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HomeMy WebLinkAboutRes1984-052 . . . . . CITY OF SEWARD, ALASKA RESOLUTION NO. 84-52 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, AUTHORIZING A SHORT TERM LEASE OF A PORTION OF LOT 16, SEWARD INDUSTRIAL PARK TO PLACID OIL WHEREAS, Lot 16, Seward Industrial Park is vacant, and avail- able for lease; and WHEREAS, Placid Oil Company has need for an area of approxi- mately one half acre for pipe storage for an undetermined period of time not to exceed 120 days; and WHEREAS, Section 2-95 of the Seward City Code provides that the City Manager may negotiate short term leases subject to Council approval; NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, that: Section 1. by the City Manager, is approved. The lease with Placid Oil Company, as negotiated and incorporated herein by reference as Exhibit A, Section 2. This resolution shall take effect 30 days follow- ing its adoption. PASSED AND APPROVED BY THE CITY COUNCIL OF THE CITY OF SEWARD, ALASY-A, this 11 day of June , 19 84 THE CITY OF SEWARD, ALASKA AYES: NOES: ABSENT: ABSTAIN: Gillespie, Hilton, Swartz, Williams and Wilson None Cripps and Meehan None -1- . . . - CITY OF SEWARD, ALASKA RESOLUTION NO. 84-52 ATTEST: (City -2- . APPROVED AS TO FORM: HUGHES, THORSNESS, GANTZ, POWELL AND BRUNDIN, Attorneys for the City of Seward, Alaska 7d;?/~ Fred B. Arvidson, City Attorney . . . LEASE AGREEMENT . This Lease is entered into on 19_, between the City of Seward, the Lessor (referred to as "the City"), and Placid Oil Company, the Lessee. The Lessee has examined the description of the real property and has inspected it, or has voluntarily declined to do so, and is satisfied with the description and condition of it. The Lessee is aware of the provisions of applicable laws, regulations, and ordinances, and fully understands its duties and obligations under this Lease and the rights and remedies of the City. The City and the Lessee, in accordance with the provisions of this Lease, agree as follows: . 1. The Leased Land. The City agrees to lease to the Lessee, and the Lessee agrees to lease the following real property (referred to as "the Leased Land") which is located in the State of Alaska: That portion of Lot 16, Seward Industrial Park filed as Plat No. 90, Serial No. 73-349, Seward Recording District, Alaska, being a portion of U.S. Survey No. 241, and more particularly described as follows: A 110 foot by 220 foot (24,200 square feet) parcel located approximately midway along the East side of Lot 16. Seward Industrial Park. further outlined on the attached Exhibit A. 2. Term. Commencing , this Lease shall run month to month, not to exceed four (4) months unless sooner ter- minated by either party provided such notice is in writing at least fifteen (15) days in advance. . 3. Rent. The Lessee shall pay the City the first month's rent in advance without demand, at the rate of Five Hundred Sixty-five Dollars -1- . . . ($565) per month. Succeeding month's rent is payable the first day each month. The rent is payable at the City's address stated in paragraph 22 (A) of this Lease. 4. Use of Land. (A) The Lessee must use and occupy the Leased Land in compli- ance with all applicable laws, regulations, ordinances and orders promulgated, or which may be promulgated, by a public authority, includ- ing those of a building or zoning authority and those relating to pollution and sanitation control. The Lessee shall properly locate himself and his improvements on the Leased Land, and may not commit waste, whether ameliorated or otherwise. In addition to any laws, regulations, ordinances and orders, the Lessee shall maintain the Leased Land and all improvements thereon in a reasonably neat and clean condi- tion, and shall take all prudent precautions to prevent or suppress grass, brush, or forest fires, and to prevent erosion or destruction of the Leased Land. The Lessee may not use the Leased Land for any other purpose other than storage and handling of oil related pipe supplies without prior written approval of the City. (B) Lessee's Right to Build - General Conditions. Lessee shall not at any time during the Lease term erect, maintain, alter, remodel, reconstruct, rebuild or replace building(s) and other improve- ment(s) on the Leased Land. (1) The Leased Land shall at all times be kept free of all mechanic's and materialmen's liens. (C) Lessee's Ownership of Trade Fixtures, Machinery and Equipment. All trade fixtures, machinery and equipment of whatsoever . . -2- . e . nature at any time constructed, placed or maintained upon any part of the Leased Land shall be and remain the property of Lessee or its tenants as their interests may appear and may be removed or replaced at any time during the lease term, provided Lessee or its tenants repair any and all damage to the building or improvements resulting from such removal or replacement, and such removal or replacement does not sub- stantially and adversely affect the normal functioning of the contem- plated building. 