CITY OF HOMER

HOMER, ALASKA

Ladd/Kranich

RESOLUTION 02-24

 

A RESOLUTION OF THE CITY COUNCIL OF HOMER, ALASKA, REVISING THE PROPERTY MANAGEMENT POLICY AND PROCEDURES MANUAL, SECTION 6.2, LEASE RENEWALS AND NON RENEWALS PROCEDURE.

 

WHEREAS, the City of Homer owns and manages numerous parcels of property on the Spit and elsewhere with the City; and

 

WHEREAS, it is the practice of the City of Homer to manage property in accordance with procedures identified by Policy, Resolution updates, and Homer City Code 18.08 as noted in the Property Management Policy and Procedures Manual, February 2002; and

 

WHEREAS, terms of lease agreements are recommended by the Leasing Negotiating Committee and determination of rent shall take into consideration factors identified in the Property Management Policy and Procedures Manual; and

 

WHEREAS, the City Council is responsible for reviewing current leases and tasked to identify a list of renewable and/or non renewable leases.

 

NOW, THEREFORE, BE IT RESOLVED by the Homer City Council that Chapter 6, Lease Renewals and Non-renewals, Section 6.2, Procedure, of the Property Management Policy and Procedures Manual is hereby revised as follows:

 

6.2              PROCEDURE

 

 

a.            From time to time the City Council shall approve a list of current leases identifying those City Council finds is in the City’s best interest to continue to lease to a current lessee; those leases will be identified on this list as renewable. The lessee of any property so identified on the list shall be entitled to negotiate for a lease renewal, without going through the competitive bidding process. Such a lease renewal is however, subject to other provisions of the City Code and the Property Management Policies and Procedures, including approval by the City Council.  (Reso. 98-15.)

 

a.            The City Council shall annually approve a list of current leases identifying those the City Council determines are in the best interests of the City to continue leasing to current lessees.  These leases will be identified on the list as renewable.  Within one year of a lease coming to term, inclusive of

 

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timelines identified in lease term options, the City Council will determine if it is in the best interest of the City to continue leasing to the current lessee, and to offer lease renewal.  If the City Council determines that it is in the best interest of the City to renew a lease, the lease will be placed on the renewable lease list, and the lessee will be advised at that time regarding the renewable or non-renewable status of the lease.

 

The lessee of any property so identified on the list shall be entitled to negotiate for a lease renewal, without going through the competitive bidding process.  Such a lease renewal is, however, subject to other provisions of the city code and the property management policies and procedures, including approval by the City Council. (Reso. 98-15.)

 

Renewable Leases

 

b.            The City Council shall elect to not require a competitive bid process if the Council finds that the current lessee has demonstrated it is in the best interest of the City to continue leasing to the current lessee. Findings shall be based on, but not limited to the following factors:

 

1. Lessee’s capital investment in the property and commitment to future capital investment;

                        2.            Lessee’s financial capabilities/credit history/prior lease history;

                        3.            Number of person’s employed at the property;

                        4.            Tax revenue to the City from the property;

                        5.            Other economic, social, or other benefit to the local economy;

                        6.            Intended use of the property, as stated in the lease, was met. (Reso. 98-15.)

b. 1.            The current lessee is responsible for submitting an application and proposal demonstrating the above listed factors, outlining why it is in the best interest of the City to continue with the current lessee. (Reso. 98-15.)

 

b.2.            The City will review the proposal, but is under no obligation to agree to continue leasing to the current lessee. (Reso. 98-15.)

 

Nonrenewable Leases

 

c.            When a lease expires, and does not have nay renewal option clauses, and is not identified on the list as renewable, the City will request proposals to lease the property. (Reso. 98-15.)

 

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c.1.            Criteria used for scoring the proposals will include, but are not limited to the following: (Reso. 98-15.)

 

1. Capital investment/term; and,

2.            Rent rate/price per square foot; and,

 

 

                        3.            Financial capabilities/credit history/prior lease history; and,

                        4.            Number of employees; and,

                        5.            Other revenues generated in the local economy; and,

                        6.            Experience.

 

c.2.            A Selection Committee will be formed to score the proposals and recommend a proposal to the Homer City Council for approval. The Lease Committee, as defined in Chapter 2, will score lease property proposals and recommend proposals to the Homer City Council for approval. (Reso. 98-15.)

 

c.3.            The Homer City Council is responsible for final approval of the proposal and lease.  (Reso. 98-15.)

 

c.4.            If no proposals are received for a specific lot; the City will consider responsive proposals on first come first served basis. (Reso. 98-15.)

 

PASSED and ADOPTED by the Homer City Council this 26th day of March, 2002.

 

                                                                        CITY OF HOMER

 

 

______________________________

                                                                        JACK CUSHING, MAYOR

 

ATTEST:

 

 

 

___________________________________

MARY L. CALHOUN, CMC, CITY CLERK

 

 

Fiscal Note: NA