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Home My WebLink About1986-09-09 Council Packet - Work SessionKenai City Council Work Session September 9, 1986 Recreation Boat Launch Ramp Boardwalks and Viewing Areas In the Kenai River Flats CITY OF KENAI "Od ea W 01 4" 210 FIDALOO KENAI, ALASKA 00611 TELEPKOMEM-M5 NOTICE OF WORK SESSION There will be a work session of the Kenai City Council with the Kenai Chamber of Commerce on Tuesday, Sept. 9, 1986 at 7:00 PM in the Council chambers. To be discussed: 1. Recreation Boat Launch Ramp, Spectator Viewing Area on the Banks of the Kenai River 2. Boardwalks and Viewing Areas at the Kenai River Bridge in the River Flats Area The public is invited to attend and participate. Janet Whelan City Clerk DATED: September 1, 1986 i b. iR t R, 1 1 I R CITY OF KENAI edpd,al 4 4"„ Q/0 RIDALA0 KENAI, ALASKA M11 - _-- TELEPHONE283.MB ADDITION TO WORK SESSION TUESDAY, SEPT. 99 1986 - 7t00 PM Following the work session of the Kenai City Council and the Greeter Kenai Chamber of Commerce, the Council will sit in work session to discuss the followings 1. Redetermination of Leased Lands 2. Classification Study The public is invited to attend and participate. Janet Whelan City Clerk DATEDt Sept. 5, 1986 40 -2. F ti j k Kenai Chamber of Commeree Box 497 ` Kenai, Alaska 99611 (907) 283-7989 %h July 31, 1986 r. Honorable Mayor and City Council `` ,�• ', r .;� City of Kenai t 210 Fidalgo Street _rV __. _ ____._ ;., ___ Kenai, Alaska 99611 fi Dear Mayor Wagoner and Members of Council: .' The Kenai Chamber of Commerce, through its Visitor & Resident Information Center, has been made aware of several projects that would further enhance • our community and provide additional attractions that could be enjoyed by residents and visitors alike. `) Two items have continually been brought to our attention -- one being a recreation boat launch ramp -spectator viewing area along the banks of the Kenai River and the other being boardwalks and viewing areas sited at the r Kenai River Bridge in the river flats area. Both of these projects, we , believe, could benefit many for minimal costs. The Chamber Board of Directors has recently appointed a special task force, including Fred Braun, Walt Craycroft and Cheryl Sutton, to review the possi- bility of these projects and work in conjunction with the Kenai City Council 7 ? and City Administration. It would be our desire to meet with the members of t Council in an informal work session, at your convenience, to further discuss ` and present our proposal. -y Please advise our office if such a meeting might be acceptable to the members of Council and, if so, a date and time. .'.. Thank you for your consideration. SincereAy, 'Sue' C. Carter Executive Director CC: Mr. Bill Brighton, City Manager L C OY oil m r — • f i .rZlIcLa g, C., I �t Y �t V?- , r y Ll a44-la ,k GtiI'sx.r .�(i►(G. OW� 6/,6 (/t7 R7 J, W, K p 0 01) 0 0 0 43 - I r �- �r �r t}r: � m E n u .�^-act �r � • 71 B S Z VENTURES P.O.Box 2786 Soldotna, AK 99669 September 5, 1986 Tim Rogers - City Attorney City of Kenai 210 Fidalgo Kenai, AK 99611 Re: Lot 13, Alyeska Sub - City Lease Dear Tim: This letter will confirm our recent telephone conversation and ';k.. the receipt of your letter, dated August 26, 1986 with regard to the above subject property. In our opinion the increased rent effective July 1, 1986, is exorbitant and should be negotiated downward. I am sure you are aware that in the past people were encouraged _ by the City of Kenai to lease and develop city lands. The .. ordinance was so constructed to invite this and any rental increases were limited to 50% maximum. This has been the case for the past ten years. Now it appears after considerable private development and expense, the City by ordinance can do as it pleases. In our ,. case the proposed increase is more than three ( 3 ) times the pnvious rent. Persuant to paragraph 10 ( page 2 ) of that certain lease between # the City of Kenai and Kenai Steel Buildings, subsequently assigned to B & Z VENTURES, dated June 1, 1966 we believe the lease rate j. increase should be redetermined. With respect to the current and projected sconomy we feel -an increase in rant •oE anything more than 100% would noe bt fair or:equi:.able. �i'herc,fore0 ewe would pronnse 1 a .1(-.af.e raf.P . of fec:tiwe July 1, 1()86 of $2, 700 per year. { - Sincerely, t 466780 '1:17etovu { eve Bo h art ow er 8 & Z Ventures SEPI9 Q �f SJB/ j lb s. cc: file i Don Cornell, Intercore Inc L Ciry� pggU b 'poi UK] I M - p . July 8, 1986 e - s MEMORANOUM r, FROM: RE: r sn�r-a - t CITY OF KENAI edpdal 4 41ad"" 210 FIDALOO 01M. ALASKA ogeii TELEPHONE283.7335 Tim J. Rogers, City Attorney Kim Howard, Administrative AssistantO Redeterminations This memorandum is in response your request concerning the number .