HomeMy WebLinkAbout1990-04-06 Council Packet - Work Session, Carr-GottsteKenai City Council
Work Session
April 6, 1990
Carr-Gottstein Proposal
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1791-IMI
CITY 4F KENAI
"Od Capd4d 4 4i „
210 F11 ALOO KENAI, ALASKA Mil
TELERIONE 293 -1535
FAX 907.283-3014
NOTICE OF MEETING
The Kenai City Council will be holding a work session on
Friday, April 6, 1990 at 6:00 PM in the Council Chambers.
To be discussed:
1. Carr-Gottstein Proposal
The public is invited to attend and participate.
Janet Ruotsala, CMC/AAE
City Clerk
DATED: April 5, 1990
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P.O. Box 421213800 S.E. 22nd Avenue
Pbrtland, OR 97242
(503) 232-8844 TLX 360415
Frederick M. Stevens
Chairman of the Board
Chief Executive Officer
April 4, 1990
Mr. Wm. J. Brighton
City Manager
CITY OF KENAI
210 Fdalgo
Kenai, AK 99611
Dear Mr. Brighton:
On behalf of the Board of Directors, we appreciate your letter of March 29, 1990,
informing us of the recent decisilon and sous oft of the City of Kenai. As yQ_u know,
Fred Meyer has had a long-term buss interest in the city and the entire Peninsula.
We deeply regret that we have not been able to build a new full service Fred Meyer store
at the Kenai site. When we agreed to the site in July of 1985, we had hoped to put it on
our construction schedule within the following year.
Unfortunately, the economic circumstances in Alaska changed shortly after our agreement
and did not allow for us to proceed as planned. We are pleased that the economy
currently in Kenai, the Peninsula, and the entire state appears to be most encouraging
and optimistic.
We are most grateful to you, the City Council, and the entire City of Kenai for your support
of Fred Meyer. We appreciate your friendship and look forward to a continuing
relationship on the Peninsula_
We are pleased that there is another prospective lessee or purchaser for this city -owned
property. We are sorry that things have not worked out as all of us had originally
planned. Kenai and the Peninsula are a wonderful place tb visit and in which to do
business.
(, Kin esl regards,
F.M. Stevens
FMS:skf
fllways strive t0
offer Customers the service, selection, quality and price that satisftes them best."— Fred G. Meyer, under W6-1978
P.O. Box 421213800 S.E. 22nd Avenue
Portland, OR 97242
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April 5, 1990
Mr. William J. Brighton
City Manager
CITY OF KENAI
210 Fidalgo
Kenai, AK 99611
Dear Bill:
As we discussed today, it will be necessary that we mutually cancel
the Lease between the City of Kenai and Fred Meyer, Inc. as soon
as possible.
We would appreciate execution and return of the enclosed Lease
Cancellation Agreement by Friday, April 6, 1990.
If you should have any questions, please contact me.
Sincerely,
FRED MEYER, INC.
a&o4u,
Alex J. Lelli, Jr.
Vice President
Corporate Facilities Division
Enclosure: Lease Cancellation
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Always strive to offer Customers the service, selection, quality and price that satisfies them best." —Fred G. Meyer. Founder 1886-1978
i
Date: April , 1990
Parties: The City of Kenai a home -ruled corporation IE5SOR
And: Fred Meyer, Inc., a Delaware corporation IESSEE
RECITALS
On or about July 8, 1985 Lessor and Fred Meyer Real
Estate Properties, Ltd. entered into a lease (the "Lease")
following described property in Kenai Reporting District, State of
Alaska:
Tracts B1 and B2, Cook Inlet Industrial Airpark
Subdivision, Kenai, Alaska (the "Property").
The Lease was recorded July 19, 1985, in Book 266 at Page
625, Kenai Recording District.
On or about October 17, 1986 Fred Meyer Real Estate
Properties, Ltd. assigned its interest in the above referenced
Lease to Lessee.
Pursuant to the terms of the Lease, Lessee was to
construct a retail store on the property. Lessee has elected not
to construct its retail store on the Property and now desires to
cancel the Lease. Lessor has received an offer to lease the
Property from a third party and also desires to cancel the Lease.
Now therefore, in consideration of the mutual promises
and covenants set forth in this agreement and other valuable
consideration,. receipt of which is hereby acknowledged, the parties
agree as follows:
1. Cancellation of Lease.
The Lease shall be cancelled effective the 5th day of
April, 1990 (the "Cancellation Date").
2. Final Prorations.
The annual rent and other charges payable under the Lease
shall be prorated between the parties as of the Cancellation Date.
Lessee shall be responsible for paying rent and performing all
other obligations under the Lease arising prior to the Cancellation
Date.
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Lessee will surrender possession of the Property to
Lessor on the Cancellation Date. Lessor has inspected the Property
and accepts the Property AS IS. Except as expressly provided
herein, Lesson unconditionally releases Lessee from any and all
duties, obligations and liabilities in connection with the. Lease
and the Property.
In witness whereof the parties have executed this
instrument as of the date first above written.
LESSOR: CITY OF KENAI
By:
William J. Brighton
City Manager
LESSEE: FRED MEYER, INC.
a Delaware corporate on
By: �- r4A. �
Alex J. lli, Jr.
Vice President
Corporate Facilities Division
-2-
STATE OF ALASKA )
ss.
County of )
On this day of , 1990, before me, the
undersigned, a Notary Public in and for the State of Alaska, duly
commissioned and sworn, personally appeared Sfilliam J. Brighton to
me known to be the Qi&v Manager of the CitX of Kenai the home -
ruled corporation that executed the foregoing instrument, and
acknowledged the said instrument to be the free and voluntary act
and deed of said corporation, for the uses and purposes therein
mentioned, and on oath stated that he is authorized to execute the
said instrument.
Witness my hand and official seal hereto affixed the day
and year first above written.
STATE OF OREGON
ss.
County of Multnomah
NOTARY PUBLIC in and for the State
of Alaska, residing at
My Commission Expires:
On this day of AmL.._, 1990, before me, the
undersigned, a Notary Public in and for the State of Oregon, duly
commissioned and sworn, personally appeared Alex J. Lelli. Jr. to
me known to be the Vice President of Fred Meyer. Inc.. a Delaware
corporation the corporation that executed the foregoing instrument,
and acknowledged the said instrument to be the free and voluntary
act and deed of said corporation, for the uses and purposes therein
mentioned, and on oath stated that he is authorized to execute the
said instrument.
Witness my hand and official seal hereto affixed the day
and year first above written.
NOTARY PUBLI in and for the State
of Oregon, residing a %Ct'«•Z�
My Commission Expires: 1k-%5.93.
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• C101.10266°'1E647
RS -
3800 soWtoast 22nd awn". P.C. box 42121, pwffand, oregm W242 • telephone (503)232-8844 • TLX 360415
ADDENDUM TO LEASE
DATED: July 8, 1985
BETWEEN: CITY OF KENAI,
a home -ruled municipal
corporation of Alaska
City Hall, 210 Fidalgo Street
Kenai, Alaska 99611 City
AND: FRED MEYER REAL ESTATE PROPERTIES, LTD.,
an Oregon limited partnership
PO Box 42121
Portland, Oregon 97242 Lessee
1. Rental.
1.1 Annual Rent. Lessee opts to pay rent in equal
monthly installments on the first day of each month, pursuant to
Paragraph 3 of Section C of the Lease. Rent for the first month
of the lease term in the amount of $10,227.50 (including tax)
has been paid by Lessee contemporaneously with its execution of
this Lease.
1.2 Additional Assessments and Charges. Paragraphs
5(c) and (d) of Section C are modified and amended to read as
follows:
"(c) Lessee agrees to pay all taxes
and assessments levied in the future by the
City of Kenai on the leased property, as if
Lessee was considered the legal owner of
record of the leased property.
"(d) Interest at the rate of eight
percent (8%) per annum and ten percent (10%)
penalties on any delinquent rent or other
amount owed to the City under this lease
\ which is not paid on or before the date it
becomes due and remains unpaid 14 days
thereafter. If interest and penalties are
.assessed they will be imposed retroactive to
the due date. of the payment. In the event
that payment is not received by the City in
a timely manner through no fault of Lessee,
the City will consider a waiver of the
interest and penalty."
1.3 Rent Escalation. The appraiser(s) under Para-
graph 9 of Section D will be qualified independent appraiser(s)
having knowledge with respect to real estate values for commer-
cial ground leases. Either party may initiate the appraisal
process by notice to the other party. The appraiser(s) will be
provided with a copy of the appraisal made in connection with
the determination that the current Fair Market Value of the
Property is $2,040,500 (or most recent appraisal available).
Either party may submit to the appraiser(s) additional written
information pertaining to the determination of the Fair Market
Value. Any adjustments to the Fair Market Value during the
lease term will be based on changes from the date of this Lease
in the value of the Property as undeveloped land, and will spe-
In the Northwest. it's MY-TE-FINE!
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cifically exclude increases in value based on Lessee's improve-
ments or its development of the.Property.
Except as may otherwise be approved by the parties,
the appraiser(s) will be a panel of three independent appraisers
having the qualifications stated above. Each party will select
an appraiser and the two appraisers will select the third (or,
if they cannot agree, the presiding or senior judge of the judi-
cial district court of general jurisdiction shall select the
third appraiser). The appraisal process will be initiated not
later than 90 days prior to the five-year anniversary date and
completed as soon as possible, but in any event not later than
30 days before the five-year anniversary date. Neither party is
required to submit written material to the appraisers, and there
will be no oral arguments or arbitration or court -like proceed-
ings required in order for the appraisers to review and deter-
mine any adjustment to the Fair Market Value. A copy of the
determination in writing will be given to both parties when a
majority of the appraisers agree on the Fair Market Value. The
appraisal will be made not earlier than six months prior to the
rent adjustment date. Any additional cost of the use of more
than one appraiser will be borne by Lessee.
Use, Development and Care of Property.
2.1 Use of Property. The City hereby consents and
approves that Lessee may use the Property for a commercial shop-
ping center development, and any other lawful purpose permitted
by applicable zoning, other governmental regulations and the
requirements in the underlying title instruments described in
Paragraph 12 of Section D of the Lease. Such use will consti-
tute an approved use of the Property pursuant to Paragraphs 1
and 10 of Section D and other provisions of the Lease.
2.2 Development by Lessee. Subject to Lessee's
compliance with applicable building, zoning and other govern-
mental requirements and the requirements of Paragraph 7 of —
Section D and other provisions of the Lease, the City grants
its permission to the development and improvement of the Prop-
erty as a commercial shopping center pursuant to plans to be
approved as described in Paragraph 7. Lessee may develop and
\ construct improvements on the Property in connection with such
development.
2.3 Alterations. Thereafter during the lease term,
Lessee may make such alterations and additional improvements on
the Property as Lessee may deem advisable, so long as the value
of the Property is not diminished. All alterations and improve-
ments shall be made in a good and workmanlike manner, in compli-
ance with applicable laws and ordinances and in accordance with
the standards specified in this Lease.
2.4 Inspection. Exercise of the City's right of
inspection under Paragraph 13 of Section D will be made at rea-
sonable times and upon reasonable prior notice to Lessee.
2.5 Easements by City. The provisions of Para-
graph 16 of Section D of the Lease repeat the requirements of
the Kenai Municipal Code and are designed to permit the City to
grant easements which are required in connection with the con-
struction of improvements, the provision of utilities to the
leased property, or the development of the leased property. The
parties do not anticipate that the City will be responsible for
constructing the improvements or developing the property, but
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expect that the granting of necessary easements (if any) will be
made in accordance with Lessee's development plans approved by
the City during the lease term.
2.6 Costs ruxpenses, Special Services. The parties
do not intend under Paragraph 4 of Section D of this Lease that
Lessee be required to pay the City's own costs (administrative
or legal) ineident to this Lease. Lessee will be responsible
for any recording fees for this Lease. Paragraph 22 of
Section D (Special Services) is inapplicable to this Lease and
has been deleted.
2.7 Consistent Rules•. Paragraph 29 of Section D is
amended and restated as follows:
"City reserves the right to adopt,
amend, and enforce reasonable rules and
regulations consistent with the terms of
this Lease governing the public areas and
facilities used in connection with the Prop-
erty. Except in cases of emergency, no rule
or regulation hereafter adopted or amended
by the City shall become applicable unless
Lessee has been given thirty (30) days'
notice of adoption or amendment thereof."
2.8 Right to Contest. Under Paragraph 33 of
Section D, Lessee may elect to contest in good faith any law,
ordinance, regulation or other governmental requirement by
appropriate proceedings, to long as the City's property interest
is not jeopardized.
