ITEM TITLE:
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#24-20 - Authorizing Assignment and Amendment of a Lease Agreement with Peter Pan Seafoods Company, LLC for Tract L 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 24-20 Authorizing Assignment and Amendment of a Lease Agreement with Peter Pan Seafoods Company, LLC for Tract L Harbor Subdivision to Silver Bay Seafoods-Valdez, LLC
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SUMMARY STATEMENT:
In July 1984, the City of Valdez entered into a lease with Uncle Jim's Alaska Seafoods, Inc. for fifty-five years, ending the last day of June 2039. This agreement is for the use of a fish processing plant, seafood restaurant, or other closely related purpose (see attached lease.) This agreement was assumed by Peter Pan Seafoods, Inc. in 1989 and they took over management of the property.
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.
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 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 2024, it was valued at $300,000. 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.
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, Peter Pan Seafoods Company, LLC to Silver Bay Seafoods-Valdez, LLC. All other terms, covenan...
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