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#21-19 - Authorizing a Lease and Management Agreement with the Valdez Museum and Historical Archive Association, Incorporated for the Museum and Museum Annex
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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 Resolution #21-19 authorizing a lease and management agreement for the museum and museum annex to the Valdez Museum & Historical Archive Association, Incorporated.
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SUMMARY STATEMENT:
The Valdez Museum & Historical Archive (VMHA) entered into a lease and management agreement (LMA) with the City of Valdez on September 3, 1996. The term of the original lease was for five years with four, five-year automatic renewal options at an annual rental rate of $10.00. The initial lease was from January 1, 1997 to January 1, 2002. The first automatic extension was from 2002-2007, the second from 2007-2012 and the third from 2012-2017. The fourth, and final, renewal term spanned from January 1, 2017 through January 1, 2021.
Since January 1, 2021, the Museum's LMA has been in holdover, subject to all terms and conditions on a month to month basis while City staff has worked with the museum to review and negotiate lease and collections management terms.
VMHA initiated the request to continue leasing the property for five successive periods of five years with the attached lease application. The initial term of this lease would be retroactive from January 1, 2021 - December 31, 2026. Rather than pursuing automatic renewal options as in the prior agreement, staff consulted with the City Attorney who recommended that the new lease be brought back for consideration by Council at the end of each five-year term.
VMHA has requested to continue leasing the property for $10 annually, as they have done in the past. Per Valdez Municipal Code Section 4.08.030 - Fair rental value to be used for leases - Exceptions, "the city may...
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