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HomeMy WebLinkAboutRes1987-039 . . . Sponsored by: Garzini CITY OF SEWARD, ALASKA RESOLUTION NO. 87-039 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, AUTHORIZING A LONG-TERM LEASE OF BOARDWALK SITE #6 (BLOCK 6, OCEANVIEW SUBDIVISION) TO THE RESURRECTION BAY LIONS' CLUB WHEREAS, the Resurrection Bay Lions' years operated the Herring Shack, a business, for the purpose of raising charitable uses; and Club has for many bait and tackle funds for local WHEREAS, from time to time, the club has operated from two different buildings in two different locations with the understanding that when the boardwalk development progressed that the building would be moved to a permanent site on the boardwalk; and WHEREAS, the City has moved the Lions' Club building to Boardwalk Site #6 in order to make room for public restroom facilities on lands previously leased to the National Park Service. WHEREAS, provided the Lions' Club continues to own and operate the building as a business with funds going to civic charitable purposes, it is in the public interest to formal- ize a lease at less than fair market value for Boardwalk Site #6. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, that: Section 1. It is in the public interest to formalize a negotiated, less than fair market lease with the Resur- rection Bay Lions' Club for the operation of a bait and tackle shop for the purpose of generating revenues for local charitable and civic projects. Section 2. The City Manager is authorized to execute the attached lease, incorporated herewith by reference as a part of this resolution, for Boardwalk Site # 6 (Block 6, Oceanview Subdivision) to Resurrection Bay Lions' Club. Section 3. This resolution takes effect thirty (30) days after adoption. PASSED AND APPROVED BY THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, this 8th day of June , 1987. -1- . . . CITY OF SEWARD, ALASKA RESOLUTION NO. 87-039 AYES: NOES: ABSENT: ABSTAIN: ATTEST: THE CITY OF SEWARD, ALASKA BOOHER, DUNHAM, GIESELER, HILTON, MEEHAN, NOLL & SIMUTIS NONE NONE NONE (City Seal) APPROVED AS TO FORM: HUGHES, THORSNESS, GANTZ, POWELL & BRUNDIN, Attorneys for the City of Seward, AK ?~N~ Fred B. Arvidson City Attorney -2- . . . LEASE AGREEMENT This 1\greenent made and entered into this day of , 1987, by and between the CITY OF SEWARD, a hone rule rmmicipal corporation located in the Kenai Peninsula Bor- ough, State of Alaska, hereinafter referred to as "City" and RESURREX:TIeN BAY LIeNS' CLUB, hereinafter referred to as "Lessee". WIT N E SSE T H: WHEREAS, City and Lessee are rrutually interested in the developrent of harbor related facilities in the Small Boat Harbor area within the City of Seward, Alaska; and Ii WHEREAS, Lessee has dem:>nstrated to City for a number of years its carrnitrrent to its ccmrercial waterfront visitor-related business; and WHEREAS, City, as expressed rrore fully in City Council Resolu- tion No. , has detennined that Lessee's intentions and general ., i developrent plans coincide with the public interest of the City and will provide increased tax revenues and rental incare to the City; and WHEREAS, City and Lessee have reached agreenent on the land City is to lease to Lessee, the general tenns and conditions of such a lease; FOR AND m OONSIDERATION OF THE RENTS, CXJVENANTS, AND CON- DITIONS HEREm CONTAINED, CITY AND LESSEE AGREE AS FOLIruS: ARI'ICLE 1. DEMISE. City leases to Lessee, and Lessee leases fran the City that certain real property herein called "Leased Land", situated in Seward, Alaska, consisting of approximately 900 square feet, -1- as shown on Exhibit "A" attached hereto and as IIDre particularly de- scribed as follows: Camercial Lease Site No. 6 imnediately adj acent to the Seward Srrall Boat Harbor Boardwalk between "B" and "D" Ranps. The Site is within Block 6, Oceanview Subdivision. ARl'ICLE II. CITY'S WARRANTY OF QUIET ENJOYMENT. Lessee, upon paying the rent and other charges herein provided for and observing and keeping the covenants, conditions and tenns of this Lease on Lessee's part to be kept or perfonred, shall peacefully and quietly enjoy pos- session of the Leased Land during the term of this Lease without hin- drance by, fran or through City, subject, however, to any enCtllTbrances created. or caused by Lessee. ARl'ICLE III. LEASED lAND ~l'W "AS IS". Lessee acknowl- edges that he has inspected the Leased Land and accepts the sarre "as is" and without reliance on any representations or warranties of City, or agents of City, as to the physical condition thereof, except as express- ly herein provided. ARl'ICLE rv. USE OF LEASED lAND. 1. Lessee may use the Leased Land for the construction and operation of a bait and tackle shop. Lessee understands that operation of such a facility is a major consideration for City's agreerrent to lease the Leased Land. Lessee agrees that he will not operate any other business on the Leased Land without the consent of the City. MJreover, City may withhold its consent as to any proposed business or activity which, in City's sole discretion, is not desirable or corrpatible with the City's Small Boat Harbor area. -2- 2. No assignm:mt or sublease shall be pennitted unless approved in writing by the City. Nrj sublease shall be expressly subject and subordinate to this lease and the rights of the City here- under. The City nay elect to not approve any proposed assignm:mt or . sublease which nay result in a business or activity which, in the City's sole discretion, is not desirable or c:onpatible with the City's S!l'all Boat Harbor area. ARrICLE V. LEASE TERM. 1. Cormencerrent and Expiration. The term of this Lease shall be ten (10) years, ccmrencing on , and ending 2. ~tions and Extensions. There is a renewal option for . i i Lessee to extend this lease for an additional three (3) year period, but by inaction of the parties, the lease shall be deerred to continue from 1 .: rronth to rronth. This lease will not terminate until notice in writing is given by either party to the other, not later than three rronths prior ~ I ! to the expiration of the lease term. ,i 3. Holdover. If Lessee shall hold over after the expiration of the Lease Term, such tenancy shall be from rronth to rronth on all the terms, covenants and conditions of this Lease. 