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HomeMy WebLinkAboutRes1985-049 . . . . . CITY OF SEWARD, ALASKA RESOLUTION NO. 85-49 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, AUTHORIZING A LONG-TERM LEASE AT LESS THAN FAIR MARKET VALUE TO THE DEPARTMENT OF THE ARMY CORPS OF ENGINEERS, AGENTS FOR THE U.S. AIR FORCE FOR THE PURPOSE OF OPERATING AN AIR FORCE RECREATION CAMP ON A PORTION OF LOT 1 AND ALL OF LOT 2, TRACT A, U.S. SURVEY 242 WHEREAS, in 1964, the United States of America and the State of Alaska entered into a long-term lease for the development of a military recreation facility on Lots 1 and 2, Tract A, U.S. Survey 242, containing ~13.7 acres; and WHEREAS, in 1983, the City of Seward acquired this property and assumed responsibility for said lease from the State of Alaska as part of the City's municipal entitlement under the Alaska Statehood Act; and WHEREAS, although said lease does not expire until 1989, it seems appropriate to renegotiate at this time in order to have the terms and conditions match the neighboring Army recreation facility which lease has expired and is in the process of being renewed; and WHEREAS, due to the needs of the City only a portion of Lot 1 is available for lease and it is recognized that substantial easements and rights-of-way must be reserved across the subject property to accommodate public utilities and future access; and WHEREAS, it is estimated that based on the appraisal of the neighboring Army property and other nearby parcels the Air Force and the City mutually agree that the property's fair market lease value is ~40, 000 per year, and that Department of Defense is bound by certain Acts and regulations which suggest fee simple acquisition prior to expending funds in excess of 50% of the appraised value of the lease property over the life of the lease; and WHEREAS, although the City would prefer to receive full fair market value through either lease or sale, it is recognized that the process for fee simple acquisition through federal appropriation proce- dures is a long and uncertain process, and the City has no intentions of forcing the Air Force to leave Seward; and WHEREAS, recognizing the monetary input the military makes into the local economy through direct purchases, jobs and tourism, the City Council finds it in the public interest to offer a negotiated less than fair market value lease to the Air Force for ~11.5 acres of City property; -1- . . . - . CITY OF SEWARD, ALASKA RESOLUTION NO. 85-49 NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, that: Section 1. The City Manager is authorized to complete nego- tiations and execute the attached agreement, which is herein incorporat- ed by reference as part of this resolution, for a long-term lease of a portion of Lot 1 and all of Lot 2, Tract A, U.S. Survey 242 with the Department of the Army Corps of Engineers, acting as agent for the U.S. Air Force. Section 2. This resolution shall take effect thirty (30) days following adoption. PASSED AND APPROVED BY THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, this 13 day of May , 1985 THE CITY OF SEWARD, ALASKA (",~diJ ~7 DONALD W. CRIPPS, YOR AYES: NOES: ABSENT: ABSTAIN: CRIPPS, HILTON, MEEHAN, SCHOLL, SIMUTIS & WILLIAMS GILLESPIE NONE NONE ATTEST: APPROVED AS TO FORM: HUGHES, THORSNESS, GANTZ, POWELL AND BRUNDIN, Attorneys for the City of Seward, Alaska 7/'tAl fJ! fwu~ Fred B. Arvidson, City Attorney (City NOTE: RESOLUTION AMENDED AT MEETING TO INCLUDE INTENT LANGUAGE MAKING IT NECESSARY THAT THE AIR FORCE AGREE TO COOPERATE WITH THE CITY TO CORRECT TRAFFIC PROBLEMS IN THE AREA OF THE MESS HALL. (C.Atty. Mary Hughes to sup- ply amended language to attach and incorporate as a part of this resolution.) (City Seal) -2- . . DEPARTMENT a= THE A~ CORPS a= ENGINEERS . LEASE No. DA CA85-5-85 CIV. ENG NORTH PACIFIC DIVISION ALASKA DISTRICT LAN> LEASE BEllfEEN CITY OF SEWARD AN> THE UNITED STATES a= AMERICA 1. THIS LEASE, made and entered into this day of fn the year one thousand nfne hundred and eighty-five by and between CITY OF SEWARD whose address is P. O. Box 167, Seward, Alaska 99664 and whose fnterest in the property hereinafter described is that of owner in fee simple for its heirs, executors, ad_infstrators, successors, and assigns, hereinafter called Lessor, and . THE UNITED STATES a= AMERICA, hereinafter called the Government: WITNESSETH: The parties hereto for the consideration hereinafter mentioned covenant