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HomeMy WebLinkAboutRes1992-157 . . . Sponsored by: Schaefermeyer CITY OF SEWARD, ALASKA RESOLUTION NO. 92-157 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, AMENDING CITY LEASE PROCEDURES WHEREAS, the city of Seward continues to have public property available for long term lease to prospective industries and businesses; and WHEREAS, it is important that all prospective lease proposals are treated in a fair and equitable manner; and WHEREAS, city lease proposal procedures established by city of Seward Resolution No. 84-114 need refinement and clarification; NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, that: Section 1. City of Seward Resolution No. 84-114 is hereby rescinded. Section 2. City of Seward Lease Proposal 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. 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 28th day of September, 1992. THE CITY OF SEWARD, ALA AYES: NOES: ABSENT: ABSTAIN: Bencardino, Crane, Krasnansky, White None Dunham, Swartz None . . . City of Seward, Alaska Lease Proposal Procedures The following procedures were adopted by Seward City Council Resolution No. 92-157 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. The City Manager shall, subject to established agenda deadlines, present the lease proposal at the next regularly scheduled City Council meeting for authorization to proceed with lease negotiations. C. The City Council may approve or reject any proposal, provided, however, that such action shall be forthcoming within 60 days of the date the proposal was first presented to the Council. D. If the City Council directs the City Manager 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. E. 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. F. 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. G. If the city and the prospective Lessee reach an agreement on lease terms, the lease documents shall be signed by the prospective Lessee and approved as to form by the City Attorney. A public hearing will then 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. City of Seward, Alaska Attachment A Resolution No. 92-157 Page 1 . . . SEP-ll-92 FRI 15:40 C lTY OF SEWARD FAX NO. 9072243248 P.GS ooope~t.f;l and assist L!:SSEE in LESSEE's planning' QnQ ol1gineln'1ng of tholle illlprovements and. further, tQ a.liJliJist in coard1na:t:ing the actual connection of those utilities to the Cit.y system. Cl:'1'Y agrees t.o make rea.sotlal:11e efforts to pZ'ovide connection of ut.i1it.ie. to the cit.y eyatemf however, ~hlil partios 1"~!ze that circumlltances MY arise, includ1.n9 the avallal:)ili~y and pri~J:'lty 0' Ut.iLity lIenice crew., which :ai.ght nat be ad.equau to meet. tBSSD'. neec!s. u:ssa lib-all not: be G:nt.1tled to a.ny retund. rd:lau, or payme1'lts f'rO!l1 CI'1'Y f'cr any rent, invest11I.ent, or coats inc:surred by tiJ!lSSEB with respect to a.ny required petlllits toZ' oonstruction or oparat:ion of tBSSEE's facilities on the leased. land, 11: ~ng the intent of the parti.. that the risk of obtaining Z'.qtrtred p8nits ])e SOlely a risk underta.ken by U:SSD. 5.2"-Thi~ P~1iZY l:lM)rov"lIIen~ll. A~ th.:a requ.st e<t USSER, CITY shall, frail t. ma t.o t;i.l\l8, .x.cute and d.liver or join in exec:ut:.ion anc! deli"Gry o~ sUCh doClUlAnts as are appropriate, nee..sU!' or taqqiracJ. to 11l1POse upon 1:he leased land ilnd in accordance with tha term.a of 1:111& Aql'eemant covenants, oonclitions and restrioticms providing for tb.e qrant.in; of uses of' the leased land, or any part theraotl the 8II'tal:1lish:lllent of party wall., the 6etBlis'bll1en1:. ox mu.tual and reciprocal pu-lI;ing :tights or dg.b1:. of i.nqress or ~ess, or other like matters (berein called. nt.hi.rd- party imprcvementgn" all of which ar. ~or the purpose of the orderly development of t.b4 lea..el land all it commercial unit subject., however, 'to the ocntllt.iot\S tbat: a) All such matters shall be limited to the lea.. te1:lll and ~ll tarmi1\aU upon t.ermination of the Lealie for whate...er reaSon. b) Any such matters of ill permanent nAture axt.ending beyond tt1e learsu t:erm _hall no't be '3':t:anted withou-= tbe prior written approval of CITY~ In IIny of the foregoinq instanC!es referred to in this Section, -C1'rr-iihaU-' l)e-.wi'thout:. expense the:efoZ'o, and. ~e ~OGt. and expBJUl. the.reo1: shall be barne 1lO1eJ.y by LB$SEE. c) At. the expiraeion of the laase term (includ.ing any ektended