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HomeMy WebLinkAboutRes1986-001 . . . . . CITY OF SEWARD, ALASKA RESOLUTION NO. 86-1 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, AUTHORIZING A SHORT TERN LEASE OF LAND WITIIIN THE SEWARD l1ARINE INDUSTRIAL CENI'ER AT LESS THAN FAIR MARKET VALUE 10 T. A. "RED" ARLEDGE OF RED AND DON'S PROPEILER SERVICE WHEREAS, the City has been actively pursuing the final devel- opment of the Seward l1arine Industrial Center as a marine service center; and WHEREAS, the proposed lessee wishes to establish a nnbile propeller repair service in support of the ship lift and other marine repair works in Seward; and WHEREAS, the City should finalize long tenn lease configura- tion for the industrial area within a few rronths; and WHEREAS, the City has no other inmediate use of the proposed lease site; and WHEREAS, the proposed lease operation is compatible with the planned uses within the marine industrial center; and WHEREAS, the small parcel of land involved and the short tenn of the lease make it impractical to expend funds on an appraisal of the property; NCM, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, that: Section 1. The short tenn lease negotiated by the City Manager in accordance with City Code Section 2-95 is approved and made a part of this resolution by reference. Section 2. This resolution shall take effect inmediately upon its adoption. Section 3. This resolution and referenced lease are subject to suspension during the first thirty days after passage of the resolu- tion if a sufficient referendary petition is filed in accordance with Section 4.8 of the City Charter. PASSED AND APPROVED BY THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, this 13th day of January , 19 86 . -1- . . . . . CITY OF SEWARD, ALASKA REsm~urION NO. 86-1 AYES: NOES: ABSENT : ABSTAIN : ATIEST: TIIE CITY OF SEWARD, ALASKA ~~I&~R BOOHER,GcrESELER. GILLESPIE, HILTON, MEEHAN, SCHOLL & SIMUTIS NONE NONE NONE APPROVED AS TO FORM: HUGHES, THORSNESS, GANl'Z, POWELL AND BRUNDIN, Attorneys for the City of Seward, Alaska (City Seal) Fr~~f!~ Attorney -2- . . . . LEASE AGREEMENT This Lease entered into on this 1st day of January . 19 86 . between the CITY OF SEWARD. the Lessor (hereinafter referred to as "The City"). and RED ARLEDGE. the Lessee. The Lessee has examined the description of the real property and has inspected it. or has voluntarily declined to do so. and is satisfied with the description and condition of it. The Lessee is aware of the provisions of applicable laws. regulations. and ordinances. and fully understands its duties and obl igations under this Lease and the rights and remedies of the City. . The City and the Lessee. in accordance with the provisions of this Lease. agree as follows: 1. The Leased Land. The City agrees to lease to the Lessee. and the Lessee agrees to lease from the City. the following real property (here- inafter referred to as "the Leased Land") which is located in the state of Alaska: An unsurveyed parcel of land 100 feet by 100 feet. located in the north central part of the Seward Marine Industrial Center. near the end of pavement for Nash Road and adj acent to the 1 ast power pol e. Al so shown on attached map Exhibit A. . CITY OF LEASE Page 2 SEWARD, _SKA . . 2. ~. on Aprll 30, 1986 Commencing January 1, 1986, and ending at midnight , this Lease shall not exceed four (4) month(s), unless sooner terminated by either party. 3. Rent. The Lessee shall pay the City the rent in advance, without demand, at the rate of ONE HUNDRED and NO/100 ($100.00) DOLLARS per month. The rent is payable at the City's address stated in Paragraph 22(A) of this Lease. 4. Use of Land. A. The Lessee must use and occupy the Leased Land in compliance with all applicable laws, regulations, ordinances and orders promulgated, or which may be promulgated, by a public authority, including those of a building or zoning authority and those relating to pollution and . sanitation control. The Lessee shall properly locate himself and his improvements on the Leased Land, and may not commit waste, whether amelio- rated or otherwise. In addition to any 1 aws, regul ations, ordi nances and orders, the Lessee shall maintain the Leased Land and all improvements I thereon in a reasonably neat and clean condition, and shall take all prudent precautions to prevent or suppress grass, brush, or forest fires, and to prevent erosion or destruction of the Leased Land. B. This land is leased to Lessee for the express purpose of installing a temporary, portable, van-mounted propellar repair facility to serve the maritime industry in the Seward area. . crTY OF LEASE Page 3 SEWARD'WSKA . . B. Lessee's RiQht to Build - General Conditions. Lessee shall not, at any time during the Lease term, erect, maintain, alter, remodel, reconstruct, rebu il d or rep 1 ace buil ding( s) and other improvement(s) on the Leased Land. (1) The Leased Land shall at all times be kept free of all mechanics' and materialsmen's liens. C. Lesse's Ownership of Trade Fixtures, Machinery and Equipment. All trade fixtures, machinery and equipment of whatsoever nature at any time constructed, pl aced or maintained upon any part of the Leased Land 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 . building or improvements resulting from such removal or repl acement, and such removal or replacement does not substantially and adversely affect the normal functioning of the contemplated building. 