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HomeMy WebLinkAboutRes2022-030 UAF & Alutiq Lease Sponsored by: Bower Public Hearing: March 14, 2022 CITY OF SEWARD,ALASKA RESOLUTION 2022-030 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, APPROVING THE TERMINATION OF THE SUBLEASE AGREEMENT BETWEEN THE UNIVERSITY OF ALASKA AND THE CITY OF SEWARD,APPROVING LEASE AMENDMENT 1 WITH CRRC, APPROVING LEASE AMENDMENT 4 WITH THE UNIVERSITY OF ALASKA AND TO APPROVING THE MOA BETWEEN THE UNIVERSITY AND CRRC WHEREAS, in 1991, the city leased land to the University of Alaska; and WHEREAS, the city subleased Tract 1 B back from the University of Alaska to support the Alutiiq Pride Marine Institute; and WHEREAS,the city leased Tract l B to Alutiiq Pride Marine Institute(CRRC)since 2006; and WHEREAS, CRRC and University are requesting to upgrade their infrastructure on the lease land; and WHEREAS, in order to amend the lease with the University and CRRC the city needs to terminate the sublease with the University; and WHEREAS, CRRC has requested to amend and extend their lease to 2069 for the ability to acquire grants to upgrade the facility; and WHEREAS, the University has requested a need for a section of land that CRRC leases, which requires both leases to be amended and the land re-platted; and WHEREAS,the University and CRRC along with the city negotiated a MOA to authorize replatting and lease amendments; and WHEREAS, CRRC has demonstrated that it has the administrative capability to operate the Facility and to insure and maintain the property; and WHEREAS, the University has proven their commitment to Seward and capability to move forward with upgrading the infrastructure and maintaining their facility. NOW,THEREFORE,BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SEWARD,ALASKA that: r.. CITY OF SEWARD,ALASKA RESOLUTION 2022-030 Section 1. The City Council approves the termination of the sublease of Tract 1 B between the City of Seward and the University. Section 2. Seward City Council approves Lease Amendment 1 to the CRRC lease. Section 3. The Seward City Council approves Lease Amendment 4 to the University's lease. Section 4. The Seward City Council approves the MOA between the CRRC and the University and the City as presented at this meeting. Section 5. The Seward City Council finds that the essential terms and conditions of Lease Amendment No. 1 to the CRRC lease and the method of the lease extension are in the public interest. Section 6. The Seward City Council finds that the essential terms and conditions of Lease Amendment No. 4 to the University lease and the method of the lease extension are in the public interest. Section 7. This resolution shall take effect thirty(30)days upon adoption. PASSED AND APPROVED by the City Council of the City of Seward, Alaska,this 14th day of March, 2022. T C T SEWA KA C 'sty Terry, ayor AYES: Wells, DeMoss,Casagranda, Calhoon, McClure, Terry NOES: None ABSENT: Osenga ABSTAIN: None ATT ST: Orit :renda J. Ballou, •F s ". City Clerk �••V�� oRPo2q�q'Pp'; G (City Seal) : ? —.— ��': t. • ( SEAL i •�'. is � 'ti. City Council Agenda Statement Meeting Date: March 14, 2022 To: City Council Through: Janette Bower, City Manager From: Norm Regis, Harbormaster Agenda Item: Resolution 2022-030: A Resolution of the City Council of Seward, Alaska approving the termination of the sublease agreement between the University of Alaska and the City of Seward, approving Lease Amendment No. 1 with CRRC and Lease Amendment No. 4 with the University of Alaska, approve the MCA between the City, University and CRRC. Background and justification: The Alutiiq Pride Marine Institute (APMI) has operated at its current location for over 25 years. It strengthens the local economy by providing stable jobs and provides support for food security in Seward and throughout the Chugach region. APMI is owned and operated by Chugach Regional Resources Commission (CRRC), a federally-recognized consortium that provides natural resource management and economic development services for seven tribes, including the Qutekcak Native Tribe in Seward. The APMI facility is on land that CRRC leases from the City, which the City owns (Tract 1B). CRRC has leased Tract 1B from the city since 2006. The University has leased Water Front Tracts from the City of Seward since 1970, and has used a portion of the property("Tract 1A')for the SMC,and since 2003 sub-leased another portion of the property ("Tract 1B") back to the City which the city leased to CRRC for operation of the hatchery located on Tract 1B. The University needs a portion of tract 1B to renovate the SMC. If a portion of Tract 1B is used by the University CRRC will need to lease additional property from the City to be positioned for hatchery renovation or expansion. Changing the properties being leased to CRRC and the University requires replatting. It also requires amendments to the existing leases so that instead of a