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HomeMy WebLinkAboutRes2014-073 Sponsored by: Hunt CITY OF SEWARD, ALASKA RESOLUTION 2014-073 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, AUTHORIZING THE CITY MANAGER TO ENTER INTO A LEASE AMENDMENT WITH HARMON PROPERTIES LLC FOR LOT 3, BLOCK 3 FOURTH OF JULY CREEK SUBDIVISION, SEWARD MARINE INDUSTRIAL CENTER, KENAI PENINSULA BOROUGH, PLAT NO. 97-27 SEWARD RECORDING DISTRICT, THIRD JUDICIAL DISTRICT, STATE OF ALASKA WHEREAS, the City is owner of real property described as Lot 3, Block 3 Fourth of July Creek Subdivision; and WHEREAS, this parcel was leased to Harmon Properties LLC in 2013 for a term of twenty years; and WHEREAS, the parties to the lease want to extend the term for an additional seventy- nine years; 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 has determined that the essential terms and conditions of the proposed lease amendment with Harmon Properties LLC for the real property described as Lot 3, Block 3, Fourth of July Creek Subdivision located in the City of Seward, Alaska are in the public's interest. Section 2. The City Manager is authorized to execute the lease amendment with Harmon Properties LLC in substantially the form as presented at this meeting. Section 3. This resolution shall take effect 30 days from the date and posting of adoption. PASSED AND APPROVED by the City Council of the City of Seward, Alaska, this 8th day of September, 2014. L. CITY OF SEWARD, ALASKA RESOLUTION 2014-073 mai THE CITY OF SEWARD, ALASKA .44t) /�ai�'r✓ can Bardarson, Mayor AYES: Keil, Casagranda, Terry, Butts, Darling, Bardarson NOES: None ABSENT: Squires ABSTAIN: None ATTEST: / J I hanna Kinn-y, CMC C ty Clerk (City Seal) • - • • • • e g{ SEA [. Council Agenda Statement e, of sF� Meeting Date: September 8, 2014 '� :4�a r q, Through: City Manager Jim Hunt 4tnsKP From: Harbormaster Mack Funk Agenda Item: Harmon Properties LLC Seventy-Nine Year Term Extension for Lease 13-108 at Lot 3, Block 3 Seward Marine Industrial Center BACKGROUND & JUSTIFICATION: Harmon Properties LLC, owned by Carol and Lawrence Harmon, has requested to extend their lease by 79 years to make a total term of ninety-nine years. All else being equal, a longer lease will afford greater security for financing purposes. The current Municipal Land Use Plan adopted by the City Council designates SMIC lands for lease. The parcel is located between Jellison and Mustang Avenues and between the Raibow and Alaska Logistics lease parcels. INTENT: To approve a lease amendment between the City of Seward and Harmon Properties LLC on Lot 3, Block 3 Fourth of July Creek Subdivision at the Seward Marine Industrial Center for boat storage and repair operations. CONSISTENCY CHECKLIST: Yes No N/A 1 Comprehensive Plan (document source here): This lease meets the plan X goals to develop SMIC as a major industrial area of the community. Strategic Plan (document source here): Attract New Industry: 2 Develop an aggressive marketing campaign which highlights the diverse X resources, and quality of life that make Seward a great place to live and establish a business or industry. (Page 5) 3. Other (list): FISCAL NOTE: The current annual lease amount is $10,310.00 plus tax, based on 8% of the fair market value ($125,000) from 2010, plus CPI increase effective July 1, 2014. The leased property will be re- appraised next year in early 2015. Approved by Finance Department: .J(,u ;,, ATTORNEY REVIEW: Yes X No RECOMMENDATION: Approve Resolution 2014- ort b authorizing the City Manager to enter into a Lease Amendment with Harmon Properties LLC for Lot 3, Block 3 Fourth of July Creek Subdivision in the Seward Marine Industrial Center, Plat No. 97-27 in the Seward Recording District, Third Judicial District, State of Alaska. •