Resolution 17-095 Amending the Icicle Seafoods Lease to Include Lot 42

CITY OF HOMER
HOMER, ALASKA

City Manager

RESOLUTION 17-095

A RESOLUTION OF THE HOMER CITY COUNCIL APPROVING AN AMENDMENT TO THE ICICLE SEAFOOD’S, INC. LEASE FOR LOT 41 TO INCLUDE LOT 42 HOMER SPIT SUBDIVISION AMENDED, WHICH EXPIRES DECEMBER 31, 2036 WITH A BASE RENT OF $69,648 SUBJECT TO APPRAISAL AND AUTHORIZING THE CITY MANAGER TO EXECUTE THE APPROPRIATE DOCUMENTS.

WHEREAS, Icicle Seafoods, Inc. is in a 20-year lease with two 5-year options which expires Dec. 31, 2036 with the City of Homer for Lot 41 Homer Spit Subdivision Amended; and

WHEREAS, Icicle Seafood’s, Inc. also leases the adjacent lot, Lot 42 Homer Spit Subdivision Amended from the Alaska Mental Health Trust Authority; and

WHEREAS, Ordinance 17-41 authorizes the City to acquire from Alaska Mental Health Trust Authority (AMHTA) as  fee simple absolute ownership of Lot 42 Homer Spit Subdivision Amended and to remove all claims or cloud made by AMHTA of partial ownership of any and all properties on the Homer Spit; and

WHEREAS, On January 9, 2017 the City Council adopted Resolution 17-008 supporting a new 20-year lease with two, five-year options with Icicle Seafoods LLC. for Lot 41 Homer Spit Subdivision Amended without the parcel being advertised through the Request for Proposal process; and

WHEREAS, Icicle Seafood’s Inc. has expressed interest in amending its’ long term lease with the city for Lot 41 to include Lot 42 Homer Spit Subdivision Amended; and

WHEREAS, When the City is successful in acquiring Lot 42 from the AMTHA it is in the best interest of the community to support the continued operation of a long-standing lessee with a successful business in the City of Homer, as a seafood-buyer and commercial fishing fleet support facility, without Lot 42 Homer Spit Subdivision Amended being advertised through the Request for Proposal process.

NOW THEREFORE BE IT RESOLVED, the City Council hereby authorizes the City Manager to amend the existing lease for Lot 41 with Icicle Seafood’s Inc. upon acquiring Lot 42 from AMHTA as follows:

Section 1 Icicle lease of lot 41, Lease of Property – Add Lot 42 Homer Spit Subdivision Amended containing 64,033 square feet, more or less, also known as Kenai Peninsula Borough Tax Parcel No. 18103418.

Section 4.01 Base Rent – Amending the annual base rent from $35,070 to $69,648 payable monthly in advance in installments of $5,804 plus tax beginning on the date the acquisition is recorded with the State of Alaska, subject to appraisal.

NOW, THEREFORE, BE IT RESOLVED that the Homer City Council hereby approves amending the Icicle Seafood’s, Inc. lease of Lot 41, to include Lot 42 Homer Spit Subdivision Amended with an annual base rent to $69,648 and authorizing the City Manager to execute the appropriate documents.

PASSED AND ADOPTED by the Homer City Council this 27st day of November, 2017.

CITY OF HOMER
 

_______________________                                  

DONNA ADERHOLD, MAYOR PRO TEMPORE

ATTEST:
 

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MELISSA JACOBSEN, MMC, CITY CLERK

Fiscal Note:  Currently the base lease is for lot 41 is $35,070 annually, which will increase to $69,648 annually once lot 42 is included in the lease. An appraisal of both properties will be performed to make sure the price is reflective of current market conditions, as is customary every 5 years with all leased properties.