Memorandum No. 07-78

To:                   Mayor & Council

From:   Economic Development Commission
Through:          
Walt Wrede, City Manager

Date:    April 30, 2007 

Re:                   Recommendations for Revisions to Lease Policy Manual

At its February 12 meeting, the Homer City Council requested that the Economic Development Commission have a chance to consider proposed changes to the City of Homer Property Management Policy and Procedures (Lease Policy) manual before any revisions are adopted. The EDC appreciates this opportunity to comment and make recommendations. At its April 10 meeting, the Economic Development Commission discussed the proposed amendments to the attached to City of Homer Resolution 07-25, and recommended the following:

 

Substitute this language for the proposed revision to 13.K:

Developers/Investors –The City will consider proposals from developers who wish to construct buildings and/or other improvements for the purpose of sub-leasing, if all tenants of the building or land are engaged in activities that are permitted by applicable zoning codes in effect at the time.

 

(The previously proposed language for this section seemed designed to discourage subleasing. The EDC feels that the City should be more open to subleasing proposals, given their potential for greater economic return.)

 

Substitute this language for the addition proposed to 3.2E:

The City Council may restrict specific City properties to certain uses or classes of use. The City Council has, in the past, restricted the use of lots immediately adjacent to the Fish Dock, to activities directly related to commercial fishing. Similarly, it has restricted uses on lots adjacent to the Deep Water Dock, to marine industrial uses, with an emphasis on shipping and cargo handling. The purpose for these restrictions is to encourage growth in targeted economic sectors, to ensure that the City receives the maximum benefits from the large investment the public has made in these docks, and to provide land for businesses that require close proximity to the docks in order to operate efficiently and profitably. The City at its discretion, may consider proposals in which a portion of the leased property is proposed for a use other than the uses allowed in the restricted area, provided such uses are compatible with the area, are consistent with the zoning code, and approved in advance by the City.

 

(The EDC feels that the previously proposed revision is too restrictive; for example, by setting a 25% limit on “other uses.”)

Substitute this language for 2.2(A):

The City Manager shall establish a lease Committee that will consist at a minimum, of the Manager, the Finance Director, the City Planner, the Port and Harbor Director and one commissioner from the EDC and one commissioner from any of the other commissions.

 

(The EDC supports the recommendation to add the City Planner and Port and Harbor Director to the Lease Committee, and feels that including two Commissioners would also benefit the Lease Committee by bringing in perspectives from outside City government.)

 

 

RECOMMENDATION: Approve the amendments to the Lease Policy manual recommended above.