HomeMy WebLinkAboutResolution No. 2023-51KENAI
CITY OF KENAI
RESOLUTION NO. 2023-51
Sponsored by: Administration
A RESOLUTION APPROVING AN AMENDMENT TO THE LEASE FOR A PORTION OF LOT 3, BLOCK
17, ORIGINAL TOWNSITE OF KENAI BETWEEN THE CITY OF KENAI AND PENINSULA ART GUILD,
INC. TO ACCOMMODATE AN EXISTING AND PROPOSED NEW SHED.
WHEREAS, on May 23, 1995, the City entered into a lease with the Kenai Arts & Humanities Council for
City -owned lands identified as a portion of Lot 3, Block 17, Original Townsite of Kenai and the building
known as the Fine Arts Center (the Lease); and,
WHEREAS, since May 23, 1995, the rights under the Lease have been assigned to the Peninsula Arts
Guild and the Lease has been amended over the years with regard to proposed construction plans for
the property, to provide a building to house the Fine Arts Center, extend the lease, and clarify who is
responsible for funding improvement or alteration projects; and,
WHEREAS, the premises under the Lease are leased at less than fair market value at a rate of $1 per
year to provide a City -owned building to house the Fine Arts Center for the benefit of the local community;
and,
WHEREAS, the Peninsula Art Guild, d/b/a Kenai Arts Center, has successfully managed and improved
the building for the community over the years; and,
WHEREAS, the Peninsula Art Guild has requested an amendment to its lease to accommodate an
existing and proposed new shed; and,
WHEREAS, it is in the best interest of the City of Kenai to authorize the City Manager to enter into such
an amendment with Peninsula Art Guild, d/b/a Kenai Arts Center on behalf of the City.
NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA:
Section 1. That the Kenai City Council approves the Fifth Amendment to the Lease for a portion of
Lot 3, Block 17, Original Townsite of Kenai.
Section 2. That the Kenai City Manager is authorized to enter into such Amendment with Peninsula
Art Guild, d/b/a Kenai Arts Center.
Section 3. That this Resolution takes effect immediately upon passage.
PASSED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, THIS 16T" DAY OF AUGUST, 2023.
mes Baisden, Vice Mayor
ATTEST:
Michelle er MC, City Clerk
New Text Underlined; [DELETED TEXT BRACKETED]
1' KF NCI
City of Kenai 1 210 Fidalgo Ave, Kenai, AK 99611-7794 1907.283.7535 1 www 6nai.city
MEMORANDUM
TO: Mayor Gabriel and Council Members
FROM: Terry Eubank, City Manager
DATE: August 4, 2023
SUBJECT: Resolution 2023-51 — Peninsula Art Guild Lease Amendment
The City entered into a lease with the Kenai Arts & Humanities Council for City -owned lands
identified as a portion of Lot 3, Block 17, Original Townsite of Kenai and the building known as
the Fine Arts Center on May 23, 1995. The premises under the Lease are leased at less than fair
market value at a rate of $1 per year to provide a City -owned building to house the Fine Arts
Center for the benefit of the local community and to support the Kenai Arts Community. The Lease
has been amended and extended over and expires on December 31, 2035.
On August 1, 2023, Administration and Planning Director Linda Mitchell met with representatives
from the Kenai Art Center and Kenai Potters' Guild to discuss amending the Lease to
accommodate an existing and proposed new shed on the premises. Pursuant to the Lease, the
Lessee will be required to submit a scope of work for approval by the City Manager prior to work
being performed on the new shed, and the Lessee will be responsible for all necessary licenses
and/or permits required.
The Peninsula Art Guild, d/b/a Kenai Arts Center, has successfully managed and improved the
building for the community over the years and requested an amendment to the Lease to include
the existing and proposed new shed in the description of the leased premises under the Lease.
The Kenai Arts Center is in compliance with both the City and the Borough, and the City Attorney
has reviewed the attached Amendment as to form.
If City Council approves the Lease Amendment, the City Manager will be authorized to sign the
Amendment on behalf of the City, and the Amendment may be executed by the parties.
Thank you for your consideration.
Attachments:
Email from the Peninsula Art Guild, d/b/a Kenai Arts Center
Map of Lot 3, Block 17 (816 Cook Avenue)
Draft Amendment to Lease
Terry Eubank
From: Marion Nelson <mmkn@ptialaska.net>
Sent: Thursday, August 10, 2023 2:44 PM
To: Terry Eubank
Subject: Kenai Art Center Lease - 2:42pm
CAUTION: This email originated from outside your organization. Exercise caution when opening attachments or clicking
links, especially from unknown senders.
