HomeMy WebLinkAboutRES2023-003 Alaska Logistics Lease Assignment to JAG Sponsored by: Bower
Public Hearing: January 9, 2023
City of Seward,Alaska
Resolution 2023-003
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD,
ALASKA,AUTHORIZING THE CITY MANAGER TO SIGN A CONSENT
TO ASSIGNMENT TO JAG ALASKA,INC.,OF LEASE AGREEMENT L 09-
126 WITH ALASKA LOGISTICS, LLC, FOR LOT 2, BLOCK 3, FOURTH
OF JULY CREEK SUBDIVISION, SEWARD MARINE INDUSTRIAL
CENTER,KENAI PENINSULA BOROUGH AND RECORDED AS PLAT NO.
97-108 IN SEWARD RECORDING DISTRICT, THIRD JUDICIAL
DISTRICT, STATE OF ALASKA
WHEREAS,Alaska Logistics,LLC("Lessee")has requested an assignment of the existing
lease agreement 09-126 with the City of Seward for 2.5 acres,more or less of Lot 2 Block 3,Fourth
of July Creek Subdivision,Seward Marine Industrial Center,Kenai Peninsula Borough and recorded
as Plat No.97-108 in Seward Recording District, Third Judicial District, State of Alaska, to Jag
Alaska, Inc.; and
WHEREAS,Article 12 of the Lease provides that the Lessee shall have the right to assign
the lease upon findings by the City Council that use is found to be in the public interest,and that the
proposed assignee has credit-worthiness and operating experience suitable to manage any facilities
on the lease site; and
WHEREAS, Jag Alaska„Inc.will continue to use the leased land for operating a business
to store vessels, engage in ship repair and maintenance, equipment rent and storage, equipment
maintenance,and similar related marine business activities and uses necessary and incidental thereto;
and
WHEREAS, the current lease has been in effect since December 31, 2009; and
WHEREAS,the current lease was extended and amended in Resolution 2015-045 and will
expire on December 31, 2113.
NOW,THEREFORE,BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF SEWARD,ALASKA that:
Section 1. The City Manager is hereby authorized to sign a Consent to Assignment to Jag
Alaska, Inc., in substantially the form as attached hereto.
Section 2. The recitals set forth above are incorporated herein by reference and adopted as
findings of the City Council. For the reasons stated, an assignment to Jag Alaska, Inc., in the form
presented at this meeting is found to be in the public interest.
CITY OF SEWARD,ALASKA
RESOLUTION 2023-003
111
Section 3. This resolution shall take effect thirty(30) days from the date and posting of
adoption.
PASSED AND APPROVED by the City Council of the City of Seward,Alaska,this 9th day
of January, 2023.
THE CITY OF SEWARD,ALASKA
Cr
Sue McClure,Mayor
AYES: Wells, Osenga, DeMoss, Finch, Barnwell, Calhoon, McClure
NOES: None
ABSENT: None
ABSTAIN: None
ATTEST:
Brenda J. Ballou, MC
City Clerk
,,���.FSEu.•.,•.
Fo
�. b :
• SEAL I • -
•
E 1, ' ..•' Q- ��
City Council Agenda Statement
Meeting Date: January 9, 2022
To: City Council
Through: Janette Bower, City Manager
From: Norm Regis, Harbormaster
Agenda Item: Resolution 2023-003, Authorizing The City Manager To Sign A
Consent To Assignment To Jag Alaska Inc., Of Lease Agreement
L09-126 With AK Logistics LLC, For Lot 2, Block 3, Fourth Of July
Creek Subdivision, Seward Marine Industrial Center, Kenai Peninsula
Borough And Recorded As Plat No.97-108 In Seward Recording
District, Third Judicial District, State Of Alaska
Background and justification:
Alaska Logistics LLC currently has Lease L09-126 containing 2.5 acres more or less of Lot 2 Block 3,
Fourth of July Creek Subdivision, Seward Marine Industrial Center, Kenai Peninsula Borough and
recorded as Plat No.97-108 in Seward Recording District, Third Judicial District, State of Alaska.
Alaska Logistics LLC has requested approval to assign the lease 09-126 to Jag Alaska Inc., which
will continue to use the leased land for operating a business to store vessels, engage in ship repair
and maintenance, equipment rent and storage, equipment maintenance,and similar related marine
business activities and uses necessary and incidental thereto.
Article 12 of the lease allows lease assignments upon findings by Council that use is found to be in
the public interest and that the proposed assignee has credit-worthiness and operating experience
suitable to manage the facilities on the leased property.
The current lease L09-126 will expire on December 31, 2113.
Comprehensive and Strategic Plan Consistency Information
This legislation is consistent with (3.5.1.2):
Comprehensive Plan: Plan for adequate port infrastructure that will serve the needs of users
in the main industrial/Alaska Railroad area and at the Seward Marine
Industrial Center (SMIC).
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:
Certification of Funds
Total amount of funds listed in this $ 16,361.68
legislation:
301
This legislation (✓):
X Creates revenue in the amount of: $ $16,361.68 which includes tax
Creates expenditure in amount of: $
Creates a savings in the amount of: $
Has no fiscal impact
Funds are (✓):
X Budgeted Line
item(s):
Not budgeted
Not applicable
Unassigned Fund Balance and Available Unrestricted Cash Balance Information
Fund (✓):
General x SMIC Electric Wastewater
Boat Harbor Parking F1 Water F1 Healthcare
Motor Pool Other
Unassigned Fund Balance*: $ *unaudited numbers
Available Unrestricted Cash $
Balance*:
Finance Director Signature:
Attorney Review
x Yes Attorney Signature:
Not applicable Comments:
Administration Recommendation
x Approve
Resolution
Other:
302
CONSENT TO ASSIGNMENT
This CONSENT TO ASSIGNMENT is made by the City of Seward ("City' .
