USS 5509 TR 2 PORT LIONS - ZCP 3/28/2017Kodiak Island Borough
',► Community Development Department
710 Mill Bay Rd. Rm 205
Kodiak AK 99615
' Ph. (907) 486 - 9363 Fax (907) 486 - 9396
http://www.kodiakak.us
Zoning Compliance Permit
Property Owner / Applicant
Mailing Address:
Phone Number:
Other Contact email, etc.:
Print Form Submit by Email
19239
Permit No. BZ2017-Cqq
The following information is to be supplied by the Applicant:
City of Port Lions/ Kodiak Electric Association (lessee)
P. 0. Box 110, Port Lions, AK 99550/1614 Mill Bay Road, Kodiak, AK 99615
(907) 454-2332/(907) 486-7700
kathryn@arctic.net/Ishanley@kodiak.coop
Legal Description: Subdv: 2,420 sq. ft. leased site within Tract 2 of USS 5509 Block: Lot:
Street Address: NHN Kizhuyak Drive, Port Lions, AK 99550
Use & Size of Existing Structures: Lease area within the parcel is vacant. Other development on the parent parcel consists of utility
facilities (City water storage tank facility and a communication facility) situated approximately 1/2 mile to the north of the lease site.
Description of Proposed Action: Construction of an emergency power generation plant (utility facility) consisting of a 24' x 25' stor-
age building, a large diesel generator, associated transformers and load bank, and a 6' tall fence around the facility perimeter situated
within a 44' x 55' leased site as depicted on the attached site plan.
Site Plan to include: Lot boundaries and existing easements, existing buildings, proposed location of new construction, access points,
and vehicular parking areas.
Staff Compliance Review: Current Zoning: Conservation KIBC 17.50
Lot Area: Lease site = 2,420 sq. ft. Lot Width: 250'
Front Yard: 25 '
Prk'g Plan Rvw? Yes
Rear Yard: 25 '
# of Req'd Spaces: 3
PROP—ID 19239
Bld'g Height: 35'
Side Yard: 25 '
Staff Compliance Review Notes:
Plat/ Subdivision Requirements? A conditional use permit was approved for this utility facility (P&Z Case No. 17-009) subject to
the conditions of approval listed in the attached CUP approval letter dated September 28, 2016 (6' tall fence around facility perimeter and
no structure may be constructed closer than 55' from the centerline of the improved driving surface of Kizhuyak Drive). Proposed action
states fence will be constructed and site plane show structure distance requirement from Kizhuyak Drive is satisfied.
Subd Case No. Plat No. Bld'g Permit No. Remote area exemption
Does the project involve YES
an EPA defined facility?
*Commercial buildings, installations (military bases),
institutions (schools, hospitals) and residences with
more than four (4) dwelling units.
Driveway
Permit?
Septic Plan
Approval:
Fire
Marshall:
TBD by City of Port Lions
N/A
TBD by Fire Marshall
Proof of EPA notification provided (if required)? N / A
*Required for all demolitions, for renovations disturbing at least 160 square
feet, 2601inear feet or 35 cubic feet of Regulated Asbestos Containing Material (RACM), and
for renovations that remove a load -supporting structural member.
No permit will be issued for such projects without proof of EPA notification
Applicant Certification: 1 hereby certify that 1 will comply with the provisions of the Kodiak Island Borough Code and that I
have the authority to certify this as the property owner, or as a representative of the property owner. 1 agree to have identifiable
corner markers in place for verification of building setback (yard) requirements.
Attachments? Site Plan List Other: CUP approval letter. Site lease copy or agent authorization for KEA?
r � •i
Date:5 Z /� Signature:
This permit is only for the proposed project as described by the applicant. If there are any changes to the
proposed project, including its intended use, prior to or during its siting, construction, or operation, contact
this office immediately to determine if further review and approval of the revised project is necessary.
THIS FORM DOES NOT AUTHORIZE CONSTRUCTION WHEN A BUILDING PERMIT IS REQUIRED.
