HomeMy WebLinkAboutRes2009-039Sponsored by: Oates
CITY OF SEWARD, ALASKA
RESOLU"PION 2009-039
A RESOLUTION OF THE CITY COUNCIL OF THF, CITY OF
SEWARD, ALASKA, AUTHORIZING '1'F,RMINATION OF THE
EXISTING LEASE WITH JACK SCOBY AND SHEILA L. SCOBY
DBA ORCA ENTERPRISES AND AU'T'HORIZING THE CITY
MANAGER TO ENTER INTO A NF.W LEASE WITH DOCKSIDE
VF,NTURES, LLC FOR LOT 10, BLOCK h, SEWARD SMALL.
BOAT HARBOR SUBDIVISION, PLAT 2000-19, SEWARD
RECORDING DISTRICT, THIRD JUDICIAL DISTRICT, STATE
OF ALASKA
WHEREAS, the City is the owner of real property described as Lot 10, Block 6,
Seward Small Boat harbor Subdivision located in the City of Seward, Alaska; and
WHEREAS, the City of Seward entered into a Lease Agreement with Jack and
Sheila Scoby dba Orca Enterprises on April 28, 2000; and
WHF.RF,AS, Orca Enterprises desires to be released from its lease obligations
and is not in default of its lease; and
WHEREAS, Dockside Venlures, LLC desires to enter into a lease with the Cily
in substantially the form presented at this meeting.
NOW, THEREFORE, BF, IT RESOLVED BY TIiF. CITY COUNCIL OF
TIIF. CITY OF SEWARD, ALASKA that:
Section 1. The City Manager is authorized to execute a Termination of Lease
with Jack and Sheila Scoby dba Orca Enterprises and to execute a new lease with
Dockside Venlures each in substantially the forni as presented at this meeting.
Section 2. This resolution shall take effect 30 days from the date of adoption
and the authorization herein shall expire if both the lease termination and new lease are
not executed by all parties by.luly 1, 2009.
PASSF,D AND APPROVED by the City Council of the City of Seward, Alaska,
this 1 1 "' day of May 2009.
CITY OF SEWARD, ALASKA
RESOLUTION 2009-039
THE CITY OF SEWARD, ALASKA
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Clark Corbridge, Mayor
AYES: Valdatta, Dunham, Kellar, Corbridge
NOES: None
ABSENT: Bardarson, Smith, Keil
ABSTAIN: None
ATTEST:
Jean Lewis, CMC -
City Clerk
(City Seal)
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COUNCIL AGENDA STATEMENT
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Meeting Date: May 11, 2009
Through: Yhillip Oates, City Manages,,..~~1~/
From: Kari Anderson, Harbormaster
Agenda Item: Authorizing ternination of the existing lease with Jack and Sheila Scoby dba Orca
Enterprises and authorizing the city manager to enter into a new lease with Dockside
Ventures, LLC for Lot 10, Block 6 Seward Small Boat Harbor Subdivision, Plal 2000-19
BACKGROtiND & JUSTIFICATION
Jack and Sheila Scoby entered into a lease with the City of Seward effective April 2000 for a boardwalk lot
site in the harbor area. This lease encompasses Lot 10, Block 6, Seward Small Boat Harbor Subdivision in the
Seward Recording District. The Scoby's request the City Council's consent to terminate the Lease at the time
a sale of property closes between the Orca Enterprises and Dockside Ventures, LLC. Dockside Ventures in
turn requests a new lease of the same real property. The Lease Termination with the Scoby's (Orca
Enterprises) and form of the new (ease with Dockside Ventures, LLC would be in substantially the fornl
presented at this meeting. If approved by the City Council, the consent to terminate Orca Enterprises' lease
and enter into a new lease would be effective in 30 days. The termination and lease would be signed when the
sale occurs between the parties; and the City Council's consent would expire .Iuly 1, 2009 if the sale has not
closed by that date.
Resolution 2009-U~`I also terminates Resolution 2000-028; the resolution approved by the City Council on
March 28'x, 2000 authorizing the existing lease with Orca Enterprises. This will be formalized with the signed
Agreement to Terminate Lease form.
The proposed lease with Dockside Ventures includes a Personal Guarantee from the four members comprising
Dockside Ventures, LLC which addresses liability of the individual members for the obligations of Dockside
Ventures in the event of a default.
The City will conduct appraisals of its rental property in 2010 and new rental rates are now in effect, based on
fau market rental values. The assignment and release will not decrease the rent paid to the city. The new lease
includes an annual adjustment to rent based on the Anchorage Consumer Price Index.
CONSISTENCY CHECKLIST Yes IVo NIA
l . Comprehensive Plan X
(Economic Development, Small Boat Harbor Development: expand and maximize potential of the existing
harbor)
2. Strategic Plvl X
Growrth 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 fiilly developed)
FISCAL TE
The rent is six thousand five hundred and thirty-four dollars and nih s boa dwalk and w ter sse sme its
comprised of the following annual amounts: Base rent of $4.80Q00, p
through June 30, 2015 of $1,73492. The aiurual base rental payment shall he adjusted on July 1, 2010, and on
the same date eaery five years thereafter, based on the appraised fair market. rental value.
Finance Department: ~~~~rc.ti ~ Z -
ATTORNEY REVIEW
RECOMMENDATION
Council approve Resolution 2009-~'~;`~' authorizing the City manager to enter into a Lease Termination with
Jack and Sheila Scoby dba Orca Enterprises and a new Lease with Dockside Ventures, LLC for Lot 10, Block
6, Seward Small Boat Harbor Subdivision.