period] 1:hi:'d party ilnprtlvC!.1Ilents on t:h8 leased. land othe~ t:han portcmle aquipllU!t1-t shall beeoma the property of ellfl! without: tho payment of any OCDpensation to LBaSEE. S.3-..J'ut:ure 111.51I!!f,,,",,n1;,l. In order to provide fO~ the more O%d.e1'~y commercial developaLElnt of t:he leued. land cmd. ad:! aeent. landa, and. publioly owned fae11itles in tbe Sew.r4 Marine :rndu:tt:rial e&nt:e.r &%liIa. it may be. necessar.:,r, desirable or raquired tha.t :otrlM't., r.1lrotlC!, wat:er, saver, cS~ainaqe, 'I"', pcwlilr line and otber elUlemen'ta and 4edicatiol1S and similar t'1gh1:S bEl qrM~e.d or dec!ica'ted OV4U' or witl1in portions of the leased land. As a.dditional consideratioll for t:hia lease, both CX'l'Y anei L!S8D ah;a11, {l,t: t.he request of t.h.II ather, join with each other in KO'l'AlUt :tEASB 4 S0"d 81;>2[1;>22l.06l 01 ~~l~W / N3~~~MHS~ WO~~ 8[:1;>l 266l-1;>l-d3S . . . SEP-11-92 FRI 15:41 C 11Y OF SEWARD FAX NO. 9072243248 p.oa ~eeutin9 and daliv.ring such doot.l:lllent:s from time Co time and throughout. the lease term as may bEl appropria.tlil, necessary, or l:'equlred by the several qovernmental a.genc.l.e&i (inoluding the Cit.y Of SeWard), pUblio utl1ities and ether users or tenants of the ~enBral leas.e area for the purpose of qrl.ntinq .ueh oase1ll/!lntll and dediaat1ons; provided, however. ~i!lt $uch eaaemunts and cleclloatioftSl and aiJaUa:t' l"ight_ do not unrealllonably interfere with LEBSR'S efficient operat.ions. The costs of looatinlJ or relocating any public ..semen'!:s or- rest.r1ctiontJ of reccrd. including- MY retode'tion of ~11o road, railroad., utility, or other easement. shall ba lilt the .ol~ OQst. and. expense of the party requesting the reloca.ti.on. CITY shall not rofn8 reallonable requests for such relocationlll prov1c1acl 'thoM relocations do net. int.erfere with or inhi.bit th. overall Clevelopment of !:he general lease area. AnY easeaents or riqhts oot accue CJr2IntAl! t.O LBSSBE by C%'l'Y need 'not. 1)8 exolusive to LESSEE. I.,'UCH 6. ..- fdlT'IJRN 01' PRBK1SI!S(8J:'1'B ClO!!ll'l'~ 7.1--~a~Urft of Premise~ i~ Ori~ina1 candit~an. Upon termination of this lease for any Aason, LESSEE M.all return the leased la.nc1 to CJ:'l'Y in the good eOndidon, us~l. as it. was originally :I.J'l.tand.ed. '!'he lRued land 'hall ~ tree of all hzard.QWI Material at the leasod. land. arisinq out ot or resulting f~om LESSEE'S ope~ations of the leased. land. Ul'l':tCLIl 7 .... :raRe!: MJJ2DUl 'In the evant either t.BSSEE or CITY is dalaye4 :trOll puformanc8 o~ any of its c~li;ations ~nder this 1...., due to Bets Of God, aQ1:a Of t:he enemies of the Un:l.ted status of ~erlea, war, illllxltaCiJB, hlcckada, inaurre.cticm, riot, epidelllic, fi:t1Js, floods, eJl;plosioM, eaJ:thquakes/t.sUJWI\i Ot' ciVil dist:.ut't:lanea, the UP peried. wherein such perfotma.n~. is to occur shalll:le eXtended by that iUlount ot: t11le nec4Ssary to compensa1:e for--tJ1e- delay.-.- - ..---- )RT:leLB 9. -- LISS!!.' S l\.Q'1'8 OP t11ll'AUM! EaCh of tl1e following shall be a nLTiiSSEE Act: of Default- undar this leA" and. d1e ten15 -"ct.s gf default:" and. "defaultll shall mean, whenever they lire used in t:bis lel1l11., any CIne or mora of the tOllowinq event.: a) Fa.ilu:re by LESSEE to pay pro1'l.ptly when due the rentals l!equuod. 1:0 be pald under '!:his leasa. l:i) Pallure by LESSli12 to obSGlrve. fUlfUl or per~orD. any oovenants. conc.U.t.iona or .qreements on it:s part to be observed or KC'l'ARR LEAS!: .5 90"d 8\7clZ\7cc.!..061 01 ~~13W / N3~~~MHS~ wo~~ 8lZ:\71 c661-\71-d3S SEP-11-92 FR! 15:42 . . . C ITV OF SEWARD FAX NO. 9072243248 P.07 perfoJ:1\\ed under this l..se for a period of five(05) days after written notice specifying such failure, request:ing that it be remedied, and stating that it is a notice of default, bas been given t.o LESSEE :by CITYJ providAd, howe"!!!!:', that if .aid. default i. such that it caMot be corrected within the applicable period, it sha~l not conat.itute an act of ciefault. it corrective action is inIJt1tUi:ed by tBSSEE within the applicable ~dod and d1Hqent.ly pursued until tM clefault is carreetecl. c) The making by LESSEE ot an ausignment for the benefit of creditors, the filiJl9 of a petition in bankrupt.cy by lIESSJi:E, the adjudica:ti.on ot LESSEE liS insolvent: (ll~ bankrupt:, the petition or applicat.ion by LESSEE t.o any tribunal for any receiver ot' any t.ruet_ for itself or for any substantial part ot its propert.Y1 or