`4 of lessees who have notified me expressing their dissatisfaction with their increased lease rates on lots being redetermined this C year. -A qualified appraiser performed appraisals on each lot and 1 the appraised values have been confirmed by a second appraiser. One of the reasons for higher lease rates is because five years ago, at the last redetermination, many of these lessees had a one-time 50% cap as a result of a 1979 Ordinance. That Ordinance - was repealed in late 1981, and Ordinance 684-81 limited the cap to on -airport lands, restricted to aeronautical use only. This year there were 31 lots up for five-year redeterminstions. I have received 14 signed Amendments. The following is the status ` of the remaining lots. I have attached-eopiee of the appropriate correspondence. -UHT (Kambe), Lok ,12, .,Meyesk.a .S•1h. bas submitted a requeKL to purchose.their;two late: Tice previous annual rate for Lot 12 was $19350.00, the new rate is $4,500.00 c Phillip Evans, Lots 2 & 39 Block 5, CIIAP - wishes to rescind his lease for Lot 3. He has submitted this in writing. The previous rate on each lot was $987.75, the new rate is { $49466.60. Walter & Gloria Church, Lot 61 Block 2, Fidelgo Sub. - I 'r ! received a letter June 26 and have forwarded it to the Legal l Department for response. Previous annual rate was $1,554.00, the new rate is $4,353.12. (A copy of letter is attached.) 7 1 ENC Corporation (Alaska Steel), Lot 5, Block 2, CIIAP - I y received a letter June 30. Previous annual rate was $2,440.50, now rate is $6,510.00. (A copy of letter is attached.) Beluga Development, Lots 10, 11, 12 & 14, Block 1, CIIAP - Received letter from their attorney (Frost & Grashin) addressing i this and other problems. I have forwarded this to the Legal Department for response. The previous rate for Lot 10 was $2,355.00, the new rate is $6,276.841 for Lots 119 12 & 14 was $2062.509 new is $6,300.00. (A copy of letter is attached.) Milton Stasek, Lots 2 & 3, Block 5, GAA, hoe submitted a letter July 1 protesting the increase and requested the proposal is go back for review. The previous rates were $1,749.00 and the _ �.q new rates are $4,549.38. (A copy of letter is attached.) The Die -log Company, Lot 5, Block 5, GAA - Has submitted a - letter to which I responded concerning the cap provision. Previous rate was $1,749.75, new rate is $4,409.40. f New Pines Corp., Lot 1, Aleyesks Sub., Part 3 - Has }� submitted a letter to which I responded concerning the cap 1 provision. Previous rate was $6,674.64, new rate is $269683.20. Ed Zehrung, Lot 13, Aleyeska Sub., - Wishes to Assign Lease to 8 & Z Ventures. I gave 8 & Z a copy of a sample assignment. i He told me he would have the assignment beck for the next Council packet. Previous rate was $1,350.00, new rate is $49446.00. Aaron Sarks, Lot 4, Block 4, CIIAP - verbally expressed dissatisfaction but did sign and return the amendment. Previous rate was $945.00, new rate is $5,670.00. S I have had no response from Dave Diamond, Kenai Aviation Services, Ron Swenson, and Alaska Bussell Electric on their lots. In�additinn, Wally Page whochaa filed a.Iease Application fot Lot s 4j Block -I, CIIAP hr.is verbally expresaed'to me that he felt the appraisal qn this lot ties too high. (Appraised at $909000 x 6% lease Cate•)_-$5 400 00 annual less; rate ) Please let me know if you need any additional copies of correspondence or other information. ccs Wm.-J. Brighton 0. C e F �1 -I 04104141,1,- City of Kenai 115 Fidalgo Kenai, Alaska 99611 Re: Lot 6, Block 2, Fidalgo, Sub Account #2020 Lease redetermination Gentlemen: I protest the excessive amount you arbitrarily raised my annual lease payment an the above property. There is no place in my lease giving the "Kenai City Council" the right to adopt a rate of return for the lease amount. My lease states that no increase or decrease shall be effective, except upon 90 days written notice. My notification letter stating the increase was dated May 21, 1986,however, I received it June 3, 1986, than I got a bill for the increase on June 19, 1986. This does not Siva me 90 days notice and is grossly unfair to not give me a chance to protest the increase. The Increase you are billing me for went from 7 1/20 per square foot to 210 per square foot. In these times of slow economy,the increase I feel, is too much. I presently have the property rented and would 4 have to Increase the rent from the present .950 per sq.ft to $1.16 per sq.ft. There are too many empty office spaces in Kenai for my renters to paythis much. I would lose my tenants if I have to increase --Iz rent so vuell. ti. VjAccorein& to my te,,ze_. I hz,,vfl Oplit to. protest- this exhorb3.tant -Ancrease and h -Lccby xequest arbitzation. I await your reply. Very truly yours el I T Walter and Gloria Church 1619 FAthom Kenai, Alaska 99611 283-7463 A I h 1i } y . 