HomeMy WebLinkAboutRes2022-095 KFT Lease Extension 5 years Sponsored by: Bower
Public Hearing: September 12, 2022
CITY OF SEWARD, ALASKA
RESOLUTION 2022-095
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD,
ALASKA, AUTHORIZING THE CITY MANAGER TO ENTER INTO A
LEASE EXTENSION AMENDMENT WITH KENAI FJORDS TOURS TO
EXTEND THE LEASE TERM BY FIVE YEARS
WHEREAS,the City is owner of real property described as Lot 5,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 Kenai Fjords Tours in 1997 for a term of twenty
years; and
WHEREAS, in 2017 Kenai Fjords Tours utilized one (1) of two (2) five-year
extensions stated in their Lease 97-102 2.4 options to extend, approved by council in
Resolution 2017-014; and
WHEREAS, Kenai Fjords Tours would like to utilize their one remaining five (5) year
lease extension detailed in lease 97-102,2.4 Options to extend; and
WHEREAS,Kenai Fjords Tours have met all the requirements to extend this lease; 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 extension amendment with Kenai Fjords Tours for the real
property described as Lot 5, 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, are in the public's interest.
Section 2. The City Manager is authorized to execute the lease extension amendment
with Kenai Fjords Tours in substantially the form as presented at this meeting.
Section 3. This resolution shall take effect thirty(30)days from the date of approval.
PASSED AND APPROVED by the City Council of the City of Seward, Alaska, this 12th
day of September, 2022.
CITY OF SEWARD, ALASKA
RESOLUTION 2022-095
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C sty Terry, ayor
AYES: Casagranda, DeMoss, Calhoon, Osenga, McClure, Terry
NOES: None
ABSENT: Wells
ABSTAIN: None
ATTEST:
Brenda J. Ballou MC
City Clerk
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City Council Agenda Statement
Meeting Date: September 12, 2022
To: City Council
Through: Janette Bower, City Manager
From: Norm Regis, Harbormaster
Agenda Item: Resolution 2022-095: Authorizing the City Manager to Enter into a Lease
Extension Amendment with Kenai Fjords Tours to Extend the Lease Term by
Five Years
Background and justification:
In 2017, Kenai Fjords Tours (KFT) utilized one of the two lease extension stated in their lease 97-
102 2.4 Options to extend was passed by City Council in Resolution 2017-014.
Kenai Fjords Tours requested to utilize the one remaining 5-year lease extension as stated in Lease
97-102, 2.4 Options to Extend.
If approved, Kenai Fjords Tours in 2027 will need to renegotiate a new lease prior to the current
lease expiring.
Kenai Fjords Tours have met all the requirements below to extend this lease.
ARTICLE 2.4 Options to Extend
LESSEE shall have the right to extend the term of this LEASE for one additional five(5)year
period, provided that:
a) LESSEE exercises its option to extend at least one hundred and eighty (180) days prior
to the expiration of the then current lease term;
b) LESSEE is not in default under any term or provision of this LEASE; and
c) LESSEE shall exercise its options to extend by sending written notice in accordance with
the provisions of Article 37 of this LEASE; and
d) The City Council of City, at the time this option is exercised, approves the extension by
resolution or ordinance.
Comprehensive and Strategic Plan Consistency Information
This legislation is consistent with (citation listed):
Comprehensive Plan: Create a thriving port of Seward through harbor improvements,
infrastructure expansion, and implementation of management plans.
Strategic Plan: Attract New Industry: Develop an aggressive marketing campaign which
highlights the diverse resources, and quality of life that make Seward a
great place to live and establish a business or industry.
