1997-28 Approving a Lease Agreement Between the Kodiak Island Borough and the Alaska Department of Fish and Game for a Portion of the Near Island Research Facility.KODIAK ISLAND BOROUGH
RESOLUTION NO. 97 -28
Introduced by: Mayor Selby
Requested by: Mayor Selby
Drafted by: Borough Attorney
Introduced: 07/17/97
Adopted: 07/17/97
A RESOLUTION APPROVING A LEASE AGREEMENT BETWEEN THE KODIAK
ISLAND BOROUGH AND THE ALASKA DEPARTMENT OF FISH AND GAME
FOR A PORTION OF THE NEAR ISLAND RESEARCH FACILITY.
WHEREAS, the Kodiak Island Borough assembly on September 7, 1995 adopted
Resolution No. 95 -37 accepting the transfer of responsibility for construction of the
Near Island Research Facility and establishing a plan for completion of the facility; and
WHEREAS, the Alaska Department of Fish and Game (ADF &G) conducts fisheries
research that is valuable to the residents and economy of the Kodiak Island Borough;
and
WHEREAS, the Alaska Department of Fish and Game desires to lease a portion of the
Near Island Research Facility from the Borough, subject to the terms and conditions
contained in the "Lease Agreement " that has been approved by both parties and
subject to approval by the assembly; and
WHEREAS, the assembly is authorized by the provisions of Kodiak Island Borough
Code 18.20.100 to approve by resolution a negotiated lease to the State of Alaska
for a public purpose beneficial to the Borough;
NOW, THEREFORE, BE IT RESOLVED BY THE ASSEMBLY OF THE KODIAK ISLAND
BOROUGH the lease of a portion of the Near Island Research Facility to the Alaska
Department of Fish and Game is hereby approved on the terms and conditions of the
Lease Agreement.
NOW, THEREFORE, BE IT FURTHER RESOLVED BY THE ASSEMBLY OF THE KODIAK
ISLAND BOROUGH that the mayor, or his designee, is authorized to execute the
Lease Agreement and all other documents required for the completion of this
transaction.
Kodiak Island Borough, Alaska Resolution No. 97 -28
Page 1 of 2
ATTEST:
ADOPTED BY THE ASSEMBLY OF THE KODIAK ISLAND BOROUGH
THIS SEVENTEENTH DAY OF JULY, 1997
1- _- '4 :71,YE/. 7; %d) ) LLz =%j
Donna F. Smith, CMC /AAE, Borough Clerk
KODIAK ISLAND BOROUGH
Jero ' ;e M. Selby, Borou
Robin Heinrichs, Presiding Officer
Kodiak Island Borough, Alaska Resolution No. 97 -28
Page 2 of 2
LEASE AGREEMENT
LEASE CH-248
THIS LEASE AGREEMENT is made this 18th day of July 19 97 by and
between KODIAK ISLAND BOROUGH, a borough organized under the laws of the State of
Alaska, hereinafter called Landlord, and the Alaska Department of Fish and Game, hereinafter
called Tenant.
For and in consideration of the covenants, payments and demises, and upon the terms and
conditions hereinafter set forth, the parties agree as follows:
1. Premises. Landlord, for and in consideration of the payments, covenants and conditions
hereinafter specified to be paid, performed and observed by Tenant, does hereby let, lease and
demise to Tenant the improved real estate located in the Kodiak Recording District, Third Judicial
District, State of Alaska, more particularly described in Exhibit A, attached hereto and by this
reference made a part hereof, together with the use of common areas including but not limited to
access thereto, stairwells, hallways and three (3) reserved parking spaces.
The aforesaid building space, hereinafter referred to as the leased premises, is more specifically
depicted or outlined on the floor plan attached hereto in Exhibit A.
2. Term of Lease. The term of the lease shall be for the period of twenty (20) years following the
commencement of the term, unless sooner terminated as hereinafter provided. The term of the
lease shall commence on October 1, 1998, or upon completion and occupancy of the facility,
whichever occurs later, and shall expire at 5:00 P.M., Alaska Standard Time, on September 30,
2018, or a date twenty years following occupancy, whichever occurs later.