5. Reservation of Public Access. The Lessee agrees that it will not destroy or damage existing vegetation, water or wildlife habitat beyond , that damage necessitated by the Lessee's operations. The Lessee agrees to permit public access through the Leased Land as may be necessary. 6. Encumbrance of the Land. During the term of this Lease, the Lessee may not encumber the City's title to the Leased Land, nor enter into any lease, easement or other obl igation of the City's title without the . CITY OF LEASE Page 4 SEWARD, WSKA . . prior written approval of the City. Any such act, without the prior written approval of the City, is void as against the City's title to the Leased Land. 7. AssiQnment of the Land. The Lessee may not assign this Lease or sublet the Leased Land, and no assignment or subletting is effective without the prior written approval of the City. No assignment or subletting will be approved until the assigneee agrees to be subject to the provisions of this Lease in the same manner as the original Lessee. An assignment or subletting by the Lessee does not end the Lessee's obligation to pay the rent required for the full term of this lease. 8. Denial of Warranty ReQardinQ Conditions. The City makes no warranty, express or impl ied. of environmental values of the Leased Land, . ~ncluding, without limitation, the soil conditions, water drainage~ or natural or artificial hazards which mayor may not exist. the appropriate- ness of the land classification, or the profitability or fitness of the land for any use. 9. AQreement to Terms of Lease Documents. The City and the Lessee agree that each of the provisions of this Lease. and any valid amendments or attachments hereto. are merged and incorporated into this Lease and are binding upon themselves and upon their respective successors. The City and the Lessee further agree that this Lease is conditioned upon satisfactory performance by the City and the Lessee of all conditions contained in it. . CITY OF SEWARD, a;.SKA LEASE .. Page 5 . . 10. Payment of Taxes and Assessments. The Lessee must pay all taxes and assessments accruing against the leased land during the term of the Lease. 11. Condemnat.ion of Leasehold or Improvements. If all or part of the Leased Land is taken by any authorized body or person vested with the power of eminent domain, by negotiation, court action, or otherwise, the following provisions control: A. Tak inQ of the Enti re Parcel. If all of the Leased Land is taken by condemnation, the terms of the Lease and all rights of the Lessee immediately terminate. The City is entitled to all of the proceeds 'attributab 1 e to the fa i r market val ue of the imp rovements placed on the condemned parcel by the Lessee. . 8. TakinQ of Substantial Part of Parcel. If the taking is of a substantial part of the Leased Land, the following rules apply: (1) If the taking by condemnation reduces the ground area of the leased Land by at least thirty (30%) percent or materially affects the use of the land by the Lessee, the Lessee has the right to elect to terminate or not to terminate the lease by written notice to the City no later than fifteen (15) days after the date of taking. (2) If the Lessee elects to terminate, the provisions in A. of this paragraph govern the condemned portion of the Leased Land and the terms of the lease govern disposal of the remainder of any improvements made by the Lessee. . CITY OF LEASE Page 6 SEWARD. ~ASKA . . (3) If the Lessee elects not to terminate. the Lease continues and the City is entitled to the full condemnation proceeds except the portion attributable to the fair market value of the improvements placed on the condemned portion of the Leased Land by the Lessee. C. Takin~ of Insubstantial Part of Parcel. If the taking by condemnation reduces the ground area of the Leased Land by less than thirty (30%) percent and the City determines that the taking is of such an insubstantial portion that the Lessee's use of the land is not materially affected. the provisions of B.(3) of this paragraph will govern. 12. Valid Existin~ Rights. This Lease is entered into and made subject to all valid existing rights. including easements. rights-of-way. reservations. or other interests in the Leased Land. in existence on the . date the Lease is entered into. 13. Inspection. The City must be accorded reasonable access to the leased 1 and for the purposes of inspection to assure the faithful performance of the provisions of the Lease and other lawful requirements. 