Resolution 12-086(S), A Resolution of the City Council of Homer, Alaska, Approving the Assignment of the City Land Lease on Lot 88-1, Dated October 27, 2003, from William Tener, dba South Central Radar, to Mark and Laura Zeiset Extension of the Lease Term for 20 Years, and the Execution and Delivery of an Amended and Restated Lease Document. City Manager.
CITY OF HOMER
A RESOLUTION OF THE CITY COUNCIL OF HOMER, ALASKA, APPROVING THE ASSIGNMENT OF THE CITY LAND LEASE ON LOT 88-1, DATED OCTOBER 27, 2003, FROM WILLIAM TENER, DBA SOUTH CENTRAL RADAR, TO MARK AND LAURA ZEISET EXTENSION OF THE LEASE TERM FOR 20 YEARS, AND THE EXECUTION AND DELIVERY OF AN AMENDED AND RESTATED LEASE DOCUMENT.
WHEREAS, William Tener, dba South Central Radar, wishes to sell his business to Mark and Laura Zeiset; and
WHEREAS, As part of this transaction, the buyer has requested assignment of the land lease and all of the leasehold interest in the property pursuant to the provisions of Chapter 14 of the Property Management Policy and Procedures (Lease Policy) and Section 8.01 of Mr. Tener’s existing lease; and
WHEREAS, The buyer has formally applied for assignment and has stated that the financing for acquisition of the business is dependent upon assignment of the lease and extension of the lease term; and
WHEREAS, The current lease term expires in November of 2013 and the buyer has requested a new term of 20 years with two 5-year options; and
WHEREAS, Section 14.4 of the Lease Policy provides that leases may be assigned as part of the sale of a business on the leased property and that a business may apply to extend the term of the lease to allow the continuance of the business and to secure financing for the purchase; and
WHEREAS, It is in the best interest of the City to amend and restate the lease using the City’s current lease form and incorporating the extended lease term; and
WHEREAS, The Lease Committee considered the request for assignment at its meeting on October 11th and recommends approval subject to certain stipulations.
NOW, THEREFORE, BE IT RESOLVED that the Homer City Council hereby approves and authorizes the assignment of the City land lease for Lot 88-1 dated October 27, 2003 from William Tener, dba South Central Radar, to Mark and Laura Zeiset.
BE IT FURTHER RESOLVED that the term of the lease shall be amended to 20 years beginning November 1, 2012 with two 5-year options.
BE IT FURTHER RESOLVED that the lease shall be amended and restated in the current City lease form, and the City Manager is authorized to execute and deliver the amended and restated lease.
BE IT FURTHER RESOLVED that the lease shall be subject to the requirement that an “as-built” survey be conducted, potential encroachment issues resolved, and that the required corporate documentation be provided after the LLC described in the application is formed.
PASSED AND ADOPTED by the Homer City Council this 15th day of October, 2012.
CITY OF HOMER
MARY E. WYTHE, MAYOR
JO JOHNSON, CMC, CITY CLERK
Fiscal Note: Annual lease revenue $8,703.12.