Resolution 14-043(A) New 20-Year Lease with Snug Harbor Seafoods for Lot 13B, Port Industrial Subdivision Number 2

CITY OF HOMER

HOMER, ALASKA

                                                                                                                                 City Manager

RESOLUTION 14-043(A)

A RESOLUTION OF THE CITY COUNCIL OF HOMER, ALASKA, APPROVING A TWENTY-YEAR LEASE, WITH TWO FIVE-YEAR OPTIONS, FOR SNUG HARBOR SEAFOODS ON LOT 13B, PORT INDUSTRIAL SUBDIVISION NUMBER 2, AND AUTHORIZING THE CITY MANAGER TO EXECUTE THE APPROPRIATE DOCUMENTS.

               WHEREAS, On December 13, 2010 the Homer City Council adopted Resolution 10-98 entitled “A RESOLUTION OF THE CITY COUNCIL OF HOMER, ALASKA, APPROVING A FIVE YEAR LEASE WITH TWO ONE YEAR OPTIONS ON ONE HALF OF LOT 13 B FOR SNUG HARBOR SEAFOODS AND AUTHORIZING THE CITY MANAGER TO EXECUTE THE DOCUMENT”; and

               WHEREAS, At the time the lease was approved, the applicant made a commitment to installing a permanent building affixed to a foundation and connected to City water and sewer; thus resolving outstanding zoning issues and paving the way for a new lease; and

WHEREAS, Lease negotiations have continued in the interim and during this period, the applicant’s needs and desires changed  and the company decided to submit a revised lease proposal; and

WHEREAS, The new lease proposal differs from the original in several significant ways which include:

The applicant wishes to lease Lot 13 B in its entirety as opposed to one half of the Lot. This provides for expanded activities and a better, more efficient use of space.
The applicant proposes a larger building that can accommodate a greater range of activities. This represents a significant increase in investment and commitment.
The list of proposed uses and activities has expanded which may result in additional employment opportunities, taxes, and other revenues.
The applicant requests a longer lease term, twenty years with two five year options in recognition of the increased investment and economic benefit to the City.

WHEREAS, It is appropriate that the City Council review and approve the new lease proposal given the scope and nature of the proposed revisions; and

WHEREAS, The City administration has reviewed the revised proposal using the criteria contained in the adopted Lease Policy, determined that the revised proposal is in the City’s interest, and recommends approval of a new lease incorporating the revisions listed above; and

               WHEREAS, The Lease Committee reviewed the revised proposal and staff report at a Special Meeting on March 21, 2014 and recommends approval.

               NOW, THEREFORE, BE IT RESOLVED that the Homer City Council hereby approves a new twenty-year lease, with two five-year options, for Snug Harbor Seafoods, on Lot 13B, Port Industrial Subdivision Number 2, and authorizes the City Manager to execute the appropriate documents.

               BE IT FURTHER RESOLVED a copy of the draft lease, site plan, and building plan is attached and incorporated herein.

               BE IT FURTHER RESOLVED that the recommendations of the Lease Committee regarding appraisals, benchmarks, and sport fish will be addressed in the final version of the lease.

PASSED AND ADOPTED by the Homer City Council this 24th day of March, 2014.

CITY OF HOMER

                                                                                                         MARY E. WYTHE, MAYOR

ATTEST:

JO JOHNSON, MMC, CITY CLERK

Fiscal Note: Rent to be determined by appraisal; anticipated to be between $15,000 and $18,000 annually.