HomeMy WebLinkAboutRes1978-035
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7/24/78
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RESOLUTION NO. 78-35
A RESOLUTION AUTHORIZING THE CITY MANAGER
TO NEGOTIATE THE TERMS OF A LEASE FOR A
COIN OPERATED CAR WASH
AND FIXING THE TERMS OF THE LEASE
WHEREAS, the growth of vehicular traffic in Seward has
made it highly desirable for a full-time car wash business to be
established within the city limits, and
WHEREAS, the City is owner of the property described
below which is ideally situated for a car wash business, and
WHEREAS, the City Council hereby finds that the property
has not previously been dedicated to public use, and
WHEREAS, the City Council hereby finds that the public
sale of the leasehold on the property would not be in the public
interest, and that the private negotiation of the disposition of
the land by lease is in the public interest;
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF
THE CITY OF SEWARD, ALASKA, that
Section 1. The City Manager is hereby author-
ized to negotiate with Mr. James T. Pruitt, the
lease of real property owned by the City which
is more particularly described as follows:
A portion of Tract A, North Harbor Subdivision, Seward, Alaska,
more particularly described as follows:
Commencing at the southwesterly corner of Tract A,
thence S.89057'S2" E. 133.17 feet, to the True Point
of Beginning, thence N.89057'52"W.40.00 feet, thence
N.0002'03" E. 5'0.00 feet, thence S. 89057'52" E. 40.00
feet, thence S. 0002'03" W. 5'0.00 feet to the True Point
of Beginning, containing 2000 square feet more or less
Section 2. The terms under which the City Man-
ager is authorized to negotiate the lease of the
property described in Section 1 are set forth in
the lease agreement attached hereto and incorpor-
ated herein by reference.
PASSED AND APPROVED BY THE CITY COUNSIL OF THE CITY OF
SEWARD, ALASKA, this 24th day of July , 1978.
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7/24/78
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AYES:
CAMPBELL, HUGLI, POTTS AND VINCENT
NOES:
GILLESPIE AND LEER
ABSENT: MaTT
ATTEST:
(City Seal)
PAGE 2
CITY OF SEWARD
APPROVED AS TO FORM:
HUGHES, THORSNESS, GANTZ, POWELL
& BRUNDIN
Attorneys for the City of Seward,AK
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;{UGHES THORSNESS
~.t..~T2 POWELL&: BRUNDIN .
ATIORSEYS AT LAW ;
~O~ WEST THIRD AVENUE I
t....-:HORAGE. AK 9950t
(907) 274-7522
LEASE AGREEMENT
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THIS AGREEMENT is made this day of
1978, by and between the CITY OF SEWARD, ALASKA, a municipal
corporation organized and existing under the laws of the
State of Alaska, hereinafter called "Lessor", and JAMES T.
PRUITT, hereinafter called the "Lessee",
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WITNESSETH:
As parties hereto, Lessor"and Lessee agree:
1. PREMISES. Lessor does hereby lease to Lessee,
and Lessee hereby leases from Lessor, upon the terms and
conditions herein set forth, those certain premises located
in the Seward Recording District, Third Judicial District,
State of Alaska, more particularly described as follows:
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A portion of Tract A, North Harbor Subdivision. Seward. Alaska, more
particularly described as follows:
Commencing at the southwesterly corner of Tract A, thence
S.890S7'S2"E. 133.17 feet, to the True Point of Beginning,
thence N.890S7'S2"W. 40.00 feet. thence N.0002'03"E. 50.00
feet. thence S.890S7'S2"E. 40.00 feet, thence S.0002'03"W.
50.00 feet to the True Point of Beginning, containing 2000
square feet more or less.
2. TERM. The term of this Lease shall be for
five (5) years commencing on the date hereof and ending at
midnight on August 31, 1983. This Lease shall automatically
continue from year to year thereafter unless cancelled by
either party by giving written notice of termination at
least forty-five (45) days prior to the expiration of any
term.
3. RENT. Lessee shall pay Lessor the annual
rental stated hereinafter, payable on or before the first
day of September to Lessor at its address set forth following
its signature to this Lease or to such other party or such
other place as Lessor may hereafter from time to time designate
in writing.
