HomeMy WebLinkAboutRes2009-056Sponsored by: Oates
CITY OF SEWARD, ALASKA
RESOLUTION 2009-056
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
SEWARD, ALASKA, APPROVING A THIRD AMENDMENT
LEASE OF LOT 1, BLOCK 10, 4T" OF JULY CREEK
SUBDIVISION TO EXTEND THE TERM OF THE LEASE BY
FIVE YEARS AND APPROVE AN ASSIGNMENT TO GCI
COMMUNICATIONS CORPORATION
WHEREAS, in order to ensure the continued use of valuable city-owned land
(Re-88-067) and to allow for businesses' long-term planning, the City leased land to GCI
Cable, Inc. utilized the site for a communication tower occupying 1,886 square feet of
property more commonly known as Lot 1, Block 10, 4th of July Creek Subdivision,
Seward Marine Industrial Center; and
WHEREAS, the lease began on June 23, 1988 through June 22, 2008 including a
ten-year extension. The parties have operated on month to month extensions, authorized
by the Lease, since June 2008; and
WHEREAS, GCI Cable, Inc. wishes to continue their lease through June 22,
4.... 2013; and
WHEREAS, GCI Cable would like to assign the lease to its affiliate GCI
Communications Corporation; and
WHEREAS, notice of Lease Amendment No. 3 was published and a public
hearing was held.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF
THE CITY OF SEWARD, ALASKA that:
Section 1. The City Manager is hereby authorized to enter into Lease
Amendment No. 3, in substantially the form presented at this meeting, on behalf of the
City.
Section 2. This resolution shall take effect thirty (30) days after passage and
posting.
PASSED AND APPROVED by the City Council of the City of Seward, Alaska,
this 13th day of July 2009.
CITY OF SEWARD, ALASKA
RESOLUTION 2009-056
THE CITY OF SEWARD, ALASKA
Clark Corbridge, Mayor
AYES: Valdatta, Bardarson, Kellar, Keil, Corbridge
NOES: None
ABSENT: Smith
ABSTAIN: Dunham
ATT1ErST:
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Jean Lewis, CMC
City Clerk ~<<~~~~~~~~re~r
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COUNCIL AGENDA STATEMENT
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Meeting Date: July 13, 2009 ~~ ~~
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Through: Phillip Oates, City Manage ~ %~
From: Kari Anderson, Harbormaster
Agenda Item: Authorizing the City Manager to enter into a lease extension with GCI Communications
Corp. for Lot 1, Block 10, 4`~' of July Creek, Seward Marine Industrial Center
BACKGROUND & JUSTIFICATION
GCI Communications Corporation (formerly Seward Cablevision, later GCI Cable) entered into a lease with
the City of Seward effective June 1988 for a site at the Seward Marine Industrial Center. This lease
encompasses Lot I, Block 10, 4`~ of July Creek, Seward Marine Industrial Center in the Seward Recording
District. Article V2 allowed the lease to be extended through June 2008 and the lease has been continued past
this date on a month to month basis with all terms, covenants and conditions related to Article V.3 in the
current lease. GCI Communications Corp. is requesting a 5 year extension of this lease through June 2013.
This lease area encompasses 1,884 square feet. The attached map shows the leased site in relation to Nash
Road and other leased and private properties in the Seward Marine Industrial Center. The site will be used
only for construction, maintenance and operation of a technical facility and related communication equipment
in conjunction with GCI's operations as a telecommunications provider. Any improvements to the site will be
approved by the City in writing prior to construction.
The City will conduct appraisals of its rental property in 2010 and new rental rates are now in effect, based on
fair market rental values. The lease extension includes an annual adjustment to rent based on the Anchorage
Consumer Price Index.
CONSISTENCY CHECKLIST Yes No N/A
1. Comprehensive Plan X
(Economic Development, Support development of modern communications infrastructure)
2. Strategic Plan X
(Growth Management and Land Use Planning: Promote residential and commercial development inside the
city)
3. Other: SMIC Development Plan X
(Goal: Sound, Maximized and Coordinated Development of private and public uplands in support of the needs
of the users and visitors)
FISCAL NOTE
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The rent is four hundred ($400.00) dollars and is paid in two semi-annual installments. The annual base renal
payment shall be adjusted on July 1, 2010, and on the same date every five years thereafter as the appraised
fair market rental value.
Finance Department: lc, ~ ~- ~~ ~ , f~~~~p~~
ATTORNEY REVIEW X
RECOMMENDATION
Council approve Resolution 2009- U~~G~authorizing the City manager to enter into a Lease extension with
GCI Communications Corp. for Lot I, Block 10, 4`~' of July Creek, Seward Marine Industrial Center.
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