2.9 Care of Property. Lessee's obligations with
respect to the care of the Property will be to take reasonable
steps to keep it in good condition and repair, reasonably neat,
clean and sanitary. Under Paragraphs 35 and 47 of Section D,
Lessee shall be responsible for complying with all regulations
or ordinances generally promulgated by the City for promotion of
sanitation or fire protection and to take reasonably necessary
actions to prevent the pollution of water or suppression c3
fires.
2.10 Building and Zoning Codes. Under Paragraph 46
of Section D, failure to comply with building and zoning codes
will constitute a default if Lessee fails to correct or commence
correction of the problem within a reasonable time after notice
by the City specifying that Lessee will be in default under this
Lease if the noncompliance is not corrected, subject to Lessee's
right to contest any claim of noncompliance by appropriate pro-
ceedings permitted by the Kenai Municipal Code.
2.11 Inability to Obtain Building Authorizations. In
the event Lessee is unable to obtain building permits for con-
struction of the shopping center improvements or other necessary
authorizations or actions required to permit Lessee to construct
the improvements within the time period specified in the Lease,
Lessee may cancel the Lease by written notice to the City. Rent
will be prorated and adjusted between the parties as of the date
of termination. Lessee will be solely responsible for the costs
of any surveys, applications or studies performed on the Prop-
erty and will comply with the other provisions of the Lease
concerning surrender of the Property to the City on lease
termination. This provision will be inapplicable after
commencement of construction of the buildings at the start of
the lease term.
0 E6C'X_966°'r1670
3. Liens and Liability.
3.1 Election to Contest. Lessee may withhold payment
of any lien, claim or other demand if a good faith dispute
exists as to the obligation to pay, so long as the City's prop-
erty interest is not Jeopardized. If the Property is subjected
to a lien as a result of nonpayment, Lessee shall provide the
City with security or assurances reasonably acceptable to the
City that Lessee can and will satisfy the lien before enforce-
ment against the Property, including but not limited to escrows,
bonds or deposits.
3.2 Limitation on Liability. The parties recognize
that Lessee is a limited partnership. Notwithstanding any other
provision of this Lease, the parties agree that liability of
Lessee will be limited to the assets of Lessee, no parties of
Lessee will have any personal liability for any of Lessee's
obligations, and the City (and alV creditors of Lessee) shall,
for the satisfaction of any obligations of Lessee, have recourse
solely to the assets of Lessee and not the assets of any partner
of Lessee.'
4. Insurance and Damage. Paragraph 14 of Section D is
modified and amended by this paragraph 4:
4.1 Form of Insurance. All policies shall be in a
form and with companies reasonably acceptable to the City, may
be part of blanket coverage relating to various properties oper-
ated by Lessee and may contain reasonable deductibles. Lessee
may partially self -insure to an extent which is reasonable in
relation to its financial worth and reasonably acceptable to the
City. Lessee will deliver to the City certificates of such
insurance coverage within 30 days prior to the expiration of the
term of each such policy. Each certificate of insurance shall
contain an endorsement or provision requiring not less than 30
days' written notice to Lessee prior to any change or cancella-
tion. Policies will contain or permit a waiver of subrogation
against the City, at no cost to the City.
4.2 Types of Insurance Coverage. Insurance require-
ments under the Lease shall be subject to the City's reasonable
approval. Lessee is not required to maintain cargo and aircraft
coverage or other coverage that is not reasonably applicable to
\ Lessee's use of the Property.
4.3 Waiver of Subrogation. Neither party shall be
liable to the other r for any loss or damage caused by water dam-
age or any of the risks covered by a standard fire insurance
policy with extended coverage endorsements, and there shall be
no subrogated claim by one party's insurance carrier against the
other party arising out of any such loss.
4.4 Casualty at End of Lease Term. During the last
10 years of the Lease, if fire or other casualty causes damage
to the buildings on the Property in an amount exceeding 20 per-
cent of their sound value, Lessee may elect to terminate this
Lease by giving written notice of such termination to the City
within 90 days following the date of damage, subject to the
requirements of Paragraph 18 of Section D of the Lease.
Assignment, Subletting and Financing.
5.1 Assignment or Subletting. Consent to assignment
of this Lease shall not be required in the case of assignment
occurring because of a reorganization or assignment to substan-
tially the same individuals or entities continuing the business
of Lessee or for an assignment of this Lease to Fred Meyer, Inc.
of Alaska. Lessee may sublet all of the Property to Fred Meyer,
Inc. of Alaska, and all or any portion of the Property may be
• ..:FO9 61'IE651
sublet to other responsible subtenants without the necessity of
further consent from the City.
5.2 Financing by Lessee. Under Paragraph 31 of Sec-
tion D, a leasehold mortgagees, trust deed beneficiary or secu-
rity assignee (the "lender") will not be obligated to
"cure" any insolvency default of Lessee or other default not
capable of being cured by the lender so long as the lender
otherwise takes action consistent with this Lease to foreclose
upon or obtain Lessee's leasehold interest. Upon obtaining pos-
session or acquiring Lessee's interest under this Lease, the
lender or its transferee shall promptly cure all defaults then
reasonably curable by it and comply with the provisions of Para-
graph 31.
Insurance proceeds shall be applied as required under
the construction and permanent financing with the lender.
Effective upon the commencement of the term of any new
lease executed pursuant to Paragraph 31 or upon the creation of
a direct lease between the City and a subtenant of the entire
Property as described in paragraph 5.3 below, all subleases
shall be assigned and transferred without recourse to the
successor in interest of Lessee under this Lease, and all moneys
on deposit with the City which Lessee would have been entitled
to use but for the termination of this Lease may be used by the
successor in interest of Lessee under this Lease.
5.3 Protection of Subtenants. Paragraph 36 of Sec-
tion D, concerning the protection of subtenants, is modified and
amended by this paragraph 5.3. In the event this Lease is ter-
minated for Lessee's default during the term of the sublease,
the City will recognize and permit Fred Meyer, Inc. as subtenant
of the Property to assume Lessee's position under this Lease,
and Fred Meyer, Inc. (or other subtenant of the Property) will
attorn to and recognize the City as landlord under the same
terms and provisions as contained in this Lease. In that event,
the City will be entitled to receive rent directly from Fred
Meyer, Inc. (or other subtenant) hereunder in the amounts speci-
fied in this Lease and the rights and interests of any sub-
tenants of Fred Meyer, Inc, will not be affected or disturbed.
6. Condemnation.
\ 6.1 Substantial Taking. If the entire Property is
condemned, or if any portion of the Property or access or adja-
cent roadway is taken with the result that the Property is
unsuited for continued profitable operation by Lessee, then this
Lease shall terminate as of the date upon which possession is
taken by the condemning authority. The net condemnation pro-
ceeds shall be divided between the City and Lessee in proportion
to the value of their respective interests in the buildings and
Property immediately prior to the termination of this Lease.
6.2 Partial Taking. In the event of a partial taking
by condemnation of the Property, access or roadway as described
above, and paragraph 6.1 does not apply, the condemnation pro-
ceeds shall be made available as the interests of the parties
may appear. The rent shall be abated in a just and equitable
manner during the period of restoration to the extent the Prop-
erty is not reasonably usable for Lessee's use. After restora-
tion, the rent shall be reduced for the remainder of the current
lease term by the same percentage change as the difference in
the fair rental value of the Property immediately after, com-
pared to the fair rental value immediately before, the partial
taking by condemnation.
7. Default and Entry. Notwithstanding any other provi-
sion of Section D of the Lease, the City will not exercise any
i ,U ff. 652
right to cancel or terminate the Lease, reenter the Property or
other remedial action for default without first giving Lessee at
least 30 days' written notice specifying the nature of the
default with reasonable particularity. If the default is of
such a nature that it cannot be remedied fully within the 30-day
period, this requirement shall be satisfied if Lessee begins
correction of the default within the 30-day period and there-
after proceeds with diligence and in good faith to effect the
remedy as soon as practicable.
8. Cenral Provisions.
8.1 Estoppel Certificates. Within 15 days (or such
other time as is reasonable under the circumstances) after
receipt of a written request, either party shall deliver a writ-
ten statement to the other.stating the date to which the rent
and other charges have been paid, whether the Lease is unmodi-
fied and in full force and effect, whether the other party is
in compliance with this Lease and any other matters that may
reasonably be requested.
8.2 Notices. Upon a showing by the proposed recipi-
ent of a notice that the notice was not received in a timely
manner, by no fault of such recipient, the time period for
response to the notice will be extended for a reasonable time.
8.3 Attorneys' Fees. In the event suit or action is
instituted to interpret or enforce the terms of this Lease, the
prevailing party shall be entitled to recover from the other
party such sum as the court may adjudge reasonable as attorneys'
fees at trial, hearing or on appeal of such suit or action, in
addition to all other sums provided by law.
8.4 Authorization of Lease. Each party covenants and
warrants to the other that the person(s) executing this Lease on
behalf of the party is duly authorized to execute and bind the
party under this Lease.
8.5 Consent. Whenever either party's consent of
approval is required under this Lease, such consent will not be
unreasonably withheld or delayed. Lessee acknowledges that City
Council approval may be required in some instances. No changes
to the economic terms of this Lease will be required as a con-
dition to granting consent. Any consent granted by a party
\ under this Lease shall not constitute a waiver of the require-
ment for consent in subsequent cases.
8.6 Readings. The headings to the paragraphs of this
Lease are included only for the convenience of the parties and
shall not have the effect of enlarging, diminishing or affecting
the interpretation of its terms.
8.7 Joinder in Instruments. Upon reasonable request
from time to time, the City shall join with Lessee in any
conveyance, dedication, grant of easement or license or other
instrument pertaining to the Property as shall be reasonably
necessary or convenient to provide public utility service to the
Property or in order to allow development of the Property by
Lessee. The City shall not be required to incur any cost or
expense by virtue of the provision of this paragraph.
8.8 Force Mare Delays. The time periods for
Lessee to complete construction of improvements specified in the
Lease or to perform obligations will be tolled during any period
in which Lessee is prevented or delayed in completing such con-
struction or performance as a result of labor disputes, short-
ages of materials, governmental orders, regulations, embargoes,
acts of God, unusually inclement weather, fire, flood or other
casualty or other cause beyond Lessee's reasonable control, in
6
0 •- '�.e1.' 2 :,,-.r
53
which event such construction or performance shall be completed
as soon as possible.
8.9 Conflict in Terms. Notwithstanding any provision
to the contrary contained in this Lease, in the event there is
now or hereafter a conflict between this Lease, or any part of
it, whether specifically set forth, attached, incorporated by
reference, or in any other manner made a part hereof, and any
law, ordinance, charter or regulation of the Federal, State of
Alaska or City of Kenai, said law, ordinance, charter or regula-
tion shall control.
Right to Purchase Property.
9.1 Purchase of Property. Lessee shall have the
right to purchase the Property during the lease term, in accord-
ance with the terms of this Lease and the Kenai Municipal Code.
The total purchase price for the Property shall be the Fair Mar-
ket Value of the land, excluding the value of Lessee's improve-
ments or resulting from Lessee's improvements or its development.
of the Property. The appraisal may be performed by a qualified
independent appraiser which may be selected by Lessee and
approved by the City. Lessee at its expense may cause the
appraisal to be performed prior to its making application to
purchase, and the appraised Fair Market Value arrived at in
accordance with this Lease and the Kenai Municipal Code shall be
determinative of the purchase price for the Property for a
period of six months.
9.2 Payment of Purchase Price. The total purchase
price shall be the appraised Fair Market Value determined as
described above, payable in cash at closing (or Lessee may.elect
to pay it pursuant to any deferred payment terms then offered by
the City pursuant to Municipal Code requirements). The manner
and terms of such sale to Lessee shall be in compliance with the
requirements of Kenai Municipal Code, a copy of which has been
delivered to Lessee. Lessee will be responsible for any inci-
dental costs provided for in the Kenai Municipal Code.
IN WITNESS WHEREOF, the parties have executed this
instrument as of the date first above written.
LESSOR: CITY OF KENAI
\ BY
J. 8 ^ hton
City anager
LESSEE: FRED MEYER REAL ESTATE
PROPERTIES, LTD., an
Oregon limited partnership
�5-ooa359
RECORDED-
_ h-,'. � K • l..