1 J t i r".rl ALASKA STEEL CO. 1200 West Dowling Anchomp. Alaska 99502 (On 581.11es �� r JUNE 30,1986 ZOO: CITY OF KENAI AT1N: KIM HOWARD RE: LEASE AOREEMENr UYr 5 , BLOCK 2 , CIIAP We ask that you re:evaluate our lease, We feel a small increase would be acceptable. But with the real estate market the way it is today, we feel a increase of three times the amount, from the previous year seems high. Reading the ordiance #684-81, seems to state that were limited to a 50% increase, that should put our lease to $3,843.80 per year. We would appricate it, if you re:consider our lease. Thank you, for your cooperation. Joe Suiter Alaska Steel Co. iiMhihooMm Mr Ills&* e L -� ALASKA STEEL CO. 1200 West OOWIM9 s / Anchorage. Alaska 99502 (907► Set -ties T¢C . c; I !I ! qC ! I2 i JUNE 30.1986 TO: CITY OF KEMAI ATTN: KIM HOWARD RE: LEASE AGREOM IAr 5 , BLOCK 2 , CIIAP We ask that you re -.evaluate our lease, We feel a small increase would be acceptable. But with the real estate market the way it is today, we feel a increase of three times the amount, from the previous year seems high. Reading the ordiance #684-81, seems to state that were limited to a 507. increase, that should put our lease to $3,843.80 per year. We would appricate it, if you re:consider our lease. Thank you, for your cooperation. d�� Joe Suiter Alaska Steel Co. I . I f 11 1 STEPHEN F. FROST DAVID E. GRASHIN FROST & GRASHIN ATTORNEYS AT LAW 3900 ARCTIC BLVD.. SUITE 201 ANCHORAGE, ALASKA 99303 June 26, 1986 1^yv N C�Ty ��• . .�i �FkfNA/ �r17' AREA CODE 907 563.0303 Kim Howard, Administrative Assistant City of Kenai 210 Fidalgo Kenai, Alaska 99611 Re: Lots 10, 11, 12 & 14, Block 1, CIIAP, Dear Ms. Howard: Please be advised that these offices represent Beluga Development Corporation with regard to the leases on the above -referenced property. On behalf of my client, I have reviewed the leases in question. I have also reviewed the correspondence in this matter and believe it appropriate to set forth, historical- ly, what the City of Kenai has attempted to do and has done over the years with regard to these leases. Firstly, the City has at all times refused or failed to renegotiate the lease terms on each fifth year anniversary of the lease. Instead, the City has simply dictated a new lease rate and threatened to terminate the lease if the dictated lease -rate increase was not paid. In the past, those .increases. were not substantial and my client has .acquit 3csd in. the payment .of the ,:newly dictated amounts. ,. Serond-1y,,: itappaaLL thatv.thsnre vas ArSO$ increase cap in -existence pursuant to. the Kenai Municipal Code.' if that cap was in effect in 1966, then it appears that it should continue to be applied to these leases pursuant to the grandfather rights acquired by my client. -= ---- ---=-= -� Thirdly, in 1981, the City threatened to cancel the " leases altogether if my client did not begin construction of improvements on the leased property within 60 days of receipt of notice. Of course, that was not consistent with the terms and conditions set forth in the lease agreement C 11 1 STEPHEN F. FROST DAVID E. GRASHIN FROST & GRASHIN ATTORNEYS AT LAW 3900 ARCTIC BLVD.. SUITE 201 ANCHORAGE, ALASKA 99303 June 26, 1986 1^yv N C�Ty ��• . .�i �FkfNA/ �r17' AREA CODE 907 563.0303 Kim Howard, Administrative Assistant City of Kenai 210 Fidalgo Kenai, Alaska 99611 Re: Lots 10, 11, 12 & 14, Block 1, CIIAP, Dear Ms. Howard: Please be advised that these offices represent Beluga Development Corporation with regard to the leases on the above -referenced property. On behalf of my client, I have reviewed the leases in question. I have also reviewed the correspondence in this matter and believe it appropriate to set forth, historical- ly, what the City of Kenai has attempted to do and has done over the years with regard to these leases. Firstly, the City has at all times refused or failed to renegotiate the lease terms on each fifth year anniversary of the lease. Instead, the City has simply dictated a new lease rate and threatened to terminate the lease if the dictated lease -rate increase was not paid. In the past, those .increases. were not substantial and my client has .acquit 3csd in. the payment .of the ,:newly dictated amounts. ,. Serond-1y,,: itappaaLL thatv.thsnre vas ArSO$ increase cap in -existence pursuant to. the Kenai Municipal Code.' if that cap was in effect in 1966, then it appears that it should continue to be applied to these leases pursuant to the grandfather rights acquired by my client. -= ---- ---=-= -� Thirdly, in 1981, the City threatened to cancel the " leases altogether if my client did not begin construction of improvements on the leased property within 60 days of receipt of notice. Of course, that was not consistent with the terms and conditions set forth in the lease agreement C a i, i ,.. 