approval of January 6, 2010 Regular meeting minutes .. Page 57 10. CORRESPONDENCE, INFORMATIONAL ITEMS AND REPORTS (No action required) - A. Exxon Valdez Oil Spill Trustee Council- Notice of Intent News Release Page 63 11. BOARD COMMENTS 13. CITIZEN COMMENTS [5 minutes per individual - Each individual has one opportunity to speak.] 14. BOARD AND ADMINSTRATIVE RESPONSE TO CITIZENS'COMMENTS 15. ADJOURNMENT City of Seward, Alaska PACAB Agenda March 17, 2010 Page 2 2 2010/2011 LEGISLATIVE BOARDS & COMMISSIONS OPERATING BUDGET by Commission 2009 2010 2011 Budget Budget Budget Historic: Preservation ......... Salaries & Benefits - _ _ Subscriptions &Dues - 100 100 Travel & Subsistence 240 150 150 Education & Training 5,374 600 600 Insurance 400 300 300 Supplies 330 330 330 Postage & Fees 80 80 80 Miscellaneous Subtotal $ 6,424 $ 1,560 $ 1,560 Planning, & Zoning Salaries & Benefits 27,104 27,703 28,937 Advertising 0 600 600 Subscriptions & Dues 450 200 200 Travel & Subsistence 1,200 500 500 Education & Training 700 700 700 Insurance 400 400 400 Supplies 1,680. 1,680 1,680 Postage & Fees 210 210 210 Miscellaneous 0 0 0 Subtotal $ 31,744 $ 31,993 $ 33,227 Port & .Commerce Salaries & Benefits 0 0 0 Advertising 250 250 250 Subscriptions & Dues 750 750 750 Travel & Subsistence 1,560 450 450 Education & Training 660 400 400 Insurance 400 400 400 Supplies 990 990 990 Postage & Fees 210 210 210 Miscellaneous 0 0 0 Subtotal $ 4,820 $ 3,450 $ 3,450 Totals: $ 42,988 $ 37,003 $ 38,237 Summary by General Ledger Account Salaries & Benefits $ 27,104 $ 27,703 $ 28,937 Advertising 250 850 850 Subscriptions & Dues 1,200 1,050 1,050 Travel & Subsistence 3,000 1,100 1,100 Education & Training 6,734 1,700 1,700 Insurance 1,200 1,100 1,100 Supplies 3,000 3,000 3,000 Postage & Fees 500 500 500 Miscellaneous 0 0 0 Totals by Account: $42,988 $37,003 $38,237 A7 3 PACAB MONTHLY BUDGET REVIEW 2010 Budget to date w /expenditure Advertising $ 250.00 $250.00 Subscription & Dues - $40.00 $ 750.00 $710.00 Travel & Subsistence - $161.00 $ 450.00 $289.00 Education & Training $ 400.00 $400.00 Insurance $ 400.00 $400.00 Supplies $ 990.00 $990.00 Postage & Fees $ 210.00 $210.00 Misc $ - Totals $ 3,450.00 $3,249.00 Expenditures per month 2010 Description Jan-10 $40.00 WTC Luncheon Feb -10 $161.00 WTC travel remibursement 4 Port and Commerce Advisory Board Agenda Statement Meeting Date: March 17, 2010 e of se To: Port and Commerce Advisory Board Through: Ron Long, Chair 4AS � From: Suzi Towsley, Executive Liaison Agenda Item: Proposed revisions and timeline for SCC 7.10, Harbor and Port Facilities BACKGROUND & JUSTIFICATION: The Port and Commerce Advisory Board has worked for over a year on revisions to Seward City Code 7.10, Harbor and Port Facilities. The Harbormaster will make recommendations and staff is developing a resolution of amendments encompassing all Port and Commerce Advisory Board revisions. Staff will work in conjunction with board members to prepare a resolution for PACAB approval to be forwarded for subsequent Seward City Council consideration. RECOMMENDATION: The Port and Commerce Advisory Board should discuss remaining Title 7 amendments at its April 21, 2010 work session. 5 AGENDA STATEMENT y of set Date: March 17, 2010 itASwP To: Port and Commerce Advisory Board From: Harbormaster Anderson Subject: Seward Small Boat Harbor Vessel Maintenance and Repair Policies. BACKGROUND & JUSTIFICATION: The Port & Commerce Advisory Board held a work session on September 16, 2009 to discuss options for Vessel Maintenance and Repair policies for the Seward Small Boat Harbor. William Ashton from the ADEC and Whittier Harbormaster Ed Barrett spoke at the meeting. Several members of the public spoke at the meeting regarding the necessity for boat owners to perform minor maintenance at their slips. The conclusion of the work session was guidance for City of Seward administration to develop a policy for vessel owners to conduct routine maintenance and repairs on their vessels within the harbor. The board also recommended that vessel owners completing maintenance and repair activities outside of the confines of their vessel file a work plan with the Harbormaster's office, similar to obtaining a hot work permit. Finally the board recommended implementing a fine in the Port & Harbor Tariff regulations to enforce this policy if maintenance by- products enter the water, damage harbor infrastructure or other vessels. Harbor staff researched and ultimately developed the proposed Vessel Maintenance and Repair Policies for conducting this type of work in the harbor. (See attachment) These policies are modeled after Clean Marina initiatives in other states, and Best Management Practices outlined by the State of Alaska from the Alaska Coastal Management Program. The harbor is seeking public input on these proposed policies. The goal is to avoid maintenance by- products and debris from entering the water or contaminating floats, docks or adjacent vessels. RECOMMENDATION: Discuss and make recommendations on the proposed Vessel Maintenance and Repair Policies during the March 17 PACAB meeting. Pass a resolution of support for the Vessel Maintenance - and Repair Policies at the April 7 regular meeting. This policy and resolution of support will be forwarded to City Council for approval as a Public Hearing item in April. 6 SEWARD SMALL BOAT HARBOR VESSEL MAINTENANCE AND REPAIR POLICIES • NO DEBRIS OR POLLUTANTS ARE ALLOWED TO ENTER THE WATER OR CONTAMINATE FLOATS, DOCKS, FINGERS OR ADJACENT VESSELS. 1. Whenever possible remove vessel from water to do maintenance or repairs. 2. HOT WORK PERMIT REQUIRED when welding, grinding, torch work or when any other open flame apparatus is being used. 3. No more than 50% of surface area of vessel may be worked in a 24 hour period. More extensive work is prohibited in the harbor. Scaffolding on the docks, floats, or city property is not allowed and may not extend beyond the confines of the vessel. 4. NO SPRAY PAINTING. Brush or roller only. Air -dry empty paint cans before disposal. 5. Always mix paints, solvents, etc. on impervious surfaces (tarp, plastic, in a tote, or other form of containment). 6. Tarp or plastic enclosures are required when sanding, grinding, or painting on exterior of vessel. 7. Sweep and collect paint chips immediately after scraping or sanding. Don't hose or sweep debris into the harbor. 8. Use damp cloth to wipe off small amounts of sanding dust, or use vacuum sanders and grinders to reduce the risk of contaminants entering the water. 9. Plug scuppers to contain dust and debris. 10. Store collected scraping of sanding residue on your vessel under cover in a manner that minimizes contact with water or stormwater until properly disposed of. 11. No sanding or grinding in high wind situations (above 20 knots). 12. When painting or sanding on hull proper containment for residue is required to keep paint, chips, etc. from getting into water. Cover gap between boat and slip with tarp or plastic. Reverse boat in slip to work on other side. 13. If using raft to conduct maintenance or repair activities, a tarp or plastic must be between raft and vessel to collect all by- products of work being done. 14. Use minimal abrasion when cleaning hull below waterline. No scraping or abrasive process that will remove paint. Frequent hand washing should not cause any paint to abrade or chip off. 15. Minimize the use of soaps and detergents when washing vessel above waterline. Use phosphate -free and biodegradable cleaning agents and detergents. 16. Maintenance materials shall not be left on floats or fingers for more than 8 hrs and may not impede the flow of traffic on floats or fingers. 17. Prop and zinc changes are allowed. Dispose of zincs properly at aluminum recycling stations. 18. Dispose of used oil and anti -freeze in collection sites provided around harbor. 19. Changing of oil or any other maintenance activities are not allowed in parking lots. 7 IMW SEWARD HARBOR MAINTENANCE PERMIT FORM SEWARD BOAT HARBOR P.O. 80X 167 Seward, AK 99664 Phone 907 - 224 -3138 Fax 907 - 224 -7187 • ANYONE CONDUCTING MAINTENANCE BEYOND THE CONFINES OF THEIR VESSEL MUST HAVE A MAINTENANCE PERMIT ISSUED BY THE HARBORMASTER'S OFFICE 1. VESSEL NAME: LENGTH: VESSEL HARBOR ACCOUNT NO: LOCATION OF VESSEL: OWNER: ADDRESS: CONTACT NUMBER /EMAIL: CONTRACTOR: 2. TYPE OF WORK BEING DONE: 3. VESSEL MAINTENANCE AND REPAIR POLICES FOLLOWED: 4. DEBRIS DISPOSAL /RECYCLING PLAN: 5. HOTWORK PERMIT REQUIRED: YES NO 6. OWNER /OPERATOR IS AWARE OF VESSEL MAINTENANCE AND REPAIR POLCIES AND WILL COMPLY WITH WASTE DISPOSAL ORDINANCES : (SIGNATURE) 7. OWNER /OPERATOR IS RESPONSIBLE FOR INFORMING ANY CONTRACTOR OF VESSEL MAINTENANCE AND REPAIR POLICIES AND WILL ENSURE COMPLIANCE: (SIGNATURE) 8 VESSEL MAINTENANCE AND REPAIR-/ PERMIT --" City of Seward - Harbor Departm (Customer Copy" Display at Work Site) 4 F 0 Notified of Maintenance Polic - 9 F `� , 0 ED Permit Form on File a Boat Name: Hot Work Permit (if needed) °�45� Owner Name: O Notification'whGn ' omplete Slip Number: Work Period: Issuing Person: KARL ANDERSON, Harbormaster VESSEL MAINTENANCE AND REPAIR PERMIT f City of Seward - Harbo Department (Harbor Office Copy) . A ^ '-1 ' J pc SF w / V C S : 1�.�� El Notified of Maintenance,Policy P Boat Name: EI Permit Form on File,- Owner Name: E] Hot Work Pe7titlif needed) Slip Number: 0 Notificationswhen complete Work Period: Issuing Person: KARI ANDERSON, Harbormaster f' ` 9 Agenda Statement Meeting Date: March 17, 2010 Of sFwq To: Chair Long and PACAB u " From: Community Development Director Christy Terry Agenda Item: Discussion and recommendation regarding Council City Land Sale Policy Work Session BACKGROUND & JUSTIFICATION: Seward City Code authorizes the City Council to dispose of real property by negotiation, public auction or sealed bid. On January 25, 2010 Seward's City Council set a Council Work Session for Tuesday, March 9, 2010 to discuss City Land Sale Policies. The Council Work Session was cancelled, but there are plans to reschedule for April. In preparation for the Work Session, Administration would like to hear comments and concerns from the Port and Commerce Advisory Board to help gather informational items for the Work Session. City Council will set a time and date for this Work Session at their March 22, 2010 Regular Meeting. In a nutshell: what items in regards to the City Land Sale Policies would PACAB like to see discussed at the Work Session? To facilitate a meaningful discussion you will find attached: 1) January 25, 2010 Minutes Section setting the Council Work Session 2) SCC §7.05 Acquisition and Disposal of Real Property 3) 2020 Comprehensive Plan Volume 1 Section 3.2.1- 3.2.11 Land Use 4) City of Seward Municipal Lands Management Plan (1995) DISPOSAL Section 5) Seward City Council Resolution 1994 -101 6) 2002 Harbor Uplands Property Lease versus Sale CBA In addition, at the March 17, 2010 PACAB Meeting the following maps will be displayed: City of Seward Ownership Map Imagery aerial of Seward Imagery aerial with ownership Nash Bench Imagery aerial with ownership SMIC RECOMMENDATION: PACAB discuss items Council should evaluate at the Land Policies Council Work Session. 10 City of Seward, Alaska ill° January 25, 2010 City Council Minutes Volume 38, Page Amendment #3 Passed Unanimous Consent Council member Amberg made a motion to strike the wording in the 15 WHEREAS "in the defense of the lawsuit" and delete section 3, which died for a lack of a second. After hearing council concerns about the amount of financial and legal support, Oates stated he would ask for an executive session at the next meeting to explain possible strategies. Amendment #4 (Amberg/Keil) Delete Section 3 Amendment #4 Passed Unanimous .x x , Main Motion was Passed as Amended Unanimous Nt OTHER NEW BUSINESS The Mayor appointed Vice -Mayor Bardarson to for the City Attorney and City Clerk. i, ,:¢ ' apt Some ideas were discussed on how to celebrate Seward's nity, Monday March 29, 2010. Council would ask the Historical S ..e Historic Prese�tion Commission and the Pioneers for ideas. r' ¶ City land sale policies were discussed, and a *ssion "visas set for Tuesday, March 9, 2010. %� INFORMATIONAL ITEMS AND action required 1. January 8, 2010 Mayor lri re: Mural Exchange. 2. January 1,3, 2010 VV ' tayor letter to Senator Murkowski. At COUNCIL. COMMENT k ,,. t^ ~Sha was happy th he city staff was raising funds for Haiti. � ye. . Valdatta *Wed that Landfill only had fluorescent bulb disposal once a month and thought the city needtd notify them on the dates and times the City was disposing of their fluorescent bulbs. Keil and Bardarson thanked all the volunteers for another successful Polar Bear Jump. Dunham complimented the 50 volunteers who assisted with the Alaska Sealife Center Marine Gala in Anchorage. He thought it was extremely well attended and it had raised around $58,000. He notified that EVOS and NOAA had about $76 million dollars of Exxon funds remaining and was proposing to split it up and would be in town in March 2010. Dunham had attended a two day session on economic development and mentioned that the oil refinery in Kenai 22 11 Chapter 7.05. Acquisition and Disposal of Real Property* *State law references: See AS 29.35.010(8) for state provisions allowing a municipality to sell, own, etc., real property; see AS 29.35.030 for state provisions allowing municipalities to exercise the powers of eminent domain; see AS 29.71.010 as to adverse possession. Article 1. Generally 7.05.110. Adoption of provisions and statutory authority. 7.05.115. Definitions. 7.05.120. Altemative means of real property acquisition or disposition. 7.05.125. Public hearing and notice. 7.05.130. Terms and conditions to be made available. 7.05.135. Authorizing resolution to approve terms and conditions. 7.05.140. Posting copy of resolution. 7.05.145. Effectiveness of resolution. 7.05.150. Appraisal. 7.05.155. Notice of foreclosure sale. 7.05.150. Adjustment to fair market value. Article 2. Disposition of Real Property by Public Auction or Sealed Bid 7.05.210. Terms and conditions of sale. 7.05.215. Location of sale. 7.05.220. Procedure for sale by sealed bid. 7.05.225. Selection of successful bidder(s). 7.05.230. Resolution accepting bids. Article 3. Short-Term Lease Negotiation 7.05.410. City manager authorized to negotiate short-term leases. Article 4. Encroachments, Easements and Rights -of -Way 7.05.510. Easements and rights -of -way. 7.05.515. Encroachments. 7.05.520. Recording. Article 5. Tidelands 7.05.610. Purpose. 7.05.615. Definitions. 7.05.620. Preference to upland owners. 7.05.625. Preference right application. Article 1. Generally* *Prior ordinance history: Ord. 520, 1984; Ord. 610, 1988; Ord. 92 - 05. 7.05.110. Adoption of provisions and statutory authority. These regulations are adopted by the city council pursuant to authority vested in that • body by the charter of the city and by the Alaska Land Act, AS 38.05.820, as amended. (Ord. 98 -04) 7.05.115. Definitions. For purposes of this chapter, the following terms defined have the meaning provided below unless the context requires otherwise. Acquisition means to obtain ownership or interest in and to hold real property within or outside the city boundaries by purchase, gift, donation, grant, dedication, exchange, 12 redemption, purchase or equity of redemption, operation of law, tax or lien foreclosure, adverse possession, condemnation or declaration of taking, annexation, lease or by any other lawful means of conveyances. City means the city of Seward, Alaska. Disposition means the transfer of city interest in real property by warranty or quitclaim deed, easement, grant, permit, license, deed of trust, mortgage, contract of sale of real property, plat dedication, lease, tax deed, will, or any other lawful method or mode of conveyance or grant. Fair market value means the highest price, described in terms of money, which the property would bring if exposed for sale for a reasonable time in the open market, with a seller, willing but not forced to sell, and a buyer, willing but not forced to buy, both being fully informed of all the purposes for which the property is best adapted or could be used. Real property interest means any estate in land, including tide and submerged lands, or improvements thereon. Rights -of -way, encroachments or easements wherein no warranties are made and title is not transferred are regarded as not involving the disposal of a party's interest in real property; thus, the execution of such documents are exempt from provisions of charter section 12.3(b) and section 7.05.110, et seq. of this chapter. Structure means any improvement, constructed or erected on or attached to the ground or another structure, including, but not limited to, awnings, refuse container racks, towers, sheds, signs and fences. Submerged lands means those lands covered by tidal waters between the line of mean low water and seaward to a distance of three geographical miles, or as may hereafter be properly claimed by the city. Tidelands means those lands which are periodically covered by tidal waters between the elevation of mean high water and mean low water or are contained within a recorded Alaska Tideland Survey. (Ord. 92 -05; Ord. 98 -05) 7.05.120. Alternative means of real property acquisition or disposition. The city council may acquire or dispose of an interest in real property by negotiation, public auction, or sealed bid. (Ord. 98 -04) 7.05.125. Public hearing and notice. Prior to disposition or acquisition of a real property interest by negotiation, public auction or sealed bid, a public hearing shall be held. Notice of the public hearing shall be published in a newspaper of general circulation in the city and shall be posted in at least three public places within the city. Both posting and publication shall be done at least ten days prior to the hearing. (Ord. 98 -04) 7.05.130. Terms and conditions to be made available. • The notice of public hearing shall indicate where the public may obtain the essential terms and conditions of the proposed acquisition or disposition. A copy of the terms and conditions shall be maintained for inspection at the office of the city clerk for at least ten days prior to the hearing. (Ord. 98 -04) 7.05.135. Authorizing resolution to approve terms and conditions. 