HomeMy WebLinkAboutRes2016-083 Sponsored by: Hunt
CITY OF SEWARD,ALASKA
RESOLUTION 2016-083
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD,
ALASKA,AUTHORIZING A 200-DAY EXTENSION TO THE LEASE WITH
THE U.S. DEPARTMENT OF ARMY FOR LOT 9A, FORT RAYMOND
SUBDIVISION REPLAT NO. 1 (US ARMY REC CAMP)
WHEREAS,the City of Seward and the US Army Engineer District,Alaska entered into US
Government Lease No.DACA85-5-86-20 on December 17, 1985,which lease has been amended 4
times,most recently in Resolution 2016-060 passed on September 26, 2016; and
WHEREAS, this lease covers the property known as the US Army Recreation Camp in
Seward,Alaska, and the lease expires on December 31, 2016; and
WHEREAS, the parties request a 200-day extension to the lease in order to finalize
negotiations on a new lease which will,among other things,incorporate standard lease language for
City leases which represent substantive changes to the lease language as compared to the lease
initially approved in 1985.
NOW,THEREFORE,BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF SEWARD,ALASKA,that:
Section 1. The City Council hereby finds that it is in the public interest to authorize the
continued lease,in accordance with the attached Supplemental Agreement No. 5 to the lease,of Lot
9A,Fort Raymond Subdivision Replat No. 1 between the City of Seward and the US Army Engineer
District, Alaska, expiring June 30, 2017, in substantial form as attached hereto.
Section 2. The lease provides for payment, in arrears, of$9,000 for the period January 1,
2017 through June 30, 2017, which is the same rate as the previous agreement.
Section 3. This resolution shall take effect 30 days after adoption in accordance with Section
7.05.145 of the Seward City Code.
CITY OF SEWARD, ALASKA
RESOLUTION 2016-083
PASSED AND APPROVED by the City Council of the City of Seward, Alaska, this 12th day of
December, 2016.
THE CITY OF SEWARD ALASKA
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can Bardarson, Mayor
AYES: Casagranda, Keil, Squires, McClure, Altermatt, Slater, Bardarson
NOES: None
ABSENT: None
ABSTAIN: None
ATTEST:
Jihanna K may, CMC
ity Clerk
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Council Agenda Statement
Meeting Date: December 12, 2016 gam_
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To: Seward City Council •
Through: Jim Hunt, City Manager
From: Kristin Erchinger, Finance Director
Agenda Item: Authorizing 200-day extension to US Army Rec Camp Lease
BACKGROUND & JUSTIFICATION:
The Seward City Council approved the initial lease of the US Army Rec Camp to the US Army Engineer
District, Alaska, on December 17, 1985 for a ten-year term with options to renew for subsequent 10-year terms
thereafter, to September 30, 2016. The initial lease was for 12.43 acres more or less, at a lease rate of$10,000
per year for the first ten years, and 25 percent of the fair market rental value of the leased land for subsequent
years. The lease was amended as follows: 1) Supplemental Agreement No. 1 dated August 1, 1987 reduced the
size of the leased parcel to 11.824 acres more or less; 2) Supplemental Agreement No. 2 dated April 11, 1997
eliminated the determination of fair market rental value of 25 percent of fair market rental value, and assessed
annual rent in the amount of $10,300 for the period October 1, 1996 through September 30, 2006; and 3)
Supplemental Agreement No. 3 dated September 8, 2006 exercised the option to extend the lease through
September 30, 2016, at an annual rental amount of $18,000; and 4) Supplemental Agreement No. 4 dated
September 16, 2016 authorizing a short-term lease extension through December 31, 2016.
The administration requests an additional 200 days to negotiate the new lease which will, among other things,
incorporate standard lease language which has been added to City leases since the original Rec Camp lease was
approved thirty years ago (i.e. lease appraisals; annual CPI rental adjustments, etc). The parties are awaiting
approval from Fort Wainwright to negotiate new lease terms. The new lease is expected to address utility
easements, lease appraisals, CPI rental adjustments, performance requirements, etc.
The previous Council action authorized a 90 day extension and this action requests an additional 200 days,
giving the parties until June 2017 to finalize negotiations. The Agreement provides that the lease is subject to
suspension during the first 30 days after passage of the authorizing resolution, if a sufficient referendary petition
is filed in accordance with Seward City Code §7.05.145.
INTENT:
To authorize Supplemental Agreement No. 5, representing an additional 200-day lease extension with the US
Army Engineer District, Alaska, for the US Army Rec Camp located at Lot 9A, Fort Raymond Subdivision
Replat No. 1, Seward, Alaska, to allow the parties to negotiate a new lease following expiration of the thirty-
year former lease.
CONSISTENCY CHECKLIST: Yes No N/A
Comprehensive Plan: p. 6 "Economic Development-Strengthen and diverse the economy of
1• Seward by working with the private sector and other governmental units."; p. 19 "Encourage additional X
military facilities that upgrade Seward as a Morale Welfare and Recreation(MWR)destination."
2. Strategic Plan: X
3. Other: X
FISCAL NOTE: The 200-day additional lease extension provides for rental payments in arrears, in the amount
of$9,000 for the period January 1, 2017 through June 30, 2017, representing the same amount as the existing
lease price,which is already anticipated in the approved budget.
Approved by Finance Department: A ,,,,J,44;6E,a,,
ATTORNEY REVIEW: Yes No X
RECOMMENDATION:
Approve City Council Resolution 2016- authorizing a 200-day extension to the US Army Rec Camp Lease
in the form of Supplemental Agreement No. 5.