Resolution 16-086 Global Sustainable Fisheries of Alaska Lease on Lots 9-A and 10-A

CITY OF HOMER

HOMER, ALASKA

                                                                                                                               City Manager

RESOLUTION 16-086

A RESOLUTION OF THE HOMER CITY COUNCIL AWARDING TO GLOBAL SUSTAINABLE FISHERIES OF ALASKA A 20-YEAR LEASE WITH TWO, FIVE-YEAR OPTIONS FOR LOT 9-A AND LOT 10-A, HOMER SPIT REPLAT 2006, WITH A BASE RENT OF $36,133.00 PER YEAR, AND AUTHORIZING THE CITY MANAGER TO MOVE FORWARD WITH LEASE NEGOTIATIONS AND EXECUTE THE APPROPRIATE DOCUMENTS.

               WHEREAS, Global Sustainable Seafoods of Alaska (GSFA) has submitted a lease application to the City of Homer for two lots on the corner of Fish Dock Road and Homer Spit Road: Lots 9-A and 10-A for the purpose of building a 10,780 square foot, single-story fish processing facility; and

WHEREAS, This area is zoned Marine Industrial and is listed as available in the City’s Land Allocation Plan for leasing; Lots 9-A and 10-A have been advertised in the past for Request for Proposals with no competitive bids received; and

WHEREAS, The Port and Harbor Advisory Commission considers this area ideal for fish processing businesses and encourages long-term leases for such purposes; and

WHEREAS, GSFA has applied for an Economic Adjustment Program grant in the amount of $1.6 million from the U.S. Department of Commerce and Economic Development Administration (EDA) to build this facility and use flash-freezing technology to export frozen fish to Japan and the Lower 48; and

WHEREAS, If successful, this program could revolutionize seafood production and would broaden Homer’s economic opportunities; and

WHEREAS, The grant requires a DRAFT lease agreement, so it’s imperative that the City is prepared to sign a lease when/if the grant is awarded; and

WHEREAS, Members of GSFA have met with the City Manager and Port Director to inspect the details of their proposal, and their lease application has been reviewed by City Lease Staff; and

               WHEREAS, Both Lease Staff and the Port and Harbor Advisory Commission reviewed this proposal and endorses issuing a new, 20 year-term lease with two 5-year options to renew, for Lots 9-A and 10-A for the purpose of building and operating a fish processing facility in Homer, Alaska on the Homer Spit.

               NOW, THEREFORE, BE IT RESOLVED that the Homer City Council hereby approves that the City of Homer enter into a new, 20 year-term lease with two 5-year options to renew, with Global Sustainable Fisheries of Alaska (GSFA) for Lot 9-A and Lot 10-A, HOMER SPIT REPLAT 2006,  with a base rent of $36,133.00 per year (to be confirmed with a current appraisal and adjusted to meet the appraised value if needed), and authorizing the City Manager to move forward with lease negotiations and execute the appropriate documents.

               BE IT FURTHER RESOLVED that this lease is contingent upon GSFA receiving the Economic Adjustment Program grant, which is scheduled to be awarded in September 2016 with the goal to have the fish processing facility operational for the 2017 fishing season.

               PASSED AND ADOPTED by the Homer City Council this 8th day of August, 2016.

CITY OF HOMER

                                                                                                         MARY E. WYTHE, MAYOR

ATTEST:

JO JOHNSON, MMC, CITY CLERK

Fiscal Note:  Base lease will be $36,133.00 annually.  Appraisal will be completed September 2016 to adjust rent rate, and is adjusted annually to keep pace with the Consumer Price Index.