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#22-37 - Authorizing Lease Amendment No.1 with the Valdez Emergency Assistance and Food Bank for a Portion of Tract D, USS 447
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SUBMITTED BY: Nicole LeRoy, Planner
FISCAL NOTES:
Expenditure Required: N/A
Unencumbered Balance: N/A
Funding Source: N/A
RECOMMENDATION:
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Approve Resolution #22-37 authorizing Lease Amendment No. 1 with the Valdez Emergency Assistance and Food Bank for a Portion of Tract D, USS 447.
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SUMMARY STATEMENT:
January 19, 2019 the City of Valdez approved a new lease agreement with the Valdez Emergency Assistance and Food Bank for a portion of Tract D, USS 447. This agreement was retroactively effective from the expiration of their previous lease, with a term June 1, 2017, May 31, 2022 with five, five-year options to renew.
The original term of the lease was for five years, commencing June 1, 2017 and terminating on May 31, 2022 with five, five-year options to renew, per section 2.06 of the lease. The use of property will continue to be for the maintenance and operation of the Valdez Food Bank facility.
The Food Bank has leased this portion of Tract D, USS 447 since 1997 for the amount of $1/year and the Food Bank desires to maintain this lease rate.
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."
The Food Bank is a registered 503(c)(3) non-profit organization. Due to the requested continuation of discounted rent, the approval of this lease amendment requires an affirmative vote of not less than six City Council members.
In addition to extending the term by utilizing extension option ...
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