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CITY OF SEWARD, ALASKA
RESOLUTION 2006-103
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD,
ALASKA, AUTHORIZING THE CITY MANAGER TO ENTER INTO A
LEASE AMENDMENT WITH THE SEWARD CHAMBER OF COMMERCE,
CONFERENCE AND VISITORS BUREAU, INCORPORATED TO EXTEND
THE TERM OF THE LEASE FOR THE LEASE OF LOT 4, FORT
RAYMOND SUBDIVISION AS SHOWN ON PLAT NO. 86-10, SEWARD
RECORDING DISTRICT, THIRD JUDICIAL DISTRICT, STATE OF
ALASKA, CONTAINING 43,778 SQUARE FEET, MORE OR LESS
WHEREAS, the Seward Chamber of Commerce, Conference and Visitors Bureau,
Incorporated ("Lessee") seeks to extend the term of its existing lease agreement ("Lease") with the
City of Seward for Lot 4, Fort Raymond Subdivision as shown on Plat No. 86-10, Seward Recording
District, Third Judicial District, State of Alaska, containing 43,778 square feet, more or less; and
WHEREAS, the current lease has been in effect since October 2005.
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 enter into an amendment to the Lease dated October
2005 with the Seward Chamber of Commerce, Conference and Visitors Bureau, Incorporated
extending the teml of the Lease.
Section 2. The City Manager is hereby authorized to enter into a lease amendment in
substantial form as attached hereto and incorporated herein by reference, and to make such changes
to the attached Lease Amendment No.1 as necessary to finalize the Lease amendment between the
parties but without changing the substantial tenus and conditions as described therein.
Section 3. This resolution shall ulke effect thirty (30) days after its adoption and posting.
PASSED AND APPROVED by the City Council of the City of Seward, Alaska, this 10th
day of October, 2006.
THE CITY OF SEWARD, ALASKA
/r:J~ ~~
Vanta Shafer, Mayor'
'--
CITY OF SEWARD, ALASKA
RESOLUTION 2006-103
J
AYES:
NOES:
ABSENT:
ABSTAIN:
Dunham, Valdatta, Lorenz, Schafer, Bardarson, Thomas, Shafer
None
None
None
ATTEST:
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LEASE AlvIENDMENT NO.1
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," whose address is PO Box 167,
Seward, Alaska 99664 and THE SEW A-"RI> CHAMBER OF COMMERCE, CONFERENCE AND
VISITORS BUREAU, INCORPORATED, whose address is P.O. Box 749, Seward, Alaska 99664,
hereinafter referred to as "LESSEE" wish to amend that certain Lease effective , 2005, made
between CITY and LESSEE, covering the real property described as Lot 4, Fort Raymond Subdivision, Plat
No. 86-] 0, Seward Recording District, Third Judicial District, State of Alaska, as follows:
ITEM 1. The name of Lessee is the Seward Chamber of Commerce, Conference and Visitors
Bureau, Incorporated.
ITEM 2. Section 2.1 is hereby amended w change the Lease Tem1 termination date from November
1, 2010 to November 1, 2021 as follows:
Lease Term. The term of this LEASE (the "Lease Term") shaH be in accordance with
CITY"S Resolution Nos. 2005- and 2006- . The Lease Term shall commence
- -
October 1, 2005 (the "Effective Date") and shall run for approximately 16 years from the
Effective Date, ending at midnight on N Dvember ], 2021.
ITEM 3. Section 2.3 is hereby deleted and replaced with the following amended language to aHow
possible extension of the Lease Term:
Option to Extend LESSEE shall have the right to extend the Lease Term for one additional
5-year period provided that:
a) LESSEE exercises its option to extend at least 180 days prior to the expiration of the
Lease Term; and
b) LESSEE is not in default under any term or provision of this LEASE; and
c) LESSEE shall exercise its option to extend by sending written notice thereof in
accordance with Article 33 oft11is LEASE.
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 upon
the effectiveness of Resolution 2006-
LEASE AMENDMENT NO. I
l<fovember 2006
-Page 1 of 3-
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STATE OF ALASKA
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THIRD JUDICIAL DISTRICT
TB.1S IS TO CERTIFY that on this _ day of , 2006, before me, the
undersigned, a Notary Public in and for the State of Alaska, personally appeared Clark Corbridge, known to me
and to me known to be the City Manager for the Cil:y of Seward, Alaska, and authorized to execute documents
on its behalf, a..nd is the individual named in and who executed the foregoing document on behalf of the City
of Seward for t,'1e uses a..l1d purposes therein set forth.
WITNESS my hand and notarial seal the day and year first hereinabove written.
NOTARY PUBLIC IN AND FOR ALASKA
My Commission Expires:
STATE OF ALASKA
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THIRD JUDICIAL DISTRICT
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TillS IS TO CERTIFY that on this '-i day of '-~ ('Jo l?",~' ~ ,2006,betere
me, the undersigned, a Notary Public in and for ~ the State of Alaska, personaliy appeared
\llw[l. Uo U1.\<Jknown to me and to me known [0 be the t:'k.0..Axhv 2 D ,\ C c:..:\:--t".~ for the Seward
Chamber of Commerce, Conference and Visitors Bureau, Incorporated, and authorized to execute documents
on its behalf, and is the individual named in and who executed the foregoing document on behalf of the
corporation for the uses and purposes therein set forth.
