Last Frontier Development Efforts

Borough P&Z Gives Thumbs Down on Jesse Lee Rezoning
The Seward Phoenix Log
July 26, 1973

The Borough Planning and Zoning Commission met in regular session Monday night in Soldotna and after discussion, voted down rezoning of a portion of Jesse Lee property in Seward to R-3. The rezoning would allow Last Frontier, Inc., to continue their proposed plan to construct a hotel-motel complex in the area. The firm is purchasing the property from the City of Seward.

Five of the ten borough commission members were present to vote – with three no votes, two yes, and one abstention. The vote was taken after the commission had received a call from the Seward City Council approving the rezoning request, and after public hearing in which area property owners Larry Urbach and Margaret Deck posed objections,

Urbach and Deck said they were not opposed to a hotel-motel complex but were opposed to the possibility of boarding houses, trailers and other such projects. They felt R-3 zoning would not protect against this.

A borough spokesman told Radio KRXA the main objection of the commission in voting the measure down was that “not enough thought had been put into the matter, especially in view of the fact Seward is in the process of writing a new zoning ordinance”. The measure was described as “too early.”

About three weeks ago the Seward Planning and Zoning Advisory group voted the rezoning down, with only five of a nine-man commission present. Last week the City Council chose to take no action and let the matter rest-Monday night they took the matter up once more and this time approved it.

The rezoning now must go to the Kenai Peninsula Borough Assembly for final action. It will be taken up by that body at 7:30 p.m. in a regular assembly meeting to be held at the new Homer High School on Tuesday, August 7th.

Letter to the Editor
Seward Phoenix Log
November 21, 973

As a citizen of Seward, I feel I should say something about the Jesse Lee property, along with those who testified at the recent Planning and Zoning Advisory Commission meeting. After all, each citizen of this City owns as much of that property as the next one. Right!

The property is an important asset, one of Seward’s finest pieces of ground, and should be carefully administered.

The action of the Planning and Zoning Commission in turning down a Limited Commercial zoning in the area is difficult to comprehend. To my knowledge, they gave no reason for this action – at least not in public hearing. With feelings running high, and the fact Last Frontier, Inc. had no concrete plans, no money on hand, the Commission apparently felt they’d better cool it.

A look into the future might be in order here. The City has a stipulation in the contract with Last Frontier limiting the type of commercial enterprises suitable for the property to hotel-motel complex, including related businesses.

It appears only one person was against the hotel-motel complex for the buildings. In fact, those who live in closest proximity didn’t object to this. That is what Last Frontier wanted originally, and was not objectionable to the majority of citizens present.

Apparently the City contracted with Last Frontier with this in mind, they accepted money from them, but made no provision for zoning to allow for what the contract called for. This appears to be a case of blatant poor faith on behalf of the City.

For Last Frontier or any other prospective buyer to make hotel-motel development use of the buildings and property- there must be a zoning change. The property is worthless fore any like development without the zoning change. PERIOD!

The City, on, the other hand, has two choices – to rezone, with stipulations on use – or to tear down the existing buildings and sell the property for residential lots (with more engineering costs, and all else involved).

Several thoughts come to mind:

1. We need another hotel-motel, especially in the event of our being able to bring to being a Civic Center. The complex would be needed to house several hundreds out of town people during conventions, and other functions of this kinds. The Civic Center itself would be useless for conventions if people could not find sleeping accommodations!

2. Other areas available for downtown hotel development include:

(a) The area next to Bear Mountain, which is bordered on the south by “Industrial” zoning, and could conceivably result in a fine complex being bordered by a fish cannery,-already two large warehouses are in place.

(b) The area beyond Armstrong Avenue, near the Bay which is unsafe for development.

3. No matter what is said, the Jesse Lee buildings are basically sound yet today, and with the price of new construction rising continually, the “shell” is an expensive item when it come to building.

4. Removing the buildings and zoning residential is also a long-range waste. The present Jesse Lee subdivision , in the same general area, contains 66 residential lots. Those are all prime single-dwelling properties. Of those 66 privately owned lots, only two homes have been built in the last five years – making a total of three homes in this subdivision. Owners in this area have hung on to one or more lots for as much a seven years –apparently fore speculative purposes since they haven’t built on them. Why zone more to be used (or un-used) for the same purpose?

I don’t want to see the Jesse Lee buildings razed. I’m not a sentimentalist except for actually “liking” the architecture of them- which is certainly more in keeping with old Alaska than some of the “boxes that are being built today. Even in disuse the buildings look good all painted from top to bottom. To begin from scratch on buildings that size could result in a monstrosity which we could condemn as an eyesore for the rest of our lives.

I am a realist. Before we condemn Last Frontier too hastily, let’s remember that they have been extremely patient throughout his ordeal. The City has been patient also, but this is what it takes to make binding contracts. Let’s rezone this area before another buyer bites the dust!

