Resolution 15-015(A) Amendment to Bob's Trophy Charter Lease to Permit Transfer to Wilson Stick, Inc.

Summary

A Resolution of the City Council of Homer, Alaska, Approving an Amendment to Bob’s Trophy Charter Lease on Tract 1-B Fishing Hole Subdivision No. 2, to Permit Transfer of the Lease to Wilson Stick, Inc., Extend the Lease for a Period of 20 Years, and Authorizing the City Manager to Execute the Appropriate Documents. City Manager.                                                             

Ordinance/Resolution ID: 
15-015(A)
Ordinance/Resolution Status: 
Adopted
Effective Date: 
03/23/2015
File Attachments: 
Postponed Until: 
03/23/2015

Details

CITY OF HOMER
HOMER, ALASKA

                                                                                                                               City Manager
RESOLUTION 15-015(A)

A RESOLUTION OF THE CITY COUNCIL OF HOMER, ALASKA, APPROVING AN AMENDMENT TO BOB’S TROPHY CHARTER LEASE ON TRACT 1-B FISHING HOLE SUBDIVISION NO. 2, TO PERMIT TRANSFER OF THE LEASE TO WILSON STICK, INC. EXTEND THE LEASE FOR A PERIOD OF 20 YEARS, AND AUTHORIZING THE CITY MANAGER TO EXECUTE THE APPROPRIATE DOCUMENTS.

 

                WHEREAS, The owner of Bob’s Trophy Charters have reached a tentative agreement to sell the building and business to Wilson Stick, Inc.; and

 

                WHEREAS, The buyer has requested an assignment of the lease and extension of the lease term in order to complete the transaction and obtain the necessary financing; and

 

                WHEREAS, Chapter 13.3 of the Lease Policy provides that the assignee shall submit a new lease application form complete with all attachments and proposals following the process described for new lease applications, and submit it along with any applicable fees to the Lease Committee for review; and

 

                WHEREAS, A Lease Application / Assignment Form has been submitted and found to be complete and responsive pursuant to Chapter Five of the Lease Policy; and

 

                WHEREAS, The City Administration has reviewed the application using the proposal evaluation criteria contained in Chapter 6 of the Lease Policy and met with the applicant pursuant to Chapter 5.1 B; and

 

                WHEREAS, The Administration has concluded that the applicant has the experience, financial capacity, investment plan, and growth potential to provide a significant benefit to the City and justify an assignment of the lease; and

 

                WHEREAS, Section 14.4 of the Lease Policy provides that “if a lessee intends to assign the lease as part of the sale of the business located on the lease lot, the person who intends to purchase the business may apply to extend the lease term to allow the continuation of the business and secure financing for the purchase.”; and

 

                WHEREAS, The new owner has applied for financing through First National Bank Alaska and approval is contingent upon the lease term being extended.

 

                WHEREAS, The Administration recommends assignment of the lease, transfer to the new standard lease document, extension of the term to twenty years, and rent at appraised value; and

 

                WHEREAS, The Administration acknowledges that the Comprehensive Plan for the Spit recognizes that retail may not be the highest and best use for this property; and

 

                WHEREAS, The City reserves the right to utilize this parcel for its highest and best use; and

 

                WHEREAS, The Lease Committee reviewed the application and recommends approval; and

 

                WHEREAS, The Port and Harbor Advisory Commission reviewed the application at a Special Meeting on February 17, 2015 and again at their Regular Meeting on February 25, 2015 and recommends approval.

 

                NOW, THEREFORE, BE IT RESOLVED that the Homer City Council hereby approves the assignment of the lease on Tract 1-B Fishing Hole Subdivision No. 2 to Wilson Stick, Inc. and authorizes the City Manager to execute the appropriate documents.

 

                BE IT FURTHER RESOLVED that should the City determine that this parcel is needed for another purpose, the City will require the vacation of the property and provide an alternative parcel for the lessee for the duration of the lease term, and the building will be removed at the lessee’s sole expense.

 

                BE IT FURTHER RESOLVED that the term of the lease shall be twenty years, the rent shall be appraised market rent, and the permitted uses shall be those included within the lease.

 

                PASSED AND ADOPTED by the Homer City Council this 23rd day of March, 2015.

 

CITY OF HOMER

                                                                                                                                                                            

MARY E. WYTHE, MAYOR

ATTEST:

                                                                     

JO JOHNSON, MMC, CITY CLERK

Fiscal Note:  N/A