HomeMy WebLinkAboutResolution No. 2018-20U
CITY OF KENAI
RESOLUTION NO. 2018 - 20
Sponsored by: Administration
A RESOLUTION OF THE COUNCIL OF THE CITY OF KENAI, ALASKA, CONSENTING TO AN
AMENDMENT EXTENDING THE TIMEFRAME FOR LEGACY ELECTRIC LLC, LESSEE, TO
COMPLETE IMPROVEMENTS AS SET FORTH IN THE ORIGINAL LEASE OF AIRPORT
RESERVE LANDS.
WHEREAS, the City of Kenai and Legacy Electric LLC entered into a Lease of Airport Reserve
Lands for City -owned lands described as follows:
Lot Two (2), Block (1), GENERAL AVIATION APRON; and,
WHEREAS, the Lease was recorded on March 25, 2015, under document number 2015-002299-
0, in the Kenai Recording District, Third Judicial District, State of Alaska; and,
WHEREAS, Article XIV Section (B), Subsection (1), of the Lease included the following provision:
REQUIRED IMPROVEMENTS: At no cost to the City, Lessee agrees to complete land
development and construction of Permanent Improvements including removal of waste
material previously buried on the site and construct two (2) 6-plex unit t -hanger heated
complex, by no later than December 1, 2016, with an appraised value of at least
$500,000.00. In addition to the as -built drawings required by this lease, the Lessee must
submit to the City written evidence that the Lessee has completed the land development
and constructed improvements on the Premises with an aggregate cost or investment of
not less than $500,000.00.
The evidence must be submitted to the City within sixty (60) days of the completion of the
development and improvements, but by no later than September 1, 2016; and,
WHEREAS, Legacy Electric LLC completed construction on the first t -hanger; however,
construction has not begun on the second t -hanger; and
WHEREAS, on March 26, 2018, Legacy Electric LLC submitted an application requesting the City
of Kenai grant an extension for construction of the second hanger until December 1, 2018; and
WHEREAS, at their regular meeting on April 11, 2018, the Planning and Zoning Commission
reviewed the Amendment to Lease and recommend approval by the City Council; and
WHEREAS, at their regular meeting on April 12, 2018, the Airport Commission reviewed the
Amendment to Lease and recommended approval by the City Council.
Resolution No. 2018-20
Page 2 of 2
NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA:
Section 1. That a First Amendment to Lease of Airport Reserve Lands be entered into by the
City of Kenai, Lessor, and Legacy Electric LLC, Lessee, amending Article XIV Section (B),
Subsection (1), as follows:
REQUIRED IMPROVEMENTS: At no cost to the City, Lessee agrees to complete land
development and construction of Permanent Improvements including removal of waste
material previously buried on the site and construct two (2) 6-plex unit t -hanger
heated complex, by no later than December 1, 2018, with an appraised value of at least
$500,000.00. In addition to the as -built drawings required by this lease, the Lessee must
submit to the City written evidence that the Lessee has completed the land development
and constructed improvements on the Premises with an aggregate cost or investment of
not less than $500,000.00.
The evidence must be submitted to the City within sixty (60) days of the completion of the
development and improvements.
Section 2. Except as expressly modified or stated herein, all other terms and conditions of the
Lease remain in full force and effect.
Section 3. That this resolution takes effect immediately upon adoption.
ADOPTED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, this 2nd day of May, 2018.
ATTEST:
City
BRIAN G SR., MAYOR
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210 Fidalgo Ave, Kenai, Alaska 99611-7794
Telephone: (907) 283-7535 1 Fax: (907) 283-3014
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MEMORANDUM
TO: Mayor Brian Gabriel and Kenai City Council
THROUGH: Paul Ostrander, City Manager
FROM: Willie Anderson, Planning Assistant
DATE: April 24, 2018
SUBJECT: Resolution No. 2018-20 — First Amendment to Lease of Airport Reserve
Lands — Lot 2, Block 1, General Aviation Apron — Legacy Electric LLC
The City of Kenai, Lessor, and Legacy Electric LLC, Lessee entered into a Lease of Airport
Reserve Lands on January 12, 2015, which included the following provision:
REQUIRED IMPROVEMENTS: At no cost to the City, Lessee agrees to complete land
development and construction of Permanent Improvements including removal of
waste material previously buried on the site and construct two (2) 6-plex unit t -
hanger heated complex, by no later than September 1, 2016, with an appraised
value of at least $500,000.00. In addition to the as -built drawings required by this
lease, the Lessee must submit to the City written evidence that the Lessee has
completed the land development and constructed improvements on the Premises with
an aggregate cost or investment of not less than $500,000.00.