the commencement o~ any p~oceeding relatinq to ~SJi:E under any ba.nkru.ptcy, iNlolvency, rElorqanization, arranqeaent or readjustment ot debt law or statuta or similar law or statute of any jurisdiction. whe1:her now or herli!Clft.er 1n effect whiob. .ball remain undia1sead tor ill period of six (6) months tram the date of CQ1IlIIenc.1llEInt th~eot. d) Violation by UiSSBE of any laws or :r:eCjJUlations ot the United stat.., or of 1:11e St.ate of Alaska, or any concUtions ot ,an.y P4ntits issued lly agencies of the city of seward., the 1Cel'\a1 Peninsula Borough, the St.ate of All1llka or of the Unit.ed. States Gove=munt pursulmt: to the requlations ot such aqanciaa, fok' a period of thirty (30) days after written notice specifyinq such violation has been given ])y the aqenc:y charqed with the enf.orcement of such laws, regW.ations or permits to L!SSBE; provided, however, if sucb viola~ion be such that it cannot. be corrected within the applicable periOd, it. shall not. eons~itute an .ct of de-fault if corrective action i. instituted by LESSEE within thQ aI~licahle period and diligently pursued until the violation is corrected. Purthermore, if tJ!lssa shall eontast -such alleq$CI violat.ion through approp:r:-iate judiCial or administrati-.re-channelt1r-the tine period spetlified. herein shall net: commence until such proceecUnqs are f'inally <letemined provided such proceedings are 4 iligen~ly pursued., provicled, however, that allY such extension of tip shall not: 1:Ie effective if the effect of the interim adlllinistrat.ive or jUdic1al aotion i. to Clluae a stoppage, in'l:.ltl:1:Upti.on or 'threat: to the activities of any P4irson or entity other than those of Ii!Ssn. JUl'1'tOLB g. - 1U!1l1l1DXJlS POR DElI'AULIJ!I 1lY LBSSBB Whenever an act ot default by LESSEE shall have occurred, anCt any applioable period for giving notice and any opportunity to curB shall have expirell, CITY shall have the followinV riqhUl and remed1e8 in addition to ~y riqhts and remeciies that ~y be qiven to CI'l'Y by statut.e,. C01llDl.on law or otherwiae: a) CITY JllliLY distrain for rent due any of! LESSIE'_ McTA1lR L1!ASJ:: 5 1.0"d 817C:~17C:C:1.061 O.L ~~l~W / N3~~~MHS~ WO~~ 6~:171 C:661-171-d3S . . . SEP-ll-Q2 FRI 15=42 C IT'!' OF SEWARD FAX NO. 9072243248 P.oa personal property Whioh OOllles into CI'l'Y's pOlisassian. This l:'emed.y shall incluCle the riqht of CI'l'!I/ to dispose of perBonal III:OPer1:.y distraine(l 1n any cxm:meroiillly ;t"ea5ona.ble manner. It shall ~Q conclusively pr..waed that compliance ..,.i~ the procedure. !;tat !orth in the. Alaska uniform C:ODl1IIercid Code (A.S 45.09.504) with respe.ct to $al. of p~perty _ball ~e a oommeroially reasonable di8~osal. D) exn may n..~te:r the basad lanCl and take possession the:t:eof 8ndt eKeept:. tor ilny perAonal propet1:yof LESSEl!: which ctn has valved 1t:... right ~o distrain UlIdAr sutl-part (a) abOVII, ruiwe all p.rsonal property of ~SSBS fr01ll the leased land. Such ptU:Sonal property lIaY ~e stm!ed in place or may be rUlOVed. and stored. 1n a pUblio vaNhoose or elsewhar. at th4 cost of tiBSSE2 all without service o~ notice or resort to le9'Al process, all of whiCh LEsSEE expressly waives. c) Declare thia lease te~nated. d) eoU.= any and all rent. due or to become due from. sub-tenants oX' other OOgUpant. gf 1:he leasec! land. e) ReOOVCU:, whether this lea..:. be 1:erminated 03:' not, rGasonable attorney's: files fr01ll LESSEll and all otheX' expenses incunood by'CIlJ:IY by reason of th4 breach or defaUlt. by LESSEE. r) ReCOVer an lll'IlClunt: to be dus illllD.ediately en breach 4qual to the rent: reserved under this lell.lle dbcounted to -tbe uu or such breach at the rate of e:l.i;lht percent. (8%) per yeaz-. tf 'the leased. land or any part tnereof be re-le't. by CITY for ~e unexpir.ci term at this lea.., CITY lihall reimburae to LISSIE upon r..de1pt. lrl amount. not 1;0 exceed the. amount received by Cl'l'Y under this sac:t.ion. q] If t.I!lSS:u d.oes not. UmGdiately lIurrendar pru;session of 1:110 lea.ed land atter tGX'ltinat.ian by Ct'l''ll and UpOD demand by CIft, CITY _Y forthwith enter into and upon ancl repossess the leased. 1aru1 and expel LESSb wit:hcut be'D'l13-CSee1llladqui1"ty-1n any llWUl8:1:' o~ uA.pas8 1it.nd withO\1t prejudice ~C1 any rBIDadi.s which lIl1.ght ot:h$rwiss be USed for arrea.rs of rent or br8ach ot covenant. h) No expiration or termination of thb leal!le .ball expire 01:' term:Lnata iUly lul:lllity or obliqat.ion to p.3rton of ~SBlil'liI which arolls p:dcr to the tena1nlltioft or eitpint.icn except insofar as otbenise al:Jreed to in thlD lease. i) lle.eb. right. and ::-emedy ot er.L'~ provi~ fer in this lea.. shall be cumulll~ive and shall ~e 1n addition to e\~ other right: or remedy prcvidad for in this lease or ~ow or hereafter exisi:.i,ng at law or in equity or bY statuta or otherwise, &Dc! t;h. ex.roue or baginn1nq ot the exercise by CiTY or any OM Qr mo;r_ of the riqhts and rqedies provided tor in this lease Cl:' now or he:rea.f'ter Gxi,atinq a.t law or in equity or by I5tatute 0:1; otheniae Mc'.rARR L!ASE 80"d 7 8PG!:PGG1.061 01 ~~lOW / N3~~~MHS~ WO~~ 0p:pl G661-pl-d3S . . . SEP-l1-92 FRI 15:43 CITY OF SEWARD FAX NO. 9072243248 P.OS ~hall not pr~elUde th. simultaneous or later exe~o1.e by C~y of any or all other riqhi:$ or rellledie$ provided tor in this lease or now Or thereafter existinq at law, or in equity or 1Jy st.a.t:.ut:e or o1;harwil1'8. j I NO d.lilJ.ilY or olllission t.o ue:rei_ any riqat or power accruing' fOllowing an act of c!efaul t: shan impair any .uch. riqht. oX' paWE or sball be tlOtUIlt.:rued to be .. waiver thereot, but any auc:h right ilnt1 powAl:' 1I2.y ~ exaraised. fr01l\ time to time and as otten as may lJ. l!eUlild expedient. ~J(!TdI 1D. ...S'tIPIM. 1tg)' 01' DB M" OJ" S1tDlm The city IIhall enjoy tne "spec:;le.l. :d9h'tu ~ en~.r and 1ftOV8 the salt to another portic:m of the Seward Karine !n4u.triaJ. cen'te:t' upon 5 4ays ~lt.t.en not:ice to laBel". !t 'tbe cit.y moves t.h8 D.odU1es under the tenus of this art.:!.cle it: tahall be entiUed. to red.1v. OClllpePBa'Uon in 'the 81110unt of actUal COStlS incurr" in tho 1l1QVe p1uII an add1'tiona.l 2st tor admlll.1stration IInd pla.nn1ng. Tt.e lessee ~ll endeav01' to mOVR the salt within the five day notic:. period if possible. ~\'YCL. 11. INTI!lN'1'IONALLY LD"l' ar.ANX Aa'l'IO!.B 12. - 8UBUlUI OIl ASSImIJIRIIflI 12 .1--Al!Idglllelt,t ot I..,:. of Sublell,!JIina. 'rhe part-iN recognlao tha~ is leaSe has baen determined to be in the publ1g interest by the oi1:1 COlmoU of the City of :seward. LESSE! may not U.ign, sub1eaaa, or sub-tenant th1lil lease 01: any portioJ\ of the leaaed land. AM:rC1:.11 U. - :t.I!ISSBZ'S D1I'l!Y 'f() ~BnJlf) ("InWVlTl'1l'[ LiSSIE shall defend, indenmHy and hold CITY ha.rmless from ami aqainst any and all liatlili ty or clai:ma arising from acts or olllissions of any peJ:.'aon and of any nature whataoever occu.r.dnq on o~ J:Qlat1nq to LESSO's operations u or use ot the site, caueinq injUJ:Y to, or claat.h of persons, or loss of, or aiilUoqe ~o pl:'Cperly, aM frOlll a.ny expense, ineludill9 attorneys fet.ls, in~:.l.deJ1t to the detenae. of and. by CITY ~eretrClJl except: for old.s a:r;b!ng eu'\: of the sola neql1g'lUlcs of the CITY, ita aqenta or employee5. zt lU1y action or proceBdinq is brouqh1: against. Ll'lSSlSB by reason o~ any such occurreno_. LESSEE shall prompUy notifY CITY in ~'ritin9 of Guc:h act:Lgn en: proc;:ee4inq. M'a'U1U\ LIAS!: 8 60"d 817c~17cc1.061 01 ~~l~W / N3~~~MHS~ WO~~ 117:171 c661-171-d3S . . . SEP-ll-S2 FRI 15:44 CITY OF SEIoIARD FAX NO. 8072243248 P. 10 AR~ZCLS 14. -- ~sURANCB prior 'to commencement of occupation of 1:he liHiliili\d land.. LESSEE .ba~l procure and maintain, at LESSER's sole co.t and ~xpense, CC1dl.ucial qeneralliabil1ty insurance, wi1:h limits of liGilitY o~ 'tWO KILLION AND NO/10C> (US $2,000,000) DOLLARS tor all injuries and/or deaths result.inq to anyone penon ;md TWO MILLION DOLtAlUl (US $2,000,000) limit fro!ll anyone gccurrence. The limit ot liability for property dlUllllg8 lihall b. TWO MILLION AIm HO/loa (US $2, 000 I 000) DOLLARS to~ each occurrence and il9CJregate. coverag-e under S\1ch inIIuranoe shall abo incll.14e explosion, collllpse and und~ound prope:r1:y damage hazards. Such insurance shall include a blanket. conCrllctual liability end.orsement. Jlor nr.m-owned wa'tercrl!1ft of LlSSD or its. customers any "watercraft exc~usion. in the OO1Il.Ulercial li~ility il1!'Ourance policy shall be eli.:tiftat.ed. prot&~ion and indemnity insurance shall be provided with the sam. limits as 'the cODercial liability insuranee for the us. of r.,uSE!" owned watercraft. LESSEB shall also p.t'QV1da fire aM ax1:4nded coverage 1nliUrango for any buildings, equipment, machinery, vessel$ of cwat:ome2:'S or any other property &tDred or })elnq worked. on by L!SSBE upon t.he leased. li!l.!'ld a't. replaceunt value n.ther than original cost. %.ESSS! lihal1 provide Workmen's Compensation Intlurance and. insurance und.a.r the Harbor Workers and x,ongaborem.en's C!ompenaation Act., ;md "arehouse and 1IlOt.or vehicle insurance and. any other insurance required under any permit or taritf of the cit.y of saward, Alaska. 