4. Surrender of Possession. (a) Subject to the provisions of Article XI belcw with respect to restoration of buildings and irrproverrents, upon expi- ration of the Lease Term, whether by lapse of tine or otherwise, Lessee shall pronptly and peacefully surrender the Leased Land. (b) Upon the expiration of the Lease Term or any sooner . i '. termination of this Lease, Lessee agrees to execute, ackncwledge -3- 'I :1 and deliver to City a proper instruIrent in writing, releasing and quit-claiming to the City all right, title and interest of lessee in and to the leased Land and all i.rrproverrents thereto not rerroved by lessee as provided herein. ARI'ICLE VI. RENT. The rental for the leased Land shall be detennined and paid as follows: 1. Any and all annual rental due under this lease shall be paid in advance upon COllIlEncenent of this lease in quarterly installrrents with the first due on or before COllIlEncenent of this lease and on or before successive quarters beginning January 1, March 1, July 1, and October 1, except as otherwise provided. 2. The rental shall be detennined as follows: (a) The lease rate shall be per annum. (b) Should the City and lessee IIUltually agree to extend the lease, not less than ninety (90) days prior to the expiration of the lease the City, at its own expense, may errploy an indepen- dent appraiser to detennine the fair rrarket rental value of the leased Land at the highest and best use of the leased Land and without consideration of lessee I s intended use of the land unless that use is coincidentally the highest and best use of the Land. 3. Additional Rent and City I s Right to Cure lessee's De- faults. All costs and expenses which lessee assumes or agrees to pay pursuant to this lease or to any rrortgage or other enctmt>rance up:m the leased Land or lessee's leasehold interest shall at City's election be treated as additional rent and, in the event of nonpayrrent, City shall have all rights and rerredies herein provided for in the case of nonpay- ment of rent or of a breach of condition. If lessee shall default in -4- . rraking any payrrent required to be made by Lessee, or shall default in perfonning any term, covenant or condition of this Lease or of any such mortgage or other encunbrance on the part of Lessee to be perfo:rmed which shall involve the expenditure of rroney by Lessee, City at City's option may, but shall not be obligated to, make such payrrent or, on behalf of Lessee, expend such sum as may be necessary to perform and fulfill such term, covenant or condition, and any and all sums so expended by the City with interest thereon at the maxi.rmml rate under the " ~ i I laws of the State of Alaska from the date of such expenditure until I .: repaid, shall be (and shall be deerred to be) additional rent and shall I be repaid by Lessee to the City, on demand, but no such payrrent or expenditure by the City shall be deerred a waiver of Lessee's default nor shall it affect any other remedy of the City by reason of such default. . I I 4. Late payrrent Penalty. Rental payrrent due but not received by the due date shall be subject to a ten percent (10%) delin- quency fee plus one and one-half percent (1J.,%) siIrple interest per rronth until paid or the maximum permitted rate under Alaska law, whichever is higher. ARI'ICLE VII. TAXES AND ASSESSMENTS. 1. Lessee to Pay Taxes. Lessee agrees to pay prior to delinquency and directly to the taxing authorities in which the Leased Land is located all real property taxes (plus all personal property taxes on personalty situate on the Leased Land and placed thereon by Lessee or under Lessee's authority), sales taxes, or other business or use taxes levied or assessed upon or against the Leased Land or any irrproverrents thereon or Lessee's business during the Lease Term. Lessee . agrees to indemnify and hold City harmless frcm liability for any other -5- ! tax, charge, or asseSSl'lEIlt of any kind or nature. lessee shall, within sixty (60) days after any such tax asseSSl'lEIlt or other charge consti- tuting a lien on the leased Land shall becare due and payable, produce and exhibit to City satisfactory evidence of payrrent. 2. lessee to Pay AssesSl'lEIlts. lessee, during the lease tem, agrees to pay directly to the public authorities charged with collection thereof any and all asseSSl'lEIlts levied on the leased Land for a part of or all of the cost of any public work or inproverrent assessed according to benefit found by the levying authority to accrue therefrcrn to the leased Land, including any charges for anti-pollution, environ- mental, ecological or any other public pw:p:>ses. If an option is given to pay such asseSSl'lEIlt (s) in installllents, lessee may elect to pay the sane in installrrents, and in such case lessee shall be liable only for such installllents as shall accrue during the lease Tem. 3. Proration of Taxes and AssesSl'lEIlts. If lessee's abli- gation to pay taxes or assessrrents canrences or ends during a tax year, such obligation shall be appropriately prorated with City bearing the renaining cost (or its pro rata share) thereof. 