HomeMy WebLinkAboutRes1992-157
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Sponsored by: Schaefermeyer
CITY OF SEWARD, ALASKA
RESOLUTION NO. 92-157
A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF SEWARD, ALASKA, AMENDING CITY LEASE PROCEDURES
WHEREAS, the city of Seward continues to have public property available for long
term lease to prospective industries and businesses; and
WHEREAS, it is important that all prospective lease proposals are treated in a fair
and equitable manner; and
WHEREAS, city lease proposal procedures established by city of Seward
Resolution No. 84-114 need refinement and clarification;
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF SEWARD, ALASKA, that:
Section 1. City of Seward Resolution No. 84-114 is hereby rescinded.
Section 2. City of Seward Lease Proposal Procedures. a copy of which is attached
and incorporated herein by reference, is hereby ADOPTED and shall apply to proposals
to lease any and all city owned lands.
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
28th day of September, 1992.
THE CITY OF SEWARD, ALA
AYES:
NOES:
ABSENT:
ABSTAIN:
Bencardino, Crane, Krasnansky, White
None
Dunham, Swartz
None
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City of Seward, Alaska
Lease Proposal Procedures
The following procedures were adopted by Seward City Council Resolution No.
92-157 to guide those presenting lease proposals and the city administration in the
handling of proposals to lease city-owned lands.
A. Prospective Lessee shall submit to the City Manager a written development
plan, including conceptual site and building elevation drawings, for any parcel of land
to be considered for leasing. The development plan shall include proposed construction
commencement and completion dates.
B. The City Manager shall, subject to established agenda deadlines, present the
lease proposal at the next regularly scheduled City Council meeting for authorization to
proceed with lease negotiations.
C. The City Council may approve or reject any proposal, provided, however,
that such action shall be forthcoming within 60 days of the date the proposal was first
presented to the Council.
D. If the City Council directs the City Manager to proceed with the lease
negotiations, the prospective Lessee shall, within 10 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.
E. 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.
F. 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 staff time,
advertising and other incidental expenses.
G. If the city and the prospective Lessee reach an agreement on lease terms,
the lease documents shall be signed by the prospective Lessee and approved as to form
by the City Attorney. A public hearing will then 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.
City of Seward, Alaska
Attachment A
Resolution No. 92-157
Page 1
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SEP-ll-92 FRI 15:40
C lTY OF SEWARD
FAX NO. 9072243248
P.GS
ooope~t.f;l and assist L!:SSEE in LESSEE's planning' QnQ ol1gineln'1ng of
tholle illlprovements and. further, tQ a.liJliJist in coard1na:t:ing the
actual connection of those utilities to the Cit.y system. Cl:'1'Y
agrees t.o make rea.sotlal:11e efforts to pZ'ovide connection of
ut.i1it.ie. to the cit.y eyatemf however, ~hlil partios 1"~!ze that
circumlltances MY arise, includ1.n9 the avallal:)ili~y and pri~J:'lty 0'
Ut.iLity lIenice crew., which :ai.ght nat be ad.equau to meet. tBSSD'.
neec!s.
u:ssa lib-all not: be G:nt.1tled to a.ny retund. rd:lau, or
payme1'lts f'rO!l1 CI'1'Y f'cr any rent, invest11I.ent, or coats inc:surred by
tiJ!lSSEB with respect to a.ny required petlllits toZ' oonstruction or
oparat:ion of tBSSEE's facilities on the leased. land, 11: ~ng the
intent of the parti.. that the risk of obtaining Z'.qtrtred p8nits
])e SOlely a risk underta.ken by U:SSD.
5.2"-Thi~ P~1iZY l:lM)rov"lIIen~ll. A~ th.:a requ.st e<t USSER, CITY
shall, frail t. ma t.o t;i.l\l8, .x.cute and d.liver or join in exec:ut:.ion
anc! deli"Gry o~ sUCh doClUlAnts as are appropriate, nee..sU!' or
taqqiracJ. to 11l1POse upon 1:he leased land ilnd in accordance with tha
term.a of 1:111& Aql'eemant covenants, oonclitions and restrioticms
providing for tb.e qrant.in; of uses of' the leased land, or any part
theraotl the 8II'tal:1lish:lllent of party wall., the 6etBlis'bll1en1:. ox
mu.tual and reciprocal pu-lI;ing :tights or dg.b1:. of i.nqress or
~ess, or other like matters (berein called. nt.hi.rd- party
imprcvementgn" all of which ar. ~or the purpose of the orderly
development of t.b4 lea..el land all it commercial unit subject.,
however, 'to the ocntllt.iot\S tbat:
a) All such matters shall be limited to the lea.. te1:lll
and ~ll tarmi1\aU upon t.ermination of the Lealie for whate...er
reaSon.
b) Any such matters of ill permanent nAture axt.ending
beyond tt1e learsu t:erm _hall no't be '3':t:anted withou-= tbe prior
written approval of CITY~ In IIny of the foregoinq instanC!es
referred to in this Section, -C1'rr-iihaU-' l)e-.wi'thout:. expense
the:efoZ'o, and. ~e ~OGt. and expBJUl. the.reo1: shall be barne 1lO1eJ.y
by LB$SEE.
c) At. the expiraeion of the laase term (includ.ing any
ektended period] 1:hi:'d party ilnprtlvC!.1Ilents on t:h8 leased. land othe~
t:han portcmle aquipllU!t1-t shall beeoma the property of ellfl! without:
tho payment of any OCDpensation to LBaSEE.