'the lIlinillUlni 1,1llountl!l and types of 1Jl&W:ance provided by LESSEE shall be subject to revision in accorde.nc& ."i1:h st.andard insunnce practices, in ordQr to provide ccnt.inuously throughout. the term of t.his agreement and any extensions hereof. a level o'f protect.1on Qonsonant wi1:h qood. business practice and accepted. st.andards in the industry. SUch facmra .e inc:t'flases in 'the cosi:. at livlllf1, inflationary prassurea, and. other con8iderat.ions, shall be utilized in assessinq whether the lIlUtimUllt insur&nc;:e requirements should be increased. eI'l"l may not1 ty LESSE! of 8l\Y reqUe.sted. !norea.ein insurance coverages. . ,~- - - .,_. ....~.' "'"' All insurance policies shall p:rovi(l.e. for thirty (30) days' notice at cancellation and/or material chanqe t.o be sent to CITY at t.he add.1:'el!ls designated in ARTICLE 38 of this. lease. All 8ugh pOlicies shall be written by insurance companies leqally a'.1thorized or licensed to do bueiness in 'the State of AlaslCa, ~nd a.:ceptable to CITY (Best's :Rat.inq B+ 02: better). LESSEE shall furnish CITY, on fen. supplied by CITY, certificat.es evidencing that it has procured the insurance required herein p2:ic)t' to the QCg<J.pancy at tbe laasad land 01' operation .by L2S5:8E. Haching h~ein dontained llhall preVGl'lt LESSEE or CITY from placinq and maineainin9 at: CITY'. or LBSSEB's own individual cost and expense, ackU.ticnal or other insurance as ~y be desired. All et the insurance policies required above as well as any other insurance can'ied. by LESSEii or CITY shall pJ:'ov1de that. the insurers waiva thei~ riqh~s Of Subrogation aqalnst CLTY t~ tESSEE MCTARR LEASE 9 0l"d BI>C::$ZI>CZ1.061 01 ~~~ow / N3~~~MHS~ wo~~ 11>:1>1 C::66 1-1> 1-d3S . . . SEP-IHJ2 FRI 15:45 CITY OF SEWARD FAX NO. 9072243248 P.11 iLnc;l their respecti.ve c:lffi.Qers, servants, agents or employees. LBSSEB furthe.r a.grees tg waive and agrees to have .it.s insurer&! wa.ive any l:'1qn~fil ot su]:)rcgat..!on (Vhet.her Qy loat\ reC!oipt.$, equ1tabla aaaignmant or othorwige), with respeot to deduotibles under cuch pol1cies and wi tb resp42et to damage to equipment inCludinq the loss of use tbereof, Whether insuxoed or not. LESS!E shall also name CIll'! as an additional insured on th8 general liabilit.y insurance policy maintained by LU5JilI!i as requirel,'l above, exalw:liJl'l coveraqe tor clailllS resul tinq from CI'n '. sale n~liljJ.nce. LESSEE shall provide CITY promptly and wit:hou;t; req\l.est capi_ at all inllUranee binders and lJolicies UPOJl receipi: thereot ~y LlSSEE. AIl'1':r~r.B 15. - OOWJUPm.I'3:01I It all or any part of tlua leas@d. land. is Condel\N!! tor a p'UbLic W!l@ by any qOVerru\lent aqancy or other duly aui:horuec1 entity, CJ:T'l I!Illd !..Ess:pl shall each make Ii claim aqllinst t:l1e condemninq or 'takinq authorit.y for thle ..ount: of any dusa.g'8 inc:w:ncS by or don. to them respectively a.s is result of the tak:l.21q. Noither I.ESSEE llOt' CITY ~haU. have any riqhts in or to A!'1Y award ma4e t:.::. the other by the condellUling' aut:horit:Yl provilled, 1:ba.t in the avant of II single a.wa.rd to CITl ..,hiob include. .peci:f1C! d81lla'9'el!l fo~ loss Of LlSS8E's leasehold int6~.t:, CITY ahall t:~ansmit to !.EiSa the am.ClI.1nt: of auah sP4lcific damaqa!:! so found, it allY. It part, bUt: not all of the laued land is condennwCl fen: public us., ~EE t!ll\all \llAU a g'ood faith de'termination as tel whether or not. the 1:akUxi of the part of the lea56d land 4ea1gDilted far condamnaticn will prevent if tram ccmtinuing' to operate on the leasel! land. If IilSSSEE determines in qood fdth that: the condemning o:f such part of the leased. land will prevent it t:rCllll. coni:inuing' to operate on t:he leased. land, LeSSEE lU!ly not.tty cr'1"l in writing 1:0 this .ftect, and ehilJ lease shall then ~ 1:arm1natacl fol" a.ll purposes atfeo:ive fifteen (16) day. !rc. the date L!:SS1iiB sands such not-ice to a:t'l'Y, OJ:' at. such oth.r.