WITNESS my hand and notarial seal tbe day and year first her~bove written.
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Return to:
City of Seward
Harbor Dept.
PO Box 167
Seward, AK 99664
LEASE A!VlENDMENT NO. 1
November 2006
-Page 3 of 3-
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TABLE OF CONTENTS
ARTICLE 1 - LEASED LA-ND.................................................................................................... 1
1.1 Description of Leased Land ..................................................................................... 1
1.2 Covenant of Quiet Enjoyment,: Warranty of Title ................................................... 1
1.3 Survey of Leased Land ............................................................................................ 2
1.4 Property Accepted............... ............... ...................... .......... ....... ............ ... ......... ...... 2
1.5 Permits .................. ................. ...................................... ............. ..... ................... ...... 2
1.6 P fatting...................... ............. ............ ....... .............................................................. 2
ARTICLE 2 - LEASE TERM......................................................................................................3
2.1 Lease Term.. .... ...... ......... ......................... ................................................................ 3
2.2 Lease Subject to Referendum .................................................................................. 3
2.3 Options to Extend.................................................................................................... 3
ARTICLE 3 - RENi AL RATE ...................................................................................................3
3.1 Initial Rental Rate ................................................................................................... 3
3.2 Rental Adjustments......... .............. ................ ............................... .............. .............. 4
3.3 Procedure for Rental AdjustmenL..........................................................................4
3.4 Effect of Late Appraisal by CITy............................................................................ 4
3.5 Appraisal by LESSEE ............................................................................................. 5
3.6 Effictive Date of Adjusted Rental Rate ...................................................................5
3.7 Interim Rental Adjustments......m............................................................................ 5
3.8 Late Payment Charge ............................................................................................. 6
ARTICLE 4 - USE OF LEASED LAND .............................................m.................................... 6
4.1 Use of Leased Land................................................................................................. 6
4.2 Obligations of LESSEE ................................................................................ ...... ..... 6
4'" N" p,.(; 'IR' h [jT~~P,bl. 1':' 'Z" ,~
.~ 0 rtjerentla Ig ts to "'" U. IC raCl ItieS ..................................................... !
4.4 Adequacy of Public Facilities ................................................................................. 7
4.5 TariffS and Other Service Fees ............................................................................... 7
4.6 Time for Payment of Utilities and Taxes................................................................. 7
4.7 Other Uses .................. ............ .............................. ............. ........ ...... ....................... 8
ARTICLE 5 - UTILITIES A.ND RIGHTS OF ACCESS.......................................................... 8
5.1 Utilities ........... .................... ........... .............. ........ ............... .................. ....... ...... ...... 8
5.2 Third-Party Improvements ......................................................................................8
5.3 Easements ............................. .................... ........... .................. .... ........... ........... .... ... 9
5,4 Care of Leased Land............................................................................................... 9
- 5 Ot' A . R' h "C'17"";" Q
). ner J"1ccess Ig ts oJ 111 .............................:...................................................../
ARTICLE 6 - CONSTRUCTION BY LESSEE....................................................................... 10
6.1 Improvements on Leased Lmzd .................:........................................................... 10
6.2 Cm'Review of Construction ............................................................................... 11
ARTICLE 7 - RETURN OF LEASED LAr.'D/SITE CONDITIONS ................................. 11
7.1 Return of Leased Land in Original Condition ...................................................... 11
7 ') R ,{' r dr" rift-- r " C d" , ;
._ eturn oJ ~ease ~and In -'-''C. e. enl on ItlOn ..................................................... '"
Lease Agreement between City of Seward and Seward
Chamber of Commerce
December 2005
Page i~1f8
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LEASE AGREEMENT
TillS LEASE AGREEMENT (the "LEASE") is made by and between t.he CITY OF
SEW A-RD (the "CITY"), a ml.micipa! corporation located in the Kenai Peninsula Borough, State of
Alaska, whose mailing address is P.O. Box 167, Seward, Alaska 99664 and SEWARD CHAMBER
OF COMMERCE, CONFERENCE Arm VISITORS BL"'REAU, INCORPORATED, a
nonprofit corporation (the "LESSEE"), whose mailing address is P.O. Box 749, Seward, Alaska
99664.
WHEREAS, LESSEE has indicated its desire to lease Lot 4, Fort Raymond Subdivision, Plat
No. 86-10, Seward Recording District, Third Judicial District, State of Alaska;
WHEREAS, the City Council ofSevvard has determined that lease ofthe Leased Land (as
defined below) to LESSEE for the purposes described herein would be in the public interest; and
WHEREAS, it is the intent of this LEASE to transfer from CITY to LESSEE the entire
burden of compliance with present or future environmental regulations or controls with respect to
LESSEE's operations on the Leased Land during the lease term.
NOW THEREFORE, for and in consideration of the mutual promises and covenaIlts
hereinafter contained, the parties hereto agree as follows:
ARTICLE :[ - LEASED LAND
1.1 Description of Leased Land. The Leased Land is located in the City of Seward, Alaska. The
Leased Land is described as follows:
Lot 4, Fort Raymond Subdivision as shown on Plat No. 86-10, Seward Recording District
~ ,
Third Judicial District, State of Alaska, containing 43,778 square feet, more or less (the
"Leased Land").
The Leased Land is also depicted on ~d1e attached Exllibit A, which is incorporated herein by
reference.