Sincerely,

Donna Kowalski

p.s. If the new P&Z code had been adopted, R-3 zoning could cover the hotel-motel complex, with associated enterprises, but this is probably far in the future.

Letter to the Editor
Seward Phoenix Log
November 21, 1973

Dear City Council Members:

The controversy over Jesse Lee is about to be resolved thru the rezoning of Tract A-1A and Tract A-2A in Jesse Lee Heights from Multi-family residential (R-3) to Limited Commercial (C-L) and the subsequent signing of the contract and sale to the developers for a price of $35,000.

I appreciate the fact that Council and the City Manager have put forth a lot of effort and many hours to bring us to this point, however, I have serious misgiving s about both the proposed rezoning and sale. I would like to have this letter considered at your meeting Nov. 26 so please place it on the agenda.

First, I feel the property is worth more than $35,000. If it was to be appraised by qualified real estate people, I’m sure the value would prove much more. If the City had divided the land and sold residential lots, it would have realized more profit and it would have been less complicated than the development contracts, law suits, etc.

Second, under rezoning to Limited Commercial, the present property owners have no protection or assurance any ONE or all of the Uses Permitted could not at ONE TIME OR ANOTHER become a reality. The City does not have the same plan for orderly development that it had sever years ago when residential lots were originally sold.

There is NO ASSURANCE that a hotel-motel complex with related businesses in this area, will be the FINAL OUTCOME of City Planning seven years from now. Councils change, people come, people go. Some of us stay thru all the changes and those of us who stay, have to live with the action taken today – both good and bad,

The third point I would like to make is the matter of development of the property by the buyers now under consideration.

It appears up to this point, this Corporation is ‘speculating’. Suppose the zoning goes Commercial, the Development Contract is signed, and the Corporation is deeded the property upon payment of the full sum.

Does the Council REALLY THINK IT CAN TELL THIS COMPANY WHAT THEY ARE GOING TO DO OR WHAT THEY ARE NOT GOING TO DO WITH THEIR OWN PROPERTY?

Think about this. Any contract drawn with the best of intentions, is subject to disagreement and subsequent court action. This is unfortunate, but a fact of life in this day and age.

I respectfully urge the City Council to reconsider the sale of tracts in Jesse Lee Heights to the Corporation being considered.

I suggest the property be divided into residential lots and sold to the highest bidder.

In addition, I would like to see us all work towards a Borough Planning and Zoning Ordinance where by Special Uses would be provided for various areas, without throwing it wide open to any kind of development.

Yours very truly,

Margaret Anderson


City Extends Lease on Jesse Lee Home Property
Seward Phoenix Log
June 13, 1974

The Seward City Council acted Monday night to extend for one year the period in which Last Frontier Inc., has to begin construction of its proposed development of the Jesse Lee Home property. Extension was granted after a presentation by the firm’s attorney, James R. Clouse.

Clouse requested the extension because although a feasibility study contracted by Last Frontier indicates use of the present structures is possible, the architects have not had time to compete the development plans. He added that the firm had been in contact with the Hilton Corporation to seek franchising for managing the completed facilities. He said Hiltons require at least 100 rooms and original plans had called for 75. This resulted in architectural changes and delays according to Clouse. He said he was prepared to present the City with the due payment of $9,240 but would not do so if the extension was not granted.

Clouse then stated the firm planned to change its plans somewhat and immediately construct a camper trailer parking area so that some revenue might be coming in and a manager would be on hand to prevent further vandalism of the present structures---which have been vacant for nearly 1 years. The proposed camper parking would be in a secluded are and Clouse estimated costs at $35,000.

From the audience Dorothy Urbach asked Clouse his definition of camper parking and stared she was opposed to a trailer park. Close assured her the firm has at no time contemplated trailer parking – only for transient campers and motors homes.

Also in reply to a question Clouse stated his firm had secured liability insurance to save the City from liability in case of injuries on the property. City Manager Jim Filip asked for copies of the policies.

Pat Williams questioned the wisdom of putting in the camper park for $35,0000 before knowing if the hotel-motel complex can be financed. She also objected to the camper parking itself.

When asked about financing of the complex, Clouse stated his firm would first seek assistance from the state tourism revolving fund because it is 8% money, a lower interest rare than available at present through conventional financing. Pat Williams expressed doubt the firm would be able to secure financing from the state in less than a year.

Lary Urbach requested Council to demand ta performance bond if the extension were granted. When the vote was taken however, no mention was made of such a bond.

City Manager Jim Filip recommended against the extension, stating he was not sure the firm was dealing in good faith. He didn’t, however, indicate that perhaps six months had been too short a time to allow the firm to get the feasibility study done, have the completed plans and secure funding so that the construction of the hotel-motel portion could be started.

Since a bare quorum of four Councilmembers was present, and apparently fearing one vote would have a deciding factor, Councilman Vincent moved to table the issue until more Councilmembers could be present. His motion failed. When the motion to grant the extension was introduced there was no further discussion and Council voted unanimously in favor.