14. Minerals. Nothing in this Lease shall authorize the Lessee to exercise any rights in regard to 011. 011 rights. minerals. mineral rights. natural gas rights. and/or other hydrocarbons that may be in or upon the Lease Land. 15. Surface Reservations. Unless otherwise stated in this Lease. the Lessee may not sell or remove for use elsewhere any of the surface resources of the Leased Land, such as stone, gravel. sand. peat, topsoil, timber. or any other material valuable for building or commercial . pu rposes. CITY OF LEASE Page 7 SEWARD._ASKA . . 16. Acquisition of Riqhts or Interests. Any right or interest acquired during the term of this Lease. and accruing to the benefit of the Leased Land. remains appurtenant to the land during that term and may not be severed or transferred from the 1 and without the prior written consent of the City. If this Lease is . terminated or is forfeited. any such right or interest reverts to the City. 17. Waiver or Forbearance. The City's receipt of rent or any other sum of money from the Lessee does not waive any provision of this Lease. The failure of the City to enforce any provision of this Lease does not affect its right to enforce any other provision in the event of a subsequent breach or default by the Lessee. Any waiver of enforcement by the City is valid only if it is in writing. The City's receipt of rent or . any other sum of money does not reinstate. continue. or extend this Lease after any notice of termination which may have been given by the City. 18. Breach and Remedies. A. Time is of the essence in this Lease. If the Lessee breaches any provisions of this Lease or any valid amendments or attachment thereto, and the breach is not remedied within fifteen (15) days after written notice of it's having been served on the Lessee by the City. the Lessee is subject to any legal action that the City considers appropriate, including the termination of this Lease. However, improvements now on the Leased Land. or temporary improvements which may be placed on it during the term of the Lease, may be removed from it during any time in which this . . . . CITY OF LEASE Page 8 SEWARD. WSKA . . Lease is 1n breach. subject to the 1 imitations contained in pargraph 19. The City is not liable for any expenditures made by the Lessee in the event of the termination of this Lease. B. If this Lease is terminated by summary proceedings or in any other manner. the City. after written notice to the Lessee, may inuned1ately. or any time afterward. enter or reenter. take possession. repossession. or dispossession; any such action by the City, whether taken by summary proceedings or otherwise. does not release or discharge the Lessee. either in whole or in part. from any monetary liability to the City under this Lease. 19. Disposition of Improvements and Chattels and Termination. A. The Lessee must. within fifteen (15) days after the termination of the Lease by the City or by operation of Law. remove all improvements and chattels located on the Leased Land if the removal will not damage the land or seriously impair its redisposal. and if removal is authorized in writing by the City. After removal. the Lessee can demonstrate undue hardship. B. If any improvements or chattels of an appraised value of more than TEN THOUSAND and NOIlOO (SI0.000) DOLLARS. as determined by the City, are not removed from the Leased Land within the time allowed. they may, upon thirty (30) days' written notice to the Lessee. be sold at public auction under the direction of the City. The proceeds of sale will inure to the Lessee who placed the improvements or chattels on the land. after deduction for the beneift of the City of all money due and owing under this Lease and all expenses incurred in administering the termination and CITY OF LEASE Page 9 SEWARD'WSKA . . conduction of the sale. If there are no other bidders at the sale, the City may bid on the improvements or chattels, and the City will acquire all rights, both legal and equitable, which any other purchaser could acquire through a sale and purchase. C. Any chattel or improvements which have a total appraised value of $10,000 or less, as determined by the City, and which are authorized for removal by the City but are not removed within the time allowed, become the absolute property of the City upon the expiration of the time allowed for removal. 20. Indemnity of City. The Lessee shall indemnify and hold the City harmless from all claims and demands for loss or damage, including property damage, personal injury, wrongful death, and wage or employment To the City: City Cl erk City of Seward P. O. Box 167 Seward, AK 99664 . claims, arising out of or in connection with the use or occupancy of the Leased Land by the Lessee or his successors, or at his invitation. 