HomeMy WebLinkAboutRes2008-119Sponsored by: Oates
CITY OF SEWARD, ALASKA
RESOLUTION 2008-119
A RESOLUTION OF THE SEWARD CITY COUNCIL AUTHORIZING
THE CITY MANAGER TO ENTER INTO AN EXTENSION OF THE
LEASE WITH WOMEN'S DIVISION OF THE BOARD OF GLOBAL
MINISTRIES OF THE UNITED METHODIST CHURCH FOR LOTS 19,
20 AND 2l OF THE MARATHON ADDITION TO THE CITY OF
SEWARD
WHEREAS, effective Apri19, 2003, the City of Seward entered into a Lease Agreement
with the Women's Division of the Board of Global Ministries of the United Methodist Church
("Women's Division") for the land formerly occupied by Wesley Rehabilitation and Care
Center, Inc.; and
WHEREAS, the term of the Lease Agreement was three years, and gave the City the
option to extend the term for two additional one-year periods; and
WHEREAS, the City exercised its option to extend the Lease Agrecment to April 9,
„~, 2008; and
WHEREAS, the City entered into an agreement with Providence Alaska to operate co-
located hospital and long term care facilities, and Providence is currently utilizing the land and
building leased by the City from the Women's Division for the long-term care services; and
WHEREAS, the City is constructing a new long-term care facility in Seward that is
expected to be available for occupancy in January 2010; and
WHEREAS, although the City recognizes that the current facility is beyond its useful
life, and had not been properly maintained by the owner, the City Council has determined that
allowing the residents to remain where they are until a new facility becomes available 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 retroactively extend the existing lease. The City Manager is
authorized and directed to enter into an Agreement to Extend Lease with the Women's Division
in substantially the form as presented at this meeting. The City Manager is also authorized to
CITY OF SEWARD, ALASKA
RESOLUTION NO. 2008-11.9
execute and record any and all related documents in connection with this transaction including
the Agreement to Extend Lease and a memorandum of lease.
Section 2. The lease rental rate is essentially unchanged, and is slightly less, than the
rental rate previously paid by the City. For this reason, as well as the reasons stated in the above
recitals, the public interest will not be served by requiring an appraisal at this time.
Section 3. This resolution shall take effect 30 days after adoption and posting.
PASSED AND APPROVED by the City Council of Seward, Alaska this 24`h day of
November, 2008.
THE CITY OF SEWARD, ALASKA
Clark Corbridge, Mayor
AYES: Valdatta, Dunham, Bardarson, Smith, Kellar, Keil, Corbridge
NOES: None
ABSENT: None
ABSTAIN: None
ATTEST:
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JeatS Lewis, CCMC ~ )
Cit Clerk --
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Council Agenda Statement
Meeting Date: November 24, 2008
From: Kristin Erchinger, Finance Director
Through: Phillip Oates, City Manage
Agenda Item: Lease Extension with Women's Division of the Board
of Global Ministries of the United Methodist Church for
the long-term care facility
BACKGROUND & JUSTIFICATION:
On April 9, 2003, the City entered into a Lease Agreement with the Women's Division of the Board of Global
Ministries of the United Methodist Church for Lots 19, 20 and 21 of the Marathon Addition to the City of Seward.
The term of the Lease Agreement was three years, with the option to extend for two one-year periods. The City
exercised its option to extend, and the extended term expired in April 2008. The City continues to occupy the land
and building, through its agreement with Providence to operate the long-term care facility.
The City is in the process of constructing a new long-term care facility that is expected to be available for occupancy
in January 2010. In the meantime, the long-tenn care facility residents need a place to live in Seward until their new
quarters are ready. Even though the building leased from the Women's Division is beyond its useful life, it is
recommended that the residents not be moved until they can be moved into their permanent home. To allow the long-
termcare services to continue on the existing site, it is necessary to extend the Lease Agreement, retroactively to April
2008.
Rental payments will be $1,500 per month. The City agrees to paint certain trim, and the Women's Division will
paint the galvanized pipes leading from the above-ground storage tank.
The Agreement to Extend Lease presented for City Council approval would extend the lease term to December 31,
2009 and give the City the option to extend for two six-month periods. The options to extend the term could be
exercised if the new long-term care facility is not ready for occupancy.
CONSISTENCY CHF,CKLIST:
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.
FISCAL NOTE:
Approved by Finance Department~~~.ii~~ ~'~it(.L°cG~~~
ATTORNEY REVIEW: yes
RECOMMENDATION:
The City Council approve Resolution No. 2008- ~ ~ authorizing the City Manager to enter into an Agreement
to Extend Lease, in substantially the form presented at the meeting, with the Women's Division for an rental
amount of $1,500.00 per month for Lots 19, 20, and 21 of the Marathon Addition to the City of Seward.
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