In the event the foregoing commencement provision results in a commencement date other than
on the first day of a calendar month, the payments shall be immediately paid for such initial
fractional month prorated on the basis of a thirty (30) day month.
Tenant shall have the option to extend the initial twenty (20) year term of this Agreement for up
to two (2) additional five (5) year period on the same terms and conditions. Tenant may exercise
this option by providing written notification to Landlord at least sixty (60) days prior to the
effective date of termination of this Agreement or any extension thereof.
Landlord is presently having a building constructed on the premises demised by this lease
agreement. The building is being erected and constructed in accordance with the specifications
and plans contained in Exhibit A attached to and made part of this lease agreement, and is
scheduled for completion on or before October 1, 1998, the date this 20 -year lease is scheduled to
commence.
The failure by Landlord to have the building ready for occupancy by the above- stated date shall
not void or terminate this lease agreement, but the payments specified in Section 3 shall be abated
in full during the entire period between the scheduled commencement of this lease agreement and
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LEASE #IH -248
fifteen (15) days after Tenant is notified by Landlord that the demised premises are ready for
occupancy.
Payments and the terms of this lease agreement shall be calculated from the date the demised
premises are deemed ready for occupancy, but not sooner than the 16th day following notification
as stated above.
The demised premises shall be considered ready for occupancy when (1) all work on the
construction of the building has been substantially completed including final installation of
equipment and painting, (2) all interior utility fixtures and equipment have been installed and the
premises are ready for utility service connections to be made, (3) all access and service routes and
areas, and the parking surfaces are substantially completed and in usable condition, (4) a
certificate of occupancy has been issued by the building official and (5) notice has been provided
to Tenant, with a copy of the certificate of completion, that the premises are ready for occupancy
by Tenant.
3. Payments. (a) Minimum Annual Payment. In consideration of the demise and leasing of the
premises aforesaid by Landlord, the Tenant covenants, stipulates and agrees to pay to the
Landlord as total payment for use of said premises herein above described, at the rate per the
schedule attached hereto as Exhibit B. Terms and conditions of this lease are subject to
availability to the Tenant of funds appropriated by the legislature. If such funds are not available,
the Tenant may terminate this lease by giving the Landlord not less than thirty (30) days prior
notice in writing.
All payments, unless and until otherwise directed in writing by Landlord, shall be paid to the
Landlord at 710 Mill Bay Road, Kodiak Alaska 99615, or at such other place as Landlord may
designate from time to time in writing.
Tenant shall pay to Landlord, as part of the payment described above, Tenant's proportionate
share of all common area expenses. For the purpose of this Section, the term "common area
expenses" means Landlord's total costs and expenses incurred in owning, operating, maintaining
and repairing the common areas, including without limitation, costs for all electricity, gas, water
or fuel used in connection with the operation, maintenance, use and repair of the common areas;
the amount paid for all electricity furnished to the common areas to light the parking lots or for
any other purpose; the costs of patching, repairing, repaving or restriping the parking lots; the
amount paid for all labor and/or wages and other payments including costs to Landlord of
worker's compensation and disability insurance, payroll taxes, welfare and fringe benefits made to
janitors, employees, contractors and subcontractors of Landlord involved in the operation and
maintenance of the common areas; managerial, administrative and telephone expenses related to
operation and maintenance of the common areas; the total charges of any independent contractors
employed in the care, operation, maintenance, cleaning and landscaping; the amount paid for all
supplies, tools, replacement parts of components, equipment and necessities which are occasioned
by everyday wear and tear, the amount paid to maintenance reserve based on projected
replacement of building components; the amount paid for premiums for all insurance required
from time to time by Landlord or Landlord's mortgages and the pro rata costs of machinery and
equipment purchased or leased by Landlord to perform its common area maintenance obligations.
