HomeMy WebLinkAboutRES2026-070 1317 Fourth Ave Lease - Kenai Fjord ToursSponsored by: Sorensen
Public Hearing: August 24, 2026
CITY OF SEWARD, ALASKA
RESOLUTION 2026-070
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA,
AUTHORIZING THE CITY MANAGER TO ENTER INTO AN ASSIGNMENT OF
LEASE WITH KENAI FJORDS TOURS FOR 1317 FOURTH AVENUE, CURRENTLY
LEASED TO FORESTS, TIDES & TREASURES WITH A LEASE EXPIRATION DATE
OF FEBRUARY 24, 2052
WHEREAS, Vertical Air LLC, dba Forests, Tides and Treasures, has been doing business in
Seward since 2016 and at their current location in the harbor area since 2019; and
WHEREAS, Vertical Air LLC assumed the current lease in 2022 from the previous lessee; and
WHEREAS, after Vertical Air LLC decided to sell their Forests, Tides and Treasures business,
CATC Alaska Tourism Corporation dba Kenai Fjords Tours inquired about the process of acquiring
the business and assuming the current lease; and
WHEREAS, the current lease has been in effect since February 24, 2006, and will expire February
24, 2052; and
WHEREAS, taking over the lease, Kenai Fjords Tours will continue to operate this lease site as a
retail shop as specified in the lease and consistent with current zoning and land use regulations.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
SEWARD, ALASKA:
Section 1. The City Council hereby authorizes the City Manager to enter into Assignment of Lease
with CATC Alaska Tourism Corporation that will expire February 24, 2052.
Section 2. For the reasons stated, an assignment to CATC Alaska Tourism Corporation as presented
is considered to be in the best interest of the public.
Section 3. This resolution shall take effect 30 days after approval.
APPROVED BY THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA THE 241h
DAY OF AUGUST 2026.
,C1),J'rfilrCALre
Sue McClure, Mayor
CITY OF SEWARD, ALASKA
RESOLUTION 2026-070
Page 2 of 2
AYES: Osenga, Calhoon, Barnwell, Crites, Warner, Draper, McClure
NOES: None
ABSENT: None
ABSTAIN: None
ATTEST:
Kris Peck
City Clerk
City Council Agenda Statement
Meeting Date: August 24, 2026
To: City Council
Through: Kat Sorensen, City Manager
From: Tony Sieminski, Harbormaster
Subject: Resolution 2026-070: Authorizing the City Manager to Enter into an
Assignment of Lease with Kenai Fjords Tours for 1317 Fourth Avenue,
Currently Leased to Forests, Tides & Treasures with a Lease Expiration Date
of February 24, 2052
Background and justification:
Vertical Air, dba Forests, Tides & Treasures, operated in Seward since 2016. They moved to their
current location in 2019 and in 2022, purchased the building, and assumed the 2006 lease from the
previous leaseholder.
At that time, they requested an additional 16 years be added to the lease, extending that lease into
a 30-year lease agreement. In addition to that 16-year extension, they requested that the 2 five-year
extensions remain in place. These terms and all other aspects of lease will remain unchanged and
in full force with this assignment of lease to CATC Alaska Tourism Corporation, dba Kenai Fjords
Tours.
Kenai Fjords Tours has been a fixture within the Seward Harbor and the original daily tour operator
that started in 1978, before Kenai Fjords became a national park in 1980. The current operation has
seen many upgrades and currently has a lease on two separate parcels within the harbor area that
serve as their office building for passenger check -in and retail/office space for other area vendors.
Kenai Fjords Tours inquired in late spring of 2026 about the process for transferring a lease and
has been in negotiations with the seller over the summer. They made a request to proceed forward
and assume the current lease L06-008. They will continue to operate as a retail shop as required by
the lease. The lease has been in effect since February 24, 2006, and will terminate on February 24,
2052.
Fiscal Impact:
Funding Source:
X
iscal Impact
Yes — Amount: $XXXXX Budgeted:
No
General Fund:
Enterprise Fund:
X
Yes
No
N/A
City Council Agenda Statement
Grant:
Other:
Finance Director Signature:
Comprehensive and Strategic Plan Consistency Information
This legislation is consistent with (citation listed):
Comprehensive Plan:
Strategic Plan:
Other:
X
Yes
Attorney Signature:
Not applicable Comments:
Administration Recommendation
X
Approve
Other:
After Recording Return to:
City of Scward
Attention: Harbormaster
P.O. Box 167
Seward, Alaska
ASSIGNMENT OF LEASE
RE- L06.008
THIS AGREEMENT made and entered into between Vertical Air, LLC, Lessee, P.O Box
2032 Seward, Alaska 99664, hereinafter called "ASSIGNOR", and CATC Alaska Tourism
Corporation, P.O. Box 749 Seward, Alaska 99664 hereinafter called "ASSIGNEE", effective with
the consent of the City of Seward, hereinafter referred to as"Landlord" (the date of signed consent
being the "Effective Date").
