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HomeMy WebLinkAboutRes2000-020 I I I Sponsored By: Janke CITY OF SEWARD, ALASKA RESOLUTION NO. 2000-020 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, AUTHORIZING THE AMENDMENT OF GROUND LEASE BETWEEN THE CITY OF SEWARD, ALASKA, AND ICICLE SEAFOODS, INC., CONTRACT NO. RE-73-071 WHEREAS, on July 11, 1988, the City of Seward ("City") entered into a lease agreement with Icicle Seafoods, Inc. ("Lessee"), consolidating four separate long term leases, all entered into on October 1, 1973; and WHEREAS, in addition to consolidating the several leases into one lease agreement, the parties entered into a new lease to accommodate the Lessee's desire to expand its processing plant and to accommodate additional processing capabilities; and WHEREAS, on June 8, 1989, the parties entered into Lease Amendment NO.1 substituting a new legal description for the leased land following a replat of the leased land and establishing the date of January, 1995, and every fifth (5th) year thereafter, for appraising and adjusting the fair market rental value of the leased land; and WHEREAS, the parties desire to enter into Lease Amendment NO.2 to reflect a more recent replat of the lease site, to make technical corrections to the lease, and to provide for rent payment credits for production and employment effective January 1, 1999; and WHEREAS, the rent payment credits are to be an incentive to the Lessee to further expand production at its facilities and to maintain and increase employment opportunities within the City in the seafood processing industry; and WHEREAS, the lease amendment is also intended to encourage increased fish processing and employment at Lessee's facility, which may increase fish tax receipts for the additional fisheries resources processed within the City and provide other economic benefits to the community; and WHEREAS, it is in the public interest to promote continued and increased employment of persons in the seafood processing industry because it will promote economic stability and economic growth within the City and benefit the community through job growth and other related economic impacts; and WHEREAS, the rent payment credits are limited in amount and are only available after certain base levels of production or employment have been met; and CITY OF SEWARD, ALASKA RESOLUTION 2000-020 WHEREAS, the regular rent will continue to be adjusted at five-year intervals to fair market rental value; and WHEREAS, to the extent that in any given year the application of rent credits may reduce the rent actually paid to below the fair market rental value established for the lease, the City finds that it is in the public interest to provide for such rent credits because of the economic benefits and other public benefits to the community which may result from the increased production and employment in the seafood processing industry within the community. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, that: Section 1. Lease Amendment No.2, relating to that certain lease between the City and Lessee dated July 11, 1988, known as RE-73-071, is hereby approved in substantial form as set forth in Exhibit A attached hereto and incorporated by reference. Section 2. For the reasons set forth in the recitals hereof, which are hereby incorporated by reference, and for the reasons set forth below, the City Council finds that it is in the public interest to amend the lease in the manner described in this resolution, including providing for rent payment credits for production and employment at the leased lands. Furthermore, the City Council finds that the lease amendment is in the public interest because it may promote economic stability and growth in the community. To the extent that the application of rent credits causes the actual rent paid in any given year to be less than the fair market rental value, the City Council finds that there are sufficient public benefits flowing from the increased production and employment to justify net rental payments ofless than fair market rental value for the leased land. Section 3. The City Manager is authorized to sign the lease amendment in substantial form as attached hereto, to record a lease memorandum to reflect such amendment, and to make such changes to the attached lease amendment as necessary to finalize lease amendment between the parties but without changing the substantive terms as described in the attached lease amendment. Section 4. This resolution shall take effect thirty days after passage and posting as required by the City Code. PASSED AND APPROVED by the City Council of the City of Seward, Alaska, this 28th day of February, 2000. I I I CITY OF SEWARD, ALASKA RESOLUTION 2000-020 AYES NOES: ABSENT: ABSTAIN: ATTEST: THE CITY OF SEWARD, ALASKA l L-. /S L-,- 4 u Edgar Blatchford, Mayor Blatchford, Brossow, Calhoon, King, Shafer None Clark, Orr None ~LA:'7' "Patrick Reilly City Clerk (City Sean "IU" "i' It" ~"", Of SEW..o'::', ~.. ~~ ..............~.o ~ $ C1jF.... ~Ofl.1i:;.:-.. ~ I ~.. : . ......- \:,. = : E"T- i.~ - . : S J:\...I.-I : ~ . . . .. ':. \ ....- ! :' '\ "-" "~".~:- '$. ~~e 1 ,\~.., ,.:y_~ '"'-,,of,.,::.....l. ~v<J>"" --.., .~. OF ~ ",.. . ~f'.fI..""