~a.te,r. date._M ~SEB shall specify in its Mtice, and. sucll te1"'l!lination shal1 b. tJ:'Aatod. in the same 1II.8.nnet' as II termination at the evpira.tion ot the term o~ this 1lilase. Ll!'SS!:E shall, as II cond.ition p%Qc8dent to such tet"lr!iml.t1on, J:'ElIIlave all e.nCUllll:lrances, c1ebts and lien:ll 1:0 which the 1"'8$4 land is subject. If at the time of ouch partial taking for P\llJlic use, LESS!::! deterlll1nes 1:hat such partial tll.ldnq will net prf!lven-~ it. ~om cantinuin'l t:o opercat.e, then LESS!E and CITY shall ne"ot.iate an csquit.a.ble arul pa.r1;;!,al abatelllent Qf t.he rent. beg1lm1J:1g to be .~feet.iv. on 'the actual /ta.te whe.n toBSSE:F: ilil effeotively prevell'tec! trom utilizing 'the (:ondeJUled lan4. ~lllJ.'rm... 14 . -- Il:Pll.!:'J!RA!J!rOIII Any dispute between CITY an4 Ll!:SSBE with r-.pect to any MoTARR LlASE 10 nOd 8PGl;:PGG.!..B6, 01 ~~lOW / N3~~~MHS~ WO~~ GP:P' G66,-p,-d3S . . . SEP-11-82 FRI 15:45 C I'N (F SEWARn FAll NO. 9072243248 P. 12 prgYil!lion of this lease or the ~:i.ghts and oblig'l!ti:iDn/S of the parties hereunder shall be decided by arbitraeion, in accordance witb the prov1siDIls ot this paragraph. Consent Panel. The party desiring arbitra'Cion of a ctispute !Shall give written notice to that .fleat to -the O'thBr }7Brty sPQcify:i.ng in such notioe the name and address of &I person to serve as an U'.bitn.~ on its behalf. Within fifteen (15) day. ..ft.;- Ncalp1: of suClb noCice the c1:her party shall qi va w.r:;l. ttoen not1C4l 'to the f1rct party' specifyinq the noM and addrel!le of a par.on de.ilpUlted ~ .ene a>> an 8.t:bitrat~ on its behlllf. If nei~r party haa objectGd eo the ()~. deeic.J1\at1on within fifteen (15) days or the notice by the second party ot it. representative Qf. an arb1aatQr, than t.he two chose arbit.ra.t:01:'s (OAl1e4 tb,e "consent panel") .hall seJ.ect a third porson agreeable to both to became the third melllber of ~A consent panel, '.rhe consent panel may utilize informal techni~es and hold in~ormal hearing 1ritbcut ret~rtmCe or adherence to the rules or proced1n'es of t:ha American 1.rbitrat:1Qn Aft5OC1ation. Prcmptly ancJ within tllirt.y (~O) daya of conclwUnq any prQceedinq the consent panel $hall render its vrit:t:en decision. It is the intent. 01. t:hi. .uhp.~grapb to provide for a speec.iy and. inaxpens1ve r..ol'lt.lon of disputes. p~idad the pa~ties aqree to su~ a procedUre, Arb1t.ratdon A"'~' Any award shall be enforoealll. 11'1 ..Clt~orduc. with Uasu. S'Catutes. Any award sllall. include aft award of cost.s, interest tI.t1d attorney %ee8. U!1'J:ClLl'l :I.,. -- HAIH'l'ElIUICf AND ~~ 17.1--Norllla.l Maintenance. During tne entire 3:.'81lIillnin9 btt1I. of 1:1118 lea.. and ev.ry renewal or .xterusion hereof, 1I3SSEE shall, at: L2SSEE's ~ole cost, risk andeKpensa; maintain 'the leased land, inolud!nq any 11lIprOV'miiehts pllicea ~harBciri ~DY-twsD, i.rI. as good condition lis ree.:Lvad. or constructed by L1!iSSBE, oriinary 'Wear and t.ear excepted. CI'l'lt', a't CITY's so18 option and expense, may, p~d.ot" to the ooameneeent. ot oons~ruct:1on by t.!SSEI, per-fon! uill1:enance and preventative work on the leased land, exclusive of illlp%oveaantll placed thereon by LESSEE, in order to pravent erosicn, mitiqate l1ama.qe to plants and anb.als, or prepare the leased land for eventual development by LESSl!:E or oi:hllrs ~ gradinq, filling or contouring the 18Ued land. Any such work p!rfomed bY' aI'l'Y shall be a't ern'a sole expense a.nd risk unless LESSEE agrees, in advance and in writing, to share auch expanse and risk. LESSBE shall preve.at the di8dl:1.1U:qe ot' any pclJ.utantlj to any public sewEr ay.tem be::{ond. those for whiCh the syst81ll was c1eai.gned. LESSD shall wu.nta:in in rus'!: cIa.1I c::ond!tion at all times all tire. pollution and other prouctive ~ipmen't.. CITl may pedocHcally inspect 'the leased Jand a.nd Ke1'AlUl LEASE 11 cl"d 817c!:17cc.!.0Gl Ol ~~18W / N3~~~MHS~ wo~ !:17:171 cGGl-171-d3S . . . SEP-11-92 FRI 15:46 CITY OF SEUARD FAX 00. 9072243248 P.13 facilit:ies constructed t:he:reon in order to ascertain the condition of the pub1ic port.ion of the premises but the exe.cise of this riqht Shall not: 1lllply any oblig'atton to do so nor any ouliqf1t:lcll1 'to do 80 in any pa:t:tioular way.. ::I. 7 . 