Memorandum 17-098 Southwind Foods LLC Lease on Homer Spit

MEMORANDUM 17-098

To:                         MAYOR ZAK & HOMER CITY COUNCIL

From:                    PORT & HARBOR COMMISSION

Date:                     JUNE 20, 2017

Subject:               SUPPORT LEASE REQUEST FROM SOUTHWIND FOODS, LLC DBA GREAT AMERCIAN SEAFOOD IMPORTS FOR 4501 ICE DOCK ROAD, KPB 18103452, LOT 12-C HOMER PORT INDUSTRIAL NO. 4             

The City administration received a Lease Application from Southwind Foods, LLC, a wholesale food distributor from Carson, California that is purchasing The Auction Block, LLC.  Southwind Foods, LLC and The Auction Block, LLC. are requesting a lease transfer and a new 20-year lease with options for two consecutive 5-year renewals. Based on the Lease Policy and Procedures, the City administration evaluated the proposal based on compatibility with neighboring uses, experience of the applicant, future investments into the business, and the applicant’s financial capability, (Chpt 6 Lease Policy).  Based on the responsiveness of Southwind Foods, LLC proposal, City administration further agreed that a new lease be awarded without the parcel being advertised through the Request for Proposal process.

Southwind Foods, LLC was established in 1999 and has a 160,000 sf distribution center in Carson, CA, near Los Angeles.  In 2003, Southwind Foods, LLC expanded overseas with a diverse line of cooked, raw, and packaged seafood product.  They are now looking to expand by offering Alaskan seafood to meet the demand of their nationwide sales and distribution network.

Per the City of Homer’s Property Management Policy and Procedures, after the City’s administration reviews a lease application, makes a recommendation to the Port and Harbor Advisory Commission, and the Commission shall supply their recommendation to the City Council. 

At the Port and Harbor Advisory Commission’s special meeting on June 20, 2017, we reviewed the City’s administration recommendation on the Southwind Foods, LLC proposal and voted unanimously to recommend that City Council approve the Resolution awarding a new 20-year lease with options for two consecutive 5-year renewals without the parcel being advertised through the Request for Proposal process.

Att:         Lease application to include cover letter, survey, Certificate of Insurance and Auditor’s Report.

                June 15, 2017 to Southwind requesting additional information

                June 16, 2017 from Southwind with additional information