HomeMy WebLinkAboutRes2006-048
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Sponsored by: Corbridge
CITY OF SEWARD, ALASKA
RESOLUTION 2006-48
A RESOLUTION OF THE SEWARD CITY COUNCIL AUTHORIZING
TERMINATION OF THE EXISTING LEASE WITH POLAR
EQUIPMENT, INC. AND AUTHORIZING THE CITY MANAGER TO
ENTER INTO A NEW LEASE FOR LOT 2, BLOCK 7 AND LOT 2A,
BLOCK 9, FOURTH OF JULY CREEK SUBDIVISION, SEWARD
MARINE INDUSTRIAL CENTER, POLAR SEAFOODS REPLAT; LOT
2A BEING A REPLAT OF LOT 1 AND A PORTION OF LOT 2, BLOCK 9
AND A PORTION OF TRACT A, FOURTH OF JULY CREEK
SUBDIVISION, SEWARD MARINE INDUSTRIAL CENTER
WHEREAS, Polar Equipment, Inc., dba Polar Seafoods desires to expand its existing
lease area within the Seward Marine Industrial Center; and
WHEREAS, the Seward Planning and Zoning Commission held a public hearing at its
January 3rd, 2006 regular meeting and passed Resolution 2006-02, which recommended
approval of a proposed replat and the request to expand the lease area, subject to certain
conditions; and
WHEREAS, terminating the current lease and monthly use agreement and entering into
a new lease for all of the land currently under lease or subject to a monthly use agreement, will
allow for more efficient property management for both the City of Seward and Polar Equipment,
Inc., and
WHEREAS, the miscellaneous debris has been removed by the lessee, as requested by
the Planning and Zoning Commission; and
WHEREAS, the City encourages private economic development in the Seward Marine
Industrial Center and finds that entering into a new lease with Polar Equipment, Inc. is expected
to benefit the economy of the Seward community; and
WHEREAS, the City Council has determined that the continued development of
Seward Marine Industrial Center and operation of fish processing facility is in the public interest;
and
WHEREAS, surrounding lands owned by the City and leased to private parties were
appraised during the summer of 2005, and the City and Polar Equipment, Inc. agree that the
rental rate described in the Lease Agreement presented at this meeting reflects fair market rental
value and no additional appraisal is needed at this time.
CITY OF SEWARD, ALASKA
RESOLUTION NO. 2006-48
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NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE
CITY OF SEWARD, ALASKA, that:
Section I. For the reasons stated in the recitals and incorporated herein by this reference,
it is in the public interest to replace the existing lease and monthly use agreement with a new
lease covering the area to be replatted and to extend the lease term. The City Manager is
authorized and directed to enter into a lease agreement with Polar Equipment, Inc. in substantial
form as presented at this meeting. The City Manager is also authorized to execute and record any
and all related documents in connection with this transaction including the lease termination and
a memorandum of lease.
Section 2. The lease rental rate will be subject to periodic adjustment as provided in the
lease agreement, and, for this reason as well as the reasons stated in the above recitals, the public
interest will not be served by requiring an appraisal at this time.
Section 3. This resolution shall take effect 30 days after adoption and posting.
PASSED AND APPROVED by the City Council of Seward, Alaska this 8th day of I
May, 2006.
THE CITY OF SEWARD, ALASKA
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Vanta Shafer, Mayor !
AYES:
NOES:
ABSENT:
ABSTAIN:
Dunham, Valdatta, Lorenz, Thomas, Schafer, Bardarson, Shafer
None
None
None
ATTEST:
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J6hanna Dollerhlde
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Council Agenda Statement
Meeting Date: May 8, 2006
Through: Clark Corbridge, City Manager
From: Scott Ransom, Harbormaster
Agenda Item: Terminating the existing lease and entering into a new
lease agreement with Polar Equipment, Inc. for certain land in the
Fourth of July Creek Subdivision, Seward Marine Industrial Center
BACKGROUND & JUSTIFICATION:
Polar Equipment, Inc. and its predecessors have leased certain real property from the City for many
years to operate a fish processing facility. Polar Equipment asked the City to extend the term of its
lease and expand the leased area to include a portion of adjacent land that is now subject to a monthly
use agreement.
The Seward Planning and Zoning Commission approved a recommended replat for the property
described in the Lease Agreement presented at this meeting. The property is described as:
Lot 2, Block 7 And Lot 2a, Block 9, Fourth Of July Creek Subdivision, Seward Marine
Industrial Center, Polar Seafoods Replat; Lot 2a Being A Replat Of Lot 1 And A
Portion Of Lot 2, Block 9 And A Portion Of Tract A, Fourth Of July Creek
Subdivision, Seward Marine Industrial Center
All within the Seward Recording District, Third Judicial District, State of Alaska, collectively
the "Leased Land."
The Seward Planning and Zoning Commission passed its Resolution 2006-02 on January 3, 2006,
recommending replatting and leasing subject to certain stated conditions. To meet those conditions,
Polar Equipment, cleaned up and removed debris from the area, obtained a variance to construct a
new blast freezer tunnel adjacent to its existing building, and revised the preliminary plat consistent
with stated recommendations. Staff in the planning office and the harbormaster’s office worked with
Polar Equipment to monitor progress and assist in moving the process forward as expeditiously as
possible.
A dock was constructed and given to the City in exchange for rent credits on a portion of the land
(adjacent to the City’s dock) through December 31, 2008. The lease reflects continuing rent credit
for this portion of the leased land through December 31, 2008.
The Lease Agreement presented at this meeting incorporates the land needed by Polar Equipment
CONSISTENCY CHECKLIST:
Where applicable, this agenda statement is consistent with the Seward City Code, Charter,
Comprehensive Plans, Land Use Plans, Strategic Plan and City Council Rules of Procedures.
FISCAL NOTE:
This Lease is for a term of ten years, with options for two five-year extensions. The initial annual
rent is $16,103.00.
Approved by Finance Department
RECOMMENDATION:
Council approve Resolution 2006-___ authorizing the City Manager to enter into a terminate the
existing lease and enter into a new lease with Polar Equipment, Inc. for land in the Fourth of July
Creek Subdivision to operate a fish processing facility.