"EXPIRATION: Anyzoning compliance permit issued is subject to the same expiration, suspension, and revocation provisions as a
building permit issued for the same construction permit.**
CDD Staff Certification
Date: hf3 � J7 CDD Staff:
Payment Verification Zoning Compliance Perm' ee Payable in Cashier's Office Room # 104 - Main floor of Borough Building
After -the -Fact 2X the published amount
Not Applicable F $0.00 $0.00
Less than 1.75 acres: 0 $30.00 $60.00
1.76 to 5.00 acres: $60.00 E] $120.00
5.01 to 40.00 acres: $90.00 $180.00
40.01 acres or more: $120.00 $240.00 PAID
IIAR 2 8 2017
KODIAKIbU-MuWr MV.
ciniAwwrnCDA"fiF:nrr
PAYMENT DATE Kodiak Island Borough BATCH NO.
03/28/2017 710 Mill Bay Rd. 2017-00000560
COLLECTION STATION Kodiak, AK 99615 RECEIPT NO.
CASHIER 2017-00001026
RECEIVED FROM
CITY OF PORT LIONS/
KODIAK ELECTRIC
ASSOCIATION
DESCRIPTION
NHN KIZHUYAK DR PORT LIONS
CASHIER
Teresa Medina
PAYMENT CODE RECEIPT DESCRIPTION- TRANSACTION AMOUNT w
Zoning Compl
Zoning Compliance Permit
$30.00
BZ 2017- 074
Payments:
Type Detail Amount
Check 129764 $30.00
Total Amount:
$30.00
Customer Copy
Printed hv- Teresa Medina Pane 1 of 1 n3/2R/2n17 n2-13-59 PM
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September 28, 2016
City of Port Lions
P.O. Box 110
Port Lions, AK 99550
Kodiak Island Borough
Community Development Department
710 Mill Bay Road
Kodiak, Alaska 99615
Phone (907) 486-9363 Fax (907) 486-9396
www.kodiakak.us
Re: Case 17-009. Request Conditional Use Permit (KIBC 17.50.040.H and 17.200) to
construct an emergency power generation plant on a ± 2,500 sq. ft. leased
portion of Tract 2, U.S. Survey 5509.
Dear Sir or Madam:
The Kodiak Island Borough Planning and Zoning Commission at their meeting on
September 21, 2016, granted the conditional use permit request cited above, subject to
the following conditions:
1. To prevent entry by the general public, a six foot tall fence shall be constructed
around the perimeter of the site. Signs prohibiting entry by unauthorized personnel
shall be posted on the four outer sides of the fence.
2. No structure shall be constructed closer than fifty-five (55) feet from the center of the
improved driving surface of Kizhuyak Drive.
THIS APPROVAL DOES NOT ALLOW ANY CONSTRUCTION TO BEGIN. Zoning
compliance and/or a building permit must first be obtained. An approved conditional use
permit must be permitted within a two-year period to be valid. Please contact this office
for further details.
According to KIBC 17.200.080:
The commission's action may be appealed to the assembly by any party by filing a
written notice of appeal with the Borough Clerk within twenty (20) calendar days of the
Commission's decision. The notice of appeal must state the specific grounds for the
appeal and the relief sought by the appellant, and is accompanied by the $350 appeal
fee. Therefore, the Commission's decision will not be final and effective until twenty (20)
days following the decision.
This letter shall constitute the conditional use permit. Please bring it when you come to
our office to obtain zoning compliance for any construction on the property.
The Commission adopted the following findings in support of their decision:
FINDINGS OF FACT
1. The conditions of approval for this conditional use will ensure that the value, spirit,
character, and integrity of the surrounding area are maintained to the maximum
extent possible.
2. The conditional use fulfills all C -Conservation zoning district requirements.
Compliance with those requirements and the conditions of approval will be further
ensured during issuance of zoning compliance for the project
3. This facility will provide a service that will enhance public health, safety,
convenience, and comfort within the community of Port Lions. The project is
designed in accordance with acceptable engineering standards and will be
constructed, maintained, and operated in accordance with all applicable federal,
state, and local requirements. The conditions of approval will further ensure that the
facility is not harmful to the public.