S.3-..J'ut:ure 111.51I!!f,,,",,n1;,l. In order to provide fO~ the more
O%d.e1'~y commercial developaLElnt of t:he leued. land cmd. ad:! aeent.
landa, and. publioly owned fae11itles in tbe Sew.r4 Marine
:rndu:tt:rial e&nt:e.r &%liIa. it may be. necessar.:,r, desirable or raquired
tha.t :otrlM't., r.1lrotlC!, wat:er, saver, cS~ainaqe, 'I"', pcwlilr line and
otber elUlemen'ta and 4edicatiol1S and similar t'1gh1:S bEl qrM~e.d or
dec!ica'ted OV4U' or witl1in portions of the leased land. As
a.dditional consideratioll for t:hia lease, both CX'l'Y anei L!S8D
ah;a11, {l,t: t.he request of t.h.II ather, join with each other in
KO'l'AlUt :tEASB
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SEP-11-92 FRI 15:41
C 11Y OF SEWARD
FAX NO. 9072243248
p.oa
~eeutin9 and daliv.ring such doot.l:lllent:s from time Co time and
throughout. the lease term as may bEl appropria.tlil, necessary, or
l:'equlred by the several qovernmental a.genc.l.e&i (inoluding the Cit.y
Of SeWard), pUblio utl1ities and ether users or tenants of the
~enBral leas.e area for the purpose of qrl.ntinq .ueh oase1ll/!lntll and
dediaat1ons; provided, however. ~i!lt $uch eaaemunts and cleclloatioftSl
and aiJaUa:t' l"ight_ do not unrealllonably interfere with LEBSR'S
efficient operat.ions. The costs of looatinlJ or relocating any
public ..semen'!:s or- rest.r1ctiontJ of reccrd. including- MY retode'tion
of ~11o road, railroad., utility, or other easement. shall ba lilt
the .ol~ OQst. and. expense of the party requesting the reloca.ti.on.
CITY shall not rofn8 reallonable requests for such relocationlll
prov1c1acl 'thoM relocations do net. int.erfere with or inhi.bit th.
overall Clevelopment of !:he general lease area. AnY easeaents or
riqhts oot accue CJr2IntAl! t.O LBSSBE by C%'l'Y need 'not. 1)8 exolusive to
LESSEE.
I.,'UCH 6. ..- fdlT'IJRN 01' PRBK1SI!S(8J:'1'B ClO!!ll'l'~
7.1--~a~Urft of Premise~ i~ Ori~ina1 candit~an. Upon
termination of this lease for any Aason, LESSEE M.all return the
leased la.nc1 to CJ:'l'Y in the good eOndidon, us~l. as it. was
originally :I.J'l.tand.ed. '!'he lRued land 'hall ~ tree of all
hzard.QWI Material at the leasod. land. arisinq out ot or resulting
f~om LESSEE'S ope~ations of the leased. land.
Ul'l':tCLIl 7 .... :raRe!: MJJ2DUl
'In the evant either t.BSSEE or CITY is dalaye4 :trOll puformanc8
o~ any of its c~li;ations ~nder this 1...., due to Bets Of God,
aQ1:a Of t:he enemies of the Un:l.ted status of ~erlea, war, illllxltaCiJB,
hlcckada, inaurre.cticm, riot, epidelllic, fi:t1Js, floods, eJl;plosioM,
eaJ:thquakes/t.sUJWI\i Ot' ciVil dist:.ut't:lanea, the UP peried. wherein
such perfotma.n~. is to occur shalll:le eXtended by that iUlount ot:
t11le nec4Ssary to compensa1:e for--tJ1e- delay.-.- - ..----
)RT:leLB 9. -- LISS!!.' S l\.Q'1'8 OP t11ll'AUM!
EaCh of tl1e following shall be a nLTiiSSEE Act: of Default- undar
this leA" and. d1e ten15 -"ct.s gf default:" and. "defaultll shall
mean, whenever they lire used in t:bis lel1l11., any CIne or mora of the
tOllowinq event.:
a) Fa.ilu:re by LESSEE to pay pro1'l.ptly when due the rentals
l!equuod. 1:0 be pald under '!:his leasa.
l:i) Pallure by LESSli12 to obSGlrve. fUlfUl or per~orD. any
oovenants. conc.U.t.iona or .qreements on it:s part to be observed or
KC'l'ARR LEAS!:
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SEP-11-92 FR! 15:42
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C ITV OF SEWARD
FAX NO. 9072243248
P.07
perfoJ:1\\ed under this l..se for a period of five(05) days after
written notice specifying such failure, request:ing that it be
remedied, and stating that it is a notice of default, bas been
given t.o LESSEE :by CITYJ providAd, howe"!!!!:', that if .aid. default i.
such that it caMot be corrected within the applicable period, it
sha~l not conat.itute an act of ciefault. it corrective action is
inIJt1tUi:ed by tBSSEE within the applicable ~dod and d1Hqent.ly
pursued until tM clefault is carreetecl.
c) The making by LESSEE ot an ausignment for the benefit
of creditors, the filiJl9 of a petition in bankrupt.cy by lIESSJi:E, the
adjudica:ti.on ot LESSEE liS insolvent: (ll~ bankrupt:, the petition or
applicat.ion by LESSEE t.o any tribunal for any receiver ot' any
t.ruet_ for itself or for any substantial part ot its propert.Y1 or
the commencement o~ any p~oceeding relatinq to ~SJi:E under any
ba.nkru.ptcy, iNlolvency, rElorqanization, arranqeaent or readjustment
ot debt law or statuta or similar law or statute of any
jurisdiction. whe1:her now or herli!Clft.er 1n effect whiob. .ball remain
undia1sead tor ill period of six (6) months tram the date of
CQ1IlIIenc.1llEInt th~eot.
d) Violation by UiSSBE of any laws or :r:eCjJUlations ot the
United stat.., or of 1:11e St.ate of Alaska, or any concUtions ot ,an.y
P4ntits issued lly agencies of the city of seward., the 1Cel'\a1
Peninsula Borough, the St.ate of All1llka or of the Unit.ed. States
Gove=munt pursulmt: to the requlations ot such aqanciaa, fok' a
period of thirty (30) days after written notice specifyinq such
violation has been given ])y the aqenc:y charqed with the enf.orcement
of such laws, regW.ations or permits to L!SSBE; provided, however,
if sucb viola~ion be such that it cannot. be corrected within the
applicable periOd, it. shall not. eons~itute an .ct of de-fault if
corrective action i. instituted by LESSEE within thQ aI~licahle
period and diligently pursued until the violation is corrected.
