HomeMy WebLinkAboutRes2005-042
Sponsored by: Corbridge
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CITY OF SEWARD, ALASKA
RESOLUTION 2005-42
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
AND CONVENTION AND VISITOR'S BUREAU TO EXTEND THE TIME
ALLOWED FOR IMPROVEMENTS RELATED TO THE LEASE OF LOT
11, BLOCK 6, SEWARD SMALL BOAT HARBOR SUBDIVISION, SEWARD
RECORDING DISTRICT, THIRD JUDICIAL DISTRICT, STATE OF
ALASKA
WHEREAS, the Seward Chamber of Commerce and Convention and Visitor's Bureau
("Lessee") seeks to extend the time allowed by its existing lease agreement ("Lease") with the City
of Seward for Lot 11, Block 6, Seward Small Boat Harbor Subdivision, Seward Recording District,
Third Judicial District, State of Alaska; and
WHEREAS, the current lease has been in effect since October 2, 2002 and the Lessee was
required to make improvements to the existing structure to meet current building and fire codes by
March 31,2004; and
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WHEREAS, the Lessee seeks an extension of time until May 31, 2006 to make such
improvements; and
WHEREAS, Lessee's use of the site each year for the Silver Salmon Derby benefits the
entire community; and
WHEREAS, the annual rent was $1.00 per year and is scheduled to increase to fair market
rental value on July 1, 2005, provided that Lessee is excused from paying rent ifit is not in default of
any Lease provisions and meets other requirements of Section 3.7 of the Lease; and
WHEREAS, the proposed amendment would continue the rent credits, with the
understanding that full rent from July 1, 2005 would be immediately due and payable if
improvements are not completed by the Chamber by May 31, 2006.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF SEWARD, ALASKA, that:
Section 1. For the reasons stated in the above recitals, it is in the public interest to enter into
an amendment to the Lease dated October 2, 2002 with the Seward Chamber of Commerce and
Convention and Visitor's Bureau extending the time allowed for the Lessee to make improvements.
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CITY OF SEWARD, ALASKA
RESOLUTION 2005-42
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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 terms and conditions as described therein.
Section 3. This resolution shall take effect thirty (30) days after its adoption and posting.
PASSED AND APPROVED by the City Council ofthe City of Seward, Alaska, this 13th
day of June, 2005.
THE CITY OF SEWARD, ALASKA
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Vanta Shafer, Mayor'
AYES:
NOES:
ABSENT:
ABSTAIN:
Branson, Dunham, Clark, Amberg, Valdatta, Lorenz, Shafer
None
None
None
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ATTEST:
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COUNCIL AGENDA STATEMENT
Meeting Date: June 13, 2005
Through: Clark Corbridge, Interim City Manager
From: Scott Ransom, Harbormaster
Agenda Item: Authorizing the City Manager to Enter into a Lease
Amendment with the Chamber of Commerce for Lot 11,
Block 6, Seward Small Boat Harbor Subdivision to
extend the time for improvements.
BACKGROUND & JUSTIFICATION:
The Seward Chamber of Commerce and Convention and Visitor’s Bureau (“Chamber”) entered into a
lease with the City of Seward in October 2002 for a lot in the harbor area. This Lease encompasses
Lot 11, Block 6, Seward Small Boat Harbor Subdivision in the Seward Recording District. The
Lease required the Chamber to make improvements to the existing building to meet current building
and fire code requirements by March 31, 2004. That deadline has passed and the Chamber now seeks
an extension of time to May 31, 2006 to complete the improvements.
The Chamber is excused from paying rent if it is in compliance with Section 3.7, including completing
improvements in a timely manner. The proposed revision, supported by the administration, would
allow the Chamber to continue being excused from paying rent, but would make rent payable from
June 1, 2005 if improvements are not completed by May 31, 2006.
1. Comprehensive Plan X
Economic Development, Small Boat Harbor Development: expand and maximize potential of the
existing harbor.
2. Strategic Plan X_
Growth Management and Land Use Planning: Promote residential and commercial development
inside the city
3. Other: Municipal Lands Management Plan X
Leases: …continue to dispose of commercial and industrial lands through long term leases…
Small Boat Harbor Management Plan
Lands: …ensure that existing lease sites are fully developed…
FISCAL NOTE:
The rent is $1.00 annually through June 30, 2005. Effective July 1, 2005, the annual rent shall be
adjusted to the appraised value. Lessee is excused from paying rent if the requirements of Section 3.7
of the Lease are met.
Approved by Finance Department
RECOMMENDATION:
Council approve Resolution 2005-42, authorizing the CityManager to enter into a lease amendment
to extend the time until May 31, 2006 for improvements described in the City’s Lease with the
Seward Chamber of Commerce and Convention and Visitor’s Bureau for Lot 11, Block 6, Seward
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Small Boat Harbor Subdivision.
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