lease to the University and a sublease to CRRC there are standalone lease agreements between the City and each entity and that the University-City sublease of Tract 1B be terminated. With the cooperation of both parties a proposed MCA, proposed termination of the sublease with the University and proposed lease amendments to the leases with the University and the CRRC are before the Council for approval. CRRC and the University have accepted the proposed agreements and the City Attorney has participated in negotiations and is not recommending any changes. Council may also request amendments following conclusion of the public hearing based on Council desires or based on input from the public. The University, City and CRRC will work together through the MCA to fulfill University and CRRC development plans. Comprehensive and Strategic Plan Consistency Information This legislation is consistent with (citation listed): Comprehensive Plan: 3.1.1.6 Support existing public institutions in Their effort to maintain, expand and develop. Strategic Plan: Page 6 Attract More Public Sector Federal V State Employment and Program Funding Other: Certification of Funds Total amount of funds listed in this legislation: $ This legislation (✓): Creates revenue in the amount of: $ Creates expenditure in amount of: $ Creates a savings in the amount of: $ X Has no fiscal impact Funds are (✓): Budgeted Line item(s): Not budgeted X Not applicable Finance Director Signature: Attorney Review✓ Administration Recommendation X Yes X Adopt Resolution Not applicable Other: LEASE AMENDMENT NO. 1 (RE-2021 Lease and Operating Agreement for the Alutiiq Pride Marine Institute and Shellfish Hatchery) 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",and Chugach Regional Resources Commission,a non-profit corporation organized under the laws of the State of Alaska, 1840 Bragaw Street, Anchorage,Alaska 99508 ("CRRC"), hereby agree that the Lease and Operating Agreement for the Seward Alutiiq Pride Marine Institute and Shellfish Hatchery dated January 25, 2021, ("the Lease") is hereby amended as set forth below: The ninth WHEREAS clause of the Lease, beginning "WHEREAS, the City has determined that a new Lease of the Facility . . ." is deleted in its entirety. 1. Article 1. Definitions is hereby amended to read as follows: 1. Definitions The following terms shall, for the purposes of this Agreement, have the following meanings: "Agreement" means this Lease and Operating Agreement for the Alutiiq Pride Marine Institute and Shellfish Hatchery. City" means the city of Seward, Alaska. "CRRC" means the Chugach Regional Resources Commission. "Facility" means, collectively, the MPF and MTC and all ponds,parking areas, Structures and land on or pertinent to the Site as depicted in Exhibit A to this Lease. "Force Majeure" means acts of nature, acts of the enemies of the United States of America, sabotage, blockade, insurrection, riot, epidemic, fire, flood, explosion, earthquake, tsunami, civil disturbance or war. "Hazardous Material" means any substance: (a) the presence of which requires investigation or remediation under any federal, Alaska State or local statute, regulation, ordinance, order, action, policy, or common law; or (b) which is or becomes defined as a "hazardous waste," "hazardous material," "hazardous chemicals," "hazardous substance," "oil," "pollutant," or"contaminant" under any federal, Alaska state or local statute, regulation, rule, or ordinance or amendments thereto including, without limitation, the Comprehensive Environmental Response,Compensation and Liability Act(42.U.S.C. Section 2701 et seq.), the Oil Pollution Act of 1990 (33 U.S.C. Section 2701 et seq.), Title 46 of the Alaska Statutes, and applicable portions of Title 18 of the Alaska Administrative Code. "Improvements" mean any and all improvements subsequently constructed or placed on the LEASE AMENDMENT NO. 1 Paee 1 Site, including but not limited to driveways,parking areas, buildings,potable water systems, seawater systems (Intake System), fuel tanks, electrical or utility systems, sanitary systems, sheds,ponds, and other structures. "Intake System" means all facilities now existing or which may be constructed or installed in the future that are owned or used by CRRC that are required for the collection, transmission, and delivery of seawater from Resurrection Bay to the MTC, MPF, and related ponds required for CRRC mariculture operations, and includes but is not limited to the seawater intake apparatus, pumping stations,pumps, generators, meters, valves, equipment,pipes, mixing systems (if any), and all appurtenances thereto. "MTC" means Mariculture Technical Center. "MPF" means Mariculture Production Facility. "Property" means Tract 113-1 Plat No. 20-21- a replatting of Tracts IA and 1B Waterfront Tracts Subdivision, Mariculture Addition, Plat No. 97-18, located in the Seward Recording District, Third Judicial District, State of Alaska. "Site" means Tract 113-1 Plat No. 20-21- a replatting of Tracts IA and 1B Waterfront Tracts Subdivision, Mariculture Addition, Plat No. 97-18, located in the Seward Recording District, Third Judicial District, State of Alaska. "SMC" means the Seward Marine Center located on real property leased by City to the University of Alaska ("University") under a separate lease agreement. "Term" means the forty-eight-year term of this Agreement, effective January 25, 2021 through June 30, 2069, unless extended or terminated as provided herein. 