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Home My WebLink AboutRes2016-060Sponsored by: Hunt CITY OF SEWARD, ALASKA RESOLUTION 2016-060 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, AUTHORIZING A 90-DAY EXTENSION TO THE LEASE WITH THE U.S. DEPARTMENT OF ARMY FOR LOT 9A, FORT RAYMOND SUBDIVISION REPLAT NO. 1(U.S. ARMY REC CAMP) WHEREAS, the City of Seward and the U.S. Army Engineer District, Alaska entered into U.S. Government Lease No. DACA85-5-86-20 on December 17, 1985, which lease has been amended three times; and WHEREAS, this lease covers the property known as the U.S. Army Recreation Camp in Seward, Alaska, and the lease expires on September 30, 2016; and WHEREAS, the city manager is authorized by Seward City Code §7.05.410 to negotiate short-term leases subject to council approval at the next regularly scheduled city council meeting, so long as the lease does not exceed 120 days in length and contains no provisions for optional terms, provided the lease is subject to suspension during the first 30 days after passage of resolution if a sufficient referendary petition is filed in accordance with Section 4.8 of the City Charter; and WHEREAS, the parties request a 90-day extension to the lease in order to finalize negotiations on a new lease which will, among other things, incorporate standard lease language for City leases which represent substantive changes to the lease language as compared to the lease initially approved in 1985. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, that: Section 1. The City Council hereby approves Supplemental Agreement No. 4 to the lease of Lot 9A, Fort Raymond Subdivision Replat No. 1 between the City of Seward and the U.S. Army Engineer District, Alaska, expiring December 31, 2016, in substantial form as attached hereto. Section 2. The lease provides for payment, in arrears, of $4,500 for the period October 1, 2016 through December 31, 2016. Section 3. This resolution shall take effect immediately upon its adoption. PASSED AND APPROVED by the City Council of the City of Seward, Alaska, this 26 b day of September, 2016. CITY OF SEWARD, ALASKA RESOLUTION 2016-060 THE CITY OF SEWARD, ALASKA (af- an Bardarson, Mayor AYES: Casagranda, Keil, Butts, McClure, Altermatt, Bardarson NOES: None ABSENT: Squires ABSTAIN: None ATTEST: Brenda J. Ballo , MC Acting City Clerk (City Seal) �.�;� OF SeyV�., C-�.�ORPOR.q�;•. �O SEAL .A,•� pJ*�.••• OF •��I.9 /./ //y P� 1 Council Agenda Statement Meeting Date: September 26, 2016 To: Seward City Council Through: Jim Hunt, City Manager From: Kristin Erchinger, Finance Director Agenda Item: Authorizing90-day extension to US Army Rec Camp Lease BACKGROUND & JUSTIFICATION: The Seward City Council approved the initial lease of the US Army Rec Camp to the US Army Engineer District, Alaska, on December 17, 1985 for a ten-year term with options to renew for subsequent 10-year terms thereafter, to September 30, 2016. The initial lease was for 12.43 acres more or less, at a lease rate of $10,000 per year for the first ten years, and 25 percent of the fair market rental value of the leased land for subsequent years. The lease was amended as follows: 1) Supplemental Agreement No. 1 dated August 1, 1987 reduced the size of the leased parcel to 11.824 acres more or less; 2) Supplemental Agreement No. 2 dated April 11, 1997 eliminated the determination of fair market rental value of 25 percent of fair market rental value, and assessed annual rent in the amount of $10,300 for the period October 1, 1996 through September 30, 2006; and 3) Supplemental Agreement No. 3 dated September 8, 2006 exercised the option to extend the lease through September 30, 2016, at an annual rental amount of $18,000. The current lease has reached the end of its optional extension periods. The administration is negotiating a new lease which will, among other things, incorporate standard lease language which has been added to City leases since the original Rec Camp lease was approved thirty years ago (i.e. lease appraisals; annual CPI rental