FY2014-38 Lease Agreement with ADF&G Pillar Creek Hatchery TractA
L 2014-400720-0
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S Recording District 303 Kodiak
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KODIAK ISLAND BOROUGH
710 MILL BAY ROAD
KODIAK, ALASKA 9961.5
LEASE AGREEMENT
This lease agreement made on the day, month and year last herein specified, by and between the
Kodiak Island Borough, a municipal corporation existing under the laws of the State of Alaska,
whose mailing address is 710 Mill Bay Road, Kodiak, Alaska 99615, hereinafter "KIB", and the
State of Alaska, Department of Fish and Game, Division of Administrative Services (ADl«&G),
whose mailing address is P.O. Box 115526, Juneau, AIaska 99811-5526, hereinafter
"TENANT", was authorized by the Borough Assembly at the regular meeting on April 18, 2013
by Resolution No. 1~Y 2013-30.
For and in consideration of the mutual covenants and agreements hereinafter stated, the KIB
does hereby agree to lease to TENANT the real property described below on the following terms,
covenants, and conditions.
1. Property. The real property to be leased is legally described as follows:
Pillar Creek Hatchery Tract, consisting of 6.6 acres, according to Plat ##2014-8, Kodiak
Recording District, Alaska as depicted in Appendix A, and including easement
reservations to the State of Alaska described in Appendix B, both of which appendices
are attached and made a part hereof.
2. Term. TENANT shall be entitled to possession of the demised real property for a term of
twenty-five (25) years commencing on May 15, 2014, and ending at midnight on May 14,
2039, unless sooner terminated as provided herein,
TENANT shall have the option to extend the initial term of the Iease for up to two (2)
additional five (5) year periods on the same terms and conditions. TENANT may exercise
this option by providing written notification to the KIB at least sixty (60) days prior to the
effective date of termination of this lease agreement or any extension thereof.
3. Rental. TENANT shall pay to KIB the sum of one dollar ($1.00) on or before June 1 of
each year during the term hereof. The rent may be prepaid in full at the time of the signing
of the lease.
4. Land Use. The real property leased shall only be used for fish hatchery purposes and
related activities. No residential structures other than those required by the TENANT and
his employees are permitted. No additional structures are to be erected without written
permission of the KIB.
5. Maintenance of Premises. TENANT shall, at all times, keep and maintain the entire
premises in good repair and in a neat, orderly and sightly condition. TENANT shall provide
proper road maintenance to all facilities associated with the fish hatchery. TENANT shall
not cause or permit any litter, debris, scrap or other materials not having a recognized
commercial value, or usable by TENANT in his business, including garbage, to be
accumulated or stored upon the leased premises. TENANT agrees not to store any items on
the leased premises which do not belong to it. Any abandoned vehicles present on the
property shall be removed by the TENANT not later than ten (10) days after termination of
this lease.
6. Mineral Rights. No mineral rights accrue to the TENANT by the operation of this lease.
7. Riplrt-of--Way. TENANT agrees that the City of Kodiak shall at all times have access to
City reservoirs, pumps, waterlines and future city property on or near the Ieased property.
KIB expressly reserves the right to grant easements or rights-of-way across the land herein
leased if it is determined to be in the best interest of the KIB to do so, and if it is not
detrimental or inconsistent with the TENANT's use. TENANT shall be compensated for all
improvements which are damaged or destroyed as a result of such easements or rights-of-
way.
ights-ofway.
8. Waste. TENANT shall not commit waste or injury upon the real property leased herein.
9. Laws and Regulations. TENANT shall abide by all federal, state and local laws and
regulations including the provisions of the Kodiak Island Borough code dealing with
Buildings (Title 15), Subdivisions (Title 17), and Borough Real Property (Title 18).
TENANT shall acquire all necessary permits prior to development of the site.
10. Inspection. KIB, through authorized employees, may inspect the leased premises at any
reasonable time.
11. Subleasing. TENANT shall not sublease all or any portion of the real property herein
demised without first obtaining the written consent of the KIB; provided, however, that
Juli�si�ic?ii�
TENANT may contract for the operation or cooperative operation of the fish hatchery if
authorized by law.
12. Assignment. TENANT shall not assign this lease or the real property, or portion thereof,
herein demised without first obtaining the written consent of the KIB.
13. Modification. This lease may not be modified orally or in any manner other than by an
agreement in writing signed by both of the parties hereto.
14. Termination and Cancellation. This lease may be cancelled, in whole or in part, under
one or more of the following conditions:
A. While in good standing by the mutual agreement in writing of both parties hereto;
B. If issued in error with respect to material fact;
C. If the leased premises are being used for any unlawful purposes;
D. If the TENANT is in default for more than thirty (30) days as provided in Section 15
following;
E. If operational funds are not appropriated for this site by the State of Alaska,
TENANT may terminate lease by giving KID not less than, thirty (30) days written
notice.