4 4 ' i s ,i CKim Howard City of Kenai June 25, 1986 Page 2 and my client vigorously objected and the City amended its position. Fourthly, in May, 1985, the City attempted to impose new leases on my client and I was retained to review and discuss that proposal with my client in June, 1985. The proposed new leases were seriously to my client's detriment and were not executed. Finally, each year my client receives a demand for pay- ment of the real property taxes. Upon reviewing the lease. it appears that my client has been coerced into paying the property taxes which it had no contractual responsibility to do. Last year the taxes exceeded $4,200. This year, it is expected that the taxes would double based on the new but questionable appraisals. Over the years, it is believed that my client has spent more than $40,000 in the payment of real property taxes, all of which should be reimbursed to my Cclient by the City of.Kenai. With regard to your letter of May 21, 1986, I find the language contained therein particularly objectionable, but consistent with the City's past actions. You state that the leases contain a clause for a 5-year "redetermination of the lease rates." The word "redetermination" cannot be found in the lease. However, it appears that every five years the City takes the position that it can unilaterally determine what the new rate will be. This is in direct violation of the lease agreement. Fv.:•thermore, with regard to the City'Council'-hdoptinq a• 4& rate. of return for !:?ase of airport lands, that has absolutely nothing to do with the leases Under. discussion., ,,If the City Council established a 20% or 40% rate of return figure for airport lands, it would not affect my client. The lease rate is what it is today until it is renegotiated or the Board of Appraisers determines it to be otherwise. To "negotiate" means to bargain, discuss, arrange, conduct communications or conferences, and calls for deliberation, discussion, or conference upon the terms of a proposed agreement. Although the City has never been inclined to "negotiate" this lease in the past, we feel that due to the outrageous increases dictated by the City, that the terms of the lease must be adhered to. z R] Kim Howard City of Kenai ' s June 25, 1986 Page 3 With regard to Lots 10, 11, 12 & 13, pursuant to my client's letter of May 11, 1981, you were advised that Brinkerhoff Drilling Company is the sublessee. They are now i .. paying $1,550 per month or $18,600 annually. (My client has ` '< never been able to sublease Lot 14 despite efforts to do f so) . F Based upon your newly dictated terms, my client would have to raise the rents to $3,333 per month or $40,000 per year to simply to cover the lease rate, taxes, and ' :3 insurance. Of course, my client does not intend to pay any more real property taxes anti 1 such time as it can be shown that it is contractually obligated to do so. However, there is no doubt that Brinkerhoff will vacate the premises if it receives notice that its monthly rates will have to double " beginning July 1, 1986. My client is not inclined to give such notice until such time as a lease rate is renegotiated and established. However, if the City of Kenai is going to take the position that any newly established rate shall be 1. retroactive back to July 1, 1986, then my client will be compelled to promptly announce the increase to Brinkerhoff . and risk losing Brinkerhoff as a tenant. Of course, if it i is subsequently established that the lease rate will not be increased in the amount currently dictated by the City or it is established that the new rate is not retroactive, and my client has lost Brinkerhoff as a tenant, then Beluga will look to the City for damages as a result of Brinkerhoff Is vacating the premises. My client must mitigate damages but mot .at,.to. risk of -subsequently being. respon:-iblt for.: -the.. subst&aw;tally in - creased lease 1rates. The -simple fact is that if Brinkerhoff j were were to vacate the premis•es•t and-" Vhe lease rates were mox a - than doubled, as per -your latest letter, then my client would have no further interest in leasing the property and would terminate the lease effective July 1, 1986, due to the City's