HomeMy WebLinkAboutRes2009-095Sponsored by: Oates
CITY OF SEWARD, ALASKA
RESOLUTION 2009-095
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
SEWARD, ALASKA, AUTHORIZING TERMINATION OF THE
EXISTING LEASE WITH GERALD LORZ AS ASSIGNED TO
DANIEL AND LINDA LORZ AND AUTHORIZING THE CITY
MANAGER TO ENTER INTO A NEW LEASE WITH THE
DARLING FAMILY TRUST FOR LOT SA, BLOCK 1, 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 SA, Block 1,
Seward Small Boat Harbor subdivision located in the City of Seward, Alaska; and
WHEREAS, in 1988 the City of Seward entered into a Lease Agreement with
Gerald Lorz; and
WHEREAS, the lease was assigned to Pauline Lorz in 1996 and later that same
year assigned to Daniel F, and Linda S Lorz; and
WHEREAS, Daniel E and Linda S Lorz desire to be released from their lease
obligations and are not in default of the lease; and
WHEREAS, The Darling Family Trust desires to enter into a lease with the City
in substantially the form presented at this meeting.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF
THE CITY OF SEWARD, ALASKA that:
Section 1. It is determined that the essential terms and conditions of the
proposed termination of the Lease with Daniel E. and Linda S. Lorz, and the proposed
Lease with The Darling Family Trust for the real property described as Lot SA, Block 1,
Seward Small Boat Harbor subdivision located in the City of Seward, Alaska is in the
public's interest.
Section 2. The City Manager is authorized to execute a Termination of Lease
with Daniel E. and Linda S. Lorz, and to execute a new Lease with The Darling Family
Trust, each in substantially the form as presented at this meeting.
Section 3. This resolution shall take effect 30 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 December 31, 2009.
CITY OF SEWARD, ALASKA
RESOLUTION 2009-095
PASSED AND APPROVED by the City Council of the City of Seward, Alaska,
this 12`x' day of October, 2009.
THE CITY OF SEWARD, ALASKA
Clark Corbridge, Mayor
AYES: Valdatta, Bardarson, Dunham, Keil, Smith, Corbridge
NOES:
ABSENT:
ABSTAIN:
VACANT: One
AT~,EST:
' ~ J ~i
J n Lewis C C
.1 •®~~or9l°°
't Clerk .••~~ S~;'~ °°o,,
(City Seal) ~ a~r~ '.
• ~
a~~a ~,
s
~ ® ~ r ~ ~
r a N
~ ~ -..+~y s y w
• 6
COUNCIL AGENDA STATEMENT
Meeting Date: September 28, 2009
Through: Phillip Oates, City Manage~~~
From: Kari Anderson, Harbormaster
Agenda Item: Terminating Lorz Lease and Authorizing New Lease with Darling
Family Trust
BACKGROUND & JUSTIFICATION:
The City is the owner of real property described as Lot SA, Block 1, Seward Small Boat
Harbor Subdivision, Plat 2000-19 located in the City of Seward, Alaska. In 1988 the City
of Seward entered into a Lease Agreement with Gerald Lorz. The lease was assigned to
Pauline Lorz in 1996 and later that same year assigned to Daniel E and Linda S Lorz.
Daniel E and Linda S Lorz desire to be released from their lease obligations and are not
in default of the lease. Hugh and Iris Darling of the Darling Family Trust desire to enter
into a lease with the City in substantially the form as presented at this -neeting.
The Darling Family Trust has purchased the building known as The House of Diamond
Willow. They now request to lease the property Lot SA, Block 1, Seward Small Boat
Harbor Subdivision. Presently it is used for storage space, but on or before July 1, 2010,
it will be used for a Port and Harbor Related Retail Business as stipulated in the Icase
documents.
If approved by City Council, the consent to terminate the Lorz lease and enter into a new
lease with The Darling Family Trust would be in substantially the same form presented at
this meeting. The consent to terminate the Lorz lease and enter into a new lease will be
effective in 30 days.
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.
INTENT: To approve a lease assignment of Lot SA, Block 1 Seward Small Boat Harbor
Subdivision from Daniel and Linda Lorz to Hugh and Iris Darling (Darling Family
Trust). The current lease with Daniel and Linda Lorz will terminate, and the City will
enter into a new lease with the Darling Family Trust.
ATTORNEY REVIEW: Yes
~,
1~
FISCAL NOTE:
The rent is Five Thousand Six Hundred Dollars ($5,600.00) annually, subject to fair
market value increases every five years. Upon execution of the new lease, the rent will
be subject to annual CPI increases each year in between. The last appraisal rate started
on January 1, 2006 and will run through June 30, 2010.
Approved by Finance Department ~~~ ,~/kv
RECOMMENDATION:
Council approve Resolution 2009~~ Authorizing Termination Of The Existing Lease
With Gerald Lori As Assigned To Daniel And Linda Lorz And Authorizing The City
Manager To Enter Into A New Lease With The Darling Family Trust For Lot SA, Block
1, Seward Small Boat Harbor Subdivision, Plat No. 2000-19 [n The Seward Recording
District, Third Judicial District, State of Alaska.