15. Default. If the TENANT should default in the performance of any of the terms, covenants
or stipulations herein contained, or violate any of the regulations or ordinances of the
Borough, and said default shall not be remedied within thirty (30) days after written notice
of such default has been served upon the TENANT by the KIB, the TENANT shall be
subject to such legal action as the KIB shall deem appropriate, including, the right of KIB to
immediately reenter and repossess the property with or without judicial process, and
TENANT covenants and warrants that upon demand TENANT will surrender and deliver
quiet possession of the premises to KIB. No improvement may be removed by the TENANT
during any period in which this lease is in default. In the event that this lease shall be
terminated because of a breach of any of the terms, covenants or stipulations contained
herein, the improvements made by the TENANT shall be retained by KIB as liquidated
damages.
16. Notice. Any notice or demand which must be given or made by the parties hereto shall be
in writing and shall be completed by sending such notice or demand by certified mail to the
address which follows:
i�uamz�ar�n!iR�ai�
Borough Manager
Kodiak Island Borough
710 Mill Bay Road
Kodiak, Alaska 99615
Alaska Department of Fish & Game
Division of Administrative Services
Procurement Section
P.O. Box 115526
Juneau, Alaska 99811-5526
17. Surrender of Premises. Upon the expiration, termination or cancellation of this lease,
unless the same has been reinstated, the TENANT shall quietly and peaceably leave,
surrender and yield up to the KIB, all of the leased land on the date of expiration,
termination or cancellation. TENANT agrees to remove all improvements from the lease
premises upon the expiration, termination, or cancellation of this lease, to reseed the
property and to return it to a natural state.
18. Non -Waiver. The receipt of rent by the KIB, with or without knowledge of any breach of
the lease by the TENANT, or any default on the part of the TENANT in observance or
performance of any of the conditions or covenants of this lease, shall not be deemed to be a
waiver of any provision of this lease. No failure on the part of the KIB to enforce any
covenant or provision herein contained nor any waiver of any right hereunder by the KIB,
unless in writing, shall discharge or invalidate such terms or covenants or affect the right of
the KIB to enforce the same in the event any subsequent breach or default.
19. Assumption of Risk,• Waiver of Claims. The TENANT hereby assumes full responsibility
for any and all risk of bodily injury, death or property damage caused by or arising out of
the intentional acts, omissions or negligence of the TENANT (and those of its officers,
agents and employees) or arising out of or related to the TENANT's use of or presence on
the premises described in this lease, and waives any claims (of any kind, including attorney's
fees) against KIB for any claim, loss or damage arising out of negligent acts of the
TENANT arising out of TENANT's use or presence on the premises described in this lease.
The parties agree to notify each other of any claim, demand, or lawsuit arising out of or
affecting the TENANT's occupation or use of the premises. Both parties will fully cooperate
in the investigation and litigation of any claim, demand, or lawsuit affecting the premises.
20. Severability. If any clause or provision herein contained shall be adjudged to be invalid by
a court of competent jurisdiction, it shall not affect the validity of any other clause or
provision of this lease, or constitute any cause of action in favor of either party as against
the other.
iVf�IVMI�f
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AGREED TO THIS / day of I niter, 2014, at Kodiak, Alaska
KODIAr SLOUGH
By: Z'X3
�,u
Charles E. Cassidy
Borough Manager
STATE OF ALASKA
ss
THIRD JUDICIAL DISTRICT
THIS IS TO CERTIFY that on the �_ day of MC'IV2014,. before me the
undersigned, a Notary Public in and fo the State of Alaska, duly commissioned and sworn as
such, personally appeared _ _CG1r,;� s ('a"C"�4v . , to me known
to be the Manager of the Kodiak Island Borough, a municipal corporation, and known to me
to be the person who executed the within instrument on behalf of the corporation herein
named, and acknowledged to me that he executed the same as a free act and deed of the said
corporation for the uses and purposes herein stated.
1-f-flWESS Ir 1:11 1! notinial seal the day 11year first abovewritten,
AQ-;
Notary Public in and for Alasw
My commission expires:
Cq-)
• �1� i
AN
i
After recording, return to:
Alaska Department of Fish & Game
P.O. Box 115526
Juneau, Alaska 99811-5526
AT TN: Procurement, Lands and Leasing Coordinator
I'INffVlPage 5 of 8
��l�Y�pIV�Hf�Y!tl 1
2014-000720.0
1
ALASKA DEPARTME T OF FISH & GAME
By:
John 'te
Proc ement Officer
STATE OF ALASKA
ss
FIRST JUDICIAL DISTRICT
THIS IS TO CERTIFY that on the_ day of��/� , 2014, before me the
undersigned, a Notary Public in and for the State of Alaska, duly commissioned and sworn as
such, personally appeared _, dz to me known
to be the Procurement. Manager for the Alaska Department of Fish and Game, and who
executed the foregoing instrument, and acknowledged to me that he executed the same as a
free act and deed of the Alaska Department of Fish and Game, a. department of the State of
Alaska.