failure to negotiate the leasest the City's ignoring the 50% cap rates the City's past actions with regard to ! ► - j terminating the Lease for failure to construct improvementss Il -- - ----- the City's efforts to impose new lease agreements detriment- al to uW client's interests the City's improper threats to 4 foreclose my client's interest if it does not pay the real property taxess and the failure to negotiate a new lease . rate with my client on the 5-year anniversary dates. is r Y P Kim Howard i # City of Kenai m. June 25, 1986 Page 4 -"y -- In conclusion, if you have in your possession any in- formation which you believe requires my client to pay the real property taxes, please forward that documentation to ;f me. Secondly, please advise immediately as to your position with regard to the retroactive effect of any lease rate in- crease. Finally, please advise me if you are in a position _ to renegotiate the lease rate. —' Thank you for your time and consideration in this matter. AceSrel en SFFsdc cc: Beluga Development { 4. a F T0, FROM VIP KeAkca— i;L6 rrL Cc^Acy- o A-Y, SUBJECT4 qp (o :3 9 -11cl 1) DATE 17/ 196- oMESSAGE CPAA,4tr. 71 e- *1 f2 pro i-eck-±D24 LW *4S4611 salftAgwum~ a•NO REPLY NECESSARY a REPLY REQUESTED - USE REVERSE SIDE �l .i - -I a fa s' n A CITY OF KENAI „od eap" 4 4"01P MO FINUM KENAI, AUM M11 Tv"MONE M.1'dad MEMORANDUM TO: Councilmembers City of Kenai FRO m Rogers, City Attorney City of Kenai August 13, 1986 RE: Lease Renegotiations This memorandum was prepared in an effort to help the City Council understand ongoing negotiations with lessees. As some Councilmembers may be aware, in the pest these negotiations have led to litigation. In order to avoid possible litigation down the line, the Legal Department has prepared a procedural plan for dealing with the lease renegotiations. Accompanying this memorandum is a spreadsheet and procedural flow chart prepared by the Legal Assistant which detail how the negotiations are being conducted. The spreadsheet, for the most part, is self-explanatory and delineates the status of each individual lessee up for re-negotation in 1986. The codes that go with the respective columns are attached to the back of the spreadsheet,on individual pages. It should be -noted that there ade fixr; •dxf: Brent :renmeyot iation clauses written into these varicur lesser. Cacti individual clau3e determin(:a how the various re&negotiet•ion processes are conducted. Unlike the spreadsheet, the flow chart is not easy to comprehend. In order to aid the Council in understanding the proceedings, a narrative follows herein in which the various steps of renegotiation ere discussed. Box (1) indicates the lease file so it is maintained at City Hall. To initiate renegotiation, the Administrative Assistant sends a re -negotiation notice to the lessee (2). The question 1 ap then becomes under (3) whether this notice is effective or not. If for instance the lessee does not pick up the notice or something happens to the mails whereby the lessee does not receive notice, then the chart returns the reader to (2) and another re -negotiation notice is sent. If the notice is effective, then the question becomes whether the amendment has been signed (4). If the lessee signs the amendment without any protest, the lease is returned to the lease file and that is the end of the re -negotiation process as to that lessee. If however, the lesseee protests the proposed increase in rent (5), certain things must happen. If the protest is oral, the Administrative Assistant should send a letter to the lessee demanding that the protest be reduced to writing (6). If, however, the lessee protests in writing, then the Administrative Assistant forwards the file to the Legal Department (7). If no protest is forthcoming, then the Legal Department proceeds with eviction (20) which is discussed later in this memorandum. Once the Administrative Assistant has forwarded the file to the Legal Department, the Legal Department addresses the basis of the protests (8). There appear to be several general categories of protest which many of the lessees raise. These include questions of whether they are entitled to a 50% cap and whether the City is negotiating or simply redetermining. Other protests can include just a general objection to the dollar figures, miscellaneous objections, and notice requirements. If the notice is not effective (9a) the process starts all over and the reader is returned to (2). If however, the notice is effectivs 89 determined by the Legal Department, the Legal Department then sends a letter (10) addressing the protests. If there is a response (11) to this protest, in the form of further protests (12), then tho protest process starts again from (5). If however, there is no response from the lessee or there is no further protest, then the question must be asked whether any negotiation has been initiated at all (13). If negotiation has been initiated in some manner and it is successful (14), then the process in to have a lease reLe set.