4. The selected site fulfills all engineering requirements and the conditions of approval
will ensure sufficient setbacks, buffers, and other safeguards are provided.
5. The site is specifically located to maximize public benefit. The site provides better
protection from tsunamis and is located between the two main sections of the City.
The central location will more easily accommodate the provision emergency power
to the entire community during main power system failures.
If you have any questions about the action of the Commission, please contact the
Community Development Department at 486-9363.
Sincere ,
Sara Mason, Director
Community Development Department
CC: Nova Javier, Borough Clerk
Planning and Zoning Commission
P
GROUND LEASE AGREEMENT
NEW POWER PLANT SITE
THIS GROUND LEASE AGREEMENT ("the Lease), is made and entered into and
effective as of the %0 day of OGizffe/t- , 2016, by and between CITY OF PORT
LIONS, P.O. Box 110, Port Lions, Alaska 99550 (hereinafter referred to as "Lessor"), and
KODIAK ELECTRIC ASSOCIATION, Inc., P.O. Box 787, Kodiak, Alaska 99615
(hereinafter referred to as "Lessee"),
RECITALS
WHEREAS, Lessor is the owner of the surface estate of certain real property in Port
Lions, Alaska, which Lessee desires to lease for use as the new Kodiak Electric Association Power
Plant;
WHEREAS, the parties have agreed to the terms and conditions of the lease;
NOW, THEREFORE, in consideration of the foregoing and the mutual covenants
and promises herein contained and other good and valuable consideration, the receipt and
sufficiency of which is hereby acknowledged, the parties hereto covenant and agree as follows:
1. Demise; Description of Premises. Lessee leases from Lessor the following
real property:
Kodialt Island Borough Property ID # 19239 USS 5509 TR 2 Port Lions commonly known as
the new KEA Power Plant Site in Port Lions, Alaska, Kodiak Recording District, Third
Judicial District, State of Alaska ("the Premises"). Lessee accepts the Premises "AS -IS," with
all faults.
(such real property hereinafter referred to as the "Premises"). Lessee acknowledges and
agrees that the Premises are leased to Lessee as unimproved real estate with no improvements
included as part of the Lease. The rights granted under this Lease are subject to all exceptions,
agreements, easements, rights-of-way, conditions, covenants, reservations, terms, conditions, and
restrictions of record against the real property.
2. Use of Premises. Subject to the terms and conditions of this Lease, Lessee
shall use the Premises solely for the construction of the new KEA Power Plant, storage, operation,
repair, and maintenance of equipment and similar purposes. Lessee may erect improvements on the
Page 1 of 12
Premises. Lessee shall pay all costs associated with constructing, operating,. and maintaining the
improvements on the Premises, including any associated parking and access areas.
3. Term. The term of this Lease Pall be for thirty (30) years, commencing
on Neve—. ,7e— lir---,2016 and ending on 1V / , 2046 ("Term"). Lessee shall have the
option to renew this Lease for an additional thirty (30) year term by providing written
notification to the Lessor on or before the expiration of this Lease Agreement. For the term of
this Lease and any option period, Lessee shall have the sole and exclusive right of use of the
leased Premises.
4. Rental. Lessee covenants and agrees to pay Lessor rent in an amount
equal to One Dollar ($1.00) per year. The rent quoted is exclusive of any sales, franchise,
business, occupation, or other taxes based on rents, and should any such taxes apply or be
enacted during the term of this Lease, the rent shall be increased by such amount. Rent for
the term of the Lease is payable in advance. If the rent is not paid on or before the time it is
due, Lessor may reclaim the leased Premises and restrict Lessee's access to the Premises
until such time as all rent then owed has been paid. Should Lessee vacate the Premises
during the term of this Lease or any option period, no refund of the rent shall be due.
5. No Proration. It is not the intent of the parties that the lease payment for
the initial term or any option period shall be prorated in any manner.