Purthermore, if tJ!lssa shall eontast -such alleq$CI violat.ion through
approp:r:-iate judiCial or administrati-.re-channelt1r-the tine period
spetlified. herein shall net: commence until such proceecUnqs are
f'inally <letemined provided such proceedings are 4 iligen~ly
pursued., provicled, however, that allY such extension of tip shall
not: 1:Ie effective if the effect of the interim adlllinistrat.ive or
jUdic1al aotion i. to Clluae a stoppage, in'l:.ltl:1:Upti.on or 'threat: to
the activities of any P4irson or entity other than those of Ii!Ssn.
JUl'1'tOLB g. - 1U!1l1l1DXJlS POR DElI'AULIJ!I 1lY LBSSBB
Whenever an act ot default by LESSEE shall have occurred, anCt
any applioable period for giving notice and any opportunity to curB
shall have expirell, CITY shall have the followinV riqhUl and
remed1e8 in addition to ~y riqhts and remeciies that ~y be qiven
to CI'l'Y by statut.e,. C01llDl.on law or otherwiae:
a) CITY JllliLY distrain for rent due any of! LESSIE'_
McTA1lR L1!ASJ::
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SEP-ll-Q2 FRI 15=42
C IT'!' OF SEWARD
FAX NO. 9072243248
P.oa
personal property Whioh OOllles into CI'l'Y's pOlisassian. This l:'emed.y
shall incluCle the riqht of CI'l'!I/ to dispose of perBonal III:OPer1:.y
distraine(l 1n any cxm:meroiillly ;t"ea5ona.ble manner. It shall ~Q
conclusively pr..waed that compliance ..,.i~ the procedure. !;tat !orth
in the. Alaska uniform C:ODl1IIercid Code (A.S 45.09.504) with respe.ct
to $al. of p~perty _ball ~e a oommeroially reasonable di8~osal.
D) exn may n..~te:r the basad lanCl and take possession
the:t:eof 8ndt eKeept:. tor ilny perAonal propet1:yof LESSEl!: which ctn
has valved 1t:... right ~o distrain UlIdAr sutl-part (a) abOVII, ruiwe
all p.rsonal property of ~SSBS fr01ll the leased land. Such
ptU:Sonal property lIaY ~e stm!ed in place or may be rUlOVed. and
stored. 1n a pUblio vaNhoose or elsewhar. at th4 cost of tiBSSE2 all
without service o~ notice or resort to le9'Al process, all of whiCh
LEsSEE expressly waives.
c) Declare thia lease te~nated.
d) eoU.= any and all rent. due or to become due from.
sub-tenants oX' other OOgUpant. gf 1:he leasec! land.
e) ReOOVCU:, whether this lea..:. be 1:erminated 03:' not,
rGasonable attorney's: files fr01ll LESSEll and all otheX' expenses
incunood by'CIlJ:IY by reason of th4 breach or defaUlt. by LESSEE.
r) ReCOVer an lll'IlClunt: to be dus illllD.ediately en breach
4qual to the rent: reserved under this lell.lle dbcounted to -tbe uu
or such breach at the rate of e:l.i;lht percent. (8%) per yeaz-. tf 'the
leased. land or any part tnereof be re-le't. by CITY for ~e unexpir.ci
term at this lea.., CITY lihall reimburae to LISSIE upon r..de1pt. lrl
amount. not 1;0 exceed the. amount received by Cl'l'Y under this
sac:t.ion.
q] If t.I!lSS:u d.oes not. UmGdiately lIurrendar pru;session of
1:110 lea.ed land atter tGX'ltinat.ian by Ct'l''ll and UpOD demand by CIft,
CITY _Y forthwith enter into and upon ancl repossess the leased.
1aru1 and expel LESSb wit:hcut be'D'l13-CSee1llladqui1"ty-1n any llWUl8:1:' o~
uA.pas8 1it.nd withO\1t prejudice ~C1 any rBIDadi.s which lIl1.ght
ot:h$rwiss be USed for arrea.rs of rent or br8ach ot covenant.
h) No expiration or termination of thb leal!le .ball
expire 01:' term:Lnata iUly lul:lllity or obliqat.ion to p.3rton of
~SBlil'liI which arolls p:dcr to the tena1nlltioft or eitpint.icn except
insofar as otbenise al:Jreed to in thlD lease.
i) lle.eb. right. and ::-emedy ot er.L'~ provi~ fer in this
lea.. shall be cumulll~ive and shall ~e 1n addition to e\~ other
right: or remedy prcvidad for in this lease or ~ow or hereafter
exisi:.i,ng at law or in equity or bY statuta or otherwise, &Dc! t;h.