JUL 19 3 st PN'85
REQUESTED BY � ��✓��G
iNURESS
TIM ROGERS
I'll AI1uRh!♦
CITY OF KENA
IhA� A�AS.Aiq
:'Rl I.-
0
LEASE OF
AIRPORT LANDS
'•r l3»UU"'rEi)G�
THIS AGREEMENT, entered into this V/1 day o , 1985, by and between the CITY Of KENAI,� Hall, dalgo
Street, Kenai, Alaska 99611, a home -ruled municipal corporation
of Alaska, hereinafter called "City", and FRED MEYERX J=.; 3800
SE 22nd Street, Portland, Oregon 97242, hereinafter called
"Lessee". * FOAL ESTATE PPDPFTI IFS, LTD
That the City, in consideration uT the payments of the rents
and performance of all the covenants herein contained by the
Lessee, does hereby demise and lease to the Lessee the following
described property in the Kenai Recording District, State of
Alaska; to wit:
Tracts B-1 and B-2, Cook Inlet Industrial Air Park
Subdivision, Kenai, Alaska
A. PURPOSE: The purpose for which the Lease is issued
is:
Retail Store and Commercial Shopping Center
B. TERM: The term of this Lease is for 99 years,
commencing on the tat day of July, 1985, to the 30th day of June,
2084.
C. RENTAL PAYMENT: Subject to the terms of General
Covenant No. 9 of EhiW—Lease, rental for the above -described land
shall be payable as follows:
1. Right of entry and occupancy is authorized as of
the let day of July, 1985, and the first rent shall be computed
from such date.
2. The annual rental rate shall be 6% of the fair
market value (as set forth and defined in General Covenant No. 9)
of the demised premii122,730.00
es, and the rental on the effective date! of
this Lease shell be per year, including taxy subject
to redetermination pursuant to General Covenant No. 9, based on
an appraised value of $2,040,500.00.
3. Annual rent for the fiscal year beginning July 1
and ending June 30 shall be payable in advance on or before the
first day of July of each year. If the annual rent exceeds
$2,400, then the Lessee may opt at the time of the execution
hereof or at the beginning of each new Lease year to pay rent in
equal monthly installments, payable in advance on or before the
first day of July and on or before the first of each month
thereafter.
4. Rental for any period which is less than one (1)
year shall be prorated based on the rate of the last full year.
5. In addition to the rents specified above, subject
to General Covenant No. 9, the Lessee agrees to pay to the
appropriate parties all levies, assessments, and charges as
hereinafter provided:
(a) Taxes pertaining to the leasehold interest of the
Lessee.
(b) Sales tax now enforced or levied in the future
computed upon, rent payable in monthly installments
whether relit is paid on a monthly or yearly basis.
29�31Sr
41 Ss
t8giQ11 bg� 1 LESSOR:
oE1PX �a'� vG i�l�b� LESSEE:
`E� of
TIM ROGERS
,:,1, 41100141
CITY OF KENAI
0..•.
1 •.L414 $.4 WWII
:bi 75N
i
?66:,426
(c) Lessee agrees to pay all taxes and assessments
levied in the future by the City of Kenai, as if Lessee
was considered the legal owner of record of the leased
property.
(d) Interest at the rate of eight percent (8:) per
annum and ten percent (10%) penalties of any amount of
coney owed under this lease which is not paid on or
before the date it becomes due.
D. GENERAL COVENANTS:
1. USES: Except as provided herein, any regular
use of lands or"7acilities without the written consent of the
City is prohibited. This prohibition shall not apply to use -of
areas designated by the City for specified public uses, such as
passenger terminals, automobile parking areas, and streets.
3. ASSIGNMENT OR SUBLETTING: Lessee with City's
written consent, which will not Be unreasonably denied, may
assign for other than collateral purposes, in whole or in part,
its rights as lessee hereunder.
Any assignee of part or all of the leased premises
shall assume the duties and obligations of the lessee as to such
part or all of the leased premises. No such assignment, however,
will discharge lessee from its duties and obligations hereunder.
4. COSTS AND EXPENSES: Costs and expenses incident
to this lease, including but not limited to, recording costs
shall be paid by Lessee.
5. TREATMENT OF DEMISE: The Lessee agrees to keep
the premises clean and in good order at its own expense
suffering no strip or waste thereof, nor removing any material
therefrom, without written permission of the City. At the
expiration of the term fixed, or any sooner determination of the
Lease, the Lessee will peaceably and quietly quit and surrender
the premises to the City.
6. PAYMENT OF RENT: Checks, bank drafts, or postal
money orders shall be made payable to the City of Kenai and
delivered to the City Administration Building, Kenai, Alaska.
7. CONSTRUCTION APPROVAL AND STANDARDS: Building
construction shall be neat and presentable and compatible with
its uses and surroundings. Prior to placing of fill material
and/or construction of buildings on a leased area, the Lessee
shall submit a plan of proposed development of property to the
City Planning Commission which shall be approved in writing for
all permanent improvements.
8. DEFAULT RIGHT OF ENTRY: Should default be made
in the payment of any portion of Ehe rent or fees when due, or in
any of the covenants or conditions contained in the Lease or in
any regulations now or hereinafter in force, then in such event
the City shall by written notice give Lessee thirty (30) days to
LESSOR:
LESSEE:
TIM ROGERS
, -tr A!toR, t,
CITY Of KENAi
tl.?:.OSIL WG1
2b, )S7V
cure such default or defaults, 'after which if the default is not
cured, the City may terminate the Lease, reenter and take
possession of the premises, and remove all persons therefrom.
9. RENT ESCALATION: In the event this Lease is for a
term in excess of five 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 per-
centage rate (set in C.I. above) of fair market value at
intervals of five (5) years from the 1st 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. 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 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 leasespiLlskW@
impeiii amembal if; omit mod
10. LEASE UTILIZATION: Leased lands shall be
utilized for purposes within the scope of the application (made a
part of this Lease and attached hereto), the terms of the Lease,
the terms of the deed under which the land was granted to the
City (and any releases pertinent thereto), in conformity with the
ordinances of the City and Borough, and with Kenai Airport
Regulations, and in substantial conformity with the comprehensive
plan. Utilization or development for other than the allowed uses
shall constitute a violation of the Lease and subject the Lease
to cancellation at any time. Failure to substantially complete
the development plan of the land, consistent with the proposed
use and terms of the Lease, shall constitute grounds for
cancellation.
11. CONDITION OF PREMISES: The premises demised
herein are unimproved and are leased on an "as is, wher.S, is"
basis.
12. UNDERLYING TITLE: The interests transferred, or
conveyed by'this Lease are subject to any and all of the
covenants, terms, or conditions contained in the instruments
conveying title or other interests to the City.
13. RIGHT OF INSPECTION: City shall have the right
at all reasonable times to enter the premises, or any part
thereof, for the purposes of inspection.
14. INDEMNIFICATION AND INSURANCE: Lessee covenants
to save the City harmless from a actions, suites, liabilities,
or damages resulting from or arising out of any acts of
commission or omission by the lessee, his agents, employees,
customers, invitees, or arising from or out of the Lessee's
occupation, or use of the premises demised, or privileges
granted, and to pay all costs connected therewith.
Lessee, at the expense of Lessee, shall keep in force,
during the term of this agreement, insurance issued by
responsible insurance companies authorized to do business in
Alaska, in forms, kinds and amounts as determined and directed by
LESSOR:
LESSEE:
TIM ROGERS
iT, AITper.t r
CITY OF KENAI
t �wu.W
283 151v
• 2f,.rMn-E62$
the City for the protection of City and/or Lessee. Insurance
requirement hereunder shall be subject to the sole determination
of the City.
Said insurance may include, but need not be limited to
insurance coverages commonly known as, or similar in kind to,
public liability, products liability, property damage, cargo,
aircraft, fire, workmen's compensation, comprehensive, builders
risk, and such other insurance coverage as deemed required in the
sole determination of the City. All policies or endorsements
thereto shall in all cases where possible name City as Additional
Named Insured thereunder and shall contain a waiver of
subrogation against the City.
Upon approval by City of all insurance required, in the
forms, kinds and amounts directed to be procured, Lessee shall
deliver all policy originals or duplicate originals and
endorsements thereto to the City for incorporation within this
agreement as attachment thereto. In any event, Lessee is not to
commence to exercise any of the rights and privileges granted
under this agreement until such time as all insurance directed
and required to be furnished by Lessee is in full force and
effect.
Lessee expressly understands and agrees that any
insurance protection furnished by Lessee hereunder shall in no
way limit its responsibility to indemnify and save harmless
Lessor under the provisions of this agreement.
No policy of insurance shall be cancelled or amended
with respect to the City without thirty (30) days written notice
by registered or certified mail to City by the insurance company.
Until otherwise directed in writing by the City
Manager, Lessee shall provide certificates of insurance within
thirty (30) days of the date hereof as follows:
Comprehensive General Liability
Combined Single Limit (Bodily
Injury and Property Damage) $ 1,000,000
Workmen's Compensation - Statutory limits
'Automobile Liability
Combined Single Limit (Bodily Injury _
and Property Damage) S 1,000,000
15. COLLECTION ON UNPAID MONIES: Any or all rents,
charges, fees, or other consideration which are due and unpaid at
the expiration of voluntary or involuntary termination or
cancellation of this Lease, shall be a charge against the Lessee
and Lessee's property, real or personal, and the City shall have
such lien rights as are allowed by law, and enforcement by
distraint may be made by the City or its authorized agent.
16. EASEMENT GRANTS RESERVED: City reserves the
right to grant and control easements in, or above the land
leased. No such grant or easement will be made that will
unreasonably interfere with the Lessee's use of the land, and
LESSOR:
LESSEE:
TIM ROGERS
COY AII(NtI+IY
:ITY Of KENAI
w,. A,
0 ou.eQ n,Q -629
Lessee shall have free access and use of any and all parking and
loading rights, rights of ingress and egress now or hereafter
appertaining to the leased premises.
18. SURRENDER ON TERM! N''+TION: Lessee shall, on the
last day of the term o this Lease or upon any earlier ter-
mination of this Lease, surrender and deliver upon the premises
into the possession and use of City without fraud or delay in
good order, -condition, and repair, except for reasonable wear and
tear since the last necessary repair, replacement, restoration or
renewal, free and clear of all lettings and occupancies unless
expressly permitted by the City in writing, and free and clear of
all liens and encumbrances other then those created by and for
loans to City. Upon the end of the term of this Lease or any
earlier termination thereof, title to the buildings, improvements
and building equipment shall automatically vest in City without
requirement of any deed, conveyance, or bill of sale thereon.
However, if City should require any such document in confirmation
hereof, Lessee shall execute, acknowledge, and deliver the same
and shall pay any charge, tax, and fee asserted or imposed by any
and all governmental units in connection herewith.
19. AIRCRAFT OPERATIONS PROTECTED:
(a) There is hereby reserved to the City, its
successors and assigns, for the use and benefit of the
public, a right of flight for the passage of aircraft
in the airspace above the surface and all improvements
approved by the City of the premises herein conveyed,
together with the right to cause in said airspace such
noise as may be inherent in the operation of aircraft,
now or hereafter used for navigation of or flight in
the air, using said airspace for landing at, taking off
from, or operating on the Kenai Airport. (MhWh plans
for improvements pursuant to paragraph 7 are approved
*by the City, the City to the extent of those
improvements releases the easement here expressed).
(b) The Lessee by accepting this conveyance expressly
agrees for itself, its representatives, successors, and
assigns, that it will not erect nor permit the erection
of any structure or object, nor permit the growth of
any trees on the land conveyed hereunder, which would
be an airport obstruction within the standards
established under the Federal Aviation Administration
Regulations, Part 77, as amended. In the event the
aforesaid covenant is breached, the City reserves the
right to enter on the land conveyed hereunder and to
remove the offending structure or object, and to cut
the offending tree, all of which shall be at the
expense of the Lessee or its heirs, successors or
assigns.
20. RICHT TO ENJOYMENT AND PEACEABLE POSSESSION:
City hereby agrees and covenants that the Lessee, upon paying
rent and performing other covenants, terms, and conditions of
this Lease, shall have the right to quietly and peacefully hold,
use, occupy, and enjoy the said leased premises, except that any
LESSOR:
LESSEE:
Tim ROGERs
C-I, .110R%E,
CITY Of KENAI
ilr,Iu �1 a5ra weir
16J �SJv
0
* C 0 f 0266"'r.E 630
inconvenience caused by public works project'g in or about the
leasehold premises shall not be -construed as a denial of the
right of quiet or peaceable possession.
21. LESSEE TO PAY TAXES: Lessee shall pay all
lawful taxes and assessments which, during the term hereof may
become a lien upon or which may levied by the State, Borough,
City, or any other tax levying body, upon any taxable possessory
right which Lessee may have in or to the property by reason of
its use or occupancy or the terms of this lease, provided .
however, that nothing herein contained shall prevent Lessee from
contesting any increase in such tax or assessment through
procedures outlined in State statutes.
23. NO PARTNERSHIP OR JOINT VENTURE CREATED: It is
expressly understood that the City shall not be construed or held
to be a partner or joint venturer of Lessee in the conduct of
business on the demised premises; and it is expressly understood
and agreed that the relationship between the parties hereto is,
and shall at all times remain landlord and tenant.