(18). If however, the `negotiation has not been initiated, the - question needs to be w asked whether arbitration:is available and/or required under the lease (15). If no arbitration is available, the Loyal Depar.tmont proceeds to the eviction procedures set under (20). If arbitration is available, then the City appoints an arbitrator (16) and notifies the lessee and demands that the lessee appoint a second arbitrator as required under the lease clause. The question then is whether the lessee appoints the second arbitrator (17). If the lessee does not act and does not appoint ceedings are initiated under (20). If 2 L L 0 the lessee does appoint a second arbitrator and a lease rate is eventually set (18), the procedures determine whether the amendment was signed (19). If the amendment is signed, then it obviously returns to the lease file, and that is the end of the negotiations. If however, the amendment has not be signed, then the eviction proceedings are invoked (20). The first step in the eviction procedure is for the Legal Department to send a notice to quit the premises to the lessee. If there is response (21) in the form of a protest, then the protest procedures are again invoked at (5). If however, there is no response to the notice to quit the premises, then the Legal Department is forced to file a forcible entry and detainer (FED) proceeding (22). The litigation process is outside the parameters of this flow chart, however it is assumed for purposes of this chart that the property is eventually restored to the City (23). In the past this has generally been how the City FED's have been resolved. TR/clf 3 L, Lw L_ 7 j 1 Loomma- c c I Y I - I 1 I j �• to ' �. i ■ � • i � � � • O •. .� `I o 1 {m `i I } s z r ■ �� y s .s z ■ . s s ► ► : ► �• I _ I$ •( Ip�ng �g •q$µ«4 R,i4 � I�-i► � `Ig _1 8 ef�l�� gI$ • 9971 •gnMg.�nNg i m}Qe; glg -Pn - sd �ilr I I 1= I s s 22 z Iz ■�� = I' I I I I �I y •••t I � I IJ � O O ' O' h O t ,• .+ I m � i o I• • o I • m 'xxsaa xaa ss a>'� • ao I � g I .uuuv uir u � p I s Id 1 0 1 I9 d i '� � i � i - 5: � � • q o hRrg Psi x>r `�f' L L a Q604 0 0 a a a lu t i F —I q 71 -11 .e,— 14- �. I A {. The following clauses are excerpted from various leases �! The clause can be matched to the lessee by referring to the clause column of the spreadsheet. 4 As near as can be determined, James Fischer was the City Attorney when leases containing the A and B clauses were •>. drafted. Ernie Schlereth drafted the D clause. Ben Delahay drafted and/or approved the C clause. 4 Tim Rogers drafted the E clause. Problems (such as those encountered in the Ferguson Litigation) arose when leases failed to include paragraphs 10 and 33. Ferguson's lease is an A type lease. Essentially, someone `• left off paragraph 33. lo. In thy event this lease is for a term in excess of five (5) years, the amount of rents or fees spucifiod horuin shall be subject to renegotiation >( for incroaso or decrease nt intervals of five (5) years from the 1st dn;, of July preceding tho efructivL date of this luase. A i d' t { lo. In the event this lease is for a term in excess of five (5) years, the sr:. -ant of rents or fees spucifiod horoin shall be subject to renegotiation for increase or tlenrease at intervols•or five (5) years from the lst day of July preceding thy ef•feativc dote of -phis lease. k ses or do6Peoees in she rout payment to the CITY fail 37. When increa . of determination by the Padtios nu3otiiotion at the reuse in rental pay, then the question of the amount of increases or doerease in rental payments shnll be determined eolloetively by a Board or Appraisers. The Board of I�. ippraisere shall utilize accepted appraisal methods and criteria In arriving S at the determination of the sum of the increase or doareaeo, if any. Said - Board of Appraisers shall be composed or three members, unless othorwiso agreed upon, with one member to bu chosen by the CITY and the other member a to be chosen b the LESSEE, with the third member to be salaoLod by the two y member initially selected. In the event the members selected by the parties can not a3roo on the third board mumbrr, such member may be appointed by the i is Superior Court of the Stets of Alasica,�upon application of either of the purtiea. I I e 9. &&HT.ZSC&L&T14dr In the event this Lease is for a term in excess