21. Surrender of Land. Upon the expiration or termination of this Lease, Lessee shall immediately leave the Leased Land. 22. Not ices. A. All notices and other writings required or permitted under this Lease must be made by certified mail, postage prepaid, to the parties at the following addresses: . CITY OF SEWARD, JJ...ASKA lEASE . Page 10 ,e . To lessee: Red Arledge d/b/a Red and Don's Propellar Shop Route 1, Box 1214-16 Kenai, AK 99611 B. Any notice or demand which must be given or made by the City or the lessee in writing is complete when sent by United States certified mail to the address shown in the Lease, or to any other address that the parties may designate in writing. A copy of any notice must be forwarded by the City to the holder of any security interest in the leased land who has properly recorded its interest in the Lease with the City. 23. Integration and Modification. This lease, including all documents which by reference are incorporated herein or made a part hereof, contains the enti re agreement between the parties. This lease may not be . modified or amended except by a document signed by both parties to this lease. Any amendment or modification which is not in writing and signed by both parties is of no legal effect. 24. Severability of Clauses of lease. If a provision of this lease is adjudged to be invalid, that judgement does not affect the validity of any other provision of this lease, nor does it constitute any cause of 25. "Successor" Defined. In this lease, "successor" means any action in favor of either party as against the other. heirs, assigns and sublessees and other successors-in-interest. 26. Construction. Words in the singular number include the plural number; words in the plural number include the singular number. . CITY OF LEASE Page 11 SEWARD, ~SKA . . 27. Headings. The headings of the numbered paragraphs in this Lease shall not be considered as construing any provision in this Lease. 28. Referendum. It is understood that this short-term lease, issued in accordance with Sec. 2-95 of the Seward. City Code, is done so without benefit of a public hearing. This Lease may be suspended during the first' thirty (30) days after passage of the enacting resolution' if a sufficient referendary petition is filed in accordance with Sec. 4.8 of the City Charter. 29. Termination. The city may terminate this 1 ease, without penalty of any kind, at any time for convenience, upon delivery of written notice to the Lessee thirty (30) days prior to the date .of intended termi nati on. If the Lease is terminated for convenience, the lease term . shall terminate and the Lessee shall promptly complete any work under way and clear the work site of its equipment and supplies. All necessary site cleanup and other obligations required by this Agreement will be completed prior to the termination date. BY SIGNING THIS LEASE, The CiTY OF SEWARD, as Lessor, and RED ARLEDGE as Lessee, agree to be bound by its provisions as set out above. LESSOR: CITY OF SEWARD, ALASKA LESSEE: ,J / r-1 I ) t_"t--- -_. -"_ 1 ~ ,.I/".I,J- RED ARLEDGE . - CITY OF SEWARD, MSKA LEASE .,., Page 12 e . ATTEST: APPROVED AS TO FORM: HUGHES. THORSNESS. GANTZ, POWELL AND BRUNO IN, Attorneys for the City of Seward, Alaska '7~ !?J~ Fred B. Arvidson, City Attorney . '. . ~'. ... " :.., '::L ..r-~~ .<<~~!~~ .~'. ~~ ~~. ~~ z:.... " "', -1 ~~ ~~ ",\_"" ,', STATE OP~~~~~;,^,-'" THIRD JUDICIAL DISTRICT ) THIS IS TO CERTIFY that, on the ~ day 0 1985', before me, the undersigned, a Notary Publ ic in an for the Stat of Alaska, duly commissioned and sworn as such. personally appeared RO~A 0 A. GARZINI. known to me and to me known to be the City Manager of the' ty of Seward. Alaska, and acknowledged to me that the foregoing instrument was executed by him in his official corporate municipal capacity. and that he executed the same pursuant to the authorization of the City Council of the City of Seward, Alaska; that the same was executed as the free and voluntary act and deed of the municipal corporate seal of said municipality. ss IN WITNESS WHEREOF, I have hereunto set my hand and affixed my Notarial Seal the day and year hereinabove written. STATE OF ALASKA ) ) ss THIRD JUDICIAL DISTRICT ) '- THIS IS TO CERTIFY that on this ,--2 day of <-- 198F, before me, the undersigned, a Notary Publ ic in an for the Alaska. duly commissioned and sworn as such, personally appeared ARLEDGE lawful agent for RED & DON'S PROPELLAR SH . CITY OF SEWARD, AaSKA LEASE .' Page 13 - . to me and to me known to be the person who executed the foregoing instrument for and on behalf of RED & DON'S PROPELLAR SHOP, and who acknowledged that he signed the same freely and voluntarily for the uses and purposes therein contained. IN WITNESS WHEREOF, I have hereunto set my hand and seal on the day and year first hereinabove written. . .