and agree as follows: 2. The Lessor hereby leases to the Governlll8nt the followfng described premises. vb:" Lots 1 and 2, Tract A, U.S. Survey No. 242, Seward, Alaska, excepting therefrom a parcel of land within Lot No.1, described as follows: Commencina at the Southwest corner of Lot 1, U.S. Survey 242; thence North 00 01' East, a distance of 540 feet; thence East a distance of 150 feet; thence South a distance of 150 feet; thence East a o distance of 150 feet; thence South 29 00' West a distance of 444.4 feet; thence West a distance of 81.25 feet to the TRUE POINT OF BEGINNING; containing 2.22 acres, more or less. Total area leased contains 11.52 acres mloll as shown on attached EXHIBIT A. to be used for the following purpose: Government purposes. ENG FORM 856 REPLACES EDITION a= 1 DEC 62. WHICH IS OBSOlETE (ER 405-1-660) Jan 68 1 . . . . . . 3. TO HAVE AND TO HOlD the said premises for the term beginning May 1 1985. through 30 Sep 1985. provided that unless and until the Government shall give notice of termination in accordance with provision 6 hereof, this lease shall remain in force thereafter from year to year without further notice; provided further that adequate appropriations are available from year to year for the payment of rentals; and provided further that this lease shall in no event extend beyond 30 Sep 1995, with the right to extend year to year for two (2) subsequent ten (10) year lease periods. subject to mutual reappraisal of this agreement at the end of the third lease term. If mutually agreeable. Lessee may be granted an option for two (2) additional ten (10) year extensions. 4. The Government shall pay the Lessor rent at the following rate: TEN THOUSAND and NO/100 ($10.000.00) DOLLARS per annum in arrears. for the first ten (10) year term; and for subsequent ten (10) year lease terms, the Government shall pay Lessor rent at twenty-five (25%) percent of the fair market rental value. Said rental rate to be determined at Lessor's expense, by an M.A.I. certified appraiser during the seventh year of each lease ten-year-lease term. Payment shall be made at the end of each federal fiscal year by the Accounting and Finance Officer. Elmendorf Air Force Base. Alaska 99506. Payment for lesser periods than twelve (12) calendar months shall be pro- rated. 5. The Government shall have the right. during the existence of this lease to attach fixtures. and erect structures or signs in or upon the premises hereby leased. which fixtures and structures, or signs, so placed in, upon or attached to the said premises shall be and remain the property of the Government and may be removed or otherwise disposed of by the Government, but not to include abandonment inplace without the consent of Lesso r. 6. The Governlllent thirty (30) days notice after the shall terminate this lease at any time by giving in writing to the Lessor, and no rental shall accrue effective date of termination. 7. Any notice under the terms of this lease shall be in writing signed by a duly authorized representative of the party giving such notice, and if given by the Government shall be addressed to the Lessor at P. O. Box 167, Seward, Al aska 99664, and if given by the Lessor shall be addressed to District Engineer. U.S. Army Engineer District, Alaska, P.O. Box 898, Anchorage, Alaska 99506-0898. 8. The Lessor warrants that no person or sell ing agency has been employed or retained to sol icit or secure this lease upon an agreement or understanding for a convnission, percentage. brokerage. or contingent fee, excepting bona fide employees or bona fide established convnercial or selling -2- . . . . . . agencies maintained by the Lessor for the purpose of securing business. For breach or violation of this warranty the Government shall have the right to annul this lease without liability or in its discretion to deduct from the lease price or consideration the full amount of such commission, percentage, brokerage, or contingent fee. 9. No member of or delegate to Congress or Resident CoIInissioner shall be admitted to any share or part of this lease or to any benefit that may arise therefrom, but this provision shall not be construed to extend to this lease if made with a corporation for its general benefit. 