To the extent that Landlord elects to provide services which are not separately metered or directly
billed to Tenant, such as water and trash hauling, the costs of such services shall be included in
common area expenses. Common area expenses shall not, however, include interest on debt or
capital retirement of debt. Suitable adjustments in common area expenses incurred shall be made
in the determination of Tenant's proportionate share for any period during the lease term which is
less than a full calendar year. Payments by Tenant on account of Tenant's proportionate share of
the common area expenses are incorporated into the payments specified in Exhibit B.
Tenant shall pay to Landlord as part of the payments described above, Tenant's proportionate
share of all services costs for the Demised Premises used exclusively by the Tenant. "Services"
means Landlord's total costs and expenses as described above under Common Area Expenses.
4. Alteration of Premises. Tenant shall not make any alterations, additions or improvements in
or to the leased premises without first obtaining the written consent of Landlord. Such consent
shall not be unreasonably withheld. Any such alterations, additions and improvements approved
by Landlord shall be made at Tenant's expense. Tenant shall secure all governmental permits
required in connection with such work, and shall hold Landlord harmless from all liability and
liens resulting therefrom. All alterations shall remain the property of the Tenant and may be
removed at the termination of this agreement. If the Tenant elects to remove said improvements,
the Tenant will return the building to its original condition, less allowance for wear and tear. The
Landlord may require removal of all or part of alterations by Tenant at the termination of the
lease, at Tenant's expense, and Tenant shall pay for or repair any damages to the leased premises,
including without limitation, any necessary patching, repainting and repairing caused by such
removal. Any trade fixtures, appliances, equipment or other property not removed from the
leased premises by Tenant upon termination of the lease shall be deemed abandoned by Tenant,
provided that Tenant shall save Landlord harmless from any loss, cost, or damage arising from
Tenant's failure to remove such items.
5. Use of Premises. The leased premises shall be used for the purpose for which they were
designed as described in Exhibit A and for no other purpose, without the prior consent of
Landlord. Tenant shall not use or permit the leased premises or any part thereof to be used for
any purpose in violation of any municipal, borough, state, federal or other governmental law,
ordinance, rule or regulation. Tenant agrees that Tenant, together with all other persons entering
and/or occupying the leased premises at Tenant's request or with Tenant's permission, will abide
by, keep and observe all reasonable rules and regulations which Landlord may make from time to
time for the management, safety, care and cleanliness of the building, and the preservation of good
order therein, as well as for the convenience of other occupants and tenants of the building, and
for the use of any parking areas adjacent to the building. The Tenant shall install all equipment in
accordance with all applicable codes and only with prior written consent of Landlord, which shall
not be unreasonably withheld. Tenant shall not use the leased premises, or any machinery or
equipment therein, in such a manner as to cause substantial noise or vibration, or unreasonable
disturbance to other tenants in the building.
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LEASE CH-248
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LEASE #IH -248
In the event Tenant's use of the leased premises causes a documented increase in Landlord's fire
or hazard insurance premiums, Tenant shall reimburse Landlord for the amount of such increase.
6. Utilities. Landlord shall furnish at its expense, the following utilities and services for normal
use of the leased premises:
(a) Electricity for normal lighting, air conditioning, and laboratory use. Adjustments for
utilities as a result of equipment not planned for in the original design shall be negotiated
at the time approval to modify the building is requested.
(b) Heat, snow removal for common areas, and sewer and water based on normal laboratory
use.
(c) Janitorial service for the leased premises on a five -day a week basis, and periodic exterior
window washing.
(d) Refuse collection based on normal laboratory use. Tenant shall provide at his expense all
other utilities and services used at the leased premises.
Landlord shall not be liable for any loss or damage caused by or resulting from any variation,
interruption or failure of said utilities or services, arising from any cause, condition or event; and
no variation, interruption or failure of such utilities and services incident to the making of repairs,
alterations, or improvements, or arising from any accident, strike, condition, cause or event in
whole or part beyond the reasonable control of Landlord shall be deemed an eviction of Tenant or
relieve Tenant from any obligation hereunder, unless the demised premises are deemed
untenantable, in which case rent shall be abated until the premises are again tenantable.