The evidence must be submitted to the City within sixty (60) days of the completion of the
development and improvements, but by no later than September 1, 2016.
The Lessee completed construction on the first t -hanger; however, construction has not begun on
the second t -hanger. The Lease terms state the time period to complete construction on both t -
hangers ended on September 1, 2016. Lessee states that the materials necessary for
construction of the second t -hanger are on site.
On March 26, 2018, Legacy Electric LLC submitted an application requesting the City of Kenai
grant an extension for construction of the second hanger until December 1, 2018.
Page 2 of 2
Resolution 2018-20
Accordingly, the City Attorney has prepared A First Amendment to Lease of Airport Reserve
Lands to be executed by the City of Kenai and Legacy Electric LLC. Article XIV Section (B),
Subsection (1), is hereby amended as follows:
REQUIRED IMPROVEMENTS: At no cost to the City, Lessee agrees to complete land
development and construction of Permanent Improvements including removal of waste
material previously buried on the site and construct two (2) 6-plex unit t -hanger
heated complex, by no later than December 1, 2018, with an appraised value of at least
$500,000.00. In addition to the as -built drawings required by this lease, the Lessee must
submit to the City written evidence that the Lessee has completed the land development
and constructed improvements on the Premises with an aggregate cost or investment of
not less than $500,000.00.
The evidence must be submitted to the City within sixty (60) days of the completion of the
development and improvements.
Except as expressly modified or stated herein, all other terms and conditions of the Lease remain
in full force and effect.
The Planning and Zoning Commission reviewed the Amendment to Lease on April 11, 2018, and
recommend approval thereof, to the City Council.
The Airport Commission reviewed the Amendment to Lease on April 12, 2018, and recommend
approval thereof, to the City Council
Thank you for your consideration.
^� City of Kenai
i Kenai Municipal Airport
Land
Application for:
❑New Lease
Lease Application
❑� Amendment
REItN ay "
❑ Extension/Renewal
U
Application Date: 03/26/18
Name of Applicant: Derek Leichliter
Mailing Address:
46113 Sather Court
City:
Soldotna
State
AK
Zip Code:
99669
Phone Number(s):
Home Phone: ( 907) 252-4391
Work/ Message Phone: ( 907) 262-4391
E-mail: (Optional)
legacyelectricak@gmail.com
Name to Appear on Lease:
Legacy Electric, LLC
Mailing Address:
46113 Sather Court
ity:
HIS
Soldotna
State:
AK
Zip Code:
99669
Phone Number(s):
Home Phone: (907) 252-4391
Work/ Message Phone: (907) 262-4391
E-mail: (Optional)
legacyelectricak@gmail.com
Type of Applicant: ❑Individual (at least 18 years of age) ❑Partnership
❑Corporation
❑✓ Limited Liability Company (LLC) [_]Government
❑Other
Description
Legal Description of Property: 115 FBO Road, Kenai, AK
Does the Property Require Subdivision? (if Yes, answer next two questions)
❑
YES
❑✓ NO
Are you prepared to be responsible for all costs associated with subdivision?
DYES
❑ NO
Do you believe the proposed subdivision would serve other Airport purposes?
❑
YES
[—]NO
Do you have or have you ever had a Lease with the City of Kenai?
❑✓
YES
❑ NO
If Yes, please provide description of property leased (e.g. legal or physical description):
115 FBO Road, Kenai, AK
Is this application for renewal or term extension of an existing lease?