WHEREAS, by Lease dated February 24, 2006 ("Lease") and assumed by ASSIGNOR
and LANDLORD, a home rule municipal corporation, organized and existing under the laws of
the State of Alaska, referenced by a recorded memorandum of lease recorded March 2, 2006 (under
reception no. 2006-000309-0), Seward Recording District, Third Judicial District, State of Alaska,
and later amended by Lease Extension Amendment dated January 14, 2022 (under reception
number 2022-000118-0) LANDLORD leases the premises, described as, Lot 5B, Block 1, Seward
Small Boat Harbor Subdivision, City of Scward,Alaska and recorded as Plat No.2000-19 in Seward
Recording District, Third Judicial District. State of Alaska, consisting of approximately 4,250
square feet, more or less, to ASSIGNOR subject to the covenants, conditions and stipulations
therein.
WITNESSETH, that for valuable consideration paid by the ASSIGNEE to the ASSIGNOR,
receipt whereof is hereby acknowledged, the ASSIGNOR assigns all of its right. title and interest
in and to the Lease to ASSIGNEE as of the Effective Date. After the Effective Date ASSIGNOR
shall have no further obligations under or liabilities arising from the Lease, except; 1) those arising
from or related to circumstances prior to this assignment; and 2) those based on ASSIGNOR's
duty to defend and indemnify the Landlord pursuant to Article 13 of the Lease.
ASSIGNEE accepts the assignment and delegation and assumes and covenants during the
continuance of said term to pay the rents reserved and to perform the covenants, conditions. and
stipulations in said Lease, to be performed by theLessee under the Lease.
ASSIGNOR agrees to indemnify, hold harmless and defend ASSIGNEE from and against
any obligations, liabilities, costs and claims (including reasonable attorney's fees) arising as a result
of or with respect to the Lease that are attributable to the period of time prior to the Effective Date.
ASSIGNEE agrees to indemnify, hold harmless and defend ASSIGNOR from and against any
obligations, liabilities, costs and claims (including reasonable attarney's fees) arising as a result of
or with respect to the Lease that are attributable to the period of time from and after the Effective
Date,
This Assignment shall be binding on and inure to the benefit of the ASSIGNOR and
ASSIGNEE, their heirs, executors, administrators, successors in interest and assigns. This
Assignment shall be governed by and construed in accordance with the laws of the State of Alaska.
This Assignment may be executed in multiple counterparts, which together shall constitute one and
the same agreement.
Signatures to follow.
IN WITNESS WHEREOF, the parties hereto have set their hands and seals on the dates
indicated.
ASSIGNOR: Vertical Air, LLC ASSIGNEE. CATC Alaska Tourism Corporation
toZNALd
Ixa Donahe
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Linda Chichester, Member Date
Date
LANDLORD: City of Seward
Kathleen Sorenson, City Manager
City of Seward
Date
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STATE OF ALASKA
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THID JUDICIAL DISTRICT)
THIS IS TO CERTIFY that on this J day of S} , 2026, personally appeared before
me the undersigned, a Notary Public in and for the State Alaska, to me known to be Member
Cliff Krug the individual that executed the foregoing instrument and acknowledged tome the said
instrument to be the free and voluntary act and deed, for the uses and purposes thereinmentioned
of the Limited Liability Company and on oath stated that they are authorized to execute said
trumenton behalf of the Limited Liability ` \�\\\1111141411I11� Company.
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THIS IS TO CERTIFY that on this ✓ day o, 2026, personally appeared before
me the undersigned, a Notary Public in and for the State Alaska, to me known to be Member
Linda Chichester the individual that executed the foregoing instrument and acknowledged tome the
said instrument to be the free and voluntary act and deed, for the uses and purposes therein
mentioned of the Limited Liability Company and on oath stated that they are authorized to execute
said instrumenton behalf of the Limited Liability Company.
WITNESS my hand and notarial seal the day and year first he abo c w 'tten.
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Notary ` . + is in and for Alaska
My Commission Expires.
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STATE OF ALASKA
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THIRD JUDICIAL DISTRICT)
THIS IS TO CERTIFY that on this 3 day of dutSt, 2026, personally appeared before
me the undersigned. a Notary Public in and for the State of Alaska, to me known to be Alexa Donahe
theindividual 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 '. '4
Corporation.
WITNESS my hand and notarial seal the day and year first hercinabove written.
STATE OF ALASKA
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THIRD JUDICIAL DISTRICT )
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Notary Public in and for Alaska A i t`
My Commission Expires: 0713j/2610
THIS IS TO CERTIFY that on this day of . 2026, personally appeared before
me the undersigned, a Notary Public in and for the State of Alaska, personally appeared Kathleen
Sorensen, 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 f 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 . 4 r.
My Commission Expires:
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ILLS
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Small Boat Harbor
Lot 5B Block 1
Due to different data sources property lines and aerial
imagery do not overlay correctly. Map is to be used for
orientation and reference purposes only.
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1317 Fourth Ave
Drawn By: Selena Soto
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