4. Contest. lessee shall have the right to contest or ,I I . i review any tax, assesSl'lEIlt, levy, fee, water or sewer charges or rents, , , i ,I ,I , ji i I I I 'I I I :1 II ~ I !i or any other governrcental charges which lessee is obligated to pay. Such proceedings shall, if instituted, be conducted prorrptly at lessee's own expense and free frcrn all expense to City. Before instituting any such proceedings, lessee shall pay under protest such tax, assesSl'lEIlt, levy, fee, water or sewer rents or charges or any other governrcental charges, or shall furnish to City a surety =tpany bond in a corrpany acceptable to City, or other security reasonably satisfactory to City, -6- . . . sufficient to cover the arrount of the contested item or items with interest for the period which such proceedings may be reasonably ex- pected to take and costs securing the payrrent of such contested i tern or items and all interest and costs in connection therewith when finally determined. Notwithstanding the furnishing of any such bond or securi- ty, Lessee shall pay all such items at least twenty (20) days before the tine when the Leased Land or any part thereof might be forfeited. The legal proceedings herein refe=ed to shall include appropriate cer- tiorari proceedings and appeals frcm any orders and judgerrents therein, but all such proceedings shall be begun as soon as reasonably possible after the imposition or assessrrent of any contested items and shall be prosecuted to final adjudication with reasonable dispatch. In the event of any reduction, cancellation or discharge, Lessee shall pay the anount that shall be finally levied or assessed against the Leased land or adjudicated to be due and payable and, if there shall be any refund payable by the governrrental authority with respect thereto, Lessee shall be entitled to receive and retain the sane subject, h~ver, to appor- tionrrent as provided in Paragraph 3 above during the first and last years of the lease tem. City at City's option may, but shall not be obligated to, contest or review by legal proceedings or in such other manner as may be legal and at City's o.vn expense any tax, assessrrent, levy, fee, water or sewer rents or charges, or any other governrrental charge aforerrentioned, which shall not be contested or reviewed as aforesaid, and unless Lessee shall prOllptly join in such contest or review and pay all costs therein, the City shall be entitled to receive and retain any refund payable by the governrrental authority with respect thereof. -7- 5. lessee to Pay Utility Charges. lessee shall payor cause to be paid all charges for water, heat, gas, electricity, sewers, and any and all other utili ties used upon the leased Land throughout the lease tem, including any connection fees. ARI'ICLE VIII. CONSTRUCTIOO BY LESSEE. 1. lessee I s Right to Build--General Conditions. lessee shall have the right at any tirre and fran tirre to ti.rre during the lease tem to construct, maintain, alter, rerrodel, reconstruct, rebuild and replace building (s) and other :ircprovenent (s) on the leased Land, subject to approval of the City in conformity with the Snall Boat Harbor Master Plan and the follCMing conditions: (a) The cost of any construction, reconstruction, dem::>li tion, or of any change, alteration or ilrproverrents, shall be borne and paid for by lessee. I 11 :! ii '[ I I (b) The leased Land shall at all ti.rres be kept free of rrechanic' s, materia1rren 's, and any other liens, as hereinafter rrore specifically provided. (c) Any building contractors errployed by lessee or its sublessees shall be appropriately bonded for one hundred percent (100%) of the contract arrount (s) by use of perfoIll'aIlce and labor and material payrrent bonds in the custanary fom when cost of the work is over $10,000.00. Copies of all such bonds shall be fur- nished to the City prior to ccmrencerrent of construction. (d) lessee, upon ccmrencerrent of permissible building or construction activities on the leased Land, shall continue such activities through to c:onpletion with diligence and continuity. -8- (/ (el Comrencement of construction shall IlEan having . materials and labor on site. Camencerent of construction shall take place within 90 days of the signing of this Lease and construction shall I I ] :! be corrpleted within 90 days of camencerent of construction. ! ;1 I I Fquir:m;mt. 2. Lessee's OWnership of Trade Fixtures, Machinery and It is expressly understood and agreed that any and all trade fixtures, machinery and equiprrent of whatsoever nature at any tirre ! i constructed, placed or maintained upon any part of the Leased Land by I ] Lessee shall be and remain the property of Lessee or its tenants as their interests may appear and may be removed or replaced at any time during the lease term, provided Lessee or its tenants repair any and all damage to the Leased Land resulting frau such removal or replacerrent. " I 3. Lessee I s Right to Rerrove Irrproverrents and CMnership . , i Thereof. Lessee shall have the right to rerrove any buildings or im- proveIrents constructed or placed upon the Leased Land by Lessee prior to the expiration of the Lease. Any buildings or irrproverrents not rerroved prior to the expiration of the Lease shall becorre the property of the City without the payrrent of any conpensation to Lessee. ARl'ICLE IX. LIENS. 1. Prohibition of Liens on Fee or Leasehold Interest. Lessee shall not suffer or pennit any liens to be filed against the fee of the Leased land nor against Lessee's leasehold interest in the Leased Land nor against any buildings or irrprovements on the Leased Land by reason of any work, labor, services or materials supplied or cla:i1red to have . been supplied to Lessee or anyone holding the Leased Land or any part thereof through or under Lessee. -9- 'I 2. Penoval of Liens by lessee. If any lien shall be re- corded against the leased Land, or any inproverrents thereof, lessee shall cause the sarre to be rerroved, or, in the alternative, if lessee in good faith desires to contest the same, Lessee shall be privileged to do so, but in such case Lessee hereby agrees to provide a surety bond fran a surety licensed to do business in Alaska in a penal sum equal to one and one-half tiIres the arrount of the claim of lien, which bond shall guarantee the payrrent of the sum which the lien claimant has clailred, together with the lien cla.im:mt' s reasonable cost of suit