HomeMy WebLinkAboutRes2011-050 Sponsored by: Oates
CITY OF SEWARD, ALASKA
RESOLUTION 2011 -050
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD,
ALASKA, AUTHORIZING THE CITY MANAGER TO ENTER INTO A
LEASE AGREEMENT WITH GLOBAL TOWER ASSETS, LLC, FOR
LOT 1, BLOCK 6, FOURTH OF JULY CREEK SUBDIVISION, SEWARD
MARINE INDUSTRIAL CENTER, FOR THE PURPOSE OF
CONSTRUCTING AND OPERATING A COMMUNICATIONS TOWER
WHEREAS, Global Tower Assets, LLC, ( "Lessee ") has requested a lease agreement
with the City of Seward for 10,000 square feet, more or less, within Lot 1, Block 6, Fourth of
July Creek Subdivision, Seward Marine Industrial Center, Kenai Peninsula Borough Plat number
2001 -2, Seward Recording District, Third Judicial District, State of Alaska; and
WHEREAS, this parcel is vacant land identified in the Municipal Lands Management
Plan as available for lease in the Seward Marine Industrial Center (SMIC); and
WHEREAS, this lease will enable the Lessee to construct and operate a communications
tower and to sublet to additional wireless communication providers upon receiving written
authorization from the City; and
WHEREAS, the proposed lease parcel is zoned industrial and the intended use is
authorized under current zoning regulations; and
WHEREAS, the lease term is through July 31, 2016 however Article 2.2 acknowledges
the Lessee shall have the right, at the Lessee's option to further extend the Lease Agreement for
four (4) additional periods of five (5) years each for possible options to extend until July 31,
2036; and
WHEREAS, the lease rental rate is based on a 2011 appraisal report and includes rental
adjustments every five years based on fair market rental value and interim rental adjustments
based on the Consumer Price Index.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE
CITY OF SEWARD, ALASKA that:
Section 1. The City Manager is hereby authorized to enter into a lease agreement with
Global Tower Assets, LLC, in substantial form as presented at this meeting, for Lot 1, Block 6,
4 of July Creek Subdivision, Seward Marine Industrial Center.
CITY OF SEWARD, ALASKA
RESOLUTION 2011 -050
Section 2. This resolution shall take effect thirty (30) days after its adoption and posting. Upon
effectiveness of this resolution, the lease will be effective July 31, 2011.
PASSED AND APPROVED by the City Council of the City of Seward, Alaska, this 27` day of
June, 2011.
THE CITY 1 F SEWARD, ALASKA
1 11/
illard . Dunham, Mayor
AYES: Valdatta, Smith, Keil, Shafer, Casagranda, Dunham
NOES: None
ABSENT: Bardarson ..w
ABSTAIN: None
ATTEST:
ohanna Kinney
City Clerk
(City Seal)
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Council Agenda Statement
Meeting Date: June 27, 2011
Through: Phillip Oates, City Manager ,, ._
From: Kari Anderson, Harbormaster lj s P
Subject: Lease for Lot 1, Block 6 SMIC with Global Tower Assets
BACKGROUND & JUSTIFICATION:
Initially, McCaw Cellular Communications, Inc., entered into a lease with the City for
1,320 square feet, more or less, within Lot 1, Block 8, Fourth of July Creek Subdivision,
Seward Marine Industrial Center. This leased area encompasses a cell phone tower and
associated electric infrastructure. The Lessee's interests were assigned several times, and
in Resolutions 2005 -23 and 2010 -062 extended the term of this lease (now with DCS
Tower Sub, LLC). However, erosion problems threaten the existing tower and lease site
at Lot 1, Block 8. After evaluating several sites at SMIC, Global Tower Assets has
decided to build a new tower at Lot 1, Block 6.
This leased area encompasses approximately 10,000 square feet. The attached appraisal
report shows the leased site in relation to Nash Road and other leased and private
properties in the Seward Marine Industrial Center. The site will be used only for
construction, maintenance and operation of a cell phone tower and related
communication equipment in conjunction with AT &T's operations as a
telecommunications provider. Any improvements to the site and /or subleases will be
approved by the City in writing prior to construction.
The City will conduct appraisals of its rental property in 2015 and new rental rates are
now in effect, based on fair market rental values. The lease extension includes an annual
adjustment to rent based on the Anchorage Consumer Price Index.
The previous lease for this parcel expired May 24, 2011 with the Seward Lions Racing
Club.
INTENT: To propose a new lease with Global Tower Assets, LLC, for Lot 1, Block 6
Seward Marine Industrial Center for the purpose of constructing and operating a
communications tower.
CONSISTENCY CHECKLIST: Where applicable, this resolution is consistent with
the Seward City Code, Charter, Comprehensive Plans, Land Use Plans, Strategic Plan
and City Council Rules of Procedures or Other Plans or Policies:
Yes (List Below) No
1. Comprehensive Plan
(Economic Development, Support development of modern communications infrastructure)
2. Strategic Plan
(Growth Management and Land Use Planning: Promote residential and commercial development inside the city)
3. Other: Seward Marine Industrial Center Development Plan
(Goal: Sound, Maximized and Coordinated Development of private and public uplands in support of the needs of the users and
visitors. Land use: Uses allowed within SMIC should focus on strengthening and enhancing the area as a center for marine and other
compatible industries.)
FISCAL NOTE:
The annual lease amount is One Thousand, Six Hundred Dollars ($1,600.00) annually,
subject to fair market value increases every five years. The rent will be subject to annual
CPI increases. A new appraisal for all lease parcels in the Seward Marine Industrial
Center is scheduled for 2015.
Approved by Finance Department: erou..e
ATTORNEY REVIEW: YES > NO
RECOMMENDATION
Council approve Resolution 2011 - 6 °authorizing the City Manager to enter into a new
Lease with Global Tower Assets, LLC for Lot 1, Block 6, 4 of July Creek Subdivision,
Seward Marine Industrial Center.
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