WITNESS my hand and notarial seal the day d year f rst ve wri
4
r
.. Notary Publi or Alaska
STATE OF ALASKA My commission expires: 4�_
oFFICiAL SEAL
Christopher A_ Lewis w +
NOTARY PUBLIC
My Commission Expires Mth Office
After recording, return to:
Alaska Department of Fish & Game
P.O. Box 115526
Juneau, Alaska 99811-5526
ATTN: Procurement, Lands and Leasing Coordinator
!',IPI�n��YdIVIA�IHlllli4ltl
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KODIAK PILLAR CREEK
FISH HATCHERY LEASE AREA
DIVISION OF COMMERCIAL FISHERIES
ALASKA DEPT. FISH AND GAME
APPENDIX A
PLAT NO. 2014-8
'� IV11�I IIII BI�IYR!liliv� B Ilf I!V l
Page 7 of 8
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STATE OF ALASKA EASEMENTS
9 9 PKIffWO.
There is reserved to the State of Alaska an easement on the bed and 50 feet upland of the
ordinary high water mark of Pillar Creek for the purpose of public access, habitat protection, and
the protection of scenic values.
There is reserved to the State of Alaska, for the benefit of the Department of Fish and Game,
Division of Commercial Fisheries, its successors and assigns, a utility easement for the water -
supply infrastructure that provides water to the Pillar Creek Hatchery under authority of water
appropriation permits LAS 7247 and LAS 11794. Said infrastructure includes one eight inch
gravity -feed water pipeline, two water wells, and associated piping and power facilities. Said
easement, 30 feet in width, diameter or dimension, shall attach to and include all water -supply
infrastructures. Upon a determination by the Department of Natural Resources, Division of
Mining, Land and Water that the aforesaid authority to appropriate water has been relinquished
or revoked, this reservation with respect to the appurtenant infrastructure, shall terminate and be
of no force or effect.
I61f f�I�����tl91�IIIVI�
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2014-000720-0
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Introduced by:
Borough Manager
Requested by:
Kodiak Regional Aquaculture
Association
Drafted by:
Community Development Acting
Director
Introduced on:
04/18/2013
Adopted on:
04/18/2013
KODIAK ISLAND BOROUGH
RESOLUTION NO. FY 2013-30
A RESOLUTION OF THE KODIAK ISLAND BOROUGH ASSEMBLY
ACCEPTING THE RECOMMENDATION OF THE PLANNING AND ZONING
COMMISSION APPROVING DISPOSAL BY LEASE OF CERTAIN BOROUGH LAND
AS SURPLUS TO THE PUBLIC'S NEED (P&Z CASE 13-022, PILLAR CREEK)
WHEREAS, Kodiak Island Borough Code (KIBC) 18.20.030 requires each proposed
disposal of Borough land to be reviewed by the Planning and Zoning Commission before
submission to the Assembly; and
WHEREAS, the Planning and Zoning Commission is required under KIBC 18.20.030 to
make a recommendation on the disposal(s) by resolution before it is forwarded to the
Borough Assembly; and
WHEREAS, the principal purpose of the Commission review is to determine if the land
identified for disposal is surplus to the Borough's need; and
WHEREAS, the parcel proposed for disposal by the Borough Resource Management
Officer has not previously been considered for disposal by the Borough Assembly; and
WHEREAS, the Planning and Zoning Commission has found that the parcel identified
below for disposal is surplus to the public's need based on its review; and
WHEREAS, the new lease area would have the benefit of including all hatchery
infrastructure as well as providing better access to Pillar Creek, the site of hatchery coho
salmon stocking; and
WHEREAS, the Planning and Zoning Commission held a public hearing on March 20,
2013 and is recommending the disposal of the parcel listed below.
NOW, THEREFORE BE IT RESOLVED, THAT THE ASSEMBLY OF THE KODIAK
ISLAND BOROUGH THAT:
Section 1: The Kodiak Island Borough Planning and Zoning Commission, in
accordance with Title 18 of the Kodiak Island Borough Code, recommends
disposal of the borough's interest in the following parcel of land comprising
2.61 acres of property described as a 2.61 acre, more or less, portion of
Kodiak Island Borough, Alaska Resolution No. FY2013-30
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Tract E, BLM Tract D, within Section 30, Township 27 South, Range 19
West, Seward Meridian.
Section 2: The Kodiak Island Borough Planning and Zoning Commission, in
accordance with Title 18 of the Kodiak Island Borough Code, has
determined after a public hearing on March 20, 2013, that the
aforementioned property is hereby surplus to the public's need.
Section 3: The aforementioned parcel should be offered to the Kodiak Regional
Aquaculture Association by lease for less than fair market value which will
allow the use of the land for a public purpose beneficial to the Borough.
ADOPTED BY THE ASSEMBLY OF THE KODIAK ISLAND BOROUGH
THIS EIGHTEENTH DAY OF APRIL, 2013
ATTEST:
L !l
Nova M. Javier, MMC, B ugh Clerk
Kodiak Island Borough, Alaska
KODIAK ISLAND BOROUGH
Jer rile M. Selby,
Resolution No. FY2013-30
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