City of Homer
LEASE COMMITTEE Unapproved
January
8, 2009 3:00 pm
Cowles Council Chambers
Meeting Synopsis
Session 09-01, a Meeting of the
Lease Committee was called to order at 3 p.m. on January
8, 2009 by
Chair Shelly Erickson at the Homer City Hall Cowles Council Chambers located at
491
E. Pioneer Avenue, Homer, Alaska.
PRESENT: Chair Shelly
Erickson, member of the Economic Development Commission; Rick Abboud, City
Planner; Bryan Hawkins, Port & Harbor Director; Regina Harville, Finance
Director; Philip Alderfer, public committee member; John
Velsko, member of the Port & Harbor Advisory
Commission
STAFF: Lisa Ellington,
Port & Harbor Administrative Secretary; Walt Wrede, City Manager (later)
APPROVAL OF AGENDA
Consensus to move New Business
items b and c in front of Pending Business since interested parties are in
attendance.
Vote.
No objection. Motion carried.
Some discussion of moving Pending
Business, Lease Policy review, to a work session and Pending Business c,
Request for Proposals, to a work session.
It was decided to leave as is.
PUBLIC COMMENTS REGARDING
ITEMS ON THE AGENDA – None
APPROVAL OF MINUTES – October 9,
2008 synopsis
VELSKO/HAWKINS MOTION TO APPROVE THE MINUTES OF OCTOBER 9, 2008 LEASE COMMITTEE
MEETING.
Vote. No Objection. Motion carried.
VISITORS – Tabor Ashment,
Jeanne Ashment See, Mike McCune, Kevin Hogan (later)
STAFF & COUNCIL
REPORTS – None
PUBLIC HEARING – None
NEW BUSINESS
b. Homer Enterprises(Sports
Shed) lease expires 4/30/09, proposal for new lease, no RFP
HAWKINS/ABBOUD MOTION TO BRING NEW BUSINESS ITEM B
TO THE FLOOR.
Vote. No Objection. Motion carried.
Jeanne See, co-owner of the Sports Shed spoke to the
Committee. She distributed copies of
their 2007 tax return which she and the other co-owner Tabor Ashment requested be added to their proposal for a new
lease. She explained that Homer
Enterprises LLC was set up as a real estate holding entity. Ms. See continued that their proposal
requests a new lease be entered into without going through the RFP process
because it seems threatening to put their investment and career into a bid position. They have not been a negligent tenant.
City Manager Wrede explained that the policy gives
others an opportunity to bid on public land when a lease expires to see if
there is any other interest out there.
Recently the option for the current tenant to match any new bids was added
to the RFP. City Manager Wrede added
that the Lease Committee could recommend to City Council that a new lease be
written without the RFP. A Resolution
would need to be written and approved stating reasons why.
Discussion ensued with the Lessees regarding the
apartments on the premises; need for a CUP to allow the apartments; and the
Lessee’s desire for a long term lease so financing could be secured to improve
the pilings, the appearance of the building, and the energy efficiency of the
freezers and structures. Also discussed
was the Lessee’s understanding from City staff that a six month notification of
renewal was the policy, not twelve months as stated in the current policies.
HARVILLE/HAWKINS MOTION TO SEND THE PROPERTY
CURRENTLY LEASED TO HOMER ENTERRISES OUT TO RFP WITH THE OPTION THAT THE
CURRENT TENANT WOULD HAVE THE OPPORTUNITY TO MATCH ANY NEW BIDS.
Vote. No Objection. Motion carried.
Committee discussion continued encouraging capital
investment in properties by awarding long term leases in order to recoup that
investment and the need for a short turn around for the RFP process and a short
turn around for negotiations of new leases.
ALDERFER/VELSKO MOTION THAT THE RFP PROCESS FOR THE
PROPERTY CURRENTLY LEASED TO HOMER ENTERPRISES LLC BE COMPLETE BEFORE THE EXPIRATION OF THE
LEASE ON 4/30/09.
Vote. No Objection. Motion carried
Discussion continued regarding putting out an RFP
with current uses that are not allowed.
Lessee assured the Committee that they are willing to do whatever is
needed, although the inconsistencies with the City Code for overnight occupancy
on the Spit are troubling to them since there are RV parks, campgrounds and
hotels out there. Committee thanked Ms.
See and Mr. Ashment for their business and attending
the meeting. Ms. See and Mr. Ashment thanked the committee.
c.
