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#24-18 - Authorizing Assignment and Amendment of a Lease Agreement with Peter Pan Seafoods Company, LLC for Tract C Harbor Subdivision to Silver Bay Seafoods-Valdez, LLC
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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 24-18 authorizing assignment and amendment of a lease agreement with Peter Pan Seafoods Company, LLC for Tract C Harbor Subdivision to Silver Bay Seafoods-Valdez, LLC
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SUMMARY STATEMENT:
In June 1990, the City of Valdez entered into a lease for Tract C Harbor Subdivision with Peter Pan Seafoods, Inc. commencing June 4, 1990, and ending on the last day of June 2039. This agreement is for the construction of a 60' x 120' building for a sujiko operation (see attached lease.)
This lease is subject to reappraisal every five years for the purpose of adjusting the rent amount. The property was last appraised in 2020 and was valued at $193,000. Lessee currently pays 6% of appraised value for the property annually, as this was the fair rental value set forth in Valdez Municipal Code at the time the agreement was executed. The property will be reappraised in 2025 and the rental amount adjusted at that time. This resolution includes language to modify the rental rate to 10% of appraised value annually, in order to bring the agreement to the current fair rental value, per Valdez Municipal Code 4.08.010.
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 company.
If approved, staff will work with Silver Bay Seafoods-Valdez, LLC and the City Attorney to execute assignment documents transferring the lease holder interest from the former company, Peter Pan Seafoods Company, LLC to Silver Bay Seafoods-Valdez, LLC. All other terms, covenants, and cond...
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