LEASE COMMITTEE UNAPPROVED

REGULAR MEETING

APRIL 29, 2010

Session 10-02 A Regular Meeting of the Lease Committee was called to order at 3:00 pm on April 29, 2010 by Chair Shelly Erickson at the City Hall Cowles Council Chambers located at 491 E. Pioneer Avenue, Homer, Alaska.

PRESENT: COMMITTEEMEMBERS ERICKSON, HAWKINS, ABBOUD, HARVILLE

ABSENT: COMMITTEEMEMBER ALDERFER

STAFF: DEPUTY CITY CLERK KRAUSE

APPROVAL OF THE AGENDA

The agenda was approved by consensus of the Commission.

PUBLIC COMMENT REGARDING ITEMS ON THE AGENDA (3 Minute Time Limit)

City resident and business owner Brad Faulkner was present. He commented on the lease agreements made in earlier years, the requirements to have a lease and what they have to put up with as a lessee of the city.

He made the following points:

1. Four years of legal complications to get a lease.

2. Paying out $35,000 on tax liens on a lease that specifically states no liens allowed.

3. Banks will not work with you on a lease that states no liens whatsoever.

4. Paying more than what it is valued for the past 15 years.

5. Must live on lease property as he has no other choice.

6. Promised new lease re-write, but never received.

7. Lease Committee that is stacked with City staff.

8. City Council approval of recommended changes will prompt him to immediately file for a new lease.

9. Marine Industrial Only

10. Has followed the letter of the lease.

11. Was informed that cannot renew lease without sending out to RFP.

Mr. Faulkner briefly outlined what he would like to do with his lease. He assured the Committee that upon changes in the Lease Policy and committee make-up he would immediately put in for renewal.

Mr. Hawkins added it to the February agenda in order to have a place on the agenda. Apologies were extended for the oversight in notifying Mr. Faulkner that this was on the agenda and appreciated his attendance at the meeting.

There was no further discussion.

RECONSIDERATION

There were no items for reconsideration.

APPROVAL OF MINUTES

A. Minutes for Regular Meeting on January 28, 2010

ABBOUD/HAWKINS - MOVED TO APPROVE THE MINUTES AS PRESENTED.

There was no discussion.

VOTE. YES. NON-OBJECTION. UNANIMOUS CONSENT.

Motion carried.

VISITORS

None.

STAFF & COUNCIL REPORT/COMMITTEE REPORTS/BOROUGH REPORTS

(Chair set time limit not to exceed 5 minutes)

None.

PUBLIC HEARING (3 minute time limit)

None.

PENDING BUSINESS

A. Review and Recommendations to City Council on Lot 8-D-1 Request for Proposal Submittals.

A brief discussion was held and no action or further recommendations were made by the Committee.

There was no further discussion.

NEW BUSINESS

A. Memo from Port & Harbor Director Hawkins Re: Kachemak Bay Wooden Boat Society (KBWBS) Proposal

Mr. Hawkins stated that a proposal was received from the Kachemak Bay Wooden Boat Society for approximately ¼ acre of Tract 1-A of the Fishing Hole #2 Subdivision.

A brief discussion was held on the proposed submittal from KBWBS. It was noted that it looked good. The fire marshal would have own recommendations and requirements for the structure. Homer City Code would be applied. There was hesitation on recommending leasing this property for $1.00. The land on the Spit is very valuable. The amount requested of $1 per year lease fee was minimal because there are very few opportunities for KBWBS which is a non-profit to make money. Recommendation was made to charge an admission fee. Chair Erickson was hesitant in agreeing to recommend approval of the $1.00 per year lease. Mr. Hawkins stated that during the lease negotiations are when leasing amount, requirements, etc., would be determined. Further discussion included the following:

1. Benefits to the community adding additional options for tourism, historical aspects, and learning opportunities.

2. Justification of use of the space.

3. Sending out for RFP in fairness to other non-profits with specific requirements.

4. The location for them is crucial to be near water or have water access.

5. Designating the area by default as a non-profit area in the spit comprehensive plan.

6. The location is a green space and foot traffic friendly.

7. The overall support from the Committee and Port and Harbor Commission for this project.

8. Withholding recommendations until completion of the Homer Spit Comprehensive Plan.

Chair requested any additional recommendations.

