Session
09-08 a Regular Meeting of the Lease Committee was called to order on October
8, 2009 at 3:00 pm by Chair Shelly Erickson at the Homer City Hall Cowles
Council Chambers located at 491 E. Pioneer Avenue, Homer,
PRESENT:
SHELLY ERICKSON, ECONOMIC
DEVELOPMENT ADVISORY COMMISSION
PHILIP ALDERFER, PUBLIC
AT LARGE
BRYAN HAWKINS,
RICK ABBOUD,
JOHN VELSKO,
ABSENT: REGINA HARVILLE, FINANCE DIRECTOR (EXCUSED)
STAFF:
LAURIE MOORE, ACCOUNTING
SUPERVISOR
DEPUTY
Approval of the Agenda
Chair Erickson requested the agenda be amended to move item A under New
Business to Item D and move all other items up.
The amended agenda was approved by consensus of the committee.
Public Comments Regarding Items on the Agenda
There were no comments.
RECONSIDERATION
None.
APPROVAL OF THE MINUTES
A. Meeting Minutes for the Regular Meeting
July 9, 2009
B. Meeting Minutes for the Special Meeting
July 15, 2009
ABBOUD/VELSKO-MOVED
TO APPROVE BOTH REGULAR AND SPECIAL MEETING MINUTES FOR JULY.
There was no
discussion.
VOTE. YES.
NON-OBJECTION. UNANIMOUS CONSENT.
Motion carried.
VISITORS
None.
STAFF & COUNCIL REPORT/COMMITTEE REPORTS/BOROUGH REPORTS
A. Lease Updates Report dated October 1,
2009 from Bryan Hawkins, Port Director/Harbormaster
Harbormaster Hawkins
reported on the following:
- A bid/proposal
package to three local appraisers to get a group appraisal on nine properties.
- The attorneys for
Seldovia Village Tribe are reviewing the Lease.
- Peninsula Scrap
& Salvage will be shipping the load on the chip pad within the next two
weeks. Their Lease does have a holdover clause. They are interested in renewing
the lease for next year.
- The CUP for the
restaurant for the Auction Block has been approved. A question that has come up
has been if this would be a sub-lease or something they would operate
themselves.
- The City staff has
been working with Fish Factory concerning the strip of land.
Mr. Alderfer
inquired what the average increase was on the properties. Mr. Hawkins responded
that on average there was approximately $1000.00 increase. He added that Spit
Leases have a low of $0.13 per square foot to high of $0.83 per square foot per
year. Harbormaster Hawkins assured the Committee that there is no break in the
insurance coverage provided by Peninsula Scrap & Salvage. It is very likely
that they will lease that space again next year. Interesting information
offered was the material gathered is from the Homer area only.
Mr. Abboud responded
to questions regarding the Fish Factory and caretaker issue as to when it will
or can be resolved. He stated that the requirement is a CUP and they are still waiting
for the CUP application. The City cannot act for him or speak for the reasons
for delay in applying.
PUBLIC HEARING
None.
Pending Business
A. El Pescador Sublease Request
a. Memorandum Dated October 1, 2009 from
Bryan Hawkins, Port Director
Re: El Pescador Sub-Lease Request
b. Letter from Jose Ramos, Katerina
Filina, Controller of Don Jose’s, LLC Dated
July 17, 2009
c. Letter from Katerina Filina,
Controller, Don Jose’s, LLC Received August 10, 2009
Re: Proposed Sub-Lease with Smoke
Wagon Water Taxi
d. Asbuilt Lot 19, Homer Spit
Amended Received July 28, 2009
Chair Erickson
requested a motion to discuss.
VELSKO/ALDERFER – SO
MOVED.
There was no
discussion.
VOTE. YES.
NON-OBJECTION. UNANIMOUS CONSENT.
Motion carried.
Harbormaster Hawkins
noted the correspondence included in the packet that El Pescador is interested
in a sub-lease for the Smoke Wagon and three additional sub-leases.
Mr. Abboud stated
that the included survey depicted a non-compliant building sitting on the lot
line. There is no consideration for the existing right of ways. His suggestion
was to bring the issue forward during the Spit Comprehensive Plan. This may be
the time to discuss a zero lot line on the Spit. It is a commonplace problem on
the Spit with the huge right of way that is not being used. He does believe it
would be a good time to implement zero lot line.
The best way would
be to implement this into the current document and it could be in the works by
Spring 2010. Chair Erickson questioned changing the ordinance prior to the Spit
Comp Plan. Mr. Abboud outlined the process regarding the Spit Comprehensive
Plan. In absence of a change in the ordinance and inclusion of the Spit Comp
Plan he would recommend that the building be removed as it cannot be permitted
as it stands. He can leave it and not enforce code. He further added that
before this structure was moved technically there was no problem on the city
side because it was on State land.
