HomeMy WebLinkAbout1967-07-12 Council Minutes - Special Meetingrti ri::�J �A
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KNAAI vl''!Y rrUUIL JUL.Y 12, 1967 14:00 N0014
1. unuct Resolution 67-42 establishing policy on %ook inlet Industrial
Air Park Natural Gas :3ystern.
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2. Discus. status of E. D. A. projects.
3. Discuss sale terns of Ntolia 3uUdivision.
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SPECIAl. CWNCIL. MB "NG, NOUNI R(lY.AL REDOUlff
12 JUL,Y, 1967
Roll Call: k1embers present - Bon Bielefeld, Billy McCann, Florin HeCollum, Carl
Seaman and Aiayor James G. Dye.
Also present: City M1lgr. J. IV. Harrison, Atty. Jas. H. Fisher, Mike Gravel,
Larry Carr, ' Bill Paryeter and Dick Carignan.
1. Harrison presented lies. 67-42 concerning the City's Gas system in CIIAP. As a
result of the City's request to LOA this resolution is necessary before IiDA can
approve the contract for Phase IV (Gas) in CIIAP.
The Mayor reviewed the actions that led to the City's furnishing gas to
users in CIIAP, and the granting of a franchise to Kenau Utility Service, Inc.
Seaman moved, Bielefeld seconded, to adopt Res. 67-42, Establishing an
Operational Policy for the Natural Gas System in the Nbnicipally owned Cook Inlet
Industrial Air Park. Motion carried unanimously.
2. Harrison thinks EDA needs somecne from the City to go to the Seattle office and
explain the City's predicament in loss of construction time on our summer projects,
and to try to expedite approval of. the Gas contract for Phase IV, CIIAP, and the
Water $ Sewer Materials Purchase. The City can save the W&S contractor 2 or 3 weeks
by having the materials on hand. A letter from EDA was received this morning ask-
ing for mmiy additional documents before they can approve the purchasing of this
mawrial. Galliett is working on these requests, but it will take mor time to com-
pile what they want. Also the State Dept. of health is not working very fast to
give their approval of the W&S over-all plan and design. In addition, EDA has not
approved Change Order N3 adding more work and money on W&S for CIIAP.
There was considerable discussion on all these pfoblems, and the commend-
able manner in which EDA is working with the City. Since they have been so cooper-
ative it was thought it would help if an emmisarry went to Seattle to further explain
the City's need to take advantage of the short construction season lwre.
Seaman moved, McCollum seconded, to pay all expenses for the Mayor to go
to Seattle and talk with EDA people there. Motion passed unanimously.
3. Harrison said discussion on transfer of Airport land.and Health Center Site to
4th Ave. Corp. should not only consider values, but the terms of the sale. He
really did not ask Council to go into values so much as the terms that they wanted
to adopt. The City had two �appraisals and 4th Ave. Corp. submitted one appraisal.
They were: $160,000; $197,500 and $205 700 for the 15 acres.or 637,672 sq. ft.
Gravel, speaking for 4th Ave. fnc., said these were knowledgeable and
academic appraisals based on values for a down town area; they had thought to pay
between 75 to 100 thousand dollars, put in streets pave parking arras, install
utilities, otc. He pointed out the City could m2e maybe 50 lots of the 15 acres,
E but could they be sold and developed *.his season as they propose to do? They will
add two million dollars to the tax base and will provide a much needed shopping
center as well as a nucleus for the City's business district.
The Mayor suggested the City should more or less adopt the appraisal value,
but allow the developer to sell off lots later on if it complies with the City's
General Plan.
- -- Mr. Carr thought this was a logical approach; they anticipate putting in
( several shops themselves; but the people in the area now do not justify the high
price of the land - however, if they have some flexibility they can go ahead as they
do not plan on short term money, but have figured this development on a long-term
basis.
Special MucL• ing Mi11..4;05 12 July, 1967 P. two
Thorn was considerable discussion on values, development, what FAA might
approve or reject, etcq and terms of sale.
The City Manager related to Council the bid opening on this sale of land was 10 July,
190; 4th Ave. Inc. were the only ones who had a develppment proposal and the City
elected to talk with 4th Avo., Inc. further.
Althought the season is late, Gravel said they would do what they can this
summer and will work as long as weather permits.
Seaman moved, McCollum seconded, to tentatively accept $160,O0O for subject to approval by F. A. A. with $10000 down, $59000 total at the time of ap-
proval of FAA and total purchase prico to be paid in cash to the City at the time of
delivery of title. `
Fisher said the City was talking only surface rights. Also Harrison said
there is a re -capture clause in the deed from F.A.A.; they are working to delete
this clause from all deeds, but it has not been done to date, and the City is not
saying this will be deleted from the deed to 4th Ave., Inc.
After some further discussion the motion passed by roll call vote: Affir-
mative - Bielefeld, McCann, McCollum, Soaman; Negative - none.
The meeting adjourned at 1:50 p.m.
Respectfully subm`ittted,
.y�is�►-�t.aJJ �,tc,��
Prances Torkilsen
City Clerk
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