ex.roue or baginn1nq ot the exercise by CiTY or any OM Qr mo;r_ of
the riqhts and rqedies provided tor in this lease Cl:' now or
he:rea.f'ter Gxi,atinq a.t law or in equity or by I5tatute 0:1; otheniae
Mc'.rARR L!ASE
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SEP-l1-92 FRI 15:43
CITY OF SEWARD
FAX NO. 9072243248
P.OS
~hall not pr~elUde th. simultaneous or later exe~o1.e by C~y of
any or all other riqhi:$ or rellledie$ provided tor in this lease or
now Or thereafter existinq at law, or in equity or 1Jy st.a.t:.ut:e or
o1;harwil1'8.
j I NO d.lilJ.ilY or olllission t.o ue:rei_ any riqat or power
accruing' fOllowing an act of c!efaul t: shan impair any .uch. riqht. oX'
paWE or sball be tlOtUIlt.:rued to be .. waiver thereot, but any auc:h
right ilnt1 powAl:' 1I2.y ~ exaraised. fr01l\ time to time and as otten as
may lJ. l!eUlild expedient.
~J(!TdI 1D. ...S'tIPIM. 1tg)' 01' DB M" OJ" S1tDlm
The city IIhall enjoy tne "spec:;le.l. :d9h'tu ~ en~.r and 1ftOV8 the salt
to another portic:m of the Seward Karine !n4u.triaJ. cen'te:t' upon 5
4ays ~lt.t.en not:ice to laBel". !t 'tbe cit.y moves t.h8 D.odU1es under
the tenus of this art.:!.cle it: tahall be entiUed. to red.1v.
OClllpePBa'Uon in 'the 81110unt of actUal COStlS incurr" in tho 1l1QVe
p1uII an add1'tiona.l 2st tor admlll.1stration IInd pla.nn1ng. Tt.e lessee
~ll endeav01' to mOVR the salt within the five day notic:. period
if possible.
~\'YCL. 11.
INTI!lN'1'IONALLY LD"l' ar.ANX
Aa'l'IO!.B 12. - 8UBUlUI OIl ASSImIJIRIIflI
12 .1--Al!Idglllelt,t ot I..,:. of Sublell,!JIina. 'rhe part-iN
recognlao tha~ is leaSe has baen determined to be in the publ1g
interest by the oi1:1 COlmoU of the City of :seward. LESSE! may not
U.ign, sub1eaaa, or sub-tenant th1lil lease 01: any portioJ\ of the
leaaed land.
AM:rC1:.11 U. - :t.I!ISSBZ'S D1I'l!Y 'f() ~BnJlf) ("InWVlTl'1l'[
LiSSIE shall defend, indenmHy and hold CITY ha.rmless from ami
aqainst any and all liatlili ty or clai:ma arising from acts or
olllissions of any peJ:.'aon and of any nature whataoever occu.r.dnq on
o~ J:Qlat1nq to LESSO's operations u or use ot the site, caueinq
injUJ:Y to, or claat.h of persons, or loss of, or aiilUoqe ~o pl:'Cperly,
aM frOlll a.ny expense, ineludill9 attorneys fet.ls, in~:.l.deJ1t to the
detenae. of and. by CITY ~eretrClJl except: for old.s a:r;b!ng eu'\: of
the sola neql1g'lUlcs of the CITY, ita aqenta or employee5. zt lU1y
action or proceBdinq is brouqh1: against. Ll'lSSlSB by reason o~ any
such occurreno_. LESSEE shall prompUy notifY CITY in ~'ritin9 of
Guc:h act:Lgn en: proc;:ee4inq.
M'a'U1U\ LIAS!:
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SEP-ll-S2 FRI 15:44
CITY OF SEIoIARD
FAX NO. 8072243248
P. 10
AR~ZCLS 14. -- ~sURANCB
prior 'to commencement of occupation of 1:he liHiliili\d land.. LESSEE
.ba~l procure and maintain, at LESSER's sole co.t and ~xpense,
CC1dl.ucial qeneralliabil1ty insurance, wi1:h limits of liGilitY o~
'tWO KILLION AND NO/10C> (US $2,000,000) DOLLARS tor all injuries
and/or deaths result.inq to anyone penon ;md TWO MILLION DOLtAlUl
(US $2,000,000) limit fro!ll anyone gccurrence. The limit ot
liability for property dlUllllg8 lihall b. TWO MILLION AIm HO/loa (US
$2, 000 I 000) DOLLARS to~ each occurrence and il9CJregate. coverag-e
under S\1ch inIIuranoe shall abo incll.14e explosion, collllpse and
und~ound prope:r1:y damage hazards. Such insurance shall include
a blanket. conCrllctual liability end.orsement. Jlor nr.m-owned
wa'tercrl!1ft of LlSSD or its. customers any "watercraft exc~usion. in
the OO1Il.Ulercial li~ility il1!'Ourance policy shall be eli.:tiftat.ed.
prot&~ion and indemnity insurance shall be provided with the sam.
limits as 'the cODercial liability insuranee for the us. of r.,uSE!"
owned watercraft. LESSEB shall also p.t'QV1da fire aM ax1:4nded
coverage 1nliUrango for any buildings, equipment, machinery, vessel$
of cwat:ome2:'S or any other property &tDred or })elnq worked. on by
L!SSBE upon t.he leased. li!l.!'ld a't. replaceunt value n.ther than
original cost. %.ESSS! lihal1 provide Workmen's Compensation
Intlurance and. insurance und.a.r the Harbor Workers and x,ongaborem.en's
C!ompenaation Act., ;md "arehouse and 1IlOt.or vehicle insurance and. any
other insurance required under any permit or taritf of the cit.y of
saward, Alaska. 'the lIlinillUlni 1,1llountl!l and types of 1Jl&W:ance
provided by LESSEE shall be subject to revision in accorde.nc& ."i1:h
st.andard insunnce practices, in ordQr to provide ccnt.inuously
throughout. the term of t.his agreement and any extensions hereof. a
level o'f protect.1on Qonsonant wi1:h qood. business practice and
accepted. st.andards in the industry. SUch facmra .e inc:t'flases in
'the cosi:. at livlllf1, inflationary prassurea, and. other
con8iderat.ions, shall be utilized in assessinq whether the lIlUtimUllt
insur&nc;:e requirements should be increased. eI'l"l may not1 ty LESSE!
of 8l\Y reqUe.sted. !norea.ein insurance coverages.
