CITY OF HOMER Shadle

HOMER, ALASKA

RESOLUTION 06-10

A RESOLUTION OF THE CITY COUNCIL SUPPORTING AND FORWARDING THE PORT AND HARBOR COMMISSION'S RECOMMENDATIONS TO THE LEASE COMMITTEE.

WHEREAS,

Nine parcels of City owned land located on the Homer Spit were offered for lease by sealed bid in January, 2005; and

WHEREAS, A single bid was received on one parcel; and

WHEREAS, A lease agreement has not yet been reached on that parcel; and

WHEREAS, The Port and Harbor Advisory Commission (The Commission) has discussed City of Homer Lease Policy as an agenda item during the last several meetings; and

WHEREAS, Public testimony was received from current lease holders, potential lease holders, key government officials and other interested individuals; and

WHEREAS, Input has also been solicited from financial institutions, other Alaska Municipalities and other leasing agencies; and

WHEREAS, The goal was to provide input to the Homer City Council regarding possible changes to lease policy or procedure that might facilitate long term leasing of City-owned Homer Spit land; and

WHEREAS, The Commission provided a report to the City Council in the December 12, 2005 packet via Memorandum 05-187; and

WHEREAS, The Commission discussed the following contained within the Property Management Policy and Procedures Manual:

1. Use restrictions on individual parcels Chapter 3, page 5

2. Amortization (liquidation of debt by installment payment) Chapter 11.2.A, page 14

3. Length of leases/renewals Chapter 11, pages 14 and 15

4. Rate adjustments Chapter 12, page 16

5. Sub-lease restriction Chapter 13, page 17

6. Ownership of improvements Chapter 18, page 24; and

Additional suggestions included:

7. More extensive advertising

8. Developing overslope design parameters

9. Establishing a lease schedule Chapter 3, page 5, Chapter 4, page 6

Page Two

Resolution 06-10

City of Homer

WHEREAS, It was the consensus of the Commission that Lease Policy as written provided adequate consideration of items 1 though 6 above and did not represent a barrier to long term leasing of City owned Homer Spit land; and .

WHEREAS, The Commission strongly recommended more extensive advertising associated with future Requests for Proposals (RFPs); and

WHEREAS, The Commission also recognized the importance of developing overslope design parameters with the goal of moving future commercial development off of the uplands and onto overslope boardwalk where appropriate; and

WHEREAS, The unanimously passed a motion with specific recommendations to the Homer City Council during their Meeting of November 16, 2005, that read "Moved to recommend to the City Council that they renew RFP's for Port and Harbor lots that have not received bids three times per year every 90 days.

NOW, THEREFORE, BE IT RESOLVED that the City Council hereby supports and forwards the Port and Harbor Commission's recommendations to the Lease Committee as follows:

1. Advertise RFP's for lease of Homer Spit lands locally, regionally and in the Pacific Northwest.

2. Facilitate the development of overslope design parameters.

3. Develop an RFP lease schedule of more frequent duration, i.e. every 90 days

PASSED AND ADOPTED by the Homer City Council this 9th day of January, 2006.

CITY OF HOMER

________________________

JAMES C. HORNADAY, MAYOR

ATTEST:

_________________________________________

MARY L. CALHOUN, CMC, CITY CLERK

Fiscal Note: Some increase to the advertising costs.