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HomeMy WebLinkAboutRes2014-062Sponsored by: Hunt CITY OF SEWARD, ALASKA RESOLUTION 2014-062 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, APPROVING A SHORT TERM LEASE AGREEMENT WITH RAIBOW FIBERGLASS AND BOAT REPAIR, LLC. FOR ADDITIONAL LAND AT THE SEWARD MARINE INDUSTRIAL CENTER WHEREAS, the City and Raibow Fiberglass and Boat Repair, LLC (Raibow) have previously executed lease contracts at the Seward Marine Industrial Center (SMIC); and WHEREAS, Raibow needs to lease additional vacant land at the SMIC; and WHEREAS, the City Manager has negotiated an agreement to lease additional land to Raibow under the provisions of Seward City Code 7.05.410; and WHEREAS, the lease request is consistent with the Comprehensive Plan and the Seward Marine Industrial Center Plan. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA that: Section 1. The Council approves the agreement to lease a parcel of land approximately 18,432 square feet at the Seward Marine Industrial Center in Seward, Alaska to Raibow located in Block 4 northerly of Lot IA and southerly of Mustang Avenue. The term of the agreement shall not exceed 120 days (October 31, 2014). Section 2. This resolution shall take effect immediately upon adoption. PASSED AND APPROVED by the City Council of the City of Seward, Alaska, this 281" day of July, 2014. THE CITY OF SEWARD, ALASKA �i 1-2 - can Bardarson, Mayor AYES: Keil, Casagranda, Terry, Squires, Butts, Darling, Bardarson NOES: None ABSENT: None ABSTAIN: None ATTEST: ���.........,� F �J�,.•GORPO•o• ; jJonnaKinney, MCClerk ��• • SEAL (City Seal) e•• , �. �••HF 1 doh ° �T ••• iaY.•�•c t ro Council Agenda Statement Meeting Date: July 28, 2014 Through: City Manager, Jim Hunt From: Harbormaster, Mack Funk Agenda Item: Short Term Lease Raibow Fiberglass and Boat Repair, LLC 18,432 square feet of Additional Land at SMIC BACKGROUND & USTIFICATION• Raibow Fiberglass and Boat Repair, LLC leased approximately 13,500 square feet effective August 1, 2013 for a twenty year term. As the business continues to grow, they need an additional piece of land along Nash Road. On July 2 the City's standard short term lease was signed by Dave Phillips of Raibow adding 18,432 square feet of land at the 2010 appraised cost per square foot. The City Council has previously determined that land at SMIC is available for lease. Chapter 7.05.410 of the Seward City Code authorizes the City manager to negotiate short-term leases: Nothing in this chapter shall prevent the city manager from negotiating short-term leases of city property subject to council approval at the next regularly scheduled city council meeting. Such leases shall not be subject to the public hearing process, shall not exceed 120 days in length, and shall contain no provisions for optional terms. The resolution approving such a lease may be signed and adopted immediately provided the lease form contains a provision stating that the lease is subject to suspension during the first 30 days after passage of the resolution if a sufficient referendary petition is filed in accordance with section 4.8 of the City Charter. INTENT: Raibow's stated intent is to purchase a survey and request a re -plat in order to be able to enter into a long term lease on this parcel. Since this process will likely take longer than the allowable 120 days, Raibow will likely be requesting another short term lease until the re -platting process is complete. Also, the re -platting process will require review and approval by the City's Planning & Zoning Commission. The purpose of this Resolution is to approve the previously negotiated month to month agreement for up to 120 days to lease additional land to Raibow Fiberglass and Boat Repair, LLC at SMIC. CONSISTENCY CHECKLIST: Yes No N/A 1 Comprehensive Plan (document source here): This lease meets the plan goals to develop SMIC as a major industrial area of the community. X Strategic Plan (document source here): Attract New Industry: 2 Develop an aggressive marketing campaign which highlights the diverse resources, and quality of life that make Seward a great place to live and X establish a business or industry. (Pane 5) Other (list): FISCAL NOTE: The rent is $405.31 per month plus tax. The lease rate is based on the 2010 appraisal of an adjacent parcel. It does not include any annual CPI adjustments since 2010. Approved by Finance Department: c ATTORNEY REVIEW: Yes No X RECOMMENDATION: Approve Resolution 2014- D01- authorizing with Raibow Fiberglass and Boat Repair, LLC. the City Manager to approve a short term lease Seward Marine Industrial Center Short -Term Lease This LEASE (hereinafter "LEASE"), for good and valuable consideration, and pursuant to Seward City Code § 7.05.410 is entered into between the City of Seward, Alaska, a municipal corporation, organized and existing under the laws of the State of Alaska, (the "City") whose address is PO Box 167, Seward, Alaska 99664 and Raibow Fiberglass and Boat Repair, LLC, an Alaska limited liability company authorized to do business in Alaska, and whose address is P.O. Box 2891, Seward, AK 99664 (the "LESSEE"). 1. Purpose of Lease. This Lease grants LESSEE use of the real property described below for the purpose of repairing boats in accordance with all laws, regulations, ordinances and City policies. 2. Description of Property. A parcel of land at the Seward Marine Industrial Center in Seward, Alaska. The parcel is located in Block 4 northerly of Lot IA and southerly of Mustang Avenue. The parcel size is approximately 115 feet by 160.28 feet (18, 432 square feet or 0.42 acre) as shown on the attached Exhibit B. Other than access to and from this designated area, use of any area outside of this designated area is not permitted including but not limited to parking, storage or disposal. 3. Term. The term of this Lease shall commence July 1, 2014 and continue until the earlier of 120 days or the effectiveness of a long term lease approved by the Seward City Council. 