13 At any time after the hearing required in section 7.05.125, the council shall make a finding in an authorizing resolution that the essential terms and conditions and the method of acquisition or disposition are in the public interest. (Ord. 98 -04) 7.05.140. Posting copy of resolution. Upon adoption of a resolution approving an acquisition or disposition, the city clerk shall cause a true copy of same to be posted for at least 30 days in at least three public places within the city. (Ord. 98 -04) 7.05.145. Effectiveness of resolution. Objections to a resolution approving a real property acquisition or disposition may be made at any time until the resolution becomes effective. Unless rescinded or amended, any resolution adopted under this chapter automatically becomes effective 30 days after passage and posting. (Ord. 98 -04) 7.05.150. Appraisal. (a) The city shall not sell any real property interest without first making an appraisal of the fair market value of that interest, unless the city council finds that the public interest will not be served by an appraisal. (b) If an appraisal is made, the property interest shall not be disposed of for less than the appraised fair market value, unless the city council finds by resolution that public interest will be served by disposing of the property interest for less than the appraised fair market value. (Ord. 98 -04) 7.05.155. Notice of foreclosure sale. Before property obtained through a foreclosure may be sold, notice of such sale must be sent by registered or certified mail to the last known address of the record owner at the time the foreclosure action was initiated. The notice shall be mailed at least 30 days prior to the effective date of sale. It shall contain the following information: (1) The time and date of sale; (2) The manner of sale; (3) The place of sale; and (4) Notice that until the effective time of sale the record owner has the right to repurchase the property as provided by AS 29.45. (Ord. 98 -04) 7.05.150. Adjustment to fair market value. (a) Except as provided in (b) of this section, the rent under each lease of city property shall be adjusted on July 1, 1995, and on July 1 of every fifth year thereafter during the term of the lease, to the fair market rental value of the property as of the date of adjustment. For each leased property subject to rent adjustment under this section, the city shall obtain a fair market rental value appraisal as of the date of each rent adjustment. (b) Subsection (a) of this section shall not apply to any lease of city property: (1) Authorized before the effective date of this section, except to the extent that the rent adjustment described in subsection (a) of this section has been incorporated in the terms of the lease; 14 (2) For which the council finds that the public interest will be served by leasing the property for less than appraised value; or (3) Whose terms provide for adjustment of rent to fair market value more frequently than every five years. (c) Nothing in this section extends the term of any lease of city property. (Ord. 98 -04) Article 2. Disposition of Real Property by Public Auction or Sealed Bid* *Prior ordinance history: Ord. 520, 1984; Ord. 610, 1988; Ord. 92 - 05. 7.05.210. Terms and conditions of sale. (a) The resolution authorizing the sale of real property by public auction or sealed bid shall set forth the terms and conditions of the public sale. The council shall reserve the right to reject any and all bids received. The resolution shall provide if the sale is for cash, or cash deposit and a purchase agreement. If the sale is for a cash deposit and a purchase agreement, the city manager shall prescribe the form of the purchase agreement. (b) The city manager shall designate the individual who shall conduct the sale, and such designee shall give the bidder a receipt for all moneys received by the city. A purchaser at a public sale by auction or sealed bid who fails to make such other cash payments within the time required by the authorizing resolution shall forfeit any cash deposit paid to the city. (Ord. 98 -04) 7.05.215. Location of sale. The public sale by auction shall take place at a location within the city limits as selected by the city manager. (Ord. 98 -04) 7.05.220. Procedure for sale by sealed bid. All real property interests offered for public sale by sealed bid may be sold to any person submitting an offer in writing to the council. Such offer shall be submitted in a sealed envelope marked "Real Property Bid" and must be accompanied by a check or money order made payable to the city in an amount equal to at least 20 percent of the amount bid for residential lots and ten percent of the amount bid for other parcels. (Ord. 98 -04) 7.05.225. Selection of successful bidder(s). If there is more than one bid, at a public auction or by sealed bid, for a particular or group of lots, the lot(s) shall be sold to the highest bidder(s). The highest bidder(s) shall be the one(s) whose bid(s) represents the highest total price for the property interest(s). In the event that two or more parties submit high but identical bids, the council may accept the bid first received, or reject all bids. (Ord. 98 -04) 7.05.230. Resolution accepting bids. After a sale has been conducted by public auction or sealed bid, the council, by resolution with or without public hearing, may approve all public sales of real property based on 15 the bids received, and shall approve any purchase agreement prior to its execution by the city. The approval of any public sale by the council authorizes the city manager to take all steps and execute all instruments to complete and close the sale. (Ord. 98 -04) Article 3. Short-Term Lease Negotiation 7.05.410. City manager authorized to negotiate short -term leases. Nothing in this chapter shall prevent the city manager from negotiating short-term leases of city property subject to council approval at the next regularly scheduled city council meeting. Such leases shall not be subject to the public hearing process, shall not exceed 120 days in length, and shall contain no provisions for optional terms. The resolution approving such a lease may be signed and adopted immediately provided the lease form contains a provision stating that the lease is subject to suspension during the first 30 days after passage of the resolution if a sufficient referendary petition is filed in accordance with section 4.8 of the City Charter. (Ord. 520, 1984; Ord. 610, 1988; Ord. 92 -05) Article 4. Encroachments, easements and rights -of -way 7.05.510. Easements and rights -of -way. A. Subject to applicable provisions of the Kenai Peninsula Borough Code, Title 20, Subdivisions, the city manager may, with regard to city land, negotiate and execute rights -of- way and easements not exceeding a term of 20 years. B. The city manager may negotiate and execute the acquisition of rights -of -way and easements necessary for a utility, public improvement or other public use except the city council shall, by resolution, approve acquisitions involving cash considerations or the exchange or real property valued in excess of $50,000.00. C. Any other rights -of -way and easements shall be granted or acquired only upon approval of the city council. D. The city manager may, at the direction of the city council convey, quitclaim, release, cancel, or otherwise relinquish any real property easement, right -of -way, permit or license the city may have or hold for the purpose of installing, constructing or maintaining a public improvement or utility, whenever the interest is no longer used or useful for that purpose. (Ord. 92 -05; Ord. 98 -05; Ord. No. 2008 -018, § 2, 11 -24 -2008) 7.05.515. Encroachments. A. It is the city's policy not to allow new or unauthorized encroachments into any public right -of- way, land or easement. The city finds that: (i) neither the perpetuation of an existing encroachment beyond the depreciable life of the structure, nor its enlargement, expansion, improvement or extension is deemed to be in the public interest; (ii) all encroachments considered as hazardous, obstructing motorists' line of sight, impeding emergency vehicle access, or impairing snow removal, shall be removed at the earliest available opportunity; and (iii) all other encroachments shall eventually be removed over time. B. The city manager may, after determining that alternatives, including but not limited to, removal of the encroachment or vacating the right -of -way are not feasible alternatives and would not be in the public interest, and where neither public safety nor access is impaired, issue an encroachment permit for the depriciable life of the encroaching structure. 1. No permits may be issued for refuse container racks, towers, sheds, signs or fences; 16 2. The city may revoke the permit upon written notice of not Tess than twenty days nor more than six months for the construction, improvement or use by the public of public street, sidewalk, and utility projects; 3. The encroachment may not be expanded, extended, improved or enlarged; 4. Encroachment permit shall require the permittee to: a. Pay an appropriate fee as established by city council resolution; b. Secure and maintain general liability insurance coverage based on appropriate minimum limits as determined by the city's risk manager, to protect, defend and indemnify the city during the term of the permit. The city shall be named as a certificate holder for any structure associated with a personal use single family residence; and as an additional insured party for any structure associated with an activity involving rentals, the sale of goods or services, or any business carried out for profit; c. Maintain the property in such a manner as to protect the public safety and welfare; d. At the expiration of the agreement or permit, remove the encroachment and restore the encroachment site to the surrounding grade leaving it in a clean, safe and stable condition; e. Provide other assurances as deemed appropriate by the manager in order to protect the public interest; and f. Provide an as -built survey completed by an Alaska registered surveyor which clearly delineates all encroaching structures. (Ord. 98 -05) 7.05.520. Recording. All easement and encroachment permits including applicable as -built surveys shall be recorded by the permittee in the Seward recording district, third judicial district, State of Alaska. (Ord. 98 -05) Article 5. Tidelands 7.05.610. Purpose. These regulations implement, interpret and apply the provisions of the Alaska Land Act concerning use and disposal of tide and submerged lands and related matters and extend to and include the applicable provisions of Public Law 85 -303. (Ord. 92 -05) 7.05.615. Definitions. For purposes of this article, the following terms shall be defined as follows: Coast line means the line of ordinary low water along that portion of the coast which is in direct contact with the open sea and the line marking the seaward limit of inland waters. Improvements and substantial permanent improvements means buildings, wharves, piers, drydocks and other similar types of structures permanently fixed to the tidelands or contiguous submerged lands that were constructed and /or maintained by the applicant for commercial, recreation, residential, or other beneficial uses or purposes. In no event shall fill be considered a permanent improvement when placed on tidelands solely for the purposes of disposing of waste or spoils. However, fill material actually utilized for beneficial purposes by the applicant shall be considered a permanent improvement. Mean low or lower water means the tide datum plane of the average of the low tides as has been or may be established by the United States Coast and Geodetic Survey. Mean high tide means the tidal datum plane of the average of all the high tides as has been or may be established by the United States Coast and Geodetic Survey. 17 Mean high water line shall be interpreted as the intersection of the datum plane of mean high water with the shore. Occupant means any person as defined herein, or his successor in interest, who actually occupied for any business, residential, or other beneficial purpose, tidelands, or tidelands and submerged lands contiguous thereto, within the city, on or prior to January 3, 1959, with substantial permanent improvements. The holder of a permit of clearance in respect to interference of navigation, or of a special use permit from a government agency will not qualify as an "occupant" unless such entry on the land had, through exercise of reasonable diligence, resulted in actual occupancy and substantial permanent improvements as hereinafter mentioned. No person shall be considered an occupant by reason of having (a) placed a fish trap in a position for operation or storage upon the tide, shore, or submerged land; (b) placed a set net or piling thereof or any other device or facility for taking of fish; (c) placed pilings or dolphins for log storage or other moorage; (d) placed floats or vessels upon the tide, shore or submerged land; (e) placed telephone, power or other transmission facilities, roads, trails or other improvements not requiring exclusive use or possession of tide or contiguous submerged lands; or (f) claimed the land by virtue of some form of constructive occupancy. Where land is occupied by a person other than the owner of the improvements thereon, the owner of the improvements shall, for the purposes of this definition, be considered the occupant of such lands. Occupied and developed means the actual use, control, and occupancy, but not necessarily residence, of the tide and contiguous submerged land by the establishment thereon of substantial permanent improvements. Permit preference means the privilege of the upland owner to acquire first choice over other non - preference right claimants to a permit for like use and enjoyment of city owned tide or contiguous submerged lands abutting his property. Person means any person, firm, organization, cooperative association, partnership or other entity legally capable of owning land or an interest therein. Pierhead line means the line fixed by the Department of the Army Corps of Engineers that is parallel to the existing mean low tide line at such distance offshore from the mean low tide line that the pierhead line shall encompass, landward and no more, all stationary man -made structures (but shall not encompass any part of breakwaters, bridges, or piers used for vessel dockage which part extends beyond such a parallel line marking the seaward extremity of other man -made structures) which were in existence as of February 1, 1957, to seaward of the city. Preference right subject to the established classifications, means and includes the right of an occupant to acquire by grant, purchase, or otherwise, at the election of the occupant, except as otherwise limited or prescribed in these regulations, any tract or tracts of tidelands, or tide and submerged land contiguous thereto, occupied or developed by such occupant on and prior to January 3, 1959. Preference right, Class I means a right claimed by persons who occupied and developed tide and contiguous submerged lands seaward of the city on and prior to September 7, 1957, after executing a waiver to the city and state of all right such occupant may have had pursuant to Public Law 85 -303. Upon execution of the waiver, such persons or their successors • in interest have the right to acquire such occupied and developed tide and contiguous submerged lands from the city for consideration not in excess of the cost of survey, transferring and conveying of title. Preference Right, Class 11 means a right claimed by Class I Preference Right claimants who decline to execute a waiver to the state and city of any rights such occupants may have acquired pursuant to Public Law 85 -303 (71 Stat. 623). It shall be mandatory for the city to honor the application from the occupant after the Secretary of the Army has submitted to the Secretary of the Interior, the Governor of Alaska and the city manager, maps showing the pierhead line established by the Corps of Engineers with respect to the land claimed. Upon 18 proof of such occupancy, such persons have the right to acquire such tidelands and contiguous submerged lands from the city for a consideration not in excess of the cost of survey, transferring and conveying title. Preference Right, Class 111 means a right claimed by persons who occupied and developed tidelands and contiguous submerged lands after September 7, 1957, and who continued to occupy them on January 3, 1959. Upon proof of such occupancy, such persons have the right to acquire such tidelands and contiguous submerged lands for a consideration not in excess of the cost of appraisal, survey, administering and transferring title, plus the appraised fair market value of the land claimed, exclusive of any value accruing from improvements or development, such as fill material, buildings or structures. Upland owner means that land owner whose upland property abuts the line of mean high tide. (Ord. 92 -05) 7.05.620. Preference to upland owners. Should the city decide to dispose of interest in any tide or submerged land, the city shall grant to the owner of upland property adjacent to said tide and submerged land a first preference to acquire said interest over other applicants /bidders. The upland owner shall be notified by certified mail or by a posting of a notice for three consecutive weeks of his right to exercise his preference. The upland owner shall then have 90 days to exercise this preference under this section. If the preference is not exercised by the upland owner, then the city may dispose of the tide and submerged land to others. It shall not be required that the city offer its tide and submerged lands for disposal should the city determine that it is not in its best interests to dispose of such land. The city may itself make such use of its tide and submerged lands as it may consider in the public interest without offering the tide and submerged lands to others. (Ord. 92 -05) 7.05.625. Preference right application. An occupant claiming a class I, class II, or class III preference right may apply for preference rights within two years from the effective date of the ordinance adopting these regulations. Any preference right for which an application is not filed within this period shall be forfeited. Completed applications shall be submitted to the city manager on forms supplied by the city. (Ord. 92 -05) 19 0 • Adjust local regulations, where appropriate, to encourage development in international commerce consistent with the community vision. 