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Beginning with the first day of September,
1978, the Lessee shall pay to the Lessor as a minimum basic
annual rental the sum of twenty-two cents ($ .22 ) per
square foot or Four hundred and forty xxxxxxxxxxxxxxxxxxx DOLLARS
($ 440. OOxxxxxxx )
On the first day of September in each year during
the term of this Lease, the annual rental shall be adjusted
(increased or decreased, but never to less than the minimum
basic annual rental) on the basis of the Consumer Price
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HUGHES THDR5NE55
:;';~iTZ POWELL&: BRU N 01 N
ATTOR.NEYS AT LAW
509 WEST THIRD AVENUE
A';CHORAGE. AK 99501
(907) 274-7522
Index Number for the month of July in that year, which
appears in the column "All Items" of the Consumer Price
Index for Anchorage, Alaska. The Consumer Price Index
referred to is the 1978 Consumer Price Index entitled "Revised
Wage Earners and Clerical Workers Index", reflecting the
changes in prices of goods and services purchased by city
wage earners and clerical workers as published by the Bureau
of Labor Statistics of the United States Department of
Labor. If a different Consumer Price Index must be selected
due to changes in method of calculation, the index shall be
chosen which most nearly approximates the revised wage
earners and clerical workers index, with the opinion of
Lessor being conclusive on such selection.
The adjusted rental for each year after the first
year of the lease shall be an amount arrived at by multiplying
the minimum basic annual rental by a fraction, of which the
numerator shall be the index for the month of July in the
year in question and the denominator shall be the index
number for the month of July 1978.
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I 4. USE AND CARE OF PROPERTY. Lessee agrees to
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i use and occupy the property for a two-unit coin operated car
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1 wash only, and for no other use or purpose without first
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Ii obtaining the written consent of the Lessor. Lessee further
Ii agrees not to use the property for any unlawful purpose or
j; for any purposes deemed hazardous or dangerous.
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Lessee covenants and agrees that it will not
suffer or commit any waste of said premises, and at the
expiration of this Lease it will quit and peacefully surrender
said premises in as good a condition as reasonable use and
wear thereof will permit, damage by fires or the elements
excepted.
I: enter upon
'i purpose of
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Lessee shall permit Lessor
the premises at all reasonable
inspecting the same.
and its agents to
time for the
Lessee covenants and agrees that it will not
permit any act to be done that will result in any nuisance,
public or private, arising upon or in any way connected with
the premises above described, or any business or profession
which will constitute a violation of the Federal or State
statutes or regulations, city ordinances, or conflict with
any of the rules or regulations of the Board of Health, or
any undertaking which may be or may hereafter be declared to
be unlawful.
5. ASSIGNMENT AND SUBLEASE. Lessee agrees not to
assign this Lease, sublet the property or any part thereof,
or grant license for use of the property to others, without
first obtaining the written consent of Lessor; and Lessor
agrees that such consent shall not be unreasonably withheld.
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6. UTILITIES AND MAINTENANCE. Lessee shall pay
all taxes and utilities in connection with the premises.
It is agreed that all improvements to the
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, HUGHES THORSNESS ::
IANTZ POWELU BRU N DIN
, ATTORNEYS AT LAW
1509 WEST THIRD AVEN.UE ;i
'ANCHORAGE. AK 99S01 !
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(907) 274-7522 I
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premises of whatsoever kind shall be at the sole expense of
the Lessee.
Lessee agrees to maintain the property in a
clean, safe condition at all times during the term of this
agreement, or any extension thereof, which shall include
full responsibility for the costs of any repairs to the
property necessary to achieve this objective.
Lessee shall use only those soaps and detergents
which are fully biodegradable. Lessee shall have constructed
a drainage system on the premises so that all water utilized
in Lessee's business shall enter the City Sewage System and
not flow into the Seward Small Boat Harbor.
As Lessee operates his business on the premises,
Lessee shall use due care to prevent the accumulation of ice
on the concrete pad which is the premises. Lessee shall
remove all snow and ice from the premises at least once each
day he is open for business. The Lessee is considered "open
for business" for a day if his equipment on the premises
is capable of being operated by the insertion of the proper
money or tokens.