24. DEFAULT BANKRUPTCY ETC.: If the Lessee shall
make any a-ssignment or he bone it of creditors or shall be
adjudged a bankrupt, or if a receiver is appointed for the
Lessee or Lessee's assets, or any interest under this Lease, and
if the appointment of the receiver is not vacated within thirty
(30) days, or if a voluntary petition is filed under Section
18(a) of the Bankruptcy Act by the Lessee, then and in any event,.
the City may, upon giving the Lessee thirty (30) days' notice,
terminate this lease.
25. NONDISCRIMINATION: The Lessee, for himself, his
heirs, personal representatives, successors in interest, and
assigns, as a part of the consideration hereof, does hereby
covenant and agree as a covenant running with the land, that:
(a) No person on the grounds of race, color, or
national origin shall be excluded from participation
'in, denied the benefits of, or be otherwise nbjected
to discrimination in the use of said facilities;
(b) In the construction of any improvements on, over,
or under such land and the furnishing of services
thereon, no person on the grounds of race, color, or
national origin shall be excluded from participation,
denied the benefits of, or otherwise be subjected to
discrimination;
(c) The Lessee shall use the premises in compliance
with all other requirements imposed by or pursuant to
Title 49, Code of Federal Regulations, Department of
Transportation, Subtitle A, Office of the Secretary,
Part 21, Nondiscrimination in Federally -assisted
Programs of the Department of Transportation -
Effectuation of Title VI of the Civil Rights Act of
1964, and as said Regulations may be amended;
(d) In the event facilities are constructed,
maintained, or otherwise operated on the said property
described in this Lease, for a purpose involving t+le
provision of similar services or benefits, the Lesice
LESSOR: �����
LESSEE:
TIM ROGERS
(,:, A]I0LNI r
ITY OF KENAI
a4i 5.�)1♦ Wtll
20 1539
Shall maintain and operate such facilities and services
in compliance with all other requirements imposed
pursusant to Title 49, Code of Federal Regulations,
Department of Transportation, Subtitle A, Office of the
Secretary, Part 21, Nondiscrimination in
Federally -assisted Programs of the Department of
Transportation - Effectuation of Title VI of the Civil
Rights Act of 1964, and as said Regulations may be
amended.
26. PARTIAL INVALIDITY: If any term, provision,
condition, or part of this Lease is declared by a court of
competent jurisdiction to be invalia or unconstitutional, the
remaining terms, provisions, conditions, or parts shall continue
in full force and effect as though such declaration was not made.
27'. MODIFICATIONS: No lease may be modified orally
or in any manner other hen by an agreement in writing, signed by
all parties in interest or their successors in interest. Any
such modification shall require Council approval.
28. WARRANTY: The City does not warrant that the
property which isle subject of this Lease is suited for the use
authorized herein, and no guarantee is given or implied that it
shall be profitable or suitable to employ the property to such
use. The City will not be held responsible for any water erosion
of the land.
29. RIGHT TO ADOPT RULES: City reserves the right
to adopt, amend, and enforce reasonable rules and regulations
governing the demised premises and the public areas and
facilities used in connection therewith. Except in cases of
emergency, no rule or regulation hereafter adopted or amended by
the City shall become applicable unless Lessee has been given
thirty (30) days notice of adoption or amendment thereof.
30. NON -LIABILITY: City shall not be liable to
Lessee for any diminution or deprivaton of possession, or of
Lessee's right hereunder, on account of the exercise of any such
right or authority as provided in this or the preceding section,
nor shall Lessee be entitled to terminate the whole or any portion
of the leasehold estate herein created, by reason of the exercise
of such rights or authority, unless the exercise thereof shall so
interfere With Lessee's use and occupancy of the leasehold estate
as to constitute a termination in whole or in part of this lease
by operation of law in accordance with the laws of the State of
Alaska and of the United States made applicable to the states.
31. FINANCING:
(a) For the purpose of interim or permanent financing
or refinancing from time to time of the improvements to
be placed upon the leased premises, and for no other
purpose, Lessee, after giving written notice thereof to
the City, may encumber by mortgage, deed of trust,
assignment or other appropriate instrument, Lessee's
interest in the leased premises and in and to this
Lease, provided such encumbrance pertains only to such
leasehold interest and does not pertain to or create
any interest in City's title to the leased premises.
If such mortgage, deed of trust, or assignment shall be
held by a bank or other established lending or
financial institution (which terms shall include an
established insurance company and qualified pension or
profit sharing trust) and such institution shall
acquire the Lessee's interest in such Lease as a result
LESSOR:
LESSCE:
TOM ROGERS
_'TV OF KFv AI
of a sale under said encumbrance pursuant to a fore-
closure or other remedy of the secured party, or
through any transfer in lieu of foreclosure, or through
settlement of or arising out of any pending or con-
templated foreclosure action, such lending institution
shall have the privilege of transferring its interest
in such Lease to a nominee or a wholly owned subsidiary
corporation with the prior consent of the City,
provided, however, such transferee shall assume all of
the covenants and conditions required to be performed
by the Lessee, whereupon such lending institution shall
be relieved of any further liability under such Lessee
from any default after such transfer. Such lending
institution or the nominee or wholly owned subsidiary
corporation to which it may have transferred such
Lease, or any other lending institution which may at
any time acquire such lease shall be relieved of -any
further liability under such lease from and after a
transfer of such lease.
(b) A leasehold mortgagee, beneficiary of a deed of
trust or security assignee, shall have and be
subrogated to any and all rights of the Lessee with
respect to the curing of any default hereunder by
Lessee.
(c) If the holder of any such mortgage, or the
beneficiary of any such deed of trust, or -the security
assignee shall give the City before any default shall
have occurred in the Lease, a written notice containing
the name and post office address of such holder, the
City shall thereafter give to such holder a copy of
each notice of default by the Lessee at the same time
as any notice of default shall be given by the City to
the Lessee, and the City will not thereafter accept any
surrender or enter into any modification of this Lease
without the prior written consent of the holder of any
first mortgage, beneficial interest under a first deed
of trust, or security assignee, in this Lease.
(d) If, by reason of any default of the Lessee, Pither
this lease or any extension thereof shall be terminated
at the election of the City prior to the stated
expiration therefor, the City will enter into a new
Lease with the leasehold mortgagee for the remainder of
the term, effective as of the date of such termination,
at the rent and additional rent, and on the terms
herein contained, subject to the following conditions:
(1) Such mortgagee, beneficiary or security
assignee, shall make written request to the City
for such new Lease within twenty (20) days after
the date of such termination and such written
request shall be accompanied by a payment to the
City of all sums then due to the City under this
Lease.
(2) Such mortgagee, beneficiary, or security
assignee, shall pay to the City, at the time of
the execution and delivery of such new lease any
and all sums due thereunder in addition to those
which would at the time of the execution and
delivery thereof be due under this Lease but for
such termination, and in addition thereto, any
LESSOR:
LESSEE:
TIM ROGERS
(11) An0✓N!T
CITY OF KENAI
o�u. ww
.II.A: i',ASkA WG11
��V VV�.rE6VV
reasonable expenses, including legal and
attorneys' fees, to which the City shall have been
subjected by reason of such default.
(3) Such mortgagee, beneficiary, or security
assignee shall, on or before the execution and
delivery of such new Lease, perform all the other
conditions required to be performed by the Lessee
to the eAtent that the Lessee shall have failed to
perform such conditions.
(e) If a lending institution or its nominee or wholly
owned subsidiary corporation shall hold a martgsge,
deed of trust, or similar security interest in and to
this Lease and shall thereafter acquire a leasehold
estate, derived either from such instruments or from
the City, and if such institution, nominee, or
corporation shall desire to assign this Lease or any
new Lease obtained from the City (other than to a
nominee or to a wholly owned subsidiary corporation, as
permitted by the above provisions) to an assignee who
will undertake to perform and observe the conditions in
such Lease required to be performed by the Lessee, the
City shall not unreasonably withhold its consent to
such assignment and assumption, and any such lending
institution, nominee, or subsidiary shall be relieved
of any further liability under such Lease from and
after such assignment. If the proposed assignor shall
assert that the City is unreasonably withholding its
consent to any such proposed assignment, such dispute
shall be resolved by arbitration.
32. AMENDMENT OF LEASE: Notwithstanding anything to
the contrary, in order to aid the Lessee in the financing of the
improvements to be situated herein, City agrees that in the event
the proposed mortgagee, beneficiary, or security assignee under
any interim or permanent loan on the security of the leasehold
interest of the Lessee and the improvements to be situated.
thereon so requires, the City will make a reasonable effort to
amend this Lease in order to satisfy such requirements upon the
express condition and understanding, however, that such variance
in language will not materially prejudice the City's right
hereunder nor be such as to alter in any way the rental
obligations of the Lessee hereunder nor its obligations to comply
with all existing laws and regulations of the City relating to
the leasing of airport lands, and to all applicable Federal
statutes, rules, and regulations, and all covenants and
conditions of the deed by which the City holds title to the land.
33. COMPLIANCE WITH LAWS:
(a) Lessee shall observe, obey, and comply with all
applicable laws, ordinancets, rules, and regulations of
the federal, state, borough, or city governments or of
any other public authorities now or hereafter in any
manner affecting the leased premises or the sidewalks,
alleys, streets, and ways adjacent thereto or any
buildings, structures, fixtures, and improvements or
the use thereof, whether or not any such laws,
ordinances and regulations which may be hereafter
enacted involve a change of policy on the part of the
governmental body enacting the same.
LESSOR:
LESSEE:
TIM ROGERS
Car AIJORNIY
ZITY Of KENAI
NAB 114P)1. 99111
tee >57v
• KOO, :.'.UEI.!rE6J4
(b) Lessee agrees to'hold City financially harmless:
(1) From the consequences of any violation of
such laws, ordinances, and/or regulations; and
(2) From all claims for damages on account of
injuries, death, or property damage resulting from
such violation.
(c) Lessee further agrees it will -not permit any
unlawful occupation, business, or trade to be condur.ted
on said premises or any use to be made thereof contrary
to any law, urdivance, or regulation as aforesaid with
respect thereto, including zoning ordinances, rules,
and regulations.
34% CARE OF PREMISES: Lessee, at its own cost.and
expense, shall keep the leased premises, all improvements which
at any time during the term of this Lease may be situated
thereon, and any and all appurtenances thereunto belonging, in
good condition and repair during the entire term of this Lease.
35. SANITATION: The Lessee shall comply with all
regulations or or �inances of the City which are promulgated for
the promotion of sanitation. The premises of the lease shall be
kept in neat, clean, and sanitary condition, and every effort
shall be made to prevent the pollution of water.
36. LESSEE'S OBLIGATION TO REMOVE LIENS: Lessee will
not permit any liens including, but not limited to, mechanics',
laborers', or materialmen's liens obtainable or available under
the then existing laws, to stand against the leased premises or
improvements for any labor or material furnished to Lessee or
claimed to have been furnished to Lessee or to the Lessee's
agents, contractors, or sublessees, in connection with work of
any character performed or claimed to have been performed on said
premises or improvements by or at the direction or sufferance of
Lessee, provided, however, Lessee shall have the right to
provide a bond as contemplated by Alaska law and contest the
validity or amount of any such lien or claimed lien. On final
determination of such lien or such claim for lien, Lessee will
immediately pay any judgement rendered with all proper rusts and
charges and shall have such lien released or judgement satisfied
at Lessee's own expense.
37. CONDEMNATION: In the event the leased premises
or any part thereof shall be condemned and taken for a public or
a quasi -public use, then upon payment of any award or
compensation arising from such condemnation, there shall be such
division of the proceeds, such abatement in rent payable during
the term or any extension of the term hereof, and such other
adjustments as the parties may agree upon as being just and
equitable under all the circumstances. If the City and Lessee
are unable to agree within thirty (30) days after such an award
has been paid into Court, upon what division, annual abatement in
rent, and other adjustments are just and equitable, the dispute
shall be determined by arbitration.
38. PROTECTION OF SUBTENANTS: To protect the
position of any subtenant(s) hereafter properly obtaining any
interests in the leasehold estate granted Lessee hereunder, City
agrees that in the event of the cancellation, termination,
expiration, or surrender of this Lease (the ground lease), the
City will accept the Subtenant, it successors and assigns, as
its lessee for a period equal to the full unelapsed portion of
the term of the sublease, including any extensions or renewals
10
LESSOR:
LESSEE:
Tim ROGERS
CITY OF KENAI
..+� •I >Sa. men
;1 J9
thereof, not exceeding the term -of this Lease, upon the same
covenants and conditions therein contained, to the extent that
said covenants and conditions are not inconsistent with any of
the terms and conditions of this Lease, provided such subtenant
shall make full and complete attornment.to the City for the
balance of the term of such sublease so as to establish direct
privity of estate and contract between the City and the subtenant
with the same force and effect as though such sublease was
originally made directly between the City and such subtenant; and
further provided such subtenant agrees to comply with all the
provisions of the ground lease and all the terms of any mortgage,
deed of trust, or security assignment to which such leasehold
estate is subject.