7. Maintenance and Repairs. Landlord shall, at its expense, maintain and keep in good repair
the foundations, exterior walls, roof and other structural portions of the building. Tenant shall, at
its expense, maintain the interior of the leased premises at all times in good condition and repair,
all in accordance with the laws of the State of Alaska and all directions and regulations of
governmental agencies having jurisdiction hereof. Tenant shall commit no waste of any kind in or
about the leased premises, and Tenant shall pay for all damage to the building, as well as damage
to tenants or occupants thereof caused by Tenant's misuse or neglect of the leased premises, its
apparatus or appurtenances. At the expiration of the term hereof, or on the termination of this
lease, Tenant shall surrender the leased premises in good end clean condition, normal wear and
tear and damage by fire or other casualty excepted.
Landlord shall maintain and repair all plumbing lines and equipment installed for the general
supply of hot and cold water, heat, ventilation, electricity and plumbing, including the sewer
system. If there is clogging of the sewer system that is directly attributable to the Tenant's
operations, the Landlord shall immediately inform the contact person, who will either terminate
the operation clogging the system, or make arrangements to compensate for unavoidable
clogging. The Tenant shall be responsible for any and all maintenance and repairs attributable to
obstructions or objects deliberately or inadvertently introduced or placed in the fixtures, lines or
equipment by Tenant, its employees, agents, licensees or invitees.
LEASE #IH -248
Landlord shall not be responsible or liable at any time for any loss or damages to Tenant's
equipment, fixtures or other personal property of Tenant or to Tenant's business except to the
extent attributable to Landlord's negligence.
Landlord shall not be responsible or liable to Tenant or to those claiming by, through or under
Tenant for any loss or damages to either the person or property of Tenant that may be occasioned
by or through the acts or omissions of persons occupying other portions of the building.
Landlord shall not be responsible or liable for any defect, latent or otherwise, in the building in
which the leased premises is situated, or any of the equipment, machinery, utilities, appliances or
apparatus therein nor shall it be responsible or liable for any injury, loss or damage to any person
or to any property of Tenant or other person caused by or resulting from bursting, breakage or by
or from leakage, steam or snow or ice, running or the overflow of water or sewage in any part of
said leased premises, the building, or the surrounding area, or for any injury or damage caused by
or resulting from acts of God or the elements, or for any injury or damage caused by or resulting
from any defect in the occupancy, construction, operation or use of any of said leased premises,
building, machinery, apparatus or equipment by any person or by or from the acts of negligence of
any occupant of the premises, unless Landlord itself is negligent.
8. Fire and Other Casualty. Should the leased premises be damaged by fire or other casualty,
and if the damage is repairable within four (4) weeks from the date of the occurrence (with the
repair work and the preparations thereof to be done during regular working hours on regular
work days), the damages shall be repaired with due diligence by Landlord, and in the meantime
the annual payments shall continue. The Landlord will provide alternative facilities for Tenant
until the repair work is completed sufficiently to allow occupancy. Should the leased premises be
completely destroyed by fire or other casualty, or should they be damaged to such an extent that
the damage cannot be repaired within four (4) weeks of the occurrence, Landlord or Tenant shall
have the option to terminate this lease, and Landlord shall advise Tenant within thirty (30) days
after the happening of any such damage whether Landlord has elected to continue this lease in
effect or to terminate it. If Landlord shall elect to continue this lease in effect, it shall commence
and prosecute with reasonable diligence any work necessary to restore or repair the leased
premises. If Landlord shall fail to notify Tenant of its election within said thirty-day period, or
shall not have commenced the restoration or repair work within said period, Landlord shall be
deemed to have elected to terminate this lease, and the lease shall thereafter automatically
terminate. The commencement by Landlord of repair work shall be deemed to constitute notice
that Landlord has elected to restore or repair the leased premises. For the period from the
occurrence of any damage to the leased premises to the date of completion of the repairs (or to
the date of termination of the lease if Landlord shall elect not to restore the leased premises), the
annual payments shall be abated.
In the event restoration or repair is delayed by acts or omissions of Tenant, there shall be no
abatement of payments during the period of such delay. If fire or damage is caused by the
carelessness, negligence or improper conduct of Tenant, then notwithstanding other provisions of
this lease, Tenant shall remain liable for the payments, without abatement, during any period of
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LEASE #IH -248
repair or restoration and shall be responsible for obtaining alternate facilities during the restoration
period.