in the action. Lessee further agrees to indeImify, defend, and save the City hannless fran all liability for damages occasioned thereby and shall, in the event of a judgerrent of foreclosure upon said lien, cause the sane to be discharged and rem::>ved prior to the execution of such judgerrent. ,1 I , 1 3. Notice of t-bn-Fesponsibility. The City may, as contem- plated by Alaska Statutes 34.35.065 (as now enacted or hereinafter anended) give notice of non-responsibility for any inproverrents con- structed or made by Lessee on the Leased Land. ARI'ICLE X. INDEMNITY. Except for claims arising out of acts caused by the negligence of the City or its representatives, Lessee agrees to protect, indermify, defend and save harmless the City from and against any and all liability arising fran acts or emissions of any nature whatsoever of Lessee I s officers, servants, employees, contrac- tors, tenants, agents or invitees causing injury to or death of persons or loss of or damage to property during the Lease Term, and fran any expense incident to defense of and by the City therefran. If any action or proceeding is brought against the City by reason of any such occur- rences, the City shall notify Lessee in writing of such action or -10- . . . proceeding, whereupon Lessee at Lessee I s expense Il\3.y elect to resist or defend such action or proceeding by counsel approved in writing by the City, such approval not to be withheld unreasonably. ,I ,I f( 'I I II 'I provide a certificate of insurance showing the City as co-insured in an I ARI'ICLE XI. INSURANCE AND RESTORATION. 1. Liability Insurance. Lessee, during the Lease Term, shall arrount of not less than $300,000 carprehensive general liability cover- I 'I Ii :1 age for premises operations, broad form property damage and personal injury. The minimum requirezrents in this section Il\3.y be increased from tine to tine by the City in accordance with customs and usage for carparable property in the Seward rretropolitan area. 2. Fire and Extended Coverage Insurance. Lessee, during the Lease Tenn, shall keep all buildings and improverrents insured at its expense against loss or damage by fire and such other risks as Il\3.y be included in the custanary form of broad form extended coverage (which may exclude earthquakes), in an arrount, over and al:xJve any deductibles in the governing policies, of not less than the unpaid balance (s) due under any existing deed (s) of trust or IlOrtgage (s) encurrbering the buildings or improvements or the City I S fees. 3. Blanket Insurance. Lessee may provide any insurance required by this Lease in the fonn of a blanket policy, provided Lessee furnishes evidence satisfactory to the City indicating the coverage thereunder is at least equal to the coverage obtainable under a separate policy covering the Leased Land only. 4. Additional Narred Insured; Rights of M:>rtgagees (Lenders); Waiver of Subrogation. All insurance policies required to be maintained by Lessee shall narre Lessee and the City as the insureds, as their -11- respective interests rray appear. All policies shall oontain an agree- rent by the insurers that such policies shall not be cancelled without at least thirty days' prior written notice to the City, and certificates or copies of all such insurance policies shall be furnished to the City prcrrptly after the issuance thereof. 5. Restoration of Buildings and Inproverrents. In the event of damage to or destruction of any of the buildings or inproverrents situated on the Leased Land, then frcm the insurance proceeds payable to Lessee, Lessee shall within ninety (90) days after payrrent of the insurance proceeds ccmrence restoration of the buildings and inprove- rrents to their oondition prior to such damage, provided, however, I II I I I I Alaska, as Lessee may designate, or with Lessee's rrortgagee of the I Lessee I s obligation to restore will be limited to the insurance proceeds available to Lessee. All such insurance proceeds shall be deposited and held in trust with such bank having offices in Seward and/or Anchorage, damaged property, and shall be rrade available to Lessee for its use in restoration or repair, as the case rray be, of any damage or destruction to the buildings and inproverrents on the Leased Land. The proceeds of insurance shall be paid out by such trustee or rrortgagee frcm tirte to tirte on certification of the person having supervision of the work that the arrount certified is being applied to the payrrent of the reasonable cost of such work. ARI'ICLE XII. CARE OF LEASED LAND, ACCESS OF THE CITY. 1. Care of Leased Land. Lessee at its CMIl oost and expense shall keep the entire Leased Land and all buildings and inproverrents which at any tirte rray be situated thereon in good, clean and tidy condition and repair during the Lease Term. -12- . . . I' " 2. Other Access Rights of the City. The City and its agents or representatives shall have the right to enter into and upon the Leased land during reasonable hours for the purpose of inspecting the Leased land and all buildings and irrprovenents thereon. 3. Avoidance of Prescriptive Rights. Lessee shall take such action as may be necessary to preserve the City's title and ownership of the Leased Land free and clear of any public or private rights of way, easerrents or other interests acx:ruired by prescriptive use or otherwise than as permitted under this Lease, including but not limited to the posting of thoroughfares, walkways and parking areas so as to preserve the right of private ownership therein and prevent any adverse rights thereto accruing through prescriptive use or otherwise than as permitted hereunder. ARI'ICLE XIII. COMPLIANCE WITH LAWS. :i " 1. Corrpliance with Laws. Lessee shall canply with all .'