. ,~- - - .,_. ....~.' "'"'
All insurance policies shall p:rovi(l.e. for thirty (30) days'
notice at cancellation and/or material chanqe t.o be sent to CITY at
t.he add.1:'el!ls designated in ARTICLE 38 of this. lease. All 8ugh
pOlicies shall be written by insurance companies leqally a'.1thorized
or licensed to do bueiness in 'the State of AlaslCa, ~nd a.:ceptable
to CITY (Best's :Rat.inq B+ 02: better). LESSEE shall furnish CITY,
on fen. supplied by CITY, certificat.es evidencing that it has
procured the insurance required herein p2:ic)t' to the QCg<J.pancy at
tbe laasad land 01' operation .by L2S5:8E. Haching h~ein dontained
llhall preVGl'lt LESSEE or CITY from placinq and maineainin9 at: CITY'.
or LBSSEB's own individual cost and expense, ackU.ticnal or other
insurance as ~y be desired.
All et the insurance policies required above as well as any
other insurance can'ied. by LESSEii or CITY shall pJ:'ov1de that. the
insurers waiva thei~ riqh~s Of Subrogation aqalnst CLTY t~ tESSEE
MCTARR LEASE 9
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SEP-IHJ2 FRI 15:45
CITY OF SEWARD
FAX NO. 9072243248
P.11
iLnc;l their respecti.ve c:lffi.Qers, servants, agents or employees.
LBSSEB furthe.r a.grees tg waive and agrees to have .it.s insurer&!
wa.ive any l:'1qn~fil ot su]:)rcgat..!on (Vhet.her Qy loat\ reC!oipt.$,
equ1tabla aaaignmant or othorwige), with respeot to deduotibles
under cuch pol1cies and wi tb resp42et to damage to equipment
inCludinq the loss of use tbereof, Whether insuxoed or not. LESS!E
shall also name CIll'! as an additional insured on th8 general
liabilit.y insurance policy maintained by LU5JilI!i as requirel,'l above,
exalw:liJl'l coveraqe tor clailllS resul tinq from CI'n '. sale
n~liljJ.nce. LESSEE shall provide CITY promptly and wit:hou;t; req\l.est
capi_ at all inllUranee binders and lJolicies UPOJl receipi: thereot
~y LlSSEE.
AIl'1':r~r.B 15. - OOWJUPm.I'3:01I
It all or any part of tlua leas@d. land. is Condel\N!! tor a
p'UbLic W!l@ by any qOVerru\lent aqancy or other duly aui:horuec1
entity, CJ:T'l I!Illd !..Ess:pl shall each make Ii claim aqllinst t:l1e
condemninq or 'takinq authorit.y for thle ..ount: of any dusa.g'8
inc:w:ncS by or don. to them respectively a.s is result of the tak:l.21q.
Noither I.ESSEE llOt' CITY ~haU. have any riqhts in or to A!'1Y award
ma4e t:.::. the other by the condellUling' aut:horit:Yl provilled, 1:ba.t in
the avant of II single a.wa.rd to CITl ..,hiob include. .peci:f1C! d81lla'9'el!l
fo~ loss Of LlSS8E's leasehold int6~.t:, CITY ahall t:~ansmit to
!.EiSa the am.ClI.1nt: of auah sP4lcific damaqa!:! so found, it allY.
It part, bUt: not all of the laued land is condennwCl fen:
public us., ~EE t!ll\all \llAU a g'ood faith de'termination as tel
whether or not. the 1:akUxi of the part of the lea56d land 4ea1gDilted
far condamnaticn will prevent if tram ccmtinuing' to operate on the
leasel! land. If IilSSSEE determines in qood fdth that: the
condemning o:f such part of the leased. land will prevent it t:rCllll.
coni:inuing' to operate on t:he leased. land, LeSSEE lU!ly not.tty cr'1"l in
writing 1:0 this .ftect, and ehilJ lease shall then ~ 1:arm1natacl fol"
a.ll purposes atfeo:ive fifteen (16) day. !rc. the date L!:SS1iiB sands
such not-ice to a:t'l'Y, OJ:' at. such oth.r.~a.te,r. date._M ~SEB shall
specify in its Mtice, and. sucll te1"'l!lination shal1 b. tJ:'Aatod. in the
same 1II.8.nnet' as II termination at the evpira.tion ot the term o~ this
1lilase. Ll!'SS!:E shall, as II cond.ition p%Qc8dent to such tet"lr!iml.t1on,
J:'ElIIlave all e.nCUllll:lrances, c1ebts and lien:ll 1:0 which the 1"'8$4 land
is subject. If at the time of ouch partial taking for P\llJlic use,
LESS!::! deterlll1nes 1:hat such partial tll.ldnq will net prf!lven-~ it. ~om
cantinuin'l t:o opercat.e, then LESS!E and CITY shall ne"ot.iate an
csquit.a.ble arul pa.r1;;!,al abatelllent Qf t.he rent. beg1lm1J:1g to be
.~feet.iv. on 'the actual /ta.te whe.n toBSSE:F: ilil effeotively prevell'tec!
trom utilizing 'the (:ondeJUled lan4.