3.1.2. Increase public sector employment and programs. 3.1.2.1 Support existing public institutions in their effort to maintain, expand and develop. • Continue to advocate on behalf of the University of Alaska in their efforts to expand the Institute of Marine Science (IMS) facility. • Continue to advocate the Department of Corrections and Alaska State Legislature to expand the Spring Creek Correctional Center (SCCC). • Continue to advocate for the growth of the Alaska Vocational Technical Center (AVTEC). • Continue to support external funding for the Alaska SeaLife Center (ASLC). • Seek stable funding to maintain the District Recording Office in the Seward location. • Support existing public institutions in their efforts to maintain, expand and develop. • Support the concept, fundraising activities and construction of a new library/museum facility intended to combine, update and expand the programs and services of the Seward Community Library and the Seward Museum. 3.1.2.2. Encourage and assist in the development of new public services and facilities. • Support construction of the Multi- Agency Facility which is to include: National Park Service, US Forest Service, Alaska State Parks, and the University of Alaska. • Encourage the appointment of a superior court judge, and construction of a courthouse /public safety building in Seward. • Encourage additional military facilities that upgrade Seward as a Morale Welfare and Recreation (MWR) destination. i t . 3.2 LAND USE y 3.2.1 Promote residential and commercial development within the city of Seward and its vicinity in accordance with community values. 3.2.1.1 Manage land use to facilitate economic development while maintaining the historic, small town character of Seward. 2020 SEWARD COMPREHENSIVE PLAN VOL. 1 20 2005 • 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. • Develop infrastructure and utility expansion plans for currently undeveloped residential and commercial property, including ways to reduce service costs once operational. • Evaluate ordinance requirements and provide incentives for property owners that balance economic development with design that is compatible with the historic character of Seward, and provides amenities such as landscaping and adequate parking. • Ensure uniform and consistent enforcement of the zoning code, building code, subdivision ordinance, and city lease agreements, and evaluate potential code changes to make enforcement easier. • Improve methods of communicating and achieving development requirements in each zoning district by preparing information packets that include: construction permits, code requirements, and means of minimizing pollution and drainage problems; and by streamlining the plan approval and building inspection processes. • Revise the Resource Management District to require rezoning before development for residential, commercial or industrial use. • Evaluate reducing the number of zoning districts by combining Urban Residential and Office Residential. • Make code changes to allow more reasonable rebuilding of non- conforming uses after fire or other significant damage or allow expansion of non - conforming uses to a limited extent. • Support the on -going dialogue with the Alaska Railroad Corporation and the State of Alaska regarding the status and disposition of their undeveloped lands. • Find land suitable for cemetery expansion. • Research Conservation options for environmentally sensitive areas. 3.2.1.2 Expand the opportunity for affordable, diverse, year -round housing through appropriate land use regulations. • Promote infill development by -- -�—�. promoting housing construction u on small vacant Tots in already 2020 SEWARD COMPREHENSIVE PLAN VOL. 1 20 2005 21 ge nerally used only as a last resort after other acquisitio orts have failed. The only instance of this in recent city records involved the first half mile of the Nash Road extension. Tax/Lien Foreclosure. Over the years, much of the land that is now Two Lakes Park, Gateway Subdivision and the Crawford Subdivision was acquired through tax foreclosure. State statutes require that tax - foreclosed property within the city limits be deeded to the city. It gives the city the opportunity to declare by ordinance whether a foreclosed property is needed for a public purpose. If so, all redemption avenues by the former owner are closed. If property is not needed for a public use, the former owner has first right of redemption for up to 10 years. Any funds over and above taxes, penalties, interest and administrative costs gained from the sale of tax foreclosed property are made available to the former property owner. Although it has not been done in recent history, the city could acquire land through foreclosure on liens against utility improvement district property assessments. Purchase. Many of the city's parcels have been purchased from private land owners. Notable examples include the Lowell Point sewer lagoon site, as well as lands and easements along the city's power transmission line. Such purchases are generally based on a fair market appraisal value. Normally funding for such purchases is on a cash available basis from appropriated funds. Trade/Exchange. The city has acquired some lands through trades with private and public sources such as Two Lakes Park lands from the University of Alaska (UofA) for a longer lease term and vacation of the 1st Ave. right of way at the Institute of Marine Science (IMS) facility, and the transfer/landfill and elementary school sites to the borough for 4th of July Creek lands. i c DISPOSAL SCC 7.05.115 defines "disposition" as the transfer of city interest in real property by le ! C warranty or quitclaim deed, easement, grant, permit, license, deed of trust, mortgage, contract of sale of real property, plat dedication, lease, tax deed, will, or other lawful method or mode of conveyance or grant. Sale. After conducting a public hearing, City Council may approve the negotiated, sealed bid or public outcry auction sale of public property. The sale price or minimum bid price must be at fair market value unless otherwise found to be in the public interest by the Council. The sale of land converts a capital asset to cash which accrues to the city's general fund or one of the enterprise funds. It may then be appropriated through the budget process to many different uses. There has been increasing discussions about establishing a Land Bank fund in which the proceeds for land sales would accrue for the acquisition of future municipal lands, thereby benefiting present and future citizens and promoting the orderly development and achievements of the goals of the Comprehensive Plan. Recommendation: Establish a Land Bank where funds acquired from the sale of surplus property accrue to a special account for acquisition of other needed lands. Lease. The city has leased lands for many years with the oldest current lease dating from 1955. City Council Resolution 94 -101 established the most recent policy and procedure relating to the lease of public lands. The essential terms and conditions of city leases generally include length of the lease, rental rate, and development requirements. With the exception of those to the state or federal government, all leases require proof of liability insurance naming the city as an insured party. Leases are allowed to be assigned or sublet with written city consent. A condition of any sublet consent is that the city receive a copy of the sublet agreement including the rental value. This information is important to the city in the development of fair market land values. Although the Comprehensive Plan suggests that the city continue to dispose of commercial and industrial public Municipal Lands Management Plan May 1995 3 ?i 3 22 j; s i I land through long term leases rather than sale, lessees continue to lobby for the fee simple transfer of their sites. AIthough the sale of these lands would generate a large one time cash infusion to the city, it would have a I significant long term adverse impact on annual city budgets. Lease revenues currently generate in excess of i $330,000 a year; and this amount generally increases over time due to periodic appraisal adjustments and new leases. These lost revenues would have to be offset in some manner in the budget process. Preliminary I evaluations of interest that might be earned from the deposited projected lease site sale income show that it will • not replace lease income revenues. Recommendation: Reaffirm the Comprehensive Plan by continuing to � dispose of commercial and industrial lands through long term leases rather than sale a ti City lands are normally leased at fair market rental rates based on a percent of fee simple land value. The City uses an 8% rate. Reviews of other community and public agency lease policies show that this rate varies from l 6% to 10% throughout the state. The lower rates appear to apply where there is strong desire to encourage i ig development and higher rates where the demand for land is high. In Seward, there is an exceptionally high demand for land in the small boat harbor where there are no vacant lands available for lease. On the other hand the city , " is trying to- encourage development at the Seward Marine Industrial Center. Recommendation: Consider using I! different rental percentage rates to reflect supply and demand on various city land areas i.e. the Seward ;II Marine Industrial Center where land is available and development is encouraged and the Small Boat I Harbor where land is in short supply and high demand I4 i : Trade/Exchange. The city has acquired substantial acreage through land trades with both public agencies and private individuals. Most of the bench lands above Nash Road and in the Fourth of July Creek 1) valley were acquired through trades with the Kenai Peninsula Borough for the solid waste site and the elementary school site. l RIGHT OF WAYS, ENCROACHMENTS, and EASEMENTS l' Right of Ways. While they normally do not convey any warranty or title interest and are not y considered real property under general accounting procedures, they are a part of the city's overall land ;a management efforts. These are lands acquired by reservation, dedication, forced dedication, prescription, or l condemnation and intended to be used for public access, roads, trails, parking, and utilities. They are normally ryd dedicated to the public during the subdivision platting process, and there is usually no deed transferring 1, ifi ownership. They generally fall under the management authority of the local municipality providing road services. All right of ways within the city are under city jurisdiction, except for Third Avenue /Seward Highway, Port Avenue, Airport Road and a small portion of Nash Road which are state. The city is responsible for 28 miles of developed dedicated right of ways (streets and alleys). Another three (3) miles are dedicated through 1 subdivision plats, but have never been constructed. These are in the Marathon, Cliff , Bayview and Forest Acres II Subdivisions. There are platted right of ways which will never be developed or used because of topography and t there are additional right of ways that the city should plan for in the future. Recommendation: i ' a) Vacate otherwise undevelopable right -of -ways to enlarge and/or consolidate adjacent lands. b) Plan right of way acquisition to: ii 1) connect Hemlock Avenue and Phoenix Road as an alternate exit from Gateway a Subdivision and collector street for the undeveloped portion of Forest Acres and the land north and west of the two schools. (map 3 -22). 2) extend Chamberlain Road above the horse pasture to Phoenix Road provide an alternate parallel route to relieve pressure on the Seward Hwy (map 3 -23). 1 3) extend Benson Drive through from Swetmann Dr. to Phoenix Road to provide a safer Il school bus route and an alternate egress from Gateway Subdivision. (map 3 -19) Municipal Lands Management Plan May 1995 Y 4 1 ii 23 • N i Sponsored by: Ion • CITY OF SEWARD, ALASKA RESOLUTION NO. 94 -101 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, APPROVING A POLICY FOR NOMINATING PUBLIC PROPERTY FOR DISPOSAL WHEREAS, the city regularly receives unsolicited proposals to lease city land; and WHEREAS, the city has no written policy regarding the identification and nomination of public lands for disposal; and WHEREAS, it is in the public interest to adopt such policies; NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, that: Section 1. City of Seward Lease Policies and Procedures, a copy of which is attached and incorporated herein by reference, is hereby ADOPTED. ill ' n 2. All prior resolutions in conflict herewith are hereby p Y RESCINDED. 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 8th day of August, 1994. THE CITY OF SEWARD, ALASKA k aiit L9 @AA/A- J Dave W. Crane, Mayor AYES: Anderson, Bencardino, Crane, Krasnansky and Sieminsld NOES: Darling ABSENT: O'Brien ABSTAIN: None • 24 CITY OF SEWARD, ALASKA RESOLUTION NO. 94 -101 ATTEST: APPROVED AS TO FORM: Wohlforth, Argetsinger, Johnson & Brecht, Attorneys for the city of Seward, Alaska S. rph ' , CM / • • City Attorney City Clerk (City Seal) 25 r City of Seward, Alaska . Lease Policies and Procedures 1 I PROCEDURES FOR NOMINATING PUBLIC LANDS FOR LEASE . The following procedures have been adopted by the Seward City Council to allow the public to nominate city owned lands not otherwise designated as available for lease development: A. Any person may make written nomination to the City Council for the city to dispose of public lands without divulging specific development ideas or purposes. B. If requested by the City Council, city staff will research and prepare a report on titles, covenants, deeds, zoning, land use planning, other land restrictions, and any planned public uses associated with the nominated lands. C. The Planning and Zoning Commission will review and make a recommen- dation to the City Council regarding the pros and cons of disposing of the nominated parcel. D. The City Council will hold a public hearing on the disposal of the Ill nominated property and, by resolution, will make a determination as to whether or not to dispose of the nominated lands. If the City Council finds that it is in the public interest to dispose of the nominated lands, the resolution shall specify the method of disposal, i.e., lease, sale, negotiation, bid, or request for proposals. E. If the City Council finds it in the public interest to lease the nominated land, the City Manager shall proceed with the disposal process following polices and procedures outlined in the City Code and this resolution. LEASE PROPOSAL POLICIES AND PROCEDURES The following procedures have been adopted by the Seward City Council to guide prospective lessees and the city administration in handling proposals on city-owned lands designated for lease disposal A. The prospective Lessee shall submit to the City Manager a written development plan, including a conceptual site plan, building elevation drawings, a construction schedule, and proof of project financing. B. The lease development proposal shall be submitted to the Planning and • Zoning Commission at their next regular meeting, for review and written recommen- City of Seward, Alaska Resolution No. 94-101 Attachment A Page 1 26 dations, including any special lease conditions the Commission determines to be in the public interest. C. The proposal along with written Planning Commission and staff comments and recommendations shall be submitted to the City Council, at the next regularly scheduled meeting, subject to agenda deadlines. D. Not later than 30 days following presentation to Council, the City Council • shall determine whether it is in the public interest to proceed with lease negotiations. E. Upon directing the administration to proceed with the lease negotiations, the prospective Lessee shall, within 30 calendar days, deposit with the city a cash performance bond in an amount not Less than one -half the first year's lease payment as estimated by the city administration. 