Mr. Alderfer related
that the direction may be that he is not in compliance and will not be in
compliant until the ordinance changes; it is written into and approved in the
Spit Comprehensive Plan.
Further discussion
regarding the situation including changing the size of the Sterling Highway
right of way, and implementing zero lot lines in the Ramp 3 approach area.
Chair Erickson
inquired if they should make a recommendation to have zero lot lines. Mr.
Abboud did not feel that this would be appropriate at this time. He advised a
better time would be when it is received from Planning Commission.
Harbormaster Hawkins
proposed recommending that the Planning Department submit a letter to the El
Pescador. Mr. Abboud stated that the Planning Department could send
correspondence regarding the current proposal not be acceptable and suggest
alternatives. Mr. Alderfer recommended that the Planning Department or the
Harbor Office send correspondence addressing the problem and giving the El
Pescador a time line that this problem needs to be addressed. It was determined
that this would not be completed in time for next season. Mr. Velsko stated that earlier in the year he
had received a call regarding lot lines. Chair Erickson wanted to ensure that
encouragement was still given to businesses. Mr. Abboud stated they could not
give any guarantees and this represented the quagmire that is dealt with daily.
They could petition the rule makers. Harbormaster Hawkins stated that sometimes
you must say no. There is clear infringement against the established code. It
was noted that there may be alternatives that have not been discussed or looked
at. There may be an outside the box answer.
Mr. Velsko stated
the letter to the El Pescador should convey that at this time approval cannot
be granted. The existing setbacks do not allow for the proposed sublease(s).
However, there is the potential in the future under the Spit Comprehensive Plan
for a variance to be granted. The letter should also include the consultant’s
contact information. Harbormaster Hawkins will be drafting the letter to notify
the El Pescador.
ABBOUD/VELSKO -
MOVED TO DIRECT HARBORMASTER HAWKINS TO COMPOSE AND SUBMIT LETTER TO EL
PESCADOR REGARDING THE SUB-LEASE REQUEST EXPLAINING THE EXISITNG CODE AND
OFFERING OPTIONS.
There was no
discussion.
VOTE. YES. NON-OBJECTION.
UNANIMUSE CONSENT.
Motion carried.
NEW BusinesS
A. Home Run Oil Lease Proposal for Tank
Farm on Lot 13
ABBOUD/ALDERFER
– MOVED THAT CHAIR ERICKSON HAS A CONFLICT OF INTEREST.
There
was a brief discussion.
Chair
Erickson turned the gavel over to Vice Chair Alderfer.
Vice
Chair Alderfer inquired what was needed today from the Committee and Mr. Abboud
felt it was informational and no action was necessary.
Vice
Chair Alderfer invited Mr. Erickson to approach the Committee.
Mr.
Erickson outlined the email that was distributed to the Committee. He was open
for any questions. He inquired on the process to select the right property. He
understood the normal process was releasing a lot or lots for RFP. Mr. Velsko
confirmed that Home Run Oil was interested in Lot 13 or if there was another
lot or additional lots. Harbormaster Hawkins stated that the current
designation for lot 13 being used for storage would need to be changed. Mr.
Velsko stated that the process would then be the Lease Committee re-designating
the lot, and then it would have to be let through the RFP process. It was noted
that a construction start date was Spring 2010. Further discussion regarding
location and submitting a proposal for the project.
Vice
Chair Alderfer inquired if the project was shovel- ready. Mr. Erickson stated
it would have to go through the permitting process which is approximately 60
days. Vice Chair Alderfer brought up valid points on other regulations
regarding tank farms. Harbormaster Hawkins responded that a spill response team
would be under the owner of the tank farm. There was still an unknown variable
in the security requirements. Mr. Erickson addressed concerns expressed
regarding infrastructure such as power, water and sewer. Pipeline for or to the
Deep water dock would be required. He did further state that due to the long-term
durability of this project he would require a longer term lease such as 40
years with two 10 year renewal options. In financing options they are requiring
at least 10 years beyond the financing period. Home Run Oil would like a
purchase option with the City holding a first right of refusal. A brief note
was made regarding approval and negotiations made on a case by case basis.
VELSKO/ABBOUD
- MOVED TO SCHEDULE A SPECIAL MEETING NOVEMBER 16, 2009 AT 3:00 P.M. TO DISCUSS
THIS PROJECT.
There
was a brief discussion on scheduling a special meeting. The Committee should
forward a recommendation to City Council regarding this project. The Council
meeting date is November 23, 2009. It was determined that the Lease Committee
would have to meet prior to November 17, 2009 in order to make the packet
deadline.
VOTE.
YES. NON-OBJECTION. UNANIMOUS CONSENT.
Motion
carried.