~lllJ.'rm... 14 . -- Il:Pll.!:'J!RA!J!rOIII
Any dispute between CITY an4 Ll!:SSBE with r-.pect to any
MoTARR LlASE
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SEP-11-82 FRI 15:45
C I'N (F SEWARn
FAll NO. 9072243248
P. 12
prgYil!lion of this lease or the ~:i.ghts and oblig'l!ti:iDn/S of the
parties hereunder shall be decided by arbitraeion, in accordance
witb the prov1siDIls ot this paragraph.
Consent Panel. The party desiring arbitra'Cion of a
ctispute !Shall give written notice to that .fleat to -the O'thBr }7Brty
sPQcify:i.ng in such notioe the name and address of &I person to serve
as an U'.bitn.~ on its behalf. Within fifteen (15) day. ..ft.;-
Ncalp1: of suClb noCice the c1:her party shall qi va w.r:;l. ttoen not1C4l 'to
the f1rct party' specifyinq the noM and addrel!le of a par.on
de.ilpUlted ~ .ene a>> an 8.t:bitrat~ on its behlllf.
If nei~r party haa objectGd eo the ()~. deeic.J1\at1on
within fifteen (15) days or the notice by the second party ot it.
representative Qf. an arb1aatQr, than t.he two chose arbit.ra.t:01:'s
(OAl1e4 tb,e "consent panel") .hall seJ.ect a third porson agreeable
to both to became the third melllber of ~A consent panel, '.rhe
consent panel may utilize informal techni~es and hold in~ormal
hearing 1ritbcut ret~rtmCe or adherence to the rules or proced1n'es
of t:ha American 1.rbitrat:1Qn Aft5OC1ation. Prcmptly ancJ within
tllirt.y (~O) daya of conclwUnq any prQceedinq the consent panel
$hall render its vrit:t:en decision. It is the intent. 01. t:hi.
.uhp.~grapb to provide for a speec.iy and. inaxpens1ve r..ol'lt.lon of
disputes. p~idad the pa~ties aqree to su~ a procedUre,
Arb1t.ratdon A"'~' Any award shall be enforoealll. 11'1 ..Clt~orduc.
with Uasu. S'Catutes. Any award sllall. include aft award of cost.s,
interest tI.t1d attorney %ee8.
U!1'J:ClLl'l :I.,. -- HAIH'l'ElIUICf AND ~~
17.1--Norllla.l Maintenance. During tne entire 3:.'81lIillnin9 btt1I. of
1:1118 lea.. and ev.ry renewal or .xterusion hereof, 1I3SSEE shall, at:
L2SSEE's ~ole cost, risk andeKpensa; maintain 'the leased land,
inolud!nq any 11lIprOV'miiehts pllicea ~harBciri ~DY-twsD, i.rI. as good
condition lis ree.:Lvad. or constructed by L1!iSSBE, oriinary 'Wear and
t.ear excepted. CI'l'lt', a't CITY's so18 option and expense, may, p~d.ot"
to the ooameneeent. ot oons~ruct:1on by t.!SSEI, per-fon! uill1:enance
and preventative work on the leased land, exclusive of illlp%oveaantll
placed thereon by LESSEE, in order to pravent erosicn, mitiqate
l1ama.qe to plants and anb.als, or prepare the leased land for
eventual development by LESSl!:E or oi:hllrs ~ gradinq, filling or
contouring the 18Ued land. Any such work p!rfomed bY' aI'l'Y shall
be a't ern'a sole expense a.nd risk unless LESSEE agrees, in advance
and in writing, to share auch expanse and risk. LESSBE shall
preve.at the di8dl:1.1U:qe ot' any pclJ.utantlj to any public sewEr ay.tem
be::{ond. those for whiCh the syst81ll was c1eai.gned. LESSD shall
wu.nta:in in rus'!: cIa.1I c::ond!tion at all times all tire. pollution
and other prouctive ~ipmen't..
CITl may pedocHcally inspect 'the leased Jand a.nd
Ke1'AlUl LEASE
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SEP-11-92 FRI 15:46
CITY OF SEUARD
FAX 00. 9072243248
P.13
facilit:ies constructed t:he:reon in order to ascertain the condition
of the pub1ic port.ion of the premises but the exe.cise of this
riqht Shall not: 1lllply any oblig'atton to do so nor any ouliqf1t:lcll1 'to
do 80 in any pa:t:tioular way..
::I. 7 . 2--sate~ IssueR. CITY may notify LESSEE in wr1t:irbJ of any
clelic.1.one!u .in 'the partorllanr.:e of LESSEE's ma.ir1i:enanc8
~.spon.1bilit:.ies aa they relate to public health or safety and
LlfSSQ shall p~tJ.y wi thin thirty (30) 4aye Qf :receipt of such
notice ac;1vis. CITY 1n wrltiluJ of' its propo.1Id SChedule for
pGl'fonaftce of any wo:t'k necessary t:a our. such deficiencies.
