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#24-17 - Authorizing Assignment and Amendment of a Lease Agreement with Peter Pan Seafoods Company, LLC for a 39,376 square foot Portion of USS 495 Tidelands to Silver Bay Seafoods-Valdez, LLC
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SUBMITTED BY: Nicole LeRoy, Planner
FISCAL NOTES:
Expenditure Required: N/A
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RECOMMENDATION:
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Approve resolution 24-17 authorizing assignment and amendment of a lease agreement with Peter Pan Seafoods Company, LLC for a 39,376 square foot portion of USS 495 tidelands to Silver Bay Seafoods-Valdez, LLC
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SUMMARY STATEMENT:
In December 2001, the City of Valdez entered into a lease for a 39,376 square foot portion of USS 495 Tidelands, with Peter Pan Seafoods, Inc. on October 1, 2002, for twelve years, commencing December 1, 2001, and ending the last day of November 2013 with six five-year renewal options. This agreement is for the use of a fish processing dock in the small boat harbor.
This lease agreement was amended twice exercising the first and second of six five-year renewal options in the agreement, extending the lease term to the last day of November 2023. In addition to assigning the lease interest to Silver Bay Seafoods-Valdez, LLC, the lease will be amended to utilize the third of six five-year renewal options, extending the lease term to the last day of November 2028.
This lease is subject to reappraisal every five years for the purpose of adjusting the rent amount. The last time the property was appraised was in 2021, it was valued at $40,000.00. Lessee currently pays 10% of appraised value for the property annually, as defined to be fair rental value by Valdez Municipal Code. The property will be reappraised in 2026 and the rental rate adjusted at that time.
Representatives from Silver Bay Seafoods-Valdez, LLC approached staff with the request to assign and assume all the lease agreements held by Peter Pan Seafoods Company, LLC prior to closing of a sale agreement with the comp...
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