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HomeMy WebLinkAboutRES2023-003 Alaska Logistics Lease Assignment to JAG Sponsored by: Bower Public Hearing: January 9, 2023 City of Seward,Alaska Resolution 2023-003 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA,AUTHORIZING THE CITY MANAGER TO SIGN A CONSENT TO ASSIGNMENT TO JAG ALASKA,INC.,OF LEASE AGREEMENT L 09- 126 WITH ALASKA LOGISTICS, LLC, FOR LOT 2, BLOCK 3, FOURTH OF JULY CREEK SUBDIVISION, SEWARD MARINE INDUSTRIAL CENTER,KENAI PENINSULA BOROUGH AND RECORDED AS PLAT NO. 97-108 IN SEWARD RECORDING DISTRICT, THIRD JUDICIAL DISTRICT, STATE OF ALASKA WHEREAS,Alaska Logistics,LLC("Lessee")has requested an assignment of the existing lease agreement 09-126 with the City of Seward for 2.5 acres,more or less of Lot 2 Block 3,Fourth of July Creek Subdivision,Seward Marine Industrial Center,Kenai Peninsula Borough and recorded as Plat No.97-108 in Seward Recording District, Third Judicial District, State of Alaska, to Jag Alaska, Inc.; and WHEREAS,Article 12 of the Lease provides that the Lessee shall have the right to assign the lease upon findings by the City Council that use is found to be in the public interest,and that the proposed assignee has credit-worthiness and operating experience suitable to manage any facilities on the lease site; and WHEREAS, Jag Alaska„Inc.will continue to use the leased land for operating a business to store vessels, engage in ship repair and maintenance, equipment rent and storage, equipment maintenance,and similar related marine business activities and uses necessary and incidental thereto; and WHEREAS, the current lease has been in effect since December 31, 2009; and WHEREAS,the current lease was extended and amended in Resolution 2015-045 and will expire on December 31, 2113. 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 sign a Consent to Assignment to Jag Alaska, Inc., in substantially the form as attached hereto. Section 2. The recitals set forth above are incorporated herein by reference and adopted as findings of the City Council. For the reasons stated, an assignment to Jag Alaska, Inc., in the form presented at this meeting is found to be in the public interest. CITY OF SEWARD,ALASKA RESOLUTION 2023-003 111 Section 3. This resolution shall take effect thirty(30) days from the date and posting of adoption. PASSED AND APPROVED by the City Council of the City of Seward,Alaska,this 9th day of January, 2023. THE CITY OF SEWARD,ALASKA Cr Sue McClure,Mayor AYES: Wells, Osenga, DeMoss, Finch, Barnwell, Calhoon, McClure NOES: None ABSENT: None ABSTAIN: None ATTEST: Brenda J. Ballou, MC City Clerk ,,���.FSEu.•.,•. Fo �. b : • SEAL I • - • E 1, ' ..•' Q- �� City Council Agenda Statement Meeting Date: January 9, 2022 To: City Council Through: Janette Bower, City Manager From: Norm Regis, Harbormaster Agenda Item: Resolution 2023-003, Authorizing The City Manager To Sign A Consent To Assignment To Jag Alaska Inc., Of Lease Agreement L09-126 With AK Logistics LLC, For Lot 2, Block 3, Fourth Of July Creek Subdivision, Seward Marine Industrial Center, Kenai Peninsula Borough And Recorded As Plat No.97-108 In Seward Recording District, Third Judicial District, State Of Alaska Background and justification: Alaska Logistics LLC currently has Lease L09-126 containing 2.5 acres more or less of Lot 2 Block 3, Fourth of July Creek Subdivision, Seward Marine Industrial Center, Kenai Peninsula Borough and recorded as Plat No.97-108 in Seward Recording District, Third Judicial District, State of Alaska. Alaska Logistics LLC has requested approval to assign the lease 09-126 to Jag Alaska Inc., which will continue to use the leased land for operating a business to store vessels, engage in ship repair and maintenance, equipment rent and storage, equipment maintenance,and similar related marine business activities and uses necessary and incidental thereto. Article 12 of the lease allows lease assignments upon findings by Council that use is found to be in the public interest and that the proposed assignee has credit-worthiness and operating experience suitable to manage the facilities on the leased property. The current lease L09-126 will expire on December 31, 2113. Comprehensive and Strategic Plan Consistency Information This legislation is consistent with (3.5.1.2): Comprehensive Plan: Plan for adequate port infrastructure that will serve the needs of users in the main industrial/Alaska Railroad area and at the Seward Marine Industrial Center (SMIC). Strategic Plan: Attract New Industry: Develop an aggressive marketing campaign,which highlights the diverse resources, and quality of life that make Seward a great place to live and establish a business or industry. Other: Certification of Funds Total amount of funds listed in this $ 16,361.68 legislation: 301 This legislation (✓): X Creates revenue in the amount of: $ $16,361.68 which includes tax Creates expenditure in amount of: $ Creates a savings in the amount of: $ Has no fiscal impact Funds are (✓): X Budgeted Line item(s): Not budgeted Not applicable Unassigned Fund Balance and Available Unrestricted Cash Balance Information Fund (✓): General x SMIC Electric Wastewater Boat Harbor Parking F1 