Other:
140
Certification of Funds
Total amount of funds listed in this legislation: $
This legislation (✓):
X Creates revenue in the amount of: $ 7132.28 (50% to harbor, 50% to general fund)
Creates expenditure in amount of: $
Creates a savings in the amount of: $
Has no fiscal impact
Funds are (✓):
Budgeted Line item(s):
x Not budgeted
Not applicable
Unassigned Fund Balance and Available Unrestricted Cash Balance Information
Fund (✓):
x General SMIC Electric Wastewater
x Boat Harbor Parking F1 Water F1 Healthcare
Motor Pool Other
Unassigned Fund Balance*: $ 5,873,423.06 *unaudited numbers
Available Unrestricted Cash Balance*: $ 1,370,972.86
Finance Signature:
617
Attorney Review
✓ Yes Attorney Signature:
Not applicable Comments: Assume option was exercised on or before March 28,
2022.
Administration Recommendation
e✓ Adopt Resolution
Other:
141
LEASE EXTENSION
(RE-97-102)
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," whose
address is PO Box 167, Seward, Alaska 99664 and Kenai Fjords Tours/Alaska Heritage Tours,
hereinafter referred to as the "LESSEE", hereby agree that the lease agreement 97-102 for Lot 5,
Block 6, Seward Small Boat Harbor Subdivision, City of Seward, Third Judicial District, Seward
Recording District, State of Alaska is hereby amended as follows:
ARTICLE 2.1 Lease term
The term of this lease shall be extended in accordance with Resolution No. 2022- for
five (5)years and shall terminate on September 23, 2027.
ARTICLE 2.4 Options to Extend
There are no options to extend remaining, a new lease will need to be negotiated and
approved by the then Seward City Council.
ARTICLE 3 RENTAL RATE
3.1 The Annual Rental Rate on the effective date of this amendment through June 30,
2023 is $7132.28 and shall be adjusted on July 1, 2023.
3.8 Interim Rental Adjustments. For each year in the period between each Rental
Adjustment Date, excepting the Rental Adjustment Dates,the annual rental payment shall
be increased beginning July 1, 2017 and on July 1 of every year thereafter (each on
"Interim Rental Adjustment Date") in an amount that reflects the increase, if any, in the
cost of living for the previous year as stated in the Consumer Price Index, All Urban
Consumers, Anchorage, Alaska Area, All Items 1967=100 ("CPI"), as published by the
United States Department of Labor, Bureau of Labor Statistics for the most recent period
published immediately prior to the Interim Rental Adjustment Date. In no event shall the
rent be less than the previous year. If the CPI is revised or ceases to be published, the
CITY shall instead use such revised or other index as most nearly approximates the CPI
for the relevant period, and make whatever adjustment in its application as may be
necessary, in the CITY's sole discretion, to accomplished as nearly the same result as if
the CPI had not been revised or ceased to be published.
All other terms of ARTICLE 3 remain unchanged.
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LESSOR: LESSEE:
CITY OF SEWARD KENAI FJORDS TOURS
Janette Bower, City Manager Fentphdo Salvador, Manager
Date: Date: AVq 'Z&Z2
ATTEST:
Brenda Ballou, City Clerk
(City Seal)
STATE OF ALASKA )
ss.
THIRD JUDICIAL DISTRICT )
THIS IS TO CERTIFY that on this day of 2022, before
me, the undersigned, a Notary Public in and for the State of Alaska, personally appeared Janette
Bower, known to me and to me known to be the 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:
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STATE OF ALASKA )
) ss.
THIRD JUDICIAL DISTRICT )
In
THIS IS TO CERTIFY that on this day of 4 , 2022,
before me, the undersigned, a Notary Public in and for the State o Alaska, personally appeared
Fernando Salvador, known to me and to me known to be the Manager
for KENAI FJORDS TOURS and authorized to execute documents on its behalf, and is the
individual named in and who executed the foregoing document on behalf of the corporation for
the uses and purposes therein set forth.
WITNESS my hand and notarial seal the day and year first hereinabove written.
OFFICIAL SEAL
Natasja Williams
NOTARY PUBUC-STATE OF A LASKA
APBLICA A_L owit;'My Commisslon Expires March 16,2Q IN —
l'
My Commission Expires: Z6 /Z-6
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