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:

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CHECKED BY:

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Contract No. 20743 - Exhibit AWilson Brothers Distributing Co., Inc.

1" = 200 2021-01-04

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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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Chena River WalkAppraisal Overview

1" = 200' 2021-06-25

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ALASKA RAILROAD CORPORATIONREAL ESTATE DEPARTMENT, LAND SERVICES

Fairbanks Terminal Reserve

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1 Inch = Feet

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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

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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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AILROAD CORPORAT

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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

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500

Lease 5278

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Lease 5278

Parcel 1

Lease 5278

Parcel 3

Lease 5278

Parcel 6

Lease 5278

Parcel 2

SCALE: DATE:

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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'

Lease 20745

33,948 sq ft

(0.78 ac±)

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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:

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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