Memorandum 14-152 Spit Land RFP Recommendation - Chip Pad

Memorandum 14-152

TO:                        MAYOR WYTHE AND HOMER CITY COUNCIL

FROM:                  MELISSA JACOBSEN, CMC, DEPUTY CITY CLERK

DATE:                   OCTOBER 7, 2014

SUBJECT:           PORT AND HARBOR ADVISORY COMMISSION RECOMMENDATION ON SPIT LAND RFP
PROPOSALS

At the September 24th regular meeting of the Port and Harbor Advisory Commission the following discussion and action took place;

Spit Land RFP Proposal Review & Recommendation to City Council

Memo to Homer City Council cc: Port & Harbor Advisory Commission from Lease Committee Re: Spit Land RFP Results and Recommendations dated September 16, 2014

Harbormaster Hawkins reviewed the staff report and the proposals from Waterway Scrap Metals, LLC/AK Go Green, and Alaska Scrap & Recycling. The recommendation from the Lease Committee is to award to Alaska Scrap & Recycling.

The Commission discussed whether allowing a five year lease on a quarter of the pad will impact people wanting to do boat work and for vessel haul out.  It was suggested maybe a two year lease would be more appropriate. Harbormaster Hawkins explained that the city reserves the right in any lease to cancel a lease if there is a higher and better use, and the option is available to the lessee as well.  He said if this lease is approved there is still quite a bit of area available on the pad for boat work.

HOWARD/ZIMMERMAN MOVED THAT THE COMMISSION RECOMMENDS THE CITY COUNCIL APPROVE THE PROPOSAL FOR ALASKA SCRAP & RECYCLING AND INSTRUCT THE STAFF TO MOVE FORWARD WITH LEASE NEGOTIATIONS FOR A FIVE YEAR LEASE.

It was suggested that extra language be considered to clarify that if the city needs the space they can have it, instead of the regular boiler plate language.  Harbormaster Hawkins reiterated that if an opportunity for higher and better use came along for the city, Alaska Scrap would be given a window of time to complete their work and vacate the site. It is built into the lease for the city and also for the lessee to do the same.

VOTE: YES: HOWARD, ZIMMERMAN, HARTLEY, ULMER, CARROLL

Motion carried.