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HomeMy WebLinkAboutRes1985-048 . . . . . CITY OF SEWARD. ALASKA RESOLUTION NO. 85-48 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, AUTHORIZING A LONG-TERM LEASE AT LESS THAN FAIR MARKET VALUE TO THE DEPARTMENT OF THE ARMY, CORPS OF ENGINEERS, AGENTS OF THE U.S. ARMY, FOR THE PURPOSE OF OPERATING AN ARMY TRAVEL CAMP ON LOT 3, TRACT A. U.S. SURVEY 242 WHEREAS. in 1964. in the United States of America and the State of Alaska entered into a long-term lease for the development of a military recreation facility on lot 3. Tract A. U. S. Survey 242. con- taining !12.5 acres; and WHEREAS, in 1983, the City of Seward acquired this property and assumed responsibility for said lease from the State of Alaska as part of the City's municipal entitlement under the Alaska Statehood act; and WHEREAS, said lease has expired and has been extended through April 20, 1985, under the original terms and conditions. while a new long-term lease is negotiated; and WHEREAS. the Army and the City have mutually agreed that, while the property's fair market lease value is more than Forty Thousand Dollars ($40.000) per year. the Department of Defense is bound by certain Acts and regulations which require fee simple acquisition prior to expending funds in excess of fifty percent (50%) of the appraised value of the leased property over the life of the lease; and WHEREAS. although the City would prefer to receive full fair market value through either lease or sale, it is recognized that the process for fee simple acquisition through federal appropriation is a long and uncertain process; and WHEREAS, since the lease has expired; and since the City has no intent to cause the Army's departure from Seward; and since the City Council finds it in the public interest to negotiate a less than fair market value. long-term lease. giving credit to the Army for the mili- tary's monetary input into the local economy and its long standing support of the community over the past twenty years. NOW. THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SEWARD. ALASKA, that: Section 1. The City Manager is authorized to complete nego- tiations and execute the attached agreement, which is herewith incor- porated by reference as part of this resolution. for a long-term lease of Lot 3, Tract A, U.S. Survey 242, with the Department of the Army, Corps of Engineers, acting as agent for the U.S. Army. -1- . . . . . CITY OF SEWARD, ALASKA RESOLUTION NO. 85-48 Section 2. This resolution shall take effect thirty (30) days following adoption. PASSED AND APPROVED BY THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, this 13 day of May , 19 85 AYES: NOES: ABSENT: ABSTAIN: ATTEST: THE CITY OF SEWARD, ALASKA () db )0-/, ,L4,~j,/ t, ~rMcn DONALD W. CRIPPS, OR CRIPPS, HILTON, MEEHAN, SCHOLL, SIMUTIS & WILLIAMS GILLESPIE NONE NONE APPROVED AS TO FORM: HUGHES, THORSNESS, GANTZ, POWELL AND BRUNDIN, Attorneys for the City of Seward, Alaska (City Seal) CZA. f2I ~~ Fred B. Arvidson, City Attorney -2- . . . DEPARTMENT OF lHE A~ CORPS OF ENGINEERS LEASE No. DA CA8S CIY. ENG DIVISION NORTH PACIFIC ALASKA DISTRICT LAN) LEASE BElWEEN CITY OF SEWARD AN> THE UNITED STATES OF AMERICA 1. lHIS LEASE. .ade and entered fnto thfs day of fn the year one thousand nfne hundred and eighty-ffve by and between CITY OF SEWARD whose address fs P. O. Box 167, Seward, Alaska 99664 . and whose fnterest fn the property herefnafter descrfbed fs that of . owner fn fee sfmple for fts hefrs. executors. a~fnfstrators. successors. and assfgns. herefnafter called Lessor. and lHE UNITED STATES OF AMERICA. herefnafter called the GovernDent: WITNESSETH: The partfes hereto for the consfderatfon herefnafter mentfoned covenant and agree as follows: 2. The Lessor hereby leases to the Government the followfng descrfbed pr_fses. vfz: Lot 3 of Tract A, U.S. Survey No. 242, Seward, Alaska containing 12.43 acres, more or less, as shown on the attached drawing marked EXHIBIT A. to be used for the followfng purpose: Government purposes. ENG FO~ 856 REPLACES EDITION OF 1 DEC 62. WHIai IS OBSOLETE (ER 405-1-660) Jan 68 . . . . . CITY OF SEWARD, ALASKA ARMY LEASE 3. TO"^YE AND TO HOlD the said premises for the term beginning May 1, 1985, through 30 Sep 1985, provided that unless and until the Government shall give notice of termination in accordance with provision 6 hereof, this lease shall remain in force thereafter from year to year without further notice; provided further that adequate appropriations are available from year to year for the payment of rentals; and provided further that this lease shall in no event extend beyond 30 Sep 1995, with the right to extend year to year for two (2) subsequent ten (10) year lease periods, subject to mutual reappraisal of this agreement at the end of the third lease term. If mutually agreeable, Lessee may be granted an option for two (2) additional ten (10) year extensions. 4. The GoverRBent shall pay the Lessor rent at the following rate: TEN THOUSAND and NO/100 ($10,000.00) DOLLARS per annum in arrears, for the first ten (10) year term: and for subsequent ten (10) year lease terms, the Government shall pay Lessor rent at twenty-five (251) percent of the fair market rental value. Said rental rate to be determined at Lessor's expense, by an M.A.I. certified appraiser during the seventh year of each lease ten-year-lease term. Payment shall be made at the end of each federal fiscal year by the Accounting and Finance Officer, U. S. Army, 172nd Infantry, AFZT-EH-PSR, Fort Richardson, Alaska 99505. Payment for lesser periods than twelve (12) calendar months shall be pro-rated. 5. The Government shall have the right. during the existence of this lease to attach fixtures, and erect structures or signs in or upon the premises hereby leased, which fixtures and structures, or signs, so placed in, upon or attached to the said premises shall be and remain the property of the Government and may be removed or otherwise disposed of by the Government, but not to include abandonment inplace without the consent of Lessor. 