Loading...
2023-01-26 Special MeetingKodiak Island Borough Assembly Special Meeting Agenda Thursday, January 26, 2023, Assembly Chambers Immediately Following The 6:30 p.m. Work Session This meeting was called by the Assembly. Page 1. ROLL CALL 2. CITIZENS COMMENTS (Limited to Three Minutes per Speaker) Please call 1(907) 486-3231 or toll free 1(855) 492-9201 3. CONSIDERATION OF MATTER(S) IN THE CALL FOR THE SPECIAL MEETING A. Contract No. FY2023-35 Approval Of A Lease Agreement Between The Kodiak Island Borough and OBI Seafoods, LLC For Certain Real Property Located At 717 E. Rezanof Drive, Kodiak, Alaska Attorney Correspondence on 717 E Rezanof Property Quit Claim Deed Information 2 - 21 4. ADJOURNMENT ___________________________________________________________________________ This meeting is open to the public and will be broadcast on the Borough's YouTube Channel. Meeting packets are available online. Please subscribe to get meeting notifications when meeting packets are published. For public comments, please call (907) 486-3231 or (855) 492-9202. Page 1 of 21 Get Outlook for iOS<https://aka.ms/o0ukef> ________________________________ From: Scott Brandt-Erichsen <s.brandt-erichsen@keenecurrall.com> Sent: Tuesday, January 24, 2023 7:22 AM To: Dave Conrad <dconrad@kodiakak.us> Cc: Seema Garoutte <sgaroutte@kodiakak.us>; Raquelle Trudeau <raquelle@keenecurrall.com> Subject: RE: 717 E. Rezanof Dave, Looking at the restrictions in the conveyance from the Department of Interior to the State, they limit use to school and other public purposes only; require that the property be available to Indians and non- Indians on the same terms; and provide that if the State of Alaska fails to observe the limitation or a condition in the statue authorizing the transfer to the State for a period of more than one year, then the Secretary of Interior may declare the property forfeit and returned to the Department of Interior. The Deed from the State to the Borough phrases the restrictions as making the conveyance subject to: Platted easements; Unrestricted public use and access; and all reservations of record, and provides for the reversion of title if the Director of the Division of Lands of the Alaska Department of Natural Resources determines the conditions have been breached for more than one year. It is not clear why the State used different terminology from the Federal conveyance, but either way the limitations mean that use for other than public purposes for more than one year will trigger a right of the State and of the Federal government to require return of the property. Unless the title report shows that the restriction has subsequently been released, use for more than 12 months for other than public purposes could trigger reversion. This means that a lease for multiple years to a private party for their own purposes could result in the demand for return of the property to the State or Federal government. While there may be arguments to make asserting that the use of the property for needed workforce housing served some public purpose, where that housing is controlled by a private party and is not open to the public there is a substantial risk that a court would find the lease violates the deed restriction. The use by Providence under the prior lease was for a mental health program and related mental health purposes. While I do not know the specific uses, that general description more easily falls within a public purpose available to all than would a private company's workforce housing. Under the restriction the Borough may use the property for a non-compliant purposes for a period of less than one year without triggering the forfeiture provision. However, where the RFP was seeking a 10 year lease of more of the property and included repair of the structures and included addressing asbestos and lead paint, an award of a shorter term (less than one year) lease of only one building is substantially different. As such it would be a separate disposal of an interest in property and the borough would need to start the process over again to avoid a risk of challenge that the disposal of interest was not properly conducted. Specific to the conditional