KETCHIKAN (KDN) — The Saxman City Council has scheduled a special meeting for 1 p.m. Friday to consider the final draft of a proposed lease between the City of Saxman and Three Bears Alaska Inc. of property within Saxman Seaport that Three Bears intends to use for retail grocery, hardware and fuel sales.
The Wasilla-based Three Bears intends to build a retail complex using the site’s existing 31,860-square-foot warehouse in addition to a new, approximately 8,000-square-foot structure adjacent to the warehouse, according to the proposed lease agreement.
The proposed lease provides for an initial term of 11 years, with a provision allowing Three Bears the option of up to eight additional terms of 11 years each.
Three Bears would make an initial payment of $400,000 (in addition to the $100,000 payment already made by Three Bears under a prior access agreement with Saxman).
Thereafter, the annual lease payments would be linked to the amount of sale taxes generated by Three Bears’ operations, according to the proposed agreement . If the sales tax revenue during a given fiscal year falls below $375,000, Three Bears will make an “Additional Rent payment in the amount required for the revenues to the City to equal the Revenue Floor ($375,000),” states the proposed lease.
For each additional time option period, the revenue floor would increase by 10% over that of the previous term or option period, according to the proposed lease.
The full proposed lease and other materials are available on the City of Saxman website at www.cityofsaxman.com/meetings.
There Bears’ initial interest in pursuing a retail grocery store at Saxman Seaport was made public in October 2021, when the Saxman City Council held an executive session to discuss the topic that had been the focus of preliminary talks between Three Bears, the City of Saxman, Cape Fox Corp. and the Organized Village of Saxman.
In October, the Saxman City Council approved a resolution in support of the project, and Three Bears in December took over management of the South Tongas Service gas station and convenience store from Southeast Stevedoring.
On Feb. 3, the Saxman City Council reviewed the draft lease in an executive session.
On Friday, the Council will consider approving the final version of the lease, in addition to considering an ordinance that “memorializes the lease agreement between Three Bears LLC and the City of Saxman,” according to the special meeting agenda. If the Council approves, the ordinance would be set for a public hearing on March 15.
The special meeting is scheduled to start at 1 p.m. Friday at Saxman City Hall.