Sponsored by: Administration CITY OF KENAI RESOLUTION NO

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CITY OF KENAI RESOLUTION NO. 2017-57 (SUBSTITUTE) A RESOLUTION OF THE COUNCIL OF THE CITY OF KENAI , ALASKA, CONSENTING TO A SECOND AMENDMENT OF LEASE OF CERTAIN AIRPORT LANDS WITHIN THE AIRPORT RESERVE BETWEEN THE CITY OF KENAI, LESSOR, AND SOAR INTERNATIONAL MINISTRIES, INC., LESSEE, ON PROPERTY DESCRIBED AS LOT 2, BLOCK 3, GENERAL AVIATION APRON NUMBER ONE, ACCORDING TO AMENDED PLAT NO. 2004-20. WHEREAS, on November 29, 2004, the City entered into a lease with SOAR International Ministries, Inc. for City-owned lands identified as Lot 2, Block 3, General Aviation Apron , according to Plat No. 73-68 , and as amended by Plat No. 2004-20, said lease was recorded under document number 2004-012339-0, on December 6, 2004, in the Kenai Recording District, Third Judicial District, State of Alaska (the Lease); and , WHEREAS , the Lease was mutually amended on June 22, 2009 recorded under document number 2009-006284-0 in the Kenai Recording District, Third Judicial District, State of Alaska; and , WHEREAS, pursuant to the Lease terms, SOAR International Ministries, Inc. has requested an extension of the lease for one-year; and, WHEREAS, the City of Kenai and SOAR International Ministries, Inc. , understand that the lease may be extended for up to five years , but mutually agree to a one-year term in anticipation of the City revising it's leasing practices and an additional lease extension of at least the remaining four years or a new lease being agreed to by the Parties under the terms of the City's new leasing practices; and, WHEREAS, on September 13, 2017, the Planning and Zoning Commission recommended the City Council the Second Amendment of Lease of Airport Lands; and, WHEREAS, on September 14, 2017, the Airport Commission recommended the City Council _ _ _ _ the Second Amendment of Lease of Airport Lands. NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF KENAI , ALASKA: Section 1.

That the Second Amendment of Lease of Airport Reserve Lands to extend the term of the Lease one-year beginning retroactively to July 1, 2017 and with an additional option to renew for an additional term of four years be executed by the CITY OF KENAI, Lessor, and SOAR INTERNATIONAL MINISTRIES, INC. Lessee , on certain Airport Lands described as Lot 2, Block 3, General Aviation Apron No. 1, accord ing to Amended Plat No. 2004-20

Section 2.

The Kenai City Council authorizes the City Manager to execute said Second Amendment of Lease of Airport Reserve Lands on behalf of the City on a form approved by the City Attorney.

Resolution No. 2017-57 (Substitute) Page 2 of 2

Section 3.

That this resolution takes effect immediately upon passage.

PASSED BY THE COUNCIL OF THE CITY OF KENAI , ALASKA, this 20th day of September, 2017.

BRIAN GABRIEL SR., MAYOR ATTEST:

Jamie Heinz, City Clerk

SECOND AMENDMENT TO LEASE OF AIRPORT LANDS THIS Amendment to Lease Agreement is made as of the _ _ day of _ _ _ _ _, 2017, by and between the CITY OF KENAI (City), a municipal corporation whose address is 210 Fidalgo Avenue, Kenai, Alaska 99611 , and SOAR International Ministries, Inc., whose address is 135 Granite Point Court Kenai , Alaska 99611. WITNESS ETH WHEREAS, on November 29, 2004, the City entered into a lease with SOAR International Ministries, Inc. for City-owned lands identified as Lot 2, Block 3, General Aviation Apron, according to Plat No. 73-68, and as amended by Plat No. 2004-20, said lease was recorded under document number 2004-012339-0, on December 6, 2004, in the Kenai Recording District, Third Judicial District, State of Alaska (the Lease); and, WHEREAS, the Lease was mutually amended on June 22, 2009 recorded under document number 2009-006284-0 in the Kenai Recording Distiict, Third Judicial Dist1ict, State of Alaska; and, WHEREAS, pursuant to the Lease terms, SOAR International Ministries, Inc. has requested an extension of the lease for one year; and, WHEREAS, the City of Kenai and SOAR International Ministries, Inc., understand that the lease may be extended for up to five years, but mutually agree to a one year tenn in anticipation of the City revising it's leasing practices and an additional lease extension of at least the remaining four years or a new lease being agreed to by the Parties under the terms of the City's new leasing practices. NOW THEREFORE, the paities agree as follows: l. The Kenai City Council has determined to extend the tenn of the Lease one year, beginning retroactively to July 1, 2017 and with an additional option to renew for an additional term of four years. 2. Except as expressly modified or stated herein, all other terms and conditions of the Lease (as amended) remain in full force and effect.

Second Amendment to Lease Page 1 of 2

CITY OF KENAI

By: _ _ _ _ _ _ __ _ __ Paul Ostrander Its: City Manager SOAR International Ministries, Inc.

By: - - - -- - - -- - - Richard Page Its: President Approved as to fonn:

Scott Bloom City Attorney State of Alaska

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Third Judicial District

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The foregoing instrument was acknowledged before me this _ _ day of - - - -, 2017, by Paul Ostrander, City Manager for the City of Kenai.

Notary Public of Alaska My Commission Expires: _ __ State of Alaska

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Third Judicial District

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The foregoing instrument was acknowledged before me this _ _ day of _ _ __, 2017, by Richard Page, President for SOAR International Ministries, Inc.

Notary Public of Alaska My Commission Expires: _ __ RETURN TO: CITY OF KENAI 210 Fidalgo Avenue Kenai, AK 99611-7794 Second Amendment to Lease Page 2 of2

'Vttf~ {,(//t~ a PaJ'~ e~ {,(//t~ a f°u.ttif'e II 210 FidalgoAve, Kenai, Alaska 99611-7794 Telephone: (907) 283-7535 I Fax: (907) 283-3014 www.kenai. city

TO:

Mayor Brian Gabriel and Kenai City Council

THROUGH:

Paul Ostrander, City Manager ?

FROM:

Matt Kelley, City Planner / lll

DATE:

September 13, 2017

SUBJECT:

Substitute Resolution No. 2017-57

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This memorandum provides additional information regarding Resolution No. 2017-57. The Resolution that was presented to the City Council on August 16, 2017 was postponed at the request of Administration , to allow for a meeting with Dick Page of SOAR International Ministries, Inc. Administration met with Mr. Page on August 25, 2017 to discuss the proposed lease renewal as it was presented to the City Council. In those discussions, it was mutually agreed that both the City and SOAR International Ministries, Inc., understand that the lease may be extended for up to five years under the same terms and conditions of the current lease. It was also agreed that a Second Amendment to Lease would be prepared for Council consideration that would extend the lease one year in anticipation of the City revising its leasing practices. The agreement preserves SOAR International Ministries' ability to pursue a lease extension of at least the remaining four years or alternatively by mutual agreement, a new lease under anticipated new leasing terms . Administration has prepared a Second Amendment to Lease, which was then referred to the Planning and Zoning Commission at their meeting of September 13, 2017 and the Airport Commission at their meeting of September 14, 2017. At their respective meetings, the Planning and Zoning Commission and the Airport Commission will consider the subject Second Amendment to Lease. Administration will provide a memorandum to the City Council at the meeting of September 20, 2017 with the recommendations of both commissions. Thank you for your consideration .