The City is not some $9,000 richer and Last Frontier has a year to being construction of the hotel-motel segment of the development. Construction of the camper park is expected to being immediately.

Whether he Jesse Lee building s should be preserved if possible or razed due to their nuisance value, has been a hotly contested issue in Seward since the Methodists relinquished the orphanage property in 1965.

Jesse Lee Again!
Seward Phoenix Log
June 27, 1974

An emergency ordinance providing for the amendment of Chapter 21 of the City Code failed on a 3-2 vote with Vincent and Hum dissenting. The measure was intended to allow Last Frontier, Inc. to install a camper trailer facility at the Jesse Lee Home property.

Both Vincent and Hulm felt the measure worded as it was, would open the door to trailer courts in the City. Though both have long been proponents of the development of Jesse Lee, they said they feared the ordinance would go against public will.

“I am in favor of construction beginning tomorrow but I don’t like the wording of the ordinance”, said Vincent.

“I don’t want future Councils to use this as a lever to allow a trailer court as such”, Hulm said.

Dague said he understood from the motion made approving an extension for the firm, that only camper and recreations type vehicles would be allowed.

A special Council meeting may be necessary to clarify the ordinance –after the City Attorney has the opportunity to review the Ordinance again. The City Manager also revealed that the check received by by the City to meet the contract with issued by A.I. M. incorporated, not by Last Frontier. He said he was not sure who the City is now dealing with.

Herman Leirer said A.I.M. is a group of Anchorage realtors.

“You are dealing with some sharp people now,” he said. “You had better be careful.” Leirer further suggested the need for a different City Attorney.. “I don’t think that ordinance meets the requirements at all, it doesn’t coincide with the wishes of the people,” he added. He hazarded a guess that the City would be involved in another lawsuit over the Jesse Lee property, no matter how Council acted. The City Manager had earlier in the meeting stated for the first time in six years the City would not be faced with litigation.

Councilman Dague questioned the status of the Jesse Lee property. Filip said though there hadn’t been much development accomplished by Last Frontier, Inc. this past summer, they had gotten the sewer and water installed. He added, however, that the City insurance firm ad been alerted o the fact that a youngster had fallen from the roof of part of the structures and had sustained a fractured jaw and leg.

He said the City had copies of Last Frontier’s insurance policy but was not sure that the City is completely free of liability. Over the years it has been predicted by those who favored razing of Jesse Lee, that at some time this attractive nuisance would result int eh injury of some youngster.

Jesse Lee
Seward Phoenix Log
November 14, 1974

Council McCloud asked the status of the Jesse Lee property. The City Manger reported it appeared the city may be sued along with the company now claiming ownership, resulting from injury of a young person who fell from the roof some months ago. Work on the building has been suspended for the winter by the firm purchasing it.


And Jesse Lee…
Seward Phoenix Log
November 28, 1974

A lengthy discussion evolved when Pat Williams said she would be worried from the standpoint of the liability of the City, upon learning of the cancellation of the insurance for Last Frontier on the Jesse Lee property. She reminded Council a boy had been hurt recently at the suite and the firm was being sued.

Fred Lammers of Clary-Pioneers Insurance, which carriers the city policies, indicated agreement. He said in his experience in similar cases, the municipality could be liable.

The City Attorney said chances were 90% against the City being judged liable even though a suit could result in any injury case which would involve the city.

Mayor McAnerney asked if the cancellation of insurance did not constitute a default if another policy was not secured. The attorney answered in the affirmative but said the City would have to take action to get the property back, the default did not automatically make the property revert back to the City.

Further disclosures indicated that Last Frontier was also in default for not having put up a fence around the property as called for in the sales contract and for refusing to do any further boarding up.

Councilmen Neve indicated he felt the City would have the property back soon because the developer had not in fact done much if any developing as required by the extension asked for last spring.

Filip and the Attorney were asked to immediately contact the firm and take proper action to get insurance restored.


Jesse Lee Report
Seward Phoenix Log
December 5, 1974

Councilman Hulm said he had taken the liberty of contacting representatives of Last Frontier, Inc. the firm which has purchased the Jesse Lee property. He assured Council that AIM, the firm which now has 51% of the stock in Last Frontier, had taken out a new liability insurance policy on the property, and it is insured.

Hulm said AIM plans a 2-phase construction of a hotel-motel complex at Jesse Lee and plans to begin as soon as the architect completes the plans sometime in January. He said the physical appearance of the present buildings would change but they would be utilized.

Pat Williams said AIM was the firm which owns the Camelot-By-the-Sea subdivision and expressed fears that the Jesse Lee land would be subdivided. Hulm assured her that under the contract with the City subdivision was prohibited. He also said that the firm intedns to complete the camper-trailer park started last summer.