VELSKO/HARVILLE – MOVED TO RECOMMEND FORWARDING TO THE CITY COUNCIL AND CITY MANAGER TO START NEGOTIATIONS.

Further discussion on postponing the decision but make a recommendation that they can use the property for the festival this year and entering into a short term lease until the details could be discussed. It was recommended to issue a short term permit.

VOTE. YES. HARVILLE, VELSKO.

VOTE. NO. ABBOUD, ERICKSON, HAWKINS.

Motion failed.

ABBOUD/HARVILLE - MOVED TO RECOMMEND NEGOTIATION OF SHORT TERM LEASE UP TO THREE YEARS.

Further discussion on time frame to construct building, the type of boats to be stored on the property, negotiating a five year short term lease, making lease contingent on the comprehensive plan, the timeline for approval of the Spit Comprehensive Plan. Short term lease offers flexibility on negotiating better long term lease agreement that satisfies all parties involved.

VOTE. YES. VELSKO.

VOTE. NO. HAWKINS, HARVILLE, ERICKSON, ABBOUD

Motion failed.

HARVILLE/ - MOVED TO RECOMMEND SHORT TERM LAND USE PERMIT AND THEN LET OUT FOR REQUEST FOR PROPOSAL AFTER THE TERM.

Motion died for lack of a second.

HARVILLE/VELSKO – MOVED TO RECOMMEND FORWARDING TO CITY COUNCIL THROUGH THE CITY MANAGER FOR A THREE YEAR SHORT TERM LEASE WITHOUT GOING THROUGH THE REQUEST FOR PROPOSAL PROCESS AND GRANTING LESS THAN FAIR MARKET VALUE.

A brief discussion was held regarding allowing a short term lease for this property.

VOTE. YES. NON-OBJECTION. UNANIMOUS CONSENT.

Motion carried.

B. AK Custom Seafoods Lease Expiration

There was no further discussion on this item.

INFORMATIONAL MATERIALS

A. Memorandum from Port and Harbor Advisory Commission dated February 4, 2010 Re: Selling City Owned Property.

B. Letter to Kachemak Bay Wooden Boat Society Dated February 5, 2010 Re: Long Term Lease Proposal

C. Memorandum to Homer City Council and City Manager Wrede Dated February 5, 2010 Re: 2010 Land Allocation Recommendations from Lease Committee

D. Memorandum to Homer City Council and City Manager Wrede Dated February 4, 2010 Re: 2010 Land Allocation Recommendations from Port & Harbor Advisory Commission.

The Committee held a brief discussion on selling city property; a few of the Port & Harbor Commissioners were reluctant to approve lease policy changes.

There was no further discussion.

COMMENTS OF THE AUDIENCE

None.

COMMENTS OF THE CITY STAFF

None.

COMMENTS OF THE COUNCILMEMBER (If one is appointed)

None.

COMMENTS OF THE CHAIR

Chair Erickson thanked everyone. Got some good stuff done.

COMMENTS OF THE COMMITTEE

Mr. Velsko can hardly wait until the next meeting.

Mr. Abboud and Ms. Harville had no comments.

Mr. Hawkins commented thank you for your time.

ADJOURN

There being no further business before the Lease Committee Chair Erickson adjourned the meeting at 3:51 p.m. The next regular meeting is scheduled for 3:00 p.m. on July 8, 2010 at City Hall, Cowles Council Chambers, 491 E. Pioneer Avenue, Homer, Alaska.

Renee Krause, Deputy City Clerk I

Approved: