City of Homer

Port / Harbor                                                Telephone        (907) 235-3160

4350 Homer Spit Road                        Fax                  (907) 235-3152

Homer, Alaska 99603-8005                E-mail             port@ci.homer.ak.us

                                                            Web Site          http://port.ci.homer.ak.us

MEMORANDUM 08-12

 

TO:                  MAYOR HORNADAY AND HOMER CITY COUNCIL

           

FROM:            LEASE COMMITTEE

 

DATE:                        JANUARY 22, 2008

 

SUBJ:             PROPOSAL TO LEASE TRACT 1B (FISHING HOLE SUBDIVISION NO.2)                           RECEIVED FROM BOB’S TROPHY CHARTERS AND TRACT 1C RECEIVED                               FROM SPORTSMAN’S SUPPLY

 

BACKGROUND:

 

            The lease for Bob’s Trophy Charters (Tract 1B) expired on August 30, 2007.  The lease for Sportsman’s Supply (Tract 1C) expires on February 28, 2008.  All options for renewal have been exercised.  Both parties wish to enter into new leases and have made application to do so.

 

            The Lease Committee met at its regular meeting on August 22, 2007 and made a recommendation to the Homer City Council to authorize the City Manager to offer these parcels for competitive bid through a qualified RFP process (Memorandum 07-143).  Homer City Council passed and adopted this action through Resolution 07-91 on September 10, 2007.

 

            City of Homer solicited proposals from the public through the attached RFP.  City of Homer received only one proposal on each parcel from the existing lease holder. 

 

            The Lease Committee met on January 21, 2008 at its regular meeting to evaluate these proposals.  The following motions were made:

            DEAN/HARVILLE - THE LEASE COMMITTEE RECOMMENDS THAT THE HOMER CITY COUNCIL APPROVE THE PROPOSAL SUBMITTED BY BOB’S TROPHY CHARTERS FOR A LONG TERM LEASE OF TRACT 1B AND AUTHORIZES THE CITY MANAGER TO ENTER INTO LEASE NEGOTIATIONS.  THE LEASE COMMITTEE FURTHER RECOMMENDS THAT THE TERM OF THE LEASE IS NOT TO EXCEED TEN YEARS AND THAT THE LEASE RATE IS NO LESS THAN FAIR MARKET RENT AS EXTABLISHED BY APPRAISAL.

            Vote:  Yes – Harville, McKibben, Alderfer, Dean, Kilcher

            Motion Carried.

 

 

Memo to Mayor Hornaday and the Homer City Council

January 22, 2008

Page 2

 

            DEAN/MCKIBBEN - THE LEASE COMMITTEE RECOMMENDS THAT THE HOMER CITY COUNCIL APPROVE THE PROPOSAL SUBMITTED BY SPORTSMAN’S SUPPLY FOR A LONG TERM LEASE OF TRACT 1C AND AUTHORIZES THE CITY MANAGER TO ENTER INTO LEASE NEGOTIATIONS.  THE LEASE COMMITTEE FURTHER RECOMMENDS THAT THE TERM OF THE LEASE IS NOT TO EXCEED TEN YEARS AND THAT THE LEASE RATE IS NO LESS THAN FAIR MARKET RENT AS EXTABLISHED BY APPRAISAL.

            Vote:  Yes – Harville, McKibben, Alderfer, Dean, Kilcher

            Motion Carried.

           

RECOMMENDATION:

 

            Authorize the City Manager to enter into lease negotiations with Bob’s Trophy Charters for Tract 1B and Sportsman’s Supply for Tract 1C with terms no greater than ten years and the lease rate no less than fair market rent as established by appraisal.