.: applicable laws, ordinances and regulations of duly constituted public authorities now or hereafter in any manner affecting the Leased Land or any buildings, structures or irrprovements situated thereon, whether or not any such laws, ordinances or regulations which may be hereafter enacted involve a change of policy on the part of the governmental body enacting the saIre. Lessee further agrees it will not permit any unlaw- ful occupation, business or trade to be conducted on said premises or any use to be made thereof contrary to any law, ordinance or regulation as aforesaid with respect thereto. 2. Contest. Lessee may by appropriate proceedings conducted at Lessee's own expense, contest in good faith the validity or enforce- ment of any law, ordinance or regulation, provided Lessee diligently -13- " ! p.1rsues such contest to a final detenni.nation by a court, departrrent or governrrental authority or body having jurisdiction thereof: provided that if the City nay becare liable in any nanner for damages, penalties, fines or costs by reason of lessee's failure to carply with any such law, ordinance or regulation during lessee I s contest thereof, then, as a condition precedent to the carrrencarent and continuation of such pro- ceedings, lessee shall funrish the City such bond with corporate surety as the City shall reasonably request to save hannless and indamify the City against liability for any such damages, penalties, fines or costs. At the option of the City, it nay at its expense contest the validity or enforcerrent of any such law, ordinance or regulation. ARI'ICLE XIV. lliINENI' IX:MAIN. 1. Interest of Parties in Condemnation. In the event the i I leased Land or any part thereof shall be taken for public purposes by i I condemnation as a result of any action or proceeding in eminent dorrain, I, i i or shall be transferred in lieu of condeImation to any authority enti- ,I I I tled to exercise the ~r of eminent domain, the interests of the City I and lessee in the award of consideration for such transfer and the effect of the taking or transfer upon this lease shall be as provided by , :: law. 'i In the event the extent of the taking makes irrpracticable the il I continued operation of the self service car wash, gas station and retail .1 I " , I I I I I merchandise facility, upon written notification by lessee this lease and all of the right, title and interest thereunder of lessee shall cease on the date title to such Land so taken or transferred vests in the con- deIming authority. , I i I I I I -14- . . . 'I ii I 2. Partial Taking--COntinuation of Lease. In the event the taking or transfer of a part of the Leased Land leaves the rerrainder of the Leased Land in such location and in such form, shape or size, or so accessible as to be effectively and practicably usable in the opinion of the Lessee and the City for the purpose of operation thereon of Lessee's business, this Lease shall terminate and end as to the portion of the Leased Land so taken or transferred as of the date title to such portion vests in the condemning authority and the condemning authority enters into possession but shall continue in full force and effect as to the portion of the Leased Land not so taken or transferred. ARl'ICLE~. ARBITRATICN. Any oontroversy or claim arising out of or relating to this Lease, or the breach thereof, shall be settled by arbitration in accordance with the Uniform Arbitration Act of Alaska, and judgerrent upon the award may be entered in any court having jurisdiction thereof. Any arbitration proceedings hereunder shall be held before a panel of three arbitrators in the City of Seward, Alaska, or with the consent of both parties in Anchorage, Alaska. ARl'ICLE ~I. DEFAULT AND REMEDIES. 1. Default and Termination. (a) If the rent or any other charge shall be in arrears for a period of thirty (30) days, or (b) If Lessee fails to take reasonable steps to keep and perform any of the covenants or conditions of this Lease within thirty (30) days after written notice of default, or (c) If Lessee files a voluntaIy petition in bankruptcy or for reorganization under the bankruptcy laws or is adjudged a bankrupt by a court of oornpetent jurisdiction, or -15- Ii (d) If Lessee makes an assigrurent for the benefit of its creditors, or (e) If a receiver is appointed by a court of c:orrpetent jurisdiction for Lessee's business and it be established in the receivership proceedings that Lessee is insolvent, or (f) If the leasehold interest hereunder is abandoned by Lessee, then City may at City's option at once without further notice to Lessee or any other person, terminate this Lease. Upon termination of this Lease as aforesaid, or at the expiration of this Lease and upon the termina- I ! I I I I II I tion of said Lease by its tenus, Lessee shall at once surrender pos- session of the Leased Land to the City and rerrove all Lessee's effects therefran and may rem:JVe all Lessee I s buildings and other iIrprovenents, and Lessee shall have no further rights hereunder or with respect to the Leased Land. If such possession be not imrediately surrendered, the City may forthwith enter into and upon and repossess the Leased Land and expel Lessee or those claiming under Lessee without being .deerned guilty in any manner of trespass and without prejudice to any rerredies which might otherwise be used for arrears of rent or preceding breach of covenant, and in such event Lessee expressly waives the service of notice of any intention so to terminate this Lease or to retake the Leased Land and waives service of any demand for payrrent of rent or for possession and for any and every other notice or demand prescribed by any law and hereby waives any claim for damages by reason of such repossession. 2. Reletting. At any tirre or from tiIre to tiIre after any such expiration or termination, the City may relet the Leased Land, or -16- . . . any part thereof, and any unleased buildings and inprovenents, for such tenn or terms (which nay be greater or less than the period which YlOUld otherwise have constituted the balance of the tenn of this lease) and on such conditions (which nay include concessions or free rents) as the City, in its discretion, nay determine and nay collect and receive the rents therefor. The City shall in no way be responsible or liable for i 'I any failure to relet the leased Land, or any part thereof, or for any failure to collect any rent due upon any such reletting. 