If such d~iciencies ~elau 'to the 8~At:y of J~SSD's
operation such that the surroundinq land and port tac1u,t:i.. are
axpased to risk, unnecessary potential ~S&rd&, or a ~i.k to the
pubUa interest. (1lS c!istinguishad from a business risk) t or if c.Il!'Y
is not sai:1stied wi.th the propo88cl schec1Ule of repairs eit:hel'
becauee of the delays therein or the scope ot the repal~~, then
CITY may engage An independent enginee~ing conaulb.nt wellwverse4
ancl ~1"ienced. who shall fuJ;1\ish to CITY a com>rahenaiVQ survey
ana reporl: for the p~ose of establishinq- both t:l1e need and
Ul:9ency to porf'Or.lll. suoh main~lmance York. As .$oon ... pl'ae1:icable
follClw1ng reo$1p1: elf said enqin.ar's deten.inai:iOIlS and
recom1llendatiou, if thlil rlll'Or't requiree repair then L1!:SSB! ahall
pay the cost of tho report and puform .uch wol'k in aCII:30rdance
therewith at r.BsSEE/s Cotl1;, r~.k and expanaa.
17.3--Cos1o o'f R~p8.inz. ShOUld r,gSSEE: dispute 'the n.ecessity 01:
any D.llintenance wDrk as being necessary or advisabl.e or re."!sonllble
1:0 prat.ect the PUlllic: faciliti.. on the lBuacl land or on. adjacent
lanc.'l facUit.ies, it JI./ly submit the matteX' to arbitraticn; V.t'ovid.ed,
however, that. pendi.nq t:he decision of the arbit:r~tore it shall
fUlly comply with 'the :maintenance requests, J:t an aBl1:rat.ion
aW<U'd (whlOft shall inclUde costs, int.erest and at.torneys' fees)
should ultimatoly find that the repairs were not necessary then
LE8SE~ may Qi~h.r d.duct from fU~ure'~.ntal'pa~enta the cost of
such repail"s or be ~1l11burSled., ther.fQr.... __ .- .In.....-decidirlq whclt:hl!1'
repairs requested. hy CITY or req,uirllld by an enc.r:1neeriJlq rtI'port u'e
neges.suy i:he arbitration panel :1.5: to o;ive primary ccJl.9ide:nticn eo
'the .sat.-ty and. welfare of the sawaJ:'f:1
;Pori: tagllities and t.lllI citizens ot Seward 1=0 the highast standards
in the !nc!ustry.
If any faoility or setvice provided by CITY to tile leil5ed
land shall baCOIlle in.aQequa:t:e due to ghanqes 1n envuQmlICIntal
control 8t:and~ or Should any facility require updI.t.inq or
imp%ovement by reason of a change in Uf.:SSEE'. use ot the leued
land or gpe~.tions th.retrcm, LEaSEE shall either con.tr~ct sUch
improvements at L!SSU'i: own c:ost o. reimburse ~ft for SIle.b. work
at the opt.ion of CI'l'Y.
1rc'l'ARR LEASE
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SEP-ll-92 FRI 15:41
CITY OF SEWARD
FAX NO. 9072243248
P.14
:lR'l'I ctE 1 a.. -- RHVl:l!.ONlOlIn.'llL l!OJfCDiIJl]fIl
~8.1--KazardoU5 Mater1al~. ~l ccn4i~~~n or Site. LE&SEE ba~
had :full oppol'tunity to e:ll:lUIlinl; the site for the presence of any
KllZa:douli 1{a:tarial and. aCQept.s U6 eiu in "as i5" condi.tion;
however, pri,01:' Us t:he Qff~tiv8 date of t:bJ..8 lease, aaaliii may
a01l1pleta a baa. line _.eGsment of i:he lean s1te to :be !..t:t:llohed.
hereto as ~ibit B.
h) Relaa_ of" CITY. Any other provbion of th1s leasG
aqreement to t;he contrary notwi thatandinq, I..BSSEE rel..... e:t!1'Y
trom any and all claims, demands, penalt.ies, fines, judgDents,
liAbilities, settlement6, damllQes, costs or expenses (including,
"ithoUt U.mitat:ion, a~torneY'1jI fees, court coats, lit:1C]at10l1
expans.., anl1 COna,.ltllnt and expert fee..) arising durinq CIX' after
the tem ot 1:hia leae. aqrs$1IIent, and ruultd.l1C} troD the WI.,
keepin9, atorage or diasposal of HulU'dQUS Mat.rid on the sit6 by
L!iS5E'B, or 8t'iainq cut of or r.$\lLt:l.JlCJ frOlll L1!!SSB:I!lle opora\:ions _t.
t:ha liIi-te except ral: thOBIi arisinq out of the CrrY'S sOle neqli9'en~
or intentional 1Iliacanduct.. 'rhis rsh.ace U\eluda., wi~O\d:.
limitation, any and aU costs inm.n:rea dua to any investigatlon of
the .ite or any Cleanup, remOVal or restor_tien mandatGc1 by a
fe<l~l, state or loca.l 8.gency or polit.ieal aubdivia10n or. :by 18..\11
or regulation.
c) Use of Haz,:rdou~ Matl!lrill.ls on ~ si~e. 1, LESSD
$haU not caUJI.. or pemit any Hazardous Material U) be brouqht
upcn, kept or u..cl in Q~ about: thIS leased property except. ecr such
Hazardcus Ha~.riaL as i. neee88Ary t.o LlSS!B'. authoriz~ use of
th$ J.ea...d land.
ii) Any Hallardotl. Matedal per2llitted. en thll lond
land. as provided in this paraqraph, and llLl conu1nG:S 'thBrafcr.,
shall bel Wlod, kept, stored and disposad ol in a :IIalIlIer that
cOIIplies with all tnviromuan'toal Laws or other law or regu1a~on.
applioabl.e to such HaZardous Xaterial.
