ITEM TITLE:
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Approval of a Recommendation to City Council to Authorize a Lease with Terminal Radio, Incorporated (KCHU) for Parcel D1, USS 439 and Parcel D2, ATS 10
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SUBMITTED BY: Nicole LeRoy, Planning Technician
FISCAL NOTES:
Expenditure Required: N/A
Unencumbered Balance: N/A
Funding Source: N/A
RECOMMENDATION:
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Approve a recommendation to City Council to authorize a lease with Terminal Radio, Incorporated (KCHU) for Parcel D1, USS 439 and Parcel D2, ATS 10
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SUMMARY STATEMENT:
Terminal Radio, Incorporated (KCHU) applied for a lease with the City of Valdez for Parcel D1, USS 439 and Parcel D2, ATS 10 for continued operation and maintenance of the KCHU radio tower and broadcasting equipment on March 9, 2020.
Terminal Radio, Inc. has had a lease for this area with the City since May 1, 1995, which expired on the last day of April 2010. A new lease agreement was entered into on June 23, 2010 for five years with four-five year options to renew, ultimately expiring the last day of April 2020. KCHU has applied for a new ten-year lease with two, five-year options to renew.
KCHU Public Radio is a non-profit organization and has again requested to lease the properties at an annual rental fee of $1. Valdez Municipal Code defines fair rental value as 10 percent of appraised value for lease of City land. 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." Due to the requested discounted rent, the approval of this lease requires an affirmative vote of not less than six City Council members.
However, possessory interest requires t...
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