HomeMy WebLinkAboutRes2015-004 Sponsored by: Hunt
CITY OF SEWARD,ALASKA
RESOLUTION 2015-004
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD,
ALASKA, AUTHORIZING THE CITY MANAGER TO ENTER INTO A
PROFESSIONAL SERVICES AGREEMENT WITH ALASKA
INDUSTRIAL DEVELOPMENT AND EXPORT AUTHORITY (AIDEA)
FOR AN UPLAND DEVELOPMENT PLAN AT SEWARD MARINE
INDUSTRIAL CENTER (SMIC) FOR AN AMOUNT NOT TO EXCEED
$200,000,AND APPROPRIATING FUNDS
WHEREAS, a fully developed and thriving Seward Marine Industrial Center (SMIC)has
long been a goal of the City and community of Seward; and
WHEREAS, recent legislative appropriations and statewide bond packages have helped
significantly toward achieving that goal; and
WHEREAS, a thorough and well executed plan is key to the long term success of SMIC
development; and
WHEREAS, the City of Seward has resources that can help develop such a plan but
cannot fully provide the confidentiality that AIDEA as a lender can and that private sector
stakeholders require, and which is critical to the plans success; and
WHEREAS, since the first development capital for this phase of SMIC improvements
was received in 2012, the City of Seward has been working with AIDEA to identify the goals
and objectives of a development plan for SMIC; and
• WHEREAS, AIDEA, in its role as an economic development authority of the State, will
develop a business plan for Seward that will provide for sustained economic development of
SMIC; and
WHEREAS, the City of Seward and AIDEA have negotiated a scope of work and price
for the proposed development plan; and
WHEREAS, AIDEA will contract elements of the plan development in phases: the first
phase will develop a list of potential business opportunities in a business case outline report with
preliminary development phasing identified and create two schematic development options for
the uplands area; and the first phase deliverable will be the Business Plan Recommendation
Report; and
WHEREAS, if the results of the first phase are positive and, when funds become
available, the second phase will concentrate on the preferred concept development and
stakeholder management when recommending optimal financing structures that best match the
business case, with the deliverables to include a Financing Structure and Funding Strategy
Report and the Final Report; and
CITY OF SEWARD,ALASKA
RESOLUTION 2015-004
WHEREAS, in order to fund Phase One, the city of Seward will contribute $200,000
and AIDEA will contribute $75,000,with an additional $25,000 if necessary, with funds being
drawn down on a pro rata basis with the City of Seward's funds; and
WHEREAS, in the event that a development project is created from this study in which
AIDEA is participating in the financing, these costs will be considered transaction costs and
repaid to both parties.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE
CITY OF SEWARD,ALASKA,that:
Section 1. The City Manager is authorized to enter into a professional services
agreement in substantial form as in the attached Memorandum of Understanding with Alaska
Industrial Development and Export Authority for an amount not-to-exceed $200,000 for
compilation of the SMIC Upland Development Plan.
Section 2. Funding for this agreement is hereby appropriated from SMIC Breakwater
State Grant account no. 12331-0000-4252 to Contract Services account no. 12331-0000-7009.
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
12th day of January, 2015.
THE CITY OF SEWARD,ALASKA
can Bardarson,Mayor
AYES: Keil, Terry, Squires, Bardarson
NOES: None
ABSENT: Casagranda, Darling, Butts
ABSTAIN: None
ATTEST:
A.a. gir -
ohanna Kinney
1 ity Clerk, CMC
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(City Seal) I' J o .F,,°°° , °�
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Council Agenda Statement
4.1 Of SEA
Meeting Date: January 11 �
gY 12 2015 ;17
Through: Jim Hunt, City Manager
4tASi(-•
From: Ron Long, Community Development Director&
Assistant City Manager
Agenda Item: Authorizing the City Manager to enter into a Memorandum of Agreement
with Alaska Industrial and Export Development Authority(AIDEA)
Memorandum and appropriating funds
BACKGROUND &JUSTIFICATION:
Since passage of the Statewide Transportation bond package in 2012 that began funding the
SMIC breakwater and expansion a part of the development strategy has included a business and
infrastructure development plan in partnership with the Alaska Industrial and Export
Development Authority(AIDEA), an economic development authority of the State.
That strategy has evolved from the original $1.2 million designated in the award spending plan to
a lesser amount commensurate with our needs, includes AIDEA financial contributions in aid,
and considers a phased implementation of the plan elements. It also provides that if as a result of
the plan AIDEA finances one or more development projects at SMIC,the plan costs will be
considered transaction costs and are reimbursable.
AIDEA will contract elements of the plan and bill those to the City periodically,with AIDEA
contributions to those elements also applied on a pro-rata basis.
Various City plans for the development of SMIC have lacked critical private sector or
stakeholder participation, in part due to lack of available infrastructure to encourage investment
and in part due to an unwillingness to share business development strategies with the City.
AIDEA, as a lender, can protect the private interests of potential borrowers while serving the
public interests of the City in creating the business and infrastructure development plan.
In developing the plan,AIDEA will interview current and identified potential users and business
partners to identify stakeholder issues, explore known and potential business partners and
business opportunities,list business opportunities and needs for the SMIC uplands area. Analysis
of the potential demand will lead to an initial projection of potential revenue through future
years. The plan will provide preliminary cost estimates for required facilities and infrastructure
development based on the identified potential businesses. The work includes assisting the City in
the development of a stakeholder management and public outreach plan aligned with project
goals and that keeps stakeholders well informed, engaged and participating, and the development
of a Business Plan Recommendations Report. The attached Memorandum of Understanding
describes the process and deliverables in more detail.
The total cost of phase one is $300,000 with$200,000 being appropriated by this council action.
AIDEA initially contributes $75,000 with another$25,000 if needed to complete phase one. If
the plan demonstrates project feasibility,AIDEA and the City will explore further funding for
phase two as described in the attached MOA.
}
INTENT: Authorize the City Manager to enter into an MOA with AIDEA for $200,000.
CONSISTENCY CHECKLIST: Yes No N/A
Comprehensive Plan (1.3, 3.7.3.1, 3.7.3.2): Continue to upgrade and
1. expand utilities to meet existing needs and encourage future X
development.
•
2 Strategic Plan : The mission of the City of Seward government it is to X
provide quality leadership and economic wellbeing of its citizens
3. Other(list): SMIC Development Plan X
FISCAL NOTE: Funding for this agreement will be appropriated from SMIC Breakwater State
Grant account no. 12331-0000-4252 to Contract Services account no. 12331-0000-7009.
Approved by Finance Department: j loo ,•a,,��ti.t
ATTORNEY REVIEW: Yes X No
RECOMMENDATION: Approve Resolution 2015- DO LA authorizing the City Manager to
enter into a Memorandum of Agreement with Alaska Industrial and Export Development
Authority(AIDEA)Memorandum and appropriating funds