HomeMy WebLinkAboutOrdinance No. 2904-2016MA
AN ORDINANCE OF THE
THAT LOT 4A, BLOCK 3
REPLAT, OWNED BY T
NEEDED FOR A PUBLIC
TO SCHILLING RENTAI
SCHILLING.
Sponsored by: Council Member Navarre
CITY OF KENAI
NO. 2904 -2016
COUNCIL OF THE CITY OF KENAI, ALASKA, DETERMINING
COOK INLET INDUSTRIAL AIR PARK SUBDIVISION, 2014
IE AIRPORT OUTSIDE THE AIRPORT RESERVE IS NOT
PURPOSE AND AUTHORIZING THE SALE OF THE PARCEL
S, A PARTNERSHIP OWNED BY DAVID AND MICHAEL
WHEREAS, the City has received an unsolicited offer to purchase Lot 4A, Block 3, Cook
Inlet Industrial Air Park Subdivision, 2014 Replat (the Property) from the current Lessee;
and,
WHEREAS, the Property is owned by the Airport and located outside the City's Airport
Reserve; and,
WHEREAS, the City of Kenai received a quitclaim deed from the Federal Aviation
Administration (FAA) on December 1, 1963, to nearly 2,000 acres of land subject to
certain restrictions, including that no property shall be used, leased, sold, salvaged, or
disposed of for reasons other than for airport purposes; and,
WHEREAS, on August 20, 1970, the FAA executed a Deed of Release, for an area of land
subject to the Quitclaim Deed allowing for the lease, sale, or disposal of certain airport
lands by the City; and,
WHEREAS, Lot 4A, Block 3, Cook Inlet Industrial Air Park Subdivision, 2014 Replat is
subject to that Deed of Release; and,
WHEREAS, KMC 21.15.0 10 -Airport Land Outside of the Airport Reserve, provides that
the City may sell land outside the Airport Reserve when in the judgment of the City
Council, such lands are not required by the City for a public purpose; and,
WHEREAS, the Property is leased to Schilling Rentals and developed for private
commercial use and is not needed for a public purpose; and,
WHEREAS, in private ownership, the property will generate substantially more in
property taxes for the City than under the current lease structure; and,
WHEREAS, KMC 21.15.180 - Sale, allows for a negotiated sale process.
NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF KENAI,
ALASKA, as follows:
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Ordinance No. 2904 -2016
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Section 1. Form: That this is a non -code ordinance.
Section 2. Statement of Ownership: That the City of Kenai is the owner of Lot 4A,
Block 3, Cook Inlet Industrial Air Park Subdivision, 2014 Replat (the Property).
Section 3. Public Purpose and Best Interest Findings: That the Property is not
needed for future public municipal or airport purposes. Under the Airport Layout Plan,
the Property is designated for non - aviation commercial or light - industrial uses. The
sale of the Property is in the best interests of the City and Airport, as it serves a purpose
of continuing commercial growth and investment in the City.
Section 4. Authorization of Sale: That the Kenai City Council hereby authorizes the
City Manager to sell the City-owned lands described as Lot 4A, Block 3, Cook Inlet
Industrial Air Park Subdivision, 2014 Replat, under the procedures and terms
established for the sale of airport lands outside of the Airport Reserve, as set forth in
KMC 21.15.180 et seq. and subject to the following additional essential terms and
conditions of sale:
(a) Prior to any sale, a fair market raw land appraisal must be completed; and
(b) The sale will be made through a negotiated sale to Schilling Rentals, a
partnership owned by David and Michael Schilling for a sum not less than
125% of fair market raw land appraisal; and,
Section 5. Title: That title shall be conveyed by quitclaim deed. Any instrument
conveying title to the Property shall include the following restrictions, promises, and /or
covenants:
(a) that the City of Kenai reserves unto that the grantee expressly agree for
itself and its heirs, executors, administrators, successors, transferees, and
assigns, for the use and benefit of the public a right of flight for the passage
of aircraft in the airspace above the surface of the Property, together with
the right to cause in said airspace such noise as may be inherent in the
operation of aircraft, now known or hereafter used, for navigation of or
flight in the said airspace, and for use of said airspace for landing on or at
and for taking off from or operating on Kenai Municipal Airport; and,
(b) that the grantee expressly agree for itself and its heirs, executors,
administrators, successors, transferees, and assigns to restrict the height
of structures, objects of natural grown, and other obstructions on the
Property to a height of not more than 242 feet above mean sea level; and,
(c) that the grantee expressly agree for itself and its heirs, executors,
administrators, successors, transferees, and assigns to prevent any use of
the Property which would interfere with landing or taking off of aircraft at
the Kenai Municipal Airport, or otherwise constitute an airport hazard;
and,
(d) that all covenants heretofore stated shall run with the land and shall inure
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Ordinance No. 2904 -2016
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to the benefit of, and be binding upon the heirs, executors, administrators,
successors, transferees, and assigns of the parties to the contract for sale
and conveyance.
Section 6. Proceeds of Sale: That should a sale of the Property be finalized, all
revenues from the sale shall be deposited in the Airport Land Sale Permanent Fund for
use in the development, improvement, and operation of the Kenai Municipal Airport and
as otherwise required in that Deed of Release recorded on November 19, 1973 at Book
74, Pages 325 -327, Kenai Recording District.
Section 7. Effective Date: That pursuant to KMC 1.15.0700, this ordinance shall
take effect 30 days after adoption.
ENACTED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, this 15th day of June,
2016.
PAT PORTER, MAYOR
Introduced: June 1, 2016
Enacted: June 15, 2016
Effective: July 15, 2016
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