HomeMy WebLinkAboutRes2004-029
Sponsored by: Shealy
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CITY OF SEWARD, ALASKA
RESOLUTION 2004-29
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
SEWARD, ALASKA, TERMINATING LEASE RE-71-064 AND
AUTHORIZING THE CITY MANAGER TO ENTER INTO A NEW
LEASE AGREEMENT WITH DOT BARDARSON AND LINNE
BARDARSON FOR LOT 5B, BLOCK 1, SEWARD SMALL BOAT
HARBOR SUBDIVISION
WHEREAS, Dot Bardarson and Linne Bardarson (collectively the Lessee)
currently lease Lot 5B, Block 1, Seward Small Boat Harbor Subdivision for the purpose
of operating Bardarson Studio; and
WHEREAS, Lessee requests an extension of the lease term; and
WHEREAS, Lease RE- 71-064 originally dates from 1988 and standard terms,
conditions, insurance, legal and other items have changed; and
WHEREAS, a new Lease has been drafted to address these changes and the
existing lease (which would run to 2018) will be terminated; and
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WHEREAS, the City Council has determined that the continued development of
the harbor area and operation of Bardarson Studio at Lot 5B, Block 1, 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 replace the existing lease with a new lease
covering Lot 5B Block 1 Seward Small Boat Harbor Subdivision for a longer lease term
The City Manager is authorized and directed to enter into a lease agreement with Dot
Bardarson and Linne Bardarson in substantial form as attached hereto; notwithstanding
the foregoing, the City Manager may make such changes or corrections as needed to
finalize the lease transaction but without changing the essential terms and conditions as
set out in the attached lease. The City Manager is also authorized to sign and record any
and all related documents in connection with this transaction such as the plat, the lease
termination, the memorandum of lease, and the like.
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Section 2. The effective date of the new lease shall begin following the effective
date of this resolution and upon the signing of the lease and any associated documents
and recording of the new memorandum of lease. Lease RE-71-064 will be terminated
upon that effective date.
Section 3. The lease rate will be at the existing rate reflecting the year 2000 fair
market appraisal adjustments as applicable under the existing lease. The lease rate under
the new lease will be subject to periodic re-appraisals as provided in the lease, and, for
this reason, the public interest will not be served by requiring an appraisal at this time.
Section 4. This resolution shall take effect 30 days after adoption and posting.
PASSED AND APPROVED by the City Council of the City of Seward, Alaska
this 22nd day of March 2004.
THE CITY OF SEWARD, ALASKA
~~~~
C, David Brossow, Mayor
AYES:
NOES:
ABSENT:
ABSTAIN:
Shafer, Branson, Dunham, Clark, Valdatta, Amberg, Brossow
None
None
None
ATTEST:
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COUNCIL AGENDA STATEMENT
Meeting Date: March 22, 2004
Through: Phil Shealy, City Manager
From: Harbormaster, James B. Beckham
Agenda Item: Terminating lease RE-71-064 and authorizing the City Manager to Enter into
a New Lease Agreement with Dot Bardarson and Linne Bardarson for Lot
5B, Block 1, Seward Small Boat Harbor Subdivision.
BACKGROUND & JUSTIFICATION:
Dot and Linne Bardarson have a lease (RE-71-064) with the City of Seward to operate Bardarson
Studios in the harbor area. The Lessee requests an extension to the term of the Lease. Since this
Lease originally dates from 1988 and standard terms, conditions, insurance, legal and other items have
changed, a new Lease has been drafted. The existing lease (which would run to 2018) will be
terminated.
The lessee is current on all real, personal and sales taxes, utilities, lease payments assessments,
licenses and required insurance. An appraisal is not necessary at this time because the year 2000
reappraised rates from the prior leases will be continued, and the lease rates will be adjusted in 2005
and each five years thereafter under the terms of the lease.
1. Comprehensive Plan X
Economic Development, Small Boat Harbor Development: expand and maximize potential of the
existing harbor.
2. Strategic Plan X_
Growth 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 fully developed…
FISCAL NOTE:
Estimated staff and legal time costs to close out the existing leases and create the new lease is $2,500.
This lease generates $4,000 in annual rent.
Approved by Finance Department
RECOMMENDATION:
Council approve Resolution 2004-29, terminating lease RE-71-064 and authorizing the CityManager
to enter into a new lease agreement with Dot Bardarson and Linne Bardarson for Lot 5B, Block 1,
Seward Small Boat Harbor Subdivision.
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