If Landlord, in its discretion, shall decide within thirty (30) days after the occurrence of any fire or
other casualty in the building, even though the leased premises may not have been affected by
such fire or other casualty, to demolish, rebuild or otherwise replace or alter the building
containing the leased premises, then upon written notice given by Landlord to Tenant, this lease
shall terminate on a date specified in such notice, but no sooner than thirty (30) days from the
date of such notice, as if the date had been originally fixed as the expiration date of the term
herein leased. Tenant and Landlord hereby mutually release each other from liability and waive all
right of recovery against each other for any loss from perils insured against under their respective
fire insurance policies, including any extended coverage and endorsements thereto; provided,
however, that this paragraph shall be inapplicable if it would have the effect, but only to the extent
that it would have the effect, of invalidating any insurance coverage of Landlord or Tenant.
Restoration or repair work conducted in the common areas, in areas of the building not leased, or
leased to other tenants, or the noise or interference arising therefrom, shall not be deemed an
eviction of Tenant, or a breach of this lease.
9. Subletting and Assignment. Tenant shall not sublet the leased premises, or any part thereof,
or assign this lease or any part thereof, nor shall this lease be assigned in whole or in part by
operation of law or through any court proceedings, without the prior written consent of Landlord,
which shall not unreasonably be withheld, to such subletting or assigning; any such assignment or
sublease without Landlord's written consent shall be void.
10. Indemnification. Each party agrees that it will be responsible for its own acts and omissions
including those of its officers, agents, and employees, and each party shall indemnify, defend, and
hold harmless the other, to the maximum extent allowed by law, from any claim of or liability for
error, omission or negligent act of whatever kind, including attorneys fees, for damages to
property or injury to persons occasioned by each party's negligent acts or omissions in connection
with the terms of this agreement.
Landlord shall keep the building of which the demised premises are a part insured against all loss
or damage by fire to the extent of the full insurable value thereof, including all improvements,
alterations, additions, and changes made by either party to this lease agreement. All insurance
required by this provision shall be carried for the mutual benefit of the parties in proportion to
their interests in the demised premises. The insurance carrier shall be one mutually acceptable to
the parties.
Tenant shall obtain and maintain any other insurance that Tenant desires on the demised premises
or on the personal property on the demised premises at the expense of Tenant, and any additional
insurance desired by Tenant may be written by any carrier selected by Tenant.
11. Common Areas and Facilities. All common areas and common facilities in or about the
leased premises and the building shall be subject to the exclusive control, scheduling and
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LEASE #IH -248
management of Landlord. Landlord shall have the right to construct, maintain and operate
lighting and other improvements on all said areas; to change the area, level, location and
arrangement for common areas and other facilities and temporarily to close the common areas to
effect such changes other than the leased premises parking, access, and the public facilities.
All common areas and facilities which Tenant may be permitted to use and occupy are to be used
and occupied under a revocable license, which shall not be unreasonably revoked, and if any such
license be revoked or if the amount of such areas be changed or diminished, Landlord shall not be
subject to any liability nor shall Tenant be entitled to any compensation or diminution or
abatement of payments nor shall revocation or diminution of such areas be deemed constructive
or actual eviction unless such revocation or diminution of such areas shall significantly reduce the
value of the facility to the Tenant.
12. Liens. Tenant will not permit any mechanics', laborers' or materialmen's liens to stand against
the leased premises or improvements for any labor materials furnished to Tenant or claimed to
have been furnished to Tenant, or to Tenant's agents, contractors, or sublessees, in connection
with work of any character performed or claimed to have been performed on said premises or
improvements by or at the direction or sufferance of Tenant; provided, however, Tenant shall
have the right to contest the validity or amount of any such lien or claimed lien. In the event of
such contest, Tenant shall give to Landlord such reasonable security as may be demanded by
Landlord to insure payment of such lien or such claim of lien. Tenant will immediately pay any
judgment rendered with all proper costs and changes and shall have such lien released or judgment
satisfied at Tenant's own expense.
