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Home My WebLink About1988-02-24 Council Packet - Work SessionKenai City Council Work Session February 24, 1988 Airport Terminal Renovation Construction of Dock Facility CITY OF KENAI 1110d eapd-4d 4Z"4a it 210 FIDALGO KENAI, ALASKA 99611 TELEPHONE 283 - 7535 NOTICE OF WORK SESSION The Kenai City Council will be holding a work session on Wednesday, February 24, 1988 at 7:00 PM in the Council chambers. To be discussed: 1. Airport Terminal Renovation 2. Construction of Dock Facility The public is invited to attend and participate. Janet Whelan, C;MC City Clerk ` DATED: February 19, 1988 r January 25, 1988 MEMORANDUM c CITY OF KENAI 0 lod capiw 4 ad it 210 FIDALGO KENAI, ALASKA 99611 TELEPHONE 283 - 7535 _. TO: Wm. J. Brighton, City Manager 's FROM: Randy Ernst, Airport Manager t RE: Funding of the Airport Terminal Renovation of 1988 . ... ;. I have talked w ' ith the Finance Director about the source funding for the of airport terminal renovation Ordinarily, project, y the j`;►` E `f , monies for this project would come from Terminal Enterprise Fund, however t he fund balance the <� is approximately $250,000 and the cost of the renovation is . estimated to run between $450 000 and 5 $ 00,000. Because the project cost would exceed the fund balance and in effect wipe out any reserves for the operation of the p terminal ' zt would seem more prudent p to transfer the whole amount for the renovation from the Airport Land System Fund. y The Land System Fund has an approximate balance of 6002 $ ,000. = A capital improvement project p � would be set up for the terminal renovation and the cost of the'project p would come as a contribution from the Land System Fund, which would leave the Terminal Enterprise Fund intact for' any major maintenance problems or smaller ro improvement ' - future. P projects in the RE / dg cc: Charles A. Brown, Finance Director CITY OF KENAI , Special Revenue Funds Combining Balance Sheet June 30, 1987 Water and Sewer - Kenai Airport Borough Land Senior System Citizens ASSETS Equity in Central Treasury $ 763,827 $ 3,096,369 Accounts receivable 73,86b 16,476 Less allowance for uncollectibles (10,000) (6 500 Total Assets - 827 687 3 106 345 LIABILITIES AND FUND BALANCES ; - Liabilities: Accounts payable $ 12,480 $ - Customer deposits 18,055 3,000 Accrued leave 8 808 2,064 Due to General Fund _ Sales tax 7,723 2,297 Rent collected in advance - 69o,334 Total Liabilities 47 066 76 695 Fund Balances: Reserve -for encumbrances 27,304 38,260 Unreserved: Designated for subsequent year's expenditures _ Undesignated 753 317 2 991 390 Total Fund Balances 780,621 3 029 650 Total Liabilities and Fund Balances 827 687 3,106,345 O 7 S o D � The accompanying notes are an integral part of the financial statements. $ .6, 550 4,871 11 421 $ 1,451 621 2,072 3,140 2,041 4,168 9 11,421 45 Exhibit C-4 �J CITY OF KENAI, ALASKA Airport Land System Special Revenue Fund Statement of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Year Ended June 30, 1987 Fund Balance - July 1, 1986 Revenues: Intergovernmental Revenues - State grants Miscellaneous Revenues: Rents and leases, including Variance - Favorable Budget Actual (Unfavorable) 2,313,755 $ 2,313,755 - 5,000 1,033 (3,967) penalty and interest 455.,000 Landing fees _ 500,000 Gasoline fees 130,000 Plane parking fees 10,000 Fish hauling rents 50,000 Interest revenue 292,500 Other 2 000 ' Total Miscellaneous Revenues 818.500 Total Revenues 823,500 Other Financing Sources: Operating transfers from: General Fund Trust Fund • Total Other Sources Total Revenues and Other Sources Expenditures -Airport: Maintenance and Operation: Personal services Supplies Other services and charges Capital outlays Expenditures chargeable from other funds Total Maintenance and Operation 55,000 55,000 878,500 42,686 12,510 185,937 35,600 276,733 127,000 403,733 470,261 39,410 8,230 1,240 6,000 364,496 2,546 892,183 893,216 26,456 U1,30 i 357,758 1,250,974 36,216 7,864 10,786 32,649 87,515 127,000 214,515 r- 15,261 (10,590) (4,770) 240 1,000 71,996 546 73,683 69 , 716 (28,544) 331,302 302,758 372,474 6,470 4,646 175,151 2,951 189,218 189,218 Continued 2 � Exhibit C-4 (Cont'd) CITY OF KENAI, ALASKA Airport Land System Special Revenue Fund Statement of Revenues, Expenditures, and Changes in Fund Balance - .Budget and Actual Year Ended June 30, 1987 Variance - Favorable Bud et Actual (Unfavorable) Land Administration: Of Personal services $ 103,848 $ 84,709 $ 19 139 Supplies 1,900 11599 F 301 Other services and charges 130,610 4 064 126,546 Capital outlays 5,500' S 451 49 Total Land Administration 241,858 95 823 146 035 Land: ' Supplies 950 804 146 Other services and charges 224,813 44 673 180 140 r Expenditures chargeable from 225,763 45,477 180,286 other funds 17 500 17,500 - Total Land 243 263 62 977 • 180 ,286 Total Expenditures 888,854 373,315 515,539 Other Financing Uses: Operating transfers to Capital Projects Funds S 270,000 .270 000 - Total Expenditures and Other Uses 1,158,854 643 315 515 539 ' Excess of Revenues and Other Sources over (under) Expenditures and Other Uses (280,354) 607 659 888 013 Residual Equity Transfer from Capital Project Fund - 108 236 108 236 Fund Balance - June 30 1987 2,033,401 $ 3,029,650 996 P 249 The accompanying notes are an integral part of the financial statements. 