, 39. SUCCESSORS IN INTEREST: This Lease shall be
binding upon and shall inure to the benefit of the respective.
successors and assigns of the parties hereto, subject to such
specific limitations on assignment as are provided for herein.
40. GOVERNING LAW: This indenture of Lease shall be
governed in all respects by the laws of the State of Alaska.
41. NOTICES:
(a) Any notices required by this Lease shall be in
writing and shall be deemed to be duly given only 1f
delivered personally or mailed by certified or
registered mail in a prepaid envelope addressed to the
parties at the address set forth in the opening
paragraph of this lease unless such address has been
changed pursuant to sub -paragraph (b) hereafter, and in
that case shall to the most recent address so changed.
Any notice so mailed shall be deemed delivered on the
date it is deposited in a U.S. general or branch post
office.
The City shall also mail a copy of any notice given to
the Lessee, by registered or certified mail,. to any
leasehold lender (mortgagee, beneficiary of 'a deed of
trust, security assignee) who shall have given the City
notice of such mortgage, deed of trust, or security
assignment. -
'(b) Any such addresses may be changed by an
appropriate notice in writing to all other parties
affected provided such change of address is given to
the other parties by the means outlined in paragraph
(a) above at least fifteen (15) days prior to the
giving of the particular notice in issue.
42. RIGHTS OF MORTGAGEE OR LIENHOLDER: In the event
of cancellation or forfeiture of a lease for cause, the holder of
a properly recorded mortgage, deed of trust, conditional
assignment or collateral assignment will have the option to
acquire the Lease for the unexpired term thereof, subject to the
terms and conditions as in the original lease.
43. ENTRY AND RE-ENTRY: In the event that the Lease
should be terminated as hereinbefore provided, or by summary
proceedings or otherwise, or in the event that the demised lands
or any part thereof should be abandoned by the Lessee during said
term, the Lessor or its agents, servants, or representatives may,
immediately or any time thereafter, re-enter, and resume
possession of said lands or such part thereof, and remove all
persons and property therefrom, either by summary proceedings or
11
LESSOR:
LESSEE:
TIM ROGERS
`:':Y Of KENAI
. d.• Sw
..-a_AS[s 4GE1i
by a suitable action or proceeding at law without being liable
for any damages therefor. No re-entry by the Lessor shall be
deemed an acceptance of a surrender of the Lease.
44. RETENTION OF RENTAL: In the event that the
Lease should be terminated because of any breach by the Lessee as
herein provided, the rental payment last made by the Lessee shall
be retained by the Lessor as partial or total liquidated damages
fur said breach.
45. WRITTEN WAIVER: The receipt of rent by the Lessor
with knowledge of any breach of the Lease by the Lessee, or any
default on the part of the Lessee in observance or performance of
any of the conditions or covenants of the Lease, shall not be
deemed to be a waiver of any provisions of the Lease. No failure
on thi part of the Lessor to enforce any convenant or provision
therein contained, nor any waiver of any right thereunder by the
Lessor, unless in writing, shall discharge or invalidate Such
covenants or provisions, or affect the right of the Lessor to
enforce the same in the event of any subsequent breach or
default. The receipt, by the Lessor, of any rent or any other
sum of money after the termination, in any manner, of the term
therein demised, or after the giving by the Lessor of any notice
thereunder to effect such termination, shall not reinstate,
continue, or extend the resultant term therein demised, or
destroy, or in any manner impair the efficacy of any such notice
of termination as may have been given thereunder by the Lessor to
the Lessee prior to the receipt of any such sum of money or other
consideration, unless so agreed to in writing and signed by the
Lessor.
46. BUILDING AND ZONING, CODES: Leased lands shall
be utilized in accordance with the bui ding and zoning ordinances
and rules and regulations of said authority. Failure to do so
shall constitute a default.
47. FIRE PROTECTION: The Lessee will take all
reasonable precautions to prevent, and take all necessary action
to supress destructive or uncontrolled grass, brush, Or other
fires on leased lands, and comply with all laws, regulations, and
rules promulgated and enforced by the City for fire protection
within the area wherein the leased premises are located-
'48. PERSONAL USE OF MATERIALS: M11 coal, oil, gas,
and other minerals and all deposits o stone or gravel valuable
for extraction or utilization and all materials subject to Title
II, Division 1, Chapters 4, 5 and 6 of the Alaska Administrative
Code are excepted from the operation of a surface Lease.
Specifically, the Lessee of the surface rights shall not sell or
remove for use elsewhere any timber, stone, gravel, peat mess,
topsoil, or any other material valuable for building or
commercial purposes; provided, however, that material required
for the development of the leasehold may be used if its use is
first approved by the City Manager.
49. MUTUAL CANCELLATION: Leases in good standing
may be cancelled to whole or in part at any time upon mutual
written agreement by Lessee and the City Council.
50. UNLAWFUL USE PROHIBITED: Lessee shall not allow
the leasehold premises to be used for an unlawful purpose.
51. APPROVAL OF OTHER AUTHORITIES: The issuance by
the City of leases does not relieve the Lessee of responsibility
of obtaining licenses or permits as may be required by duly
authorized Borough, State, or Federal agencies.
12
LESSOR:
LESSEE:
0
*0266°'rE60jl
52. APPLICATION MADE PART OF LEASE: The application
for lease upon which is Lease is based, the building infor-
mation and preliminary site plan filed therewith, and the sheet
entitled "For Your Information" setting forth the conditions for
acceptance and approval of the application, all of which are
attached hereto and denominated Exhibit "A", are hereby
incorporated by reference and made a part of this Lease. Lessee
shall be required to submit a final site development plan which
shall be reviewed by the Kenai Advisory Planning h Zoning
Commission, Kenai City Council and Administration. No
construction shall commence prior to written approval by the
City, Staid _final site development plan shall address all items
in the lease application checklist as well as any other items so
specified by the City.
53. COMPLETION OF CONSTRUCTION: The Lessee herebv
agrees to complete construction of improvements described in the
lease application attached hereto and specifically incorporated
her,:in within the time frame specified in the lease application, I
to wit: Phase I: Beginning Date - July 1, 1986, Completion Date
- June 30, 1987.
Lessee ur her agrees
that if construction is not completed by such date a default
shall exist and the City may proceed to reenter and terminate the
lease as provided by General Covenant No. B.
THE ATTACHED ,ADDENDUM IS INCORPORATED HEREIN BY THIS REFERENCE
IN WITNESS WHEREOF, the parties hereto have hereunto set
their hands, the day and year stated in the individual
acknowledgments below.
LESSOR:
LESSEE:
(If Lessee is a Corporation)
ATTEST:
Name
Title
TIM ROGERS
L.1. AIIJRNlY
CITY OF KENAI
Y �� b:�• Sw
IAA, •1 LS.L VG[11
JB? 'f7Y
13
CITY OF KENAI
By:
114jam J. righton
City Manage
REAL ESTATE PROPE1Q'IE4
FRED MEYERN XXK. -100,
By:
President
it re
LESSOR: LIAM
LESSEE:
TIM ROGERS
01P.IIORNA'
CITY OF KENAI
so. !s
. l.ci /,1I.NA wC-1
2"1 7SJv
o.rE6QQ
3
STATE OF ALASKA )
)as
THIRD JUDICIAL DISTRICT )
THIS IS TO CERTIFY that on this of ,
1985, Name: , Titr— of
FRED MEYER,INC., eing�dauthorized
wn to me or having produced
satisfactory evidence oion, appeared before me and
acknowledged the voluntexecution of the
foregoing instrument id corporation.
Notary Public for Alas;<a
My Commission Expires:
STATE OF ALASKA )
)as
THIRD JUDICIAL DISTRICT )
THIS IS TO CERTIFY that on this <,IA day
1985, WILLIAM J. BRIGHTON, City Manager of the Ci o� Kensi,
Alaska, being personally known to me or having produced `
satisfactory evidence of identification, appeared before me and
acknowledged the voluntary and authorized execution ofl 1,,,e
foregoing instrument on behalf o/said City.
Notary Public for Alaska
My Commission Expire§i' %,.st-�
Approved as to lease form by City Attorney
tia s
Approved by Finance Director
Initials
Approved by City Manager _
ni ials
LEASE APPROVED by City Council this >q&-7( day of
1985.
ity Clerk
14
LESSOR:
LESSEE:
STATE OF OREGON
) ss.
County of Multnomah )
The foregoing instrument was acknowledged before me this
3rd day of July, 1985, by ORAN B. ROBERTSON, the President of
FRED MEYER ESTATE PROPERTIES, LTD., an Oregon limited partnership,
on behalf of the limited partnership.
David W. Green
Notary Public for Oregon
My commission expires: March 2, 1989
Residing at: Beaverton, Oregon
i
adert,
Nrlikink the
3900 U. S. Bancorp Tower
Portland, Oregon 97204
(503) 222-1341
TWX 910-464-8034
Mr. Tim Rogers July 2, 1985
City of Kenai, Alaska
To Whom It May Concern:
As requested by Mr. Steve Gale of Fred Meyer, Inc., please be
advised that:
1. We have examined the financial statements of Frea Meyer
Real Estate Properties, Ltd. (a limited partnership) for
the year ended December 31, 1984 and have rendered"`3ur
opinion thereon dated February 22, 1985.
2. We have not examined any financial statements of Frea
Meyer Real Estate Properties Ltd. for any date or period
subsequent to December 31, 1984.
Based on the above, we report to you that the totals of the
assets and of the partnership capital accounts as reflected
in the audited balance sheet at December 31, 1984 are in
excess of $300,000,000 and $100,000,000, respectively, at
that date.
Yours truly,
!, Fin W-- A-- �W'- ', 'An/m,
RAI M�0!1' I - � I - , -
FOR CZTY USV ONLY
,
CITY OF KENAI `
P.O. BOX 580 - KENAI, ALASKA - PHONE 283-753
LEASE APPLICATION
Date Received' 5' :7- tk5'
Tim 9
5
}
pe-�K 6P,rE641
Name of Applicant Fred Meyer Real Estate Properties, Ltd.
Address 3800 SE 22nd St. Portland, Oregon 97242
Business Name and Address Same
Kenai Peninsula Borough Sales Tax No. _None..
( if applicable)
State Business License No. Fred Meyer of Alaska, Inc. #56805
(if applicable)
Telephone 503-232-8844
Lot Description Tracts B1 and B2, C11AP #4
Desired Length of Lease 99 years
Property to be used for Retail Store and Commercial Shopping
Description of Developments (type, construction, size, etc.)
110/125,000 so. ft. Retail Store (Phase 1)
with Retail -and- Service Tenants (Phase II)
Attach development plan to scale (1" = 501), showing all buildings
planned.
Time Schedule for Proposed Development:
Beginning Date Estimate, Summer, '86 (Phase 1)
Proposed Completion Date Summer,'87 (pbase 1)
Estimated Value of Construction $ 8,500,0
Date: 985
-�---� r-
Date:
Signed:
Sign
1
+ t r ��- V
nn 266A.rE6/ ?
CITY OF KENAI
CHECK LIST FOR SITE PLANS
ALL ITEMS MUST BE COMPLETED BEFORE APPLICATION CAN BE ACCEPTED
Drawings should be drawn to scale 1"= 50 ft.*, and must show
layout of the lot applied for and the location of all improve-
ments proposed.
Drawings must show:
1. Existing buildings NA
2. Proposed buildings X
3. Parking facilities
(how many spaces and where located) 3.5-4 cars/thousand
4. Site improvements sq. ft.
a. Areas to be cleared and method of disposal
b. Proposed gravel or paved areas
C. Landscaping plan (retention of natural
vegetation and/or proposed planting areas) -
5. Building set backs X
6. Drainage plan and method of snow removal X
7. Circulation plan (all entrances, exits and
on -site access) X
8. Location of sign(s) - sign permit required X
9. Fencing NA
10. Curb cuts (where applicable) X
11. Building height 24!26I
12. Buildings on or near the airport on airport
lands must complete FAA Form 7460-1 To be completed
*This does not have to be drawn by an architect or engineer.
2
L643
BUILDING INFORMATION
On this sheet submit a drawing of building planned, drawn to scale.
Scale: 1" = ft.
Construction Materials (wood frame, steel building, etc.)
Concrete, Wood or Steel Roof Structure, Slab on trade
THIS DRAWING SHOULD BE AS COMPLETE AS POSSIBLE
Note: If a prepared drawing is submitted, attach to this
application and disregard this page, filling in construction materials
only.
