arrc board of directors committee
TRANSCRIPT
Alaska Railroad Corporation Board of Directors
Real Estate Committee Agenda
Date: January 13, 2022 Time: 10 a.m.
Join Zoom Meeting https://us02web.zoom.us/j/84667753793?pwd=UUNZQU5ldCtpWmhNVGhZeE1OckViZz09
Meeting ID: 846 6775 3793 Passcode: 637822
Telephone: 1 346 248-7799 Customer Communication:
• Customer Meetings Board Action Items for February 1 Board Meeting:
AFE’s / Resolutions to be presented to the Board for Approval:
• Authorization for Expenditure No. ______ - Building purchase (MMME) - drawing
Contracts to be presented to the Board for approval:
• Contract # 20743 – Wilson Brothers Distributing Co., Inc. – Valdez - drawing
Briefing / Update
Fairbanks
• Hockey Hall of Fame Fireworks – drawing • Chena River Trail – drawing • Moose Creek Crossings (T. Sullivan) – drawing
Nenana • City of Nenana Lease (T. Sullivan) – drawing
Anchorage • New Year’s Eve Fireworks • Flor-wall • Eklutna Commercial Lease (former Karen’s RV) – drawing
Birchwood • Rail spur activity – drawing
Seward • DOT Airport • Tariff Updates
Whittier • Gravel Sales • City of Whittier - Head of the Bay • Tariff updates
Other Topics Executive Session
• If aspects of agenda items appropriate for Executive Session are identified, such a session may be held upon motion.
Committee Members: Committee of the whole
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L E A S E S U M M A R Y
LESSEE: Wilson Brothers Distributing, Co., Inc. CONTRACT NO: 20743
LEASE DESCRIPTION: Lots 1 thru 4 and the adjacent South East 95’ wide area, and Lots 1 thru 4 as depicted on the unrecorded plat titled “Valdez The Alaska Railroad Terminal Reserve”, containing 153,244 square feet, more or less.
KEY CONTRACT PROVISIONS:
Estimated Effective Date: January 1, 2022
Lease Term: Ten (10) Years
Option to Extend: N/A
Lease Area: Approximately 153,244 sq.ft.
Base Annual Rent: $12,259.52 (based on 2020 appraised value of adjacent lease @ $1.00 psf and expanded leased premises area as noted below). Initial base rent will be effective until 2025 to align with Valdez appraisal schedule.
Prior Annual Rent: $7,631.00 (based on $0.85 per square foot (psf) and current leased premises area)
Rental Rate: 8%
Rent Adjustment: Rent will be adjusted January 1, 2025 and every 5 years thereafter with adjusted annual rent not to exceed 135% of the prior year’s annual rent or to decrease to less than 65% of the prior year’s annual rent
Extended Term Rent: NA
PUBLIC NOTICE: Yes, public comment period expires February 3, 2021.
LEGAL REVIEW: Yes
INTENDED USE: Office and warehouse
SUMMARY AND RECOMMENDATIONS: Lessee’s current lease expired on December 31, 2021,
and Lessee is requesting a new lease for Ten (10) years. Lessee also requests expansion of the
leased premises to include an additional 45,000 square feet and to continue to use this property for
office and warehouse. Approval is recommended.
APPROVED: Board Meeting Date:
Jennifer Mergens
ARRC Board Secretary
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Lease 20743
Area - 153,244 sq ft±
(3.5 ac±)
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The dimensions shown on this exhibit are
based on the unrecorded plat titled Valdez,
The Alaska Railroad Terminal Reserve, dated
September 1970 and having a file number
7-5
SCALE: DATE:
DRAWN BY:
APPROVED BY:
CHECKED BY:
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Contract No. 20743 - Exhibit AWilson Brothers Distributing Co., Inc.
1" = 200 2021-01-04
DCA
Area = 153,244 sq ft± (3.5 ac±)
ARRC title - Patent 50-50-2005-0239 - USS 5671
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ALASKA RAILROAD CORPORATIONREAL ESTATE DEPARTMENT, LAND SERVICES
For indexing purposes this property is located in the NE1/4 Sec. 3, T9S, R6W, C.R.M.
Valdez Terminal Reserve
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SCALE: DATE:
DRAWN BY:
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Chena River WalkAppraisal Overview
1" = 200' 2021-06-25
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***
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ALASKA RAILROAD CORPORATIONREAL ESTATE DEPARTMENT, LAND SERVICES
Fairbanks Terminal Reserve
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1 Inch = Feet
0 400200100
200
Tract 2
Tract 3
Tract A
Area
Total
10,600 sq ft
7,900 sq ft
N / A
18,500 sq ft
Parcel
Trail
Uneconomic
Remnant*
Area
71,950 sq ft±
82,950 sq ft±
N / A
154,900 sq ft
Platted PUE (8,700'±)
* From AK DOT ROW Manual - Jan. 2019
An uneconomic remnant is a portion of a property that the Review Appraiser determines has
little or no utility or value to the owner (Sec. 5.3.9.). DOT&PF must offer to acquire a remnant
that a Review Appraisals Appraiser judges to be uneconomic, based on concern for owners
left in a reduced economic position due to a DOT&PF project. The owner’s comments, if
any, concerning the usefulness (utility) of the remainder, and the Appraiser’s analysis of the
value of the remainder, are included in the addenda to the appraisal narrative.
Platted Trail Easement (4,900'±)
Trail Design 2021-04-23
2021-04-23 Design (10' wide)
Uneconomic Remnant
CHENA SLO
UGHCHENA SLOUGH
CHENA SLOUGH
R R
R R
R R
R R
R R
sign the plat. See DAS notes)shown in ROW but RR didn't(Plat shows Railroad, Al Cory
Plat filed in 1976Moose Creek Acres 1st Add.
(Plat shows Railroad)First plat filed in 1973Cardaro Subdivision
(Plat shows Railroad)First plat filed in 1969
Moose Creek Acres
First plat filed in 1987Cavanaugh Park Estates
(Plat shows Railroad)Frist plat filed in 1959
Frito Subdivision
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SCALE: DATE:
DRAWN BY:
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1" = 500' 2021-11-30
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Moose Creek Area - Overview
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ALASKA RAILROAD CORPORATIONREAL ESTATE DEPARTMENT, LAND SERVICES
Approx. ARRC MP G22 - G23.5
1 Inch = Feet
0 1,000500250
500
Lease 5278
Parcel 5
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Lease 5278
Parcel 1
Lease 5278
Parcel 3
Lease 5278
Parcel 6
Lease 5278
Parcel 2
SCALE: DATE:
DRAWN BY:
APPROVED BY:
CHECKED BY:
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Contract No. 5278 - Exhibit ALease Overview
1" = 1,000' 2019-01-15
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ARRC title - Patent 50-2011-0011
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ALASKA RAILROAD CORPORATIONREAL ESTATE DEPARTMENT, LAND SERVICES
Nenana Terminal Reserve
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150.00'
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150.00'
Lease 20745
33,948 sq ft
(0.78 ac±)
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SCALE: DATE:
DRAWN BY:
APPROVED BY:
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Contract No. 20745 - Exhibit AEklutna Construction & Maintenance, LLC
1" = 100' 2022-01-11
DCA
Area = 33,948 sq ft± (0.78 ac±)
Lot 1, Block 33, USS 1456
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ALASKA RAILROAD CORPORATIONREAL ESTATE DEPARTMENT, LAND SERVICES
Anchorage Terminal ReserveFor indexing purposes this property is located in
the NE1/4 Sec. 17, T13N, R3W, S.M.
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1 Inch = Feet
0 20010050
100 ARRC title - Patent 50-2016-0051
SCALE: DATE:
DRAWN BY:
APPROVED BY:
CHECKED BY:
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Birchwood Reserve
1" = 400' 2021-07-29
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Overview
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ALASKA RAILROAD CORPORATIONREAL ESTATE DEPARTMENT, LAND SERVICES
Birchwood Reserve
1 Inch = Feet
0 800400200
400
Area Table
Operation Land
Non-Useable Land = 0 ac±
Useable Land = 160 ac±
ROW Land
Total Land = 221 ac±
}= 61 ac±
Operation Land
Reserve Boundary
ROW within Reserve
ROW outside of Reserve
Existing Lease
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Useable Land