5. Reservation of Public Access. The City and the Lessee agree that the Leased Land has a unique location between the Alaska Railroad Dock and the Seward Industrial Park. The Lessee agrees that it will not destroy or damage existing vegetation, water or wildlife habitat beyond that damage necessitated by the Lessee's operations. The Lessee agrees to permit public access through the Leased Land as may be necessary. 6. Encumbrance of the Land. During the term of this Lease, the Lessee may not encumber the City's title to the Leased Land, nor enter into any lease, easement, or other obligation of the City's title without the prior written approval of the City. Any such act, without the prior written approval of the City, is void as against the City's title to the Leased Land. 7. Assignment of the Land. The Lessee may not assign this lease or sublet the Leased Land, and no assignment 'or subletting is effective without the prior written approval of the City. No assignment or subletting will approved until the assignee agrees to be subject to the . provisions of this Lease in the same manner as the original Lessee. An . assignment or subletting by the Lessee does not end the Lessee's obligation to pay the rent required for the full of this Lease. term -3- . e . 8. Denial of Warranty Regarding Conditions. The City makes no warranty, express or implied, of environmental values of the Leased Land, including, without limitation, the soil conditions, water drain- age, or natural or artificial hazards which mayor may not exist, the appropriateness of the land classification, or the profitability or fitness of the land for any use. 9. Agreement to Terms of Lease Documents. The City and the Lessee agree that each of the provisions of this Lease, and any valid amendments or attachmeRts to it, are merged and incorporated into this Lease and are binding upon themselves and upon their respective succes- sors. The City and the Lessee further agree that this Lease is condi- tioned upon satisfactory performance by the City and the Lessee of all conditions contained in it. 10. Payment of Taxes and Assessments. The Lessee must pay all taxes and assessments accruing against the Leased Land during the term of the Lease. 11. Condemnation of Leasehold or Improvements. If all or part of the Leased Land is taken by any authorized body or person vested with the power of eminent domain, by negotiation, court action, or otherwise, the following provisions control: (A) Taking of the Entire Parcel. If all of the Leased Land is taken by condemnation, the terms of the Lease and all the rights of the Lessee immediately terminate. The City is entitled to all of the proceeds attributable to the fair market value of the improvements placed on the condemned parcel by the Lessee. (B) Taking of Substantial Part of Parcel. If the taking is of a substantial part of the Leased Land, the following rules apply: . . -4- . . . (1) If the taking by condemnation reduces the ground area of the Leased Land by at least 30 percent or materially affects the use of the land by the Lessee, the Lessee has the right to elect to terminate or not to terminate the Lease by written notice to the City not later than 15 days after the date of taking. (2) If the Lessee elects to terminate, the provisions in (A) of this paragraph govern the condemned portion of the Leased Land and the terms of the Lease govern disposal of the remainder of any improvements made by the Lessee. (3) If the Lessee elects not to terminate, the Lease continues and the City is entitled to the full condemnation proceeds except the portion attributable to the fair market value of the improve- ments placed on the condemned portion of the Leased Land by the Lessee. (C) Taking of Insubstantial Part of Parcel. If the taking by condemnation reduces the ground area of the Leased Land by less than 30 percent and the City determines that the taking is of such an insubstan- tial portion that the Lessee's use of the land is not materially affected, the provisions of (B)(3) of this paragraph will govern. 