Fish Factory lease – request for re-platting Lots 12A and 12B
Mike McCune part owner of the Fish Factory spoke
regarding his desire to replat Lot 12A which he
currently leases to include a 17’ X 225’ (3825 sq. ft.) strip of Lot 12B which
he currently leases on a short term basis for storage at ½ the valued
price. The strip is located behind the
City’s fish grinder building. Discussion
with Mr. McCune continued regarding the best use of Lot 12B in the future; its
current use for staging for all Fish Dock Road users; outfall line easement
location on that strip of land and future access by the City if replat is granted; tentative agreement by Fish Factory to
pay for the survey for the proposed replat; earlier
request for this replat several years ago; suggestion
of just adding the strip of 12B to their existing lease, which was acceptable
to Mr. McCune instead of replatting but he stated
that it would just delay the decision and he would like to clean up any issues;
disagreement on the items stored being personal and not fish processing
related.
VELSKO/ALDERFER MOTION TO GRANT THE REPLAT OF LOTS
12A AND 12B PROVIDED THAT FISH FACTORY PAY FOR THE SURVEY
Discussion continued regarding: if 12B would ever be RFP’d
with a response that if replatted it would just be RFP’d for that size; looking to the future, Lot 12A would
be more valuable with the replat; Port & Harbor
Advisory Commission’s input for the long range plan for 12B; willingness to replat other lots on Fish Dock Road if this replat is granted with a discussion of the differences in
lot lines in the area and Lot 12A with the addition of the strip of land would
be close to the same size as 12C; the effect of the replat
on the anticipated CUP for a caretaker dwelling.
Vote. Motion Failed.
ALDERFER/VELSKO MOTION TO RECOMMEND
THAT THE REQUEST FOR THE REPLAT BE SENT BACK TO THE PORT AND HARBOR ADVISORY COMMISSION FOR COMMENT AND POTENTIAL EFFECT ON LOT 12B.
Vote. No Objection. Motion Passed.
ALDERFER/HARVILLE MOTION TO RECOMMEND THAT THE PORT AND HARBOR ADVISORY
COMMISSION CREATE A SOLUTION BY EITHER GRANTING THE REPLAT OR BY ADDING THE
STRIP OF 12B TO THE FISH FACTORY’S EXISITING LEASE PROVIDED THAT THERE IS NO
NEGATIVE IMPACT ON THE USE OF LOT 12B.
Discussion continued about the available space on
the west side of 12A with a response that the east side is preferred and the
west side would be more valuable as is; and the desire for the Port &
Harbor Advisory Commission to recommend a long term use for 12B.
Vote. No Objection. Motion Passed.
It was recommended that Mike McCune attend the next
Port & Harbor Advisory Commission on January 28, 2009. Mr. McCune stated that a CUP application
to the Planning Department for a caretaker residence is in process. Concerns were discussed regarding the
allowable land uses of the lot and the original drawing in the lease which
denotes 16 parking spaces where caretaker trailers are currently located. Discussion continued regarding the Planning Department
will be addressing the housing and parking issue but the CUP may be easier if
the replat were granted and there is more space. Mr. McCune stated that he would prefer the
trailers to stay if they are allowed. Committee
thanked Mr. McCune for his business and coming before the committee. Mr. McCune thanked the committee.
PENDING BUSINESS
a. Lease Committee Meeting Dates
ALDERFER/HAWKINS MOTION TO ADOPT
THE LEASE COMMITTEE QUARTERLY MEETING DATES OF APRIL 9, JULY 9 AND OCTOBER
8, 2009.
Vote.
No objection. Motion carried.
b. Review of Lease Policies
Chair Erickson suggested moving
this item to a work session with the goal of tightening up the procedures;
making the language more understandable and fair to both sides and making the
Lease Committee’s responsibilities clearer.
She continued that from the Economic Development Commission’s view the
policies and code make it difficult to do business with the City because the
conditions required are too restrictive.
It was decided that February 12, 2009 at 3pm would be the next meeting after
checking with Deputy City Clerk Krause for availability of the Council Chambers.
It was also decided to make it a special meeting instead of a work session so
other business could be conducted. Finally, the committee discussed soliciting
input from the Port & Harbor Advisory Commission as well as the Economic
Development Commission on the policies and inviting members to attend the
February 12 meeting.
c. Request for Proposals for available lots in 2009
Port Director Hawkins reported that
the Port & Harbor Advisory Commission will be making their recommendations
at their January 28, 2009 meeting. He continued that there is some interest in Lot 21 located on the east side of
Ramp 6.
VELSKO/ABBOUD MOTION TO GET INPUT FROM PORT AND HARBOR ADVISORY COMMISSION AND REVIEW THEIR RECOMMENDATIONS AT
OUR SPECIAL MEETING ON FEBRUARY 12, 2009.
Vote.
No objection. Motion carried.