1.2 Covenant of Quiet Enjoyment; Warranty of Title. Subject to the encumbrfu"'1CeS as of the date
hereof, any reaso:nable restrictions imposed on t.he Leased Land as part of recording of a plat
by CITY, and 1i~e provisio11s of this LEASE, CITY hereby covena..l1ts and warrants that:
a) LESSEE shall have the quiet enjoyment and possession of the Leased La..l1d for the
full term of this LEASE; and
Lease Agreement between City of Seward a"d Seward
Cham ber of Commerce
7 ')'December 2005
. <' Page] of28
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ARTICLE :2 - LEASE TERlVI
2.1 Lease Term. The term oftms LEASE (lhe "Lease Term") shall be in accorda..T1ce ",ith CITY's
authorization Resolution No. 2005-85 (Lhe "Resolution"). The Lease Term shall commence
on the date this LEASE is signed by CITY and that date shall be the effective date of tms
LEASE (the "Effective Date"). The Lease Term shall nUl for 5 years from the Effective
Date, ending at midnight on November 1, 2010. Except for extensions as provided in
Section 2.3 below, this LEASE is not subject to renewal.
2.2 Lease Subject to Referendum. LESSEE understands and assumes the risk that under the
Ch<Lrter and Code of CITY this LEASE may be voided by referendlL11l. LESSEE agrees that
if the Resolution approving this LEASE is Lhe subject of a referendum petition filed with the
Clerk of CITY, LESSEE shall have no ri~hts under this LEASE unless and until the
Resolution is approved by the voters of the City of Seward, and LESSEE shall not be entitled
to any da..mages or any other relief against CITY in the event Lhe Resolution is not so
approved.
2.3 Options to Extend. LESSEE shall have Lhe right to extend the term oftms LEASE for two
(2) additioml five (5) year periods (cumulative extensions not to exceed ten (10) yeacTS),
provided that:
a) LESSEE exercises any applicable option to extend at least one hllildred and eighty
(180) days prior to the expiration of the t.."'len current lease term;
b) LESSEE is not in default llilder any term or provision of this LK",SE;
c) LESSEE shall exercise its options to extend by sending written notice thereof in
accordance with Lhe provisions of Article 33 ofLhis LEASE; and
d) The City Council sh..all approve each extension by resolution.
ARTICLE 3 - RENTAL RATE
3.1 Initial Rental Rate. Commencing on the Effective Date of this LEASE Llrrough June 30,
2006, tt'1e mmual rental rate for the Leased Land shall be set at Zero dollars ($0.00). Rent
shall be payable quarterly in advance upon the Effective Date of this LEASE (prorated for
the balance of me current quarter) ac"1d therea...fl:er on or before the 20th day of t.he month
beginning each calendar quarter: Jarmary 20, April 20, July 20 and October 20. The amount
of each quarterly payment shall be one-qua..rter of the 31u1Ual rental rate as initially established
or later adjusted under this Article 3; provided, however, there shaH be no rent due mrHler
this LEASE so long as the Leased Land is used for the operation of a chamber of
commerce office and visi.tor information center. If the Leased Land is used in a
manner not permitted by this LEASE or not approved by the CITY in writing, rent
Lease Agreement between City of Seward and Seward
VJ .chamber of Commerce
& J December 2005
Page 3 of28
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a) The Leased Land is to be cornpletely cleaned fu"1d restored to its original condition,
that is, the condition existing prior to this LEASE or i..n better condition upon
termination of t.llls LEASE.
b) LESSEE agrees to prohibit the use, keeping, storage, or disposal or Hazardous
Materials on the Leased Land except as permitted in Article 19 of this LEASE.
c) LESSEE shall not use the Leased Land in a.l1Y ma1IDer or constmct any racilities
thereon which would inhibit the use of adjacent or other lands.
d) LESSEE shall continue to operate a visitor information center on the Leased Land.
Any changes to t.his site require CITY approval, through the City Manager, prior to
additional constmction. LESSEE's failure to obtain CITY approval or any changes to
the site development plan or LESSEE's failure to install the improvements according
to the site development plan shall be a LESSEE Act of Default under this LEASE.
e) So long as this LEASE is in effect, the LESSEE win allow CITY to place and
maintain public information signs, including visitor information signs, on the Leased
Land in the manner deemed appropriate by the CITY.
4.3 No Preferential Rights to Use Public Facilities. This LEASE does not grant to LESSEE any
exclusive rights to use any public facilities constructed or operated by CITY. LESSEE will
be subject to any tariffs, procedures, mles and regulations of CITY concerning the use of
such facilities as they may now exist or from time to time be amended, and LESSEE shall not
be entitled to any exclusive use.
4.4 Adequacy afPublic Facilities. CITY makes no representations or warranties as to the fitness
of a.l1Y particular part or the whole of CITY's public facilities for the uses intended by
LESSEE, and LESSEE has inspected those racilities and has satisfied itself t.hat the facilities
are sufficient for the intended uses by LESSEE. CITY makes no representations or
warranties of any nature with respect to the commercial practicability or accuracy of fu'lY
information provided by CITY.
4.5 TariffS and Other Service Fees. CITY shall have the right to make amendments to its t<hriffs,
regulatioI1.S a.l1d scheduled fees from time to time even if those adjustments shall cost
LESSEE more for its operations or use of public facilities, and CITY is free to do so
provided only that it does not impose any greater burden or higher rate upon LESSEE tha\"1
upon any other similar user of the public facilities.
