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CITY OF SEWARD, ALASKA
RESOLUTION 2000-005
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD,
ALASKA, AUTHORIZING THE AMENDMENT OF CERTAIN LEASE
AGREEMENTS RELATING TO THE BOARDWALK PROPERTY IN THE
SMALL BOAT HARBOR.
WHEREAS, the City made certain improvements benefiting certain City-leased land along the
boardwalk in the Small Boat Harbor, including property leased to Kenai Fjords Tours, a division of Alaska
Heritage Tours Inc, Emerald Sea, Inc. dba Major Marine Tours, Carl I. and Kim Hughes, Randy J.
Becker, Richard A. and Linda Worabel, and Alaska Heritage Tours, Inc, a wholly owned subsidiary of
Cook Inlet Region, Inc. (collectively, the "Lessees"); and
WHEREAS, the improvements included boardwalk improvements, sewer and water improve-
ments, and paving; and
WHEREAS, in consideration for such improvements, the City and Lessees have detennined that
the Lessees should pay for said improvements through the payment of additional rent under the lease
amendments described below; and
WHEREAS, the Lessees have agreed to make the additional rent payments quarterly, together
with the regular lease payments; and
WHEREAS, in consideration of the additional rent, the City agrees to maintain the regular rent
payment at the 1999 rate until the rental adjustment date of July 1, 2005, with such regular rent to be
adjusted on that date and thereafter as provided in the leases; and
WHEREAS, although the regular rental rate would otherwise have been adjusted to fair market
rental value on the rental adjustment day ofJuly 1, 2000, the City finds that it is in the public interest to
maintain the 1999 rental rate for a limited period. Even if the 1999 rental rate is less than the year 2000
fair market rental value, the additional rent paid to the City will cover a substantial portion of the cost of
the City improvements, and, the regular rental rate under each lease will ultimately be adjusted to fair
market rental value on July 1, 2005 and each year thereafter.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF SEWARD, ALASKA, that:
Section 1. The lease agreements relating to the boardwalk lease properties, including Lessees
Kenai Fjords Tours, a division of Alaska Heritage Tours Inc., Emerald Sea, Inc. dba Major Marine Tours,
Carl I. and Kim Hughes, Randy J. Becker, Richard A. and Linda Worabel, and Alaska Heritage Tours, lnc,
a wholly owned subsidiary of Cook Inlet Region, Inc., shall be amended as follows:
CITY OF SEWARD, ALASKA
RESOLUTION 2000-005
(a) ADD within Article 3 - Rental Rate, the following two sentences to Section 3.2: Notwith-
standing the foregoing, until July 1,2005, the annual rental rate shall remain equal to the amount in effect
for 1999. On July 1, 2005, and each Rental Adjustment Date thereafter, rent shall be adjusted to the Fair
Market Rental Value in the manner provided in Article 3.
(b) ADD within Article 3 - Rental Rate, the following new Section 3.8, Additional Rent: Additional
rental payments (" Additional Rent") shall be made by the LESSEE at the times and in the amounts set forth
in the attached Lease Amendment Exhibit B, incorporated by reference as if fully set forth herein. Said
Additional Rent will reimburse the CITY for the improvements built by the CITY near or adjacent to the
Leased Land in the amounts described in Lease Amendment Exhibit C, incorporated by reference as iffully
set forth herein.
In all respects the Additional Rent shall be considered rental payments due under the LEASE and
each and every provision of the LEASE which applies to rental payments shall also apply to Additional
Rent as provided in this paragraph 3.8.
In all other respects, the leases shall remain unchanged and in full force between the CITY and
LESSEES.
Section 2. The City Council finds that it is in the public interest to amend the leases in the manner
described in this resolution, including maintaining the 1999 rental rate until July 1, 2005. Even if the 1999
rental rate is less than the year 2000 fair market rental value, the City Council finds that the City will be
otherwise compensated by the payment of the additional rent for certain public improvements in the
manner described in the attached form oflease amendment. The regular rental rate will also be adjusted
to Fair Market Rental Value beginning July 1, 2005 and each five years thereafter. The City may make
an appraisal of the property prior to July 1, 2000, for its own purposes, and subsequent appraisals for Rent
Adjustment in the year 2005 and prior to each Rental Adjustment Date thereafter.
Section 3. The City Manager is authorized to sign the lease amendments, record lease
memoranda to reflect the amendments, and make such other lease changes as necessary to complete the
lease amendments in substantial form of the lease amendments attached to this resolution.
Section 4. This resolution shall take effect thirty days after passage and posting as required by
the City Code.
PASSED AND APPROVED by the City Council of the city of Seward, Alaska, this 10th
day of January, 2000.
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CITY OF SEWARD, ALASKA
RESOLUTION 2000-005
THE CITY OF SEWARD, ALASKA
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Edgar Blatchford, Mayor
AYES:
NOES
ABSENT:
ABSTAIN:
Blatchford, Brossow, Calhoon, Clark, King, Orr, Shafer
None
None
None
ATTEST:
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City Clerk
(City Se~,"u""""
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