3. Damages. No such expiration or termination of this lease shall relieve Lessee of its liability and obligations under this Lease, and such liability and obligations shall survive any such expiration or tennination. In the event of any expiration or termination, whether or not the Leased Land, or any part thereof, shall have been relet, Lessee shall pay to the City the net rent and all other charges required to be paid by Lessee up to the tine of such expiration or termination of this Lease, and thereafter Lessee, until the end of what would have been the tenn of this Lease in the absence of such expiration or termination, shall be liable to the City for, and shall pay to the City, as and for liquidated and agreed current damages for Lessee's default, il I (a) the equivalent of the arrount of the rent and charges which YlOUld be payable under this Lease by Lessee if this Lease were still in effect, less (b) The net proceeds received by the City fran leasing or reletting the Leased Land and inprovenents thereon after de- ducting all of City's expenses in connection with such leasing and reletting, including, without lllni tation, all repossession costs, -17- brokerage ccmnissions, legal expenses, reasonable attorneys' fees, alteration costs, and expenses of preparation for such reletting. Lessee shall pay such current damages (herein called "deficiency") to the City rronthly, and the City shall be entitled to recover fran Lessee each rronthly deficiency as the sane shall arise. At any tine after any such expiration or tennination, whether or not the City shall have collected any rronthly deficiencies as aforesaid, the City shall be I II 'I I i I i ! entitled to recover fran Lessee, and Lessee shall pay to the City, on demand, as and for liquidated and agreed final damages for Lessee's default, an arrount equal to the difference between all rent reserved hereunder for the unexpired portion of the Lease Tenn and the then fair and reasonable net rental value to the City of the Leased Land for the sarre period. In the conputation of such damages, the difference between an install1rent of rent becaning due hereunder after the date of tennina- tion and the fair and reasonable rental value to the City of the Leased Land for the period for which such installrrent was payable shall be discounted to the date of tennination at the rate of six percent (6%) per annum. If the Leased Land, or any part thereof, be leased or relet ii I I I by the City for the unexpired portion of the Lease Tenn, or any part thereof, before presentation of proof of such liquidated damages to any I court, ccmnission or tribunal, the artDunt of rent reserved upon such 'I I leasing or reletting shall be prim3. facie evidence of the fair and reasonable rental value for the part or the whole of the premises so leased or relet during the tem of the leasing or reletting. Nothing herein contained shall limit or prejudice the right of the City to prove and obtain as liquidated dam3.ges by reason of such termination an artDunt equal to the naxirm.1m allowed by any statute or rule of law in effect at -18- . . . the tine when, and governing the proceedings in which such damages are to be proved, whether or not such arrount be greater, equal to, or less than, the anount of the difference referred to above. 4. Accumulation of Femadies. Each right and rerredy of the City provided for in this Lease shall be cumulative and shall be in addi tion to every other right or rerredy provided for in this Lease or now or hereafter existing at law or in equity or by statute or other- wise, and the exercise or beginning of the exercise by the City of any one or IIDre of the rights or rerredies provided for in this Lease or now or hereafter existing at law or in equity or by statute or otherwise shall not preclude the sinultaneous or later exercise by the City of any I i. I i or all other rights or rerredies provided for in this Lease or now or hereafter existing at law or in equity or by statute or otherwise. 5. Appointrrent of Receiver. Upon the camencerrent of any suitor action by the City against Lessee pursuant to any rerredy avail- able to the City upon Lessee's default hereunder or at any tirre there- after and during the pendency of such suit or action, any court of corrpetent jurisdiction upon the application of the City may at once and without notice to Lessee, its successors or assigns, or any person or persons or tenant or tenants or IIDrtgagee or person claiming any securi- ty interest through Lessee, appoint a receiver to collect the rents and profits arising out of the Leased Land, the buildings and inprovernents thereon and the subleases pertaining thereto and apply such rents and profits to the payrrent and satisfaction of Lessee's obligations under this Lease, including without limitation the payrrent of the rent due the City hereunder, first deducting all proper charges and expenses attend- ing the execution of such trusts, and to have any balance rerraining held -19- ~ i " by such receiver for disposition in accordance with any judgerrent or decree entered therein or as may be fran tirre to tirre directed by said court. ARI'ICLE XVII. GENERAL PROVISIOiIS. 1. Estoppel Certificates. Either party shall at any tirre and fran tirre to tirre, upon not less than thirty days' prior written request by the other party, execute, acknowledge, and deliver to such party, or to its designee, a staterrent in writing certifying that this Lease is unarrended and in full force and effect (or, if there has been any arrendment thereof, that the sane is in full force and effect as arrended and stating the anendment or arrendments) , that there are no defaults existing (or, if there is any clairred. default, stating the nature and extent thereof); and stating the clates to which the rent and other charges have been paid in advance. It is expressly understood and agreed that any such staterrent delivered pursuant to this ,section may be relied upon by any prospective assignee or tenant of the Leasehold Estate, or estates, or Lessee or any prospective purchaser of the estate of the City, or any lender or prospective assignee of any lender on the security of the Leased Land or the fee estate, or any part thereof, and any third person. 2. Conditions and Covenants. All the provisions of this Lease shall be deemed as running with the Land, and shall be construed to be "conditions" as well as "covenants", as though the words specif- ically expressing or irrparting covenants and conditions were used in each separate provision. 3. No Waiver of Breach. No failure by either the City or Lessee to insist upon the strict performance by the other of any -20- ;1 ,I 'I . . . 'I " I covenant, agreerent, tenn or condition of this lease or to exercise any right or rerredy consequent upon a breach thereof, shall constitute a waiver of arrj such breach or of such covenant, agreerent, tem or condition. No waiver of any breach shall affect or alter this lease, but each and every covenant, condition, agreerent and tem of this lease shall continue in full force and effect with respect to any other then existing or subsequent breach. 4. TinE of Essence. TinE is of the essence of this lease and of each provision. 5. Carputation of TinE. The tinE in which any act provided by this lease is to be done is ccxrputed by excluding the first day and including the last, unless the last day is a Saturday, Sunday or a holiday, and then it is also excluded. The tem "holiday" shall rrean all holidays as defined by the statutes of Alaska. 6. Successors in Interest. Each and all of the covenants, conditions and restrictions in this lease shall inure to the benefit of and shall be binding IIp)Il the successors in interest of City and the authorized assignees, transferees, tenants, licensees and other succes- sors-in-interest of lessee. 1 I i I I :1 il ! i 1 I I I I I 7. Entire Agreerent. This lease contains the entire agree- mant of the parties with respect to the matters covered by this lease, and no other agreerrent, staterrent or pranise made by any party, or to any enployee, officer of agent of any party, which is not contained in this lease shall be binding or valid. 8. Governing Law. This lease shall be governed by, con- strued and enforced in accordance with the laws of the State of Alaska. -21- ,I II II II !I I I I ,I il I [, 9. Partial Invalidity. If any tenn, covenant, condition or provision of this Lease is held by a court of ccxrpetent jurisdiction to be invalid, void or unenforceable, the remainder of the provisions shall remain in full force and effect and shall in no way be affected, im- paired or invalidated. 10. Relationship of Parties. Nothing contained in this Lease shall be deeIred or construed by the parties or by any third person to create the relationship of principal and agent or of partnership or of joint venture or of any association between the City and Lessee; and neither the rrethod of corrputation of rent nor any other provisions contained in this Lease nor any acts of the parties, shall be Cl.eeIred to create any relationship between the City and Lessee other than the relationship of lessor and lessee. 11. Interpretation. The language in all parts of this Lease shall in all cases be silrpl y construed according to its fair rreaning and not strictly for or against the City or Lessee. Unless otherwise provided in this Lease, or unless the context otherwise requires, the , : I follONing rules of construction shall apply to this Lease: (a) Number and Gender. In this Lease, the neuter gender I : ! includes the Il'asculine and the feminine, and the singular number .' j includes the plural; the word "person" includes corporation, partnership, finn or association wherever the context so requires. (b) Mandatory and Permissive. "Shall", "will" and "agrees" are mandatory; "Il'ay" is permissive. (c) Captions. Captions of the Articles, Sections and subsections of this Lease are for convenience and reference only, and the words contained therein shall in no way be held to explain, -22- . . . " " rrodify, arrplify or aid in the interpretation, construction or rreaning of the provisions of this Lease. 12. Atoondrrent. This lease is not subject to arrendrrent except in writing executed by all parties hereto. 13 (a). Delivery of Notices and Pent-~thod and Tine. All notices, demands or requests fran one party to another shall be de- livered in person or be sent by nail, certified or registered, postage prepaid, to the addresses stated in this Section, and shall be deemed to have been given at the time of delivery or making. 13 (b) . Paynent of Pent. All rents and other stmIS payable by lessee to the City shall be by check, payable to the City, delivered in person or nailed to the City at the follCMing address: City Clerk Ci ty of Seward PO Box 167 Seward, AI< 99664 I II II I and shall be deemed to have been paid when received at such address. 13 (c) . Notices to the City. All notices, demands and requests from Lessee to the City shall be given to the City at: City Clerk City of Seward PO Box 167 Seward, AI< 99664 and to such other persons at such additional addresses as the City nay specify, but not exceeding four in the aggregate. 13(d). Notices to Lessee. All notices, demands or requests fran the City to Lessee shall be given to Lessee at: RESURRECl'IOO BAY LIONS' CLUB PO Box 1286 Seward, AI< 99664 -23- 13 (e) . Change of Address. Each party shall have the right, fran tine to tine, to designate a different address by notice given in confonnity with this Section. 