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HomeMy WebLinkAboutRes1994-079 . . . Sponsored by: Tones CITY OF SEWARD, ALASKA RESOLUTION NO. 94-079 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, AMENDING CITY LEASE PROCEDURES BY ESTABLISHING CITY LEASE ADMINISTRATION POLICIES WHEREAS, city lease procedures were last amended via the passage of Resolution No. 94-041 on March 29,1994; and WHEREAS, the City Council has indicated its desire that lessees reimburse the city for all costs associated with proposed lease amendments, sublets, assignments and consents to assignment; and NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, that: Section 1. City of Seward Resolution No. 94-041 is hereby rescinded. Section 2. City of Seward Lease Policies and Procedures, a copy of which is attached and incorporated herein by reference, is hereby ADOPTED and shall apply to proposals to lease any and all city owned lands and to the administration of all current and future leases of city owned lands. 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 13th day of June, 1994. THE CITY OF SEWARD, ALASKA 1DCJNf?. w-. 0~ Dave W. Crane, Mayor AYES: NOES: ABSENT: ABSTAIN: Anderson, Bencardino, Crane, Darling, Krasnansky, Sieminski None O'Brien None . . . City of Seward, Alaska Lease Policies and Procedures LEASE PROPOSAL POLICIES AND PROCEDURES The following procedures were adopted by the Seward City Council to guide those presenting lease proposals and the city administration in the handling of proposals to lease city-owned lands. A. Prospective Lessee shall submit to the City Manager a written development plan, including conceptual site and building elevation drawings, for any parcel of land to be considered for leasing. The development plan shall include proposed construction commencement and completion dates. B. Within 30 days of receipt of a proposal, including the written development plan as outlined above, the City Manager shall present the proposal to the City Council. C. Not later than 30 days following presentation to the Council, the City Council shall determine whether it is in the public interest to consider leasing and development of the subject property. D. If the City Council finds that it is in the public interest to allow leasing and development of the subject property, the proposal shall be submitted to the Planning Commission at its next regular meeting for review and comment. Following its review, the Planning Commission shall submit its written recommendations to the Council regarding the proposed development, including any special lease conditions the Commission determines to be in the public interest. E. The Planning Commission's written recommendations shall, subject to established agenda deadlines, be submitted to the City Council at its next regular meeting. Following its review of the Commission's recommendations, the Council shall determine whether to reject the proposal outright, solicit proposals through the RFP process or instruct the administration to proceed with lease negotiations with the proposer. Such instructions shall include any special lease conditions determined to be in the public interest. F. If the City Council directs the administration to proceed with the lease negotiations, the prospective Lessee shall, within 10 calendar days, deposit with the city a cash performance bond in an amount not less than one-half the first year's lease payment as estimated by the city administration. City of Seward, Alaska Attachment A Resolution No. 94-079 Page 1 . . . G. If the prospective Lessee does not diligently pursue lease negotiations within 60 days of the date that the Council consents to the commencement of said negotiations, the entire performance bond shall be retained by the city as liquidating damages. H. If the city and the prospective Lessee reach an impasse and are unable to come to terms on a lease agreement, the performance bond shall be returned to the prospective Lessee after deducting lease document preparation costs incurred by the city. Such costs shall include, but not be limited to, appraisals, attorney and staff time, advertising and other incidental expenses. I. If the city and the prospective Lessee reach an agreement on lease terms, the lease documents shall be signed by the prospective Lessee, approved as to form by the City Attorney and forwarded to the City Clerk. Once the Clerk receives the properly signed lease agreement, a public hearing will be advertised and held in accordance with provisions of the Seward City Code, and the lease agreement will be presented to the City Council for action. J. If the proposed lease is approved by the City Council, the resolution approving the lease and the lease agreement shall be posted for thirty days as required by the City Code. Barring the filing of a sufficient referendum petition to set aside the lease, the lease shall then become effective 30 days after passage and posting. Once the lease agreement becomes effective, the city shall deduct from the performance bond all lease preparation costs incurred by the city, including but not limited to appraisals, attorney and staff time, advertising and other incidental costs. The remainder of the performance bond, if any, shall be credited towards the rents due, and the Lessee shall be billed in accordance with the city's quarterly lease billing cycle. K. In the event the City Council rejects the proposal or fails to approve the lease agreement within 60 days of the date the negotiated lease agreement is first presented to the City Council, the total deposit shall be returned to the prospective Lessee. 1. The City Council may waive any or all of these requirements as it deems necessary to ensure successful completion of the lease negotiations. LEASE ADMINISTRATION POLICIES AND PROCEDURES The following procedures were adopted by the Seward City Council to guide lessees and the city in the fair conduct of business associated with lease administration: A. Fees set by resolution of the City Council will be assessed to cover administrative time, copying costs, phone calls, postage, legal notices and other costs associated with processing all lease assignments, amendments, and sublet consent actions City of Seward, Aloska Attachment A Resolution No. 94-079 Page 2 . . . requested by lessees. Additionally, lessee will pay all recording fees and will reimburse the city of city attorney time in connection with the requested action or actions. B. Lease assignments and sublet consent requests will be reviewed, processed and approved as administrative functions subject to: 1. All taxes (real, personal and sales), utilities, lease payments, assessments, licenses and insurance must be current. 2. All appropriate fees must be paid in advance. 3. City sublet approval will not be required for individual tenant space rentals in buildings designed with separate retail and office spaces. 4. Following evaluation and administrative determination, the city may require a personal guarantee by lessees requesting assignments to corporations which are principally owned by lessee and created for tax and liability purposes. 5. insured party. All sublessees must provide proof of insurance naming the city as an 6. The city must be provided a copy of any sublet agreements, including lease amounts, so that the city may forward this information to city appraisers for future fair market value determinations. Copies of the sublet agreements, including lease amounts, will be provided to the City Council at the next regular Council meeting. C. Amendments to leases that change the essential terms and conditions (lease rate, term, land area, or development conditions) may be approved only by resolution of the City Council. Such requested amendments will be scheduled for Council action only after the following terms have been met: 1. All taxes (real, personal and sales), utilities, lease payments, assessments, licenses and required insurance must be current; 2. All appropriate fees must be paid in advance; and 3. The lessee's signature(s) must be in place on all required documents. City of Seward, Alaska Attachment A Resolution No. 94-079 Page 3 CITY OF SEWARD, ALASKA RESOLUTION NO. 94-079 A TIEST: APPROVED AS TO FORM: Wohlforth, Argetsinger, Johnson & Brecht, Attorneys for the city of Seward, Alaska ~t&- City Attorney (City Seal)