HomeMy WebLinkAboutResolution No. PZ2016-42CITY OF KENAI
PLANNING AND ZONING COMMISSION
RESOLUTION NO. PZ16-42
A RESOLUTION OF THE PLANNING AND ZONING COMMISSION OF THE CITY OF KENAI,
RECOMMENDING AN ORDINANCE TO THE COUNCIL OF THE CITY OF KENAI,
CONSENTING TO AN AMENDMENT TO EXTEND THE TERM OF LEASE UNTIL 2035 OF
CERTAIN CITY -OWNED LAND, IDENTIFIED AS A PORTION OF LOT 3, BLOCK 17, ORIGINAL
TOWNSITE OF KENAI AND THE BUILDING KNOWN AS THE "FINE ARTS CENTER", TO THE
PENINSULA ART GUILD, INC., WITHOUT A CURRENT APPRAISAL AND DECLARING AN
AMENDMENT TO THE LEASE IS IN THE BEST INTEREST OF THE CITY.
WHEREAS, since December 1991 and until the Lease was assigned to the Peninsula Arts Guild,
Inc., on September 8, 2000, the City has leased the Fine Arts Center to the Kenai Arts &
Humanities Council for one dollar ($1.00) per year to provide a building to house the Fine Arts
Center for the benefit of the local community; and,
WHEREAS, the Fine Arts Center is currently in need of general repair and updating; and,
WHEREAS, the current Lease is scheduled to expire on December 31, 2020, and the Peninsula
Art Guild, Inc., has requested an extension of the Lease until December 31, 2035 under the same
terms and conditions as the existing Lease in order to obtain grant funding for a substantial repair,
renovation, and upgraded of the premises; and,
WHEREAS, Kenai Municipal Code 22.05.055 requires lease terms to be based on the durability
of the proposed use, the amount of investment proposed and made, the nature of the
improvement proposed, and the time required to amortize the investment; and,
WHEREAS, Kenai Municipal Code 22.05.050 requires that prior to renewal of a lease, there must
be an appraisal within the last twelve (12) months to determine a fair market lease rate; and,
WHEREAS, it is in the best interest of the City to waive KMC 22.05.050 and 22.05.055 as a fair
market lease is not sought and such appraisal would result in the unnecessary expenditure of
funds and the City owns the improvements; and,
WHEREAS, the directors of the Peninsula Art Guild, Inc., have requested that City Administration
expedite its request to Execute an Extension of Lease in order to obtain available grant funding;
and,
WHEREAS, an extension of the current lease to the Peninsula Arts Guild under the same terms
and conditions of the existing lease at a rate of one dollar ($1.00) per year is in the best interests
of the City; and,
WHEREAS, pursuant to KMC 22.05.045, no leased land may be changed in use, nor may any
renewal lease be issued until the proposed use or renewal has been reviewed by the Planning
and Zoning Commission and approved by the City Council
NOW, THEREFORE, BE IT RECOMMENDED TO THE COUNCIL OF THE CITY OF KENAI,
ALASKA, THAT AN ORDINANCE BE ENACTED TO AMEND AND EXTEND THE TERM OF
LEASE UNTIL 2035 OF CERTAIN CITY -OWNED LAND, IDENTIFIED AS A PORTION OF LOT
3, BLOCK 17, ORIGINAL TOWNSITE OF KENAI AND THE BUILDING KNOWN AS THE "FINE
ARTS CENTER", TO THE PENINSULA ART GUILD, INC., WITHOUT A CURRENT APPRAISAL
AND DECLARING AN AMENDMENT TO THE LEASE IS IN THE BEST INTEREST OF THE
CITY.
Resolution No. PZ16-42
Page 2 of 2
PASSED BY THE PLANNING AND ZONING COMMISSION OF THE CITY OF KENAI,
ALASKA, this 14' day of December, 2016.
n
CHAIRPERSON --
Jeff Twait, Chairp son
Q