use, whether it is the entire property or only a portion of the property (the three units), if the use proposed is one which would require a conditional use, then we would need the CUP process for that rental as well. Something to consider is that if the CUP is to allow a private rental use which his not permitted in the deed restriction, getting the CUP would seem inconsistent with the deed limitations. AGENDA ITEM #3.A. Contract No. FY2023-35 Approval Of A Lease Agreement Between The Kodiak ... Page 2 of 21 I think that if we were to try to simply change the RFP award to a short term rental it would be vulnerable to a challenge to the process. Also, if we were to make those units available I would suggest that it be structured or justified in a way which serves an identified public purpose and is available to all if the Borough wants to avoid issues with the deed restrictions. That said, if the Borough offered one or more short term (less than one year) rentals, the Borough at least arguably would not violate the provision. This discovery of this restriction is a significant development regarding the future of this property. It may be cause to re-evaluate the current path and the options available moving forward. Scott Brandt-Erichsen AGENDA ITEM #3.A. Contract No. FY2023-35 Approval Of A Lease Agreement Between The Kodiak ... Page 3 of 21 AGENDA ITEM #3.A.Contract No. FY2023-35 Approval Of A Lease Agreement Between The Kodiak ...Page 4 of 21 AGENDA ITEM #3.A.Contract No. FY2023-35 Approval Of A Lease Agreement Between The Kodiak ...Page 5 of 21 AGENDA ITEM #3.A.Contract No. FY2023-35 Approval Of A Lease Agreement Between The Kodiak ...Page 6 of 21 AGENDA ITEM #3.A. Contract No. FY2023-35 Approval Of A Lease Agreement Between The Kodiak ... Page 7 of 21 AGENDA ITEM #3.A. Contract No. FY2023-35 Approval Of A Lease Agreement Between The Kodiak ... Page 8 of 21 AGENDA ITEM #3.A.Contract No. FY2023-35 Approval Of A Lease Agreement Between The Kodiak ...Page 9 of 21 AGENDA ITEM #3.A.Contract No. FY2023-35 Approval Of A Lease Agreement Between The Kodiak ...Page 10 of 21 AGENDA ITEM #3.A.Contract No. FY2023-35 Approval Of A Lease Agreement Between The Kodiak ...Page 11 of 21 AGENDA ITEM #3.A.Contract No. FY2023-35 Approval Of A Lease Agreement Between The Kodiak ...Page 12 of 21 AGENDA ITEM #3.A.Contract No. FY2023-35 Approval Of A Lease Agreement Between The Kodiak ...Page 13 of 21 AGENDA ITEM #3.A.Contract No. FY2023-35 Approval Of A Lease Agreement Between The Kodiak ...Page 14 of 21 AGENDA ITEM #3.A.Contract No. FY2023-35 Approval Of A Lease Agreement Between The Kodiak ...Page 15 of 21 AGENDA ITEM #3.A.Contract No. FY2023-35 Approval Of A Lease Agreement Between The Kodiak ...Page 16 of 21 AGENDA ITEM #3.A.Contract No. FY2023-35 Approval Of A Lease Agreement Between The Kodiak ...Page 17 of 21 AGENDA ITEM #3.A.Contract No. FY2023-35 Approval Of A Lease Agreement Between The Kodiak ...Page 18 of 21 AGENDA ITEM #3.A.Contract No. FY2023-35 Approval Of A Lease Agreement Between The Kodiak ...Page 19 of 21 AGENDA ITEM #3.A.Contract No. FY2023-35 Approval Of A Lease Agreement Between The Kodiak ...Page 20 of 21 AGENDA ITEM #3.A.Contract No. FY2023-35 Approval Of A Lease Agreement Between The Kodiak ...Page 21 of 21 Kodiak Island Borough Assembly Special Meeting Guidelines Thursday, January 26, 2023, Immediately Following The 6:30 p.m. Work Session Assembly Chambers 1. ROLL CALL KIBC 2.25.070... the chair shall cause the record to reflect the absence of the member, the reason for the absence, and whether the absence is excused by the assembly Recommended motion: Move to excuse Mayor Williams who is in attendance of the Prince William Sound Citizens Regional Citizens Advisory Council's meeting and Assembly members Griffin and Turner who are out on personal leave. VOICE VOTE ON MOTION. 