Memorandum 14-063 Snug Harbor Seafoods Lease on Lot 13B

Memorandum 14-063

TO:                       MAYOR WYTHE AND CITY COUNCIL

FROM:                 LEASE COMMITTEE

THROUGH:        RENEE KRAUSE, CMC, DEPUTY CITY CLERK   

DATE:                  MARCH 21, 2014

SUBJECT:           RECOMMENDATION FOR A LEASE ON LOT 13 B FOR SNUG HARBOR SEAFOODS

BACKGROUND

On March 21, 2014 during a special meeting of the Lease Committee discussion and review was conducted on a revised proposal from Snug Harbor Seafoods to lease the entire parcel of Lot 13 B and construct a more permanent facility in which to conduct and/or expand services for the following:

- Commercial Fish Buying and Retail Sales

- Sport Fish Processing

- Storage, Office, Watchman Quarters

- Kitchen, Shower and Restroom Facilities

- Retail Sales of Fishing Equipment

The minutes of the meeting are attached for review of the discussions surrounding the recommendations.

RECOMMENDATION: The Lease Committee requests City Council issue a new lease for Snug Harbor Seafoods for Lot 13 B in its entirety with a term of 20 years plus two five year options, the lease is to include performance deadlines for the proposed leasehold improvements as discussed and that the annual lease rate will begin at fair market value.

The Lease Committee further recommends that the language in the lease concerning sport caught fish will be in accordance to State of Alaska laws.