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Approval of Landlord Agreements for Peter Pan Seafood Company, LLC for Their Leases of City of Valdez Properties Known as Tracts C, F, L, and T, Harbor Subdivision and Portion of USS 495 (Tidelands)
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SUBMITTED BY: Jake Staser, City Attorney
FISCAL NOTES:
Expenditure Required: N/A
Unencumbered Balance: N/A
Funding Source: N/A
RECOMMENDATION:
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Approve landlord agreements for Peter Pan Seafood Company, LLC for their leases of City of Valdez properties known as Tracts C, F, L, and T, Harbor Subdivision and portion of USS 495 (Tidelands.)
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SUMMARY STATEMENT:
? In December of 2020, several leases between the City of Valdez and Peter Pan Seafoods, Inc. were amended and assigned to Peter Pan Seafood Company, LLC ("Peter Pan") by resolution of the City Council.
? Under the leases, the City has the ability to place a lien on personal property and improvements located on the leased premises in order to recover unpaid rent.
? Peter Pan has requested that the City of Valdez execute "Landlord Agreements" in order to facilitate its ability to secure financing from Wells Fargo.
? Upon execution of the Landlord Agreements, Wells Fargo would have a priority position over the City in the event that both Wells Fargo and the City sought to place liens on the personal property of Peter Pan for debt collection purposes.
? In addition, the Landlord Agreements allow Wells Fargo to cure any default under the leases by Peter Pan within 10 days of notice of such default in order to prevent termination of the leases.
? The City Attorney has reviewed, revised, and approved the Landlord Agreements.
? The City will retain the ability to place liens on improvements to the leased premises other than personal property, which, among other remedies, provides adequate means to recover any unpaid rent.
? The Landlord Agreements advance the public interest by facilitating seafood processing operations within the City of Valdez, which was the underlying pur...
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