1.. If the prospective Lessee does not diligently pursue lease negotiations within 60 days of the date that the Council consents to the commencement of said negotiations, the entire performance bond shall be retained by the city as liquidating damages. 2.. If the city and the prospective Lessee reach an impasse and are unable to come to terms on a lease agreement, the performance bond shall be returned to the prospective Lessee after deducting lease document preparation costs incurred by • the city. Such costs shall include, but not be limited to, appraisals, attorney and actual staff costs, advertising and other incidental expenses. F. If the city and the prospective Lessee reach an agreement on lease terms, the lease documents shall be signed by the prospective Lessee, approved as to form by the City Attorney and forwarded to the City Clerk Once the Clerk receives the properly signed lease agreement, a public hearing will be advertised and held in accordance with provisions of the Seward City Code, and the lease agreement will be presented to the City Council for action. G. If the proposed lease is approved by the City Council, the resolution approving the lease and the lease agreement shall be posted for thirty days as required by the City Code. Barring the filing of a sufficient referendum petition to set aside the lease, the lease shall then become effective 30 days after passage and posting. Once the lease agreement becomes effective, the city shall deduct from the performance bond all lease preparation costs incurred by the city, including but not limited to appraisals, attorney and staff time, advertising and other incidental costs. The remainder of the performance bond, if any, shall be credited towards the rents due, and the Lessee shall be billed in accordance with the city's quarterly lease billing cycle. City of Seward, Alaska Resolution No. 94-101 Attachment A page 2 27 H. In the event the City Council fails to approve the lease agreement within 60 days of the date the negotiated lease agreement is first presented to the City Council, • the total cash performance bond shall be returned to the prospective Lessee. I. The City Council may waive any or all of these requirements as it deems necessary to ensure successful completion of the lease negotiations. LEASE ADMINISTRATION POLICIES AND PROCEDURES The following procedures have been adopted by the Seward City Council to guide lessees and the city in the fair conduct of business associated with lease administration: A. Fees set by resolution of the City Council will be assessed to cover administrative time, copying costs, phone calls, postage, legal notices and other costs associated with processing all lease assignments, amendments, and sublet consent actions requested by lessees. Additionally, lessee will pay all recording fees and will reimburse the city of city attorney time in connection with the requested action or actions. B. Lease assignments and sublet consent requests will be reviewed, processed and approved as administrative functions subject to: 1. All taxes (real, personal and sales), utilities, lease payments, assess ments, licenses and insurance must be current. • 2. All appropriate fees must be paid in advance. 3. City sublet approval will not be required for individual tenant space rentals in buildings designed with separate retail and office spaces. 4. Following evaluation and administrative determination, the city may require a personal guarantee by lessees requesting assignments to corporations which are principally owned by lessee and created for tax and liability purposes. 5. Each sublessee must provide proof of insurance in accordance with the principal lease, naming the city as an insured party. 6. The city must be provided a copy of any sublet agreements, including lease amounts, so that the city may forward this information to city appraisers for future fair market value determinations. Copies of the sublet agreements, including lease amounts, will be provided to the City Council at the next regular Council meeting. C. Amendments to leases that change the essential terms and conditions (lease rate, term, land area, or development conditions) may be approved only by resolution of the City Council. Such requested amendments will be scheduled for Council action only after the following terms have been met: City of Seward, Alaska Resolution No. 94 -101 Attachment A Page 3 28 1. All taxes (real, personal and sales), utilities, lease payments, assess ments, licenses and required insurance must be current; 2. All appropriate fees must be paid in advance; and 3. The lessee's signature(s) must be in place on all required documents. • City of Seward, Alaska Resolution No. 94 -101 Attachment A Page 4 29 NOM Cost- Benefit Analysis Lease is Preferred over Sale Parcel Valuation Summary KPB Assessed and MacSwain Appraised Values City of Seward Harbor Uplands Property • Lease versus Sale Discount Rate Summary Cost- Benefit Analysis Impact of Various Assumed Interest Rates July 27, 2002 Lease versus Sale Alternatives Examines 20 -Year or 40 -Year Lease, and Sale Projected Property Taxes Estimates taxes under sale or lease scenarios Projected Lease Revenues Assumes land continues to be !eased, not sold Individual Parcel Information Results of MacSwain Associates 2000 Appraisals 30 MEMORANDUM ti sF /A4 4 Date: July 27, 2002 • =� V To: Scott Janke, City Manager • - 4 �451� P From: Kristin Erchinger, Finance Director O Subject: Harbor Upland Properties Lease vs. Sale - Cost Benefit Analysis The following information presents the findings of the cost - benefit analysis of the harbor upland property lease versus sale. This study updates the analysis conducted in January, 1998, utilizing Kenai Peninsula Borough property assessment values from 2000, and March 2000 property appraisal values computed by MacSwain Associates. The purpose of this analysis is to determine whether it is in the City's financial interests to sell the harbor upland properties, or to continue leasing the properties. The three alternatives examined include: 1) a 20 -year lease of the properties; 2) a 40 -year lease of the properties; and 3) sale of the properties to taxable entities in the private sector. Summary of Finding‘ The study concludes that it is in the City's financial interest to maintain ownership of the harbor upland property rather than to sell. The financial justification in favor of leasing the properties is even more compelling at this time than it was in 1995, when the issue was first studied. This is due to the fact that while the appraised value of the subject properties increased 49.9% from 1995 to 2000 (from $984,000 to $1,475,000), the KPB assessed value of the land increased 42.7% (from $587,000 to $837,800) and improvements increased 77.9% (from $2,707,400 to $4,816,400). Thus, annual lease revenues for these parcels increased $39,280 ($491,000 appraised value increase x 8%), and annual property tax revenues increased approximately $7,360. f innmdarir_c of Anaiysii The study was limited to examining the direct costs and benefits associated with the three alternatives listed above. It does not consider the impact of potential indirect costs or benefits such as economic benefits derived from private ownership, the loss of higher or better uses of the land, or potential increases in property tax revenues resulting from the increased value of improvements made to the properties. The administration may want to consider these potential indirect factors in a second -cut analysis, before making a final decision. Assnmptinn Cost- benefit analysis is a tool which allows policy makers to evaluate the consequences of alternative public investment decisions. Such analysis however, is highly dependent on the assumptions made in the analysis. The choice of assumptions is important, because the inclusion or exclusion of certain assumptions can have a substantial impact on the results of the analysis. The assumptions included in this analysis are as follows: Assumptions unique to Loose Alternntivvt -. Property taxes are based on the Kenai Peninsula Borough (KPB) 2000 assessed property values. Improvements are taxed by the Borough at full value, but the value of the land is discounted based on the remaining term of each particular lease. For shorter -term leases, the taxable value of the land is much lower, as the lessee is considered to have less of a possessory interest in the land. For longer leases, the lessee is taxed on a higher percentage of the fee value of the land. Generally, KPB assesses land leased from a government agency at a lower value than privately -owned property. -. Annual lease revenues are based on 8% of the 2000 market value appraisals. 31 a Harbor Upland Properties Lease vs. Sale - Cost-Benefit Analysis Page Two ,4 wnnptinn.c unique to Loose Alternative.. enntinuetfr -. For the purpose of estimating property tax revenues, land values are assumed to increase 5% per year, . but the value of property improvements does not change. parcel. -. Properties are re- appraised every 5 years; appraisal cost to City is $1,500 per p • -. Cost to City of administering each lease is $250 per year. Assumptinns uniquo to Solo Altvrnntivv -. If the properties are sold, property taxes are based on the 2000 appraised market values of the properties, as determined by MacSwain and Associates (see Appendix). -. Properties are sold at 115% of the 2000 KPB assessed value. -. For the purpose of estimating property tax revenues, the value of land and property improvements - increases 5% per year. -. Cost to City of selling each parcel is $2,000. tt.ssumptinns shored ley all altprnntjyas Property tax mill rate remains at 3.12 mills (the current mill rate). -. Benefits (i.e. lease revenues) accrue at year -end. -. Net present value (NPV) is computed in present dollars. Prpretlmr, The steps used to conduct this analysis included: 1) formulating alternatives, 2) estimating the costs of each alternative, 3) estimating the benefits of each alternative, 4) discounting the costs and benefits to their present value, and 5) selecting the best alternative. Selecting the best alternative —in terms of costs and benefits— requires determining which alternative has the highest net present value (NPV) of future cash inflows and cash outflows. A positive NPV indicates that the benefits of a project outweigh the costs associated with it. In my assessment, each alternative yields a positive NPV, suggesting that all alternatives have a net positive benefit to the City. However, a comparison of the three alternatives suggests that a 40 -year lease of the harbor upland properties yields a higher net benefit to the City than either the 20 -year lease option or the sale of the properties. T)iscnunt Rate A comparison of the net present value of the alternatives requires selecting an appropriate discount rate. The discount rate is intended to reflect the rate of return that could be earned from an investment of similar risk. The choice of discount rates is important because it often has a significant impact on which of several alternatives is optimal. Historically, many government projects are evaluated using a very low discount rate such as the 20 -year municipal bond rate (i.e. 4, 5 or 6%), since that is thought to approximate the cost to a government of borrowing funds. - There is a "fairly broad consensus both inside and outside the public sector however, that rates more realistically reflecting opportunity costs should be used. Accordingly, in recent years, the Office of Management and Budget of the federal government has frowned on the use of discount rates lower than 10 percent per year for the evaluation of public programs." A related argument suggests that since public projects are funded from private sector resources, it is appropriate to select a discount rate approximating the private sector's cost of borrowing. Such a discount rate considers the opportunity cost of funds in the private sector of • Truett, Lila and Dale, "Managerial Economics ", p. 647. 32 Harbor Upland Properties Lease vs. Sale - Cost-Benefit Analysis Page Three ,Sensitivity Analysis A sensitivity analysis was conducted to determine the extent to which the discount rate affected the outcome of the analysis. An examination of discount rates ranging from 6% to 18% revealed that the analysis is not sensitive to the discount rate up to 15.9%; at all rates below this rate, the 40 -year lease is preferred to the 20 -year lease, which is preferred to the sale. The discount rate of 15.9% represents the switch point; at this point the order of preferred alternatives changes and while the 40 -year lease is still the preferred alternative, the sale is now preferred to the 20 -year lease. At a discount rate of 17.7% and above (the pivotal switch point in this analysis), the sale alternative is now preferred to both the 40 -year and 20 -year lease alternatives. What exactly does this mean? It means that in order for the sale to be the preferred alternative, the City would have to be able to invest the proceeds of the sale in an investment vehicle yielding at least 17.7 %. These NPV results are summarized as follows: NPV of 40 -year lease and 20 -year lease > Sale up to discount rate of 15.9% NPV of 40 -year lease > Sale > 20 -year lease at 15.9% NPV of Sale > 40 -year lease > 20 -year lease at 17.7% Figure 1: Sensitivity Analysis of Discount Rates from 6% - 22% 40 -Year Lease is preferred to Sale up to 17.7% discount rate 4.000,000 W- _ e 1& `F i14`F ' c '1K' ▪ 5 S 3,500.000 .� y �, �; 1,� �. , , ; , 3.000,000 r •� " :. Ys, Ea • a A Z x t Zit .- v '`" � w , s, , rr a .. c + c ty.. a 2,500,000 : a � f - -':' •,- x�;.5+: , ..�_s t 1� � ' '. � .t. Il ; � xj k' T � 1 :r" 'rte r.' - .* - r e 2,000.000 r i : ° h ▪ ik� ,, : i s x 8. t 1 a. G 4. 1,500,000 ` s .. +` `° . 4 . .,,,,:,,,:ii,..:, LL , F . 500,000 s3:4 O T ., 6% 8% 10% 12% 14% 16% 18% 20% 22% . Discount Rate Alt. 1 - 20 lease — Alt. 2 - 40-yr lease Alt. 3 - Sale 33 Harbor Upland Properties Lease vs. Sale - Cost - Benefit Analysis Page Four The following table highlights the preferred alternative — the alternative with the highest net present value — at each discount rate: 10% 15.8% 15.9% * 17.6% 17.7% ** Alternative 1- 20-yr lease 1,473,055 974,246 968,132 873,202 868,106 Alternative 2 - 40-yr lease 2,005,003 1,090,848 1,081,749 946,052 939,053 Alternative 3 — Sale 1,098,728 972,833 971,113 943,558 942,029 * Switchpoint - Represents the point at which the order of preference changes, and the sale is now preferred to the 20 -year lease. ** Pivotal switchpoint - Represents the point at which the sale is now preferred to a lease. A sensitivity analysis of the sales price of the properties suggests that the analysis is not highly sensitive to a reasonable range of the sales price. In fact, for the sales price to make the sale alternative more appealing than either of the lease alternatives (at a 10% discount rate), the City would have to sell the harbor upland properties for 234% of their 2000 KPB assessed values. It is important to note however, that the combined 2000 KPB assessed values for these properties is $837,800, while the 2000 appraised values total $1,475,000 (an increase of $637,200 or 76%). Therefore, a further sensitivity test was conducted to determine the pivotal switchpoint of a range of sales price based on the appraised values rather than KPB assessed values. In this test, in order for the sale to be preferred to either lease option, the properties must collectively sell for approximately 133% of their 2000 values as appraised by MacSwain Associates. Sensitivity tests of the other variables in this analysis (e.g. property tax rates, land value increases, appraisal costs, lease administration costs) are ancillary to the overall lease versus sale decision. Cnncl usion In conclusion, the results of the cost - benefit analysis - -given my assumptions -- suggests that at any discount rate less than 17.7%, it is in the City's interest to lease the harbor upland properties for a 40 -year term (or even a 20 -year term below 15.9 %), rather than to sell the properties outright. Of course, there are other factors to consider in making this decision, such as indirect costs and benefits, potential higher and better uses of the properties, administrative feasibility, analyzing alternative assumptions, and political viability. Based on this cost - benefit analysis alone however, the City is better off maintaining ownership of the harbor upland properties. 