Resolution 19-009, Approving A Lease Amendment Between Alaska Custom Seafoods and the City

CITY OF HOMER
HOMER, ALASKA

City Manager

RESOLUTION 19-009

A RESOLUTION OF THE CITY COUNCIL OF HOMER, ALASKA, APPROVING A LEASE AMENDMENT TO MODIFY ARTICLE SIX OF THE GROUND LEASE AND SECURITY AGREEMENT HELD BETWEEN BRAD FAULKNER OF ALASKA CUSTOM SEAFOODS AND THE CITY.

WHEREAS, Alaska Custom Seafoods and the City of Homer entered into a ground lease and security agreement dated January 26, 2013 for a twenty year term regarding City of Homer Lot 88-4 on the Homer Spit; and

WHEREAS, On May 26, 2010, Alaska Custom Seafoods listed a development plan in the lease application that included the construction of four buildings and a boardwalk; and

WHEREAS, Alaska Custom Seafoods stated the businesses conducted on the property would include a fish buying business and subleases to galleries, shops, fish buyers, and charter companies; and

WHEREAS,  On February 28 2018, the City determined Alaska Custom Seafoods did not abide by the conditions set in Article Six of the ground lease and security agreement approved in 2013 and therefore was in default of the lease for failure to complete its stated development plan; and

WHEREAS, On May 11, 2018, Mr. Faulkner submitted a lease application and requested an amendment to Article Six of his lease so that Alaska Custom Seafoods would no longer be out of compliance with its contractual development plan lease; and

WHEREAS, City Administration reviewed the updated lease application and approved of the changes to Article Six of the ground lease and security agreement to bring Alaska Custom Seafoods into compliance with current business activity on the lot; and

WHEREAS, On January 23, 2019, the Port and Harbor Advisory Commission reviewed the updated lease application and approved of the changes with the added condition that any further default issues will immediately be brought back before the Port and Harbor Advisory Commission for consideration to recommend further action by the City Manager and/or City Council; and

WHEREAS, On February 5, 2019, Mr. Faulkner submitted an updated lease application development plan to accurately represent current lot conditions and items discussed in the January 23, 2019 Port and Harbor Advisory Commission meeting; and

WHEREAS, Homer City Code 18.08.120 (b) Improvements, states that improvements not included in the lease agreement or improvements that are inconsistent with or deviate from those permitted in the lease agreement must be approved by Council via resolution.

NOW, THEREFORE, BE IT RESOLVED that the Homer City Council hereby approves the amendment to Article Six of the Alaska Custom Seafoods lease and authorizes the continuation of the ground lease and security agreement Alaska Custom Seafoods holds with the City until July 31, 2033 as long as all conditions of the lease are met.

PASSED AND ADOPTED by the Homer City Council on this ___day of ________, 2019.

                                        CITY OF HOMER

                                                                                                                _______________________________
                                                                                                                KEN CASTNER, MAYOR

ATTEST:

______________________________
MELISSA JACOBSEN, MMC, CITY CLERK

Fiscal Note: $11,650.32 in annual base rent for 2019