adjustments, etc). The new lease is expected to address utility easements, lease appraisals, CPI rental adjustments, performance requirements, etc. Seward City Code §7.05.410 authorizes the city manager to negotiate short-term leases subject to council approval at the next regularly scheduled city council meeting, so long as the lease does not exceed 120 days in length and contains no provisions for optional terms, and provided that the lease is subject to suspension during the first 30 days after passage of the authorizing resolution, if a sufficient referendary petition is filed in accordance with Section 4.8 of the Seward City Charter. The parties request a 90 day extension to finalize negotiations on a new lease. INTENT: To authorize Supplemental Agreement No. 4, representing a 90-day lease extension with the US Army Engineer District, Alaska, for the US Army Rec Camp located at Lot 9A, Fort Raymond Subdivision Replat No. 1, Seward, Alaska, to allow the parties to negotiate a new lease following expiration of the thi - ear former lease. CONSISTENCY CHECKLIST: Yes No N/A 1 Comprehensive Plan: p. 6 "Economic Development - Strengthen and diversify the economy of Seward by working with the private sector and other governmental units. "; P. 19 "Encourage additional nuluaryfacilities that upgrade Seward as a Morale Wel are and Recreation MW destination. " X 2. Strategic Plan: X 3. Other: X FISCAL NOTE: The 90-day lease authorizes a rental payment in arrears, in the amount of $4,500 for the period October 1, 2016 through December 31, 2016, representing the same amount as the existing lease 2nce, which is already anticipated in the approved budget. Approved by Finance Department: d� ATTORNEY REVIEW: Yes No X RECOMMENDATION: Approve City Council Resolution 2016- Obo authorizing a 90-day extension to the US Army Rec Camp Lease in the form of Supplemental Agreement No. 4. SUPPLEMENTAL LEASE AGREEMENT SUPPLEMENTAL AGREEMENT NO.4 ........................................ ............................................. . DATE: ;septernber:16 2016 To Lease No. DACA85-5-86-20 Page 1 of 1 ADDRESS OF PREMISES: Lot 9A, Fort Raymond Subdivision Replat No. 1, Seward, Alaska THIS AGREEMENT, made and entered into this date by and between the CITY OF SEWARD, whose address is Post Office Box 167, Seward Alaska 99664, hereinafter called the Lessor, and the UNITED STATES OF AMERICA, hereinafter called the Government: Whereas, the parties hereto desire to amend the above lease to extend the term of the lease. NOW THEREFORE, these parties, for the consideration of the premises and the consideration hereinafter mentioned, and the mutual benefit to be derived therefrom, covenant and agree that said Lease is amended, effective October 1, 2016, as follows THAT Paragraph 3 of the lease is modified to extend the lease for an additional ninety (90) day period, beginning October 1, 2016 through December 31, 2016, THAT Paragraph 4 of the lease is modified to change the billing address for the Army to 1046 marks Road, Stop 4800, Fort Wainwright, Alaska 99703-6000. Payment for periods less than 12 calendar months shall be prorated THAT Paragraph 4 of the lease is modified to stipulate that rent in the amount of $4,500, payable in arrears, is to cover the lease period from October 1, 2016 through December 31, 2016. THAT the lease is subject to suspension during the first 30 days after passage of the Seward City Council Resolution authorizing this Supplemental Lease Agreement No. 4 if a sufficient referendary petition is filed in accordance with Section 4.8 of the Seward City Charter. FUND CITATION: Ail otherterms and conditions ofthe lease shall remain in full force and effect. IN WITNESS WHEREOF, the parties subscribed their names as of the above date. LESSOR: City of Seward TAX ID NO: 92-6000086 James Hunt (signature) Date City Manager In the presence of: UNITED STATES OF AMERICA i 7 / Michael D. Coy ' ✓ Real Estate Contracting Officer BY: =- 16 SEP 2016 ---- - U.S. Army Engineer District. Alaska (Signature) FJ'.. Date (Official Title)