34 Harbor Upland Properties - Cost Benefit Analysis Table 1: Parcel Valuation Summary , KPB KPB. MacSwain Annual Assessed Value Assessed Value Market Lease Rate Annual City Parcel of Land of Improvements Value as % of Lease Property ID Lessee (a) (a) (b) Market Value at 8% Taxes 1 -17 Mark Clemens 129,300 604,700 250,000 8.00% 20,000 2,290 1 -21 Orca Enterprises 145,100 486,200 225,000 . 8.00% 18,000 1,970 1 -19 Charles Bald 31,600 85,800 100,000 8.00% 8,000 366 1 -20 Juris Mindenbergs - Sublet 108,900 141,000 175,000 8.00% 14,000 780 1 -22 James Pruitt 126,500 761,100 225,000 8.77% 19,741 2,769 • 1 -23 Dot Bardarson 29,800 271,900 50,000 8.00% 4,000 941 1 -24 Linda Lorz 29,800 71,900 50,000 8.00% 4,000 317 1 -18 Juris Mindenbergs _ 236,800 2,393,800 400,000 8.00% 32,000 8,207 837,800 4,816,400 1,475,000 119,741 17,641 w CA (a) Source: Kenai Peninsula Borough 2000 property assessments (b) Source: MacSwain Associates 2000 City of Seward property appraisal City of Seward - Harbor Upland Property - Cost Benefit Analysis -Lease vs Sale E. Harbor Upland Properties - Cost- Benefit Analysis Table 2: Discount Rate Impact on Net Present Value Total Order of Discount Net Present Preference Alternative * Rate Value 1 40 - year lease 6.00% 3,701,028 2 20 -year lease 2,088,591 3 Sale 1,233,471 1 40 -year lease 10.00% 2,005,003 2 20 -year lease 1,473,055 3 Sale 1,098,728 1 40 -year lease 14.00% 1,281,871 2 20 -year lease 1,096,085 3 Sale 1,005,956 1 40 -year lease 15.80% 1,090,848 2 20 -year lease 974,246 3 Sale 972,833 1 40 -year lease 15.90% 1,081,749 2 Sale 971,113 * Switchpoint ' 3 20 -year lease 968,132 1 40 -year lease 17.60% 946,052 2 Sale 943,558 3 20 -year lease 873,202 1 Sale 17.70% 972,029 ** Pivotal Switchpoint 2 40 -year lease 939,053 3 20 -year lease 868,106 * Switchpoint - Represents the point at which the order of preferred alternatives changes. ** Pivotal Switchpoint - Represents the point at which the sale is now preferred to a lease. City of Seward - Harbor Upland P 3 y - Cost Benefit Analysis -Lease vs Sale Schedule At Alternative 1: 20 year lease Assumptions: Discount rate 10.00% Property tax mill rear 0.00312 Annual tease maintenance costs 8250 Lard fair market value increases per year 5.00% Improvements fair market value increase/ yr 0.00% UAW rats Is a% of wombed land value Leases se- appraised every s years beginning 2005 Land value increases reflected each lease renewal Appraisal cost 81.500 Year 1 is 2003 NPV computed in carrot dollars Benefits (i.e. lease revenue) accrue m Mar-end 2003 BENEFITS: Year I • 2 3 4 5 6 7 8 9 10 11 12 13 Lease revenues 118,000 118,000 118,000 136,600 136,600 136,600 136.600 136,600 174,340 174,340 174.340 174,340 174,340 Property taxes 17,641 17,862 18.000 18.144 18 295 18 454 18,621 18 796 18.980 19173 19 375 19,588 19,812 Aud Benefits m 135.641 135,862 136.000 154,743 154,895 155.054 155,220 155.395 193,319 193,512 193,715 193,928 194,15 PV of Annual Benefits 123.310 112,283 102,178 105,692 96,177 81524 79.653 72,493 81,986 74,607 67.896 61,791 56,239 COSTS: Appraisal every 5 years 0 0 0 1.500 1,500 0 Annual contract administration 250 250 250 250 250 250 250 250 250 250 250 250 250 Annual Costs 250 250 250 1.750 250 250 250 250 1,750 250 250 250 250 PV of Annual Coats 250 250 250 1,750 250 250 250 250 1,750 250 250 250 250 Annual Net Present Value (PV Ben - PV Cost) 123,060 112.033 101,928 103,942 95.927 87,274 79.403 72,243 80,236 74,357 67,646 61.541 55,989 co BENEFITS: Year 14 15 16 17 18 19 20 - Lease revenues 222,507 222,507 222,507 222,507 222,507 283.981 283,981 Property taxes 20 ,047 20,293 20,552 20.824 21,109 21.408 21,723 Annual Benefits 242,553 242. 800 243. 058 243,330 243,615 305,389 305.704 PV of Tad Benefits 63,872 58,124 52,897 48,142 43,816 49,934 45,441 COSTS: Appraisal every 5 years 1.500 0 1,500 Annual contract administration 250 250 250 250 250 250 250 Annual Costs 1,750 250 250 250 250 1,750 250 PV of Annual Costs 1,750 250 250 250 250 1,750 250 Annual Net Present Value (PV Ben - PV Cost) 62,122 57.874 52,647 47,892 43,566 48,184 45,191 PV of Taal Benefits 1,484,055 PV of Taal Costs 11.000 Taal Net L'resent Value „______I1,473.055 Property Value at end of 20 yr lease 82,222.933 City of Seward - Harbor Upland Property - Cost Benefit Analysis -Rase vs Sale • Schedule B: Alternative 2: 40 year lease w..wsse: Ui.war rate 10.00s Parrots as 2411 Mk 000312 Mo rl kw agrnnee too 5230 Laid Der wide voles Ornery pr par 5.009 lepwraare Mr whet value Yeareyr. 0009 • Lana tale is 89 dappling Mad **Mt Learn ne•Ipeals d eery S yin 148114444 2033 Lod vabr Imam NNMd sub low raaral - Appraisal raw 31.300 Yam III 2003 WV 001.4.4 is ulnadollars BaeBuiLa. fens WM/4Sa 5. 830 sd , ac Year 1 2 3 4 3 6 7 8 9 10 11 12 13 14 13 16 Lease revenues 118,000 118.000 111,000 136,600 136600 136.600 136.600 136,600 174.340 174.340 174.340 174340 174,340 222,507 222.507 222.507 Property taf c5. 17.641 17,862 18,000 18,144 18,295 11,454 18621 18,796 18,980 19.173 19,375 19,588 19,812 20,047 20,293 20 • Annual Benefits 133,641 135.862 136,000 154.743 154.895 155.034 155.220 155.395 193319 193,512 193,715 193.928 194,152 2422353 242.800 243,058 PV of Annual Benefits 123,310 112,213 102,178 103.692 96,177. 87,524 79453 72.493 81.986 74.607 67.896 61.791 36,239 63.172 38.124 32,897 r;l) }7S: Appraisal every 5 years 1.300 1.300 1.500 Annual contract administration 250 250 250 250 230 250 230 250 250 250 250 250 250 250 250 250 MIMICosts 250 230 250 1.750 250 250 250 250 1,750 250 250 230 250 1.750 250 250 PV of Annual Costs 250 250 250 1.750 250 250 250 250 1.750 250 250 250 250 1.750 250 250 Annual Net Present Value (PV Ben - PV Cost) 123,060 112,033 101,928 1033 95,927 87,274 79,403 72,243 80.236 74.357 67.646 61541 55.989 62,122 37.874 32.617 urtvt:►'ir }: Year 21 22 23 24 25 26 27 21 29 30 31 32 33 34 35 36 Lease revenues 283,981 283,981 283 ,981 362,440 362,440 362.440 362, 440 362. 440 462.375 462.573 462375 462375 462,375 590,376 590,376 590.376 Property taxes 22.033 22,400 22,764 23,146 23548 23. 969 24, 412 24 ,877 25,365 25,877 26,415 26,980 27,573 28.196 28,850 29.536 Annual Benefits 306.034 306.381 306.745 385.586 385,988 316.409 386,852 387.316 487.940 486.452 488,990 489,555 490,148 618.372 619.226 619.912 PV of Manual Benefits 41.355 37.638 34,257 39,147 33,625 32,422 29.508 26,151 30,759 27.992 25.476 23,187 21104 24.212 22.035 20.054 CI ISM Appraisal every S years 1.500 1.500 1.500 03 Annual comma administration 250 250 250 230 250 250 250 230 250 250 230 230 250 250 250 230 Annual Costs 250 250 250 1750 250 250 250 250 1750 250 250 250 250 1750 250 250 PV of Annual Costs 250 250 250 1,730 230 250 250 250 1.750 250 250 250 250 1,750 250 250 Annual Net Paaent Value (PV Ben - PV Cost) 41,105 37.388 34,007 37.297 33,375 32.172 29.238 26, 29.009 27.742 25,226 22,937 20,154 22.462 21.785 19,104 Total PV of Benefits 2,027.003 Total PV of Costs 22,000 Total Net Presys4 Value 2.005.003 Property Value at end of lease 5.898,103 . • • • City of Seward • Harbor upland Property -Cost Benefit Ana{ysis -lease vs Sale • • • Schedule C: Alternative 3: Sale of land to taxable entities Assumptions: Discount rate 10.00% Sale price as % of 1CPB assessed value of Ir 115.00% • Property tax mill rate 0.00312 Land fair market value increases per year 5.00% Improvements fair market value increase/p 5.00% NPV computed in current dollars BENEFITS: Year 1 2 3 4 5 6 7 8 9 10 Sale of land 963,470 0 0 0 0 0 0 0 0 0 Property taxes 19,720 20,706 21,741 22,828 23,969 25,168 26,426 27,748 29 135 30,592 Annual Benefits 983,190 20,706 21,741 22,828 23,969 25,168 26,426 27,748 29,135 30,592 PV of Annual Benefits 893,809 17,112 16,334 15,592 14,883. 14,207 13,561 12,944 12,356 11,794 COSTS: Total Costs of selling properties 16,000 PV of Annual Costs 16,000 Annual Net Present Value (PV Ben - PV Cost) 877,809 17,112 16,334 15,592 14,883 14,207 13,561 12,944 12,356 . 11,794 BENEFITS: Year 11 12 13 14 15 16 17 18 19 20 Property taxes 32,121 33,727 35,414 37,184 39044 40,996 43,046 45,198 47,458 49,831 w Annual Benefits 32,121 33,727 35,414 37,184 39,044 40,996 43,046 45,198 47,458 49,831 CD PV of Annual Benefits 11,258 10,747 10,258 9,792 9,347 8,922 8,516 8,129 7,760 7,407 COSTS: 11 12 13 14 15 16 17 18 19 20 Total Costs 0 0 0 0 0 0 0 0 0 0 PV of Annual Costs 0 0 0 0 0 0 0 0 U 0 Annual Net Present Value (PV Ben - PV Cost) 11,258 10,747 10,258 9,792 9,347 8,922 8,516 8,129 7,760 7,407 Present Value of Total Benefits 1,114,728 Present Value of Total Costs 16,000 Total Net Present Value $1,098,728 City of Seward - Harbor Upland Property - Cost Benefit Analysis -Lease vs Sale • • Schedule 1: Projected Property Tax Revenues for Harbor Leased Parcels East of 4th Avenue Scenario - Land continues to be leased, not sold Yew 1G+B Award VeIe 1 Year Yew Yrs Year Yaw Yew Yew Yew Year Year Yea KPBTra1 loan Prawn Laud kwnoveanl Treble 0.00312 2 3 4 3 6 7 t 9 IQ 11 12 1473101/ Mark Gums - treaMrbrLas l sad 129200 604.700 734.000 2.290 2.310 2.331 2,334 2.377 2.402 2,427 2,454 2,483 2.312 2.544 2.371 14731021 Ora E lava - Pe5r.II Br Herat. 143.100 486.760 631.300 1.970 1.992 2,016 2.041 2.067 2,095 2.124 2.154 2.196 2.219 2,234 2.291 14731006 L1rW 11416C. We Milne, ld48k 1 31,600 13,100 117600 366 371 376 312 311 394 CO 406 413 421 421 436 1473100/ 1. Midamrp 51614MWIa.. Lai 7. BR 1 109900 141.000 249.900 710 797 115 933 133 174 193 911 942 967 993 1.021 14731012/14510415 J. PaklMrrbsr G.liTr14 A. talk I Neel 126,500 761,100 987,600 2.769 2.789 2.110 2.132 2.154 2.878 2.904 2.930 2.951 2.917 3.018 3.050 14731020 Dal & Lis Btdak Mrk.. Lek 311 291100 371.900 301.700 941 946 951 956 961 967 173 979 986 993 1.000 1.007 14731019 Dade & Uri. Lars •Maids. 1.41 : SA 29,800 71,910 10000 311 322 327 332 337 343 349 333 362 369 376 383 14731017 Jr. MI wp - PMr6e. Ler 3A Bek 236100 2,122,800 2,670.600 3,207 8.335 9.374 1,414 9.457 9.502 3.549 1.399 1,651 8,705 9.763 8.05 Area Pgerly1 937900 4,945.400 5634200 17,641 17,862 11.000 11,144 11.295 11.454 18.621 11396 11,910 19.173 19.375 19.398 Yea Year Y. Year Yea Yes Yew Yew Yer Yew Yew Yrr Year Year Yaw 13 14 13 16 17 11 19 20 21 22 23 24 23 26 27 2. 611 2.647 2.685 2.723 2.767 2,111 2.151 2.906 2.957 3.011 3.067 3,126 3.111 3.253 3.321 2,330 2.371 2,413 2.451 2.505 2.555 2.606 2461 2118 2,779 2.141 2,907 2.977 3.090 3.127 443 454 463 473 483 494 505 317 529 542 556 571 316 402 618 1950 1,011 1,113 1.146 1.192 1,219 1.351 1.296 1.341. 1.317 1 .434 1,414 1.536 1.590 1.649 3.093 3.119 3.156 3.195 3.236 3.279 3.324 3.372 3.422 3.474 3.529 3.317 On 3.711 3.779 1 .015 1,024 1,032 1.042 1,051 1.061 1.072 1,093 1,095 1,107 1.120 1,134 1,141 1.163 1.179 391 400 409 419 427 437 448 439 471 413 496 510 524 339 535 1.896 9.932 9,022 9.093 9.172 9.233 9.337 9,426 9319 9,617 9.720 9,928 9.942 10,061 10.116 19.812 20.047 20,293 20.532 203124 21.101 21,401 21,733 22,053 22,400 22.764 23,146 23.343 23.969 24.412 Year Yaw Year Year Yew Yer Yaw Year Yaw Year Year Yra Year Uri Wee UM Wet 28 29 30 31 32 33 34 35 36 37 36 39 40 20 el year 40 3.393 3.161 3347 3,630 3.717 3.909 3.905 4,006 4,112 4,223 4.340 4.463 4.391 343.071 . 910.271 3.207 3.292 3.310 3.474 1571 3.674 3.782 5895 4 .014 4.139 4.270 4,108 4.332 391,993 1.021.302 636 654 674 694 715 737 761 786 812 939 167 897 929 93,844 222 .444 1,708 1.772 1.938 1,908 1.912 2,059 2,140 2,225 2.314 2,408 2.506 2.610 2,711 191.944 766.655 3.941 3.921 3.999 4.090 4.146 4.235 4,349 4.448 4.552 4.661 4,775 4.895 3,021 333.612 990.359 1.193 1.213 1,231 1.230 1.270 1,291 1,311 1.337 1.361 1,317 1 .414 1.442 1,472 19.069 209.792 571 599 607 626 646 667 690 713 737 763 790 111 141 79,069 209.792 Q 10.317 10.455 10,600 10.752 10.912 11,010 11.256 11.440 11.634 11231 11,052 12,271 12.313 621201 1,667,069 24.177 25.365 25.977 26.415 26,910 27.573 29,196 28150 29.536 30.237 31,084 31.109 32231 2.222.933 5191.103 AalanYflp114: Valise of Properly nuns and rNHvo* Tad Prepay Revere eau riff 20 $301.262 Pn, tea an ra4 0.00312 Tarr revery Tr Reran rev yet 40 31.210.123 PA. areal lare.r le e reared air dl.M Vella of Papery Orr yrs 20 32.222,933 No ndsel lavme Is sward reds allerrov react , Vara armory airs yew 40 55.898.103 • City of Seward - Harbor Upland Property - Cost Benefit Analysis -Leese vs Sale Schedule 2: Projected Property Tax Revenues for Harbor Leased Parcels East of 4th Avenue Scenario: Land is sold rather than leased MarSte le Valuer( 1698 Y69rof Yew yw year yeer year yew Year Year Yaw Year Yw Year 1(Wh: Lars 9ruww7_ Lead Wpoverent L*tr,_ 1 2 ] 4_ 3 6 7 1 9 10 11 12 1473101/ Mart Claws - Pao Maim. Les l ..d 2 230200 404700 11534.700 2,667 2.800 2.940 3.817 3.241 3.403 3.374 3,75 3940 4,137 4,344 4,361 14731021 OmEieplir • P.S.aM Bow (9604'. 223.000 416,200 711.200 2.219 2.330 2.446 2.369 2,697 2.832 2,974 3.122 3.2 3.442 3.614 3.793 14731006 Chrlee B961C. Lae Marisa. lar 4 04 1 100,000 15.100 115.100 310 609 639 671 705 740 777 116 156 699 944 991 (4731009 1. 14146,abr49 26111•54r164. Lat 7.819 1 173.000 141.000 316.000 916 1.033 1,017 1.141 1.191 1,231 1.321 1.387 1,457 1329 1,606 1,696 14731012/14510613 J. PrudmMw6a. G ..Tr.r A. 111111 Heed 223,000 761.100 986.100 3.077 3.230 3.193 3.362 3.740 3,927 4.123 4,329 4,346 4,773 3,012 3,262 14731020 Ow A Lire 11e6wr Markle, 2a:3B 30.000 27/9000 321,900 1.004 1.053 1,107 1,163 1,231 1.212 1.346 1.413 1,484 ' 6.5$ 1.636 1.711 14731019 Meld A U.O. Laaa •Mr96, Lae SA 50.000 71.900 121900 390 399 419 440 462 40.5 510 333 362 390 620 630 1 Jerk Mi• 01110 s- P Maim, L 13A810 400,000 2.422.900 21224100 9.107 9,247 9,710 10.195 14703 11240 11102 12.393 13.012 13.683 14.346 15.063 ABerl Property Tail 0.e0e651e: 1475000.00 414340200 19.720 20706 21.741 22329 23.969 23.161 26.426 27.741 29.133 30.392 32.121 33.727 Yew Year Year Year Ye* Year year yew year Year Yaw Yew Veer Year Yew 13 14 IS 16 17 11 19 20 21 22 23 24 23 26 27 4299 LOU 2210 1944 3,821 6.112 4418 6.739 7273 7,429 7,101 9.191 8,600 9.030 9412 3385 4164 4,393 4413 4,144 5.016 5.340 5,407 3.891 4112 4491 4116 7.136 7,314 7,990 1.041 1.093 1344 1.205 1.263 1329 1.395 1,463 1331 1,615 1,696 1.791 1170 1.963 2.061 1.771 1.159 1.952 2050 2,152 2240 2,373 2,491 2,616 2,747 2.894 3,109 3.110 3.339 3506 5325 3801 6.093 4396 6.716 7.052 7.401 7.774 1.163 1.571 9.000 9430 9.932 10.419 10.939 1314 1194 (.909 2.089 2.192 2.302 2,417 2.339 2.663 2.799 2.931 3195 3.239 3.401 3.371 443 717 733 791 130 972 915 961 1.009 1.060 1.113 (•169 1.227 1.289 1.332 13116 16.607 17.433 11309 19225 24186 21. 195 22,235 23361 24.336 23,763 27051 21.404 29,924 31.313 33.414 37,184 39044 40996 43.046 45389 47,438 49,31 52.322 54.939 57,683 60.369 63.591 46,779 70.117 V.Ire of 190 9e V4Ye d4rl 2 Yew Yew Yew Yew Year Y. Yew Yew Yw Year Yew Year Yew b.,..,........... Wpoweerr 21 29 30 31 32 33 34 33 36 37 38 39 40 r per 20 r war 40 9.956 14454 10.976 11.325 12,101 12.706 13.342 14.009 14.709 13.443 14287 17.028 17.679 2267.77335 6.017.07135 9.284 4699 9333 9.590 10070 10373 11.102 11,637 12,240 12152 13.494 14,169 14377 138742333 3.004139.97 2.164 2,272 2.386 2.305 2.631 2.762 2,900 3.045 3.199 3.337 3.523 3.702 3.917 492912.71 1,301429.90 3181 3.963 4.059 4,261 4.474 4.691 4.933 5379 5,439 3.710 5.996 1,296 6.610 831.44207 222463643 13416 12061 12664 13297 13.962 14.660 13343 ' 16.163 16.971 17119 11.710 19.646 20.621 2,61441687 4942332177 3,730 3.937 4.134 4.342 4.35I 4.796 3025 5.276 5.540 3117 6.101 6413 6.734 /3409633 2.264172.37 ' (.420 1.491 1.565 1.664 1.726 1.812 1.903 1.999 2.091 1203 2.313 2.429 2.530 323.43619 151,174.63 32111 34.53 36,251 38.064 39.967 41.963 44.064 44267 41310 31.009 53360 56.231 39450 7419.729.76 19172410.14 73,623 77.304 91.169 13.227 19.489 93.963 91,661 103391 101774 ((4.213 119.923 125.919 132.2151 16,769.90222 44493,344.66 A0442906 1e411: Mae 471Pro,my rasa and Pr96.m 0. Ta.lhrresty Ts Reeserdtrayw20 562.101 Ra9rty sac will nee 0.003(2 Tad haply Tea Rowan dere yw 40 3,423.828 L 6t awed wire lsarm pa yw 3.00 Vales d Lang 9t lelrrrraarr.ew year 305 (6,169.903 1ePowrr.11 wise mewl Waage 5.00% Vakr of Laud A lawrot orrs e5. r yew 40344,495443 City (If Seward - 9lsbor Upland Property • Cost Benefit Analysis -Lease vs Sale • A 146e$Ya W ttil - ri►i4. ;k.; . iial Site Simakap a 24,025 SF 1 )negew Subject Property Data, Analysis, & Valuation: Parcel 1 - Warr Frontage Nape AeeeplStseet 1apevesaute South Huber Spec* and Fourth L eila; MstkA Clrmw Avenue veldt curbs, p a% sbeedights and sidewalk. 20-ket IdntYintiue Sublessee Not applicable paved walkway nordt side Lease No: 6x•009 lathes: Leaden: 1301 and 1303 Fralh Avenue, Sewed, Alaska Paddle Water: Cdy of Sawed legal Dee:rimier= Lot IA, Block 1, train' Subdivision Public Surer: City of Seward Comet Use Bey Tiaras Spotting Good ad 1(udwee Send Public Utilities Trkpbnse GTE Alaska T•p•papby; level and et steel gad Basesesb and lastridisar S•koot sewn seamed bisects moth' • • • portico (ass attached emerald) r r - . Other Fester= Carter lot �'s e ms • • Twain Harbor Commercial (HC) Subject P+wPerty �-+l+ min: #"_ Parham None requited Photograph n447",•.m : r ...1 ' .. l 1 ■ _ '7.^1.1 • a -� • .. u1.� 1�I .