HomeMy WebLinkAboutRes1998-070
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Sponsored by: Janke
CITY OF SEWARD, ALASKA
RESOLUTION NO. 98-070
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD,
ALASKA, AUTHORIZING THE CITY MANAGER TO EXECUTE
AMENDMENT NO.2 TO LEASE NO. 88-067, LOT 1, BLOCK 10, FOURTH
OF JULY CREEK SUBDIVISION, SEWARD MARINE INDUSTRIAL
CENTER, BETWEEN THE CITY OF SEWARD AND GCI CABLE, INC. TO
EXTEND THE LEASE TERM FOR AN ADDITIONAL TEN YEARS,
ADJUSTING THE LEASE RATE AND ESTABLISHING A FIVE-YEAR
APPRAISAL SCHEDULE AS REQUIRED BY SEWARD CITY CODE
7.05.150
WHEREAS, the City of Seward entered into a lease agreement with GCI Cable, Inc. for a
parcel ofland located in the Seward Marine Industrial Center for the operation of a satellite receiving
station; and
WHEREAS, GCI Cable, Inc. has requested an amendment to extend the lease term for an
additional ten year period in accordance with the terms of the lease; and
WHEREAS, in addition to an extension of the lease term, the lease rate will also be
amended; and
WHEREAS, the lease rate will increase from $420.00 per annum (based on the 1995 City
appraisal) to $544.00 per annum based on the Kenai Peninsula Borough Assessing Office appraisal
of $6,800; and
WHEREAS, the lease rental adjustment section of the lease amendment will also be
amended to bring the lease into accordance with the City's five-year appraisal schedule required by
SCC 7.05.150; and
WHEREAS, the late payment charge is being amended to bring this lease into conformance
with city policy; and
WHEREAS, the interest rate in the original lease was 12% per annum, and the new rate is
10.5% per annum plus a flat monthly late fee of $2.50;
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF SEWARD, ALASKA, that:
CITY OF SEWARD, ALASKA
RESOLUTION NO. 98-070
Section 1. The City Council hereby approves Resolution No. 98-070, authorizing the City
Manager to execute the attached Amendment No.2 to Lease No. 88-067 between the City of Seward
and GCI Cable, Inc., extending the lease term for an additional ten years, adjusting the lease rate and
establishing a five-year appraisal schedule required by Seward City Code 7.05.150.
Section 2. 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 ofJune, 1998.
THE CITY OF SEWARD, ALASKA
~KJ;t;)
Lowell R. Satin, Mayor
AYES:
NOES:
ABSENT:
ABSTAIN:
Blatchford, Callahan, Clark, Gage, King, Orr, Satin
None
None
None
ATTEST:
~
Patrick R pillal",
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LEASE AMENDMENT NO.2
(RE-88-067)
THE CITY OF SEWARD, ALASKA, a home rule municipal corporation, organized and existing under the laws
of the State of Alaska, hereinafter referred to as "CITY", and GCI CABLE, INC., 2550 Denali St., Suite 1000,
Anchorage, Alaska 99503, hereinafter referred to as "LESSEE", hereby agree that the lease agreement 88-067 is amended
to read as follows:
ITEM 1.
ARTICLE V. LEASE TERM.
Commencement and Expiration. The term of this lease shall be ten (10) years, commencing the 23rd day
of June, 1988, and ending the 22nd day of June, 1998.
In accordance with ARTICLE V.2, the term of this lease shall be extended for a period of ten (10) years
to commence June 23, 1998 and end June 22, 2008.
ITEM 2.
ARTICLE VI.
RENT.
2. (a) Beginning June 23, 1998, the lease rate shall be $544.00 per annum, through June 30, 2000,
based on the Kenai Peninsula Borough Assessing Office appraisal of $6,800.00. Beginning July
1, 2000, and thereafter, the lease rate shall be subject to adjustment as set forth below.
(b) Rental Adjustments. The annual rental payment shall be adjusted on July 1,2000, and on the
same date every five years thereafter (each a "Rental Adjustment Date"). The adjusted annual
rental payment to be paid under the terms of this Lease shall be eight percent (8 %) of the
appraised Fair Market Value of the Lease Site at the highest and best use of the Lease Site.
CITY shall, at its own expense, retain an independent MAl-certified appraiser, who shall
determine the "Fair Market Value" of the Lease Site, exclusive of improvements placed thereon
by LESSEE but inclusive of all improvements made by CITY (including those made before or
subsequent to this Lease). The highest and best use of the Lease Site shall be determined
without regard to LESSEE's intended or actual use of the Lease Site unless that use is
coincidentally the highest and best use of the Lease Site. CITY shall complete such appraisal
and deliver a copy of the appraisal report to LESSEE not less than ninety (90) days before each
Rental Adjustment Date.
(c) Procedure for Rental Adjustment. To adjust the rent as of any successive Rental Adjustment
Date, CITY may at its own expense, retain an independent MAl-certified appraiser who shall
determine the adjusted annual rental rate at eight percent (8%) of the Fair Market Value of the
Lease Site in accordance with Section 3.2 The appraiser's report shall be delivered to LESSEE
not less than ninety (90) days before the Rental Adjustment Date. The appraiser's determination
of Fair Market Value of the Lease Site shall constitute a final binding determination of the Fair
Market Value and the adjusted annual rental rate until the next Rental Adjustment Date, unless
LESSEE gives notice of objection. If LESSEE objects to the appraiser's determination of the
Fair Market Value, LESSEE shall give written notice to CITY of its objection within thirty (30)
days of receipt of the appraiser's report, and LESSEE shall then engage a second independent
MAl-certified appraiser at LESSEE's expense to make a second appraisal of the Fair Market
Value in accordance with Section 3.2.
