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Council Agenda Statement <br />Meeting Date: Monday, January 26, 2009 <br />To: City Council <br />Through: City Manager Phillip Oates <br />From: Executive Liaison Anne BaileyA <br />Agenda Item: Resolution 2009-~, Authorizing the City Manager to Enter Into an <br />Amendment to the "Amended and Restated Agreement for Lease of <br />Tract 2A, Waterfront Tracts, and Adjacent Tidelands, and the Lease, <br />Operation and Maintenance of the Alaska SeaLife Center" with the <br />Seward Association for the Advancement of Marine Science <br />BACKGROUND & JUSTIFICATION• <br />In 2006, the City of Seward ("City") and the Seward Association for the Advancement of Marine <br />Science ("SHAMS") entered into an Amended and Restated Agreement for Lease of Tract 2A, <br />Waterfront Tracts, and Adjacent Tidelands, and the Lease, Operation and Maintenance ofthe Alaska <br />SeaLife Center (the "Lease"). The City and the State of Alaska Department of Fish and Game are <br />parties to a Cooperative Agreement 1'or the Construction, Operation, and Maintenance of Research <br />Inlcastrueture Improvements at the Alaska SeaLife Center, in Seward, Alaska executed in April <br />1995, as amended (the "Cooperative Agreement"). <br />The City has an obligation under the Cooperative Agreement to own, operate, and maintain the <br />Alaska SeaLife Center for the for the practical life of the facility, and the practical life of the facility <br />ends upon the occurrence of both of the following: <br />i. the City makes a reasonable determination, as verified by an independent financial consultant <br />selected or approved by ADF&G, that the facility is not capable of generating revenues <br />sufficient to cover the operating expenses and debt service of the facility, and <br />ii. while being operated in accordance with any recommendation from the independent financial <br />consultant and in accordance with terms and conditions of the agreement during the two-year <br />period following the City's determination, the facility does not generate revenues sufficient <br />to cover the operating expenses and debt service of the facility, plus fund sufficient reserves <br />for repairs and replacements in the facility. <br />If the Ciry elects not to operate the facility the City is obligated to continue operating the SeaLife <br />Center for one year while ADF&G determines whether to exercise its option to enter and assume <br />operation of the SeaLife Center. <br /> <br />