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HomeMy WebLinkAboutRes2010-078 Sponsored by: Oates CITY OF SEWARD, ALASKA bow RESOLUTION 2010 -078 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, AUTHORIZING THE CITY MANAGER TO ENTER INTO AN AMENDMENT TO THE LEASE AGREEMENT 75 -055 WITH THE UNITED STATES OF AMERICA FOR LOT 2, BLOCK 6, MARINA SUBDIVISION, SEWARD SMALL BOAT HARBOR, FOR THE PURPOSE OF EXTENDING THE TERM OF THE LEASE TO SEPTEMBER 30, 2011 WHEREAS, the UNITED STATES OF AMERICA, specifically the U.S. Coast Guard, ( "Lessee ") has requested a lease term extension to its existing lease agreement with the City of Seward for 7,500 square feet, more or less, within Lot 2, Block 6, Marina Subdivision, Seward Small Boat Harbor, Kenai Peninsula Borough Plat number 2000 -166, Seward Recording District, Third Judicial District, State of Alaska; and WHEREAS, the current lease has been in effect since February 27, 1986 and the Lessee has submitted a request for a one year extension of the lease term; and WHEREAS, the Alaska Railroad has a lease agreement with the City of Seward for a portion of land where the U.S. Coast Guard building crosses the lot line; and w. WHEREAS, the Alaska Railroad lease with the City will expire March 31, 2011; and WHEREAS, prior to March 31, 2011 the City administration and the Alaska Railroad administration are expected to seek council and board approval, respectively, of an extension of the City /Railroad lease to September 31, 2011; and WHEREAS, it is in the best interest of the of the City of Seward to allow this one -year extension to facilitate the relocation of the USCG shore - support facilities and the USCG Cutter Mustang to the north -east harbor during the same time - frame; and WHEREAS, there were no extensions allowed by the original Lease, however this lease amendment acknowledges the Lessee shall have a final extension for one year beginning on October 1, 2010 through September 30, 2011; and WHEREAS, the Lease Agreement was amended to increase the annual rental rate as established in the City of Seward 2010 appraisal report. 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 an amendment of the lease agreement with the UNITED STATES OF AMERICA in substantial form as presented at CITY OF SEWARD, ALASKA RESOLUTION 2010 -078 this meeting, to extend the Lease term to September 30, 2011 and to include amendments to the Lease as described in the above recitals. Section 2. This resolution shall take effect thirty (30) days after its adoption and posting. Upon effectiveness of this resolution, the amendment will be effective October 1, 2010. PASSED AND APPROVED by the City Council of the city of Seward, Alaska, this 13th day of September, 2010. THE CITY OF SEWARD, ALASKA ^/ Willard E. Dunham, Mayor AYES: Valdatta, Smith, Shafer, Amberg, Dunham NOES: None ABSENT: Keil, Bardarson ABSTAIN: None ATTEST: ft JI Le Mr C y Clerk 00_7,1;74 (City Seal) (C. ,�•„ • • r A { 4 c. ♦ .t u �� sj Council Agenda Statement Meeting Date: September 13, 2010 e 4 Of sett, Through: Phillip Oates, City Manager From: Kari Anderson, Harbormaster Subject: Lease Amendment for USCG 75 -055 BACKGROUND & JUSTIFICATION: Initially, the United States Government (U.S. Coast Guard), entered into a lease with the City for 7,500 square feet, more or less, within Lot 2, Block 6, Marina Subdivision, Seward Small Boat Harbor. This leased area encompasses the USCG shore - support building and associated infrastructure. Clause 5 of Standard Form 2 of this lease provides that the Lessee shall not extend the initial term of the Lease past the last day of September 2010. However, this proposed lease extension would be the first and final extension of the current lease for a maximum period of one year, through the last day of September 2011. The U.S. Coast Guard has requested this one year extension, to allow the shore - support building to be relocated to a new lease site in the NE Harbor during the Summer of 2011 concurrent to the timeline of the USCG Cutter Mustang relocation to the Security (Z) float. The building located on this site crosses a lot line, in violation of SCC 12.01.030. A portion of the building is located on land owned by the Alaska Railroad. To that end, the City and the Alaska Railroad entered into a lease agreement in 1986 for a portion of undeveloped land, which was in turn utilized by the U.S. Coast Guard. The Alaska Railroad lease expires March 31, 2011 and the Railroad administration will be seeking Board approval of an extension to September 30, 2011. The Lease Amendment now before council for approval will extend the lease of City -owned land to September 30, 2011. Prior to March 31, 2011, a lease extension with the Alaska Railroad is expected to be presented to council for approval. INTENT: To propose an extension of the current lease with the UNITED STATES OF AMERICA (U.S. Coast Guard), #75 -055 for an additional year, ending September 30, 2011. 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 or Other Plans or Policies: Yes (List Below) No 1.) Comprehensive Plan Economic Development, Small Boat Harbor Development: expand and maximize potential of the existing harbor 2.) Strategic Plan Growth Management and Land Use Planning: Promote residential and commercial development inside the city 3.) Municipal Lands Management Plan Leases:... continue to dispose of commercial and industrial lands through long term leases... 4.) Small Boat Harbor Management Plan Lands: ...ensure that existing lease sites are fully developed FISCAL NOTE: The Lease Agreement was amended to increase the annual rental rate as established in the City of Seward Appraisal report. Approved by Finance Department: 1 24441,44,d4g,,,________ ATTORNEY REVIEW: YES X NO RECOMMENDATION Council approve Resolution 2010 - approving the extension of lease number 75 -055 with the U.S. Coast Guard to September 30, 2011 and amending the lease.