3
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Jvzn
ONE STOP SHOPPING CENTERS
3800 southeast 22nd avenue, p.o. box 42121, portland, oregon 97242 * telephone (503)232-8844 • TLX 360415
May 1, 1985
Mr. Bill Brighton
City Manager
City of Kenai
P.O. Box $80
Kenai, AK 99611
Dear Bill:
It has come to my attention that the Kenai City Council is concerned with three
issues regarding our recent application to lease Municipal owned property for
the construction of a PLED MEYER ONE -STOP SHOPPING CENTER.
These issues, to my understanding, are (1) snow removal, (2) curb cuts, and-
(3) landscaping.
The following comments therefore are outlined herein for the Council's review
and consideration.
(1) SNOW REMOVAL.
In our existing centers in Anchorage, Fairbanks, and Juneau, the snow is stock
piled on a daily basis or as needed, in designated areas within our property lines.
As yet, we have not defined where these areas will be in Kenai; however, we
will meet all code requirements and requests as directed by the Municipality.
(2) CURB CUTS.
Until such time as a more definate site plan is developed, it is impossible to second
guess where curb cuts shall be placed. Once a site plan is established we intend
to meet with the Department of Transportation and the City of Kenai to coordinate
curb cuts. We recognize that this will involve two angencies; the State and the
City of Kenai. As permits are required for curb cuts, this should not be of concern
because you have full control in approving curb cuts. Traffic is our major concern
and we realize it is in everybody's best interest to come up with a plan that is
best suited to the community.
(3) LANDSCAPING.
Our firm has always taken pride in the aesthetics of our centers. Landscaping
is an important aspect in our developments. Because of a lack of a more permanent
site plan, it is impossible to come up with the same at this early date. Company
policy is to preserve and maintain as much of the natural native trees, shrubs,
and vegetation as possible, as well as creating additional landscape areas. We
would like to incorporate plans with your local Garden Club for the removal and
disposition of the surplus trees, shrubs, and the native plants in the same manner
as we did in Juneau. We would like to meet with staff and work out our final
landscape plans at such time as we develop a more definate site plan.
In the Nnrfhweet i►'c AMTF-FINFi
ONE STOP SHOPPING . CENTERS
3800 southeast 22nd avenue, p.o. box 42121, portiand, oregon 97242 • telephone (503)232-8844 e TLX 360415
We are as concerned on these and other issues, as the City of Kenai is. This proposed
development will represent a capital investment of up to $20 million dollars for
our firm. The first phase alone is estimated to be approximately million dollars.
We feel that we will be a part of the community and are looking forward to that
opportunity. As the community* will be our future customers, it is act our best interest
to address their concerns and gain their support. We will do more than oast share at no
expense or burden to the City of Kenai and the surrounding community.
Cordially yours,
Roy M. Whitman
Vice President -�
Director of Store Development
and Real Estate
cc: Stephen Gale
Steve Turlis
RMW:do
---------- ---- - --- --- ---- - In the Northwest. it's MY-TE-FINE! --- ----- --------- ---
THIS AGREEMENT, entered into this day of ,
1990, by and between the CITY OF KENAI, C ty Hall, 210 Fidalgo
Avenue, Kenai, Alaska, 99611, a home -ruled municipal corporation
of Alaska, hereinafter called 'ty," and CARR-GOTTSTLIN
PROPERTIES, INC., 6401 "A" St chorage,. AK, 99501,
hereinafter called "Lessee."
That the City, in consideration of the payments of the rents
and performance of all the covenants herein contained by the
Lessee, does hereby demise and lease to the Lessee the following
described property in the Kenai Recording District, State of
Alaska; to wit:
Tracts B-1 and B-2, Cook Inlet Industrial Air Park
Subdivision, Kenai, Alaska.
A. LEASE COMT1W=T UPON APPLICATION MW APPROVAL: This
lease shall be contingent upon the following:
1. The filing of a lease application pursuant to
Kenai Municipal Code Chapter 21.10 by May 1, 1990;
2. The approval of said lease application by the Kenai
Planning & Zoning Commission and the City Council of the City of
Kenai, pursuant to KMC 21.10 by August 1, 1990.
B. PURPOSE: The purpose for which the lease is issued is:
Retail Store and Commercial Shopping Center
C. T
commencing on the
day of _
The
term o this Lease is for 99 years,
day of ^-� , 1990 to the
2089. T "
�T
D. RIWAL PAYI( Subject to the terms of General
Covenant No. 8 of this Lease, rental for the above -described land
shall be payable as follows:
1. Right of entry and occupancy is authorized as of
the first day of May, 1990, and the first rent shall be computed
from such date.
2. The fair market value shall be determined by an
appraisal performed by a qualified MAI appraiser, to be selected
by the City. The appraisal shall be performed within thirty (30)
days from the date of this lease agreement.
1 - LEASE OF AIRPORT LANDS LESSOR:
LESSEE:
The annual rental rate shall be six percent (6%) of the
fair market value (as set forth in General Covenant No. 8).
3. Annual rent for the fiscal year beginning July 1
and ending June 30 shall be payable in advance on or before the
first day of July of each year. If the annual rent exceeds
$2,400, then the Lessee may opt at the time of the execution
hereof or at the beginning of eac .new Lease year to pay rent in
equal monthly installments, pays adv ce on or before the
first day of July and on or 17irst of each month
thereafter.
4. Rental for any period which is less than one (1)
year shall be prorated based on the rate of the last full year.
5. In addition to the rents specified above, subject
to General Covenant No. 8, the Lessee agrees to pay to the
appropriate parties all levies, assessments, and charges as
hereinafter provided:
(a) Taxes pertaining to the leasehold interest of the
Lessee.
(b) Sales tax now enforced or levied in the future
computed upon rent payable in monthly installments whether
rent is paid on a monthly or yearly basis.
(c) Lessee agrees to pay all taxes and assessments
levied in the future by the City of Kenai, as if Lessee was
considered the legal owner of record of the leased property.
(d) Interest at the rate of eight percent (8%) per
annum and ten percent (10%) penalties of any amount of money
owed under this lease which is not paid on or before the date
it becomes due.
E. GENERAL COVEN MS: )DRA"
1. S: Except as provided herein, any regular use
of lands or facilities without the written consent of the City is
prohibited. This prohibition shall not apply to use of areas
designated by the City for specified public uses, such as
passenger terminals, automobile parking areas, and streets.
2. ASSIGNMENT OR SUBLETTING: Lessee with City's
written consent, which will not be unreasonably denied, may assign
for other than collateral purposes, in whole or in part, its
rights as Lessee hereunder.
Any assignee of part or all of the leased premises shall
assume the duties and obligations of the Lessee as to such part or
2 - LEASE OF AIRPORT LANDS LESSOR:
LESSEE:
all of the leased premises. No such assignment, however, will
discharge Lessee from its duties and obligations hereunder.
3. COSTS AND EXPENSES: Costs and expenses incident to
this Lease, including but not limited to, recording costs shall be
paid by Lessee.
4. TREATMENT OF DEMISE: The Lessee agrees to keep the
premises clean and in good order at its own expense,. suf f ering no
strip or waste thereof, nor r material therefrom,
without written permission of the ithe expiration of the
term fixed, or any sooner determinat ono {the Lease, the Lessee
will peaceably and quietly quit and surrender the premises to the
City.
5. PAYMENT OF RENT: Checks, bank drafts, or postal
money orders shall be made payable to the City of Kenai and
delivered to the City Administration Building, Kenai, Alaska.
6. CONSTRUCTION APPROVAL AND STANDARDS: Building
construction shall be neat and presentable and compatible with its
uses and surroundings. Prior to placing of fill material and/or
construction of buildings on a leased area, the Lessee shall
submit a plan of proposed development of property to the City
Planning and Zoning Commission which shall be approved in writing
for all permanent improvements.
7. DEFAULT RIGHT OF ENTRY: Should default be made in
the payment of any portion of the rent or fees when due, or in any
of the covenants or conditions contained in the Lease or in any
regulations now or hereinafter in force, then in such event the
City shall by written notice give Lessee thirty (30) days to cure
such default or defaults, after which if the default is not cured,
the City may terminate the Lease, re-enter and take possession of
the premises, and remove all persons therefrom.
8. RENT ESCALATION: , t this Lease is for a
term in excess of five (5) year'1s, unt 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 D.2 above) of fair market value at
intervals of five (5) years from the first 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. 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 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.
3 - LEASE OF AIRPORT LANDS LESSOR:
LESSEE:
9. LEASE UTILIZATION: Leased lands shall be utilized
for purposes within the scope of the application, the terms of the
Lease, the terms of the deed under which the land was granted to
the City (and any releases pertinent thereto), in conformity with
the ordinances of the City and Borough, and with Kenai Airport
Regulations, and in substantial conformity with the comprehensive
plan. Utilization or devela m for other than the allowed uses
shall constitute a vio a Lease and subject to the Lease
to cancellation at an ilure to substantially complete
the development plan of the land, consistent with the proposed use
and terms of the Lease, shall constitute grounds for cancellation.
10. CO,NDITION OF PREMISES: The premises demised herein
is leased on an "as is, where is" basis.
11. UNDERLYING TITLE: The interests transferred, or
conveyed by this Lease are subject to any and all of the
covenants, terms, or conditions contained in the instruments
conveying title or other interests to the City.
12. RIGHT OF INSPECTION; City shall have the right at
all reasonable times to enter the premises, or any part thereof,
for the purposes of inspection.
13. INDEKNIFICATION AND ;INSURANCE: Lessee covenants to
save the City harmless from all actions, suits, liabilities, or
damages resulting from or arising out of any acts of commission or
omission by the Lessee, his agents, employees, customers,
invitees, or arising from or out of the Lessee's occupation, or
use of the premises demised, or privileges granted, and to pay all
costs connected therewith.
Lessee, at the expense of Lessee, shall keep in force,
during the term of this agreement, insurance issued by responsible
insurance companies authorized to do business in Alaska, in forms,
kinds and amounts as determined and d' ected by the City for the
protection of City and/or Lessee nce requirement hereunder
shall be subject to the sole eria on of the City.
Li
Said insurance may include, but need not be limited to
insurance coverages commonly known as, or similar in kind to,
public liability, products liability, property damage, cargo,
aircraft, fire, workmen's compensation, comprehensive, builders
risk, and such other insurance coverage as deemed required in the
sole determination of the City. All policies or endorsements
thereto shall in all cases where possible, name City as Additional
Named Insured thereunder and shall contain a waiver of subrogation
against the City.
Upon approval by City of all insurance required, in the
forms, kinds and amounts directed to be procured, Lessee shall
4 - LEASE OF AIRPORT LANDS LESSOR:
LESSEE:
deliver all policy originals or duplicate originals and
endorsements thereto to the City for incorporation within this
agreement as attachments thereto. In any event, Lessee is not to
commence to exercise any of the rights and privileges granted
under this agreement until such time as all insurance directed and
required to be furnished by Lessee is in full force and effect.
Lessee expressly understands and agrees that any
insurance protection furnished by Lessee hereunder shall in no way
limit its responsibility to indemnify and save harmless Lessor
under the provisions of this agreement.
No policy of insurance shall be canceled or amended with
respect to the City without 30) days written notice by
registered or certified mailA4 the insurance company.
Until otherwise directed in writing by the City Manager,
Lessee shall provide certificates of insurance within thirty (30)
days of the date hereof as follows:
Comprehensive General Liability
Combined Single Limit (Bodily
Injury and Property Damage) $500,040
Workmen's Compensation Statutory Limits
a. If the presence of hazardous material on the
premises caused or permitted by Lessee results in contamination of
the premises, or if contamination of the premises by hazardous
material otherwise occurs for which Lessee is legally liable to
City for damage resulting therefrom, the Lessee shall indemnify,
defend, and hold City harmless from any and all claims, judgments,
damages, penalties, fines, costs, liabilities, or losses
(including, without limitation, diminution in value of the
premises, damages for the loss or restriction on use of rentable
or usable space or of any amenity of the premises, damages arising
from any adverse impact on marketing of space, and sums paid in
settlement of claims, attorneys' fees, consultant fees, and expert
fees) which arise during or after.%?ttibp lease term as a result of
such contamination. This indemn'ip of City by Lessee
includes, without limitation, costs.iihcui, d in connection with
any investigation of site conditions or any clean-up, remedial,
removal, or restoration work required by any subdivision because
of hazardous material present in the soil or groundwater on or
under the premises. Without limiting the foregoing, if the
presence of any hazardous material on the premises caused or
permitted by Lessee results in any contamination of the premises,
Lessee shall promptly take all actions at its sole expense as are
necessary to return the premises to the condition existing prior
5 - LEASE OF AIRPORT LANDS LESSOR:
LESSEE:
to the introduction of any such hazardous material to the
premises; provided that City's approval of such actions shall
first be obtained, which approval shall not be unreasonably
withheld so long as such actions would not potential have any
material adverse long-term or short-term effect.on the premises.
b. The property which is the subject of this lease has
had fill material placed upon it during site preparation by one or
both of the previous tenants, Fred Meyer Property, Ltd. and Fred
Meyer, Inc. Since the April 6, 1990 rescission of that lease,
recorded in Book 266, Page 625 of the Kenai Recording District,
Kenai, AK, and assigned to Fred Meyer, Inc. at Book 299, Page 771,
Kenai Recording District, Kenai, ARmaka, the City of Kenai has not
had sufficient time to have pon the property an
environmental assessment to detether there is any
hazardous material on the property. The ssee hereby agrees and
covenants to take the property "AS IS," specifically with regard
to any hazardous material which may be contained on the property.
c . As used herein, the term "hazardous material" means
any hazardous or toxic substance, material, or waste which is or
becomes regulated by any local governmental authority, the State
of Alaska, or the United States Government.