If the second appraisal determines a Fair Market Value that varies from that determined by the
first appraisal by no more than twenty percent (20%), then the adjusted rental rate shall be the
average of the rental rates determined by the appraisals. If the second appraisal determines a
Fair Market Value that varies from the first appraisal by more than twenty percent (20%), then,
unless CITY and LESSEE agree on a rate themselves, the Fair Market Value and the adjusted
LEASE AMENDMENT NO.2 (88-067)
Page I
annual rental rate of the Lease Site shall be detennined in accordance with the arbitration
provisions contained in Article 19 of this Lease.
(d) Effect of Late Appraisal by CITY. If, for any reason, CITY does not complete the appraisal or
deliver a copy of the appraisal report to the LESSEE ninety (90) days before the Rental
Adjustment Date, CITY may proceed to complete the appraisal or deliver a copy of the appraisal
report to LESSEE at any time thereafter. However, any such adjusted annual rental rate shall not
be effective until the quarterly payment due date immediately following the date CITY delivers
the appraisal report to LESSEE.
(e) Appraisal by LESSEE. If for any particular Rental Adjustment Date, CITY fails to obtain an
appraisal of the Fair Market Value or fails to deliver the appraisal report to the LESSEE by the
Rental Adjustment Date, LESSEE may engage an independent MAl-certified appraiser at
LESSEE's expense to make an appraisal under the tenns of Sections 3.2 and 3.3 and submit a
copy to CITY before the next quarterly rental payment due date. However, LESSEE must notify
CITY in writing within thirty (30) days following the Rental Adjustment Date of LESSEE's
election to obtain an appraisal. If CITY objects to the appraiser's detennination of the Fair
Market Value, CITY shall give written notice to LESSEE of its objection within thirty (30) days
of receipt of the appraiser's report, and CITY shall then engage a second independent MAI-
certified appraiser at CITY's expense to make a second appraisal of the Fair Market Value as of
the Rental Adjustment Date and in accordance with Section 3.2. If the second appraisal
detennines a Fair Market Value that varies from that detennined by the first appraisal by no
more than twenty percent (20%), then the adjusted rental rate shall be the average of the rental
rates determined by the two appraisals. If the second appraisal detennines a Fair Market Value
that varies from the first appraisal by more than twenty percent (20%), then, unless CITY and
LESSEE agree on a rate themselves, the Fair Market Value and the adjusted annual rental rate of
the Lease Site shall be detennined in accordance with the arbitration provisions contained in
Article 19 of this Lease.
(f) Effective Date of Adjusted Rental Rate. The adjusted annual rental rate established by this
Article 3 shall apply as of the Rental Adjustment Date if the CITY provided a copy of the
appraisal report to LESSEE ninety (90) days before the Rental Adjustment Date. If the adjusted
annual rental rate is based on CITY's late appraisal or late delivery of the appraisal report to
LESSEE, the adjusted rental rate shall be effective beginning with the quarterly rental payment
due date immediately following the date the CITY delivers the appraisal report to LESSEE.
Notwithstanding the above, the exercise by either CITY or LESSEE of the objection procedure
relating to rental adjustment described in Article 3 shall not postpone LESSEE's obligation to pay
rent at the rate established by CITY. LESSEE shall pay the amount of rent as established or
adjusted by CITY until the question of objection to the rental rate is finally resolved. At such
time the objection to the' rental rate is resolved, an appropJ;iate credit or adjustment shall be made
retroactive to the date the new rental rate was established by CITY or in cases where CITY
failed to obtain an appraisal or deliver the appraisal report to the LESSEE, to the Rental
Adjustment Date.
ITEM 3. Late Payment Charge. Rental payments not received by the due date shall bear interest until
paid at a rate of 10.5% per annum, or the maximum rate pennitted under Alaska law, whichever
is less, plus a flat monthly late fee of $2.50, or such amount as may be established from time to
time by city ordinance or resolution and relating to late fees for city leases generally.
In all other respects, the Lease is to remain unchanged and in full force between the undersigned parties.
IN WITNESS WHEREOF, the parties hereto have executed this document, and it is effective this _ day of
, 1998.
LEASE AMENDMENT NO.2 (88-067)
Page 2
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LESSOR:
LESSEE:
CITY OF SE'~KA
1/1.) . A. /
Scott Janke, City Manager
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THIRD JUDICIAL DISTRICT )
THIS IS TO CER'fIFY that on li!is /9 day of JIJ-Y1e. ,1998, before me, the undersigned, a Notary Public in and for
the State of Alaska, personally appeared.J( utT- \7i'-",-~e ,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 of the City of Seward for the uses and purposes therein set forth.
ATIEST:
SUBMITIED BY:
(City Seal)
STATE OF ALASKA
WITNESS my hand and notarial seal the day and year first hereinabove
~
oFFICIAl SEAL
Sill'/! l~rA"I.d'a
YVElTE G. WEL.S.H
Nc.1 ARv PUBI-IC
STATE OF ALASKA )
) ss.
THIRD JUDICIAL DISTRICT )
THIS IS TO CERTIFY tha!)/R this 19 day of friAi., 1998, before me, the undersigned, a Notary Public in and for the
State of Alaska, personally appear~-b "'..., ,(..1 ~.1 ~ of GCI Cable, Inc, authorized to execute documents on
behalf of the corporation, and is the individual named' in and who executed the foregoing document, and he acknowledged 10 me that he
executed the foregoing document for the uses and purposes therein set forth.
WITNESS my hand and notarial seal the day and year first hereinabove written.
Return to:
Harbormaster
City of Seward
PO Box 167
Seward, AK 99664
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LEASE AMENDMENT NO.2 (88-067)
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