HomeMy WebLinkAboutRes2009-070Sponsored by: Oates
CITY OF SEWARD, ALASKA
RESOLUTION 2009-070
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
SEWARD, ALASKA, AUTHORIZING TERMINATION OF THE
EXISTING LEASE WITH CHRISTOPHER J. THAYSE AND
AUTHORIZING THE CITY MANAGER TO ENTER INTO A NEW
LEASE WITH HARBOR HOLDINGS, LLC FOR LOT 1, BLOCK 8,
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 1, Block 8,
Seward Small Boat Harbor Subdivision located in the City of Seward, Alaska; and
WHEREAS, the City of Seward entered into a Lease Agreement with Mr.
Christopher J. Thayse in on January 8, 2004; and
WHEREAS, Mr. Thayse desires to be released from his lease obligations and is
not in default of its lease; and
WHEREAS, Harbor Holdings, LLC desires to enter into a lease with the City in
the forni presented at this meeting.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF
THE CITY OF SEWARD, ALASKA that:
Section 1. The City Manager is authorized to execute a Termination of Lease
with Chris J. Thayse and to execute a new lease with Harbor Holdings, LLC and a
Personal Guarantee by Gene Minden each in substantially the form as presented at this
meeting.
Section 2. This resolution shall take effect 60 days from the date and posting
of adoption and the authorization herein shall expire if the lease termination and new
lease are not executed by all parties by November 1, 2009.
PASSED AND APPROVED by the City Council of the City of Seward, Alaska,
this 10th day of August 2009.
CITY OF SEWARD, ALASKA
RESOLUTION 2009-070
THE CITY OF SEWARD, ALASKA
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Clark Corbridge, Mayo
AYES: Valdatta, Dunham, Bardarson, Kellar, Smith, Keil, Corbridge
NOES: None
ABSENT: None
ABSTAIN: None
ATTEST:
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Jean Lewis,, CMC
City Clerk ~'~ -
(City Seal)
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COUNCIL AGENDA STATEMENT
Meeting Date: August 10, 2009
To: City Council ~ -
Through: Phillip Oates, City Manager,,,: -'%
From: Kari Anderson, Harbormaster
Agenda Item: Authorizing the termination of the existing lease with Christopher J.
Thayse and authorizing the City Manager to enter into a new lease with
Harbor Holdings, LLC for Lot 1, Block 8 Seward Small Boat Harbor
Subdivision, Plat 2000-19
BACKGROUND & JUSTIFICATION:
Christopher J. Thayse entered into a lease with the City of Seward effective January 200d for a
lot adjacent to South Harbor Street. This lease encompasses Lot 1, Block 8, Seward Small Boat
Harbor Subdivision in the Seward Recording District. Mr. Thayse requests the City Council's
consent to terminate the lease at the time a sale of property closes between himself and Harbor
Holdings, LLC. Harbor Holdings in turn requests a new lease of the same real property. The
Lease Termination with Christopher J. Thayse and the form of the new lease with Harbor
Holdings, LLC would be in substantially the form presented at this meeting. If approved by City
Council, the consent to terminate Mr. Thayse's lease and enter into a new lease would be
effective in 60 days. The termination and lease would be signed when the sale occurs between
the parties, and the City Council's consent would expire November 1, 2009 if the sale has not
closed by that date.
The proposed lease with Harbor Holdings, LLC includes a Personal Guarantee form from Mr.
Minden which addresses liability of the individual member of the LLC for the obligations of
Harbor Holdings in the event of a default.
The City will conduct appraisals of its rental property in 2010 and new rental rates will go in
effect next summer, based on fair 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:
Where applicable, this resolution is consistent with the Seward City Code, Charter,
Comprehensive Plans, Land Use Plans, Strategic Plan and City Council Rules of Procedures.
ATTORNEY REVIEW: X
FISCAL NOTE:
The rent is $22,000 annually, and shall be adjusted on July 1, 2010, and on the same date every
five years thereafter as the appraised fair market rental value. Each year between the appraisal
adjustments, the rent is subject to increase based on the Cg,~~s~t~ier Price Index.
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Approved by Finance Department ~ ~, ,~
RECOMMENDATION:
Council approve Resolution 2009-70 authorizing the City Manager to enter into a Lease
Termination with Christopher J. Thayse and a new Lease with Harbor Holdings, LLC for Lot 1,
Block 8, Seward Small Boat Harbor Subdivision.