2--sate~ IssueR. CITY may notify LESSEE in wr1t:irbJ of any clelic.1.one!u .in 'the partorllanr.:e of LESSEE's ma.ir1i:enanc8 ~.spon.1bilit:.ies aa they relate to public health or safety and LlfSSQ shall p~tJ.y wi thin thirty (30) 4aye Qf :receipt of such notice ac;1vis. CITY 1n wrltiluJ of' its propo.1Id SChedule for pGl'fonaftce of any wo:t'k necessary t:a our. such deficiencies. If such d~iciencies ~elau 'to the 8~At:y of J~SSD's operation such that the surroundinq land and port tac1u,t:i.. are axpased to risk, unnecessary potential ~S&rd&, or a ~i.k to the pubUa interest. (1lS c!istinguishad from a business risk) t or if c.Il!'Y is not sai:1stied wi.th the propo88cl schec1Ule of repairs eit:hel' becauee of the delays therein or the scope ot the repal~~, then CITY may engage An independent enginee~ing conaulb.nt wellwverse4 ancl ~1"ienced. who shall fuJ;1\ish to CITY a com>rahenaiVQ survey ana reporl: for the p~ose of establishinq- both t:l1e need and Ul:9ency to porf'Or.lll. suoh main~lmance York. As .$oon ... pl'ae1:icable follClw1ng reo$1p1: elf said enqin.ar's deten.inai:iOIlS and recom1llendatiou, if thlil rlll'Or't requiree repair then L1!:SSB! ahall pay the cost of tho report and puform .uch wol'k in aCII:30rdance therewith at r.BsSEE/s Cotl1;, r~.k and expanaa. 17.3--Cos1o o'f R~p8.inz. ShOUld r,gSSEE: dispute 'the n.ecessity 01: any D.llintenance wDrk as being necessary or advisabl.e or re."!sonllble 1:0 prat.ect the PUlllic: faciliti.. on the lBuacl land or on. adjacent lanc.'l facUit.ies, it JI./ly submit the matteX' to arbitraticn; V.t'ovid.ed, however, that. pendi.nq t:he decision of the arbit:r~tore it shall fUlly comply with 'the :maintenance requests, J:t an aBl1:rat.ion aW<U'd (whlOft shall inclUde costs, int.erest and at.torneys' fees) should ultimatoly find that the repairs were not necessary then LE8SE~ may Qi~h.r d.duct from fU~ure'~.ntal'pa~enta the cost of such repail"s or be ~1l11burSled., ther.fQr.... __ .- .In.....-decidirlq whclt:hl!1' repairs requested. hy CITY or req,uirllld by an enc.r:1neeriJlq rtI'port u'e neges.suy i:he arbitration panel :1.5: to o;ive primary ccJl.9ide:nticn eo 'the .sat.-ty and. welfare of the sawaJ:'f:1 ;Pori: tagllities and t.lllI citizens ot Seward 1=0 the highast standards in the !nc!ustry. If any faoility or setvice provided by CITY to tile leil5ed land shall baCOIlle in.aQequa:t:e due to ghanqes 1n envuQmlICIntal control 8t:and~ or Should any facility require updI.t.inq or imp%ovement by reason of a change in Uf.:SSEE'. use ot the leued land or gpe~.tions th.retrcm, LEaSEE shall either con.tr~ct sUch improvements at L!SSU'i: own c:ost o. reimburse ~ft for SIle.b. work at the opt.ion of CI'l'Y. 1rc'l'ARR LEASE 12 ~l.d 817G~17GG1.061 O.L ~~~ow / N3~~~MHS~ wo~~ 1717:171 G661-171-d3S . . . SEP-ll-92 FRI 15:41 CITY OF SEWARD FAX NO. 9072243248 P.14 :lR'l'I ctE 1 a.. -- RHVl:l!.ONlOlIn.'llL l!OJfCDiIJl]fIl ~8.1--KazardoU5 Mater1al~. ~l ccn4i~~~n or Site. LE&SEE ba~ had :full oppol'tunity to e:ll:lUIlinl; the site for the presence of any KllZa:douli 1{a:tarial and. aCQept.s U6 eiu in "as i5" condi.tion; however, pri,01:' Us t:he Qff~tiv8 date of t:bJ..8 lease, aaaliii may a01l1pleta a baa. line _.eGsment of i:he lean s1te to :be !..t:t:llohed. hereto as ~ibit B. h) Relaa_ of" CITY. Any other provbion of th1s leasG aqreement to t;he contrary notwi thatandinq, I..BSSEE rel..... e:t!1'Y trom any and all claims, demands, penalt.ies, fines, judgDents, liAbilities, settlement6, damllQes, costs or expenses (including, "ithoUt U.mitat:ion, a~torneY'1jI fees, court coats, lit:1C]at10l1 expans.., anl1 COna,.ltllnt and expert fee..) arising durinq CIX' after the tem ot 1:hia leae. aqrs$1IIent, and ruultd.l1C} troD the WI., keepin9, atorage or diasposal of HulU'dQUS Mat.rid on the sit6 by L!iS5E'B, or 8t'iainq cut of or r.$\lLt:l.JlCJ frOlll L1!!SSB:I!lle opora\:ions _t. t:ha liIi-te except ral: thOBIi arisinq out of the CrrY'S sOle neqli9'en~ or intentional 1Iliacanduct.. 'rhis rsh.ace U\eluda., wi~O\d:. limitation, any and aU costs inm.n:rea dua to any investigatlon of the .ite or any Cleanup, remOVal or restor_tien mandatGc1 by a fe<l~l, state or loca.l 8.gency or polit.ieal aubdivia10n or. :by 18..\11 or regulation. c) Use of Haz,:rdou~ Matl!lrill.ls on ~ si~e. 1, LESSD $haU not caUJI.. or pemit any Hazardous Material U) be brouqht upcn, kept or u..cl in Q~ about: thIS leased property except. ecr such Hazardcus Ha~.riaL as i. neee88Ary t.o LlSS!B'. authoriz~ use of th$ J.ea...d land. ii) Any Hallardotl. Matedal per2llitted. en thll lond land. as provided in this paraqraph, and llLl conu1nG:S 'thBrafcr., shall bel Wlod, kept, stored and disposad ol in a :IIalIlIer that cOIIplies with all tnviromuan'toal Laws or other law or regu1a~on. applioabl.e to such HaZardous Xaterial. Hi) LESSEE shall not discba~e, leak or CIIIl1~, OJ: permit to b. dischllrqed, leaked or emitted, any mate~ial into ~a abo.phe%e, grou.nc1, ground water, 118WQr ay.t.em or any body of wate:l:', it llIUQh ma.t.IG'ial (41it rea.sonably dQ1:lU'lI.inec! by the c.tty, or any govQ:rnmen't.aJ. iilU1:horit:y) dces or m"y. pollut:e or c:ont.