ITEM TITLE:
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#25-57 - Authorizing an Assignment and Amendment of a Lease of 4380 McKinley Street, Parcel B, ATS 10 from Harris Sand & Gravel to Knik Construction, Co.
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SUBMITTED BY: Nicole Chase, Senior Planner
FISCAL NOTES:
Expenditure Required: N/A
Unencumbered Balance: N/A
Funding Source: N/A
RECOMMENDATION:
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Approve resolution #25-57 authorizing an assignment and amendment of a lease of 4380 McKinley Street, Parcel B, ATS 10 owned by the City of Valdez, from Harris Sand & Gravel to Knik Construction Co., Inc.
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SUMMARY STATEMENT:
Community Development staff received the attached lease application and lease transfer request to transfer the existing lease from Harris Sand & Gravel to Knik Construction, Co., Inc. for use of 4380 McKinley Street, Parcel B ATS 10 (plat 98-35) for a barge loading and unloading facility. Harris Sand & Gravel maintains a dock and stores a barge at this location.
Harris Sand & Gravel has leased this property for over twenty years. The first agreement spanned from June 1, 1998-May 31, 2003 and was in holdover on a month-to-month tenancy until 2016. In 2022, Harris Sand & Gravel secured a new lease, with a number of conditions, including that Harris Sand & Gravel be required to pay port tariffs on the materials moved through the barge location and that the city of Valdez be able to utilize the leased area and improvements during an emergency (see Exhibit B referenced in the lease). This is the lease Knik Construction is requesting to assume.
The Ports and Harbor Director and City Manager were solicited for comments on the lease transfer application, and recommended section 3.09 of the lease be amended to require annual reporting of the quantity of freight moved through the location.
Lease Term
Knik Construction, Co., Inc. has requested to take over Harris's existing lease term, expiring May 31, 2043.
Annual Rental Value
The annual rental value for this lease is set as 10% of appraised value. Appraisals are ord...
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