MEMORANDUM

TO: Timothy Navarre, Assembly President

Members, Kenai Peninsula Borough Assembly

THRU: Dale Bagley, Mayor

FROM: Colette Thompson, Borough Attorney

Bob Bright, Planning Director

DATE: February 28, 2002

SUBJECT: Ordinance 2002-09, authorizing a five-year extension of the time period for the option to lease Ladd Landing and other amendments

The Kenai Peninsula Borough entered into an Option to Lease Ladd Landing agreement in 1987 with Tidewater Services Corporation. Through a series of mergers and assignments, this option is now held by Richard D. Bass, William Herbert Hunt, and William Herbert Hunt Trust Estate. This option grants the option holders the right to lease approximately 949 gross / 897 net acres on the west side of Cook Inlet from Ladd Landing extending westward. The option will expire April 9, 2002, unless exercised by the option holders. The borough recently received a request from the option holders' agent to extend the option for an additional five years, to reduce the area subject to the option by 142 gross / 132 net acres, and to reduce the option price for one of the parcels from $42,600 to $21,600 per annum. The borough administration has not yet had time to evaluate the proposal, but assembly approval by ordinance will be required for the borough to enter the proposed extension and modification agreement. Accordingly, in order to meet the April 9, 2002 deadline, the administration is submitting this ordinance for introduction at this time. Updated information will be provided as soon as it is available. Attached for your reference is a copy of the letter received from Mr. R. B. Stiles, the agent for the option holders.

Hearing on shortened time is requested to provide an opportunity for hearing before the option period expires. Thank you for your consideration of this request.