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#24-19 - Authorizing Assignment and Amendment of a Lease Agreement with Peter Pan Seafoods Company, LLC for Tract F 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 24-19 Authorizing Assignment and Amendment of a Lease Agreement with Peter Pan Seafoods Company, LLC for Tract F Harbor Subdivision to Silver Bay Seafoods-Valdez, LLC.
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SUMMARY STATEMENT:
In May 1988, the City of Valdez entered into a lease for Tract F Harbor Subdivision, with Peter Pan Seafoods, Inc. commencing May 8, 1988, and ending the last day of June 2039. This agreement is for the use of providing housing to the lessee's employees (see attached lease.)
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.
This lease is subject to reappraisal every five years for the purpose of adjusting the rent amount. The property was last appraised in 2023, it was valued at $80,000. 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. 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.
Per Valdez Municipal Code, the Ports and Harbors Commission and Planning and Zoning Commission shall make a recommendation to the City Council on the decision to approve all the lease assignment and amendments. The recommendations from the Commissions will be forwarded to the City Council for their consideration.
If approved, staff will work with Silver Bay Seafoods-Valdez, LLC and the C...
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