Resolution 17-008 Awarding Icicle Seafoods, Inc. a New Lease for Lot 41 Homer Spit

CITY OF HOMER

HOMER, ALASKA

                                                                                                                               City Manager

RESOLUTION 17-008

A RESOLUTION OF THE HOMER CITY COUNCIL AWARDING ICICLE SEAFOODS, INC. A NEW 20-YEAR LEASE WITH TWO, 5-YEAR OPTIONS TO RENEW FOR LOT 41, HOMER SPIT SUB AMENDED ADL 18009, WITH AN ANNUAL BASE RENT OF $35,070.00, AND AUTHORIZING THE CITY MANAGER TO MOVE FORWARD WITH LEASE NEGOTIATIONS AND EXECUTE THE APPROPRIATE DOCUMENTS.

               WHEREAS, The City has had a long and collaborative relationship with Icicle Seafoods, which has operated in Homer, Alaska in some capacity since the construction of the Homer Harbor in the 1970’s; and

WHEREAS, In May 2016 the City of Homer became aware of the sale of Icicle Seafoods, Inc. to Snowflake Acquisition Co., who wish to continue operating it as a seafood-buying and fleet support facility under the name Icicle Seafoods; the City Attorney reached out to the new company to explain how a change in ownership affects the lease Icicle has with the City; and

WHEREAS, The City has adopted a strong policy against providing discounts on port and harbor services and cannot consent to an assignment of lease that perpetuates lower rates for any one lessee, therefore the City Attorney provided a current boilerplate lease to Icicle Seafoods as the basis for a new long-term lease; and

WHEREAS, Icicle Seafoods has been working with the City Attorney and City Administration in preparing a draft lease as they wish to enter into a new lease with the City of Homer for a 20-year term with two, 5-year options to renew; and

WHEREAS, The City Administration, City Attorney, and the Port and Harbor Advisory Commission conclude that Icicle Seafoods, Inc. has provided sufficient information to show that they can continue operating Icicle Seafoods as a viable seafood-buying and fleet support facility on the Homer Spit; and

               WHEREAS, The City Manager and the Port and Harbor Advisory Commission recommend to City Council that a new 20-year lease with two, five-year options be awarded to Icicle Seafoods for Lot 41 for the purpose of operating a seafood-buying and fleet support facility without the parcel being advertised through the Request for Proposals process.

               NOW, THEREFORE, BE IT RESOLVED that the Homer City Council hereby approves that the City of Homer enter into a new, 20 year-term lease with two 5-year options to renew with Icicle Seafoods for Lot 41, Homer Spit Sub Amended ADL 18009, with a base rent of $35,070.00 per year, and authorizing the City Manager to move forward with lease negotiations and execute the appropriate documents.

               PASSED AND ADOPTED by the Homer City Council this 9th day of January, 2017.

CITY OF HOMER

                                                                                                         BRYAN ZAK, MAYOR

ATTEST:

JO JOHNSON, MMC, CITY CLERK

Fiscal Note:  Base lease will be $35,070.00 annually, and is adjusted annually to keep pace with the Consumer Price Index.