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Lessee shall pick up all trash, papers,
garbage and debris within a radius of twenty-five feet of
the boundaries of the premises not less than three times
each week of the term of this lease.
7. ALTERATIONS. Lessee shall construct a concrete
slab which shall be at least four inches thick and shall cover an
area thirty feet by forty feet. A permanent drainage
system shall be mounted in said concrete pad. Lessee shall
install on said pad a small shed to house the water heating
equipment and other equipment necessary to the operation of
his business. The size and exterior of the building must be
approved by the City Manager prior to commencing construction.
The number, height, design and color of any partitions built
on the premises must be approved by the City Manager prior
to commencing construction.
Lessee shall not make or allow any other
alterations of the premises without the written consent of
the Lessor, and any additions or alterations shall become at
once a part of the realty and belong to the Lessor, except
trade fixtures and trade equipment temporarily affixed to
the premises by the Lessee.
8. INDEMNITY OF LESSOR. Lessee agrees to save
Lessor harmless from any and all damages arising from personal
injuries received by any person or persons whomsoever,
whether employed in or about, or visitors, guests, customers,
or patrons to the demised premises, or any part thereof, and
from any of the appurtenances thereto incident.
9. LESSOR'S LIEN. Lessor shall have a lien on
all property of Lessee used on or situated on the property
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HUGHES THORSNESS
: GANTZPOWELL&BRUNDIN::
ATTORNEYS AT LAW I:
509 WEST THIRD AVENUE Ii
ANCHORAGE. AK 99501 !
(907) 274-7522 ii
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II to secure payment of any indebtedness owing from Lessor to
Ii Lessee at any time during the existence of this Lease or
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i: becoming due under this Lease; and in default of payment,
'I Lessor may take possession of and sell as much of said
Ii property as shall be sufficient to pay any indebtedness.
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10. LIABILITY INSURANCE. Lessee shall maintain
I, at his sole cost and expense, policies of general public
:: comprehensive liability insurance written by responsible
ii, insurance companies licensed to do business in the State of
ii Alaska, insuring Lessee and Lessor, including the naMing of
I, Lessor as a named insured, against liabil ty for personal
ii injury, death or property damage occurring upon, in or about
'. the premises. Said insurance shall afford protection in
Ii limits of not less than $300,000 in respect to injury or
I death to a single person, and to the limit of not less than
I $500,000 in respect to anyone accident, and not less than
I $50,000 in respect to property damage. If at any time
during the term of this Lease a competent insurance agent
agreed upon between the parties hereto determines that the
amount of such coverage is not adequate, Lessee shall increase
the coverage to such amount as shall be deemed reasonably
I adequate.
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Upon the written request of the Lessor,
Lessee shall provide Lessor with copies or certificates
all policies including in each instance an endorsement
providing that such insurance shall not be cancelled or
reduced except after thirty (30) days' notice to Lessor.
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11. REMOVAL OF PROPERTY. Lessee covenants and
agrees that at the expiration of this Lease, he will remove
Ii from the above-described premises all property thereon which
I':..,:, does not belong to Lessor; and, in the event Lessee fails to
do so within thirty (30) days, all property remaining
I' thereon will become the sole property of Lessor.
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12. ACTS OF DEFAULT. The following are acts of
default on the part of the Lessee:
(a) Use of the premises for purposes other
than those enumerated herein to which Lessor has not given
its written consent.
(b) Failure by Lessee to comply with any of
the other provisions of this agreement.
(c) Use of the premises in such a way as to
constitute a public nuisance as defined in the Seward City
Code.
(d) Violation by Lessee of any
State environmental statutes or regulations as
or hereafter enacted.
Federal or
now in existence
(e) Cessation by Lessee of an active car wash
business for a period longer than nine (9) months.
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(f) The filing by or against Lessee of a
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iHUGHES THORSNESS I
~.sn POWELL&: BRUND1N
~:'TTORNEYS AT LAW .