6. Repair and Care of Premises. Lessee will permit no waste, damage, or
injury to the Premises. Lessee shall at all times use said Premises in accordance with, and
comply with, the laws of the State of Alaska and the ordinances of the appropriate city or
borough in which said Premises are located, and in accordance with all directions, rules, and
regulations of any public official or other proper officer of said city or borough at the sole cost
and expense of Lessee. At the expiration or sooner termination of this Lease, Lessee will quit
and surrender the Premises, and the Premises shall be returned to the Lessor in the same or better
condition as at the start of this Lease Agreement.
7. Site Examination. Lessor shall not be called upon to make any change or
improvement to the Premises, and the Lessee warrants and represents that it has examined the
Premises and the same is suitable for its intended use of the Premises. Lessor has no obligation
to repair, maintain or replace any structure located on the Premises. Lessee is responsible for all
such costs.
8. Accidents. All personal property kept on said Premises shall be so kept at
the risk of the Lessee. Lessor shall not be liable for theft or any damage, either to person or
property, sustained by the Lessee or others due to the Lessee's use of the Premises through this
Lease Agreement. Lessee agrees to defend and hold Lessor harmless from any and all claims for
damages suffered or alleged to be suffered on or about the Premises by any person, firm, or
GROUND LEASE AGREEMENT Page 2 of 12
NEW POWER PLANT SITE
corporation, and from any expenses incurred by Lessor with respect to such claim, except as
occasioned by the sole neglect of Lessor or Lessor's agents or employees.
9. Liens and Insolvency. Lessee shall keep the Premises that is the subject
of this Lease Agreement free from any liens arising out of any work performed, materials
furnished, or obligations incurred by Lessee. Lessee agrees, at its sole cost and expense, to
remove any lien filed against the Premises should said lien relate to any work performed,
materials furnished, or obligations incurred by Lessee. In the event Lessee becomes insolvent or
involuntarily bankrupt, or if any receiver, assignee, or other liquidating officer is appointed for
the business of Lessee, then Lessor may cancel this Lease at Lessor's option.
10. Indemnification.
(a) General. Lessee shall save, protect, hold harmless, indemnify and
defend Lessor, and Lessor's officers, directors, employees, and shareholders, of, from and against
any and all liability, damages, demands, penalties, fines, causes of action, losses, costs, or expenses,
including attorney fees, arising from any act, omission, or negligence of Lessee or the contractors,
subcontractors, licensees, agents, servants, employees, guests, invitees, visitors, or trespassers of
Lessee in or about the Premises or improvements located thereon, or arising from any accident,
injury or damages howsoever and by whomsoever caused, to any person or property, including but
not limited to damage to the Premises itself, improvements thereon, or injury to or death of persons,
occurring in or about the Premises or improvements located thereon, or in any manner arising out of
Lessee's use and occupation of the Premises or improvements thereon, or as a result of the condition
of the Premises or improvements thereon.
(b) Environmental.
(1) Review of Environmental Standards. Lessee shall abide by, and
shall cause its employees, agents, any contractors or subcontractors it employs, and its invitees
and guests to abide by, all applicable laws and regulations related to fire, safety, health and
environmental protection.
(2) Permits. Lessee shall prepare and submit any reports and apply
for and procure all permits or authorizations required to operate the Premises in full compliance
with any and all applicable or relevant federal, state, and local statutes or ordinances, rules and
regulations, financial responsibility requirements, permit conditions, and orders related to safety
and working conditions, transportation or disposal of Hazardous Substances, and environmental
protection.
(3) Restoration. Lessee shall take all steps necessary to adequately
restore the Premises as a result of any environmental damage, including, but not limited to, such
steps as may be required by applicable Environmental Law or valid order of a court or regulatory
agency.
GROUND LEASE AGREEMENT Page 3 of 12
NEW POWER PLANT SITE
(4) Hazardous Substances. Lessee shall transport and dispose of any
Hazardous Substances in accordance with all applicable laws. For purposes of this Lease, the
term "Hazardous Substance" means any flammables, explosives, radioactive materials, crude or
refined petroleum, pollutants, contaminants, or any hazardous, toxic, or dangerous waste,
substance, or material, including asbestos, defined as such in (or for purposes of) the
Comprehensive Environmental Response, Compensation, and Liability Act (42 U.S.C.A. Sec.
