ITEM TITLE:
Approval of Resolution 25-51 Authorizing a Lease with Central Environmental, Inc. for an Approximately .85-acre Portion of USS 439 (Pipeyard) 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 Resolution #25-51 authorizing a lease with Central Environmental, Inc. for an approximately .85-acre portion of USS 439 (Pipeyard) owned by the City of Valdez.
SUMMARY STATEMENT:
Community Development Department staff received a lease application from Central Environmental, Inc. for use of a 2-acre portion of USS 439 (Pipeyard) owned by the City of Valdez. Central Environmental received a temporary land use permit for this use starting July 7th for 6 months.
Central Environmental, Inc. requested use of the property for temporary staging of scrap metal awaiting shipment from the Port of Valdez (see attached lease application and narrative). The 2025 planned scrap metal barge was delayed, and they now need to stage material for longer than six months. The new term requested is two years, beginning at the expiration of their temporary land use permit in January 2026.
Fair rental value for leases is defined as 10% 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. Central Environmental, Inc. completed a soil testing report prior to the staging of scrap metal which will be accepted as an alternative to a phase I environmental assessment. The property is zoned light industrial which allows for freight staging operations.
On October 22, 2025, the Planning and Zoning Commission voted to approve a recommendation to City Council to approve this lease.
Pending Council approval of this lease, staff will work with the City Attorney and Central Environmental to execute a new lease.