11.09 WEST THIRD AVENUE :!
io;~~~r;';~E1'4~~59292501 I:
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Ii STATE OF ALASKA
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ii THIRD JUDICIAL DISTRICT
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THIS IS TO CERTIFY that on this day of
1978, before me, the undersigned, a Notary Public in and for
the State of Alaska, duly commissioned and sworn as such,
personally appeared C. E. JOHNSON, known to me and to me
known to be the City Manager for the CITY OF SEWARD, ALASKA,
a municipal corporation organized and existing under the
laws of the State of Alaska, and he acknowledged to me that
he executed the above and foregoing document for and on
behalf of said municipal corporation and he further acknowledged
to me that he had the power and authority to do so as granted
to him by the CITY OF SEWARD, ALASKA, in its Charter, Bylaws,
or by Resolution.
IN WITNESS WHEREOF, I have hereunto set my hand and
official seal the day and year first hereinabove set forth.
Notary Public in and for Alaska
My Commission Expires:
STATE OF ALASKA )
) ss.
THIRD JUDICIAL DISTRICT )
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THIS IS TO CERTIFY that on this day of
1978, before me, the undersigned, a Notary Public in and for
the State of Alaska, duly commissioned and sworn as such,
personally appeared JAMES T. PRUITT, known to me and to me
known to be the individual named in and who executed the
above and foregoing document, and he acknowledged to me that he
executed the same as his free and voluntary act and deed for
the used and purposes therein set forth.
IN WITNESS WHEREOF, I have hereunto set my hand
and official seal the day and year first hereinabove set
forth.
II
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Notary Public in and for Alaska
My Commission Expires:
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HUGHES THORSNESS BY
;,t..srzPoWELL& BRUNDIN
A TTOANEYS AT LAW I'
~:lg WEST THIRD AVENUE
l..'iCHORAGE. AK 99501 j\
(907) 274~7522 !
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petition in bankruptcy or the commencement of a proceeding
regarding Lessee as a debtor under State insolvency laws or
an assignment by Lessee of any of his assets for the benefit
of creditors.
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If Lessee should allow an act of default to
continue for a period exceeding thirty (30) days after
receipt of a Notice of Default from Lessor, Lessor shall
have the right to terminate the Lease and reenter and retake
the premises without further notice to the Lessee.
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13. LEGAL ACTION. Should it be necessary for
Lessor to bring legal action against Lessee for the collection
of monies, waste to the premises, legal action in ejectment
or any other legal action which might be brought by Lessor,
Lessee agrees to pay the costs of such legal actions together
with reasonable attorney's fees.
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Each and every clause and condition herein
contained shall be binding upon and inure to the benefit of
the heirs, executors, administrators, representatives and
assigns of all parties hereto.
The provisions of this Lease and all questions
shall be determined and resolved in accordance with the laws
of the state of Alaska.
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14. ENTIRE AGREEMENT. This Lease, and the exhibits
attached hereto and forming a part hereof, set forth all of
the covenants, premises, agreements, conditions and under-
standings between Lessor and Lessee governing the demised
premises. There are no covenants, promises, agreements,
conditions and understandings, either oral or written,
between the parties other than those herein set forth.
Except as herein provided, no subsequent alterations, amendments,
changes or additions to this Lease shall be binding upon the
Lessor or Lessee unless and until reduced to writing and
signed by both parties.
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15. NOTICES. All notices to Lessor shall be
mailed to the address of the Lessor following Lessor's
signature to this Lease Agreement unless Lessee in writing
is advised of a different address. All notices to be given
to the Lessee may be given to the Lessee by mailing to the
Lessee at the Lessee's address set forth following the
Lessee's signature to this Lease Agreement or such other
address as the Lessee shall in writing hereafter advise the
Lessor.
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IN WITNESS WHEREOF, the parties hereto hereunto
set their hands and seals as of the date first herein written.
LESSOR:
LESSEE:
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i CITY OF SEWARD, ALASKA
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JAMES T. PRUITT
C. E. JOHNSON
CITY MANAGER
JAMES T. PRUITT
ADDRESS:
ADDRESS:
PO Box 337
Seward, AK 99664
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