Craig council to consider letting city land tenants take dock and piling costs off lease fees

Tenants of city land in Craig could take the cost of approved docks, pilings and bulkheads off their lease fees under an ordinance the Craig City Council is scheduled to take up Thursday, Nov. 19.

The measure gets its first reading at a 6 pm work session in council chambers. It is on the consent agenda, and staff recommends approval.

The ordinance would add a section to the city's leasing code titled "Capital Improvement Credits and Offsets on Leased Tidelands & Uplands." Lessees could apply for a lease fee offset for permanent improvements to city property approved in advance: pilings, bulkheads, wharves, docks and essential structural marine infrastructure. Routine maintenance and repair would not qualify.

Lessees would apply to the city administrator before construction begins, submitting the scope of work, a budget, contractor qualifications and a proposed offset schedule. After the work is done, they would submit receipts, lien waivers and final inspection sign-offs. With council approval, the costs would be credited against lease fees over an agreed term, no longer than the improvement's useful life. The credit could not exceed 50% of a year's regular lease payment unless a majority of the council approves more.

The improvements would become city property, free of liens, when a lease ends.

City Planner Jaycee Christensen's memo says Council Member Josh Bennett brought the language to the Craig Planning Commission in October, asking its opinion on lessee improvements to city property "since those improvements may lead to a request to council for reimbursement." The commission asked that the rule cover both tidelands and uplands and go in the leasing title of city code, leaving the land development code alone.

Current city code allows leasing of all city land, including tide and submerged lands, at a minimum rent of 8% of appraised value, except for public uses. It tells the council to weigh the cost of improvements an applicant agrees to build when setting a lease term. The code's five-year rent adjustment rule already mentions "improvements credited against rentals" and counts their value in the rent base. But the code sets no procedure for granting those credits.

Residents can comment remotely by emailing the city clerk before 5 pm Nov. 19.