Hi) LESSEE shall not discba~e, leak or CIIIl1~, OJ:
permit to b. dischllrqed, leaked or emitted, any mate~ial into ~a
abo.phe%e, grou.nc1, ground water, 118WQr ay.t.em or any body of
wate:l:', it llIUQh ma.t.IG'ial (41it rea.sonably dQ1:lU'lI.inec! by the c.tty, or
any govQ:rnmen't.aJ. iilU1:horit:y) dces or m"y. pollut:e or c:ont.&minau the
sue, or .lIlay alive.ely atfeet 'the (a) health. welfare or sa.fety of
peX'SOhIl, whether located on the leas.d land or ol.aawb.e):e, or (b)
~h8 condition, use or anjo~ent of eha lease4 l&nl1 or any Qtb~
area cr per.eM.! pl"operty.
1V) LISsa beretly aqrees -chat. it flhall be
fully liable tor 411.11 eo.ts ;m4 expenu5 :related to Us use, ai:01'age
and. d!spo.al of KazardoU5 Xatedd kept: or b1:ought on the leased
land by LESSEE, its authorizGd rllpresentat;i.v8s and invitee., and
asse shall vive immec.iiat:e naticQ 'too CITY or any viola:t1on 0:1:'
keTA1Ul uft~
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SEP-ll-S2 FRl 15;48
CITY OF SEWARD
FAX NO. 9072243248
P.IS
potential violation of the provisions of this l!lUbparagra.p1:l.
d) Indemnit'ication of CITY. 4l.ny other provision of this
lea.se aq~eement to the aon1:.'l:'ary l'1otwlths:t:andirlq, LESS1U .lulll
defend, :l.ndemnity ..rni hold CITY narmle~s UQlIt ana AiUll$t any
c1aa., 4eman4s, penalt:iea, fines, jUdgments, liab1.Utiu,
a.ttlu.nte, c:tamaq.., co.ta, or expenses (including, without:
liaitation, atto2:'n8yo, consulta.nt and el!p(lrt; reas, court costs and
lit.igat.ion expenses) af ~hatever kind or nll.ture, known or unImOlll1\,
cont:.in'l8nt or o1:h.niae, arbint] out. gf or in Any w~y relllted to
(1) the presBl'le4!l, d1spoaal, relsa8e, or three:tened relea..e o~ any
iiuch Rilzardaus xat.rial which 15 on, fr01ll or affecting the leased
land, soil, water, qround water, vell.tat-ion, hl1ildingl!l, pe:t'lIona.l
p~ol*~t.}, persons, animals, or othel'Wise, Cii) IUIY peri;oaal iIljury
(inoluc!i1H.i wrongful d.eath) or propClYt.y da1ll8.g& (real or personal)
arisinq our of or l"elated to SUch Hazardous Material r (iU) any
la.w~t1!:t In:ought. o~ threatened, ~ettle1llent reached or gcve1'!l1l.8nt
oJ:der re1a:t:inq tc:l SU~ Hanrdous Material] and OJ:' (iv) any
violat:lon of any lawa appliCable theretoj provided, hawever, that:
this prov1$lon shall apply only if the act$ glvlnq rise to the
01.111115. demand., penalties, fines judp.nts, liabilities,
sett181ll.C!nta, damaqe., costs, or llxpenses Ca.) occur .in whO~8 or in
part d.udnq or after the term of this lease llqrcement.. ~nd. (b)
arise in whole or in part from the use ot, operAtions on, or
ll~tiviti.. on the lQaSGd ~and by L2SSR~ or its omploy.r.,
emplOYe.., aqentli, invitees, contractQrs. su))cQntractors Or'
author bed. repnaentat.ives. 'll18 prOVisions of thi. subparagraph
shall be in addition to AnY other Obligations and liabilities
LESSD may have to City ..t law or IilqQity and shall survive the
transaet.ionlii cont.eu.plated herein and shall aurvive the blndnation
at this lease agrooment.
e) PaeHity o,parattor. POl' a.ll purposes, LESSB1!l shall be
aeemed the operator of any :l.'aeility a.t: the leased land.
:t:) ilazardoua 1l8~A1"ial defintil. Al!I U$4lQ in tDla lease
aqreem.ent Ha.z:nd.OWi ka_ter1.al i5..any _I$Ubstanca...vhic:h ia eo1do,
ignitable, reactive, or corrosiva or which is; t'$c;Nlated. by auy
!nv1rcmmental lMlw. Hazardous Mat::erial u,elud.. any anI! all
mate:oill1 OJ:' INbstanceII which are defined. as "hazardous wasta,.
"axtramely hazarc:loWl waste" or IS "hazardous sUl:Istance" '\U\aer any
I:r1V1romD$n1:al t.aw. N01;vi~hstandinq any st:aeuto:ry petroleWll
excluaiCln, :for the. purpcees of this leaSe aqreement the t:er1\l.
Hazardous Hat.erial include., without. It.itation, petroleum,
inclUding erualll oil C1%' 2lny fraction thenQf, pett'oleum soaked
a1:lsorbent: Material <<nd othel:' petro3.euJI waste..
q) EnviJ;:olW",nt:.al law dB(:j,uWi- As used in this .1BAse
~._Qnt .Envircmmenta1 :taws inelUdtl any I.nd all local st:ate anI!
federal ol"d1nanc::es, st.at:ut.elS, and re9\lla1:1onll, a.s now 1n force or
&11 m~y 1:1. cmended troll t111111 to t:.ime, ~lating to tba proteo1:.ion 0:1.'
hWllaJl health And 'the environment, as well as any j~en1:s, or4ers,
"c'l'ARR LBASE
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CITY OF SEWARD, ALASKA
RESOLUTION NO. 92-157
A TIEST:
APPROVED AS TO FORM:
Perkins Coie, Attorneys for the city of
Seward, Alaska
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(City Seal)
2{ XI 4-.
Fred B. Arvidson
City Attorney