HomeMy WebLinkAboutRes2015-045 Sponsored by: Hunt
Postponed: June 22, 2015
CITY OF SEWARD,ALASKA
RESOLUTION 2015-045
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD,
ALASKA, AUTHORIZING THE CITY MANAGER TO ENTER INTO A
LEASE AMENDMENT WITH ALASKA LOGISTICS LLC FOR LOT 2,
BLOCK 3 FOURTH OF JULY CREEK SUBDIVISION, SEWARD
MARINE INDUSTRIAL CENTER, KENAI PENINSULA BOROUGH,
_ PLAT NO. 97-27 SEWARD RECORDING DISTRICT, THIRD JUDICIAL
DISTRICT, STATE OF ALASKA
WHEREAS,the city is owner of real property described as Lot 2, Block 3 Fourth of July
Creek Subdivision; and
WHEREAS, this parcel was leased to Alaska Logistics LLC in 2009 for a term of five
years; and
WHEREAS, the parties to the lease want to extend the term for an additional term
ending on December 31, 2113.
WHEREAS,the lease request is consistent with the Comprehensive Plan and the Seward
Marine Industrial Center Plan.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE
CITY OF SEWARD,ALASKA that:
Section 1. The council has determined that the essential terms and conditions of the
proposed lease amendment with Alaska Logistics LLC for the real property described as Lot 2,
Block 3, Fourth of July Creek Subdivision located in the City of Seward, Alaska are in the
public's interest.
Section 2. The City Manager is authorized to execute the lease amendment with Alaska
Logistics LLC in substantially the form as attached.
Section 3. Assignments and subleases shall be approved by the City Council.
Section 4. This resolution shall take effect 30 days from the date and posting of adoption.
PASSED AND APPROVED by the City Council of the City of Seward, Alaska, this 22nd day of
June,2015.
CITY OF SEWARD,ALASKA
RESOLUTION 2015-045
THE CITY OF SEWARD,ALASKA
,r>zrU L L /Lt2 v
an Bardarson, Mayor
AYES: Casagranda, Keil, Terry, Butts, Darling, Bardarson
NOES: Squires
ABSENT: None
ABSTAIN: None
ATTEST:
1 '
• .nna Ki IV MC
it, Clerk
(City Seal)
s OF
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LEASE EXTENSION AND AMENDMENT
(RE-2009-126)
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 ALASKA LOGISTICS, LLC, diva Alaska
Logistics WA LLC, hereinafter referred to as the "LESSEE", hereby agree that the lease
agreement 2009-126 for Lot 2. Block 3, 41h of July Creek Subdivision, Seward Marine Industrial
Center, Third Judicial District, Seward Recording District, State of Alaska is hereby amended as
follows:
ARTICLE 1.7 Development of Leased Land
LESSEE shall continue operate a vessel storage and maintenance facility through the
term of the lease. LESSEE understands that construction and operations of its marine-
related business is a major consideration for the CITY's agreement to the lease the
Leased Land to LESSEE. LESSEE shall not operate any other unrelated business on the
Leased Land without the consent of the CITY.
a) CITY may withhold its consent as to any proposed business or activity which. in
CITY's sole discretion, is not desirable or compatible with the CITY's operation of
the Seward Marine Industrial Center.
b) In accordance with the provisions of Article 12, no assignment or sublease shall be
permitted, unless approved in writing by CITY. Any sublease shall be expressly
subject and subordinate to this Lease and the rights of the CITY hereunder. The CITY
may elect to not approve any proposed assignment or sublease that might result in a
business or activity that, in the CITY's sole discretion, is undesirable and/or
incompatible with the CITY's Seward Marine Industrial Center.
ARTICLE 2.1 Lease term
The term of this lease shall be extended in accordance with Resolution No. 2015-
5 for ninety-nine (99) years and shall terminate on December 31, 2113.
ARTICLE 2.2 Option to Purchase
Should the CITY decide to sell the lease land, as described in section 1.1. Lessee
has an option to purchase and right of first refusal in regard to the Leased Land as
explained below.
During the term of this Agreement. before CITY may sell the Leased Land as an
individual parcel to a third Party, CITY shall first offer the Leased Land to Lessee on the
same terms and conditions as are offered by the third party. LESSEE shall have 30 days
during which to accept said offer. If LESSEE does not accept said offer within said
period, CITY shall be free to accept the third-party offer. If CITY does not enter into an
Page I of 3
agreement with the third party on said terms and conditions and close the transaction
within 180 days, CITY's right to sell the Leased Land to the third party shall expire and.
the procedure described in this Section shall again be applicable.
The provisions of this section are NOT applicable if the Leased Land is offered as
part of an agreement by the CITY to sell all of its land holdings at the Seward Marine
Industrial Center or a portion thereof exceeding ten(10) acres.
ARTICLE 3 RENTAL RATE
The Annual Rental Rate on the effective date of this amendment through June 30.2015 is
$13,288.68 and shall be adjusted on July I, 2015. All other terms of ARTICLE 3 remain
unchanged.
ARTICLE 15.1 Minimum Insurance Requirements
All minimum insurance limits may be increased to confor m to industry standards on
request by City.
17.1 Arbitration
Section (a) is amended to reflect the current,jurisdictional limit of the Superior Court and
all references to Fifty Thousand Dollars ($50,000) are changed to One-Hundred Thousand
Dollars($100,000).
In all other respects, the Lease is to remain unchanged and in full force between the undersigned
parties.
This amendment is effective 30 days from Council approval.
LESSOR: LESSEE:
CITY OF SEWARD ALASKA L ISTICS,LLC
Jim Hunt. City Manager ' agin Part,er
Date: Date: /is
ATTEST:
Page 2 of 3
Johanna Kinney, City Clerk
(City Seal)
STATE OF ALASKA )
) ss.
THIRD JUDICIAL DISTRICT )
THIS IS TO CERTIFY that on this day of , 2015, before
me, the undersigned, a Notary Public in and for the State of Alaska, personally appeared Jim
Hunt, known to me and to me known to be the City Manager for the City of Seward, Alaska, and
authorized to execute documents on its behalf, and is the individual named in and who executed
the foregoing document on behalf of the City of Seward for the uses and 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 WASHINGTON )
) ss.
KING COUNTY )
THIS IS TO CERTIFY that on this � day of `AANQJ , 2015,
before me, the undersigned, a Notary Public in and for the State of Washington. personally
appeared Allyn Long, known to me and to me known to be the Managing Partner
for ALASKA LOGISTICS, LLC 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 the day and year first hereinabove written.
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Page 3 of 3
*Revised a of sF
Agenda Statement ALA
Meeting Date: June 22, 2015 445C.sok
To: City Council
Through: City Manager Jim Hunt
From: Harbormaster Norm Regis
Agenda Item: Alaska Loistics LLC Long Term Extension for Lease 09-126 at Lot 2,
Block 3,4` of July Creek Subdivision, Seward Marine Industrial Center
BACKGROUND & JUSTIFICATION:
Alaska Logistics LLC, has executed a lease extension through December 31, 2113. This is a
ninety-nine year extension beyond the end expiration of the original five year lease. That
contract has been in a month to month holding over status since December 31, 2014. A longer
lease will afford greater security for financing purposes.
The current Municipal Land Use Plan adopted by the City Council designates SMIC lands for
lease.
The parcel is used for boat repairs, especially during the winter months. Five years ago, Alaska
Logistics constructed their building using stacked containers for walls and a truss roof system.
INTENT:
To approve a lease amendment between the City of Seward and Alaska Logistics LLC on Lot 2,
Block 3 Fourth of July Creek Subdivision at the Seward Marine Industrial Center for boat
storage and repair operations.
CONSISTENCY CHECKLIST: Yes No N/A
1 Comprehensive Plan (document source here): This lease meets the plan X
goals to develop SMIC as a major industrial area of the community.
Strategic Plan (document source here): Attract New Industry:
2 Develop an aggressive marketing campaign which highlights the diverse x
resources, and quality of life that make Seward a great place to live and
establish a business or industry. (Page 5)
3. Other (list):
FISCAL NOTE:
The current annual lease amount is $13,288.68 plus tax. The leased property was re-appraised in
early 2015. ���/
Approved by Finance Department: Ji 4
ATTORNEY REVIEW: Yes X No Not Applicable
RECOMMENDATION:
Approve Resolution 2015-045, authorizing the City Manager to enter into a Lease Amendment
with Alaska Logistics LLC for Lot 2, Block 3 Fourth of July Creek Subdivision in the Seward
Marine Industrial Center, Plat No. 97-27 in the Seward Recording District, Third Judicial
District, State of Alaska.