TO: Mayor Hornaday and Homer City Council
FROM: Walt Wrede
DATE: July 25, 2011
SUBJECT: Lease Proposal / Fortune Sea, LLC
In late April of this year, the City issued a Request for Proposals for leases on thirteen lots in the port and harbor area. The RFP was generated right after the Council adopted the Land Allocation Plan which stipulates which lots are available for lease. Two proposals were received and the Lease Committee reviewed them at a Special Meeting on June 9, 2011.
Fortune Sea LLC submitted a proposal to lease Lot 19, Homer Spit Subdivision No. 5. This lot is on Freight Dock Road next to the Coast Guard Building. Fortune Sea, LLC is a locally owned and well established commercial fishing operation based in Homer. They are already doing a large volume of business from the harbor and are looking to expand operations. The local economic impact in terms of jobs and revenue is significant. The proposed use is upland fleet support, improved and secured storage for crab pots, tender gear, trailers, and other related equipment.
The staff report found that the proposal was very promising but that it lacked sufficient detail in some key areas. The report recommended that the City Manager be requested to meet with the applicant in order to seek clarification on some of the details. The Committee agreed that additional information was needed but found that the proposal was sufficiently promising and had enough merit that the matter should go straight to the Council. A motion was passed that recommended that the Council adopt a resolution which authorized the City Manager to begin negotiations on a lease and work out the missing detail during the negotiation process.
RECOMMENDATION: Adopt Resolution 11-081