of five (5) years, the amount of rents or fees specified herein shall. at the option of either party, be subject to redetermination for increase or decrease based on the percentage rate (set in C.I. above) of fair market value at intervals of five (5) years from the lot day of July preceding the effective date of this Lease. No increase or decrease in the amount of rents or fees shall be effective, until after thirty (30) days written notice. Pair Market Value is defined as "the highest price estimated in terms of money which a property will bring if exposed for sale on the open market allowing a reasonable period of time to find a purchaser who buys with knowledge of all the uses to which it is adapted and for which it is capable of being used." This Fair Market Value will be based on the condition of the land on the date of this lease plus the value of improvements, if any, made by the City subsequent to the date of this Lease which would affect the value of the property. At each five (5) year interval, the City will have the fair market value determined by a qualified independent appraiser. The redetermined lease rate, annual rent, under this provision shall be limited to a fifty percent (50%) increase in the prior lease rate until the 30th year anniversary of the lease after which the 50% cap provision shall no longer apply and the lease rate shall be redetermined every five years on the basis of fair market evaluation as indicated above. If the Lessee does not accept the above appraisal as the fair market value as of July 1 of the redetermination year, Lessee shall give written notice to City of such refusal within 30 days after delivery to Lessee of the appraised valuation and the rental rate derived therefrom, and within 10 days after such notice of refusal, the Lessee or the representative of the Lessee will meet with the representative of the City to select an impartial appraiser who must be a member of a recognized appraisal organization with a designation which denotes proficiency in the appraisal of commercial property fron such organization. If the Lessee fails to give written notice of refusal lithin 30 days c: to meet with a representative of the Cite with:.r. 10 days after delivery of notice of refusal (or within any extension of such time granted by the City Manager !or good cause shown to him), then the rate as determined by the City will be effective and failure to pay.that rate in full by Lessee will be cause for cancellation of the lease. .-12'the City and Lessee cannot agree on an appraiser as above provided, the City and Lessee shall each submit the name of such appraiser who has not rendered -an appraisal on the property subject hereto within one year prior to selection, the names will be placed in a container, and one will be drawn by lot. The parties hereby agree that the appraiser agreed upon or so selected will be retained for the redetermination appraisal, that each party will pay one-half of the fee and expenses of the appraisal, that the appraiser will be informed that he or she is being jointly retained by the parties, and that the appraisal rendered will be binding on both parties for that specific redetermination of rental rate, which shall be effective as of July 1 of the redetermination year. L R� r ---,;V to. bent F.renIation: I ( event this Lease is for a term in \\ excess of five (5) years the amount o ,is or fees specified herein shall at the option of either pnrty, be subject to renegotiation for increase or decrease at intervals of five (5) years from the lot day of July preceding the effective date of this Lease. The amount of such rents or fees as reneestiated shall reflect the then prevailing fair market value of the leasehold. Vo increase or decrease in the amount of rents or fees shall be effective, except upon ninety (90) days written notice. In the event the parties are unable to agree upon the amount of such increase or decrease, such amount shalt be determined by three (3) disinterested personas one thereof to be appointed by the City Councils one to be appointed by Lossco. its successors or assigns; and the third to be chosen by the two (2) persona appointed as aforesaid. The written determination of such three (3) persons shall be final and conclusive. Neither party shall commence legal action without complying with this D provision. �E 9. RENT ESCALATION: In the event this Lease is for a term in excess of rive yeare, the amount of rents or fees specified herein shall, at the option of either party, be subject to redetermination for increase or decrenoo booed on the per- centage rate (set in C.I. above) of fair market value. This lease :hall first be