HomeMy WebLinkAboutRes2021-059' Sponsored by: Bower
Public Hearing: May 24, 2021
CITY OF SEWARD, ALASKA
RESOLUTION 2021-059
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD,
ALASKA, AUTHORIZING THE CITY MANAGER TO ENTER INTO A
LEASE AMENDMENT WITH RICHARD AND LINDA WORABEL TO
REMOVE ARTICLE 14.2 (c) FROM LEASE 97-106 AND TO AMEND
LEASE 97-102 AND 97-104 BY ALSO REMOVING ARTICLE 14.2 (c)
WHEREAS, the City of Seward is the owner of real property described as Lot 9, Block 6,
Seward Small Boat Harbor Subdivision, City of Seward, Alaska and recorded as Plat No. 2000-19
in the Seward Recording District, Third Judicial District, State of Alaska; and
WHEREAS, this parcel was leased to Richard Worabel and Linda Worabel in 1997 for a
term of twenty years; and
WHEREAS, in 2015, this lease was extended for an additional 13 years with two
additional 33 year options, and also added their daughter, Jennifer Worabel (Luiten), to the lease;
and
' WHEREAS, the Wombels recently requested to sublease this parcel, and discovered that
Article 14.2 (c) stated 35% of the sublease will have to be paid to the city; and
WHEREAS, the Worabels met with the harbormaster on the concern that this clause was
not inserted in other leases surrounding their leased property; and
WHEREAS, the city researched other leases within the city and found only two additional
leases 97-102 and 97-104 that have this clause inserted; and
WHEREAS, the Wombels sent a letter to the city requesting to remove Article 14.2 (c)
from their lease; and
WHEREAS, the city wants to be fair and consistent to all lessees by removing Article 14.2
(c) from 97-102 and 97-104; and
WHEREAS, the request is consistent with the City's Comprehensive Plan and the
Strategic Plan.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF SEWARD, ALASKA that:
' Section 1. The Seward City Council hereby determines that the essential terms and
conditions of the proposed lease amendment with Richard Worabel, Linda Wombel, and Jennifer
CITY OF SEWARD, ALASKA
RESOLUTION 2021-059
1
Loiter, and for the real property described as Lot 9, Block 6, Seward Small Boat Harbor
Subdivision, City of Seward, Alaska and recorded as Plat No. 2000-19 in the Seward Recording
District, Third Judicial District, State of Alaska in substantially the form as presented at this
meeting are in the public's best interest.
Section 2. The city manager is hereby authorized to execute a lease amendment for the two
additional leases 97-102 and 97-104 in substantially the form as presented at this meeting.
Section 3. This resolution shall take effect immediately upon adoption.
PASSED AND APPROVED by the City Council of the City of Seward, Alaska, this 24'
day of May, 2021.
THE CITY OF SEWARD, ALASKA
Chfiso Terry, P '
AYES: Casagranda, Baclaan, McClure, Osenga, Seese, DeMo , Terry
NOES: None
ABSENT: None
ABSTAIN: None
ATTEST:
Brenda J. Ball u, MMC
City Clerk
(City
• SEAL
OF AlN.•`' ,
Agenda Statement
Meeting Date: May 24, 2021
To: City Council
Through: Norm Regis, Acting City Manager and
Harbormaster
Agenda Item: The City is requesting to amend Lease 97-102, 97-104 and 97-106 by
removing Article 14.2 (c.) from these leases located at the Seward Boat
Harbor to be consistent and fair with all City of Seward LESSEE's.
BACKGROUND & JUSTIFICATION:
Richard and Linda Worabel were requesting to sublease their Lease 97-106 and found a clause in
Article 14.2:
"Article 14.2
(c.) LESSEE shall pay to CITY an amount equal to THIRTY-FIVE PERCENT (35%a) of
sublease amounts received snider the sublease agreement in excess of existing Fair Market
Rental Value of the Leased Land. The payment of such sublease amounts shall be dcre
beginning with the quarterly rental payment due date inunediately following the date the
CITY approves the sublease, or in accordance with such other payment plan as it mutually
accepted by CITY and LESSEE. "
The Worabel's do not think it is fair and consistent that other leases surrounding them do not have
to pay the 35% sublease amount to the city. They have requested to remove this clause from Article
14.2 (c.).