�, L AaasxNa 147 -31411 4 ;v , Y T ArrsurW DW 1999 M01Bate 1122 Assaulted Weary: Dena Aped 15, 2000 Take By: SJM Wrest 2000 1994 1994 ltryae0an Bete Laud bummed: Merit 14, 2000 Laud Ve r 5152,N1 531,401• N/A IfsPedd By Steve Mar-Stein lspruwaest Vane l a'1N =jai N/A Repraxaativs: te Lam lephone eostrend Total Vera 5737,608 3435,200 N/A • Weave amble teaebo1 boron envoi Sown 004111 at t�al SewN a64a1 ltl iNt w iitwpt«1iiii1 •a =23 The dm end far and new dm Small Bost Harbor is strong with • Lead Vera Basest on the preceding discussion end make the memo °gbed and 11eet Ilse li miad supply of land aveihble. Go the down side, demand is Cateasiao ODmm�ve adjustments, the current slot ram for the subject t � ' B� ''' —' , — — seasonal Mies would make it difficult to absorb a aipJSard income esdmaled in the 310.00 to 311.00 per sgrm foe rage. This Vera in a Make maybes of the existing and mwmnpated and was develop= Sather suggests die highest and bat me of the subject would be 24,025 SF at 5111.011/41t 324[.023 amine osaaoaeial 24,023 SF at 51 /4005° w 3264,271 From the maces dace disemed in 8, we hex Mewed the Lad Vane 7150,800 (ltd) Market Aaatyst and following eoclmpacables as being the ant data meltable. Property Vdrtlaa Tidier qf C0PalIKaCoapaedm No Location Sale Date Sale Price Size (SF) Price /SF I SEC of Fourth Avenue sod 7/94 5105,000 9,000 3(167 Athens Street Weer tide of Third Avenue 9/95 325 000 3,000 5133 NWC of Third Avenue end 9/9S 581,000 9,000 39.00 Washington Stsaet West side of Fourth Avenue 9197 59s,000t0 6,000 5(5.t3 We side of Fish Avenue 147 3170,000m 9,000 511.50 Eon side of Fifth Avenue 5193 374,500 9,000 51.211 • (I) Wades 310,000 of Semolina, (2) Welds' 566,500 if iweovenaa vane The compatibles listed above involve six sub in or neer downtown Cualisradve Lad Sand Further, each nmpaable is zoned CBD whirl is similar to Vela Analyst the subject's HC male[. As on be sari, these sale yield. nnge of 31.28 to 515.12 per squire foot. Excluding Comparable No. 4, the range is tighter at S123 to SI1.67 per square foe. Based on the ap,ad erasure o0 commercial Wet vales in Berard, it is ow opinion the subject's value would be new the upper end of this range 42 Schedule 3: Projected Lease Revenues for Harbor Leased Parcels East of 4th Avenue Scenario: Land continues to be leased, not sold Initial Annual Year Year Year Year Year Year Year Year Year Year Year . Year Lessee Lease 1 2 3 4 5 6 7 8 9 10 u 12 Mark Clemens -Parcel 1.17 20.000 20,000 20,000 20.000 23. 152 23, 152 23, 152 23, 152 23.152 29,549 29.549 29,549 29,349 Ores Entreprises - Parcel 1 -21 18,000 18.000 18,000 18.000 26837 20.837 20, 837 20, 837 20 ,837 26.594 26.594 26,594 26.594 Cbrtes Bald/C. I,altedn - Parcel 1 -19 8,000 8,000 8,000 8,000 9.261 9,261 9,261 9.161 9.261 11,820 11.820 11,820 11,820 1. Mindenberp Sublet - Petal 1 -20 14,000 14.000 14.000 14,000 16.207 16.207 16.207 16,207 16,207 20,684 20,684 20,684 20,684 J. Pruitt/Harbor Oaleway Int. - Parcel 1 -22 18,000 18,000 18.000 11.000 20,837 20,837 23,837 20, 837 20.837 26,594 26594 26.594 26,594 Dr & Uwe Heideman - parcel 1 -23 4,000 4,000 4.000 4.000 4.631 4.631 4.631 4.631, 4.631 5.910 5.910 3.910 5,910 Daniel & Linea 1.az - Parcel 1 -24 4.000 4,000 4.000 4.000 4.631 4,631 4,631 4.631 4,631 5.910 5,910 5.910 3,910 Suds Minde bee$s- Preel1 -18 32.000 32.000 32.000 32,000 37.044 37,044 37,044 37.044 37.044 47.279 47,279 47,279 47,279 Argued Lease Revenue: 118.000 118,000 118.000 136,600 136,600 136,600 136,600 136.600 174.340 174.340 174.340 174,340 Year Year Year Year Year Year Year Year Year Year Year Year Year Year 13 14 15 16 17 18 19 20 21 22 23 24 25 26 29,349 37,713 37.713 37.713 37.713 37.713 48.132 48,132 48.132 48.132 48.132 61.430 61.430 61.430 26,594 33.942 33.942 33.942 33.942 33.942 43.319 43.319 43,319 43,319 43.319 55,287 55.287 55,287 11.120 15.085 13.085 15085 15.085 15,085 19,233 19,233 19.253 19,253 19.253 24,572 24.572 24.572 2 0.684 26.399 26.399 26.399 26.399 26,399 33.693 33.693 33.693 33.693 33.693 43.001 43.001 41001 26.594 33,942 33,942 33,942 33.942 33.942 43,319 43 .319 43.319 43.319 43.319 55.287 53,287 55,287 5,910 7,543 7.543 7.543 7,543 7.543 9,626 9.626 9,626 9,626 9,626 12,286 12.286 12.286 5.910 7,543 7.543 7.543 7.543 7,543 9.626 9.626 9.626 9.626 9.626 12.286 12.286 12.286 47, 279 60.341 60, 341 60.341 60341 60.341 77,012 77.012 77.012 77.012 77,012 98,289 .289 98,289 174.340 222.307 222.507 222.507 222.507 222,507 283.981 283. 981 283.981 283.981 283.981 362,440 362.440 362,440 W Yew You Year Year Year Year Year Yew Year Year Year Yew Year Year 27 28 29 30 31 32 33 34 35 36 37 38 39 40 61.430 61.430 78,403 78,403 78,403 78,403 78,403 100.064 100.064 100.064 100,064 100.064 127,710 127.710 35.287 53. 287 70. 562 70,562 70,562 70, 562 70.562 90.037 90,057 90.057 90.057 90.057 114,939 114,939 24,572 24.572 31,361 31,361 31,361 31,361 31, 361 40.026 40.026 40.026 40.026 40,026 51,084 51,084 43,001 43,001 54. 812 54 ,882 54.882 54. 882 54,882 70.045 70,045 70,045 70,045 70,045 89 .397 89,397 55.287 55.287 70,562 70, 362 70, 362 70. 562 70.562 90.057 90,057 90,057 90.037 90.037 114.939 114,939 12,286 12,286 15.681 15,681 15,681 15.681 15.681 20.013 20.013 20,013 20,013 20,013 23,542 25342 12,286 12.286 15.681 15.681 15,681 15.681 15.681 20.013 20 .013 20,013 20,013 20.013 25.542 25.542 98,289 98.289 125.444 125,444 125,444 125,444 125.444 160.102 160,102 160,102 160.102 160.102 204.335 204,335 362,440 362, 440 462.575 462.575 462375 462,575 462375 590.376 590.376 590.376 590.376 590.376 753.486 753.486 4sss.m tiors: ye/we of l e uss and Previte! Year 1 is 2003 Total Lease Revenue Wu year 20 4,261,508 Lean raw 1s 89 . of appraised lard value Toul Lease Revenue glair year 40 23,242,915 Leases re- appraised every 5 yews beginning 2015 value or Properly after year 20 52,222.933 Land value blames refeced orb lease renewal , value of Property after year 40 $5,898,103 Land fair value hymens per war 5.0096 City of Seward - Harbor Upland Property - Cost Benefit Analysis - Lease vs Sale • • • • • • PORTION OF SEC. 3, T1S, R1W, SEWARD MERIDIAN . 147 -310 I �• r t ...... igt) . 1 «.._._.. MARINA SUB ©I V I S I O N • OCEANVIEW SUBDIVISION NO€T H "' "HA *o *••- THI RO AVE. • SUBDIVISION C� Z ,......,.—_" • 1,15 AC. • 41. • (8) .88 AC. • D A .51 = A Ma .47 AC . m 112' - a 6 -. Q • n • J ( .39 • AC. t CD 4 N" .55 AC.� 8 (1) c, Q Q • ' c'� IA 188' ~ a �) : 145 • i 104 .../ • �•�.� FOURTH AVE . �� • ' » 1 «. �. ... ---. .. H ; t 1 --- i . • 1 ... 1 .. ............. «. «.. «.._..... «..« .«....... «»... ». «.. _ 1 '.-•., ... ......,.,..:. �'•'.. ......... ..ur•� « »...,,,R «•» sw�wwxt.;•. « «• « «.» ::xatttv».M.att• :n..miia .............. ::::::-..- ~'' f �f� . iE.. li..il u..D.3.1..u./11 D..11..i� �..1....« .. . y . tt..ii..a.. � «a..li..!1.. ..il..0..J.." .. OAT_:''•. _ E _ 1998 r ' o. �•..« . . mu S:! r . • . y . ..•Y..R DOS MA/ Y 'Aril .tr.:rn � L Caif.« COR _" �.iL R .a.{ au . MO (Ma MUD C �' .....11. •4, • 44"121:10/1=1:1=11 IU ' �a :=a MAMA c'""' 1 .t° MINDED FOR ANY : ••• mutt ISMS a.SI aW octAIMIW t .{ % :;. . ONIER um O4.EYOl t �ON ,t� tp •$w t:tttut .f.:: 14 M0 18 SSESSOr�91, al w : � ! 1tAl LON 7714 ,,�.,.. f 11� .obl s NOTE — 7�!lelaoi'i a 1d•N.nnw�. 112/." t.. c.... • , IMa83`rirAiF62fiti'i+ Subject Property Hata, Analys & Valuation: Parcel 1 -18 Site She /Sham 49,920 SF or 1.15 sass/ recao;ular Site Description Water Frostier None l esacs laris Mirdeabargs AceaejStreet Imprevemeak: South Harbor Sucet and Fourth P Se6lasur Not applicable Avenue with cubs, gutters, IdmtlBatloa Weediest% mid sidewalks.. is Lena Ne: 674I8 also a 20 -foot roved walkwq providing access on the east aide Location: West aide of Fourlb Avenue in the Small Boat Harbor District, Seward, Alaska UtHitler. Legal Description: Lot 3A Block 1, Marina Subdivision Public Water: City of Seward Curran Hsu Brut Ina -Rataamothetsilaro41 PubikSewut City of Seward Electricity: Seward Public Utilities Tetepheam GTE Alum Tcpegrupby Level a d ar shit pads E..ei...4..d Ratrietiens 20 -root W7ity Dampen/ biaae lot aw small triangular Memo! (450 SF) • ».: ,, ; . Other Fau uera -.A.,'" �' loo our lot. r, no aocar b Fourth Avenue. iG Harbor S.bjaeaPeoperq +. Comroneial riwe a� r:s Paridrp No inquired 0 ., , , - , ,- 4 -4 4 .--- 4 ., !: ' y, . . ; t ° - " I Assessor Na 147 -310.17 - • Assessment 1999 ME Ream 1122 Assesmst Dace April 15.2000 Takeo Sy: SIM ar0 VIA a r 2000 1999 1998 leopard'. Data Date Inspected: March 11, 2000 Lead Value 5252 200• $209000• 5209 ,1101* Juspee4d By: Steve Ma:Swain Improvement Value &girl ankjig p1.190308 Reprumtatirar No tape= Total Value 52475,000 51,707200 5I,707200 •Duow taxable laeebold assist G6' oraeeweO•Sr 1y rly d reary 0041/ 114 list Sinai i{omu eiitei1 .( Lead Vales Basted on the preceding discoed= and a etc review of the other ° t7 11 f Conduit= a 1s, the market value of the appraised parcel is estimated b i' ~ f 311. be 50.00 per spore foot This develops: • a . ► -- i � p ,, =m l 40,920 SP at r 5399,300 i f ]! i s) N. HAR BOq S 1! ' �(l Laud Vales 5400400 (Rd) if i ajel e....7*:t. pir E Z A ►11 l r.� ` ! i ( et m ar l_ } H a • > In v m r 4 W to a .., : 0 fr) . 0 1. H ~ w 7 r4 Q ,- err 0 F ZZ In 40 n S. HARBORf,S 1 1 W e.. ° / -'00 . \ I . . . 1-4 Nr co e N 3 • _ u..1 03 45 Q �*�` r • i • - - • • , . . • - / • . -.( ' ---- - ... • - • . • • . • • • • . • PORTION OF SEC. 3, T1S, R1W, SEWARD MERIDIAN 147-310 • ' -...... I ,• 1.........,• t .... ...... M ............... .....................___.....MARINA S UBDIVISION .............,........................ • _ ........ .....- • OCEANVIEW SUBDIVISION . *--. .............. ORT1-1----.HAR-BOR. . THIRD AVE. SUBDIVISION .A. 0-) cn z • * 1 AC • - , (8) i .88 AC . . 47 AC 112' 7A • • ................ ' = 8 . 33 e 3A CO • 8 " s•-1 . 5 1.0 • CD 116' — 8 (2 e4? ' • S 8 ..... . %EP u) .55 AC .01? 6 ca ( 1) ki "' 4:) 6 .) cep 145 it• • e IA 19 ' --t . 104 *.r. . '‘. • /"............**. FOURTH AVE . / / n .. . r I t 1 • I 1 • . ". 1 -............_.... i. ., ...._ ....j . .. _... ... 1 1 1 t f . i i 2 i , r i , 1 i . i 1 i , I 1 El i - . ....-----,... : .......................... .... , .. -------"i::-.".-..r.....................................................„ .... - L.r. . .. .• ' • . , il •- .- •. (c... 11.3..1 .. II .. ji .. 1.11..11..11.2...11 '..... 1/1...11 J!I .. 1 i r -- ..... — i 1 '",.... . — I I 91113 MAP IS 19199/1214 iuntm oArt-....kik. lg. Ina r. gu. ""....."---- ,•3=ss au= :::::• . ". . 4SLIZI: 4...49 . i MR 11919A1 Pf141iarAl 1 k/I1 19 99 lassiv.evi 404 4 . • CU :UM ram ......=, .40 4,..e.,.. 4.4"1".4.02 . 6%'"4 ZS C 1 4) :74V Ai rt:0 31 rAlti: 1 : 2 : 1 1 -•••••••••Wilna" i . Ciro =3 Milt ...... ir 4..:* ' • INT IWO Me ANY I I .......4 ma • gnu U NCLUMS1. 1 ' • . 4 Ne.. row gm or mommittom i�I NT/i 11174 -'" • 11ac$!iii Asioeiateai . Subject Property Data, Analysis, & Valuation: Parcel 1 -20 SttsSiee/Sbape 22,205 SF /elongated Site Dreriptisa Water Frontage Nano Lessee: Mis Mindenberga Amass/Sires! Improvements: Fourth Avenue end North Harbor Pro 1 ' Sublease: Nor applicable with street lights r IdentiReatio. Lean No: 6-017 Utilities: Lentip: 303 North Harbor Seed Seward, Alek Pub& Water: City of Seward Legal Description: Lot 7, Block 1, Mains Subdivision Public Sewer, City of Seward Current Use Commercial Building - Breeze Ism pricing Electricity: Seward Public Utilities Telepbsae; GTE Mask Topography: Y, a y r+^ * y 0 jsph7'; Level Ind at sheet grade z . o / • e � > Laswanb end Rapiet(o.o: 20 hoot Ss .�� ° � r �,)X ' nr ,+ r a `. utility a. east aide ° I , f„ r .; Other Fmtona Ctxner lot. Seward Hi eh*a r.aee 2:oaiep Harbor Comma sial (HC) Parkiej Nooeregeired Subject Property , — s?_ - • Pb 17-- ' 1 . - Assessor Nr )d7 -31109 PM J r • pr P_ . . - .l - AesaaretDrsa 19l9 SAW 11.22 - _•.y* - '.,". t"E •.`.. - 21011 1999 1998 Darr. April I5, 21100 - Token sat Land Value silo*. 511 2641• 111,200• Inspecting Data Date l March 11, 3000 LPvevenset Valaa Stp.aw 1�g Sl5]A00 Taal Vales Inspected By: Stave MacSwmin • Demotes troths leeehetd Moot .960 5111,f* 5211,2* ltepreseaativs: No response or dSurd WHO 117 C$ &ammoce.eat Its blicc ifiii Alifbcitlt d iMiSe viViAitsoeiate' Highest and Bast Use Tit deemed dd for land nea the Small Boat Harbor is stress with a Lea Vdae Bard on the prowling di**ien and roadie6 the Vacant �� M k limiwd wtpply of Ind available. . On o the downd Co cooperative adjustments, the crests trait value for the subject is alysis seasonal which would au it diffimh to absorb a estimred m the 57.00 to 11.00 range. flit in supply. Market anslyeis of the existing and comimnpyrd lend mete pa foot M further suggests the higher and bud use of the subject %odd Ise mrineeummeseisl. 22,205 SF at 57 OOJSF ■ 5155,175 22,205 SF at 364101SF w 5177,641 Market A.mlydsand Frain the maker dam discussed in Chapter 1, we have seamed the Land Value 5175,0* (Rd) following Property Y alraW. Ro °g i° a being the bed doh availaWa Td/r e f Cespensiler Compere/ is Parcel .1-21 No Location Sale Date Sale Price Site (SF) PriccJS1 SEC of Fourth Avenue and 7/94 5105,000 9,000 311.67 Adams three Wort sills of Third Avenue 9195 525,000 3,000 5133 NWC of Third Avenue end 9/95 511,000 9,000 59.00 Washington Street Wed side of Forth Avenue 9/97 595,000rn 6,000 515.3 Wet side of Filth Avenue 1/97 3170,000411 9,000 511.50 Tad side offilth Avenue 5/91 579,500 9,000 $1.21 (1) iodides 510,000 ofd.nditioa (2) Ie 566 ,500 d'oapovemeat valve Comparative Lead The comparables listed above involve silt sale in or ter downtown ValneA.aquis Seward Further, each comparable is awed QM which is similar to the subject's HC zoning. As nn be seen. these sales yield a range of 1131 to 515.122 per square hoot. Excluding Comprable No. 4, the range it tighter at 36.21 to 511.67 per square foot. Due to the subject's elongated shape, it is our opinion the current brit value would be ore the low rid of the range. 47 . .. - . ..• . . • ... ' ' ( • . • . • PORTION OF SEC. 3, T1S, R1W, SEWARD MERIDIAN • 147-310 i : i • .—....—...— / • L..— ................................ ................. .... --- .. .. . MARINA SUBDIVISION - -------------- ...... .............. ....... ................... ........... -.--- ........ ....... .. .................. OR:PH ..... OCEANVIEW SUBDIVISION THIRD AVE. SUBDIVISION ............ 1 ........................... .u) . = 1 1 15 . 7 (8) 3A . 51 AC . Z 2 ................. - lc. .1. 1 . 88 AC . . 47 AC . • D. . .4. 0 ii 112' -10 33 A CD CD i . e 0 r. I o e - 116' @c, • S: .... 116 i I .t. ve - . 55 Ac .41, - (1) 6 u) ilef An ---.----..----"••.......... ..I --I 6- Zo 1A ' II ' • - 4' . 104 .. cszp.. • Origffigi .; 1 - /*-----.., FOURTH AVE . (MUNE 1 -1q / _ i . . • ( . 1 t i ii 11 \ 1 1 1 1 3 I L i 1 i 1 j 1 1 : I 1 .... .....J......:......L. i ri . ' : ; : 1 ............................. „....-.—.... I ' ... ..., _ 1 " 1 ' I I : 1 ......... ... .....,.......-- ....... 1 .....7::::::: 2 " * " . • "---"":::11:::::..n.—n n . 1 ....,...---.. ...... ...... ,‘—..-.., .....U.:,........„ ..........., ..... • 0. I i ./. i 0 a II :I ii n n ii p ii •.-..... 0.11_11.1.11.1LE.J..1.1.. ,. • i q i ii? — . i : I .................. •-.. 1 • r : 1 ...... 1 1 1 . 1 1113 MA, 13 rotencui DA 1998 - 4114 L W mr, Cm, 4:12171 r " .....'''' 7 FON NOW Pera714 1 rierrfflirt . 1 4111 V, r. .,... i 1 ..4. ..4. 4 ...... , 4:811•011 '' i I OELETE A. ' =IOW ii 1 cr.: :::s g 1 :111.13 'mat innitcuffyity S 1 ...0: r••••■::4,44.. . I r '31)4111 C C ITD " Y I .'S...." ..____ _.. 'tf * 104 04 14T4n g .. !:.-...;::::-. • TO 1 Assessor's Map . 1 NOM Ilne 4 1 1 .4.4., mnyc - • UAW MN WTI 1 7 k 4 II t Mimi 5:1'.... 1.2 18 -I_ • u•sw.• ...-...- = 100 • Subject Property Data, Analysis, & Valuation: Parcel 3 -21 SHe She/Shape 20,589 SF / slightly ingular Site Description Water Frontage None Lessen O Property Access/Street eet Improvements: Fourth Avenue sad South Naito Ideati Sublessee: Various tenants Street, with rubs, gutters, actor lights and sidewalks Lease No: 65-072 Leaden: SWC of Fourth Avenue and South Harbor, Small Bost Harbor. Seward, Alaska Public Water City of Seward Legs! Daaiptlw: Portion of Block 8 Oaauview Sabdivisicrn Public Sewer City of Seteasd Cornet Use Rdni1/Ratsormt Electricity: Seward Public Uali6a Telephone VTEAhuka ToMR+pky Level and at street grade Lumen' and Restrictions: 1ot publlc easement ur • aat ea and south sides and 511foot Manske h emanem 3smnt j • ., - - '>Y'! t r ,. Other Femmes: Cotner kw Stile <: t': Using: �, .Using: Narbor Commercial (HC) ti Subject Property 4 , lj : - " II _ _.,_ - . _ Parddag No4famseqused Photograph i ,,, +" _ 2 It 1 II 'Jill r r -- • - 1 r 1 1, Ammer Now 147- )10.07 - .,-- -= -� —^ 1!!9INIB 1122 ear ` • :. Asesamet Watery: ti Date: April 15, 2000 Taken Hy: $1M Year 211E1 1999 1999 leapsctlea Data Date inspected: March 14.2000 Laud Vales $124,3N• $63,541. $63,500• leprevewat Value 5199.009 slim auto Impeded By: Stev• MacSwaoi Total Wm 5323,300 5179,300 5179,311 Representative No response • Dante tumble ivarbold :totes my chore toarn 121 ally dSeward 00411 t22 rkieS7,iii .Aasbejattsl IBiakSwaia" t:sl Lad Valeo Based on des preceding chscussion and melting the uearary Hfgbrl and Bat Use The deouod to Ind Dear the smelt Bost Herber u arms with • Cerdrdaa COinp vs adlawemtr, the ar,ee unit value ter the arbjed is atiammd is the 110.00 to 511.00 ( � . ... , . limited supply of lard available. On the down aide, damned L develops per agate fast ranee. This Vacant 'operand which would nuke it difficult to absorb ■ sign/ham increase in supply. Market analysis of the mining and oomeapined Lod uses farther suggests Ore highest and ben use of the subject would be 20,519 8p al 570.0015E 5205190 amine amsaaeiel. 