City of Homer

Memorandum No. _03-199__________

Date: November 19, 2003

To: Mayor and City Council

Thru: Walt Wrede, City Manager

From: Dean W. Baugh, Finance Director

RE: Harbor Enterprises, Inc. (Petro Marine)

Harbor Enterprises, Inc. (Petro Marine) currently has a 5 year lease with three 5 year renewal options, the lease expires on November 30, 2003, they have requested to exercise the first of their five year renewals. They have contracted to have the required appraisal accomplished in Early January with any adjustments back to November 30, 2003

RECOMMENDATION:

Homer City Council approval of Harbor Enterprises, Inc. request to exercise the first of their five year renewals.