In 2008, when a new lease (08-002) in this same area was issued to a new LESSEE, this clause
was not inserted into the new Lease.
When the new city lease agreement was rewritten in 2012, this clause was not inserted by the then
city attorney.
The harbormaster has checked the remaining 46 city leases, and found only 97-102, 97-104 and
97-106 has this clause inserted.
Richard Worabel and Linda Worabel have requested to remove Article 14.2 (c.) from their Lease
97-106 located at the Seward Boat Harbor to be fair with the other leases in the harbor area.
The city would like to remove this clause from the remaining two leases 97-102 and 97-104 to be
fair and consistent.
If approved, a fair and consistent process will be viable for all the city leases.
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INTENT:
To remove Article 14.2 (c.) from Lease 97-102, 97 104 and 97-106 between the City of Seward
and LESSEE'S, located in the Seward Small Boat Harbor Subdivision, City of Seward, Alaska and
recorded as Plat No. 2000-19 in the Seward Recording District, Third Judicial District, State of
Alaska.
CONSISTENCY CHECKLIST: I Yes I No I N/A
1.
Comprehensive Plan (docianent source here): Create a thriving port
of Seward through harbor improvements, infrastructure expansion, X
and implementation of manaizement plans (page 23)
Strategic Plan (docianent source here): Attract New Industry:
Develop an aggressive marketing campaign which highlights the X
diverse resources, and quality of life that make Seward a great place
to live and establish a business or industry. (Page 5)
3. 1 Other (list):
FISCAL NOTE:
There is no fiscal impact associated with this resolution. Budgeted lease revenue did not include
the additional 35% since the lessee had never requested a sublease until this year.
Approved by Finance Department:
ATTORNEY REVIEW: Yes —X—No
RECOMAMNDATION:
Approve Resolution 2021-0 -_ authorizing the city manager to remove Article 14.2 (c.) from
leases 97-102, 97-104 and 97 106 in the form of this resolution and lease amendment for the
three leases located within the Seward Boat Harbor Subdivision, City of Seward, Alaska and
recorded as Plat No. 2000-19 in the Seward Recording District, Third Judicial District,
State of Alaska.
W
RICHARD & EINDA WORABEL
P.O. BOX 2072
SEWARD, AK 99664
907-362-0033
April 26, 2021
To: The City of Seward and Counsel Members:
RECEIVED
MAY 0 4 2021
OFFICE OF THE
CITY CLERK
We, Richard and Linda Worabel, would like to petition the City to change a clause in our
lease agreement for our Boardwalk Shop #5, doing business in the harbor for 24 years.
Last year, 2020 season, we were unable to open due to Covid-19. We have decided for
personal reasons, that it is time for someone new to establish a business there and have found
a suitable and eager business to sublease from us.
The problem now is if we sublease to them we will pay almost all profit to the City
because of Article 14.2/C.
We are asking you to please look at this clause and delete it from our lease agreement
so we can move forward,
We were informed that the City has 46 lease properties and this particular clause is in
only 2 other leases.
We respect your decision and would hope to maintain a good working relationship with
the City of Seward for our property investments.
Sincerely,
Richard & Linda Worabel
LEASE AMENDMENT NO. 3
(RE-1997-106)
THE CITY OF SEWARD, ALASKA, a home rule municipal corporation, organized and existing
under the laws of the State of Alaska, hereinafter referred to as "CITY", and, Richard Worabel, Linda
Worabel and Jennifer Luiten, P.O. Box 2072 Seward, Alaska 99664, hereby agree that Article 14.2 of
lease agreement 97-106, dated September 24, 1997, as amended, for Lot 9, Block 6, Seward Boat Harbor
Subdivision, City of Seward, Alaska and recorded as Plat No. 2000-19 in the Seward Recording District,
Third Judicial District, State of Alaska is hereby amended to read as follows:
ARTICLE 14 — SUBLEASE OR ASSIGNMENT
14.2 Sublease Consent. CITY shall review, process and approve sublease consent requests
subject to the following.