WIYES [:]NO
If Yes, please provide a description of the property leased:
115 FBO Road, Kenai, AK
Lease Term Requested: Starting Date:
Proposed Use and Activities
Proposed Use (check one): Aeronautical ❑ Non -Aeronautical
Do you plan to construct new or additional improvements?
YES []NO
If yes, will the improvement change or alter the use under an existing lease? FIYES W]NO
If yes, what is the new proposed use?
If yes, what is the type of improvement? (e.g. building improvement, land improvement)
If yes, what is the nature of the improvements? (e.g. maintenance, landscaping, new construction)
List of proposed use and business activities:
Airplane Hangar
to request an extension for construction of the second hanger until December 1, 2018. Article XIV(B)(1)
provided that construction would be completed no later than September 1, 2016.
Lease Extension or Renewal
Method to determine value of improvements/term for a lease renewal or expiring lease:
Professional estimate of the remaining useful life of the principle improvement on the property
Market value appraisal of the principle improvement on the property
Purchase price of improvements
Submitting an application for a lease does not give the applicant a right to lease or use the land requested in the application. The application
shall expire twelve (12) months after the dale the application has been made if the City and the applicant have not, by that time. entered into a
lease, unless the City Council for good cause grants an extension for a period not to exceed six (6) months. The City has no obligation to
amend, renew or extend a lease and may decline to do so upon making specific findings as to why a lease renewal, extension, or amendment
is not in the best interest of thl City
Signature:
Date:
Print Name:
Derek Lelchllter
Title:
Dia
FIRST AMENDMENT TO LEASE OF AIRPORT RESERVE LANDS
THIS Amendment to Lease is made as of the day of 2018, by
and between the CITY OF KENAI (City), a municipal corporation whose address is 210
Fidalgo Avenue, Kenai, Alaska 99611, and Legacy Electric, LLC. whose address is 46113
Sather Court, Soldoma, AK 99669.
WITNESSETH
WHEREAS, on January 12, 2015, the City entered into a lease with Legacy Electric,
LLC. for City -owned lands identified as Lot 2, Block 1, General Aviation Apron, which
lease was recorded at 2015-002299-0, on March 25, 2015, in the Kenai Recording District,
Third Judicial District, State of Alaska; and,
WHEREAS, the City and Legacy Electric, LLC., for mutual consideration, mutually
agree to amend the lease described herein to extend the timeframe for Legacy Electric, LLC.,
to complete improvements as provided below.
NOW THEREFORE, the City and Legacy Electric, LLC. agree as follows:
1. Article XIV Section (B) Subsection (1) is hereby amended as follows:
REQUIRED IMPROVEMENTS: At no cost to the City, Lessee agrees to complete
land development and construction of Permanent Improvements including removal
of waste material previously buried on the site and construct two (2) 6-plex unit
t -hanger heated complex, by no later than December 1, 2018, with an appraised
value of at least $500,000.00. In addition to the as -built drawings required by this
lease, the Lessee must submit to the City written evidence that the Lessee has
completed the land development and constructed improvements on the Premises with
an aggregate cost or investment of not less than $500,000.00.
The evidence must be submitted to the City within sixty (60) days of the completion
of the development and improvements.
2. Except as expressly modified or stated herein, all other terms and conditions of the
Lease remain in full force and effect.
First Amendment to Lease
Page 1 of 3
CITY OF KENAI
By:
Paul Ostrander
Its: City Manager
Legacy Electric, LLC.
By: _
Name:
Its:
Approved as to form:
Scott Bloom
City Attorney
State of Alaska )
) ss
Third Judicial District )
The foregoing instrument was acknowledged before me this day of 2018,
by Paul Ostrander, City Manager for the City of Kenai.
Notary Public of Alaska
My Commission Expires:
First Amendment to Lease
Page 2 of 3
State of Alaska )
) ss
Third Judicial District )
The foregoing instrument was acknowledged before me this day of 12018,
by (Name), (Title) for
Legacy Electric, LLC.
Notary Public of Alaska
My Commission Expires:
RETURN TO:
CITY OF KENAI
210 Fidalgo Avenue
Kenai, AK 99611-7794
First Amendment to Lease
Page 3 of 3
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