12. 'Valid Existing Rights. This Lease is entered into and made subject to all valid existing rights, including easements, right-of-way, reservations. or other interests in the Leased Land, in existence on the date of the Lease is entered into. 13. Inspection. The City must by accorded reasonable access to the Leased Land for the purposes of inspection to assure the faithful performance of the provisions of the Lease and other lawful require- ments. . . -5- . .. . . . 14. Minerals. Nothing in this Lease shall authorize the Lessee to exercise any rights in regard' to oil, oil rights, minerals, mineral rights, natural gas rights, and/or other hydrocarbons that may be in or upon the Leased Land. 15. . Surface Reservations. Unless otherwise stated in this Lease, the Lessee may not sell or remove for use elsewhere any of the surface resources of the Leased Land, such as stone, gravel, sand, peat, topsoil, timber, or any other material valuable for building or commer- cial purposes. 16. Acquisition of Rights or Interests. Any right or interest acquired during the term of this Lease and accruing to the benefit of the Lease Land remains appurtenant to the land during that term, and may not be serve red or transferred from the land without the prior written consent of the City. If this Lease is terminated or is forfeited, any such right or interest reverts to the City. 17. Waiver or Forbearance. The City's receipt of rent or any other sum of money from the Lessee does not waive any provisions of this Lease. The failure of the City to enforce any provision of this Lease does not affect its right to enforce any other provision in the event of a subsequent breach or default by the Lessee. Any waiver of enforcement by the City is valid only if it is in writing. The City's receipt of rent or any other sum of money does not reinstate, continue, or extend this Lease after any notice of termination which may have been given by the City. 18. Breach and Remedies. (A) Time is of the essence in this Lease. If the Lessee breaches any provisions of this Lease or any valid amendments or . . -6- . . . attachment to it, and the breach is not remedied within 15 days after written notice of it has been served on the Lessee by the City, the Lessee is subject to any legal action that the City considers appropri- ate, including the termination of this Lease. However, improvements now on the Leased Land, or temporary improvements which may be placed on it during the term of the Lease, may be removed from it during any time in which this Lease is in breach, subject to the limitations contained in paragraph 19. The City is not liable for any expenditures made by the Lessee in the event of the termination of this Lease. (B) If this Lease is terminated by summary proceedings or in any other manner, the City, after written notice to the Lessee, may immediately, or any any time afterwards, enter or re-enter, possession, repossession, or dispossession by the City, whether taken by summary proceedings or otherwise, does not release or discharge the Lessee, either in whole or in part, from any monetary liability to the City under this Lease. 19. Disposition of Improvements and Chattels and Termination. (A) The Lessee must, within 15 days after the termination of the Lease by the City or by operation of law, remove all improvements and chattels coated on the Leased Land if the removal will not damage the land or seriously impair its re-disposal, and if removal is au- thorized in writing by the City. After removal, the Lessee can demon- strate undue hardship. (B) If any improvements or chattels of an appraised value of more than $10,000, as determined by the City, are not removed from the Leased Land within the time allowed, they may, upon 30 days' written notice to the Lessee, be sold at public auction under the direction of . . -7- . e . the City. The proceeds of sale will inu~e to the Lessee who placed the improvements or chattels on the land, after deduction for the benefit of the City of all money due and owing under this Lease and all expenses incurred in administering the termination and conduction the sale. If there are no other bidders at the sale, the City may bid on the improve- ments or chattels, and the City will acquire all rights, both legal and equitable, which any other purchaser could acquire through a sale and purchase. . (C) Any chattel or improvements which have a total appraised value of $10,000 or less, as determined by the City, and which are authorized for removal by the City but are not removed within the time allowed, become the absolute property of the City upon the expiration of the time allowed for removal. 