LEASE AGREEMENT EXTENSION

WHEREAS, Resolution 2005-___ authorizes the Kenai Peninsula Borough ("Lessee") to enter into an extension of the existing Lease Agreement dated September 15, 2000 ("the Lease") between Tenant and Tom Landess, P.O. Box 3266, Soldotna, Alaska 99669, its successors and assigns ("Lessor"), attached hereto and incorporated by reference for the lease of the property described therein;

WHEREAS, the Lessee and Lessor hereby agree upon extending the Lease by extending the Lessee's option to renew for three additional years, through three one-year renewal terms, with a new monthly rental of $2,040, due on the 15th day of each month, subject to Assembly appropriation and the availability of funds.

NOW, THEREFORE, Tenant and Landlord hereby agree to extend the Lease for a period of up to three years by one-year renewal options, the first one-year renewal commencing on September 15, 2005, under the same terms and conditions as contained in the Lease except as otherwise provided above.

DATED this _____ day of ________________, 2005.

BY: ____________________________ BY:__________________________

KENAI PENINSULA BOROUGH Tom Landess, Lessor

Dale Bagley, Mayor

ATTEST: APPROVED AS TO FORM AND LEGAL SUFFICIENCY

BY: ______________________________ BY: ________________________

Sherry Biggs, Borough Clerk Holly B. Montague

Assistant Borough Attorney

NOTARY ACKNOWLEDGMENT

STATE OF ALASKA )

)ss.

THIRD JUDICIAL DISTRICT )

The foregoing instrument was acknowledged before me this _______ day of ________________, 2005, by Dale L. Bagley, Mayor of the Kenai Peninsula Borough, an Alaska municipal corporation, on behalf of the corporation.

___________________________________

Notary Public in and for Alaska

My commission expires: _______________

NOTARY ACKNOWLEDGMENT

STATE OF ALASKA )

)ss.

THIRD JUDICIAL DISTRICT )

The foregoing instrument was acknowledged before me this _______ day of ________________, 2005, by Tom Landess.

____________________________________

Notary Public in and for Alaska

My commission expires: ______________