Mr. Velsko
reported that the Port & Harbor Advisory Commission is concerned about overslope development which would include Lot 21. Mr. Alderfer
brought up asking Port & Harbor Advisory Commission about the promotion of the
property available, for example Lot 11 on Freight Dock Road which was recommended by Port
& Harbor Advisory Commission to be held for container ship or barge
operation, etc., Mr. Alderfer asked what steps have
been taken to see that happen. Port Director Hawkins explained that besides
advertising, the Port has a relationship with shippers,
they all know we are here. Port Director
Hawkins added that there is some interest in Lots 11 and 12, when RFPs are
generated he will make sure the interested parties are aware.
d. Website that shows available lease property
Chair Erickson suggested a place on
the City’s website with a listing of available lots, what kind of businesses we
are looking for, and the steps to go through.
Port Director Hawkins agreed to look into putting it on the Port’s
website as well as contacting the Chamber of Commerce. Mr. Velsko
suggested besides lands available, currently leased lands should also be
listed.
NEW BUSINESS –
a. Harbor Enterprises lease negotiations
update
Port
Director Hawkins reported that a letter of intent to renew was received today
from Harbor Enterprises and they are addressing the compliance issues.
d. Kachemak Port Services lease expired 4/30/07
Port
Director Hawkins reported that they have been running on short term leases for
several years and they continue to pay the monthly rent. He has not been in contact with them to know
their intentions.
VELSKO/ABBOUND
MOTION TO RECOMMEND THE PROPERTY CURRENTLY OCCUPIED BY KACHEMAK PORT SERVICES BE PUT OUT TO RFP WITH
THE SAME STIPULATIONS OF THE CURRENT LESSEE BE ABLE TO MATCH ANY OTHER BIDS RECEIVED
After discussion, Motion withdrawn by Mr. Velsko. No vote.
It was
decided to assign staff to contact Kachemak Port Services to determine their
intent and bring the results back to the Lease Committee by the 4/8/09 meeting.
e. Airport and in town lease parcels
Chair Erickson asked that this be
put on the agenda because of her concern that everyone is being treated fairly
in the negotiation process for the airport leases. City Manager Wrede stated that the Lease
Committee hasn’t been involved with the in-town leases because on the Spit it
is land that is being leased and the in-town leases are for buildings. Some
buildings like the school are leased to the college and the Boys and Girls Club
with the interest of the community in mind.
All are approved by the City Council.
He continued that the Lease Committee could be involved in what goes out
but the committee shouldn’t be negotiating the leases.
Motion
made by Mr. Velsko FOR THE LEASE COMMITTEE TO PARTICIPATE
IN ALL CITY LEASES SO THE COMMITTEE WOULD BE
PART OF THE PROCESS.
Motion Failed
for lack of a second.
Informational
Materials
a. Kenai River Seafoods
proposal withdrawal.
Mr. Alderfer stated that with the tightening up of the RFP
language, a clause should be added to “perform or leave”. The default should be take action or lose it,
not the other way around.
COMMENTS OF THE AUDIENCE –
Kevin Hogan stated that the Economic
Development Commission is also working on Lease policy changes,
he suggests going slowly and deliberately and finally coming up with a set of
policies that actually work. He stated
that previous revisions have been band aids, just “stomping out brush fires”
kind of deals. He was anxious to see the
process move down the road but upon reflection he asks that the process be slow and deliberate, well thought out and crafted. Mr. Hogan hopes long term action wasn’t taken
on the items in New Business and if there was, than a revision clause was
included in case the policies changed. Mr.
Hogan continued regarding the Fish Factory proposal. He was taken aback because when his lease proposal
was worked on he asked that those lot lines be returned to the original before
the replat so there would be a full fire easement on Ice Dock Road.
They were told they were not going to do that so they poured their foundation
based on what the City told them, now that changes and he is disappointed. He would have rather moved his lot line back
and had a full 60’ right of way. Mr.
Hogan concluded that the Fish Factory has been a good citizen and should be
accommodated but probably keep all this to a short term and have a more
thorough review of our policies and procedures.
He was sorry he was a little late.
COMMENTS OF THE STAFF - None
COMMENTS OF THE
COUNCILMEMBER (If one is assigned) – N/A
COMMENTS OF THE COMMITTEE –
Mr. Alderfer
returned his confidential information from the Homer Enterprises proposal.
Port Director Hawkins thanked
everyone for serving.
COMMENTS OF THE CHAIR –
Chair Erickson thanked everyone,
she thought progress was being made.
ADJOURN
Chair
Erickson stated the next meeting will be a special meeting on February 12, 2009 at 3pm.
There being no further business to come before the Committee, Chair Erickson
adjourned the meeting at 5:15 p.m.
Lisa
Ellington, Port and Harbor Administrative Secretary
Approved: _____________________