2. Article 2. Leased Premises is amended to read as follows: 2.1 Premises Leased. City leases the Property and the Facility to CRCC. 2.2 Property accented "As-is." CRRC acknowledges that it is fully aware of the condition of the Property and the Facility and accepts the same "as-is" and without reliance on any expressed or implied representations and warranties of City or agents of City as to the actual physical condition or characteristics thereof. 2.3 Seawater Intake Requirement. City recognizes and understands that CRRC's seawater Intake System, including pumping stations and pipes, passes through the SMC before reaching the MPF, MTC, and ponds and that CRRC's mariculture operations are dependent upon the uninterrupted supply of seawater. Without a seawater supply, CRRC's operations would be compromised after 12 hours and existing spat, aquatic plant seed stock, and all mariculture stock would be jeopardized. The Parties are aware that University has plans to demolish the SMC at some point during the Lease term, renovate the structure, and dredge the adjoining waters. Such actions, if undertaken by University without CRRC having a replacement or backup intake in place,jeopardizes CRRC mariculture operations at the Site. City shall therefore facilitate periodic communication between University and CRRC regarding University's renovation and dredging plans which impact CRRC's intake so as to LEASE AMENDMENT NO. 1 Page 2 permit CRRC to ensure such plans do not interfere with CRRC's requirement for an uninterrupted supply of seawater for its mariculture operations. City agrees to consider in good faith requests by CRRC for the acquisition of easements in other areas of the City, if required by CRRC, for the construction and installation of an alternate seawater intake system that will be required to be in place before demolition of the SMC or dredging of nearby waters by University impacts CRRC's use of the existing Intake System. 3. Article 4. Management and Operation of Facility is amended to read as follows: 4. Management and Operation of Facility. CRRC shall maintain, operate, and control the Facility and shall do so to a standard that is comparable to that of other well- operated and maintained marine research facilities throughout the United States; provided, however, that City and University keep CRRC apprised of any renovation plans by University to the SMC or nearby waters that place at risk CRRC's uninterrupted supply of seawater to the Site, so that CRRC may timely arrange for an alternate supply of seawater to the Site for its ongoing mariculture operations. 4. Article 4 is amended to add the following provisions: 4.5. Improvements. CRRC shall have the right to erect, maintain, alter, remodel, reconstruct, rebuild, and construct buildings and other improvements on the Site. Any fixtures, machinery, or equipment constructed, installed, placed, or maintained upon any part of the Site by CRRC shall be and remain the property of CRRC and may be removed or replaced at any time by CRRC during the term of the Agreement. Any improvements made by CRRC that are not removed within one year of the expiration of the Agreement shall become the property of City. 5. Article 6 of the Lease is hereby deleted in its entirety, and amended to read as follows: 6. City's Warranty of Quiet Enjoyment. CRRC, upon observing and keeping the covenants, conditions, and terms of this Lease on its part to be kept or performed, shall peacefully and quietly enjoy possession of the Leased Property, Facility, and Site, subject to existing encumbrances, during the term of this Lease without hindrance by, from or through City. City further agrees to facilitate periodic discussions between University and CRRC concerning the respective parties' renovation plans on the real properties leased from City by CRRC and University. 6. Article 7.2 (Utilities) is amended by adding the following sentence at the end of the article: CRRC's obligation for the maintenance, repair, or replacement of any water supply system serving the Facility is subject to Articles 2, 3, 4 and 6 herein. 