HomeMy WebLinkAboutRes1994-101
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CITY OF SEWARD, ALASKA
RESOLUTION NO. 94-101
ARESOLUTIONOFTImCITYCO~CaOFTImCITY
OF SEWARD, ALASKA, APPROVING A POLICY FOR NOMINATING
PUBLIC PROPERTY FOR DISPOSAL
WHEREAS, the city regularly receives unsolicited proposals to lease city land; and
WHEREAS, the city has no written policy regarding the identification and nomination
of public lands for disposal; and
WHEREAS, it is in the public interest to adopt such policies;
NOW, THEREFORE, BE IT RESOLVED BY TIm CITY co~ca OF TIm
CITY OF SEWARD, ALASKA, that:
Section 1. City of Seward Lease Policies and Procedures, a copy of which is attached
and incolporated herein by reference, is hereby ADOPTED.
Section 2. All prior resolutions in conflict herewith are hereby RESCINDED.
Section 3. This resolution shall take effect immediately upon its adoption.
PASSED AND APPROVED by the City Council of the city of Seward, Alaska, this 8th
day of August, 1994.
TIm CITY OF SEWARD, ALASKA
NO))Q.. u9. C~1UJ
Dave W. Crane, Mayor
AYES:
NOES:
ABSENT:
ABSTAIN:
Anderson, Bencardino, Crane, Krasnansky and Sieminski
Darling
O'Brien
None
CITY OF SEWARD, ALASKA
RESOLUTION NO. 94-101
ATTEST:
APPROVED AS TO FORM:
Wohlforth, Argetsinger, Johnson & Brecht,
Attorneys for the city of Seward, Alaska
O~;JJ~
City Attorney
(City Seal)
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City of Seward, Alaska
Lease Policies and Procedures
PROCEDURES FOR NOMINATING PUBLIC LANDS FOR LEASE
The following procedures have been adopted by the Seward City Council to allow
the public to nominate city owned lands not otherwise designated as available for lease
development:
A. Any person may make written nomination to the City Council for the city
to dispose of public lands without divulging specific development ideas or purposes.
B. If requested by the City Council, city staff will research and prepare a report
on titles, covenants, deeds, zoning, land use planning, other land restrictions, and any
planned public uses associated with the nominated lands.
C. The Planning and Zoning Commission will review and make a recommen-
dation to the City Council regarding the pros and cons of disposing of the nominated
parcel.
D. The City Council will hold a public hearing on the disposal of the
nominated property and, by resolution, will make a determination as to whether or not
to dispose of the nominated lands. If the City Council finds that it is in the public
interest to dispose of the nominated lands, the resolution shall specify the method of
disposal, i.e., lease, sale, negotiation, bid, or request for proposals.
E. If the City Council finds it in the public interest to lease the nominated
land, the City Manager shall proceed with the disposal process following polices and
procedures outlined in the City Code and this resolution.
LEASE PROPOSAL POLICIES AND PROCEDURES
The following procedures have been adopted by the Seward City Council to guide
prospective lessees and the city administration in handling proposals on city-owned
lands designated for lease disposal
A. The prospective Lessee shall submit to the City Manager a written
development plan, including a conceptual site plan, building elevation drawings, a
construction schedule, and proof of project financing.
B. The lease development proposal shall be submitted to the Planning and
Zoning Commission at their next regular meeting, for review and written recommen-
City of Seward, Alaska
Attachment A
Resolution No. 94-101
Page 1
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dations, including any special lease conditions the Commission determines to be in the
public interest.
C. The proposal along with written Planning Commission and staff comments
and recommendations shall be submitted to the City Council, at the next regularly
scheduled meeting, subject to agenda deadlines.
D. Not later than 30 days following presentation to Council, the City Council
shall determine whether it is in the public interest to proceed with lease negotiations.
E. Upon directing the administration to proceed with the lease negotiations,
the prospective Lessee shall, within 30 calendar days, deposit with the city a cash
performance bond in an amount not less than one-half the first year's lease payment as
estimated by the city administration.