20,905 SE at 511.0015E .5726,473 Land Value 5225,000 (Rd) Merlon Aamhads sad From the market dote discussed in Cbspa 1, we has selected the Eropvrry V fonowin g mtopaables as being the best d.0 available. Teak eCempea6le Campanili b Parcel l, I No Location Sale Date Sale Price Sac (SF) Price /SF SEC of Fourth Avenue and 7/94 5105.000 9,000 511.67 Aden Street Wet side of Third Avenue 9,95 125.000 3,000 55.33 NWC of Third Avenue and 9195 111,000 9,000 59.00 ' Wnhiogmn Street West aide of Fouts Amax 9/97 595,000tr> 6,000 $13.53 West side of Fifth Avenue 1/97 S170,000ro 9,000 51130 East side of FM Amine 5191 574,500 9,000 55.21 Mindless 510,000 of daeolitim (2) Includes 566,500 of improvement vela Comparative Lard The comparables listed about involve six Wet in or near downtown Valise Analysis &nowt Further, nub comparable is moed CBD which is similar to the subject's NC maim. As an be sea these gala yield a rage of 51.21 to 51112 per aware foot Excluding Comprable No. 4, the range is tighter at 512* to 511.67 per squese toot Hued on the upward prams on eonunaeul lad Values in Sewmd, it is ow opinion the subject's value would be roar the upper end of this nage. 49 . - . . • • . . . . ) r" . • ..........,„,..,. . . . . . • . • • . . • • . • . • • . PORTION OF SEC. 3, T1S, R1W, SEWARD MERIDIAN • • 147-310 ...... 1 [...Y./ . .. ... ....._........_ • ... i ... ............_ ..... .................... • MARINA SUBDIVISION • OCEANVIEW SUBDIVISION AVE . . NORTH HARBOR-- THIRD SUBDIVISION .../.... . 7 .,_________________________, cn • z - ....____ . _ ______ _ 1.15 AC. .. C.T1 • i .............. ... 0 . 1.88 AC (8) . 7> e 3A . 51 AC,....... M PTN ) A . (..) 9 i - • e . 47 AC . 33 0--? Co 0 112' _ 1 - i g LI -2 -°) . . Si .39 AC . CO . 33' e s= 116' @ . 0 8 Do • • . •CP En . .55 AC . ( 1) lik 5 '"■.. .1 -461 • ,,.. in . 145 o'• licl " r' .., 1 FOURTH AVE . - S . 1 .. / . . n Ir ,z.,•, 1 . \i . . , ,. , 1 il • ....._........ E.1... 1 - 7 --- ...1 1 .• 1.. .... ..... L 1 • 1 I i • 1 1 • I 11 i i - i 1 1. ....., •.---- --- -,... E , 1 ......., i ............ .........................„...„.... . ... ..,.. .....,,,,,,:......::::::: • II „...... ....-.52- b.11.1.1.111.1.1..fluait.L111.1.2.3.3..a..a.1.1.1 li,i..1 .. I: .. 11.1..11..ii..11...1.1..11.3.3...: • I r . .........• • • • I 1 MIS MAP IS PflEttygi 1 .... , na 1- dim .Nta ..." at. :atc 3 . Ir :Utz., estnin lir):::•aS • MN triPSAI ISHINsulag i ".•"•1 . • irierW I tr !MI (I .".1. sans MISS Mils :sus I 4::: 111".41,1%..; • 1 l i% • . Mrs., • OM TE A•0 :WM . 11 ;AU rgrA MAMA r...... ' . • IS/rS/010 ;Oft ANY I . • • Al= .:::sa • - - CM UU0 OCCOMCII svo op :. • - . .::: 1%72_ : ...pima USE 04 REPIUNItititl• 4.,.; 7. • . kkaet: io 1 - , Assessor's* tii. ."".. . ---, . ...... "9 ".".96:11A TT* i__.... ::!' • . : • . • • . . . .....1 . .- ( . . ''... .- .. ... • . • . . . • . . . PORTION OF SEC. 3, T1S, R1W, SEWARD MERIDIAN 147-310 1 • ..... ........ ..... ....../ i 1 L...,-. • , ! I I MARINA SUBDIVISION . ..... ................. ..... .................„.. ..... .............. ...... _ - .... - ... - . - ........... NOR ............ OCEANVIEW SUBDIVISION ... --- THIRD AVE. , . SUBDIVISION I U3 • 1.15 AC. . . I › e 3A .51 AC ( 8 ) 1.88 AC . . 0 S -_____......... ... ........ ...... . ---.. .47 AC . 33 e .. . 1, P TN .1 A e 112' 1 C1:1 —a. ( ..40 8 I= 116' Q _.... a . ) • .55 Ac.p -g (1) ir ,o) 6 [ID 145 ; 6 Z. 1 1 6) • . 1A : :' *-.. It, . ' Cn ... 0 T .— 4 FOURTH AVE 1 7 . . I-7, lir i , 1 1 1 1 1 I ; , i 11 l . i 1 L 1 i i I II 1 s..... L.7..........Li......i.... 1 1 i ....... ...... e — ••••••11••:•—••• 1 —•••• I ... .......,,................"_„„ • ..„ ........ , ,..........., • .... J ..,....--..... 1............... ..._.. —..................„::::.,.................... _,,,„:„„.. ....... . _ ...„:„....,..:::: ....., . '::11 .......... . .......... a . .., • 0 0 ''...... 1 „.... ( 1. 11.1.1..11..1..R.1.1.1.1.".L.11 r. F. :::....--- .... ---1- P n .11... • I I 11111 MAP 0 PRHARECI i t ., ill ...Et. . DATil D I) toss r"" 4-.L.n .4 i....=. ..m.s 4311 . S.15 =la FOR KENAI 0•Piiiiiias 1 . 0:1 1::: 4•41 1..... 4t ..... ' !. A 1 1 AMONG MI% OR 10 ; . as 1117%. __ I SSilli: UM, CM! r ....., 'ea I I ''." :„ C Z I OI N :R e" V MESE AbO :::VIIN ' c•-• Tiz* ... t . 1 i. OMER Mt OR ICFRESENIA11014 10 1 l SI ssessOr's III "1* Porn Iwiltilkou. figgeho r :.::.. .th . 6 . Iwo L uact : Lo: a S i omen 43.. 11 ." • • NO1E - ASSOSSOrS ' o liNgurnbers Showil I In Ellipses SA MS Kenai Peninsula Borough ' 1 1:0„:71Zurri A % l in I s r eNt4 . Alt1.11 1.1.^.r Re...........t cu...., -.. .... . • 11 '-' IOW . atmnr • a s IMarStitth A+r4clitd1 Subject Property Data, Malys* & Valuation: Parcel 1 -23 SBe Si e/Shaps 4,250 SF / tectangv a Malys* • SiteDewipdan Watalroatage: None Lessee: Dot and Lune Sadiron Aceem/Street Improvements: Fourth Avenue with cabs, gme% enact lights and sidewalk' • Property Sublessee: Not applicable Identilkadoe Utilities: Lease No: 76-064 • Public Water. City of Seward Iwntba: 1317 Fourth Avenue, Seward, Alaska Puna Sewer. City of Seward Legal Deurip11oa: South 1/2 of Lot 5, Block 1, Main Subdivision Eludidty: Sewall Public Utilities Correa Uu: Bardasoo's Studio - Gift sboplart studio Telepbaar OT5 Alaska . Topsgnphy: Level and at =bent grade Easements sad Rnhrktloss: None mad ', • '. 9 y�1ti `- -Y , i ' 's J ? ear Other Fester Private easement provide arras to r 4: a a < } 1-_, -1 :+` .: -., 4- -" Teal: Harbor Coolmgeid (HC) ll I +� • e, s . Parkhng: • None required Subject R'ropaty / -' '1 ' t q" -;� ` ^.� Masser no 147- 310.15 Ybotograp► ✓. 1}" „ i�oirt • � ., :rr # , .d , 1 , Ameniment Data 1999 Mla Rata 11.22 � , AwsweaelBarryn .. -^--( 9 .- ' II In d 7d5 ,, Year 200D 1999 1998 La= Yoke 523,200• n6,'5$ SAM* Data April 15, 2000 Takeo By: SIM Impreveaent Value SZ71 500 Ste? swan Invader Data hate laapetaad Mirth 14, 2000 Total Vane 5217,100 5312,290 3312,230 inspected By: Steve Mr:Swain • Mules usable leasehold rarer Repreeenttiva Dot Barden= responded by telephone and facsimile City dtwwa 12f aty Otheed0aeft pr 1 =) I'd hig"v:inir«iit i) Higbat and Be, Um The demand for hod near the Sandi Boat Herber is amore with • T. V•M Bared en the preceding discussion rd voicing the neo®sy lathed apply of Ind available. On the doom ride, dead is Ceedueafea comparative adjustments. the current art value for the abject 1a Vaeent =so= which world make it diffiadt 0 absorb a significant Waage admitted is the 311.00 to 312.00 per =tare foot mega Tdtis in supply. Merkel aoatyala of thc existing and contemplated lad use develops • bather suggests the highest and het use of the subject would be trine eommesciIL 4,250 SF at S11.011519•• 546,750 4,230 SF at $12.30ISF a 551,300 From the market data 8iseueed in Chaser t, we lave selected the Lad Valve 550,000 (M) Market Analyds and Pro perty Vabsatlaa following anaerobic, ss being the beet data available. Table yCarpw4b CoapnelY Anil .1-23 No Location Sale Date Safe Price Size (SF) Price/SF I SEC of Fourth Avenue and 7/94 Ad 5105,000 9,000 Sl 1.67 Moo Street Wert side of Third Avenue 9 'h r 195 525.000 3,000 1533 NWC of rd Avenue d 9 501,000 9,000 59.00 Washington Street Wert aids of Fan* Avenue 9/97 97 595,000*» 6,000 515.13 Wet side of Fifth Avenue 1/97 1170,000os 9,000 51130 East side of Fifth Avenue 5/91 574,500 9,000 5525 • (1) Include 510,000 of dentition (2) Includes 366.500 of improvement vale Compered= land The comparables lined above involve an sane near it of o downtown Value Asmgeds Seward. Further, each comparable is zoned CBD which is similar to the subject's HC snout. As can be seen, these ales yield a range of 5525 to 31542 per again foot Euhuding Compemble 14o. 4, the sage is ti3nta at 352t to 311.67 par square foot Based o= the upward pressure on commmcial land values an Seward, it is our opinion the subject's value would be near he upper end of this range. 52 • . / • • PORTION OF SEC. 3, T1S, R111 SEWARD MERIDIAN 147 -310 1 .. . MARINA SUBDIVISION OCEANVIEW SUBDIVISION -- '''''' — NORTH---.1-1ARBOR.. . THIRD AVE. • SUBDIVISION C-11 I i,i5 AC. w 1 C D /r 3A .51 ®C. D ... (8) PTN .) A . 47 AC 1� 0 112' i t _ t g Z.� m . 39 AC . , O' 16' • JuI 1� 13 w � 4 • 17 • C+Z% En ' .55 AC .1110 $ (1) Q ti° 6 N 145 "ie. 66, SA .:' • �, i 104 • ••�.. FOURTH AVE . 1 _‘ ( A r • t i i 1 s . 1 1 \ \*_.„—...- i r t 1 r I. « ».... «..... . ....... N . « . ». ..» �„s:no « .............ur "�' :tu.... « »....r»• ••... ... ..aruNwry :•:» ::... M: ::S:.snu«. «..`n. L 3:,....a nu..... f.•� t =..1 �� 34 ft »�+.. �1 { 31. C 1'i i .fl .i! »14.. .» } ,1 . p } :1 i.. ? 9 ...» `•••,,� ' i J �r »...... r .. .... ........ » ,•, »... ».. 111 iwA MAR u rnEt i T :'. . 199E r.. sss •::s trx: La: sa crx:! a:•a:a ...::a , +. r . con KEtAAr resi+lu:tix} 1 Oft w 99 A MEW 10 7J • e:i::: ••••••1 41:::: sa :: . . .y e • ; �00oYGN AORIO t° Dcr 1. AO i:t �;, t MAtt1NA 1 INfENOED CO1 ANY Kan A0o ::7 �UIYtO a; � assn: I :............ SI ,:: 11.4111.4.41.4"0* - I }, 00101 UN OR INPREREN1 rtoM jj sits "mail MA1 0P1014. er' } { " :• : :ss::.. 0 ss::1 "-' tO t ssessor's Ma .... 1 i1 eQ " `' NOTE' - Assessor'; 81 ivumbers Show to Ellipses MAt1M k aue tow F 1 c 1 groat • MAMA Imo t, 1. ■ a E nom t snooze , AOEeAAne. o...__. •• • - - --- . no • .. want 4 1111000211 mom . 'fitael3w iiiA1sotuidl) Site Shu/Shapar 4,250 SF 1 recta"i'dst Subject Property Data, Analysis, & Valuation: Parcel 1 -24 . Site Dtaaiptlea Water Prentiss Nave Access/Street barren/mats Fourth Avenue with cabs, tia Lease Daniel E and Leda S. Lore sheet lights and sidewalks Property Sublessee: Not applicable UtOitis: Ideod&aibu • Lease No: 71-063 PubNe Water. City of Seward Londe; 1319 Fouetb Avenue, Sewenl, Alaska Pobile Sewer. City of Saved Legal Deserlptiw: North 112 Lot 3, Block 1, Marine Subdivision Electricity: Seward Public Utilities Correia Use: HOMO of Diamond WHIM -OM shop TeNphser GTE Alaska Topography: Level mad at sued grade xs . , t 1 , ; - EnmeNS and Resoicdswa None noted •1 , .k..., " x t ,; c , Other Fsetare Ikrvate easement provides suss to �_, ( ,r t + � lay le: e4,) .S•.i 7.4edap Harbor Commercial (HC) holdup Nape required w Subject Pro y :-=-A -node ormamottamm - r Photograph - 1 ■ 4 " 1. _ ArsnrNe: 147- 310-16 p a 1 Aarasant Dots 1999 3319 Rats 11.22 �..� r r • ' / l — Ase asst Mary: 7:::"':7,-- _ — — _ s.a - -•s- Y csr 2000 1999 1 i .P;4∎4∎ ,. •.. .. er= a - - Data: April 15,2000 Takeo By: SRM Lead Vac 526,500* 526,500' 52609' Datelospeeted: March 14,2000 improvesst Vales 571.!00 Mat , bespstitea Data Toes! Valve 595,4011 595.700 595.700 Impeded By: Steve Mr-Swain Valve • Deems duds )emehok legend Representative: No response by raw:dobese W W W scree om IN . IRO - brwitiitA,s? bieSI • ' jR1 : "? j • The demand for load near the Saud Bost Heber is sage: with a I Load Vales Based a the wades dbeasior and making the nanemry 19ighset d Bee Ue limbed supply of surd mailable. On the down side. dswd is Caadaetea oommeetive ad j'ustmstr, Ike curlew unit ashes for the nibjed u (f1AB� ''''—v— antuq- Ae seasonal which would oaks it difficult to aheoeb a siplfieent increase estimated in the 311.00 to 512.00 per square let rags. This Val in depIi. Mseket analysis Mlle existing and eontempLad bed ma develope Arthur sutgas the highest and best me of the aubjeel world be 4,290 SR at Sll 00t5F 566,730 marine contmwitoi. 4,250 S< at MAWS' w 951,000 Fro the market data dismissed in Chaps 0, we have selected the Land Pelee 990,000 (R Property Vd�. aid following compambles s e. being the beat data available Zak 4 /Caa'!0 Casinosse !Wae/1.74 No Location Sale Date Sale Price Si, e (SF) Prict/S1 I SEC of Fatah Avenue and 7/94 3105,000 9000 511.67 Adww Sued Wen side of Third Avenue 9/95 523,000 3,000 5033 NWC of Thad Avenue and 9195 511,000 9,000 59.00 Washington Street Wed ride ofFamth Aveas 9197 195,000m 6,000 315.13 Wed side ofFilth Avenue 1/97 S170,000o 9,000 51150 East side of illk Avenue 3/91 374,700 9,000 90.20 miasmas 510,000 of dasolitics (2)1=1061 066,500 of improvement vibe Comparative land The 00 bks listed above involve SIX salts in or near dormtowe Vsdne Analysis Seward. Further, each comparable is zoned CBD which L similar to the subject's HC toning. As tan be arm, these Saks yield a range of 55.25 to 51532 pm square foot Excluding Compereble No. 4, the mega is tighter at 31.211 to 511.67 per mow foot. Based on the upward pressure oe csmmercW land vas is Sewed, it is our opinion the subject's value would be ow the upper end of this rage. 54 • t • . T1S, Rita, SEW'ARD MERIDIAN . 147 -310 PORTION OF SEC. 3, o ,•yam~~ �• »» 1...... f f • »� . MARINA .SUBDIVISION , NOR TH. -•..} 1BO... . • - --•- ON SUBDIVISION THIRD AVE. OCEANVIEW SUBDIVISION Z N 1,15 AC• 5 AC. D PIN.) A t_ i,86 AC. . 47 AC 112' 1"k$ ®c; O ' CO � O r 16' , Ili Q • :7 N .55 AC .45, $ ( 1) '" —i; 104 0. • � .. 1 , ..._.. � . FOURTH AVE t t ................. r i r t \ t.... L. .. ».a.. i : .......... I • -- » " ...... ,. «K r... ••••••••••••• set:: � :...» »t» rrrrr>«..vw.:. ..�� . .. « it ^ .... r t:: . `::. ' � � . � ::: ` . - 7:11_,..::::::::=::: .� t 1 • 7 R it :1...::11..... J` 1J ,_! .Q ti — » « :i l .t,'............1!...... 1M3 MA► 13 tatEErtW j::::s: :. •' .. .;1.11.�i . }� ...t. r.... spa E[NA1 r is j. fps ^r + ..•,.. ». ». ter >r w t1AtaAsa•.w 0 _1 [ 11 � �:s::st:f f •'' OM :WSJ assts::t i ,tr ss'• 7y MtENOEo 301 N`s i r -•»» > :s s itt O p 11EM1ESEN� asst `:rra Mr i USE ti;; .• ,` -� f sssset 109D t _ ."4" Lr:. -a rag), 14 1 SE 04 i txt to ew... DAT €•••.' 1 tlts No. asnss� fs • • I:" maw, 4,........ •1~ ` _ u :-- ... NOTE /ass essor's Voce-Numbers c f •-� n . i t t4 r w! a. r NANtIQN.ss... '? y130E1 --r..ntiYY. NOI IA� f. t �i I. _� � awsN • vRsiu.i :tii!?# 0 f Sub jeet Property Data, Analysls,diValuation: Parcel 1-22 SkeS6d3Yape 16184 SF /shghtl7r Sits Description Water /rootage Nene Lessee: lame T. Part AaeuIShaet Improvements Noah Harbor Street, Third Avenue and Fourth Avenue with curb Property Sublessee Various emants gutters, and sidewalks on two green • Identitsatka end street lights Lew Ne: 34-043 Utilities: Leaden: 1400 Third Avenue end 1401 Fourth Avenue, Seward, Alaska Public Water , Z+0' otSewad Levi Dma ipt3ea: Portion of Tract A, Block I, North Harbor Pub& Seim: City of Seward Subdivision Eleetrkity: Seward Pubik 1161i6e Current Use Convenience Store restaurants, reset. offices Tstephaaet ME Alaska . 'Topography: Level aural t Nat grade . Esweeuts sad Restrictions: 1S -foot utility ememeat through ceder of mod. 10 -foot utility easmet m north side Mimed c ' , + Other Features: Prime earner lot - 4 1 Wr ,} .. Zeaiug: Harbor Commercial (HC) Fr -t • 'a Paehiugs Noce rotpdred Subject Property 4 _ r i,. ■ A , i Photograph ,,., -.� ,w m u Assessor Now 147. 310-12 t, 1 4 r Assemmw Data 1999 MM Rata: 11.22 Amwemnt AMary: • - ." Ya_ar 2000 1999 199N Date ApnT 15.2000 Takeo By: 5194 Lead Value 390,210• 567,400' 367,40• Data Date Inspected: Much 14.2000 Improvement Value YAM Vila 8467lia Inspected Sy: Steve MaeSwaim Total Vales 2903,700 3534,700 5534,700 • Repr seetattve Lessee's representative contacted appraises • Donate usable 1mr6otd:terse awesome rose es tb'darwda0.Nr 17e 14til&W1 s lldlMCll I me�tvaLi;.�tstlelrl�asi Alghmt mad Be, 11m The deneed for lard near the Small Boat Harbor is smog with a Lead Vales Based on the preceding &emission and middy( the mammary (HABU)Aralys:As 'limited supply of land available. Oa the down side, dead is CaaalNisa comparative adjustments, the anent unit value for the mbjeet is Vanua seasonal which wood mars it difficult to. absorb • signifinm increase estimated in the 513.00 In 214.00 pr square foot rms. This in supply. Market areiyds of the edging and aotempiated land uses develops further wag en the highest and best use of the subject would be marinemmmcrciai. 16,404 SF at313.00137- 3214,292 16,484 M1 at 314.0(431 - 3130,776 Markel Aol red From the market dare dfseunsed in Chapter 1, we have selected the Laud Valise 5223,P00 (Rd) V followiy( comp :abet es being the bast data available. Tahk 4 /Cemparabkr Cowendas Pree11 -22 No Location Sale Bate Sale Price Size (SF) Price/SF SEC of Fourth Avenue and 7194 5103,000 9.000 311.67 Adana 3trat . Wen side of Third Avenue 9/95 525,000 3,000 3833 NWC of Tbad Avenue and 9195 531,000 9,000 59.00 Washington Swot , West side ofFant' 90'7 593,000x) 6,000 515•33 Weal side ofPifhAvenue 1/97 3174100[4 9.000 211.50 East side of Fifth Avenue 3/93 374,500 9,000 $312 0) Wen ofdsmolitio. (2) ledades 366,500 of impovemw value Comparative Led The comparable listed above involve she sale in or nor downtown Valve Aeatyak Seward. each Further, ea comparable is zooed CBD which is zinnia, to the subject's HC zoning. As on be sae, these sales yield a range of 33.28 to 31512 per square foot. Excluding Comparable No. 4, the tame is dgMa at S1.23 to 211.67 per ammo foot. Due to the subject's prima harbor location, it is our opinion the current unit value would be neer the upper end of the range. 