Resolution 16-116 Assignment of Lease for Bob’s Trophy Charters on Tract 1-B to Todd Strand

CITY OF HOMER

HOMER, ALASKA

                                                                                                                               City Manager

RESOLUTION 16-116

A RESOLUTION OF THE HOMER CITY COUNCIL APPROVING AN ASSIGNMENT OF LEASE FOR BOB’S TROPHY CHARTERS ON TRACT 1-B AND AWARDING TODD STRAND, DBA BOB’S TROPHY CHARTERS, A TWENTY-YEAR LEASE WITH TWO, FIVE-YEAR OPTIONS FOR TRACT 1-B, FISHING HOLE SUBDIVISION NO. 2, WITH AN ANNUAL BASE RENT OF $6,256.80, AND AUTHORIZING THE CITY MANAGER TO MOVE FORWARD WITH LEASE NEGOTIATIONS AND EXECUTE THE APPROPRIATE DOCUMENTS.

               WHEREAS, David and Diane Morris, long-time owners of Alaska High Hopes – Bob’s Trophy Charters, have reached a tentative agreement to sell the building and business to Mr. Todd Strand, who wishes to continue operating Bob’s Trophy Charters as a fishing charter business on the Homer Spit; and

WHEREAS, Per Chapter 13.3 of the City’s Lease Policies and Procedures, Mr. Strand has submitted a new lease application form with his proposal and lease assignment request to the City of Homer for a new, twenty-year lease in order to complete the business sale and obtain the necessary financing; and

WHEREAS, The City Administration, the Lease Advisors, and the Port and Harbor Advisory Commission have reviewed the application and proposal and found it to be complete and responsive; and

WHEREAS, Mr. Strand has provided sufficient information to the City to show that Bob’s Trophy Charters is being sold to a responsible party and is able to continue operating it as a viable fishing charter business; and

               WHEREAS, The Lease Advisors and the Port and Harbor Advisory Commission recommend to City Council that the lease assignment request be granted to Bob’s Trophy Charters, and a new twenty-year lease with two, five-year options be awarded to Mr. Todd Strand, dba Bob’s Trophy Charters, for Tract 1-B for the purpose of operating a fishing charter business without the parcel being advertised through the Request for Proposals process.

               NOW, THEREFORE, BE IT RESOLVED that the Homer City Council hereby approves the assignment of the lease on Tract 1-B to Mr. Todd Strand and that the City of Homer enter into a new, twenty-year term lease with two five-year options to renew with Mr. Todd Strand, dba Bob’s Trophy Charters, for Tract 1-B, Fishing Hole Subdivision No. 2, with a base rent of $6,256.80 per year (subject to change as determined by lease negotiations and/or ordered appraisal if needed), and authorizing the City Manager to move forward with lease negotiations and execute the appropriate documents.

               BE IT FURTHER RESOLVED that this assignment and new lease is contingent upon any outstanding zoning code violations being resolved by David and Diane Morris before the completion and signing of a new lease with Mr. Strand.

               PASSED AND ADOPTED by the Homer City Council this 21st day of November, 2016.

CITY OF HOMER

                                                                                                         BRYAN ZAK, MAYOR

ATTEST:

JO JOHNSON, MMC, CITY CLERK

Fiscal Note:  Base lease will be $6,256.80 annually, subject to change as determined by lease negotiations and/or ordered appraisal if needed, and is adjusted annually to keep pace with the Consumer Price Index.