4. Short Term Lease subject to Seward Cily Code § 7.05.410. LESSEE understands and agrees that this is a short term lease pursuant to Seward City Code § 7.05.410 and subject to approval by Seward City Council ("Council") and referendary petition as follows: (a.) Pursuant to Seward City Code § 7.05.410, this Lease is subject to Council approval. If a resolution authorizing this Lease is presented to Council and Council does not approve the resolution, this Lease shall automatically terminate. (b.) Pursuant to Seward City Code § 7.05.410, upon Council approval of the resolution approving this Lease, this Lease is subject to suspension during the first thirty days after passage of the resolution if a sufficient referendary petition is filed in accordance with § 4.8 of the Seward City Charter. (c.) Upon termination or suspension of the Lease pursuant to this Section 4, LESSEE agrees to remove any connexes, vehicles, materials, equipment and other property from the premises within five (5) calendar days of such termination or suspension, and restore the premises to the same or better condition existing at the time prior to entering upon the premises. 5. Rent. Upon execution of this Lease, LESSEE shall pay the City $405.31 per month for the rental of the premises for the Term of this Lease. LESSEE agrees that the rental amount is an interim calculation and is not necessarily representative of any rental amount that will be imposed under any long term lease for the property. 6. Lessee's Property. Any vehicle, equipment or material placed upon the above- described premises shall be and remain the property of LESSEE and may be removed therefrom by LESSEE at any time provided that LESSEE shall not damage or impair the City's property while installing or removing LESSEE's property. 7. Termination. In the event of LESSEE's default in the performance or observance of any of the Lease terms, conditions, covenants and stipulations thereto, and such default continues 5 days after written notice of default, City may cancel this Lease, or take any legal action for damages or recovery of the property. This Lease may be terminated for convenience by either party upon 15 days written notice to the other party. Upon termination or cancelation of this Lease, LESSEE covenants and agrees to remove any vehicles and all other equipment and materials from the premises within five (5) days and restore the premises to the same or better condition existing at the time prior to entering upon the premises. Removal will not be required if this Lease is superseded by a duly authorized long term lease for the premises prior to the end of the term set forth in paragraph 3 above. 8. Liability and Indemnity. Except and to the extent solely caused by City's own negligence or intentional misconduct, City shall not be liable for damages to property or injuries to persons, including death, arising from the construction, operation, maintenance, removal or activity of LESSEE, its principals, officers, employers, associates, agents, representatives, successors, heirs or assigns, licensees or invitees, and LESSEE does hereby agree to release, protect, defend, save harmless and indemnify City, its officials, employees and authorized representatives against any loss, cost, damage, expense, judgment or liability of any kind whatsoever, from or by reason or on account or as a result of the activity of LESSEE. 9. Waiver. LESSEE acknowledges that the premises are not secured by the City, the area is open to other users and the public, and LESSEE accepts all risk of loss or damage whatsoever. LESSEE waives all claims against the City for any and all loss or damage that may occur. City makes no representations or warranties as to the fitness of any particular part or the whole of City's public facilities for the uses intended by LESSEE and LESSEE has inspected the site and has satisfied itself that the designated premises are sufficient for the intended uses by LESSEE. City makes no representations or warranties of any nature with respect to the commercial practicability or accuracy of any information provided by City. 10. Liability Insurance. LESSEE, during the term of this Lease, shall carry, at its expense, public liability insurance covering the licensed property in an amount of not less than $500,000 for injury or death to any one person, $1,000,000 for injury and/or death to any number of persons in any one accident, $1,000,000 for property damage or destruction and the statutory amount required for Worker's Compensation. The minimum requirements in this section may be increased from time to time by City in accordance with customs and usage for comparable property in the Seward area. 11. Additional Named Insured; Waiver of Subrogation. All insurance policies required of LESSEE shall name the City as additional insured. All policies shall contain an agreement by the insurers that such policies shall not be canceled or amended without at least thirty (30) days' prior written notice to City, and certificates or copies of all such insurance policies shall be furnished to City promptly after the issuance thereof. 12. Repairs and Maintenance. LESSEE shall pay the cost of repair of any damage to the above -described premises caused by LESSEE, its invitees or guests occurring during the term of this Lease. 13. No Assignment or Sub -leasing. LESSEE is not allowed to assign this Lease or sub -lease the premises. 14. No Hazardous Materials. The use, keeping, storage, or disposal of hazardous materials on the premises is prohibited. 15. Lease Agreement Only: LESSEE agrees and understands that this agreement is a temporary lease agreement only and that by accepting this contract the City is not accepting Lessee's property for storage; the relationship between the parties is simply that of a landlord and tenant. Unless the property is formally impounded by the City, the vehicles, equipment and materials on the premises, shall at all times remain in the exclusive possession and control of the LESSEE and the City is not acting, and shall not be held liable in any manner, as a warehouseman or a bailee. 16. Records. The City shall have the right to review and inspect LESSEE's records, licenses, and permits during all business hours. 17. No Utilities. LESSEE understands that there are no utilities, water and sewer available on the premises. LESSEE agrees that utilities, water and sewer are not necessary for the LESSEE's use of the premises. IN WITNESS WHEREOF, the parties hereto have executed this document by and through their duly authorized officials. City Of Seward, -Saffies-flurit, City Manager 7 ATTEST: Johanna Kinney, City Clerk (City Seal) State of Alaska Raibow Fiber I ,g ass and Boat Repair LLC I By: Dav Pilliqs, President Date: VLy o v o a n .. H i � O^ ZO o m o o C `ttltpullRrp _ �' 3` _ -.:y O w ao;•F . t i�.,= -m o w 0 Ci F2 goo"' v 1 of m c � a '+ _' a� x N �, O `o° ° -} N N m � �a•.2 d� H � O � U Y p -� W G G <L „� ty S W a 10Cj�NW N U�w� .. 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