ITEM TITLE:
Approval of a Recommendation to City Council to Authorize a Lease Amendment with Valdez Motor Sports Club, Inc. for a 52.3-Acre Portion of USS 439 (pipeyard)
SUBMITTED BY: Nicole LeRoy, Planning Technician
FISCAL NOTES:
Expenditure Required: N/A
Unencumbered Balance: N/A
Funding Source: N/A
RECOMMENDATION:
Approve a recommendation to City Council to authorize a lease amendment with the Valdez Motor Sports Club, Inc. for a 52.3-acre portion of USS 439 (pipeyard.)
SUMMARY STATEMENT:
On October 11, 2021, Planning Department staff received an application from the
Valdez Motor Sports Club (VMSC) to amend their existing lease of USS 439, Valdez Townsite. Please see the attached application and narrative.
VMSC has leased a 10-acre portion of USS 439 for winter motor sports activities from 2000.-2018 when their original lease expired. They were approved for a new lease of the area from 2018-2023. However, since this new lease was approved, the Valdez Motor Sports Club’s organizational needs have changed. As described in the attached application narrative, VMSC is seeking an amendment to lease to include additional area, uses, and a term extension.
In addition to staging for motor sports activities, Valdez Motor Sports Club has requested to amend their existing lease of the pipeyard to include the following:
• Continuous staging area for the search and rescue trailer with year-round power and access.
• Storage for club event equipment conex and timing shack trailer.
• Permission to obtain or construct a club house for future meetings, training, and events, pending funding availability.
• Permission to obtain or construct covered storage to protect club trailers and equipment from elements, pending funding availability.
• Permission to erect permanent signage visible from the Richardson highway advertising club activities, opportunities, and events.
• Permission to place viewing stands or bleachers temporary or permanent for spectator use.
• Permission to place restrooms, temporary or permanent.
• Permission to place signage for proper facility access and use.
• Permission to build a snow cross track for the winter.
• Continued staging and start/finish area for cross country races (Mayor’s Cup).
• Permission to build and maintain various motorsports track’s MX, SxS, mud pit, circle tracks or other features that benefit the club, community, and motorsports. These efforts will be volunteer driven and reflective of the interest and desire of the community.
• Permission to bring in temporary stands or food trucks during events.
The proposed developments described would be subject to federal, state, or local permitting as required.
VMSC is also requesting to increase their lease area from a 10-acre portion, to a 52.3-acre portion of USS 439 (see attached area map.)
Resulting from discussions with the City Attorney, City Manager, and the City’s insurance representatives, VMSC and staff have also agreed to propose the removal of the year-round general liability insurance requirement from their lease. VMSC has stated that it has been cost prohibitive for them to maintain such insurance, and have been unable to obtain coverage to meet the terms described in their existing lease. The City Attorney, and City Manager have endorsed presenting this change to the Commissions and Council. Event insurance would still be required for any VMSC events under this change.
VMSC has also requested an extension to their lease term. Their existing lease is set to expire in July 2023. The amendment would add five additional years, bringing the expiration to 2028.
VMSC has requested to continue to pay less than fair market value for use of the property at no annual fee. Per Valdez Municipal Code Section 4.08.030 - Fair rental value to be used for leases - Exceptions, “the city may lease city lands for less than the fair rental value to any state or federal agency or political subdivision, a public utility, a nonprofit organization, or to a new industry on terms advantageous to the public welfare of the city if the council, by motion passed by not less than six councilmen, determines the lease to be in the best interest of the public.” The approval of this lease amendment requires an affirmative vote of not less than six City Council members due to the request for continued discounted rent.
The Planning and Zoning Commission will vote on a recommendation for this lease amendment at their regularly scheduled November 10, 2021 meeting. Typically, the Ports and Harbors Commission would review prior to Planning and Zoning. However, due to the timing of cancellation of their last regularly scheduled meeting, Ports and Harbor Commission is hearing this application second.
Following a vote from the Ports and Harbors Commission, the Valdez Motor Sports Club’s lease amendment application will go before to City Council for a vote on approval. If this lease amendment is approved by City Council, Planning Department staff will work with the City Attorney and Valdez Motor Sports Club to execute the amendment with the described changes for a term of seven years, expiring 2028.