Water F1 Healthcare Motor Pool Other Unassigned Fund Balance*: $ *unaudited numbers Available Unrestricted Cash $ Balance*: Finance Director Signature: Attorney Review x Yes Attorney Signature: Not applicable Comments: Administration Recommendation x Approve Resolution Other: 302 CONSENT TO ASSIGNMENT This CONSENT TO ASSIGNMENT is made by the City of Seward ("City' . RECITALS A. The City and Alaska Logistics LLC, ("AL") are parties to that certain Lease Agreement L09-126; dated as of 12-31-2009, and Lease Extension Amendment 2015-045 dated 7-23-2015 ("the Agreement") as evidenced in that certain Memorandum of Lease recorded 08-03-2015 as Serial No.2015-000708-0; and B. The legal description of the leased property is: Lot 2, Block 3, Fourth of July Creek Subdivision, Seward Marine Industrial Center, Kenai Peninsula Borough and recorded as Plat No.97-108 in Seward Recording District, Third Judicial District, State of Alaska. and C. AL has asked that the City consent to the assignment of all of right, title, and interest in and to the Agreement to JAG Alaska Inc., ("JAG"). CONSENT 1. City hereby consents to the assignment of AL's right, title and interest in and to the Agreement to JAG ("Assignment"). Following the Assignment, the Agreement shall continue in full force and effect with JAG substituted for AL, as applicable. The undersigned has executed this Consent to Assignment as of the date set forth below. City of Seward Date: 306 By: Janette Bower, City Manager ATTEST: Brenda Ballou, City Clerk 307 ASSIGNMENT OF LEASE RE-L09-126 THIS AGREEMENT made and entered into between Alaska Logistics LLC, hereinafter called "ASSIGNOR", and Jag Alaska, Inc. hereinafter called "ASSIGNEE" with the consent of the City of Seward, hereinafter referred to as "Landlord". WHEREAS,by Lease dated December 31,2009 made between THE CITY OF SEWARD, ALASKA, "LESSOR",a home rule municipal corporation,organized and existing under the laws of the State of Alaska, and amended by Lease Extension Amendment Resolution 2015-045 and recorded by Memorandum of Lease 2009-001754-0. The premises, described as, Lot 2, Block 3 Fourth of July Subdivision, Seward Marine Industrial Center,Kenai Peninsula Borough,Plat No. 97- 108 Seward Recording District, Third Judicial District, State of Alaska WITNESSETH,that for valuable consideration paid by the ASSIGNEE to the ASSIGNOR, receipt whereof is hereby acknowledged, the ASSIGNOR assigns to the ASSIGNEE the premises described in said lease, as amended, for the unexpired term of said lease, subject to the payment of rents and performances of the covenants, conditions and stipulations therein. ASSIGNEE covenants during the continuance of said term to pay the rents reserved and to perform the covenants,conditions,and stipulations in said lease,as amended,to be performed by the ASSIGNOR and to keep indemnified the ASSIGNOR against all actions, claims, and demands whatsoever in respect to the said rents, covenants, conditions, and stipulations, or anything relating thereto. IN WITNESS WHEREOF, the parties hereto have set their hands and seals on the dates indicated. ASSIGNOR: ASSIGNEE: Allyn Long, Managing Member Tim Jagielski, Jag Alaska Inc. Date: Date: 308 STATE OF WASHINGTON ) )ss THIRD JUDICIAL DISTRICT ) THIS IS TO CERTIFY that on this day of ,2022 personally appeared before me the undersigned, a Notary Public in and for the State of Washington, to me known to be Allyn Long, Managing Member of Alaska Logistics LLC, a Washington limited liability company that executed the foregoing instrument and acknowledged to me the said instrument to be the free and voluntary act and deed, for the uses and purposes therein mentioned of the corporation and on oath stated that he is authorized to execute said instrument on behalf of the corporation. WITNESS my hand and notarial seal the day and year first hereinabove written. Notary Public in and for Washington My Commission Expires: STATE OF ALASKA ) )ss THIRD JUDICIAL DISTRICT ) THIS IS TO CERTIFY that on this day of ,2022,personally appeared before me the undersigned,a Notary Public in and for the State of Alaska,to me known to be Tim Jagielski, General Manager that executed the foregoing instrument and acknowledged to me the said instrument to be the free and voluntary act and deed,for the uses and purposes therein mentioned of the corporation and on oath stated that he is authorized to execute said instrument on behalf of the corporation. WITNESS my hand and notarial seal the day and year first hereinabove written. Notary Public in and for Alaska My Commission Expires: 309 7 Geographic Information Systems AK Logistics to Jag {'$p'J 144 North Binkley Street,Soldotna,Alaska 99669 je Y. .N .M Legend w a 5� • Mileposts KPB Boundary Place Names �" ° '"y y ," • Towns and Villages °w ° City JELLISON AVE — Highways 'Z � — Major Roads Roads Town Medium Volume Town Low/Seasonal,Other Proposed .• ., . Tax Parcels MORRIS AVE y LW This map is a user generated static output from an Internet mapping site and is for reference only.Data layers that appear on this map may or may not be accurate,current,or otherwise reliable. It is not to be used for navigation. Notes Platt 97-108 DATE PRINTED: 12/6/2022 310