Memorandum 11-107 Lease Proposal Alaskan Coastal Freight, LLC Lot 11 Homer Spit

MEMORANDUM 11-107

TO: Mayor Hornaday and Homer City Council
FROM: Walt Wrede
DATE: July 25, 2011
SUBJECT: Lease Proposal / Alaskan Coastal Freight, LLC

In late April of this year, the City issued a Request for Proposals for leases on thirteen lots in the port and harbor area. The RFP was generated right after the Council adopted the Land Allocation Plan which stipulates which lots are available for lease. Two proposals were received and the Lease Committee reviewed them at a Special Meeting on June 9, 2011.
Alaskan Coast Freight, LLC submitted a proposal to lease Lot 11, Homer Spit Subdivision No. 5. This lot is adjacent to Freight Dock Road and the chip pad. Alaskan Coastal Freight is a locally owned and well established barge and freight operation based in Homer. They are currently doing a large volume of business from the harbor and rented short term storage space on the uplands. The company is looking for a more permanent base of operations. The proposed use is equipment and freight staging for marine transport.
The staff report found that the proposal was very promising but that it lacked sufficient detail in some key areas. The report recommended that the City Manager be requested to meet with the applicant in order to seek clarification on some of the details. The Committee agreed that additional information was needed but found that the proposal was sufficiently promising had enough merit that the matter should go straight to the Council. A motion was passed that recommended that the Council adopt a resolution which authorized the City Manager to begin negotiations on a lease and work out the missing detail during the negotiation process.
RECOMMENDATION: Adopt Resolution 11-080