The foregoing provisions respecting liens shall apply to all liens, of any kind or nature, asserted
against the leased premises or improvements thereon, including liens arising out of, incident to, or
connected with the use and occupation of the leased premises by Tenant.
13. Default. If default shall be made by Tenant or Tenant's successors or assigns in the payments
reserved in this lease agreement, and that default shall continue for ten (10) days after notice in
writing to Tenant or Tenant's successors and assigns, or if breach other than in the payments as
outlined in Exhibit B shall be made in the terms and conditions of this lease agreement to be
performed by Tenant or Tenant's successors and assigns, and the breach shall continue for thirty
(30) days after notice in writing to Tenant, then and in either event, the right of Tenant to the
possession of the demised premises shall terminate without notice or demand. The mere retention
or possession thereafter by Tenant shall constitute a forcible detainer.
Any reentry shall be made without prejudice to any rights or remedies whether by statute or
common law that might otherwise be used for recovering arrears in payments or for breach of any
terms or conditions of this lease agreement.
14. 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 mailed, certified or registered mail, or
delivered, to the following address:
Landlord:
Kodiak Island Borough
710 Mill Bay Road
Kodiak, Alaska 99615
IRS TIN 92- 0030845
Tenant:
Alaska Dept of Fish & Game
P.O. Box 25526
Juneau, AK 99802
Attn: Lands & Leasing Coordinator
Any such notices shall be deemed effective on the date of mailing or delivery.
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LEASE #IH - 248
15. Rights or Remedies. Except insofar as this is inconsistent with or contrary to any provision
of this lease, no right or remedy herein conferred upon or reserved to Landlord is intended to be
exclusive of any other right or remedy, and each 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.
16. Waiver and Forbearance. , Except to the extent that Landlord may have otherwise agreed in
writing, no waiver by Landlord of any breach by Tenant 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 Landlord to seek a remedy
far any breach of Tenant be deemed a waiver by Landlord of its rights or remedies with respect to
such breach.
17. Inspection. Landlord shall at all reasonable times during Tenant's business hours have access
to the premises for the purpose of inspection. Landlord shall also be entitled to put "to lease" or
"for lease" signs in and about the leased premises, and to show the leased premises to prospective
tenants, during the last sixty (60) days of the lease term and any extended term, and during any
period of time after Landlord has given Tenant a notice of intention to terminate under paragraph
14 of this lease.
18. Notices of Non - Responsibility. Landlord may enter the demised premises at any time for the
purpose of the posting notices of non - responsibility.
19. Successors in Interest. This lease shall be binding upon and inure to the benefit of the
respective heirs, successors and assigns of the parties hereto.
20. Holding Over. In the event that the Tenant holds over at or after the end of the term, the
tenancy shall be deemed a month -to -month tenancy commencing on the first day of the hold -over
period.
21. Signs. Tenant agrees that any signs installed on the demised premises shall be with the
consent of the Landlord.
22. Estoppel Certificates. Tenant shall, at any time and from time to time upon not less than
thirty (30) days prior request by Landlord execute, acknowledge and deliver to Landlord a
statement in writing certifying that this lease is in full force and effect and unmodified (or in full
force and effect and modified and stating the modifications), the dates to which the payment(s)
and any other charges have been paid in advance, the date Tenant entered into occupancy of the
leased premises and the date the lease term expires, the nature and amount of any claims of
Tenant against Landlord arising as a result of this lease, and the existence and nature of any
defenses or offsets claimed by Tenant against enforcement of this lease by Landlord; it being
intended that any such statement delivered pursuant to this paragraph may be relied upon by any
prospective purchaser or encumbrancer (including assignees) of the premises. In the event Tenant
fails so to certify within such thirty (30) day period, Tenant shall be deemed to have certified and
admitted the accuracy of information submitted by Landlord in good faith to any prospective
purchaser or encumbrancer in respect to this lease.
