Resolution 14-104 New Lease on Portion of Lot 12 (Chip Pad) for Alaska Scrap and Recycling

CITY OF HOMER

HOMER, ALASKA

                                                                                                                              City Manager

RESOLUTION 14-104

A RESOLUTION OF THE CITY COUNCIL OF HOMER, ALASKA, APPROVING A NEW FIVE YEAR LEASE ON ONE FOURTH OF LOT 12 (CHIP PAD) FOR ALASKA SCRAP AND RECYCLING, AND AUTHORIZING THE CITY MANAGER TO BEGIN LEASE NEGOTIATIONS.

               WHEREAS, The Port and Harbor staff recently issued a Request for Proposals to lease City land on the Homer Spit adjacent to the harbor; and

               WHEREAS, Two proposals were received and both applicants submitted requests to lease all or a portion of Lot 12 to store scrap metal in preparation for shipment to other ports; and

               WHEREAS, The Lease Committee met on September 16 to review and score the proposals; and

               WHEREAS, The Committee rejected one proposal because the application was incomplete pursuant to Chapter 5 of the Lease Policies and because the proposed use could not be physically accommodated at the Chip Pad at this time; and

               WHEREAS, The Committee found that the proposal from Alaska Scrap and Recycling to lease one fourth of Lot 12 for five years at market rent was complete and responsive to the RFP; and

               WHEREAS, Alaska Scrap and Recycling, formerly doing business in Homer as Peninsula Scrap, has been operating on the Chip Pad under a series of short term, six month leases and both the Company and the City were interested in securing a longer term lease which provided additional security and complied with the Lease Policies; and

               WHEREAS, The Committee found that Alaska Scrap and Salvage has an excellent lease history, is creating jobs and tax revenues, has the financial capacity to perform under the lease, and that the proposed use, probably the biggest recycling project the Peninsula has seen to date, provided environmental and social value to the entire Peninsula; and

               WHEREAS, The Committee recommends approval of a five year lease at market value for one fourth of the Chip Pad; and

               WHEREAS, The Committee recommendation was referred to the Port and Harbor Advisory Commission as required by the new, amended Lease Policies; and

               WHEREAS, The Commission reviewed the recommendation at its meeting on September 24, 2014 and recommends approval.

               NOW, THEREFORE, BE IT RESOLVED that the Homer City Council hereby approves a new five year lease on one fourth of Lot 12 (Chip Pad), at market rent, for Alaska Scrap and Recycling and authorizes the City Manager to begin lease negotiations.

               PASSED AND ADOPTED by the Homer City Council this 13th day of October, 2014. 

CITY OF HOMER

                                                                                          _____________________

MARY E. WYTHE, MAYOR

ATTEST:

______________________________

JO JOHNSON, MMC, CITY CLERK

Fiscal Note: N/A