HomeMy WebLinkAboutResolution No. 2021-06KENAI
CITY OF KENAI
RESOLUTION NO. 2021-06
Sponsored by: Administration
A RESOLUTION OF THE CITY OF KENAI, ALASKA, AUTHORIZING THE CITY MANAGER TO
ENTER AN AMENDED BAR/LOUNGE CONCESSION AGREEMENT AT THE KENAI
MUNICIPAL AIRPORT WITH THE UPPER DECK LOUNGE.
WHEREAS, on June 17, 2015, Council passed Resolution No. 2015-40 authorizing the City
Manager to enter into a Bar and Lounge Concession Agreement for the Kenai Municipal Airport
for the contract years July 1, 2015 through June 30, 2020 to pay a monthly base rent plus a
monthly percentage rate of 2% of gross sales; and,
WHEREAS, the Concession Agreement is on a month-to-month basis until such time the City
determines the COVID pandemic is behind us and advertises an Invitation to Bid; and,
WHEREAS, on April 3, 2019, Council passed Resolution No. 2019-22 authorizing the City
Manager to enter into an amended bar and lounge concession agreement with the Kenai
Municipal Airport to reimburse the Concessionaire for costs impacting the business closure of
approximately nine weeks, due to the extensive work associated with the Terminal Rehabilitation
Project; and,
WHEREAS, on July 1, 2020, Council passed Resolution No. 2020-55 retroactively approving
rent relief measures for Kenai Municipal Airport concessionaires during mandatory closures
caused by the COVID-19 Public Health Emergency; and,
WHEREAS, the Upper Deck Lounge is still experiencing a significant loss of business due to the
continuing COVID pandemic along with the reduction in numbers of traveling public as a result of
the RAVN Alaska bankruptcy and is requesting a fifty (50) percent reduction in the monthly base
rent from January 1, 2021 until June 30, 2021; and,
WHEREAS, City Administration has reviewed their financial data and determined that the request
is reasonable due to continued impacts as a result of the COVID 19 pandemic.
NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA:
Section 1. That the City Manager is authorized to execute an amendment to the concession
contract with the Upper Deck Lounge to reduce the monthly base rent from January 1 through
June 30, 2021 by fifty (50) percent plus applicable sales tax, in compliance with applicable FAA
requirements.
Section 2. That this Resolution is retroactive to payments due in January 2021.
Section 3. That this Resolution takes effect immediately upon passage.
PASSED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, this 3rd day of February, 2021.
Resolution No. 2021-06
Page 2 of 2
BRIAN GABRIEL, SR., MAYOR
ATTEST:
r�
Jamie Heinz, CMC, City Clerk
17 �
V
K E N A
City of Kenai 1 210 Rdalgo Ave. Kenai, AK 99611-7794 1907.283.7535 1 www.6nai.city
MEMORANDUM
TO:
Mayor Gabriel and Council Members
THROUGH:
Paul Ostrander, City Manager
FROM:
Mary Bondurant, Airport Manager
DATE:
January 25, 2021
SUBJECT:
Resolution No 2021-06 — Bar/Lounge Concession Agreement
Amendment
In an email to City administration on January 20, 2021, Rod and Laura Peterkin, owners of the
Upper Deck Lounge, asked for a reduction to their base rent starting January 2021.
The original term of the bar/lounge concession agreement was July 1, 2015 through June 30,
2020. The concession agreement is now on a month-to-month basis until such time the City
determines the COVID pandemic is behind us.
Council has previously approved rent relief to the Upper Deck due to the pandemic and the
terminal rehabilitation project.
The Upper Deck has reduced their inventory and hours of operation and are still experiencing
loss of business due to the pandemic, reduction in travelers, and the RAVN Alaska bankruptcy.
They would like the City to reduce the monthly base rent by 50%. They will continue to pay the
monthly percentage rent of 2% of gross sales plus applicable sales tax.
This resolution would allow the City Manager to execute an amendment to the concession
agreement for the Upper Deck Lounge that would reduce the monthly base rent by 50% effective
January 1, 2021 through June 30, 2021 or until such time a new contract is signed. The Upper
Deck will continue to pay the monthly percentage rate of gross sales established at 2%.
Thank you for your consideration