4.6 Time for Payment of Utilities and Taxes. LESSEE will pay ror utilities and taxes related to
operations on the Leased Land and LESSEE's interest in this LEASE and improvements
thereon, if any, before such obligations become delinquent; provided, that LESSEE may, it!
good faith and before such delinquency, contest fu"1Y such charge or assessment.
Lease Agreement bet'.veen City of Seward <Ll1d Seward
Chamber of Commerce
December 2005
77 Page 7 of28
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a) All such matters shall be lL111ited to the Lease Term a,.'1d shall terminate upon
termination of this LEASE for 'whatever reason.
b) Any such matters of a permanent nature extending beyond the Lease Term shall not
be granted without the prior "",Titten approval of CITY. In any of the foregoing
instances referred to in this Section, CITY shall be without expense therefore, and the
cost and expense thereof shaH be borne solely by LESSEE.
c) At the expiration of Lhe Lease Term (including any extended period) third-party
improvements on the Leased Land other than portable equipment shall become the
property of CITY without the payment of any compensation to LESSEE.
5.3 Easements. In order to provide for li'1e orderly development of the Leased Land and adjacent
lands, it may be necessary, desirable or required that street, railroad, water, sewer, drainage,
gas, power line a.."1d other easements and dedications and similar rights be granted or
dedicated over or within portions oftche Leased Land. As additional consideration for this
LEASE, CITY and LESSEE each shaH, at the request of the other, join with each other in
executing and deliverLl1g such documents from time to time and throughout the Lease Term
as may be appropriate, necessary, or required by the several governmental agencies
(including the City of Seward), public utilities and other users or tenants of CITY land for Lqe
purpose of granting such easements and dedications; provided, however, that such easements
and dedications and similar rights do not unreasonably interfere with LESSEE's operations.
The costs of locati.llg or relocating any public easements or restrictions of record including
any relocation of public road, railroad, utility, or other easements shall be at Lhe sole cost and
expense of the party requesting the relocation. CITY shaH not refuse reasonable requests for
such relocations provided those relocations do not interfere with or inhibit the overall
development of CITY property or other public property. Any easements or rights of access
granted to LESSEE by CITY need not be exclusive to LESSEE.
5.4 Care of Leased Land. LESSEE, at its own cost and expense, shall keep the entire Leased
Land and all buildings and improvements which at any time may be situated thereon in good,
clean and tide condition and repair during the Lease Term.
5.5 Other Access Rights of CITY. CITY and its agents or representatives shall have the right to
enter into and upon the Leased Land duri.ng reasonable hours for Lhe purpose of inspecting
the Leased Land and all buildings and improvements thereon.
Lease Agreement between City of Seward and Seward
Chamber of Commerce
December 2005
C'] '.Ci,."
6 _ Page 9 of28
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g) CITY may, as contemplated by Alaska Statutes, give notice of non-responsibility for
any improvements constructed or effected by LESSEE on the Leased Land.
h) LESSEE shall comply with all federal, state and local statutes and regulations with
respect to such construction, including but not limited to all applicable building,
mechanical, and fire codes.
6.2 CITY Review of Construction. CITY shall have the right to review initial plans, induding
Lhose supplied to CITY under Section 6.1 hereof, and any future changes or additions to
LESSEE's facilities on Lhe Leased La.'ld, by reviewing the desi~l1 thereof prior to the
commencement of construction. CITY shall have the right to comment upon that design a.11.d
to require LESSEE to ma.ke reasonable changes so as to avoid interference with public
operations, but the exercise of these rights shall not imply any obligation to do so nor any
obligation to do so nor an.y obligation to do so in a particular way. LESSEE shall construct
the facility in accorda.nce with final design specifications approved by CITY. CITY's
representatives may monitor the work and shall have access to the site at all reasonable times.
LESSEE shall be solely responsible for completing all improvements according to LESSEE's
plans and specifications and shall bear all risk, responsibility, and liability for properly
surveying the Leased Land before construction and to place all improvements on the Leased
La.l1d without encroaching upon any land, easements, rights-of-way, or setback requirements.
LESSEE shall obtain the usual and customary performance guarcu,tees from its contractors,
and CITY shall be named as an additional insured.
ARTICLE 7 - RETURN OF LEASED LAND/SITE CONDITIONS
7.1 Return of Leased Land in Original Condition. Subject to the provisions of Article 11.1
herein, upon termination of this LEASE for any reason, LESSEE shall return the Leased
Land to CITY in the same condition as at the commencement this LEASE, subject to
normal, non-abusive use. The Leased Lal1d shall be free of all Hazardous Materials and
contamination arising out of or resulting from or occurring during LESSEE's operations
or use of the Leased Lcu,d during this LEASE.
7.2 Return of Leased Land in Different Condition. Notwithstanding Lh.e provisions of Section
7.1 above, upon termination ofthis LEASE for any reason LESSEE may return the Leased
Land in a re-contoured or graded clean, safe, and stable condition different from its original
condition provided CITY grants written approval of LESSEE's plans for development ofLhe
Leased Land contours, including its pla11s for material extraction and final grade.
ARTICLE 8 - FORCE lVl.4..JEURE
In the event either LESSEE or CITY is delayed from perfonna.nce of any of its obligations
under tl1js LEASE due to acts of nature, acts of the enemies of the United States of A'11erica,
Lease Agreement between City of Seward and Seward
Chamber of Commerce
December 2005
X i Page 11 of28
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judicial action is to cause a stoppage, interruption or threat to the activities of any person or
entiry other than those of LESSEE.