23. Excuse for Non - performance. Either party hereto shall be excused from performing any or
all of its obligations hereunder with respect to any repair and construction work required under
the terms of this lease for such times the performance of any such obligation is prevented or
delayed by an act of God, floods, explosion, the elements, war, invasion, insurrection, riot, mob
violence, sabotage, inability to procure labor, equipment, facilities, materials or supplies in the
open market, failure of transportation, strikes, lockouts, action by labor unions, or laws or order
of governmental agencies, or any other cause whether similar or dissimilar to the foregoing which
is not within the reasonable control of such party.
24. Construction of Lease. This lease shall be governed by and construed in accordance with the
laws of the State of Alaska.
Words of gender used in this lease shall mean and include any other gender, and singular shall
mean and include the plural and the plural the singular, where applicable, and when the sense
requires.
25. Entire Agreement. This Agreement, and the exhibits and documents referred to herein, set
forth all of the terms, conditions, covenants and agreements of the parties relative to the subject
matter hereof and supersede any and all former agreements, oral or written, which, upon the
execution and delivery hereof, are hereby terminated and of no further force and effect. There are
no terms, conditions, covenants or agreements with respect hereto except as herein provided.
IN WITNESS WHEREOF, the parties have hereunto set their hands and seals the day and year
first hereinabove written.
LANDLORD: TENANT:
KODIAK ISLAND BORO GH ALAS
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Sli7;diame
EXHIBIT A
DEMISED PREMISES
Tract B of a portion of United States Survey 4947 according to
plat No. 86 -20 in the Kodiak Recording District, Third Judicial
District, State of Alaska.
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Exhibit to Agreement between Kodiak Island Borough, as Landlord, and the Alaska Department
of Fish & Game, as Tenant.
Approximately 910 net (1386 gross) square feet of laboratory space (5.7% of proportionate share
of the total building), and utilization of the seawater system (6.0% proportionate share), all of
which relate to the planned Near Island Research Facility, which is affixed to:
EXHIBIT B
SCHEDULE OF ANNUAL PAYMENTS
Payments will be made annually in advance as indicated below. After year fourteen (14), payment will be based on
estimated services and common area expenses and will be paid automatically in advance. The Tenant will rece've
an annual statement of actual expenses as defined in Section 3 of this agreement for each year, beginning with y
14 and continuing for the duration of this agreement. Based on the Tenant's prorated share of actual expenses,
Tenant shall be credited on the next year's estimated prorated expenses any overpayment by the Tenant for
previous year. Landlord agrees that in recognition of the capital contribution provided for the Alaska 1 • et n
of Fish and Game by the Kodiak Island Borough from proceeds from the sale of Shuyak Island, the Tenant will •
be charged for actual ground or space rent. In addition, the Kodiak Island Borough has subsidized partial pa I,
of the first thirteen (13) years services and common area expenses. Payment for any partial month's occu
shall be prorated, based on a thirty (30) day month.
Commencing with actual occupancy of the leased facilities in 1998, the Tenant will make payments according to
the following schedule:
Year
Projected Services &
Common Area Expenses
for ADF &G space
1 $49,191 $49,191
$ 0
2 49,683
49,683 0
For years 3 through 13, a stepped increment of $4,800 per year will be applied as follows:
3 50,180 45,380 4,800
4 50,682 41,082 9,600
5 51,189 36,789 14,400
6 51,701 32,501 19,200
7 52,218 28,218 24,000
8 52,740 23,940 28
9 53,267 19,667 33,600
10 53,800 15,400 38,400
11 54,338 11,138 43,200
12 54,881 6,881 48,000
13 55,430 2,630
52,800
For years 14 on, a prorated share of the expenses as indicated in Exhibit A and as indicated in Section 3 of
this agreement will be paid by Tenant, but not to exceed the following maximum amounts:
14 55,984 0 55,984
15 56,544 0 56,544
16 57,109 0 57,109
17 57,680 0 57,680
18 58,257 0 58,257
19 58,840 0 58,840
20 59,428 0 59,428
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Kodiak Island
Borough Subsidy
LEASE #IH 48
ADF &G Maximum
Annual Payment