1.. If the prospective Lessee does not diligently pursue lease negotiations
within 60 days of the date that the Council consents to the commencement of said
negotiations, the entire performance bond shall be retained by the city as liquidating
damages.
2.. If the city and the prospective Lessee reach an impasse and are
unable to come to terms on a lease agreement, the performance bond shall be returned
to the prospective Lessee after deducting lease document preparation costs incurred by
the city. Such costs shall include, but not be limited to, appraisals, attorney and actual
staff costs, advertising and other incidental expenses.
F. If the city and the prospective Lessee reach an agreement on lease terms,
the lease documents shall be signed by the prospective Lessee, approved as to form by
the City Attorney and forwarded to the City Clerk Once the Clerk receives the properly
signed lease agreement, a public hearing will be advertised and held in accordance with
provisions of the Seward City Code, and the lease agreement will be presented to the
City Council for action.
G. If the proposed lease is approved by the City Council, the resolution
approving the lease and the lease agreement shall be posted for thirty days as required
by the City Code. Barring the filing of a sufficient referendum petition to set aside the
lease, the lease shall then become effective 30 days after passage and posting. Once the
lease agreement becomes effective, the city shall deduct from the performance bond all
lease preparation costs incurred by the city, including but not limited to appraisals,
attorney and staff time, advertising and other incidental costs. The remainder of the
performance bond, if any, shall be credited towards the rents due, and the Lessee shall
be billed in accordance with the city's quarterly lease billing cycle.
City of Seward, Alaska
Attachment A
Resolution No. 94-101
Page 2
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H. In the event the City Council fails to approve the lease agreement within
60 days of the date the negotiated lease agreement is first presented to the City Council,
the total cash performance bond shall be returned to the prospective Lessee.
I. The City Council may waive any or all of these requirements as it deems
necessary to ensure successful completion of the lease negotiations.
LEASE ADMINISTRA nON POLICIES AND PROCEDURES
The following procedures have been adopted by the Seward City Council to guide
lessees and the city in the fair conduct of business associated with lease administration:
A. Fees set by resolution of the City Council will be assessed to cover
administrative time, copying costs, phone calls, postage, legal notices and other costs
associated with processing all lease assignments, amendments, and sublet consent actions
requested by lessees. Additionally, lessee will pay all recording fees and will reimburse
the city of city attorney time in connection with the requested action or actions.
B. Lease assignments and sublet consent requests will be reviewed, processed
and approved as administrative functions subject to:
1. All taxes (real, personal and sales), utilities, lease payments, assess
ments, licenses and insurance must be current.
2. All appropriate fees must be paid in advance.
3. City sublet approval will not be required for individual tenant space
rentals in buildings designed with separate retail and office spaces.
4. Following evaluation and administrative determination, the city may
require a personal guarantee by lessees requesting assignments to corporations which are
principally owned by lessee and created for tax and liability purposes.
5. Each sublessee must provide proof of insurance in accordance with
the principal lease, naming the city as an insured party.
6. The city must be provided a copy of any sublet agreements, including
lease amounts, so that the city may forward this information to city appraisers for future
fair market value determinations. Copies of the sublet agreements, including lease
amounts, will be provided to the City Council at the next regular Council meeting.
C. Amendments to leases that change the essential terms and conditions (lease
rate, term, land area, or development conditions) may be approved only by resolution
of the City Council. Such requested amendments will be scheduled for Council action
only after the following terms have been met:
City of Seward, Alaska
Attachment A
Resolution No. 94-101
Page 3
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1. All taxes (real, personal and sales), utilities, lease payments, assess
ments, licenses and required insurance must be current;
2. All appropriate fees must be paid in advance; and
3. The lessee's signature(s) must be in place on all required documents.
City of Seward, Alaska
Attachment A
Resolution No. 94-101
Page 4