IS. COLLECTION ON UNPAID MONIES: Any or all
rents, charges, fees, or other consideration which are due and
unpaid at the expiration of voluntary or involuntary termination
or cancellation of this Lease, shall be a charge against the
Lessee and Lessee's property, real or personal, and the City shall
have such lien rights as are allowed by law, and enforcement by
distraint may be made by the City or its authorized agent.
16. BASEMENT GRANTS RESERVED: City reserves the right
to grant and control easements in, or above the land leased. No
such grant or easement will be made that will unreasonably
interfere with the Lessee's use of the land, and Lessee shall have
free access and use of any and all parking and loading rights,
rights of ingress and egress now or hereafter appertaining to the
leased premises.
17. SURRENDIM ON TERMINATION: ;Lessee shall, on the
last day of the term of this Lease or upon , y, e4itlavir termination
of this Lease, surrender and deliver upon the°tpfeer�ises into the
possession and use of City without fraud or delayjin good order,
condition, and repair, except for reasonable wear and tear since
the last necessary repair, replacement, restoration or renewal,
free and clear of all lettings and occupancies unless expressly
permitted by the City in writing, and free and clear of all liens
and encumbrances other than those created by and for loans to
City. Upon the end of the term of this Lease or any earlier
termination thereof, title to the buildings, improvements and
6 - LEASE OF AIRPORT LANDS LESSOR:
LESSEE:
building equipment shall automatically vest in City without
requirement of any deed, conveyance, or bill of sale thereon.
However, if City should require any such document in confirmation
hereof, Lessee shall execute, acknowledge, and deliver the same
and shall pay any charge, tax, and fee asserted or imposed by any
and all governmental units in connection herewith.
(a) There is hereby reserved to the City, its
successors and assigns, for the use and benefit of the
public, a right of flight for the passage of aircraft in the
airspace above the surface and all improvements approved by
the City of the premises herein conveyed, together with the
right to cause in said airspac _h noise as may be inherent
in the operation of aircraf r, hereafter used for
navigation of or flight in the , g said airspace for
landing at, taking off from, or ope ating on the Kenai
Airport. (When plans for improvements pursuant to Paragraph
6 are approved by the City, the City to the extent of those
improvements releases the easement here expressed.)
(b) The Lessee by accepting this conveyance expressly
agrees for itself, its representatives, successors, and
assigns, that it will not erect nor permit the erection of
any structure or object, nor permit the growth of any trees
on the land conveyed hereunder, which would be an airport
obstruction within the standards established under the
Federal Aviation Administration Regulations, Part 77, as
amended. In the event the aforesaid covenant is breached,
the City reserves the right to enter on the land conveyed
hereunder and to remove the offending structure or object,
and to cut the offending tree, all of which shall be at the
expense of the Lessee or its heirs, successors or assigns.
19. RIGBT TO BBJOYNRNT An PEAGRABLE PosBRSSION: City
hereby agrees and covenants that the Lessee, upon paying rent and
performing other covenants, terms, and conditions of this Lease,
shall have the right to quietly and peacefully hold, use, occupy,
and enjoy the said leased premises, except that any inconvenience
caused by public works projects in or abplthe.-leasehold premises
shall not be construed as a denial 'd?�rgjht of quiet or
peaceable possession.
20. LESSER TO PAY TARES: Lessee shall pay all lawful
taxes and assessments which, during the term hereof may become a
lien upon or which may be levied by the State, Borough, City, or
any other tax levying body, upon any taxable possessory right
which Lessee may have in or to the property by reason of its use
or occupancy or the terms of this Lease, provided however, that
7 - LEASE OF AIRPORT LANDS LESSOR:
LESSEE:
nothing herein contained shall prevent Lessee from contesting any
increase in such tax or assessment through procedures outlined in
State statutes.
21. NO PARTNERBRIP OR JOIN VENTURE CREATED: It is
expressly understood that the City shall not be construed or held
to e a partner or joint venturer of Lessee in the conduct of
business on the demised premises; and it is expressly understood
and agreed that the relationship between the parties hereto is,
and shall at all times remain landlord and tenant.
22. DEFAULT BANAAUPTCY. ETC.: a Lessee shall make
any assignment for the benefit of credito be adjudged
a bankrupt, or if a receiver is appoin e e Lessee or
Lessee's assets, or any interest under this Lease, and if the
appointment of the receiver is not vacated within thirty (30)
days, or if a voluntary petition is filed under Section 18(a) of
the Bankruptcy Act by the Lessee, then and in any event, the City
may, upon giving the Lessee thirty (30) days' notice, terminate
this Lease.
23. NONDIBCRININATION: The Lessee, for himself, his
heirs, personal representatives, successors in interest, and
assigns, as a part of the consideration hereof, does hereby
covenant and agree as a covenant running with the land, that:
(a) No person on the grounds of race, color, or
national origin shall be excluded from participation in,
denied the benefits of, or be otherwise subjected to
discrimination in the use of said facilities;
(b) In the construction of any improvements on, over,
or under such land and the furnishing of services thereon, no
person on the grounds of race, color, or national origin
shall be excluded from participation, denied the benefits of,
or otherwise be subjected to discrimination;
(c) The Lessee shall use the premises in compliance
with all other requirements imposed by pr pursuant to Title
49, Code of Federal Regulations,*) .Depaftment of
Transportation, Subtitle A, Office of the. Sedrgt ry, Part 21,
Nondiscrimination in Federally -assisted Proq ems of the
Department of Transportation - Effectuation of Title VI of
the Civil Rights Act of 1964, and as said Regulations may be
amended;
(d) In the event facilities are constructed,
maintained, or otherwise operated on the said property
described in this Lease, for a purpose involving the
provision of similar services or benefits, the Lessee shall
maintain and operate such facilities and services in
8 - LEASE OF AIRPORT LANDS LESSOR:
LESSEE:
compliance with all other requirements imposed pursuant to
Title 49, Code of Federal Regulations, Department of
Transportation, Subtitle A, Office of the Secretary, Part 21,
Nondiscrimination in Federally -assisted Programs of the
Department of Transportation - Effectuation of Title VI of
the Civil Rights Act of 1964, and as said Regulations may be
amended.
24. PARTIAL IltMIDITY: If any term, provision,
condition, or part of this Lease is declared by a court of
competent jurisdiction to be invalid or unconstitutional, the
remaining terms, provisions, conditions, ax narts shall continue
in full force and effect as though such d on was not made.
25. NODIB,ICATIONS: No lease may be fied orally or
in any manner other than by an agreement in writing, signed by all
parties in interest or their successors in interest. Any such
modification shall require Council approval.
26. WARR�Y: The City does not warrant that the
property which is the subject of this Lease is suited for the use
authorized herein, and no guarantee is given or implied that it
shall be profitable or suitable to employ the property —to such
use. The City will not be held responsible for any water erosion
of the land.
27. RIGHT TO ADOPT RULES: City reserves the right to
adopt, amend, and enforce reasonable rules and regulations
governing the demised premises and the public areas and facilities
used in connection therewith. Except in cases of emergency, no
rule or regulation hereafter adopted or amended by the City shall
become applicable unless Lessee has been given thirty (30) days
notice of adoption or amendment thereof.
28. NON -LIABILITY: City shall not be liable to Lessee
for any diminution or deprivation of possession, or of Lessee's
right hereunder, on account of the exercise of any such right or
authority as provided in this or the preceding section, nor shall
Lessee be entitled to terminate the whole cft,�,,ny portion of the
leasehold estate herein created, by reason of, he.Aexer ise of such
rights or authority, unless the exercise thereO shall so
interfere with Lessee's use and occupancy of the lea'6ehold estate
as to constitute a termination in whole or in part of this Lease
by operation of law in accordance with the laws of the State of
Alaska and of the United States made applicable to the states.
29. FINANCING:
(a) For the purpose of interim or permanent financing
or refinancing from time to time of the improvements to be
placed upon the leased premises, and for no other purpose,
9 - LEASE OF AIRPORT LANDS LESSOR:
LESSEE:
Lessee, after giving written notice thereof to the City, may
encumber by mortgage, deed of trust, assignment or other
appropriate instrument, Lessee's interest in the leased
premises and in and to this Lease, provided such encumbrance
pertains only to such leasehold interest and does not pertain
to or create any interest in City's title to the leased
premises. If such mortgage, deed of trust, or assignment
shall be held by a bank or other established lending or
financial institution (which terms shall include an
established insurance company and qua 'ed pension or profit
sharing trust) and such in�stitu 411 acquire the
Lessee's interest in such Lease as a a sale under
said encumbrance pursuant to a foreclosure ether remedy of
the secured party, or through any transfer in lieu of
foreclosure, or through settlement of or arising out of any
pending or contemplated foreclosure action, such lending
institution shall have the privilege of transferring its
interest in such Lease to a nominee or a wholly -owned
subsidiary corporation with the prior consent of the City,
provided, however, such transferee shall assume all of the
covenants and conditions required to be performed by the
Lessee, whereupon such lending institution shall be relieved
of any further liability under such Lessee from any-default
such transfer. Such lending institution or the nominee
or wholly -owned subsidiary corporation to which it may have
transferred such Lease, or any other lending institution
which may be any time acquire such Lease shall be relieved of
any further liability under such Lease from and after a
transfer of such Lease.
(b) A leasehold mortgagee, beneficiary of a deed of
trust or security assignee, shall have and be subrogated to
any and all rights of the Lessee with respect to the curing
of any default hereunder by Lessee.
(c) If the holder of any such mortgage, or the
beneficiary of any such deed of trust, or the security
assignee shall give the City before any default shall have
occurred in the Lease, a written notice containing the name
and post office address of such holder, the City shall,
thereafter given to such holder a copy, of each notice of
default by the Lessee at the same=time: a any notice of
default shall be given by the City to atWe`4'bykssee, and the
City will not thereafter accept any surrender or enter into
any modification of this Lease without the prior written
consent of the holder of any first mortgage, beneficial
interest under a first deed of trust, or security assignee,
in this Lease.
(d) If, by reason of any default of the Lessee, either
this Lease or any extension thereof shall be terminated at
10 - LEASE OF AIRPORT LANDS LESSOR:
LESSEE:
the election of the City prior to the stated expiration
therefor, the City will enter into a new Lease with the
leasehold mortgagee for the remainder of the term, effective
as of the date of such termination, at the rent and
additional rent, and on the terms herein contained, subject
to the following conditions:
(1) Such mortgagee, beneficiary or security
assignee, shall make written r st to the City for
such new Lease within twenty (2 ter the date of
such termination and such writ st shall be
accompanied by a payment to the City the
sums then
due to the City under this Lease.
(2) Such mortgagee, beneficiary, or security
assignee, shall pay to the City, at the time of the
execution and delivery of such new Lease any and all
sums due thereunder in addition to those which would at
the time of the execution and delivery thereof be due
under this Lease but for such termination, and in
addition thereto, any reasonable expenses, including
legal and attorneys' fees, to which the City shall have
been subjected by reason of such default.
(3) Such mortgagee, beneficiary, or security
assignee shall, on or before the execution and delivery
of such new Lease, perform all the other conditions
required to be performed by the Lessee to the extent
that the Lessee shall have failed to perform such
conditions.
(e) If a lending institution or its nominee or wholly
owned subsidiary corporation shall hold a mortgage, deed of
trust, or similar security interest in and to this Lease and
shall thereafter acquire a leasehold estate, derived either
from such instruments or from the City, and if such
institution, nominee, or corporation shall desire to assign
this Lease or any new Lease obtained from the City (other
than to a nominee or to a wholly -owned oft
idiary corporation
as permitted by the above provisions) two an. nee who will
undertake to perform and observe the con(l nn such Lease
required to be performed by the Lessee, the dity shall not
unreasonably withhold its consent to such assignment and
assumption, and any such lending institution, nominee, or
subsidiary shall be relieved of any further liability under
such Lease from and after such assignment. If the proposed
assignor shall assert that the City is unreasonably
withholding its consent to any such proposed assignment, such
dispute shall be resolved by arbitration.