&minau the sue, or .lIlay alive.ely atfeet 'the (a) health. welfare or sa.fety of peX'SOhIl, whether located on the leas.d land or ol.aawb.e):e, or (b) ~h8 condition, use or anjo~ent of eha lease4 l&nl1 or any Qtb~ area cr per.eM.! pl"operty. 1V) LISsa beretly aqrees -chat. it flhall be fully liable tor 411.11 eo.ts ;m4 expenu5 :related to Us use, ai:01'age and. d!spo.al of KazardoU5 Xatedd kept: or b1:ought on the leased land by LESSEE, its authorizGd rllpresentat;i.v8s and invitee., and asse shall vive immec.iiat:e naticQ 'too CITY or any viola:t1on 0:1:' keTA1Ul uft~ 13 vt "d 8vc!:vcGl.06t 01 ~~l~W / N3~~~MHS~ WO~~ vv:vt c66t-vt-d3S . . . SEP-ll-S2 FRl 15;48 CITY OF SEWARD FAX NO. 9072243248 P.IS potential violation of the provisions of this l!lUbparagra.p1:l. d) Indemnit'ication of CITY. 4l.ny other provision of this lea.se aq~eement to the aon1:.'l:'ary l'1otwlths:t:andirlq, LESS1U .lulll defend, :l.ndemnity ..rni hold CITY narmle~s UQlIt ana AiUll$t any c1aa., 4eman4s, penalt:iea, fines, jUdgments, liab1.Utiu, a.ttlu.nte, c:tamaq.., co.ta, or expenses (including, without: liaitation, atto2:'n8yo, consulta.nt and el!p(lrt; reas, court costs and lit.igat.ion expenses) af ~hatever kind or nll.ture, known or unImOlll1\, cont:.in'l8nt or o1:h.niae, arbint] out. gf or in Any w~y relllted to (1) the presBl'le4!l, d1spoaal, relsa8e, or three:tened relea..e o~ any iiuch Rilzardaus xat.rial which 15 on, fr01ll or affecting the leased land, soil, water, qround water, vell.tat-ion, hl1ildingl!l, pe:t'lIona.l p~ol*~t.}, persons, animals, or othel'Wise, Cii) IUIY peri;oaal iIljury (inoluc!i1H.i wrongful d.eath) or propClYt.y da1ll8.g& (real or personal) arisinq our of or l"elated to SUch Hazardous Material r (iU) any la.w~t1!:t In:ought. o~ threatened, ~ettle1llent reached or gcve1'!l1l.8nt oJ:der re1a:t:inq tc:l SU~ Hanrdous Material] and OJ:' (iv) any violat:lon of any lawa appliCable theretoj provided, hawever, that: this prov1$lon shall apply only if the act$ glvlnq rise to the 01.111115. demand., penalties, fines judp.nts, liabilities, sett181ll.C!nta, damaqe., costs, or llxpenses Ca.) occur .in whO~8 or in part d.udnq or after the term of this lease llqrcement.. ~nd. (b) arise in whole or in part from the use ot, operAtions on, or ll~tiviti.. on the lQaSGd ~and by L2SSR~ or its omploy.r., emplOYe.., aqentli, invitees, contractQrs. su))cQntractors Or' author bed. repnaentat.ives. 'll18 prOVisions of thi. subparagraph shall be in addition to AnY other Obligations and liabilities LESSD may have to City ..t law or IilqQity and shall survive the transaet.ionlii cont.eu.plated herein and shall aurvive the blndnation at this lease agrooment. e) PaeHity o,parattor. POl' a.ll purposes, LESSB1!l shall be aeemed the operator of any :l.'aeility a.t: the leased land. :t:) ilazardoua 1l8~A1"ial defintil. Al!I U$4lQ in tDla lease aqreem.ent Ha.z:nd.OWi ka_ter1.al i5..any _I$Ubstanca...vhic:h ia eo1do, ignitable, reactive, or corrosiva or which is; t'$c;Nlated. by auy !nv1rcmmental lMlw. Hazardous Mat::erial u,elud.. any anI! all mate:oill1 OJ:' INbstanceII which are defined. as "hazardous wasta,. "axtramely hazarc:loWl waste" or IS "hazardous sUl:Istance" '\U\aer any I:r1V1romD$n1:al t.aw. N01;vi~hstandinq any st:aeuto:ry petroleWll excluaiCln, :for the. purpcees of this leaSe aqreement the t:er1\l. Hazardous Hat.erial include., without. It.itation, petroleum, inclUding erualll oil C1%' 2lny fraction thenQf, pett'oleum soaked a1:lsorbent: Material <<nd othel:' petro3.euJI waste.. q) EnviJ;:olW",nt:.al law dB(:j,uWi- As used in this .1BAse ~._Qnt .Envircmmenta1 :taws inelUdtl any I.nd all local st:ate anI! federal ol"d1nanc::es, st.at:ut.elS, and re9\lla1:1onll, a.s now 1n force or &11 m~y 1:1. cmended troll t111111 to t:.ime, ~lating to tba proteo1:.ion 0:1.' hWllaJl health And 'the environment, as well as any j~en1:s, or4ers, "c'l'ARR LBASE 14 Sl"d 8l>c~l>cc.!.06l 01 ~~18W / N3~~~MHS~ wo~~ Sl>:l>l c66l-l>l-d3S . CITY OF SEWARD, ALASKA RESOLUTION NO. 92-157 A TIEST: APPROVED AS TO FORM: Perkins Coie, Attorneys for the city of Seward, Alaska . . (City Seal) 2{ XI 4-. Fred B. Arvidson City Attorney