Vice
Chair Alderfer suggested that Mr. Erickson submit the following:
-
What is required from the Lease
Committee
-
First lot choice, second lot choice
-
Lease versus purchase
-
Lease length
-
Term renewability
-
Time Lines
He
requested Mr. Abboud to supply any information regarding guides, permitting
from a Planning perspective. He requested Mr. Velsko could get a recommendation
from the Port and Harbor with any items of discussion from the Commissioners.
Mr.
Abboud recommended Mr. Erickson meet with the Coastal Management Representative
with the Kenai Borough for a pre-permitting meeting. It will offer good insight
into the overall process. He will forward his contact information to him
tomorrow.
Vice
Chair Alderfer requested from Harbormaster Hawkins any issues or requirements
such as security, spill response, etc. This would assist the committee in
addressing any possible questions that City council may have.
On
behalf of the Committee he thanked Mr. Erickson and looked forward to the next
meeting.
B. Lease Committee Meeting Dates for 2010
- January 14, 2010
- April 8, 2010
- July 8, 2010
- October 14, 2010
ABBOUD/VELSKO
– MOVED TO DISCUSS.
There
was no discussion.
VOTE.
YES. NON-OBJECTION. UNANIMOUS CONSENT.
Motion
carried.
Mr.
Velsko recommended moving the January meeting date to accommodate scheduling
conflicts. There was a brief discussion on the possibility of allowing
teleconferencing for the Committees and Commissions. It was recommended to
change the April 8th to April 29, 2010 to allow for scheduling
conflicts. Chair Erickson suggested moving all meetings to the last week of the
month. There was consensus that the other meeting dates were okay.
HAWKINS/VELSKO
- MOVED TO CHANGE THE JANUARY 14TH MEETING DATE TO JANUARY 28, 2010 AND THE
APRIL 8TH MEETING DATE TO APRIL 29, 2010 AND THE REMAINING MEETING DATES WILL
BE JULY 8, 2010 AND OCTOBER 14, 2010.
There
was no discussion.
VOTE.
YES. NON-OBJECTION. UNANIMOUS CONSENT.
Motion
carried.
C. Election of Chair and Vice Chair
There
was a brief discussion on having the election and possibly postponing this due
to the concerns of a conflict by Chair Erickson. Deputy City Clerk Krause
explained the procedure that would deal with her conflict. She further
explained that there was no record of a vice chair.
There
floor was opened for nominations.
John
Velsko nominated Shelly Erickson as Chair and Bryan Hawkins as Vice Chair.
Rick
Abboud nominated Shelly Erickson as Chair and Philip Alderfer as Vice Chair.
There
were no more nominations.
Shelly
Erickson as Chair – 5 Philip
Alderfer as Vice Chair – 5
Shelly
Erickson was re-elected as Chair and Philip Alderfer was elected as Vice Chair.
D. Lot 13B, Fish Dock Road Proposed
Designation
a. Letter to Snug Harbor Seafoods
from Bryan Hawkins dated September 2, 2009
b. Memorandum to City Council and
Walt Wrede City Manager Dated July 17, 2009
Harbormaster Hawkins summarized the history for the record:
-
The
Committee reviewed and recommended to Council to approve lease.
-
An
application was received and preferred a five year lease.
-
Recommendation
was made by the Committee for a one year lease with submitting for the RFP
process yearly.
A discussion ensued whether a RFP would be used for each option, 1 year
short term or the normal long term lease. It was noted that there was a plus in
encouraging them to continue having the business there. They have been in the
location for almost 6 years. This is now informational as City Council did pass
approval for an Atypical Lease for this lot. Comment was noted that the process
was convoluted, going out for RFP for a long term lease but if none were
received then they would do a one year lease. Mr. Alderfer explained his
understanding of the process and the intent of City Council approving a one
year lease so that this lot would not be on the 2010 list to RFP.
There was no further discussion.
A. Lease Criteria Checklist
B. Resolution 09-100 Approving a Short
Term Atypical Lease for a Term Not to
Exceed one Year on Lot 13 B with
Snug Harbor Seafoods.
C. Memorandum dated July 16, 2009 Re:
Homer Enterprises, LLC Sub-Lease Request
C.
Memorandum Dated July 17, 2009 to
City Council, Mayor and City Manager
Regarding Lease of Lot 21 by
Seldovia Village Tribe
D. Lease Expiration Calendar Updated
August 31, 2009
There was no
discussion.
None.
COMMENTS OF THE
None.
COMMENTS OF THE CHAIR
None.
comments of the committee
None.
There being no further business to
come before the Committee, Vice Chair Alderfer adjourned the meeting at 4:25
p.m. There will be a Special Meeting on November 16, 2009 at 3:00 p.m. The
next Regular Meeting is scheduled for January 28, 2010 at 3:00 pm in the City
Hall Cowles Council Chambers located at 491 E. Pioneer Avenue, Homer,
Renee Krause,
Deputy City Clerk I
Approved: