Memorandum 19-008 Sport Shed Lease Assignment

Memorandum 19-008

TO:                        MAYOR CASTNER & HOMER CITY COUNCIL

FROM:                PORT & HARBOR ADVISORY COMMISSION

THROUGH:        KATIE KOESTER, CITY MANAGER
                            RACHEL TUSSEY, DEPUTY CITY CLERK I

DATE:                   DECEMBER 13, 2018

SUBJECT:          THE SPORT SHED LEASE RE-ASSIGNMENT TO AKSNOWGRL RENTALS, LLC

At their regular meeting on December 12, 2018, the Port and Harbor Advisory Commission reviewed and discussed the lease re-assignment and new lease proposal from Jenifer Kumfer, AKSnowGrl Rentals, who is assuming ownership of The Sport Shed beginning 2019.

The Commission reviewed the application, draft lease, and the approval recommendation from the City Manager; below is the commission’s meeting minute excerpt:

B.            Sport Shed Lease Re-Assignment to AKSnowGrl Rentals, LLC

AKSnowGrl Rentals Lease Application for The Sport Shed
Proposed Lease for AKSnowGrl Rentals, LLC

Chair Zimmerman opened the floor for discussion.  Commissioner Ulmer noted the completeness of AKSnowGrl Rental’s proposal and application.

HARTLEY/ZEISET MOVED TO SUSPEND THE RULES TO ALLOW THE APPLICANT TO SPEAK FREELY WITH THE COMMISSION.

There was no discussion.

VOTE. NON-OBJECTION. UNANIMOUS CONSENT.

Motion carried.

Commissioner Donich inquired if the applicant had erosion control plans for The Sport Shed.  Jenifer Kumfer, AKSnowGrl Rentals, LLC, provided her plan on how the business will manage erosion on the leased lot.  There was discussion among the commissioners and Port Director/Harbormaster Hawkins on the Corps of Engineers and State of Alaska’s plan and previous work done on the Homer Spit to address storm damage/erosion control.

Commissioner Hartley asked Ms. Kumfer if the use of the property and business would remain the same (currently used as store front, rooms, and storage).  Ms. Kumfer confirmed that it will.  There was brief discussion on the components of the draft lease.

ULMER/DONICH MOVED TO RECOMMEND TO CITY COUNCIL TO APPROVE A LEASE RE-ASSIGNMENT FROM THE SPORT SHED TO AKSNOWGRL RENTALS, LLC, AND TO AUTHORIZE THE CITY MANAGER TO EXECUTE THE APPROPRIATE DOCUMENTS FOR A NEW 20-YEAR LEASE WITH OPTIONS FOR 2 CONSECUTIVE 5-YEAR RENEWALS FOR A PORTION OF LOT 5, HOMER SPIT AMENDED, AT AN INITIAL ANNUAL RENT OF $16,590.48.

There was no further discussion.

VOTE. NON-OBJECTION. UNANIMOUS CONSENT.

Motion carried.

RECOMMENDATION

The Port and Harbor Advisory Commission recommends that City Council approve a lease re-assignment from The Sport Shed to AKSnowGrl Rentals, LLC, and to authorize the City Manager to execute the appropriate documents for a new 20-year lease with options for 2 consecutive 5-year renewals for a portion of Lot 5, Homer Spit Amended, at an initial annual rent of $16,590.48.