ITEM TITLE:
Approval of a Recommendation to City Council for a Lease with Colville, Inc. for an Approximately 1.9-acre Portion of Parcel A ATS 564 (1940 Mineral Creek Loop Road) Owned by the City of Valdez
SUBMITTED BY: Nicole Chase, Senior Planner
FISCAL NOTES:
Expenditure Required: N/A
Unencumbered Balance: N/A
Funding Source: N/A
RECOMMENDATION:
Approve a recommendation to City Council for a lease with Colville, Inc. for an approximately 1.9-acre portion of Parcel A ATS 564 (1940 Mineral Creek Loop Road) owned by the City of Valdez
SUMMARY STATEMENT:
Community Development Department staff received a lease application from Colville, Inc. for use of an approximately 1.9-acre portion of Parcel A ATS 564 (1940 Mineral Creek Loop Road) owned by the City of Valdez.
Colville, Inc. has requested use of the property for maneuvering and turning around of long combination vehicles. Colville, Inc. leases the adjacent private property from Big State Logistics and states the “property is intended to provide easier turning radius and access for vehicles utilizing adjacent property” (see attached lease application and narrative). The lease term requested is seven years.
Fair rental value for leases is defined as ten percent of appraised value annually pursuant to VMC 4.08.010. If this lease is approved, an appraisal will be ordered at the cost of the lessee. Additionally, the City of Valdez 2005 Property Management Policies and Procedures document requires a phase I environmental assessment be completed for all new leases of light industrial zoned land at the cost of the lessee. The property is zoned light industrial which allows for the proposed use.
Staff recommends that the Planning and Zoning Commission approve a recommendation to City Council to approve this lease.
Pending Council approval of this lease, staff will work with the City Attorney and Colville Inc. to execute a lease agreement.