2. CITIZENS COMMENTS (Limited to Three Minutes per Speaker) Read the phone numbers: Local is 907-486-3231; Toll Free is 1-855-492-9202. Please ask speakers to: 1. Sign in and state their name for the record 2. Turn on the microphone before speaking 3. Address all remarks to the assembly as a body and not to any member thereof. If calling in — turn off any listening devices to prevent feedback 3. CONSIDERATION OF MATTER(S) IN THE CALL FOR THE SPECIAL MEETING A. Contract No. FY2023-35 Approval Of A Lease Agreement Between The Kodiak Island Borough and OBI Seafoods, LLC For Certain Real Property Located At 717 E. Rezanof Drive, Kodiak, Alaska There is no recommended motion for this item. Please ask the Manager to give an update pertaining to the Lease Agreement. Staff report — Dave Conrad, Interim Borough Manager Assembly discussion. If the Assembly desires to go into executive session, below is the recommended motion: Recommended motion: Move to convene into executive session under the authority of KIBC 2.30.030(F) to discuss land disposal and under the authority of KIBC. 2.30.030 (F)(1)(b) and (h) to discuss the Borough negotiating position regarding the terms for lease of property at 717 E. Rezanof Drive, a matter the immediate knowledge of which would tend to adversely affect the finances of the Borough. Assembly discussion. ROLL CALL VOTE ON MOTION Page 1 of 2 Recommended motion: move to invite the Assembly, except for Assembly Member Turner, the Manager, and the Clerk into Executive Session. VOICE VOTE ON MOTION After the vote, Deputy Presiding Officer Smiley recesses the special meeting and convenes the executive session. Upon returning from the executive session, Deputy Presiding Officer Smiley reconvenes the special meeting and announces -or- • No action is to be taken as a result of the executive session. The Assembly may make a motion if necessary. The Assembly must state the motion and vote outside of executive session. ROLL CALL VOTE ON ANY MOTION THAT MAY HAVE RESULTED FROM THE EXECUTIVE SESSION. 4. ADJOURNMENT Recommended motion: Move to adjourn the meeting. VOICE VOTE ON MOTION. K/BC 2.30.030 A.... Meetings shall adjourn at 10:30 p.m. unless the time is extended by a maiority of the votes to which the assembly is entitled. No meeting shall be extended beyond 11 p.m., unless extended by a two-thirds vote of the assembly, except the meeting shall be extended to set the time and place for resumption of the meeting. Page 2 of 2 KODIAK ISLAND BOROUGH ASSEMBLY ROLL CALL SHEET Regular Special Convened: I ' Recessed: Reconvened: Date: 0 /'2-? ► Adjourned: 0 0/ BY: SECOND: BY: C'� SECOND r , J V" 1(J BY: 5 S SECOND: v� BY: SECOND: BY: SECOND: YES NO YES NO YES NO YES NO YES NO Mr. Arndt V Mr. Arndt Mr. Arndt Mr. Arndt Mr. Arndt Mr. Delgado V Mr. Delgado Mr. Delgado Mr. Delgado Mr. Delgado Mr. Griffin n in r-6nffir-- -Mr—Griffin— Mr. Ledoux Mr. Ledoux Mr. Ledoux Mr. Ledoux Mr. Ledoux Mr. Smiley Mr. Smiley Mr. Smiley Mr. Smiley Mr. Smiley Mr. Smith Mr. Smith Mr. Smith Mr. Smith Mr. Smith Mr. Turner -Turner WOULD ANYONE LIKE TO CHANGE_ THEIR VOTE? WOULD ANYONE LIKE TO CHANGE THEIR VOTE? TOTAL: TOTAL: TOTAL: TOTAL: TOTAL: The mayor may not vote/except in the case where only six members of the assembly are present and there is a three/three tie vote of the assembly. Mayor WilliamsI I V Mayor Williams � I I Mayor Williams I Mayor Williams I -T T t Mayor Williams I I —] • Motions required for 2/3 vote to carry. 7 present requires 5; 6 present requires 4; 5 present requires 4; 4 present requires 3 Reconsideration on the same day, suspension of rules, limit of extend debate, previous question • Majority vote is majority of the membership (quorum). Point of Order and Recess. KODIAK ISLAND BOROUGH Meeting Type: G {.i. �l.` ' Date: 1-2(o-2023 Please PRINT your name legibly Please PRINT your name legibly View our website: www.kodiakak.us Visit our Facebook page: www.facebook.com/KodiakIslandBorough Follow us on Twitter: @KodiakBorough Kodiak Island Borough Assembly Newsletter Vol. FY2023, No. 23 January 27, 2023 At Its Special Meeting Of January 26, 2023, The Kodiak Island Borough Assembly Took The Following Actions. The Next Regular Meeting Of The Borough Assembly Is Scheduled On Thursday, February 2, 2023, At 6:30 p.m. In The Borough Assembly Chambers. RECEIVED An Update Pertaining to the Lease Agreement Of Contract No. FY2023-35 Approval Of A Lease Agreement Between The Kodiak Island Borough and OBI Seafoods, LLC For Certain Real Property Located At 717 E. Rezanof Drive, Kodiak, Alaska.