(a) LESSEE shall provide a copy of the sublease agreement to CITY, including sublease
amounts
(b) LESSEE shall remain responsible for performance of all its obligations under the LEASE
of the premises from CITY. A sub lessee shall be obligated to perform all terms and conditions
of LEASE between the LESSEE and City with respect to the sublease of the premises, such
terms and conditions shall be incorporated in the sublease agreement by reference.
This Amendment No. 3 is effective as of 24 May, 2021.
In all other respects, the Lease is to remain unchanged and in full force between the undersigned
parties.
LEASE AMENDMENT NO. () Page 1
27
SIN WITNESS WHEREOF, the parties hereto have executed this document, and it is effective
this ?T day of
A% L , 2021.
LESSOR:
CITY OF SEWARD, ALASKA
Norm Regis, Acting City Manager
ATTEST:
Brenda Ballou
City Clerk
(City Seal)
LEASE AMENDNIEN T NO. 0 Page 2
LESSEE:
Richard & Linda Worabel
Jennifer Luiten
By: '
Richard Worabel
By: �
Worabel
By: _�___
Jennifer Luiten
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STATE OF ALASKA }
) ss.
THIRD JUDICIAL DISTRICT
THIS IS TO CERTIFY that on this day of , 2021, before me, the undersigned, a
Notary Public in and for the State of Alaska, personally appeared Norm Regis, known to me and to me
known to be the Acting City Manager for the City of Seward, Alaska, and authorized to execute
documents on its behalf, and is the individual named in and who executed the foregoing document on
behalf of the City of Seward for the uses and purposes therein set forth.
WITNESS my hand and notarial seal the day and year first hereinabove written.
NOTARY PUBLIC IN AND FOR ALASKA
My Commission Expires:
STATE OF ALASKA }
) ss.
THIRD JUDICIAL DISTRICT
THIS IS TO CERTIFY that on this Q 9-1�day of AMU-- , 2021, before me, the undersigned,
a Notary Public in and for the State of Alaska, personally appeared Richard Worabel, known to me and
me known, to be authorized to execute documents on behalf of the corporation, and is the individual
named in and who executed the foregoing document, and he acknowledged to me that he executed the
foregoing document for the uses and purposes therein set forth.
WITNESS my hand and notarial seal the day and year first hereinabove written.
LEASE AMENDMENT NO. () Page
N o-r 0-Y 9 u.6 Li c.. " , to vaL A LA,% r�A
N`Y cc-A`w% SS,o,v
29
STATE OF ALASKA )
) ss.
THIRD JUDICIAL DISTRICT
THIS IS TO CERTIFY that on this a 9 day of 1 L , 2021, before me, the undersigned,
a Notary Public in and for the State of Alaska, personally appeared Linda Worabel, known to me and me
known, to be authorized to execute documents on behalf of the corporation, and is the individual named in
and who executed the foregoing document, and he acknowledged to me that he executed the foregoing
document for the uses and purposes therein set forth.
WITNESS my hand and notarial seal the day and year first hereinabove written.
NOTARY
: PUBLIC
STATE OF ALASKA )
) ss.
THIRD JUDICIAL DISTRICT
tvb iA R-1 VU6LLL I fJ AN (0.(L- �ALA 5t -A
rA-� GD I`�lvl.tS S�yu r✓ kXp 1 ij_k S . t t • 114 �, ,).
THIS IS TO CERTIFY that on this ��day of r-, , 2021, before me, the undersigned,
a Notary Public in and for the State of Alaska, personally appeared Jennifer Luiten, known to me and me
known, to be authorized to execute documents on behalf of the corporation, and is the individual named in
and who executed the foregoing document, and he acknowledged to me that he executed the foregoing
document for the uses and purposes therein set forth.
WITNESS my hand and notarial seal the day and year first hereinabove written.
r
0
s
-5`�sefj�t
LEASE AMENDMENT NO () pa" q
NOTARY PUBLI IN AND FOR ALASKA
My Commission Expires:
30