ITEM TITLE:
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Approval of a Recommendation to City Council to Authorize a Lease with Crowley Fuels, LLC for aN 8,400 Square Foot Portion of USS 495 Tidelands (South Fuel Dock)
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SUBMITTED BY: Nicole Chase, Planner
FISCAL NOTES:
Expenditure Required: N/A
Unencumbered Balance: N/A
Funding Source: N/A
RECOMMENDATION:
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Approve a recommendation to approve a lease with Crowley Fuels, LLC for an 8,400 square foot portion of USS 495 Tidelands (South Fuel Dock)
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SUMMARY STATEMENT:
The City of Valdez entered into a lease for an 8,400 square foot portion of USS 495 Tidelands, with Max and Betty Wells in 2001 for seventeen years, commencing on December 1, 2001 and ending the last day of November, 2018 with an additional six, five year options to renew. City Council approved an assignment of leasehold interest from the Estate of Betty J. Wells to Crowley Fuels LLC. The lease was renewed with approval of resolution #18-30 for an additional five-year term expiring November 30, 2023.
The lease has been in holdover with all terms and conditions continuing on a monthly basis since the expiration while the recommended new lease terms were negotiated between staff and Crowley.
Crowley Fuels, LLC has applied to continue to lease this property for use of fuel dock. The new lease is proposed for an initial term of 10 years, with four five-year options to renew the lease. The rent for this lease is subject to fair rental value pursuant to Valdez Municipal Code 14.04.020 which is determined to be 10% of appraised value annually which amounts to $1,500.00 annually for use of this property according to the most recent appraisal for the location. In addition to the baseline annual rent, staff proposes that lessee pay a fuel surcharge of $00.04 cents per gallon of fuel sold. The lessee should provide lessor access to meters and other records necessary to determine the annual volume of fuel sold at this location. Staff proposes this negotiated rate since the fair re...
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