9601 et. seg.), any so-called "Superfund" or "Superlien" law, or any other Environmental Law,
including, but not limited to, Alaska Statutes Title 46, Chapters .03, .08 and .09, as now or at any
time hereafter in effect. For purposes of this Lease, the term "Environmental Law" means any
Federal, state, or local laws, ordinances, codes, regulations, rules, orders, or decrees, relating to,
or imposing liability or standards of conduct concerning the treatment, storage, use or disposal of
any Hazardous Substances.
(5) Indemnification: Hazardous Substances. Without limiting the
duty to indemnify as provided in (a) above, Lessee shall save, protect, defend, indemnify and
hold harmless Lessor from and against any and all demands, claims, causes of action (whether in
the nature of an action for damages, indemnity, contribution, government cost recovery or
otherwise), Iawsuits, settlements, actions, damages, fines, penalties, judgements, costs and
expenses (including without limitation costs of defense, settlement, and reasonable attorney's
fees), charges, forfeitures, liens, liabilities or loses of any nature and kind whatsoever, which
arise during or after the Term of this Lease from or in connection with the presence or suspected
presence of Hazardous Substances in the soil, groundwater, or otherwise on, above or in the
Premises, or otherwise generating from the Premises, or operations or activities thereon, or from
Lessee (or its employees, affiliates, parents, agents, contractors, subcontractors, sublessees,
guests, invitees, or assigns, and their respective employees, agents, contractors, subcontractors,
or subusers), or from any alleged or actual violation of an Environmental Law. This
indemnification includes, without limitation, costs incurred in connection with any investigation
of site conditions or any clean-up, remedial, removal, or restoration work.
(c) All of the foregoing indemnification, defense and hold harmless
obligations in (a) and (b) above shall survive the expiration or early termination of this Lease.
11. Condemnation. If all of the Premises or such portion as may be required
for the reasonable use of the Premises, are taken by eminent domain, this Lease shall automatically
terminate as of the date Lessee is required to vacate the Premises, and all rent shall be paid which is
due and owing through that date. In the case of a taking of less than that portion of the Premises
required for the reasonable use of the Premises, then this Lease shall continue in full force and
effect, and the rent shall be equitably reduced based upon the proportion of the square footage by
which the Premises is reduced, such rent reduction to be effective as of the date possession of such
portion is delivered to the condemning authority. Lessor reserves all rights to just compensation
and/or damage for any taking of the Premises, and Lessee hereby assigns to Lessor, and Lessee shall
GROUND LEASE AGREEMENT Page 4 of 12
NEW POWER PLANT SITE
make no claim against Lessor, for damages arising out of the condemnation, provided, Lessee shall
have the right to claim and recover from the condemning authority, to the extent permitted by law,
compensation for any loss to which Lessee may be put for the improvements, for Lessee's moving
expenses or for the interruption of or damage to Lessee's business, to the extent such damages may
be claimed and awarded separately from the damages and/or compensation awarded to Lessor.
12. Use, Occupancy and Care of the Leased Premises. At all times during the
Term hereof, Lessee shall, at Lessee's sole cost and expense:
(a) keep the Premises and improvements constructed thereon clean, safe and
orderly;
(b) conduct activities upon and generally maintain the Premises and
improvements in such a manner and with such care that injury to persons and
damage to property does not result therefrom;
(c) not use or permit any part of the Premises or improvements to be used for
any unlawful or unauthorized purpose nor perform, permit or suffer any act
or omission upon or about the Premises or improvements which would result
in a nuisance or a violation of any applicable laws, ordinances or regulations;
(d) comply with city, state, federal and other governmental laws, statutes,
ordinances, rules, orders, and regulations of whatever type and nature,
including but not limited to, zoning ordinances, health, fire, safety and
environmental laws and regulations which in any manner affect the leased
Premises, improvements, or activities thereon;
(e) not cause or permit any waste, damage or injury to the Premises or
improvements; and
(f) not vacate or abandon the Premises at any time during the Term hereof
13. Maintenance and Repair. Lessee covenants throughout the term hereof, at
Lessee's sole cost and expense, to properly keep the Premises and improvements in good
maintenance, repair, order and condition. Lessee acknowledges that Lessor has no responsibility to
maintain the Premises or improvements during the Term hereof.