14. Broker's Camri.ssion. Each of the parties represents and warrants that there are no claims for brokers' camd.ssions or finders' fees in connection with the execution of this Lease. 15. Attorneys' Fees. If either party hereto institutes any suit, action or arbitration proceeding to collect the rent reserved or to enforce any covenant or agreerrent hereof or to obtain any of the rerredi.es herein provided, the prevailing party shall be entitled to such sum of noney as the court or the arbitration board may adjudge reason- able as costs and attorneys' fees in such suit, action or arbitration i I proceeding, including any appeal taken by either party in such suit, action or arbitration proceeding. 16. Records. Lessee shall at all tines keep or cause to be kept proper books of record and account in which full, true and correct entries will be made of all dealings or transactions of or in relation to the Leased Land. 17. Minerals. Nothing in this Lease shall authorize Lessee to exercise any rights in regard to oil, oil rights, minerals, mineral rights, natural gas, natural gas rights, and/or other hydrocarbons by whatsoever narre that may be within or under the Leased Land. The City reserves the right to whipstock or directionally drill and mine fran land other than the Leased Land oil or gas wells, tunnels and shafts into, through or across the subsurface of the Leased Land, and to bottan such whipstocked or directionall y drilled wells, tunnels and shafts under and beneath or beyond the exterior limits thereof, and to redrill, -24- . . . !' retunnel, equip, maintain, repair, deepen and operate any such wells or mines, without, however, the right to disturb the use of the surface or to drill or mine through the upper 500 feet of the subsurface of the Leased Land. 18. Good Faith. The terms of this Lease ~se an obligation of good faith on the City and Lessee in the perfonnance and enforcenent thereof. 19. Election to Terminate by City. Lessee, as partial consideration for this Lease, expressly undertakes (1) to operate a bait and tackle shcp; (2) to cover the remainder of the lease site with a boardwalk connecting with adjacent sites and the City boardwalk; (3) to allow no outside storage on site; (4) to allow no overnight occupancy; (5) to operate said facility for a minimum of a 90-day period annually. If Lessee fails to rreet any of these requirerrents in a tiIrely manner, the City may, by giving written notice to Lessee, elect to terminate this Lease. All further rights, duties and obligations hereunder shall cease upon receipt by Lessee of such notice. 20. Election to Terminate by Lessee. If an ea.rtl'quake occurs during the tenn hereof, making the construction, financing, maintenance or operation of an illproverrent(s), building(s) or other structure(s) on the Leased Land illpractical or in;lermissible, then in such event, provided the Lessee be in good standing hereunder, the Lessee may, in its uncontrolled discretion, elect to terminate this Lease upon: (a) Giving written notice to the City; and (b) Making payrrent to the City of a sum equal to fifty percent (50%) of the rents payable to the City for the twelve calendar IlDnths imrediately preceding the notice under (a); and -25- " .i (c) Satisfying or otherwise releasing the City's fee fran any enCUllbrance(s) created as the result of Lessee's actions. All further rights, duties and obligations hereunder shall cease upon receipt by the City of such notice of election to tenninate and the fulfilling of conditions (b) and (c). 21. other Conditions. The City reserves the right to relo- I, cate the builling at City expense sOOuld .urn a move be neces""'Y to I accorrplish the overall Harbor Boardwalk Project. ARI'ICLE XVIII. ROCORDING, EXECUTION, CXlUNI'ERPARI'S. 1. Recording. The parties may, concurrently with the execution of this Lease, execute, acknowledge and record a rrercorandum of lease. Following recording, the rrercorandum lease shall be attached to this Lease. 2. Counterparts. This Lease has been executed by the parties in two counterparts, each of which shall be deened to be an original. 3. Execution. This Lease has been executed by the parties on the day and year first above written. . i LESSOR: Ii LESSEE: Ii THE CITY OF SEWARD, ALASKA ~: ~: PDnald A. Garzini, City Manager -26- ATI'EST: APPROlED As TO FO~: . HUGHES, 'lHORSNE'SS, GANl'Z, PaVELL & BRUNDIN, Attorneys for the City of Seward, Alaska Linda S. a.trphy, City Clerk IdN~ Fred B. Arvidson, City Attorney (City Seal) STATE OF ALASKA ss. 'lHIRD JUDICIAL DISTRIcr THIS IS 'ill CERl'IFY that on this day of , 19 , before Ire, the undersigned, a Notary Public in and for the State of Alaska, duly oonmissioned and $\Orn as such, personally appeared , City rllanager of the City of Seward, known to Ire and to Ire known to be the person who executed the foregoing instrurrent on behalf of the City of Seward, and who acknowledged that he signed the SaIre freely and voluntarily for the uses and purposes therein oontained. . IN WI'rnESS WHEREX)F, I have hereunto set my hand and seal on the day and year first hereinabove written. NOl'ARy PUBLIC in and for Alaska My Ccmni.ssion Expires: STATE OF ALASKA ) ) SSe ) THIRD JUDICIAL DISTRIcr . THIS IS 'ill CERl'IFY that on this day of , 19_, before Ire, the undersigned, a Notary Public in and for the State of Alaska, duly COlllllissioned and $\Om as such, p:!rsonally appeared , known to Ire and to Ire known to be the person who executed the foregoing instrurrent, and who acknowledged that he signed the sarre freely and voluntarily for the uses and purposes therein oontained. -27- IN WITNESS WHERIDF, I have hereunto set my hand and seal on the day and year first hereinabove written. NOrARY PUBLIC in and for Alaska My Ccmnission Expires: -28- --------~ HARBOR - A. 2~ c( ~ cc p .1 1 \]0 N ~'4<;.j::' \ \ 'u .., ./ \ cl \ l . . . j I ~ (). 17 10 zo 30 40 50 .0 10 "0 9'IJ SCALE 1-.20" \ \ SEWARD SMALL BOAT HARDe I> BOARDW ALK L~SE SITES . - -