6. The Gover..,nt shall teminate this lease at any time by giving thirty (30) days notice in writing to the Lessor, and no rental shall accrue after the effective date of termination. 7. Any notice under the terms of this lease shall be in writing signed by a duly authorized representative of the party giving such notice, and if given by the Government shall be addressed to the Lessor at P. O. Box 167, Seward, Alaska 99664, and .if given by the Lessor shall be addressed to District Engineer, U.S. Army Engineer District, Alaska, P.O. Box 898, Anchorage, Alaska 99506-0898. 8. The Lessor warrants that no person or selli ng agency has been employed or retained to solicit or secure this lease upon an agreement or understanding for a commission, percentage, brokerage, or contingent fee, -2- . . . . . CITY OF SEWARD. ALASKA ARMY LEASE excepting bona fide employees or bona fide established commercial or selling agencies maintained by the Lessor for the purpose of securing business. For breach or violation of this warranty the Government shall have the right to annul this lease without liability or in its discretion to deduct from the lease price or consideration the full amount of such commission. percentage. brokerage. or contingent fee. 9. No lIlelIlber of or delegate to Congress or Resident eo.nissioner shall be admitted to any share or part of this lease or to any benefit that may arise therefrom. but this provision shall not be construed to extend to this lease if made with a corporation for its general benefit. 10. (a) The Gover~nt IIaY. by written notice to the Lessor. terminate the right of the Lessor to proceed under this lease if it is found. after notice and hearing. by the Secretary of the Army or his duly authorized representative. that gratuities (in the form of entertainment. gifts. or otherwise) were offered or given by the Lessor. or any agent or representative of the Lessor. to any officer or employee of the Government with a view toward securing a lease or securing favorable treatment with respect to the awarding or amending. or the making of any determinations with respect to the performing, of such lease; provided. that the existence of facts upon which the Secretary of the Army or his duly authorized representative makes such findings shall be in issue and may be reviewed in any competent court. (b) In the event this lease is terminated as provided in paragraph (a) hereof. the Government shall be entitled (1) to pursue the same remedies against the Lessor as it could pursue in the event of a breach of the lease by the Lessor. and (i1) as a penalty in addition to any other damages to which it may be entitled by law. to exemplary damages in an amount (as determined by the Secretary of the Army or his duly authorized representative) which shall be not less than three nor more than ten times the costs incurred by the Lessor in providing any such gratuities to any such officer or employee. (c) The rights and re.edies of the Gover..ent provided in this clause shall not be exclusive and are in addition to any other rights and remedies provided by law or under this lease. 11. The Lessor reserves the right to continued use. occupancy and development of existing public water well field and appurtenant facilities. utility easements and street rights-of-way. Areas of reservation under this paragraph are designated on the attached drawing marked EXHIBIT A. 12. The Lessor shall have the right to review and comment upon plans for development of major facilities on the lease premises. The Lessee shall give fullest practicable consideration to the needs and desires of the Lessor in the final determination made involving development and operation of the recreation camp. -3- . . . . . CITY OF SEWARD, ALASKA ARMY LEASE 13. The construction of new facll ites as proposed by Lessee will be completed within the first ten (10) year period of the lease. 14. Should Lessee fail for any reason, other than a national emergency, to operate the recreation camp for a period of two (2) years, the lease rate will increase to full fair market rental value as determined by an M.A.I. certified appraisal of the property. This lease is not sUbject to Title 10. United States Code. Sec. 2662. IN WITNESS WHEREOF, the parties hereto have hereunto subscribed their names as of the date first above written. CITY OF SEWARD, ALASKA THE UNITED STATES OF AMERICA BY: RONALD A. GARZINI CITY MANAGER ATTEST: APPROVED AS. TO FORM: HUGHES, THORSNESS, GANTZ, POWELL AND BRUNDIN, Attorneys for the City of Seward, Alaska LINDA S. MURPHY, City Clerk (City Seal) FRED B. ARVIDSON, City Attorney STATE OF ALASKA ) ) ss THIRD JUDICIAL DISTRICT ) THIS IS TO CERTIFY that on the day of , 1985, before me, the undersigned, a Notary Public in and for the State of Alaska, duly commissioned and sworn as such, personally appeared RONALD A. GARZINI, known to me and to me known to be the City Manager of the City 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 -4- . . . . . CITY OF SEWARD, ALASKA ARMY LEASE 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. IN WITNESS WHEREOF, I have hereunto set my hand and affixed my Notarial Seal the day and year hereinabove written. Notary Public in and for Alaska My Commission Expires: STATE OF ALASKA ) ) ss THIRD JUDICIAL DISTRICT ) THIS IS TO CERTIFY that on this day of , 1985, before me, the undersigned, a Notary Publ ic in and for the Sate of Alaska, duly commissioned and sworn as such, personally appeared lawful agent for the United States of America, known to me and to me known to be the person who executed the foregoing instrument for and on behal f of the United States of America, 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. 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