14. Fixtures and Improvements. Lessee shall pay all costs associated with
locating, constructing, and maintaining all improvements and fixtures on the Premises, including the
associated parking, and access areas. All improvements and fixtures erected on or attached to the
Premises by Lessee that are not removed by Lessee shall become the property of Lessor. The
parties agree that this Lease shall constitute a quitclaim, by Lessee to Lessor, of all Lessee's right,
title, and interest in such improvernents and fixtures upon such termination or expiration. Lessee
further agrees, at the request of Lessor, to execute such other or further documents necessary to
GROUND LEASE AGREEMENT Page 5 of 12
NEW POWER PLANT SITE
transfer Lessee's interest in the improvements or fixtures should Lessor retain the improvements
and fixtures.
15. Surrender of Premises. Lessee on the last day of the Term, or upon earlier
termination of this Lease, shall peaceably and quietly leave and surrender the Premises in as good
condition as on commencement of the Term, ordinary wear and tear excepted.
16. Access. Lessor, Lessor's agents, employees, officers, and designees shall
have the right to enter the Premises at all reasonable times to inspect the same, to post "Notices of
Non -Responsibility", and to preserve and protect the Premises; provided, however, that Lessor shall
provide advanced notice to Lessee of such inspections and such inspections shall not interfere with
Lessee's use of the Premises.
17. Liens. Lessee shall keep the Premises and any part thereof free from liens
for labor or materials ordered or supplied upon the express or implied request of Lessee. Should
any such lien be recorded or should a lien be recorded by Lessee, Lessee shall forthwith and within
ten (10) days of learning of such recording cause the same to be cancelled and discharged of record
at Lessee's sole cost and expense.
18. Taxes. Real property taxes for the Premises shall remain the
responsibility of Lessor. However, should there be any increase in the assessment of real or
personal property taxes because of the personal property of Lessee situated on the Premises, the
additional cost and expense shall be borne by Lessee.
19. Holding Over. If Lessee shall remain in possession of said Premises after
the termination of this Lease or after the expiration of said Term without a proper extension or
renewal of this Lease, Lessee shall be deemed to occupy the Premises as a Lessee from month-to-
month.
20. Insurance.
(a) Liability and Property Damage Insurance. Lessee, at its own
expense, shall provide liability insurance at a limit of at least $1 million for injury or death to any
one person, naming Lessor as an additional insured. Lessee shall also be responsible for providing
any needed property or fire insurance on the furnishing used in the Premises.
(b) Fire Insurance. Lessor shall throughout the Term of this Lease,
maintain appropriate insurance against loss or damage by fire to the building(s).
21. Notices. Any and all notices required or permitted under this Lease, unless
otherwise specified in writing by the party whose address is changed, shall be as follows:
Lessor:
GROUND LEASE AGREEMENT Page 6 of 12
NEW POWER PLANT SITE
City of Port Lions
Attn: Kathryn Adkins
P.O. Box 110
Port Lions, Alaska 99550
Lessee:
Kodiak Electric Association, Inc.
Attn: Darron Scott, Chief Executive Officer
P.O. Box 787
Kodiak, Alaska 99615
22. Default.
A. The occurrence of one or more of the following events shall constitute a default
and breach of this Lease by Lessee:
(a) Violation or breach or failure to keep or perform any covenant,
agreement, term or condition of this Lease which shall continue or
not be remedied within fifteen (15) days (or if no default in payment
of rent is involved within thirty (30) days) after notice thereof is
given by Lessor to Lessee specifying the matter or matters claimed to
be in default.
(b) Filing by the Lessee in any court pursuant to any statute, either of the
United States or any state, a petition in bankruptcy or insolvency, or
for reorganization or for the appointment of a receiver or trustee of
all or a portion of the Lessee's property, or an assignment by the
Lessee for the benefit of creditors.
