TypeScript: TS2.4 compile error with derived type assignment

TypeScript Version: 2.4.1

Code

// A *self-contained* demonstration of the problem follows...
export class City extends BaseModel {
  //...
}

export abstract class BaseModel extends Model {
  //...
}

export abstract class Model {
  //...
}

Expected behavior: compile without error Actual behavior:

error TS2345: Argument of type 'typeof City' is not assignable to parameter of type 'typeof Model'.
  Type 'City' is not assignable to type 'Model'.
    Types of property 'set' are incompatible.
      Type '{ <K extends "reload" | "isNewRecord" | "sequelize" | "aggregate" | "where" | "getDataValue" | "s...' is not assignable to type '{ <K extends "reload" | "isNewRecord" | "sequelize" | "aggregate" | "where" | "getDataValue" | "s...'. Two different types with this name exist, but they are unrelated.
        Type 'City' is not assignable to type 'Model'.