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FY2026-41 Land Lease for use of Service Area #1 at 3523 E. Rezanof Drive with Fields RentalRental Agreement Page 1 of 4 RENTAL AGREEMENT THIS RENTAL AGREEMENT is executed in duplicate this 1st day of April, 2025, by and between Fields Rentals hereinafter called the "Landlord" and Kodiak Island Borough on behalf of Service District 1, is hereinafter called the "Tenant" as follows: 1. Landlord, in consideration of rents, covenants and agreements hereinafter set forth to be paid and performed by Tenant does hereby rent to Tenant, and Tenant does hereby accept and rent from Landlord, that certain rental property described as: 3523 E. Rezanof Dr. Located in Kodiak, Alaska, hereinafter referred to as, the "Rented Premises." This lease shall run for a period of 1 year commencing on the lst day of January, 2025. Lease is extendable in yearly increments (4) for a total of 5 years. Tenant agrees to give written OR verbal notice, thirty (30) days before the next lease extension which is on January 1 annually. Also, Tenate agrees to give written notice of his intention to vacate the premises. 2. Tenant agrees to pay as rent, the sum of $1,000 per month, in two annual payments. First Payment due on or before January 1 and second payment due on or before July 1St. Rent shall increase by 5% at each extension as follows: 2026: $6,300 on or before January 1 and $6,300 on or before July 1St. 2027: $6,515 on or before January 1 and $6,515 on or before July 15t. 2028: $6,841 on or before January 1 and $6,841 on or before July 1st. 2029: $7,183 on or before January 1 and $7,183 on or before July 13t Rent shall be paid to Landlord at 4022 Cliffside Rd., Kodiak, AK 99615 or at such other place as Landlord may hereafter designate in writing. Rental Agreement Page 2 of 4 3. Tenant has examined the Rented Premises, accepts them in their present condition, and covenants to keep the premises at all times clean and in as good order and condition as they are now in or may hereafter be put in by Landlord, ordinary wear and tear resulting from careful usage and damage by the elements without fault on the part of Tenant alone excepted. After examination of the rented premises Tenant has executed the attached Condition of Rented Premises form which is incorporated into this Agreement and is made a part hereof by reference. 4. Landlord or his authorized agent may have access to the premises in any emergency situation, without notice. In addition, upon twenty-four (24) hours' notice of intent to enter, Tenant shall allow the apartment manager or his agent free access to the rented premises for the purpose of inspection, or to show the premises to prospective renters, purchasers, mortgagors, or to any other person having a legitimate interest therein, or to make necessary repairs or improvements, but this right shall not be construed as an agreement on the part of the Landlord to make any repairs or improvements. Such entry to the Landlord or his agents shall be at reasonable times. 5. (a) Tenant shall not assign this agreement or any interest therein. This agreement shall not be assignable or transferable by operation of law. 6. (a) If rent is unpaid when due and Tenant fails to pay rent within ten (10) days after written notice of such non-payment of rent and Landlord's intention to terminate this Agreement, this tenancy shall terminate and the Landlord may immediately recover possession of the rental unit. (b) If there is any other material noncompliance with any of the provisions of this Rental Agreement, Landlord shall serve written notice on Tenant specifying the acts and omissions constituting such breach and specifying that the rental agreement will terminate upon a date twenty (20) days after receipt of the notice. Tenant shall have ten (10) days to remedy such a breach. If the breach is remedied by repairs or the payment of damages or otherwise before the date specified in the notice, the Rental Agreement will not terminate. (c) In the absence of due care by Tenant, if substantially the same act or omission which constituted a prior breach for which notice was given recurs within six (6) months, Landlord may terminate this Rental Agreement upon ten (10) days written notice specifying the breach and date of termination of the Rental Agreement. 7. Should the leased premises be wholly or partially destroyed this Agreement shall be automatically and immediately terminated. 8. Tenant insurance is available through insurance carriers. It is the Tenant's responsibility to provide his own fire, liability, casualty Rental Agreement Page 3 of 4 or theft insurance, if such insurance is desired. landlord shall not be responsible for any loss of, or damage to property of Tenants or for liability except as required by law. 9. Waiver of any default, or of the breach of any of the covenants, conditions or rules herein contained shall not constitute a waiver of any subsequent default or of any subsequent breach of the same or of any other covenant, condition or rule herein contained. 10. Tenant hereby agrees that the Landlord shall have the right to place and maintain "For Rent" signs in the Rented Premises and to show the Rented Premises to prospective tenants at reasonable hours for a period of thirty (30) days prior to the expiration of the tenancy under this agreement. 11. Service of all written notices required by this agreement is sufficient if given personally or mailed to the party involved at his respective address as set forth in this agreement, or at such address as the party may provide in writing from time to time. Any such notice mailed to such address is effective when deposited in the United States mail, duly addressed and with postage prepaid. 12. If Landlord sells his interest in the rented premises, then, at the option of Landlord or Tenant, this Agreement may become null and void, and the terms will be of no effect after the date of sale, and after thirty (30) days prior notice has been given. 13. This instrument, its attachments and rules promulgated now or hereafter under its terms, embodies the whole contract between the parties, and no representation or agreement has been made by either of such parties that is not embodied herein. 14. Tenant agrees that the premises is to be used and occupied only by Service District 1 contractors. IN WITNESS WHEREOF the parties have signed this Agreement the year and day first hereinabove written. db odiak Island orougNOV tals t,.�-c A*wlruwo Service District 1 OCT 1 0 2024 Duncan Fields ! KODIAKISLAND BOROUGH Fields Rentals Fr;.=WUR;NG � FAC!LITIE' 4022 Cliffside Rd. Kodiak, AK 99615 October 6, 2024 Re: Rent for use of Gravel/Salt Storage and Distribution Property Dear Service District 1 Board: As you are aware I own the property along Rezanof drive that the Service District has been using for gravel and salt storage and distribution. Initially, when the Service District first move materials and equipment on the property, it was communicated to be a "temporary" use. There was some additional clearing done and, generally speaking, the property was improved. Thinking back, that must have been 5 or 6 years ago. As I paid the increased property taxes on the property this year, I came to realize that I couldn't continue to have Service District 1 continue to use the property for free. I need to secure some income from the property. Consequently, I'd like to propose a lease to the Service District. I'm requesting that the Service District pay $1,000 per month in rent. The term of the lease could be month to month or for as long as the Service District would want, up to 5 years. If you have any questions regarding my request for the Service District to pay rent for the use of the sand/gravel/salt storage property please do not hesitate to contact me. Truly ours, uncan Fie s