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#18-45 - Authorizing Lease Amendment No. 7 with Valdez Ocean Dock, Inc. dba Big State Logistics for Lot 3, Alaska Tideland Survey 564.
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SUBMITTED BY: Nicole LeRoy, Community Development Planning Technician
FISCAL NOTES:
Expenditure Required: N/A
Unencumbered Balance: N/A
Funding Source: N/A
RECOMMENDATION:
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Approve Resolution #18-45 Authorizing Lease Amendment No. 7 with Valdez Ocean Dock, Inc. dba Big State Logistics for Lot 3, Alaska Tideland Survey 564.
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SUMMARY STATEMENT:
On June 1, 1976 the City of Valdez entered into a lease with Valdez Alaska Terminals, Inc. for 21 years with an additional six, five-year renewal options. The lease was assigned to Valdez Ocean Dock, Inc. dba Big State Logistics on July 7, 1997. Valdez Ocean Dock, Inc. has previously exercised four of six renewal options; one in 1997, one in 2002, one in 2007, and one in 2012. The lease expired May 31, 2017 and has been in holdover subject to all terms and conditions on a month to month basis since.
Valdez Ocean Dock, Inc. has requested to exercise renewal option five of six, commencing June 1, 2017 and ending May 31, 2022. The lease was due for reappraisal in 2017 and staff ordered an appraisal in August 2018.
In addition, the legal description has been updated from Parcel A, ATS 564 (18.16 acres) to Lot 3, ATS 564 to reflect a change in lease area. The lease area has decreased due to the approval of Resolution #17-26 authorizing an overlapping lease with the Valdez Fisheries Development Association, Incorporated for Lot 2 Alaska Tideland Survey 564.
This lease amendment accomplishes five changes:
First, it updates the lease area to reflect the new lease dimensions. Second, it reflects the changed rental value after staff ordered an appraisal per Paragraph 2 of the lease. The new amount will be $5,700.00 annually, calculated as 6% of the appraised value. Third, it will amend Paragraph 2 of the lease to state that if Big State Logistics wishes t...
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