(c) The taking possession of the property of Lessee by any governmental
office or agency pursuant to statutory authority for the dissolution or
liquidation of the Lessee.
(d) An abandonment or vacation of the Premises by Lessee prior to the
expiration of the Term of this Lease.
(e) The use of the Premises for any purpose other than those specified in
Section 2.
B. Upon the occurrence of a default as defined in "A" above, Lessor may at
Lessor's option, declare Lessee's rights terminated and may re-enter the Premises and
improvements, using such force as is necessary, and without further notice, remove all persons and
property from the Premises and repossess Lessor of Lessor's former estate. In such case, Lessor
GROUND LEASE AGREEMENT Page 7 of 12
NEW POWER PLANT SITE
shall be deemed to have an immediate right to possession of the Premises and improvements (if
Lessor so desires) and Lessee shall peacefully surrender the same. No judicial action shall be
necessary to effect such termination.
C. Such re-entry and termination notwithstanding, the liability of Lessee for
payment of all amounts required to be paid by Lessee under this Lease, including payment of the
full rental provided herein for what would otherwise have constituted the balance of the Term of
this Lease shall not be extinguished and Lessee shall make good to Lessor the expenses and
damages suffered by Lessor as a result of the default, repossession and reletting, including without
limitation, legal expenses, renovation expense, alteration expense, and any rental deficiency
resulting from the inability to relet the Premises or reletting at a lesser rate.
Lessor may, but shall not be obligated to, relet the Premises or any part
thereof in the name of the Lessor, or otherwise, for such term (which may be greater or less than the
period which would otherwise have constituted the balance of the Term of this Lease) and on such
conditions as Lessor may determine appropriate, and may collect and receive the rent therefrom;
Lessor shall not be responsible or liable for any failure to relet the Premises, or any part thereof, or
for any failure to collect any rent due upon any such reletting.
D. In the event of default, as defined in subparagraph A, Lessor shall have such
further and additional rights as are provided by law or equity.
23. Cure of Default by Lessor. Lessor may, at the expense of Lessee, cure any
default by Lessee hereunder, but shall not be required to do so. Lessee shall reimburse Lessor for
all amounts expended in connection therewith, - including attorney's fees and other incidental
expenses. Such amounts, together with interest at the maximum lawful rate of interest, shall be
deemed additional rent payable within thirty (30) days of notification that such amount is due.
24. Costs Upon Default. In the event a party shall be in default in the
performance of any of its obligations under this Lease and an action shall be brought for the
enforcement thereof, the defaulting party shall pay to the other party all the expenses incurred
therefor, including reasonable attorney's fees.
25. Discretionary Termination.
This Lease may be terminated at any time by the mutual written consent of the parties hereto.
26. Attorneys' Fees, Costs and Expenses. In the event either party brings or
commences legal proceedings to enforce any of the terms of this Lease, the successful party in such
action shall receive from the other, in every action commenced, a reasonable sum for attorneys' fees
and costs to be fixed by the court in the same action.
GROUND LEASE AGREEMENT Page 8 of 12
NEW POWER PLANT SITE
27. Rights and Remedies. No right or remedy herein conferred upon or
reserved to a party hereunder is intended to be exclusive of any other right or remedy, and such and
every right and remedy shall be cumulative and in addition to any other right or remedy given
hereunder, or now or hereafter existing at law or in equity or by statute.
28. Assignment and Subletting. Except as provided in this Section, Lessee
shall not sublet, mortgage, pledge or assign its rights under this Lease without the prior written
consent of Lessor, which consent may be withheld in Lessor's sole and absolute discretion, and any
purported sublease, mortgage, pledge or assignment without such consent shall be null and void and
of no force or effect, provided that Lessee shall be authorized to mortgage its interest in this Lease
to a bank in conjunction with any financing of Lessee's business.
29. Waiver and Forbearance. No waiver by a party hereto of any breach by
the other party of any of its obligations, agreements or covenants hereunder shall be deemed to be a
waiver of any subsequent breach of the same or any other covenant, agreement or obligation. Nor
shall any forbearance by a party to seek a remedy for any breach of the other party be deemed a
waiver by the first party of its rights or remedies with respect to such breach.