11 - LEASE OF AIRPORT LANDS LESSOR:
LESSEE:
30. ANEEiMENT OF LEASE: Notwithstanding anything to
the contrary, in order to aid the Lessee in the financing of the
improvements to be situated herein, City agrees that in the event
the proposed mortgagee, beneficiary, or security assignee under
any interim or permanent loan on the security of the leasehold
interest of the Lessee and the improvements to be situated thereon
so requires, the City will make a reasonable effort to amend this
Lease in order to satisfy such requirem upon the express
condition and understanding, however, ch variance in
language will not materially prejudice the C fright hereunder
nor be such as to alter in any way the rental &tions of the
Lessee hereunder nor its obligations to comply wig, all existing
laws and regulations of the City relating to the leasing of
airport lands, and to all applicable Federal statutes, rules, and
regulations, and all covenants and conditions of the deed by which
the City holds title to the land.
31. COMPLIANCE WITH LAWS:
(a) Lessee shall observe, obey, and comply with all
applicable laws, ordinances, rules,and regulations of the
federal, state, borough, or city governments or of any other
public authorities now or hereafter in any manner affecting
the leased premises or the sidewalks, alleys, streets, and
ways adjacent thereto or any buildings, structures, fixtures,
and improvements or the use thereof, whether or not any such
laws, ordinances and regulations which may be hereafter
enacted involved a change of policy on the part of the
governmental body enacting the same.
(b) Lessee agrees to hold City financially harmless:
(1) From the consequences of any violation of such
laws, ordinances, and/or regulations; and,
(2) From all claims for damages on account of
injuries, death, or property damage resulting from such
violation. " q
(c) Lessee further agrees it w1i ;•n'ot permit any
unlawful occupation, business, or trade tao',be conducted on
said premises or any use to be made thereof contrary to any
law, ordinance, or regulation as aforesaid with respect
thereto, including zoning ordinances, rules, and regulations.
32. CARE OF PREMISES: Lessee, at its own cost and
expense, shall keep the leased premises, all improvements which at
any time during the term of this Lease may be situated thereon,
and any and all appurtenances thereunto belonging, in good
condition and repair during the entire term of this Lease.
12 - LEASE OF AIRPORT LANDS LESSOR:
LESSEE:
33.
regulations of
the promotion
kept in neat,
shall be made
SANITATION: The Lessee shall comply with all
ordinances of the City which are promulgated for
of sanitation. The premises of the Lease shall be
clean, and sanitary condition, and every effort
to prevent the pollution of wat&,P%
34. LEBBZM I B OBLIGATION TO RZKQ"LI /'y ssee will
not permit any liens including, but not limited to, chanics',
laborers', or materialmen's liens obtainable or available under
the then existing laws, to stand against the leased premises or
improvements for any labor or material furnished to Lessee or
claimed to have been furnished to Lessee or to the Lessee's
agents, contractors, or sublessees, in connection with work of any
character performed or claimed to have been performed on said
premises or improvements by or at the direction or sufferance of
Lessee, provided, however, Lessee shall have the right to provide
a bond as contemplated by Alaska law and contest the validity or
amount of any such lien or claimed lien. on final determination
of such lien or such claim for lien, Lessee will immediately pay
any judgment rendered with all proper costs and charges and shall
have such lien released or judgment satisfied at Lessee's own
expense.
35. CON
DIMNATION: In the event the leased premises or
any part thereof shall be condemned and taken for a public or a
quasi -public use, then upon payment of any award or compensation
arising from such condemnation, there shall be such division of
the proceeds, such abatement in rent payable during the term or
any extension of the term hereof, and such other adjustments as
the parties may agree upon as being just and equitable under all
the circumstances. If the City and Lessee are unable to agree
within thirty (30) days after such an award has been paid into
Court, upon what division, annual abatement in rent, and other
adjustments are just and equitable, the dispute shall be
determined by arbitration.
36. PRQTNCTION OF BUSTENANTS; To protect tl e.;*osition
of any subtenant(s) hereafter properly obtaining any interests in
the leasehold estate granted Lessee hereunder, City agrees that in
the event of the cancellation, termination, expiration, or
surrender of this Lease (the ground lease), the City will accept
the Subtenant, its successors and assigns, as its Lessee for a
period equal to the full unelapsed portion of the term of the
sublease, including any extensions or renewals thereof, not
exceeding the term of this Lease, upon the same covenants and
conditions therein contained, to the extent that said covenants
and conditions are not inconsistent with any of the terms and
conditions of this Lease, provided such subtenant shall make full
and complete attornment to the City for the balance of the term of
such sublease so as to establish direct privity of estate and
contract between the City and the subtenant with the same force
13 - LEASE OF AIRPORT LANDS LESSOR:
LESSEE:
and effect as though such sublease was originally made directly
between the City and such subtenant; and further provided such
subtenant agrees to comply with all the provisions of the ground
lease and all the provisions of the ground lease and all the terms
of any mortgage, deed of trust, or security assignment to which
such leasehold estate is subject.
37. GU,CCZ80010 IN INTEREBT: This Lease shall be
binding upon and shall inure to the benefit of the respective
successors and assigns of the parties hereto, subject to such
specific limitations on assignment as are provided for herein.
3S. O' Ii3 LAW: Th d ntu�tate
e of Lease shall be
governed in all respects by the law of Alaska.
39. NOTICES: f
(a) Any notices required by this Lease shall be in
writing and shall be deemed to be duly given only if
delivered personally or mailed by certified or registered
mail in a prepaid envelope addressed to the parties at the
address set forth in the opening paragraph of this Lease
unless such address has been changed pursuant -to sub-
paragraph (b) hereafter, and in that case shall to the most
recent address so changed. Any notice so mailed shall be
deemed delivered on the date it is deposited in a U.S.
General or branch post office.
The City shall also mail a copy of any notice given to the
Lessee, by registered or certified mail, to any leasehold
lender (mortgagee, beneficiary of a deed of trust, security
assignee) who shall have given the City notice of such
mortgage, deed of trust, or security assignment.
(b) Any such addresses may be changed by an appropriate
notice in writing to all other parties affected provided such
change of address is given to the other parties by the means
outlined in paragraph (a) above at least fifteen (15) days
prior to the giving of the particular notice in issue.
40. RIGHTS OF MORTLI LDER: In the event of
cancellation or forfeiture of a leasei""Of cause, the holder of a
properly recorded mortgage, deed of tru'A, conditional assignment
or collateral assignment will have the option to acquire the Lease
for the unexpired term thereof, subject to the terms and
conditional in the original lease.
41. ENTRY AND RE-ENTRY: In the event that the Lease
should be terminated as hereinbefore provided, or by summary
proceedings or otherwise, or in the event that the demised lands
or any part thereof should be abandoned by the Lessee during said
14 - LEASE OF AIRPORT LANDS LESSOR:
LESSEE:
term, the Lessor or its agents, servants, or representatives may,
immediately or any time thereafter, re-enter, and resume
possession of said lands or such part thereof, and remove all
persons and property therefrom, either by summary proceedings or
by a suitable action or proceeding at law �'.thout. being liable for
any damages therefor. No re-entry by t s or shall be deemed
an acceptance of a surrender of the Leas'
42. RRBTENTION OF RBNTAL: In the eve 'that the Lease
should be terminated because of any breach by the Lessee as herein
provided, the rental payment last made by the Lessee shall be
retained by the Lessor as partial or total liquidated damages for
said breach.
43. WRXTZZN WAIVER: The receipt of rent by the Lessor
with knowledge of any breach of the Lease by the Lessee, or any
default on the part of the Lessee in observance or performance of
any of the conditions or covenants of the Lease, shall not be
deemed to be a waiver of any provisions of the Lease. No failure
on the part of the Lessor to enforce any covenant or provision
therein contained, nor any waiver of any right thereunder by the
Lessor, unless in writing, shall discharge or invalidate such
covenants or provisions, or affect the right of the Lessor to
enforce the same in the event of any subsequent breach or default.
The receipt, by the Lessor, of any rent or any other sum of money
after the termination, in any manner, of the term therein demised,
or after the giving by the Lessor of any notice thereunder to
effect such termination, shall not reinstate, continue, or extend
the resultant term therein demised, or destroy, or in any manner
impair the efficacy of any such notice of termination as may have
been given thereunder by the Lessor to the Lessee prior to the
receipt of any such sum of money or other consideration, unless so
agreed to in writing and signed by the Lessor.',
44. BUILDING MM ZONITAG CODES: Leased°,ands.#hall be
utilized in accordance with the building and zoning o" 1 a'nces and
rules and regulations of said authority. Failure to do'so shall
constitute a default.
45. FIRE PROTECTION: The Lessee will take all
reasonable precautions to prevent, and take all necessary action
to suppress destructive or uncontrolled grass, brush, or other
fires on leased lands, and comply with all laws, regulations, and
rules promulgated and enforced by the City for fire protection
within the area wherein the leased premises are located.
46. PERSONAL USE OF MATERIALS: All coal, oil, gas, and
other minerals and all deposits of stone or gravel valuable for
extraction or utilization are excepted from the operation of a
surface Lease. Specifically, the Lessee of the surface rights
15 - LEASE OF AIRPORT LANDS LESSOR:
LESSEE:
shall not sell or remove for use elsewhere any timber, stone,
gravel, peat moss, topsoil, or any other material valuable for
building or commercial purposes; provided, however, that material
required for the development of the leasehold may be used if its
use is first approved by the City Manager.
47. X,'OTVU -C L TIO : Lease good standing may
be canceled in whole or in part at any t' mutual written
agreement by Lessee and the City council. W
If
48. gR1 CBE PROXIMITZDo Lessee shall not allow
the leasehold premises to be used for an unlawful purpose.
49. APPROM, OFTIKRA ,�ORITIES: The issuance by the
City of leases does not relieve the Lessee of responsibility of
obtaining licenses or permits as may be required by duly
authorized Borough, State, or Federal agencies.
50. COMPLETION OF CONSTRUCTION: The Lessee hereby
agrees to complete construction of improvements described in the
lease application attached hereto and specifically incorporated
herein within the time frame specified in the lease application,
to wit: Phase I: Beginning date = , Completion
Date = Lessee further agrees that if
construction is not completed by such date, a default shall exist
and the City may proceed to re-enter and terminate the lease as
provided by General Covenant No. 7.
IN WITNESS WHEREOF, the parties hereto have hereunto set
their hands, the day and year stated in the individual
acknowledgements below.
LESSOR:
CITY OF KENAI `
By: William J. Brighton
City Manager
LESSEE:
CARR-GOTTSTEIN PROPERTIES, INC.
By:
Its:
16 - LEASE OF AIRPORT LANDS LESSOR:
LESSEE:
(If Lessee is a Corporation)
ATTEST:
Name
Title
Y
STATE OF ALASKA
ss.
THIRD JUDICIAL DISTRICT )
THIS IS TO CERTIFY that on this day of ,
1990, , Carr-Gottstein Properties,
Inc., being personally known to me or having produced satisfactory
evidence of identification, appeared before me and acknowledged
the voluntary and authorized execution of the foregoing
instrument.
Notary Public in and for Alaska.
My Commission Expires:
STATE OF ALASKA )
) ss.
THIRD JUDICIAL DISTRICT )
THIS IS TO CERTIFY that on this day of ,
1990, WILLIAM J. BRIGHTON, City Manager -the City of Kenai,
Alaska, being personally known to me or h rgiuced
satisfactory evidence of identification, app afore me and
acknowledged the voluntary and authorized exertion of the
foregoing instrument on behalf of said City.
Notary Public in and for Alaska.
My Commission Expires:
Approved as to lease form by City Attorney.
(Initials)
Approved by Finance Director.
(Initials)
17 - LEASE OF AIRPORT LANDS LESSOR:
LESSEE:
Approved by City Manager
(Initials)
LEASE APPROVED by City Council this of ,
1990. �A
City Clerk
18 - LEASE OF AIRPORT LANDS LESSOR:
LESSEE:
1791-1991
CITY OF KENAI
" Del G'dja,al 4 4ia4a „
210 FIDALGO KENAI, ALASKA 99611
TELEPHONE 283.7535
FAX 907.283-3014
NOTICE OF MEETING
The Kenai City Council will be holding a work session on
Friday, April 6, 1990 at 6:00 PM in the Council Chambers.
To be discussed:
1. Carr-Gottstein Proposal
The public is invited to attend and participate.
C.Z.it/t�
Janet Ruotsala, CMC/AAE
City Clerk
DATED: April 5, 1990
jr
12
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