RECITALS
A. The City and Alaska Logistics LLC, ("AL") are parties to that certain Lease
Agreement L09-126; dated as of 12-31-2009, and Lease Extension Amendment
2015-045 dated 7-23-2015 ("the Agreement") as evidenced in that certain
Memorandum of Lease recorded 08-03-2015 as Serial No.2015-000708-0; and
B. The legal description of the leased property is:
Lot 2, Block 3, Fourth of July Creek Subdivision, Seward Marine Industrial
Center, Kenai Peninsula Borough and recorded as Plat No.97-108 in Seward
Recording District, Third Judicial District, State of Alaska. and
C. AL has asked that the City consent to the assignment of all of right, title, and
interest in and to the Agreement to JAG Alaska Inc., ("JAG").
CONSENT
1. City hereby consents to the assignment of AL's right, title and interest in
and to the Agreement to JAG ("Assignment"). Following the Assignment, the
Agreement shall continue in full force and effect with JAG substituted for AL, as
applicable.
The undersigned has executed this Consent to Assignment as of the date set forth
below.
City of Seward
Date:
306
By:
Janette Bower, City Manager
ATTEST:
Brenda Ballou, City Clerk
307
ASSIGNMENT OF LEASE
RE-L09-126
THIS AGREEMENT made and entered into between
Alaska Logistics LLC, hereinafter called "ASSIGNOR", and Jag Alaska, Inc. hereinafter called
"ASSIGNEE" with the consent of the City of Seward, hereinafter referred to as "Landlord".
WHEREAS,by Lease dated December 31,2009 made between THE CITY OF SEWARD,
ALASKA, "LESSOR",a home rule municipal corporation,organized and existing under the laws of
the State of Alaska, and amended by Lease Extension Amendment Resolution 2015-045 and
recorded by Memorandum of Lease 2009-001754-0. The premises, described as, Lot 2, Block 3
Fourth of July Subdivision, Seward Marine Industrial Center,Kenai Peninsula Borough,Plat No. 97-
108 Seward Recording District, Third Judicial District, State of Alaska
WITNESSETH,that for valuable consideration paid by the ASSIGNEE to the ASSIGNOR,
receipt whereof is hereby acknowledged, the ASSIGNOR assigns to the ASSIGNEE the premises
described in said lease, as amended, for the unexpired term of said lease, subject to the payment of
rents and performances of the covenants, conditions and stipulations therein.
ASSIGNEE covenants during the continuance of said term to pay the rents reserved and to
perform the covenants,conditions,and stipulations in said lease,as amended,to be performed by the
ASSIGNOR and to keep indemnified the ASSIGNOR against all actions, claims, and demands
whatsoever in respect to the said rents, covenants, conditions, and stipulations, or anything relating
thereto.
IN WITNESS WHEREOF, the parties hereto have set their hands and seals on the dates
indicated.
ASSIGNOR: ASSIGNEE:
Allyn Long, Managing Member Tim Jagielski, Jag Alaska Inc.
Date: Date:
308
STATE OF WASHINGTON )
)ss
THIRD JUDICIAL DISTRICT )
THIS IS TO CERTIFY that on this day of ,2022 personally appeared before
me the undersigned, a Notary Public in and for the State of Washington, to me known to be Allyn
Long, Managing Member of Alaska Logistics LLC, a Washington limited liability company that
executed the foregoing instrument and acknowledged to me the said instrument to be the free and
voluntary act and deed, for the uses and purposes therein mentioned of the corporation and on oath
stated that he is authorized to execute said instrument on behalf of the corporation.
WITNESS my hand and notarial seal the day and year first hereinabove written.
Notary Public in and for Washington
My Commission Expires:
STATE OF ALASKA )
)ss
THIRD JUDICIAL DISTRICT )
THIS IS TO CERTIFY that on this day of ,2022,personally appeared before
me the undersigned,a Notary Public in and for the State of Alaska,to me known to be Tim Jagielski,
General Manager that executed the foregoing instrument and acknowledged to me the said
instrument to be the free and voluntary act and deed,for the uses and purposes therein mentioned of
the corporation and on oath stated that he is authorized to execute said instrument on behalf of the
corporation.
WITNESS my hand and notarial seal the day and year first hereinabove written.
Notary Public in and for Alaska
My Commission Expires:
309
7 Geographic Information Systems AK Logistics to Jag
{'$p'J 144 North Binkley Street,Soldotna,Alaska 99669
je
Y.
.N .M
Legend
w a
5� • Mileposts
KPB Boundary
Place Names
�" ° '"y y ," • Towns and Villages
°w
°
City
JELLISON AVE — Highways
'Z � — Major Roads
Roads
Town Medium Volume
Town Low/Seasonal,Other
Proposed
.• ., . Tax Parcels
MORRIS AVE
y
LW
This map is a user generated static output from an Internet mapping site and is for reference only.Data layers that appear on this map may or may not
be accurate,current,or otherwise reliable. It is not to be used for navigation. Notes
Platt 97-108
DATE PRINTED: 12/6/2022
310