9.5 Failure by LESSEE to operate a visitor information center on the Leased Land and place the
facilities in service bv the Effective Date of the LEASE.
- .
9.6 Failure of LESSEE to maintain its operations within the Leased Land or to keep the public
rights of way clear.
ARTICLE 10 - REMEDIES FOR DEFAULT BY LESSEE
Whenever an act of default by LESSEE shall have occurred, a.l1d any applicable period for
giving notice a.l1d a.l1Y opportu..mty to cure shall have expired, CITY shall have the folloV\ring rights
&ld remedies all in addition to any rights and remedies that may be given to CITY by statute,
cornman law or otherwise:
10.1 CITY may distain for rer..I due any of LESSEE's personal property which comes into CITY's
possession. This remedy shall include the right of CITY to dispose of personal property
distrained in any commercially reasonable manner. It shall be conclusively presumed that
compliance with the procedures set forth in the Alaska Uniform Commercial Code (AS
45.29.601-.628) with respectto sale of property shall be a commercially reasonable disposal.
10.2 CITY may re-enter the Leased Land and take possession thereof and, except for any personal
property of LESSEE which CITY has waived its right to distrain under Section 10.1 above,
remove all personal property of LESSEE from the Leased La.nd. Such personal property may
be stored in place or may be removed and stored in a public warehouse or elsewhere at the
cost of LESSEE all without service of notice or resort to legal process, all ofwmch LESSEE
expressly waives.
10.3 In addition to the above, CITY may:
a) Declare t.his LEASE terminated;
b) Collect any and all rents due or to become due from subtenants or other occupants of
the Leased Land;
c) Recover from LESSEE, vihether this LEASE be terminated or not, reasonable
attorney's fees and all other expenses incurred by CITY by reason of the breach or
default by LESSEE;
d) Recover an amount to be due immediately on breach equal to Lhe unpaid rent for the
entire remaiJ:ljng term of this LEASE or if rent wc..s waived under Section 3.1, recover
&1 aiTIount due immediately equal to the amount of rent that would othenvise have
Lease Agreement between City of Seward a-l1d Seward
Chamber of Commerce
December 2005
83 Page 13 of28
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11.2 Personal Property. Any other provisions of this LEASE to the contrary notwithstanding,
LESSEE, upon termination of this LEASE for any reason, may, but need not, promptly
remove, in no event later than ninety (90) days from the termination of the LEASE, trade
fixtures fuid equipment from the Leased Land provided that LESSEE shan repair any
damages to the Leased Land caused by such removal.
ARTICLE 12 - ASSIGNMENT OR SlJBLEASE
12.1 Assignment of Lease or Subleasing.
a) The parties recognize that this LEASE has been determined to be in Ll-te public
interest by the City COlLT1cil of CITY for t..h.e reasons set forth in the approving
Resolution. The rights and duties created by the LEASE are personal to LESSEE and
CITY has granted the LEASE in reliance upon the individual character and financial
capability of LESSEE. Therefore, LESSEE shall not assign or sublease this LEASE
without CITY's prior wTitten consent, in CITY's sole discretion.
b) No assignment or sublease shall be permitted unless approved in wTiting by CITY
and by resolution of the City CounciL Any sublease shall be expressly subject and
subordinate to this LEASE and the rights of CITY hereunder. CITY may elect to not
approve any proposed assignment or sublease which may result in a business or
activity which, iI. the CITY's sole discretion, is not desirable or compatible wi.th
CITY's comprehensive plan am:!/or other applicable land use regulations.
12.2 Assignment of Lease for Security. Nonvit..hstanding Section 12.1 above, LESSEE may
assign, encumber or mortgage its interest in this LEASE or improvements on the Leased
Land, by deed oftrus! or other security instru..'1lent, to an institutional lender ("Lender") for
development of or operations on the Leased Land, provided that Lender shall be subject to all
obligations of LESSEE under the temlS ofthis LEASE upon foreclosure. CITY shall fumish
Lender, at the address provided to CITY by Lender in writing, with notice of any default or
breach of LESSEE under this LEASE. Lender shall have the right (vvithout being required to
do so and without thereby assuming the obligations of LESSEE uflder this LEASE) to make
good such default or breach within thirty (30) days after wTitten notice specifying such
breach. Notwithstanding the provisions of Article 10 above, no "LESSEE Act of Default"
shall exist until expiration of thirty (30) days after such notice is furnished to Lender;
provided,
a) If Lender, with respect to any default or breach olher than a failure to make any
required payment of rent or other money, shall undertake within thirty (30) days after
notice to cure the default or breach and shall diligently and in good fait..h proceed to
do so, CITY may not terminate this LEASE or relet t..he Leased Land unless Lender
fails to cure the default or breach within a reasonable period of time thereafter; a11d
Lease Agreement between City of Seward and Seward
Chamber of Commerce
December 2005
85 Page 15 of28
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coverage for personal injury, bodily injurj, and properrj da.rnage or destruction. Coverage
under such policies of insurance shall include collapse and underground property dan1age
hazards. Contractual liability insurance coverage in the a..'TIount of not less thfui T\VO
MILLION DOLLARS ($2,000,000) is also required.