10. (a) The Govermnent may, by written notice to the Lessor, terminate the right of the Lessor to proceed under this lease if it is found, after notice and hearing, by the Secretary of the Army or his duly authorized representative, that gratuities (in the form of entertainment, gifts, or otherwise) were offered or given by the Lessor, or any agent or representative of the Lessor, to any officer or employee of the Government with a view toward securing a lease or securing favorable treatment with respect to the awarding or amending, or the making of any determinations with respect to the performing, of such lease; provided, that the existence of facts upon which the Secretary of the Army or his duly authorized representative makes such findings shall be in issue and may be reviewed in any competent cou rt. (b) In the event this lease is terminated as provided in paragraph (a) hereof, the Government shall be entitled (i) to pursue the same remedies against the Lessor as it could pursue in the event of a breach of the lease by the Lessor, and (i1) as a penalty in addition to any other damages to which it may be entitled by law, to exemplary damages in an amount (as determined by the Secretary of the Army or his duly authorized representative) which shall be not less than three nor more than ten times the costs incurred by the Lessor in providing any such gratuities to any such officer or employee. (e) The rights and remedies of the Government provided in this clause shall not be exclusive and are in addition to any other rights and remedies provided by law or under this lease. 11. The lessor reserves the right to continued use, occupancy and development of existing public water well field and appurtenant facilities, utility easements and street rights-of-way. Areas of reservation under this paragraph are designated on the attached drawing marked EXHIBIT A. 12. The lessor shall have the right to review and comment upon plans for development of major facilities on the lease premises. The Lessee shall give fullest practicable consideration to the needs and desires of the Lessor in the final determination made involving development and operation of the recreation camp. -3- . . CITY OF SEWARD, ALASKA AIR FORCE LEASE . 13. The construction of new facllites as proposed by Lessee will be completed within the first ten (10) year period of the lease. 14. Should Lessee fail for any reason, other than a national emergency, to operate the recreation camp for a period of two (2) years. the lease rate will increase to full fair market rental value as determined by an M.A.I. certified appraisal of the property. This lease is not subject to Title 10. United States Code. Sec. 2662. IN WITNESS WHEREOF. the parties hereto have hereunto subscribed their names as of the date first above written. CITY OF SEWARD. ALASKA THE UNITED STATES OF AMERICA RONALD A. GARZINI CITY MANAGER BY: ATTEST: APPROVED AS TO FORM: . HUGHES. THORSNESS, GANTZ. POWELL AND BRUNDIN. Attorneys for the City of Seward. Alaska LINDA S. MURPHY. City Clerk FRED B. ARVIDSON. City Attorney (City Seal) STATE OF ALASKA ) ) ss THIRD JUDICIAL DISTRICT ) . THIS IS TO CERTIFY that on the day of . 1985. before me. the undersigned. a Notary Publ ic in and for the State of Alaska, duly commissioned and sworn as such. personally appeared RONALD A. GARZINI. known to me and to me known to be the City Manager of the CITY OF SEWARD. ALASKA. and acknowledged to me that the foregoing instrument was executed by him in his official corporate municipal capacity. and that he executed the same pursuant to the authorization of the City Council of the City of Seward. Alaska; that the same was executed as the free and voluntary act and deed of the municipal corporate seal of said municipality. -4- . . CITY OF SEWARD, ALASKA AIR FORCE LEASE . IN WITNESS WHEREOF, I have hereunto set my hand and affixed my Notarial Seal the day and year hereinabove written. Notary Public in and for Alaska My Commission Expires: STATE OF ALASKA THIRD JlDICIAL DISTRICT ss THIS IS TO CERTIFY that on this day of , 1985, before me, the undersigned, a Notary Public in and for the Sate of Alaska, duly commissioned and sworn as such, personally appeared lawful agent for the UNITED STATES OF AMERICA, known to me and to me known to be the person who executed the foregoing instrument for and on behalf of the United States of America, and who acknowledged that he signed the same freely and voluntarily for the uses and purposes therein contained. . IN WITNESS WHEREOF, I have hereunto set my hand and seal on the day and year first hereinabove written. 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