ITEM TITLE:
#26-09 - Authorizing an Amendment to Resolution #25-58 to Change the Gravel Lease Term for Knik Construction Co. to Twenty Years on a 21.3 Acre Portion of Parcel E 1, Tract A, ASLS 79-116, Plat 2002-12 and Tract C-1, ASLS 79-116, Plat 2002-13
SUBMITTED BY: Bruce Wall, Senior Planner
FISCAL NOTES:
Expenditure Required: N/A
Unencumbered Balance: N/A
Funding Source: N/A
RECOMMENDATION:
Approve Resolution #26-09, authorizing a change to the gravel lease term for Knik Construction Co. to twenty years on a 21.3 Acre Portion of Parcel E 1, Tract A, ASLS 79-116, Plat 2002-12 and Tract C-1, ASLS 79-116, Plat 2002-13, If Council Desires to Modify the Gravel Lease Term.
SUMMARY STATEMENT:
Resolution #25-58 authorized a gravel extraction lease with Knik Construction Co. Inc. They had requested a 20-year gravel lease term with their original application.
During discussion of Resolution #25-58, City Council was told that the lease term could be changed by the city’s administrative staff. However, section 2 of that resolution states that the term of the lease will be five years and the City Attorney has advised that any change to the gravel lease term requires a resolution of City Council. Knik Construction is requesting that the City Council modify the term of the lease to twenty years.
Community Development staff recommended the five-year lease because the City’s 2005 Property Management Policy and Procedures manual states, “Leases of City land should not be for greater than five years, unless it is in the public interest for the City to enter into a longer-term lease.” Also, VMC 4.08.130 states, “The term of a lease shall depend upon the desirability of the proposed use, the amount of investment in improvements proposed and made, and the nature of the improvement proposed with respect to the time required to amortize the proposed investment.”
The Community Development staff recommends that the City Council approve the amendment only after taking into consideration VMC 4.08.130 and determining that it is in the public interest for the city to enter into a 20-year gravel lease with Knik Construction Co. Inc.
Once Council has decided on this resolution, staff will execute the gravel lease with Knik Construction for the approved lease term.