LESSEE shan obtain o\-vned and non-owned automobile liability insurmlCe with limits of
liability of not less than ONE MILLION DOLLARS ($1,000,000) per occurrence combined
single limit for bodily injury and propelTY da.7Jlage.
LESSEE shall also maintain workers' compensation insurance as required u;1der Alaska 1m"!.
The mimmum mnounts and types of insurance provided by LESSEE shall be subject to
revision at the sole discretion of CITY in accordance with standard insurance practices, in
order to provide continuously throughout the term of this LEASE and any extensions hereof,
a level of protection consonant with good business practice and accepted sta.l1dards in 1..he
industry. Such factors as changes in the type of or extent of use ofthe Lease Land, increases
in the cost of living, im1ationa.ry pressures, and other considerations, shall be utilized in
assessing whether the minimum insurance requirements should be increased. CITY shall
notifY LESSEE of any required increase in insurance coverage.
All insurance policies shall provide for thirty (30) days' notice of c8Ilcellation a.l1dJor material
change to be sent to CITY at the address designated in ARTICLE 33 of this LEASE. All
such policies shall be ",Titten by insurance companies legally authorized or licensed to do
business in the State of Alaska, and acceptable to CITY (Best's Rating B+ or better). CITY
shall be listed as an additional insured u.'lder all insurance policies. LESSEE shall furnish
CITY, on forms approved by CITY, certificates evidencing that it has procured the insurance
required herein prior to 1..he OCCUpfu""lCY of the Leased Land or operation by LESSEE.
Insurance policy deductibles are subject to approval by CITY. Not.hing herein contaitled
shall prevent LESSEE or CITY from placing and maLTJ.tai...7J.ing at CITY's or LESSEE's own
individual cost and expense, additional or other insurance as may be desired. The minimum
insurance requirements under this LEASE shall not act to limjt LESSEE's liabiliry for any
occurrence and shall not EImt LESSEE's duty to defend and indemnifY CITY for claims
related to 1..his LEASE or the Leased Land.
15.2 Subrogation Rights Waived To the extent permitted by law, LESSEE hereby releases CITY,
its elected and appointed officials, employees and volunteers and others working on behalf of
CITY from any a.T1d all liability or responsibility to LESSEE or anyone claiming t.h..rough or
under LESSEE by way of subrogation or otherwise, for any loss of any kind (including
dan1age to property caused by fire or any other casualty), even if such loss shall have been
caused by the fault or negligence of the CITY, its elected or appointed officials, employees or
volunteers or others working on behalf of the CITY. This provision shall be applicable fuid
in full force and effect only with respect to loss or damage occurring during the time of
LESSEE's occupancy or use (including LESSEE's occupa.ncy or use prior to the Effective
Lease Agreement bet. ween City of Seward and Seward
Chamber of Commerce
December 2005
87 Page17of28
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Dollars and Noll OOs ($50,000) (exclusive of interest and costs). All demands for
arbitration and all a.TJ.swering statements thereto that include any claim must contain a
statement that the total sum or value in controversy, as alleged by the party making
such dema..l1d or a..l1swering statement, is not more than Fifty Thousa..l1d Dollars and
Noll OOs ($50,000.) The arbitrator \\Iill not have jurisdiction, power, or authority to
consider or ma..ke findings (except to deny jurisdiction) concerning any claim,
counterclaim, dispute or other matter in question where the a..mount in controversy of
any such claim, counterclaim, dispute or matter is more than Fifty Thousand Dollars
and Noll OOs ($50,000). The costs and expenses of arbitration shall be shared equally
by the pa..rties, and each party shall bear its own attorney's fees and costs.
b) Arbitration procedures shall be applicable only to contract, negligence, and similar
claims mising from or related to this LEASE, fuld shall not be used to resolve or
determine any claim based upon fraud, intentional misrepresentation, nor any claim
based on conduct that is a felony crime in the State of Alaska.
c) Written notice of requests for arbitration of disputes may be served by either party to
this LEASE upon t.he other party. Arbitration of any dispute or claim shall be
determined by a single arbitrator selected from a list of not less tha..n five arbitrators
obtained from t.1:le presiding Superior Court Judge or other appropriate judicial officer
in Anchorage, Alaska. The arbitrator shall be a person who (a) has not less tha.'1 five
(5) years legal experience in the State of Alaska prior to appointment; and (b) such
legal experience include substantial experience "vith long-term cornmercial real
property transactions. Each paiT)' shall be provided wit.l} a copy of the list fu"1d shall
be afforded a maximum of ten (10) working days to become familim with t.1.e
qualifications oftne prospective arbitrators. The arbitrator shall be selected by each
party, commencing with the party demanding the arbitration, stri.king one name from
the list until only a single nmne remains.
d) Arbitration hearings shall be conducted in Anchorage, Alaska or such other location
as the parties may agree. Each party shall produce at the request of the other party, at
least thLrty (30) days in advance of such hearing, all documents to be submitted at t.he
hea..ri.ng and such ot.her documents as me relevant to the issues or likely to lead to
relevant information.
e) In deciding the claim or dispute, the arbitrator shall follow applicable Alaska law,
and the written decision shall be supported by substantial evidence in LlJe record.
Failure to apply Alaska law, or entry of a decision that is not based on substa.'1tiai
evidence in the record., shall be additional grounds for modifying or vacating all
arbitration decision.