7. Article 9 of the Lease is hereby deleted in its entirety, and amended to read as follows: 9. Non-Discrimination. CRRC warrants and represents that (1) no person will on the grounds of race, color, or national origin, be excluded from participation in, be denied the benefits of, or be otherwise subjected to discrimination with regard to use of the Facilities, and (2) that CRRC will use the Facility in compliance with all requirements for nondiscrimination imposed by applicable federal civil rights laws. City and CRRC agree to the recording of a nondiscrimination covenant for the LEASE AMENDMENT NO. 1 Page 3 Facility in accordance with the foregoing assurances and 15 C.F.R. § 8.5(b)(5) if a property transfer occurs. 8. Article 10 of the Lease is hereby deleted in its entirety, and amended to read as follows: CRRC shall be solely responsible for paying for all labor performed upon or materials furnished to the Facility, including maintenance or repair, furnished at the request of CRRC. CRRC shall keep the Facilities under CRRC's jurisdiction free and clear of all mechanics', labor, or materialmen's liens arising from the performance of labor upon or furnishing materials to the Facility. CRRC shall post and record notices of nonresponsibility for the benefit of the City pursuant to AS 34.35.065, AS 34.35.150, and any other applicable laws. CRRC contemplates applying for grants or financing to improve the Facility or purchase equipment or fixtures with a lender or granting agency who may require a security interest therein. CRRC may create, or permit to be created, such liens against its leasehold interest as may be required to secure such funding. CRRC shall hold the City harmless from all costs or liability resulting from such improvements. Nothing herein shall provide CRRC with the authority to create, or permit to be created, any security interest or lien against the City's ownership interests. 9. Article 15.1 A is amended to read as follows: A. On June 30, 2069 unless extended or terminated as provided in this Agreement. 10. Article 15.1(B) of the Lease is hereby deleted in its entirety. 11. Article 15.1(D) of the Lease is hereby deleted in its entirety. 12. Article 15.2 (Option to Extend) is amended by revising the introductory sentence to read: CRRRC shall have the right to extend the term of this Agreement for up to five (5)renewal terms of five (5)years each, unless a Party to this Agreement gives at least two (2)years written notice to the other Party that this Agreement shall terminate at the end of its then current term ("Termination Notice"), provided that: This Amendment No. 1 is effective as of January 1, 2022. 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 this_day of 2022. LESSOR: LESSEE: LEASE AMENDMENT NO. 1 Page 4 CITY OF SEWARD, ALASKA Chugach Regional Resources Commission Janette Bower, City Manager Willow Hetrick-Price, Director ATTEST: Brenda Ballou City Clerk (City Seal) STATE OF ALASKA ) ss. THIRD JUDICIAL DISTRICT ) THIS IS TO CERTIFY that on this day of , 2022, before me, the undersigned, a Notary Public in and for the State of Alaska,personally appeared Janette Bower, 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 ALASKA ) ss. THIRD JUDICIAL DISTRICT ) THIS IS TO CERTIFY that on this day of , 2022, before me, the undersigned, a Notary Public in and for the State of Alaska,personally appeared Willow Hetrick-Price, known to me to be a Director of the Chugach Regional Resources Commission, a nonprofit corporation , LEASE AMENDMENT NO. 1 Page 5 organized and existing under the laws of the State of 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 Chugach Regional Resources Commission as the voluntary act and deed of said corporation 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: Return to: Harbormaster City of Seward PO Box 167 Seward, AK 99664 LEASE AMENDMENT NO. 1 Page 6 ,586 CITY OF SEWARD/UNIVERSITY OF ALASKA TERMINATION OF SUBLEASE AGREEMENT The City of Seward and the University of Alaska hereby agree to terminate of that certain Sublease Agreement ("Sublease") pertaining to a portion of Tract 1B, Waterfront Tracts Subdivision, Mariculture Addition, Plat No. 97-18 dated May 28, 2003, Seward Recording District, Third Judicial District State of Alaska ("the Termination"). The Termination is made pursuant to Section 7(a) of the Lease. The effective date of the Termination shall be the date Amendment No. 4 to that certain Lease Agreement between the City of Seward and the University of Alaska dated March 7, 1991 memorialized by that Memorandum of Lease recorded in Book 60 Page 776, Seward Recording District as previously amended is fully approved and executed by both the University of Alaska and the City of Seward. Dated this day of , 2022. CITY OF SEWARD UNIVERSITY OF ALASKA By: By: Janette Bower Its: City Manager Its: ATTEST: By: Brenda Ballou Its: City Clerk CITY OF SEWARD Termination of Sublease Agreement Page 1 AFTER RECORDING RETURN TO: City Planner City of Seward Box 167 Seward, Alaska 99664 CITY OF SEWARD Termination of Sublease Agreement Page 2 LEASE AMENDMENT NO. 4 (Re 1991 Lease Agreement) THIS LEASE AMENDMENT, made this day of March, 2022, by 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", and the University