Terry Eubank
City Manager
City of Kenai 1907.283.8222
www.kenai.city
Marion
Re the Lease between the City of Kenai and the Peninsula Art Guild/dba Kenai Art Center (KAC), the KAC wants and
needs to be referred to in this manner. KAC respectfully requests the description of the property in the lease be
amended to include the existing 12X20 "barn roof" or gambrel -roof shed style located near the rear & side of the KAC
building and a second 12 X 20 shed (same style, color) to be installed close to the Vt shed. Both sheds to be seated on
crushed rock and appropriately installed.
Marion Nelson, Kenai Art Center BOD President
907 398 8669
mmkn@ptialaska.net
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DATE PRINTED: 8/4/2023
FIFTH AMENDMENT TO LEASE
THIS Fifth Amendment to Lease is made as of the day of ,
2023, by and between the CITY OF KENAI (City), a municipal corporation whose address
is 210 Fidalgo Avenue, Kenai, Alaska 99611, and PENINSULA ART GUILD, INC.
(Lessee), whose address is P.O. Box 703, Kenai, Alaska 99611-0703.
WITNESSETH
WHEREAS, on May 23, 1995, the City entered into a lease with the Kenai Arts &
Humanities Council for City -owned lands identified as A portion of Lot 3, Block 17,
Original Townsite of Kenai and the building known as the Fine Arts Center, which lease was
recorded at Book 464 Pages 768-776 on June 13, 1995, in the Kenai Recording District,
Third Judicial District, State of Alaska (the Lease); and,
WHEREAS, since May 23, 1995, the rights under the Lease have been assigned to
the Peninsula Arts Guild; and,
WHEREAS, an Amendment to Lease recorded at Book 486 Pages 465-466 on June
13, 1996 extended the term of the Lease to June 30, 2015 and required the Lessee to submit
to the City Council, for approval, any proposed construction plans for the property; and,
WHEREAS, a Second Amendment to Lease recorded on December 26, 2013, under
Document Number 2013-012032-0, extended the term of the Lease until December 31, 2020
and to amend the purpose to provide a building to house the Fine Arts Center for the benefit
of the local community; and,
WHEREAS, a Third Amendment to Lease recorded on January 30, 2017, under
Document Number 2017-000659-0, extended the term of the Lease until December 31, 2035
to justify future building maintenance and repair expenditures, satisfy multi -year grant
funding requirements, and pursue future funding opportunities; and,
WHEREAS, a Fourth Amendment to Lease recorded on September 2, 2021, under
Document Number 2021-009750-0, amended section 18 of the lease to clarify who is
responsible for the funding of any projects in the future; and,
Fifth Amendment to Lease Page 1 of 3
Portion of Lot 3, Block 17, Original Townsite of Kenai and Fine Arts Center Building
WHEREAS, the parties have agreed to amend the property description to include an
area in which an existing and proposed new shed are located.
NOW THEREFORE, the parties agree as follows:
1. The description of the property in the Lease is amended as follows:
A portion of Lot 3, Block 17, Original Townsite of Kenai, located in the Kenai Recording
District, Third Judicial District, State of Alaska, more specifically described as the building
known as the Fine Arts Center, along with the grounds beneath such building, so much of
those grounds immediately adjacent to such building as will provide ingress and egress to
and from such building and access to all portions of the exterior of the building for purposes
of repair and maintenance, and a 30 foot by 70 foot rectangular area in the rear of the building
as detailed in Attachment A.
2. Except as expressly modified or stated herein, all other terms and conditions
of the Lease (as amended) remain in full force and effect.
CITY OF KENAI
By:
Terry Eubank
Its: City Manager
PENINSULA ART GUILD
By:
Name:
Its:
Approved as to form:
Scott Bloom
City Attorney
Fifth Amendment to Lease Page 2 of 3
Portion of Lot 3, Block 17, Original Townsite of Kenai and Fine Arts Center Building
State of Alaska )
ss
Third Judicial District )
The foregoing instrument was acknowledged before me this day of , 20231
by Terry Eubank, City Manager for the City of Kenai.
Notary Public of Alaska
My Commission Expires:
State of Alaska )
ss
Third Judicial District )
The foregoing instrument was acknowledged before me this
by
(Name)
day of , 2023,
(Title), on behalf of
PENINSULA ART GUILD, INC, a Alaska Corporation, on behalf of the Corporation.
Notary Public of Alaska
My Commission Expires:
RETURN TO:
CITY OF KENAI
210 Fidalgo Avenue
Kenai, AK 99611-7794
Fifth Amendment to Lease Page 3 of 3
Portion of Lot 3, Block 17, Original Townsite of Kenai and Fine Arts Center Building