Lease Agreement betv,een City of Seward and Seward
Chamber of Commerce
8 Cl December 2005
<J Page]9 of28
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improvement by reason of a change in LESSEE's use ofthe Leased Land or operations there
from, LESSEE shall either construct such improvements at LESSEE's own cost or reimburse
CITY for such work at the option of CITY.
ARTICLE 19 - ENVIRONMENTAL CONCERl\TS
19.1 Hazardous Materials.
a) Condition of Site. LESSEE has had full opportunity to exa.rnine the site for the
presence of a.l1Y Hazardous Material and accepts the site in "as is" condition.
LESSEE Inay elect, at LESSEE's sole cost, to conduct a baseline soils test prior to
execution of this LEASE.
b) Release of CITY. Any other provision of this LEASE to the contrary notlvlth-
standing, LESSEE releases CITY from any and all claims, demands, penalties, finEs,
judgments, liabilities, settlements, damages, costs or expenses (including, without
limitation, attorney's fees, court costs, litigation expenses, a.l1d consulta.l1t and expert
fees) arising prior to, during, Bud after the term ofthis LEASE, and resulting from the
use, keeping, storage or disposal of Hazardous Material on the Leased La11d by
LESSEE or its predecessors in interest, or arising out of or resulting from LESSEE's
operations at the Leased Land or the operations of its predecessors in interest at the
Leased Land except for those claims a.nsLl1g out of CITY's sole negligence or
intentional misconduct. This release includes, without limitation, any &?J.d all costs
incurred due to any investigation of the Leased Land or any clea...?J.up, removal or
restoration mandated by a federal, state or local agency or political subdivision or by
law or regulation.
c) Use of Hazardous Materials on the Site.
i) LESSEE shall not cause or permit any Hazardous Material to be brought
upon, kept or used in or about the Leased Land except for such Hazardous
Material as is necessary to conduct LESSEE's authorized use ofLhe Leased
Land.
ii) .A.ny Hazardous Material permitted on the Leased Land as provided L'1. 111is
paragraph, and all containers therefore, shall be used, kept, stored and
disposed of in a malIi1.er that complies with all Environmental Laws or other
laws or regulations applicable to such Hazardous Material.
iii) LESSEE shall not discharge, leak or emit, or permit to be discharged, leaked
or emitted, any material into the atmosphere, ground, ground water, sewer
system or any body of water, if such material (as reasonably determined by
the CITY, or any governmental authority) does or may, pollute or
Lease Agreement between City of Seward and Seward
Chamber of Commerce
91 December 2005
- Page 21 of28
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f) Hazardous Material Defined. As used in this LEASE, Hazardous Material is any
substance which is toxic, ignitable, reactive, or corrosive or which is regulated by any
Environmental Law. Hazardous Material includes any and all material or substaTlces
which are defined as industrial waste hazardous waste, extremely hazardous waste or
a hazardous substance lLl1der llilY EnviroI1.mental Law. Notwithstanding any statutory
petrolemn exclusion, for the purposes oftms LEASE, the term Hazardous Material
includes, without limitation, petrolemn, including crude oil or any fraction thereof,
petroleum soaked absorbent material and other petroleum wastes.
g) Environmental Law Defined. As used in this LEASE, Environmental Laws include
any and aHIocal, state and federal ordinances, statutes, and regulations, as now in
force or as may be amended from time to time, relating to the protection ofhumal1
health and the environment, as well as any judgments, orders, injunctions, awards,
decrees, covenants, conditions, or other restrictions or standards relating to same.
Environmental Laws include, by way of example and not as a limitation of the
generality of LfJ.e foregoing, Alaska Statutes Title 46, the Resource Conservation and
Recovery Act of 1976, the Comprehensive Environmental Response, Compensation
and Liability Act of 1980, the Clean Water Act, and the Superfund Amendments and
Reauthorization Act of 1986.
19.2 Permits and Reporting.
a) Permits Required by Other GovernmentalAgencies. LESSEE shall obtain aU peI1l1its
or approvals required by any applicable law or regulation. Copies of all such permits
shall be provided to CITY prior to LESSEE commencing work under this LEASE.
LESSEE shan promptly make all reports to any federal, state or local government or
agency required by any permit or Environmental Law, including reports of any spill
or discharge of Hazardous Material. The CITY, through the City Manager, may
order LESSEE to immediately cease any operations or activities on the Leased Land
if the S&'11e is being ca;ried out 'vvit.'1out necessary permits, in violation of the terms of
any permit or Environmental Law, or contrary to this LEASE.
b) Correspondence With and Reports to Environmental Agencies. LESSEE shall
iw.mediately provide CITY with copies of all correspondence and notice, including
copies, of all reports between LESSEE and any state, federal or local goveITI.-rnent or
agency regulating Hazardous Material which relates to LESSEE's operations on or
use of the Leased Land.
ARTICLE 20 - ESTOPPEL CERTIFICATES
Either party shall at any time and from time to time upon not less than ten (10) days' prior
written request by the other party, execute, acknowledge, and deliver to such party, or to its designee,
Lease Agreement between City of Seward and Seward
Chamber of Commerce
December 2005
Page 23 of28
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Tbis LEASE shall be governed by, construed and enforced in accordance with the laws ofllie
State of Alaska. The terms of this LEASE are subject in all respects to the Charter alld Code of
Ordinances of CITY in effect on the date of this LEASE, and as they may be hereafter aInended,
including without limitation, Chapter 7.05 of'l~e Seward City Code.
