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HomeMy WebLinkAboutRes2004-029 Sponsored by: Shealy I CITY OF SEWARD, ALASKA RESOLUTION 2004-29 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, TERMINATING LEASE RE-71-064 AND AUTHORIZING THE CITY MANAGER TO ENTER INTO A NEW LEASE AGREEMENT WITH DOT BARDARSON AND LINNE BARDARSON FOR LOT 5B, BLOCK 1, SEWARD SMALL BOAT HARBOR SUBDIVISION WHEREAS, Dot Bardarson and Linne Bardarson (collectively the Lessee) currently lease Lot 5B, Block 1, Seward Small Boat Harbor Subdivision for the purpose of operating Bardarson Studio; and WHEREAS, Lessee requests an extension of the lease term; and WHEREAS, Lease RE- 71-064 originally dates from 1988 and standard terms, conditions, insurance, legal and other items have changed; and WHEREAS, a new Lease has been drafted to address these changes and the existing lease (which would run to 2018) will be terminated; and I WHEREAS, the City Council has determined that the continued development of the harbor area and operation of Bardarson Studio at Lot 5B, Block 1, is in the public interest. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, that: Section 1. For the reasons stated in the recitals and incorporated herein by this reference, it is in the public interest to replace the existing lease with a new lease covering Lot 5B Block 1 Seward Small Boat Harbor Subdivision for a longer lease term The City Manager is authorized and directed to enter into a lease agreement with Dot Bardarson and Linne Bardarson in substantial form as attached hereto; notwithstanding the foregoing, the City Manager may make such changes or corrections as needed to finalize the lease transaction but without changing the essential terms and conditions as set out in the attached lease. The City Manager is also authorized to sign and record any and all related documents in connection with this transaction such as the plat, the lease termination, the memorandum of lease, and the like. I Section 2. The effective date of the new lease shall begin following the effective date of this resolution and upon the signing of the lease and any associated documents and recording of the new memorandum of lease. Lease RE-71-064 will be terminated upon that effective date. Section 3. The lease rate will be at the existing rate reflecting the year 2000 fair market appraisal adjustments as applicable under the existing lease. The lease rate under the new lease will be subject to periodic re-appraisals as provided in the lease, and, for this reason, the public interest will not be served by requiring an appraisal at this time. Section 4. This resolution shall take effect 30 days after adoption and posting. PASSED AND APPROVED by the City Council of the City of Seward, Alaska this 22nd day of March 2004. THE CITY OF SEWARD, ALASKA ~~~~ C, David Brossow, Mayor AYES: NOES: ABSENT: ABSTAIN: Shafer, Branson, Dunham, Clark, Valdatta, Amberg, Brossow None None None ATTEST: ~!ta~-~)(l J ea{t Lewis i,,--/ City Clerk ""UUII"" ......" Of SEt,,/ l,f!>~ ,:t ~--l ......... !J~;t'}.t.,.. ~ (} ,"o?POftq,;;..;F<.> ~ ~ ..'.;..v <0'. ":. : :~ -+- ~ ~ (City !e~)i SEAL 1 0 E = ~ : ~ .... --.-- . '";' ':. -.. ,," :'~' ~ \SI;;<VIvE 1 ..~)~''.j;r,f' ~ ':AIr........,... <'";;> ..... ##'6,1:: OF f\\..~..,,"" ,'.....ua." COUNCIL AGENDA STATEMENT Meeting Date: March 22, 2004 Through: Phil Shealy, City Manager From: Harbormaster, James B. Beckham Agenda Item: Terminating lease RE-71-064 and authorizing the City Manager to Enter into a New Lease Agreement with Dot Bardarson and Linne Bardarson for Lot 5B, Block 1, Seward Small Boat Harbor Subdivision. BACKGROUND & JUSTIFICATION: Dot and Linne Bardarson have a lease (RE-71-064) with the City of Seward to operate Bardarson Studios in the harbor area. The Lessee requests an extension to the term of the Lease. Since this Lease originally dates from 1988 and standard terms, conditions, insurance, legal and other items have changed, a new Lease has been drafted. The existing lease (which would run to 2018) will be terminated. The lessee is current on all real, personal and sales taxes, utilities, lease payments assessments, licenses and required insurance. An appraisal is not necessary at this time because the year 2000 reappraised rates from the prior leases will be continued, and the lease rates will be adjusted in 2005 and each five years thereafter under the terms of the lease. 1. Comprehensive Plan X Economic Development, Small Boat Harbor Development: expand and maximize potential of the existing harbor. 2. Strategic Plan X_ Growth Management and Land Use Planning: Promote residential and commercial development inside the city 3. Other: Municipal Lands Management Plan X Leases: …continue to dispose of commercial and industrial lands through long term leases… Small Boat Harbor Management Plan Lands: …ensure that existing lease sites are fully developed… FISCAL NOTE: Estimated staff and legal time costs to close out the existing leases and create the new lease is $2,500. This lease generates $4,000 in annual rent. Approved by Finance Department RECOMMENDATION: Council approve Resolution 2004-29, terminating lease RE-71-064 and authorizing the CityManager to enter into a new lease agreement with Dot Bardarson and Linne Bardarson for Lot 5B, Block 1, Seward Small Boat Harbor Subdivision. Page 1