30. Successors in Interest. This Lease shall be binding upon and inure to the
benefit of the respective heirs, successors and permitted assigns of the parties hereto.
31. Applicable Law. This Lease Agreement shall be construed and enforced in
accordance with the laws of the State of Alaska.
32. Authority. Lessee covenants and acknowledges that it has the full,
complete and absolute authority to enter into this Lease; this Lease is a binding and enforceable
agreement of and against Lessee; and the person executing the Lease on Lessee's behalf is duly and
property authorized to do so.
33. Recording. Either party may record this Lease.
34. Entry. Lessor will not have the right to enter the Property during the term
of the Lease without Lessee's permission, which permission will not be unreasonably withheld.
Lessee will grant permission to enter the Premises if entry is reasonably necessary for Lessor to
protect its interests, perform its obligations under this Lease, or to comply with a federal, state, or
local law, regulation, or directive. In addition, Lessor shall have the right to enter the Property in
emergencies.
35. Miscellaneous Provisions.
(a) This Lease constitutes all of the agreements and conditions made
between the parties and may not be modified orally or in any manner other than by an agreement in
writing signed by both parties or their respective successors in interest.
GROUND LEASE AGREEMENT Page 9 of 12
NEW POWER PLANT SITE
(b) Each term and such provision of this Lease shall be construed to be both
a covenant and a condition of this Lease.
(c) Time is of the essence in each term and provision of this Lease.
IN WITNESS WHEREOF, the undersigned have caused this Ground Lease
Agreement to be executed effective as of the date and year hereinabove first written.
LESSOR:
CITY OF PORT LIONS
M.
Its:
LESSEE:
KODIA 71C ASSOCIATION, INC.
By: //
Its: fi eI rJP.•�r /Ggo
GROUND LEASE AGREEMENT Page 10 of 12
NEW POWER PLANT SITE
STATE OF ALASKA
THIRD JUDICIAL DISTRICT
ACKNOWLEDGMENTS
ss:
THIS IS TO CERTIFY that on the a day of Q
undersigned, a Notary Public in and for the State of Alaska, ersonall a 2016 before me, the
me known and known to me to be the ` P Y Ppeared , .
Of CITY OF POT LIONS, /the city
named in the foregoing Ground Lease Agreem nt, and he acknow edg d to me hat he executed the
foregoing Ground Lease Agreement on behalf of said corporation for the uses and purposes therein
stated.
above written. WITNESS my hand and notarial seal on the date and year in this certificate first
KA11 1 THRYN E :i KINS
T'l public, State of Alaska
Commission # 1405234
tvly Commtssion Expires
June 17, 2018
STATE OF ALASKA )
THIRD JUDICIAL DISTRICT ) ss.
NOTARY P IC in and fl Alaska
My commission expires:
IS IS
undersigned, a HNotary TO CERT
¢n that nthe AD�� day of
and for the State of
-��4��2016, before me, the
101 J
W '-�W* to me known and known to me to be the Kaska' personally appeared
KODIAK
ELECTRIC ASSOCIATION, INC., the corporation named in the foregoing Groound Lease
Agreement, and he acknowledged to me that he executed the foregoing Ground Lease Agreement
on behalf of said corporation for the uses and purposes therein stated.
WITNESS my hand and notarial seal on the date and year in this certificate first
above written. `������Fr(? •
GROUND LEASE Ad•IZAT
NEW POWER PLANT SITE
e `
NOTARY ' BLIC in d for AI ka
d
My commission expires: 20
Page 11 of 12
(b) Each term and such provision of this Lease shall be construed to be both
a covenant and a condition of this Lease.
(c) Time is of the essence in each term and provision of this Lease.
IN WITNESS WHEREOF, the undersigned have caused this Ground Lease
Agreement to be executed effective as of the date and year hereinabove first written.
LESSOR:
CITY OF PORT Lo
LESSEE:
K07M;
ASSOCIATION, INC.
By:
Its:
GROUND LEASE AGREEMENT
NEW POWER PLANT SITE
Page 10 of 12