HomeMy WebLinkAboutRes2004-096
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Sponsored by: Shealy
CITY OF SEWARD, ALASKA
RESOLUTION 2004-96
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
SEWARD, ALASKA, TERMINATING LEASES RE-67-038 AND
RE-84-037 AND AUTHORIZING THE CITY MANAGER TO
ENTER INTO A NEW LEASE AGREEMENT WITH JURIS
MINDENBERGS FOR LOT 3B, BLOCK 1, MARINA
SUBDIVISION
WHEREAS, Juris Mindenbergs currently leases Lots 3A and 7, Block 1, Marina
Subdivision for the purposes of operating the Breeze Inn Motel, restaurant and shops; and
WHEREAS, Mr. Mindenbergs plans to expand his motel facility and relocate the
lobby entrance to the Lot 7 area; and
WHEREAS, Lots 3A and 7, Block 1, Marina Subdivision will be replatted into
Lot 3B, Block 1 for this purpose; and
WHEREAS, in order to obtain more favorable financing, Mr. Mindenbergs
requests a new lease for Lot 3B encompassing the entire property and extending the lease
term, and requests termination of the existing leases; and
WHEREAS, the City Council has determined that the continued development of
the harbor area and operation of a motel, restaurant and shops at Lot 3B, Block 1, is in
the public interest.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF
THE CITY OF SEWARD, ALASKA, that:
Section 1. For the reasons stated in the recitals and incorporated herein by this
reference, it is in the public interest to replace the existing leases with a new lease
covering the replatted leased land and extend the lease term. The City Manager is
authorized and directed to enter into a lease agreement with Juris Mindenbergs in
substantial form as attached hereto; notwithstanding the foregoing, the City Manager may
make such changes or corrections as needed to finalize the lease transaction but without
changing the essential terms and conditions as set out in the attached lease. The City
Manager is also authorized to sign and record any and all related documents in
connection with this transaction including the plat, the lease termination and the
memorandum of lease.
Section 2. The lease shall not be effective until the leased land is surveyed and a
plat filed to reflect the lease site dimensions as consolidated and including any easements,
rights of way, and the like as requested by the City. The final plat is subject to approval
by the City through the City Manager. The effective date of the lease shall be the date it
CITY OF SEWARD, ALASKA
RESOLUTION NO. 2004-96
is signed by the City, and Leases RE-67-038 and RE-84-037 will be terminated upon
such effective date.
Section 3. The lease rate will be at the existing rate for the combined lease
payment amount reflecting the year 2000 fair market appraisal adjustments as applicable
under the two existing leases. The lease rate under the new lease will be subject to
periodic re-appraisa1s as provided in the lease, and, for this reason, the public interest will
not be served by requiring an appraisal at this time.
Section 4. This resolution shall take effect 30 days after adoption and posting.
PASSED AND APPROVED by the City Council of the City of Seward, Alaska
this 27th day of September 2004.
THE CITY OF SEWARD, ALASKA
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Vanta Shafer, Mayor
AYES:
NOES:
ABSENT:
ABSTAIN:
Dunham, Branson, Amberg, Valdatta, Clark, Anderson, Shafer
None
None
None
ATTEST:
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COUNCIL AGENDA STATEMENT
Meeting Date: September 27, 2004
Through: Phil Shealy, City Manager
From: Scott Ransom, Harbormaster
Agenda Item: Terminating leases RE-67-038 and RE-84-037 and
authorizing the City Manager to Enter into a New Lease
Agreement with Juris Mindenbergs for Lot 3B, Block 1,
Marina Subdivision.
BACKGROUND & JUSTIFICATION:
Juris Mindenbergs has two leases (RE-67-038 and RE-84-037) with the City of Seward to operate
the Breeze Inn Motel, Restaurant and various shops in the harbor area. These leases encompass Lots
3A and 7, Block 1, Marina Subdivision. He is planning to replat these lots into one, expand his motel
and relocate the motel lobby on what is currently Lot 7. Lot 7 has an existing building which will be
demolished to make room for the new development. These existing leases (which would run to 2014)
will be terminated and combined into one lease for Lot 3B, Block 1, Marina Subdivision.
In order to obtain more favorable financing, Mr. Mindenbergs has requested a new lease for the
property, terminating the existing two leases and combining them into one lease for a new 30 year
term. The lessee is current on all real, personal and sales taxes, utilities, lease payments assessments,
licenses and required insurance. An appraisal is not necessary at this time because the year 2000
reappraised rates from the prior leases will be continued, and the lease rates will be adjusted in 2005
and each five years thereafter under the terms of the lease.
A similar lease was approved by council in October 2003. This is before council again because the
Lessee requested changes to the approved development conditions.
1. Comprehensive Plan X
Economic Development, Small Boat Harbor Development: expand and maximize potential of the
existing harbor.
2. Strategic Plan X_
Growth Management and Land Use Planning: Promote residential and commercial development
inside the city
3. Other: Municipal Lands Management Plan X
Leases: …continue to dispose of commercial and industrial lands through long term leases…
Small Boat Harbor Management Plan
Lands: …ensure that existing lease sites are fully developed…
FISCAL NOTE:
Estimated staff and legal time costs to close out the existing leases and create the new lease is $5,500.
These leases generate $46,000 in annual rent, which will be the same annual rent for Lot 3B.
Approved by Finance Department
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RECOMMENDATION:
Council approves Resolution 2004-____ terminating leases RE-67-038 and RE-84-037 and
authorizing the CityManager to enter into a new lease agreement with Juris Mindenbergs for Lot 3B,
Block 1, Marina Subdivision.
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