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HomeMy WebLinkAboutRes2009-039Sponsored by: Oates CITY OF SEWARD, ALASKA RESOLU"PION 2009-039 A RESOLUTION OF THE CITY COUNCIL OF THF, CITY OF SEWARD, ALASKA, AUTHORIZING '1'F,RMINATION OF THE EXISTING LEASE WITH JACK SCOBY AND SHEILA L. SCOBY DBA ORCA ENTERPRISES AND AU'T'HORIZING THE CITY MANAGER TO ENTER INTO A NF.W LEASE WITH DOCKSIDE VF,NTURES, LLC FOR LOT 10, BLOCK h, SEWARD SMALL. BOAT HARBOR SUBDIVISION, PLAT 2000-19, SEWARD RECORDING DISTRICT, THIRD JUDICIAL DISTRICT, STATE OF ALASKA WHEREAS, the City is the owner of real property described as Lot 10, Block 6, Seward Small Boat harbor Subdivision located in the City of Seward, Alaska; and WHEREAS, the City of Seward entered into a Lease Agreement with Jack and Sheila Scoby dba Orca Enterprises on April 28, 2000; and WHF.RF,AS, Orca Enterprises desires to be released from its lease obligations and is not in default of its lease; and WHEREAS, Dockside Venlures, LLC desires to enter into a lease with the Cily in substantially the form presented at this meeting. NOW, THEREFORE, BF, IT RESOLVED BY TIiF. CITY COUNCIL OF TIIF. CITY OF SEWARD, ALASKA that: Section 1. The City Manager is authorized to execute a Termination of Lease with Jack and Sheila Scoby dba Orca Enterprises and to execute a new lease with Dockside Venlures each in substantially the forni as presented at this meeting. Section 2. This resolution shall take effect 30 days from the date of adoption and the authorization herein shall expire if both the lease termination and new lease are not executed by all parties by.luly 1, 2009. PASSF,D AND APPROVED by the City Council of the City of Seward, Alaska, this 1 1 "' day of May 2009. CITY OF SEWARD, ALASKA RESOLUTION 2009-039 THE CITY OF SEWARD, ALASKA ~` Clark Corbridge, Mayor AYES: Valdatta, Dunham, Kellar, Corbridge NOES: None ABSENT: Bardarson, Smith, Keil ABSTAIN: None ATTEST: Jean Lewis, CMC - City Clerk (City Seal) ®,'~ ~raerRrarr°rrr s0 w~ .,ei F`< e ~,. a n a ..:,, w. _,,.~... ,,, '" m r e~ ~~r 4, ., M r K a. • ~a +i . • ~ e 'yr <y •,rdi rr~IFZr.t rr'~~~V ~~ COUNCIL AGENDA STATEMENT >~~ ~, ~- Meeting Date: May 11, 2009 Through: Yhillip Oates, City Manages,,..~~1~/ From: Kari Anderson, Harbormaster Agenda Item: Authorizing ternination of the existing lease with Jack and Sheila Scoby dba Orca Enterprises and authorizing the city manager to enter into a new lease with Dockside Ventures, LLC for Lot 10, Block 6 Seward Small Boat Harbor Subdivision, Plal 2000-19 BACKGROtiND & JUSTIFICATION Jack and Sheila Scoby entered into a lease with the City of Seward effective April 2000 for a boardwalk lot site in the harbor area. This lease encompasses Lot 10, Block 6, Seward Small Boat Harbor Subdivision in the Seward Recording District. The Scoby's request the City Council's consent to terminate the Lease at the time a sale of property closes between the Orca Enterprises and Dockside Ventures, LLC. Dockside Ventures in turn requests a new lease of the same real property. The Lease Termination with the Scoby's (Orca Enterprises) and form of the new (ease with Dockside Ventures, LLC would be in substantially the fornl presented at this meeting. If approved by the City Council, the consent to terminate Orca Enterprises' lease and enter into a new lease would be effective in 30 days. The termination and lease would be signed when the sale occurs between the parties; and the City Council's consent would expire .Iuly 1, 2009 if the sale has not closed by that date. Resolution 2009-U~`I also terminates Resolution 2000-028; the resolution approved by the City Council on March 28'x, 2000 authorizing the existing lease with Orca Enterprises. This will be formalized with the signed Agreement to Terminate Lease form. The proposed lease with Dockside Ventures includes a Personal Guarantee from the four members comprising Dockside Ventures, LLC which addresses liability of the individual members for the obligations of Dockside Ventures in the event of a default. The City will conduct appraisals of its rental property in 2010 and new rental rates are now in effect, based on fau market rental values. The assignment and release will not decrease the rent paid to the city. The new lease includes an annual adjustment to rent based on the Anchorage Consumer Price Index. CONSISTENCY CHECKLIST Yes IVo NIA l . Comprehensive Plan X (Economic Development, Small Boat Harbor Development: expand and maximize potential of the existing harbor) 2. Strategic Plvl X Growrth Management and Land Use Planning: Promote residential and commercial development inside the city) 3.) Other: Municipal Lands Management Plan X (Leases:... continue to dispose of commercial and industrial lands through long term leases...) Small Boat Harbor Management Plan (Lands:...ensure that existing lease sites are fiilly developed) FISCAL TE The rent is six thousand five hundred and thirty-four dollars and nih s boa dwalk and w ter sse sme its comprised of the following annual amounts: Base rent of $4.80Q00, p through June 30, 2015 of $1,73492. The aiurual base rental payment shall he adjusted on July 1, 2010, and on the same date eaery five years thereafter, based on the appraised fair market. rental value. Finance Department: ~~~~rc.ti ~ Z - ATTORNEY REVIEW RECOMMENDATION Council approve Resolution 2009-~'~;`~' authorizing the City manager to enter into a Lease Termination with Jack and Sheila Scoby dba Orca Enterprises and a new Lease with Dockside Ventures, LLC for Lot 10, Block 6, Seward Small Boat Harbor Subdivision.