CITY OF HOMER

HOMER, ALASKA

City Manager

ORDINANCE 06-36

AN ORDINANCE OF THE HOMER CITY COUNCIL ACCEPTING CONVEYANCE OF LOT 1, BLOCK 8 AND LOT 2, BLOCK 7, FAIRVIEW SUBDIVISION, PLAT NO. 56-2936, HOMER RECORDING DISTRICT FROM THE KENAI PENINSULA BOROUGH AND EXTENDING THE TERM OF THE SOUTH PENINSULA HOSPITAL LEASE TO 99 YEARS.

WHEREAS, The proposed expansion of the South Peninsula Hospital is vitally important to the health and welfare of the citizens of Homer and the Southern Kenai Peninsula; and

WHEREAS, The City, working closely with the Kenai Peninsula Borough, attempted to help facilitate construction of the proposed hospital expansion by adopting Ordinance 05-51; and

WHEREAS, Ordinance 05-51 extended the term of the hospital lease by 36 years and resolved an outstanding permitting issue; and

WHEREAS, The City and the Borough have continued to discuss this matter in an effort to improve upon the agreement authorized in Ordinance 05-51; and

WHEREAS, The City and the Borough have agreed in principle that it would be mutually beneficial for the Borough to convey title to Lot 1, Block 8 and Lot 2, Block 7, Fairview Subdivision to the City. These lots, Tract A, and the portion of Bartlett Street to be vacated would be replatted into a new parcel to be called Tract A1 which would be owned solely by the City. In exchange, the City would extend the term of the South Peninsula Hospital Lease to 99 years and expand the lease to the boundaries of the new Tract A-1.

NOW, THEREFORE, THE CITY OF HOMER HEREBY ORDAINS:

Section 1. The City finds that the continued operation and expansion of the South Peninsula Hospital in Homer is of vital importance to the health and welfare of the citizens of Homer and the Southern Kenai Peninsula, and further, that the public interest in the continued operation and expansion of the hospital is sufficient to justify the extension of the term of the Lease of the South Peninsula Hospital and the other provisions approved in this Ordinance.

Section 2. This lease extension is hereby exempt from Homer City Code Chapter 18.08 and other provisions of the Homer City Code governing the making and amendment of leaseholds in City property.

Section 3. The Third Amendment to the Lease Agreement Between City of Homer and Kenai Peninsula Borough, in the form attached to this ordinance as Exhibit A, is hereby approved.

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Ordinance 06-36

City of Homer

Section 4. The City hereby accepts the conveyance of Lot 1, Block 8 (KPB Tax Parcel Number 175-052-0100) and Lot 2, Block 7, (KPB Tax Parcel Number 175-053-0100) Fairview Subdivision, Plat No. 56-2936, Homer Recording District from the Kenai Peninsula Borough.

Section 5. This is a special and non code Ordinance.

ENACTED BY THE CITY COUNCIL OF THE CITY OF HOMER, ALASKA, this ______ day of __________, 2006.

CITY OF HOMER

JAMES C. HORNADAY, MAYOR

ATTEST:

MARY L. CALHOUN, CMC, CITY CLERK

AYES:

NAYES:

ABSTAIN:

ABSENT:

First Reading: May 22, 2006

Public Hearing:

Second Reading:

Effective Date:

Reviewed and approved as to form:

Walt Wrede Gordon J. Tans

City Manager City Attorney

Fiscal Note: No direct fiscal impact

EXHIBIT A

FORM OF LEASE AMENDMENT

THIRD AMENDMENT TO LEASE AGREEMENT

BETWEEN

CITY OF HOMER AND KENAI PENINSULA BOROUGH

THIS THIRD AMENDMENT TO LEASE AGREEMENT ( “Third Amendment”) is made and entered into effective as of this ____ day of ______, 2006, between the CITY OF HOMER, a municipal corporation, 491 East Pioneer Avenue, Homer, Alaska 99603, (“LESSOR”), and KENAI PENINSULA BOROUGH, a municipal corporation, 144 North Binkley St., Soldotna, Alaska, 99669, (“LESSEE”), and affects that lease of the South Peninsula Hospital entered into between the parties on November 10, 1969, recorded beginning at Book 56, Page 61, Homer Recording District; as amended in 1999 by an instrument entitled Amendment to Lease Between City of Homer and Kenai Peninsula Borough, recorded beginning at Book 289, Page 305, Homer Recording District and by an instrument entitled Second Amendment to Lease Agreement Between City of Homer and Kenai Peninsula Borough, recorded as serial 2005-005676-0, Homer Recording District (collectively referred to as the “Lease”).

This instrument affects the following property located in the City of Homer, Homer Recording District, State of Alaska initially referred to as:

Tract A, South Peninsula Hospital Subdivision, filed as Plat No. 98-41,

and hereinafter referred to as:

Tract A-1, South Peninsula Hospital Subdivision 2005 Addition, filed as Plat No. 2006-___.

AGREEMENT

LESSOR AND LESSEE agree as follows:

1. Extension of Term:

The term of the Lease as previously amended is further extended for an additional 45 years, to end on June 30, 2105.

2. Amended Legal Description:

The following legal description of the leased property is hereby deleted:

Tract A, South Peninsula Hospital Subdivision, filed as Plat No. 98-41.

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Exhibit A Ordinance 06-36

SPH Lease Third Amendment

The following legal description is hereby substituted as the description of the leased premises:

Tract A-1, South Peninsula Hospital Subdivision 2005 Addition, filed as Plat No. 2006-___.

3. Lease Remains in Effect:

Every other provision of the Lease shall remain in full force and effect.

IN WITNESS WHEREOF, the parties hereto have caused this Third Amendment to be duly executed as of the day and year first above written.

LESSOR:

CITY OF HOMER

By:

Walt Wrede, City Manager

LESSEE:

KENAI PENINSULA BOROUGH

By:

John Williams, Mayor

ACKNOWLEDGEMENTS

STATE OF ALASKA )

) ss.

THIRD JUDICIAL DISTRICT )

The forgoing instrument was acknowledged before me on _________, 2006, by Walt Wrede, City Manager of the City of Homer, on behalf of the City of Homer

__________________________________

Notary in and for the State of Alaska

Term Expires: _________________

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