HomeMy WebLinkAboutRes2010-006 FAILED Sponsored by: Oates
CITY OF SEWARD, ALASKA
RESOLUTION 2010 -006
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD,
ALASKA, AUTHORIZING THE CITY MANAGER TO ENTER INTO A
NEW LEASE WITH GODWIN GLACIER, LLC FOR LOT 4, BLOCK 3,
SEWARD MARINE INDUSTRIAL SUBDIVISION, PLAT 97 -27, SEWARD
RECORDING DISTRICT, THIRD JUDICIAL DISTRICT, STATE OF
ALASKA
WHEREAS, the City is the owner of real property described as Lot 4, Block 3, Seward
Marine Industrial Subdivision located in the City of Seward, Alaska; and
WHEREAS, this is vacant land identified in the Municipal Lands Management Plan as
available for lease in the Seward Marine Industrial Center (SMIC); and
WHEREAS, pursuant to Seward City Code §7.05.120, this Lease is subject to Council
approval; and
WHEREAS, Godwin Glacier Tours, LLC desires to enter into a lease with the City in
the form presented at this meeting; and
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 new lease with Godwin
Glacier Tours, LLC in substantially the form as presented at this meeting.
Section 2. This resolution shall take effect 30 days from the date and posting of
adoption and the authorization herein shall expire if the new lease is not executed by all parties
by March 30, 2010.
FAILED by the City Council of the City of Seward, Alaska, this 25 day of January
2010.
CITY OF SEWARD, ALASKA
RESOLUTION 2010 -006
THE CITY OF SEWARD, ALASKA
%illard E. 1 unham, Mayor
AYES: None
NOES: Valdatta, Bardarson, Smith, Keil, Shafer, Amberg, Dunham
ABSENT: None
ABSTAIN: None
ATTIST:
Je, Lewis, MI
Ci y Clerk
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(City Seal) + . + .4 +
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COUNCIL AGENDA STATEMENT
Meeting Date: January 25, 2010
of seis„
Through: Phillip Oates, City Manager
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From: Kari Anderson, Harbormaster
Agenda Item: Authorizing the City Manager to enter into a new lease with Godwin
Glacier, LLC for Lot 4, Block 3 Seward Marine Industrial Center
Subdivision
BACKGROUND & JUSTIFICATION:
On August 10, 2009 Resolution 2009 -075 approved a short term (120 -day) lease with Godwin
Glacier Tours, LLC and the City of Seward until a long term lease could be generated by the
City and approved by Seward City Council. This lease encompassed Lot 4, Block 3, Seward
Marine Industrial Center Subdivision in the Seward Recording District and was valid through
November 28, 2009.
Seward City Code §7.05.410 authorizes the City manager to negotiate short-term leases of
lengths that may not exceed 120 days in length. This timeframe should have been sufficient to
negotiate a new lease between the City and Godwin Glacier Tours, LLC. Lease documents were
emailed to Godwin Glacier Tours on September 17 25 October 8 th, 9th, 14th, and again on
November 5 Multiple teleconferences were arranged with the Community Development
Director and the Seward Harbormaster to negotiate the terms of the lease, and several of these
teleconferences were never attended by a representative of Godwin Glacier Tours. The City of
Seward made every effort to negotiate a long term lease in time for the October 26 City
Council meeting. It was important to pass a resolution at this meeting, because there is a 30 day
period after City Council passes a resolution before the resolution becomes effective and during
which Council can change its mind ( §4.8 of the City Charter). Passing a lease at the October 26
council meeting would have made the long term lease valid before the short term lease
expired, however this did not happen and Godwin Glacier Tours continues to store their
equipment on City property without a valid lease.
Godwin Glacier Tours has requested the lease land for the purpose of storing three (3) connexes
containing marine and aviation equipment, and storing wheeled vehicles, all owned by lessee and
used in lessee's business. Mobilization and demobilization of this equipment by helicopter form
the lease site is not allowed in this lease and animals are not to be kept on the leased property.
The lessee has agreed to utilize the SMIC North Dock for this purpose and must first obtain a
Terminal Use Permit prior to commencing loading operations.
The site plan attached as Exhibit A with the Lease documents shows the area will be used for
storing three connexes and vehicle storage. Exhibits B and C address Waste Disposal and
Environmental Regulation compliance plans. Exhibit D outlines the recommendations made by
the Planning & Zoning Commission.
The proposed lease is valid through December 31, 2011 with three (3) additional extensions of
five (5) year periods each.
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CONSISTENCY CHECKLIST:
Yes (List Below) No
Comprehensive Plan (2020)
The proposed use of the property as a storage facility is reasonably inline with the recommendations of the Seward
Comprehensive Plan. Under both the economic development and land use goals of the Comprehensive Plan,
specific recommendations are made to continue efforts to develop the Seward Marine Industrial Center as a major
industrial area of the community.
Seward Marine Industrial Center Development Plan
This plan encourages the focus on strengthening and enhancing the area as a center for marine and other compatible
industries. The plan encourages the leasing of available lands for uses identified in the Land Uses Allowed Table.
Where applicable, the resolution is consistent with the Seward City Code, Charter, Comprehensive Plans, Land Use
Plans, Strategic Plan and City Code Rules of Procedures.
INTENT: To approve a long -term lease with Godwin Glacier Tours for Lot 4, Block 3, Seward
Marine Industrial Center.
ATTORNEY REVIEW: Yes
FISCAL NOTE:
The rent is Two Thousand Thirty Two Dollars ($2,032.00) 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. An additional $1,500.00 fee for attorney and staff time to develop
and negotiate this lease must be paid prior to the execution of this lease.
Approved by Finance Department XuJ-t,ta
RECOMMENDATION:
Council approve Resolution 2010- QD/, authorizing the City Manager to enter into a new
Lease with Godwin Glacier, LLC for Lot 4, Block 3, Seward Marine Industrial Center
Subdivision.
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PERSONAL GUARANTEE
To induce the City of Seward, P.O. Box 167, Seward, AK 99664 ( "City ") to
enter into a Lease Agreement with Godwin Glacier Tours, LLC, P.O. Box 2711,
Seward, AK 99664 ( "Lessee ") effective , 2010, the undersigned personally
guarantees payment of all obligations of Lessee as described in the Lease Agreement.
The Lease Agreement covers the following real property:
Lot 4, Block 3, Fourth of July Creek Subdivision, Seward Marine
Industrial Center, Plat No. 97 -27 recorded in the Seward Recording
District, Third Judicial District, State of Alaska, containing
approximately 13,521 square feet, more or less.
I agree to provide the City with written notification of any changes in my
address, and acknowledge that any notice required to be given by the City will be
effective if mailed to the address shown below or such changed address on file with the
City.
My guarantee is absolute and unconditional. Upon default of Lessee under the
Lease Agreement, I agree to immediately become liable for Lessee's obligations. The
City need not seek performance, payment, and collection from Lessee before seeking
payment from me. If more than one person guarantees payment, I agree to be jointly
and severally liable with all other arantors for payment.
Dated this I ( day of� , 2010.
t, Si ed in my individual capacity as guarantor:
J. es C .
P.O. 'Box 2711
Sward, AK 99664
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