of Alaska, 910 Yukon Drive, Suite 211, Fairbanks, Alaska 99775, a constitutional corporation of the State of Alaska, hereinafter referred to as "University," amends that Lease Agreement, dated March 7, 1991, as memorialized by a memorandum of lease recorded April 8, 1991, at Book 60,Page 776 in the records of the Seward Recording District, Third Judicial District, State of Alaska, amended by Lease Amendment No. 1 dated December 17, 1997,recorded at Book 88,Page 903, in the Seward Recording District, further amended by Lease Amendment No. 2, dated September 9, 2002, recorded at Book 115, page 694, Seward Recording District, and further amended by Lease Amendment No. 3, dated May 28, 2003, and recorded January 21, 2004 as document 2004-000137-0, Seward Recording District, is hereby amended to read as follows: ARTICLE I is amended to read: LEASED LAND. City leases to Lessee, and Lessee leases from the City that certain real property herein called "Leased Land," situated in Seward, Alaska, and more particularly described as follows: Tract IA, Waterfront Tracts Subdivision, Mariculture Addition, according to Plat 97-18, located in the Seward Recording District, Third Judicial District, State of Alaska, EXCEPTING THEREFROM,that portion of Tract IA starting at the corner formed by L4 and L3 of the current boundary between Tract IA and Tract 1B, , as depicted on Plat 97-18; thence S 65°14'24" E a distance of 59.09 feet; thence S 24'23'13" W a distance of 154.31 feet to a point on the current southern boundary of Tract IA; thence N 84'15'25" W a distance of approximately 32.56 feet to the current boundary line between Tract I and Tract 1B; thence along the current boundary between Tract I and Tract 1B, Line L6, N 31°00'22"E a distance of 52.54 feet; thence along the current boundary between Tract IA and Tract 1B, N 05°44'35" E a distance of 97.75 feet; thence along the current boundary between Tract IA and Tract 1B, Line L5, S 84°15'25" E a distance of 5 feet; thence along the current boundary of Tract I and Tract 1B, Line L4, N 05°44'35" E a distance of 20 feet to the corner between L3 and L4, the point of beginning, the excluded area consisting of approximately 6,224 sq ft, more or less; And A portion of Tract 1B, Waterfront Tracts Subdivision, Mariculture Addition, according to Plat 97-18, located in the Seward Recording District, Third Judicial District, State of Alaska, more particularly described as: beginning at the North East Corner of said Tract 1B, the true point of beginning, thence S 32°59'28" E a distance of 116.15 feet along the boundary between Tract IA and Tract 1B; thence S 57°00'32" W a distance of 72 feet along the boundary between Tract IA and Tract 1B; thence N 32°59'28" W a distance of 116.15 feet, to the boundary of Tract 1B adjoining Railway Avenue; thence N 57°00'32" E a distance of 72 feet along the boundary of Tract 1B adjoining Railway Avenue to the true point of beginning, consisting of approximately 8,362.8 square feet more or less. ARTICLE V (LEASE TERM), Subsection 1 is amended to read: LEASE AMENDMENT NO. 4 Page 1 1. Commencement and Expiration. The term of this lease commenced July 1, 1970 and ends June 20, 2119. ARTICLE XX(MODIFICATION OF EARLIER LEASE) is amended by adding a paragraph to read: The sublease agreement entered into May 28, 2003, under which the University subleased to the City of Seward Tract 1B (with certain exceptions) for a term ending May 31, 2028, memorialized by a Memorandum of Sublease recorded January 21, 2005 as document 2004- 000139-0, Seward Recording District, is hereby terminated. This Amendment No. 4 is effective as of January 1, 2022. 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. LESSOR: LESSEE: CITY OF SEWARD, ALASKA University of Alaska Janette Bower, City Manager Adrienne Stolpe, Chief Lands Officer ATTEST: Brenda Ballou City Clerk (City Seal) STATE OF ALASKA ) ss. THIRD JUDICIAL DISTRICT ) THIS IS TO CERTIFY that on this day of , 2021, before me, the undersigned, a Notary Public in and for the State of Alaska,personally appeared Janette Bower, 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: LEASE AMENDMENT NO. 4 Page 2 STATE OF ALASKA ) ) ss. THIRD JUDICIAL DISTRICT ) THIS IS TO CERTIFY that on this day of , 2021, before me, the undersigned, a Notary Public in and for the State of Alaska,personally appeared Adrienne Stolpe, known to me to be the Chief Lands Officer of the University of Alaska, a constitutional corporation, organized and existing under the laws of the State of Alaska, and authorized to execute documents on its behalf as such officer thereof, by authority of its Board of Regents, and is the individual named in and who executed the foregoing document on behalf of the University of Alaska as the voluntary act and deed of said corporation 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: Return to: Harbormaster City of Seward PO Box 167 Seward,AK 99664 LEASE AMENDMENT NO. 4 Page 3