56 City of Seward, Alaska Port and Commerce Advisory Board Minutes January 6, 2010 Volume 3, Page CALL TO ORDER The regular January 6, 2010 meeting of the Seward Port and Commerce Advisory Board was called to order at 1:05 p.m. by Chair Ron Long. PLEDGE OF ALLEGIANCE TO THE FLAG led Ron Long ROLL CALL There were present: Board Member Chair Ron Long presiding, and Dan Oliver Rob Buck Deborah Altermatt Paul Tougas Darryl Schaefermeyer comprising a quorum of the Board Excused: Theresa Butts Absent: Also were present: Kari Anderson, Harbormaster Jim Lewis, Deputy Harbormaster Louis Bencardino, Alaska Rail Road Representative Suzi Towsley PACAB Liaison SPECIAL ORDERS, PRESENTATIONS, AND REPORTS - Administrative Report - Alaska Railroad Representative, Louis Bencardino reported on the following items: • The freight dock had a good year and was looking forward to continued progress in 2010. ' • The potential for up to $400 thousand to be invested by the Railroad in upgrades to the coal facilities in 2010. • The New Years party was fun for those who chose to attend. • Days for the archery group have been changed from Friday to Tuesday, at their request. • New collectors edition Alaska Railroad commemorative posters had been issued and available at Sea Life Center for sale -would be sent to American Legion, local Native Corporations and for use in other fundraisers or presentations. • There were no fire works for the New Year celebrations due to budget constraints by the group sponsoring the event. Seward Chamber of Commerce Director, I 57 Cloward- Was not present City of Seward, Alaska Port and Commerce Advisory Board Minutes January 6, 2010 Volume, Page Harbormaster Kari Anderson reported on the following items: • The Harbor was working on the North East Development plan for utilities design with URS and would report to PACABs February work session. The Z Float would be linking with this and future upgrades to the fish cleaning stations. • Continued work with the Railroad on dredging project. • Vandals had smashed in the windows ofthree vehicles and discharged a fire extinguisher onboard the Harbors Boston Whaler in late December 2009. Police were investigating the incidents. • Two new employees had been hired in the Harbor. (Elhard and Roy) • Working to get moorage contracts up to date. • The Polar Bear Jump was Saturday January 16, 2010. • December 1'` 2009 storm surge event- No harbor damage, update given on City HLS meeting. Community Development Director Christy Terry —was not present. Email sent by Ms Terry was read by board. Citizens' comments on any item except those scheduled for public hearing Q- WILLE —Asked where he could find notice of the work sessions? A- LONG — Suggested getting on the City Clerks mailing list and/ or checking the standard public place postings, online, or City laserfische. Comments between present public (Maddox and Bencardino) Remark (Maddox) - Remarked to the board that RBCA had nothing to do with the Railroad lawsuit. Chair Long directed all present to keep their comments and questions directed to the board. Maddox stated that the Alaska Community Action on Toxics and the Alaska Chapter of the Sierra Club had filed suit against the Railroad and Usibelli Coal Mine. After making another comment to Bencradino, Maddox left. Approval of the Agenda and Consent Agenda Motion (Altermatt/Oliver) Approve the Agenda and Consent Agenda Motion Passed Unanimous Consent The following item was approved under the consent agenda: December 2, 2009 PACAB Meeting minutes INFORMATIONAL ITEMS - Clarification of administrative changes and how they affect the budget was requested by Chair Long. UNFINISHED BUSINESS -NONE 58 City of Seward, Alaska Port and Commerce Advisory Board Minutes January 6, 2010 Volume, Page NEW BUSINESS- Proposed Recommendations to Council for Amendments to SCC 7.10, Harbor and Port Facilities Motion (Tougas /Oliver) Approve canceling January 20, 2010 scheduled PACAB Work Session, cancel regular business meeting on February 3, 2010, schedule work session for February 10, 2010 at noon to discuss Seward City Code Title 7 and article 8 of the same, and scheduling a regular business meeting for Wednesday February 17, 2010 at noon Discussion: Board members discussed their schedules and the need for Harbormasters input to Title 7 Code changes. Motion Passed Motion Carried Unanimously Annual PACAB Report to City Council, January 11 by Chair Long Chair Long stated that he would be out of town on January 11, 2010 and encouraged another Board member to give the report. Tougas volunteered and was unanimously directed to report to the Seward City Council on PACABs 2009 activities in Chair Longs place, on Monday January 11, 2010. -Chair Long requested suspending the rules in order to discuss an email from Vice Chair Theresa Butts regarding her request for an excused absence from the board. With no objection this became the next agenda item. Motion (Altermatt /Tougas) Approve Vice Chair Butts' request for an • excused leave of absence until at least April 1, 2010 and appointing Schaefermeyer vice chair during Butt's absence Discussion: Board members discussed the request and the subsequent need for election of an interim PACAB vice chair. Motion Passed Unanimous Consent 59 City of Seward, Alaska Port and Commerce Advisory Board Minutes January 6, 2010 Volume, Page 2010 Annual World Trade Center Alaska Statewide Economic Forecast Luncheon (January 13, 2010) Motion (Oliver /Schaefermeyer) Approve Deborah Altermatt's attendance of the 2010 Annual World Trade Center Alaska Statewide Economic Forecast Luncheon (January 13, 2010) in Anchorage, on behalf of PACAB, and requesting a report back to the board Discussion: Board members discussed the WTC forum. Motion Passed Unanimous Consent Harbormaster's 2009 Year -in- Review - Expansion and improvements to north harbor, south harbor, travel lift, I & T docks: A multi -phased project. Final phase- Z floats purchased and expected shipment soon. - Next step is replacing south harbor D float and S float. - Army Corp Projects were moving forward: Breakwater contract awarded to West Construction Harbor Dredging project on hold due to Amy Corp funding but still a top priority to both the city and Corp, and thus should start again as soon as funding was available. -50 ton travel lift dock completed in 2009 - Swalling Construction claim was negotiated and contract closed - Electrical utility billing, for the harbor, had transitioned from city Finance offices to the Harbor. This had not yet been automated for the harbor. - Mustang USCG Mustang shore based facilities relocation to Z float, meetings and coordination of move ongoing. - Harbor Staff responded to 2 vessels that sank in slips in 09 due to improper owner weatherization techniques. -Fire extinguishers had been purchased for placement on A — D floats helping to improve code compliance. - Harbor passed OSHA inspection and was cited for excellence in 2009 -Grant Applications x 4 - ASLC working closely on multiple collaborative projects Looking into Fish Haven Dive Site near the Sea Life Center Personnel from ASLC were helpful dealing with problem sea lions in the harbor in May, 09. - October 2009 derelict vessel sale 2 sold and 2 destroyed - Maintenance and repair activities were reviewed; PACAB was familiar with these initiatives as they had been involved in discussion of policies. 60 City of Seward, Alaska Port and Commerce Advisory Board Minutes January 6, 2010 Volume, Page - Remodeled used oil stations, Program will be expanded Q- Schaefermeyer- is the oil burned? A- Harbormaster — answered "Yes. After it is processed and recycled, it is used to heat some city and harbor facilities." Q- Schaefermeyer -asked what happens to the antifreeze? A- Harbormaster — answered that the antifreeze was recycled by a private business. - 2 months ofbudget meeting had resulted in looking beyond operational focus, looking to long term critical maintenance and critical infrastructure. The harbormaster thanked PACAB for process input. - Websites for the Harbor and SMIC had been updated and were being improved - Leases -- Harbor and SMIC leases were very labor intensive for the harbor 5 year lease appraisals upcoming All require attorney review in 2010 Q- Schaefermeyer- asked where the revenue goes from the leases? A- Harbormaster — answered that half of the revenue from the leases went to the general fund and half to the Harbor. The finance department performed all the billing for those leases. - Improvements continued to be ongoing at Seward Ships Dry Dock in 2009 -50 ton Travel lift improvements have been focused on including belt upgrades and replacement schedule - DEC guidance on contaminated soil for land farming project had taken place in 2009, materials from a spill in 2005. Abandoned drums found along Nash Road remained in City custody - Stored vessels at SMIC had been tarped. 2010 goals ❑ Remainder ofZ Float funding procurement ❑ Creating Harbor best management practices and allowable maintenance policy ❑ Seward Marine Industrial Center Best Management practices and yard improvements ❑ PACAB Code and Tariff revisions ❑ Begin online electrical utility and moorage customer access and payments ❑ Lease appraisals and development, in cooperation with community development, of a checklist for those interested in leasing city property ❑ Addressing SMIC impound and derelict vessel situation ❑ Marine facility inspection reports ❑ Customer efficiency and service improvement Board Questions -None BOARD COMMENTS — Lon- remarked that the Harbormasters report had a lot of information that could be used by Touags in his upcoming report to City Council. Dan Oliver- informed the Board that the Arctic Region Research Vessel had been named the "Sikuliaq" (see- koo -lak). It means new ice. Rob Buck - expressed Thanks to the Harbormaster for her report. Paul Touags — declined opportunity to comment. 61 City of Seward, Alaska Port and Commerce Advisory Board Minutes January 6, 2010 Volume, Page Darryl Schaefermeyer- reminded Board of Gala for Sea Life Center in Anchorage on January 17 Debra Altermatt — Informed the board that she would not be in attendance for either the 17 of February for business meeting or March 3 2010. Altermatt said she would report to board on the WTC luncheon at the 2 -10 -10 work session. Chair Long- stated that the Alaska Logistics project appeared to be a positive move and a good company. CITIZEN COMMENTS — Ron Willie- asked if there are there security cameras at the harbor and if they work? Ron Wille- asked about prepayment qualifications and where it was discussed in code. BOARD AND ADMINISTRATION RESPONSE TO CITIZENS' COMMENTS - Long replied to Mr Wille that prepayment was discussed in the "Fees, Penalties and Ordinary Services " - Article 7.10.610 ADJOURNMENT The meeting was adjourned at 2:03PM Suzanne Towsley Ron Long Executive Liaison Chair (City Seal) 62 1 c, Exxon Valdez Oil Spill Trustee Council 441 W. 5 Ave., Suite 500 • Anchorage, AK 99501 -2340 • 907 278 8012 • fax 907 276 7178 * NEWS RELEASE . Date: January 15, 2010 Contact: Laurel Jennings, 888 - 654 -3867 Exxon Valdez Oil Spill Trustee Council Seeks Public Comment on Future of Program EVOSTC seeks public comment on proposed focus areas for remaining restoration funds, concurrent with a NEPA update of its 1994 Restoration Plan. ANCHORAGE, January 14, 2010 — The Exxon Valdez Oil Spill Trustee Council (Council) announces the posting of a Notice of Intent (NOI) and the opening of a public comment period to supplement the Council's existing Environmental Impact Statement. The public comment period will end on April 1, 2010 and a series of public meetings will be held in six communities during this time (please see below for dates and times). The Council, recognizing that the restoration funds remaining from the Exxon Valdez settlement continue to diminish, seeks to narrow and refine the scope of the Council's restoration efforts and to enable a more discrete and efficient funding mechanism by which to direct these remaining funds. In the NOI, the Council proposes to focus their restoration efforts to five defined restoration categories: herring; lingering oil; long -term monitoring of marine conditions; harbor protection and marine restoration; and habitat acquisition and protection. These Council efforts and deliberations dovetail with the need for the Council to complete a National Environmental Policy Act of 1969 (NEPA) update of its original 1994 Restoration Plan. Thus, in conjunction with the National Oceanic and Atmospheric Administration (NOAA), the Council has posted a Notice of Intent to prepare a supplement to the existing environmental impact statement (SEIS) on the Council's restoration efforts. A copy of the NOI can be obtained from the EVOSTC office and on its website, www.evostc.state.ak.us. The Council would like to encourage public comment which may be submitted in several ways: • Written comments may be submitted by mail to: Laurel Jennings, Exxon Valdez Oil Spill Trustee Council, 441 West 5th Avenue, Suite 500, Anchorage, AK 99501 or via email to dfg.evos.nepacomments@alaska.gov • Verbal comments may be submitted by calling 888 - 654 -3867. • Written or verbal comments may be submitted at any of the following public meetings: Federal Trustees U.S. Department of the Interior State Trustees U.S. Department of Agriculture Alaska Department of Fish and Game National Oceanic and Atmospheric Administration Alaska Department of Environmental Conservation Alaska Department of Law 63 February 16, 2010 from 6:00 p.m. to 8:00 p.m. at the Alaska Islands and Oceans Visitor Center, 95 Sterling Highway, Homer, AK 99603. February 17, 2010 from 6:00 p.m. to 8:00 p.m. at Dena'ina Civic & Convention Center, 600 West Seventh Avenue, Anchorage, AK 99501. February 18, 2010 from 7:00 p.m. to 9:00 p.m. at the Cordova Public Library, 622 First Street, Cordova, AK 99574. March 16, 2010 from 6:00 p.m. to 8:00 p.m. at the K.M. Rae Building, 125 Third Avenue, Seward, AK 99664. March 17, 2010 from 6:00 p.m. to 8:00 p.m. at the Valdez City Council Chambers, 206 Pioneer Drive, Valdez, AK 99686. March 18, 2010 from 6:00 p.m. to 8:00 p.m. at the Kodiak Refuge Visitor Center, 402 Center Street, Kodiak AK 99615. For more information about the scoping process, please contact the EVOSTC office and details will be provided. Updates or changes to the meeting times or dates, due to weather or other factors, can be found at http: / /www.evostc.state.ak.us. Please note that for the NEPA public scoping process, comments must be received by April 1, 2010, in order to be incorporated into the official scoping record. Comments received after April 1 will still be considered by the Council in the development of the SEIS, but will not be a part of the scoping record Once this NEPA scoping process is complete, the Draft SEIS will be developed and released for public comment in Spring 2010. This second public comment period will be for 45 days. Further opportunities for public comment are provided through public review and comment on documents contained in the Administrative Record, as well as on the Final Supplemental Environmental Impact Statement. If you would like to receive electronic notices of these future public involvement events, please send your e-mail address to dfg.evos.nepacomments @alaska.gov, along with a message that you would like to be added to the mailing list. About the Council In 1992, the Exxon Valdez Oil Spill Trustee Council was formed by six trustees, three State of Alaska trustees and three federal trustees, to oversee restoration of the natural resources and • ecosystem damaged by the 1989 oil spill. The Exxon Valdez Oil Spill Trustee Council was funded by settlement of civil claims brought against Exxon Companies by the State of Alaska and the United States. To learn more about the Council and its mission, visit www.evostc.state.ak.us Federal Trustees State Trustees U.S. Department of the Interior Alaska Department of Fish and Game U.S. Department of Agriculture Alaska Department of Environmental Conservation National Oceanic and Atmospheric Administration Alaska Department of Law 64 M arch 2010 March 2010 April 2010 S M T W T F S S M T W T F 5 1 2 3 4 5 6 1 2 3 7 8 9 10 11 12 13 4 5 6 7 8 910 14 15 16 17 18 19 20 11 12 13 14 15 16 17 21 22 23 24 25 26 27 18 19 20 21 22 23 24 28 29 30 31 25 26 27 28 29 30 Monday _ Tuesday Wednesday Thursday Friday Sat/Sun _ _ March 1 2 3 4 5 6 12:00pm r aM. . _ ° 7 p 8 p 9 p 10 P 11 P81.2 CC Canceled Task Board 12 13 6:00 m CC WS with 6:30 m CC 6:00 m Flood Plain 12:00 m ! 6:30pm CC WS with Meeting !• i . PACAB (Kenai 7:OOpm City Council Peninsula Meeting Borough) R6 - _. -. 14 i 15 16 17 18 19 20 6:30pm P &Z Work 12:OOpm PACAB 9:OOam Social Session -Cana ; Meeting Security Rep 6:30pm Historic Preservation Meeting - 21 1 i 2 2 23 24 25 _._ — _._._ _ 26 — 27 7:OOpm City Council i Meeting u " g 29 30`� 2 Seward's Day Offices Clo! Nanci Richey 1 3/15/2010 9:24 AM Apr April 2010 May 2010 il 2010 SMTWTFS SMTWTFS 1 2 3 1 4 5 6 7 8 910 2 3 4 5 6 7 8 11 12 13 14 15 16 17 9 10 11 12 13 14 15 18 19 20 21 22 23 24 16 17 18 19 20 21 22 25 26 27 28 29 30 23 24 25 26 27 28 29 30 31 Monday Tuesday Wednesday Thursday Friday Sat /Sun April 1 2 — 3 4 II I 5— 6 7 8 9 10 6:30pm P&Z Work 12 0111mi Seward Session Community;' 7:30pm P&Z Meeting Library & i. Museum Building Committee 11 (Library Baseme 12 13 14 15 16 7:OOpm City Council Meeting 18 — _ 19 20 21 22 23 24 7:OOpm P&Z Schafer 12:OOpm PACAB Work I 9:OOam Social Appeal Session Security Rep 6:30pm Historic Preservation Meeting 25 26 27 28 29 30 7:OOpm City Council Meeting 1 1 Nanci Richey 2 3/15/2010 9:24 AM