20. Indemnity of City. The Lessee shall indemnify and hold the City harmless from all claims and demands for loss or damage, including property damage, personal injury, wrongful death, and wage or employment claims, arising out of or in connection with the use or occupancy of the Leased Land by the Lessee or his successors, or at his invitation. The Lessee will keep all goods, materials, furniture, fixtures, equipment, machinery, and other property on the Leased Land at his sole risk, and will hold the City harmless from any claim of loss or damage to them by any cause. 2l. Surrender of Land. Upon the expiration or termination of this Lessee shall immediately leave the Leased Land. 22. Notices. . -8- . . (A) All notices and other writings required or permitted . under this Lease must be made by certified mail, postage prepaid, to the parties at the following addresses: To the City: City Clerk City of Seward PO Box 167 Seward, Alaska 99664 To the Lessee: Placid Oil Company 550 W. 7th Avenue Suite 1100 Anchorage, Alaska 99501 (B) Any notice or demand which must be given or made by the City or the Lessee in writing is complete when sent by the United States certified mail to the address shown in the Lease, or to any other address that the parties may designate in writing. A copy of any notice must be forwarded by the City to the holder of any security interest in . the Leased Land who has properly recorded its interest in the Lease with the City. 23. Intergration and Modification. This Lease, including all documents which by reference are incorporated in it or made a part of it~ contains the entire agreement between the parties. This Lease may not be modified or amended except by a document signed by both parties to this lease. Any amendment or modification which is not in writing and signed by bgth parties is of no legal effect. 24. Severability of Clauses of Lease. If a provision of this Lease is adjudged. to be invalid~ that judgement does not affect the validity of any other provision of this Lease, nor does it constitute any cause of action in favor of either party as against the other. . 25. "Successor" Defined. In this Lease~ "successor" means any heirs~ assigns and sublessees and other successors-in-interest. -9- . . 26. Construction. Words in the singular number include the plural . number; words in the plural number include the singular number. 27. Headings. The headings of the numbered paragraphs in this Lease shall not be considered in construing any provision in this Lease. BY SIGNING THIS LEASE, the City of Seward, as Lessor. and Placid Oil Company, as Lessee, agree to be bound by its provisions as set out above. LESSOR: LESSEE: THE CITY OF SEWARD, ALASKA PLACID OIL COMPANY . ATTEST: Linda S. Murphy, City Clerk (City Seal) STATE OF ALASKA ) ) ss. THIRD JUDICIAL DISTRICT ) This is to certify that on the day of . 19 . before me the undersigned Notary PUblic in and for the State of Alaska, appeared , known to me to be the of the City of Seward, Alaska, and acknowledge that he did voluntarily executed this Lease on behalf of the City of Seward as Lessor. . Notary Public in and for Alaska My Commission Expires: -lO- . . STATE OF ALASKA ) ) ss. THIRD JUDICIAL DISTRICT ) This is to certify , 19_, in and for the State of Alaska, known by me to be and acknowledged that he did voluntarily Placid Oil Company as Lessee. that on before me, appeared . the day of the undersigned Notary Public of Placid Oil Company execute this Lease on behalf of Notary Public in and for Alaska My Commission Expires: . . -11- - \4 feet . \ I', V \ ~ \ cP \ ~ __-1- ~ <I). <I) .... o N N .- - S E'II ARO . HARBOR E~\\IB1i f1. ~"'. \6 A.l.$-. \14 'If.C,c. \ u.SS \49 PLf1.CID OIL LEf1.SE ::\:; 'l4,'l()() So,uare feet cO III ... ... . I \ \ \ ... \ I ... I COol I '" \ 1>I<:l' .. 'o~ 04 'N~ 0% 6 - o<:l' %~ ,- , . I , . , . \ \ . I . t , . . . . t . t. . . .' . .. 1 I . . . t I , . . . . . \ " ~. #' '. "..~ ~ -. z095-\ EAS1' . ~- .1W . \ \ \ \ ~.... ,.: '..,- ,~ .. '. '-.' '< ':-"'"-". ~;1;:i':'~__ .- ~. .~'i-~ .' \ \100 \:: . 0 s-:== SCALE .\ \ -