ARTICLE 28 - P A...RTIAL INV ALInITY
If any provision of tbis LEASE is held by a court of competent jurisdiction to be invalid, void
or unenforceable, the remainder of the provisions shall remain in full force 3-nd effect and shall in no
way be affected, impaired or invalidated.
ARTICLE 29 - RELATIONSHIP OF PARTIES
NOLhing contained in this LEASE shaH be deemed or construed by the parties or by any third
person to create the relationship of principal a..,d agent or of partnership or of joint venture or of 3-11Y
association between CITY and LESSEE; and neither Lhe method of computation of rent, nor 3-ny
other provisions contained i.'1 this LEASE nor any acts of the parties, shall be deemed to create aI1Y
relationship between CITY and LESSEE other than the relationship oflessee and lessor.
ARTICLE 30- INTERPRETATION
The l&'1guage in all pM:s of this LEASE shall in all cases be sin1ply construed according to its
fair meaning and not for or against CITY or LESSEE as both CITY and LESSEE have had the
opportunity to seek assistance of counsel in drafting and reviewing this LEASE.
ARTICLE 31 - CAPTIONS
Captions of the articles, paragraphs and subparagraphs oftbis LEASE are for convenience
and reference only, and tbe words contain_ed tberein shall in no way be held to explain, modifY,
aD.1plifY or aid in the interpretation, construction or mea.Tling of the provisions of this LEASE.
ARTICLE 31 - A1VlENDMENT
Tr,is LEASE is not subject to aD.1endment except in wTiting executed by both parries hereto.
ARTICLE 33 - NOTICES
All notices, demands or requests from one party to anotber shall be delivered in person or be
sent by mail, certified or registered, postage prepaid, to t.he addresses stated in tbis l\-,-rticle and to
such other persons alld addresses as either party may designate. Notice by mail shall be deemed to
have been given at the time of mailing.
Lease Agreement bet1.veen City of Seward and Seward
Chamber of Commerce
December 2005
Page 25 of28
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IN WITNESS WH.-EREOF, Lhe parties hereto have set their hands and seals the dates
herein set forth.
CITY:
LESSEE:
CITY OF SEWARD
SEWARD CHAMBER OF COMMERCE,
CONFERENCE Al'!AJ VISITORS BUREAU,
INCORPORATED
By:
Its:
Date:
{Iv!- tJ~.
Clark Corbridge
City Manager
12-c'-o'}-
~La ~~"
By: Laura Clowaro/'
Its: Executive Director
Date: 1.;1 - 7 - 0 ~
AITE-S-T'. ~v~~~~y~~t~;,~~~:~
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STATE OF ALASKA ) G1U~n"."~
) ss.
THIRD JUDICiAL DISTRICT )
TIllS IS TO CERTIFY that on this (jJ'1"'- day of .Getem!u.v, 2005, before me, the undersigned,
a Notfuy Public in and for the State of Alaska" personally appeared Clark Corbridge, k.noVvTI to me
and to me known to be t.he City Manager fur the City of Seward, Alaska, aIld aut.horized to execute
docu.rnents on its behalf, and is the individual named in and who executed the foregoing docwnent
on behalf of the City of Seward for the uses &'1d purposes therein set forth.
VlITNESS my hand fuld notarial seal the day and year first hereinabove VvTitten.
if I /- dcu
/ / / ^
~?1 t/JtC /A -..././ 7 /&~
Notary Public in and for Aliiska
My Commission Expires: --::t . z;; . () ~
Lease Agreement between City of Seward and Seward
Chamber of Commerce Q
December 2005 v
Page 27 of28
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Council ~Agenda Statement
Meeting Date:
September 26, 2005
Through:
;
Clark Corbridge, City Manager Cttt/L C(-l(- OF;;
Kirsten Vesel, Assistant City Manager K'tdJ
From:
Agenda Item:
Granting a new Lease to the Seward Chamber of
Commerce, Lot 4 Fort Raymond Subdivision, Plat
No. 86-lIt
BACKGROUND & JUSTIFICATION:
The Seward Ch3-mber ofCollL.merce entered into a lease with the City of Seward on August 28, 1989.
This Lease encompasses Lot 4, Fort Raymond subdivision, Plat No. 86-10. The Seward Chamber of
Com.merce requests the City Council's grant of a new lease of the same piece of property. The
resolution and form presented at this meeting provides the requested new lease, subject to consent by
the City. If approved by City Council, the lease ,viI! be effective in 30 days.
CONSISTENCY CHECKLIST:
Where applicable, this agenda statement IS consistent with the Seward City Code, Charter,
Comprehensive Plans, Land Use Plans, Strategic Plan and City COli..T1cil Rules of Procedures.
FISCAL NOTE:
The rent is Four Thousand DoHars ($4,000.00) fulllUally, subject to fair market value increases every
five years. However, this lease provides a waiver for no rent due as long as the site is used by the
Lessee for the operations of a Chamber of Commerce office/ visitor information center.
Approved by Fi..nance Department J6~j-l~A/'~
RECOMMENDATION:
COli.l1cil approve Resolution 2005- S'5 authorizing the City Mfu'1ager to enter into a Lease to the
Seward Chamber of Commerce for Lot 4 Fort Raymond Subdisivion, Plat No. 86-10.
QO
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