subject to redetermination on July 1 1996 (due to the original lease by lessee having commenced on 3anuary 129 1967) and thereafter at intervals of five (5) yeare. No increase or decrease in the amount of rents or fees shall be effective, until after thirty (30) days written notice. fair Market Value is defined as "the highest price estimated in terms of money which a property will bring if exposed for sale on the open market allowing a reasonable period of time to find a purchaser who buys with knowledge of all the uses to which it is adappted and for which it is capable of being used". This Fair Market Value will be based on the condition of the lend on the date of this lease plus the value of improvements. if any, made by the City subsequent to the date of this Lease which would affect the value of the property. At each five (5) year interval, the City will have the fair market value determined by a qualified independent appraiser. The redetermined lease rate, annual rent under this provi:ion shall be limited to a fifty percent (50%) Increase in the prior lease rate until the 30th year anniversary of the lease after which the 50e cap provision shall no longer apply and the lease rate shall be redetermined every five years on the basis of fair market evaluation as indicated above. Protest Codes A..... 50E Cap B..... Noticv C..... Negotiation D..... GPner.l $ E..... Miscellaneous Action Codes f RN1:.... Renotice RL1:.... Response Letter 1 RL2:.... Response Letter 2 etc. AL1:.... Answer by Lessee to RLI etc R'cvd. NTQ:.... Notice to Quit Premises Sent Ii FED:.... File Forcible Entry and Detainer Action Payment Code `i N..... Lessee is paying redetermined rate a'. 0..... Lessee is paying old lease rate ID.... Lessee is in default for non-payment L L o1 ..IRW 1 Kenai Chan er of Commerce j Box 497 t �t Kenai. Alaska 99611 (907) 283-7989 4 I 4 fCOMMITTEE: Special Task Force - Boat Launch and Boardwalks along with the Kenai 9 River Flats ,;- DATE: Thursday, August 28, 1986 }; - 'i PRESENT: Committee Members Royce Roberts, Walter Craycroft and Fred Braun. 1{ Chamber President Roger Roll; Representatives from Alaska State Parks - _. + Walter Ward, Sara Webber and Chris Titus. Mike Boylan of U. S. Fish 6 Wildlife and Bill Nelson, local engineering firm k Discussion followed relative to the feasibility of the construction of Boardwalks j� along the Kenai River Flats adjacent to the Bridge Access Road. Items including the '.ft.. permit processes, construction, funding, etc. were extensively discussed and the `y- following was the concensus of the meeting attendees: (1) Monies were available for enhancement of the area, however, $10.000 has been allocated for the construction of bathroom facilities. r (2) Labor could be utilized from the Wildwood Correctional Facility for the con- struction of the Boardwalk. (3) Additional funding could be obtained by donations and/or purchase of specified portions of the Boardwalks, which then would be designated with a plaque of the individual's name, etc. (4) U. S. Fish 4 Wildlife would assist with such items as the scopes, signing and - at certain time of the year, perhaps some staffing of the area. (5) Alaska State Parks will assist with the permit process as well as a proposal for the siting of the Boardwalks and viewing platforms. The proposal will be done 1 with "phase construction" so that a portion of the project may be accomplished as funding and time permits. WORK SESSION: A work session with the Kenai City Council will be held on Tuesday, September 9th with members of the committee and State Parks attending. Boat Launch After considerable discussion on the suitability of a public boat launch that was located near the downtown area as well as accessible to the good fishing, it was i determined by committee members that they would meet and view the Cunningham Park i! Area as a possible site. In addition, engineer Bill Nelson reviewed the proposed plan for the up -grade and construction of a dock facility located at the site of the Ai. present Kenai City Dock. Mr. Nelson explained that this would accommodate commercial ' fishing boats as well as provide parkings for vehicles and trailers plus a public boat launch. Expansion also includes plans for restroom/shower facilities and additional parking areas. The committee will meet with Mr. Nelson on Monday, September 8th. n �t a4 -"W, .. �:,x f. c, rou-r . �•..�!ift"'�:'-••'..�-.;-.:,:.,..ram- -: i ` . r� ".,r �-? °'� '-``�' "`'may' �•^ Paved Area - Centennial Park �. . _y 'e�vrea�^�_ "..,:tc�... Lam..._. �'':• BOAT LAUNCH WA T�'•+a is , .; r' x i - rr �* r-�,ggq, .'�,'•t... 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