52 CITY OF KENAI, ALASKA Trust and Agency Fiduciary Funds Combining Balance Sheet June 30, 1987 ASSETS Equity in Central Treasury Investments, at market value Receivables: Interest Notes Total Assets LIABILITY AND FUND BALANCES Liability: Due to employees Fund Balances Reserved for Investments 4-4 ray Total Liability and Fund Balances Nonexpendable Trust Funds Exhibit H-1 Agency Fund General Government Airport Deferred Land Sales Land Sales Compensation Total $ 505,816 $ 3,687,549 $ - $ 4,193,365 406r342 406r342 37,051 69,196 - 106,247 1,695,705 3,970,767 - 5,666,472 $ 2,238,572 $ 7,727,512 $ 406,342 $ 10,372 A26 $ 406,342 $ 406r342 2,238,572 7,727,512 - 9,966,084 $ 2,238,572 $ 7,727,512 $ 406,342 $ 10,372,426 The accompanying notes are an integral part of the financial statements. 51 78 Mr. Bill Brighton, City Manager City of Kenai 210 F i dal go Street Kenai, AK 99611 Dear Sir: This letter is in response to the proposed capital improvements for the "Kenai City Dock". As you well know, Royal Pacific Fisheries is a processor located in Kenai Alaska. Therefore, it is reasonable to expect a negative response to the proposed public funding for the proposed commercial ice facility as well as a new processing station, This of course is the position of Royal Pacific Fisheries, from a position of public funds being used to compete against the private sector, However, more paramount than the individual company concern is the strong concern of us i ng publ i c funds for a venture that is doomed to be a continuous drain of additional tax dollars, .,.,Need and Necess i tom: As we understand the expenditure of Public Funds, there must be a showing of "Bleed and Necessity" for the project to be considered. Need: First let us review the "Need" of the proposed, project. If a study has been made, or is going to be made, we feel confident it will show there is no shortage of ice from the now existing production facilities in Kenai. The study will further show there is no shortage of ice making capabilities on a continuing basis. To the best of our knowledge the lack of ice is not a problem, Process Fac i l i t i es: As we al 1 know, the area is represented by many major processing plants. Further we all know that fish runs are cyclic in nature and further at this time the sockeye are running at a high level cycle. Even w i. th the run of 990009000 sockeye in 1987 the existing facilities were able to properly process the total run. Secondly, you will find by checking, that a larger number of floating processors are coming into Cook Inlet each years This practice started with our herring roe and has reached such proportion that the local processors are having to struggle for adequate quantities. Now, these processors are also moving into the salmon runs in ever increasing number. As previously stated, we are in a high cycle of salmon runs but I ask you what happens when the inevitable happens when the low cycle comes? The answer becomes quite obvious that during those years we have a technical oversupply of existing processors. Therefore, we take the position that Kenai has no showing of "Need" for a public funded processing facility, Homer: Homer took the same steps that are being contemplated here in Kenai. There is no need to belabor the problems that Homer has with the facility which was built regardless of the lack of need. With the "Oil Situation" the loss of tax revenue an only distant hope of improvement, we ask if this is a prudent step for our city? Private Indus The American way has always been that wherever possible "Private Industry" should be the parties to meet the .increased demands for expansion of that particular industry, Th is shou I d not be done through "Publ i c Fund i ng" or subsidy unless absolutely necessary. In this case there is no "necessity" and this project should be removed from further consideration, S i n c e r e A -I 4- Marvin Dragset President Royal Pacific Fisheries CITY OF HOMER PORT / HARBOR `07 ?1S-8959 4350 HOMER SPIT RD. AK Q91110 I - RODS 21S-8597 • February 1.988 Wm J• Brighton City Manager City of Kenai 210 Fidalgo Kenai, AK 99611 Dear Mr. Brighton, This letter is in response to your letter of January 15, 1988 concerning the possibility of the City of Kenai investingg in an Ic:e Plant and Cold Storage facilities. In response to your z _ letter, have discussed the matter with Keith Kornelius, your Public ►Yorks Director, and expia�.ned our concerns about the gossibthe Kenai becoming involved in the ice , ,,... rOduc t on business . While ,�: F ,�. �..� { �- .r ay,e some areas where Kenai and • CWw r sa, r y,_,m r w �, ,�, �.� e e that ice r)roauction R g 4 3 ��: . ,� ,�„,: ,. ,�.{ .-� �� -- =,ter oart-� for us to a d a e a. va • • s. ..Y v 4 s • ♦a . r • i .. . i �,. s w.4...� 1/ o 6,e :. •�e r- ...-a. - �.� - nor several sS a wave we Teen able a. w • ,.� *. g a. ♦ - .. wee ..� ••s { .� •.,' ' t•• !� � +r••+ r .r'! s-- Yr n � �r C e � ♦ 1 t •• l . •• v _ y s. E a a x -',� � � ��` `'• `� 4 a 'a •` +� a -t 'i « l s+i ," .ram - •.- Lou ywaz IWO ,rc + s � > •mw!- -a- i o,# •d� _ }^ F :& 4 f-' y'a. .ra � r+•, r•-• r-^a, y' Y^+.w i/'^A :1 •. • r'• nr n pervinsu y y AU( •°- e ran the plant `. ` full capac a e �... .. .... ►'r �-: •• = n ave � ✓ac.�log of orders • However ' t Sher �^:es • t h roLigi'.O•c.it both the halibut and sa lmon {r7g treasons, we met all of the demands, even processors though most g p sors h u. and fishermen provided no advance notification of ice requirements. It is not possible to operate an Ice p Plant at peak capacity for only ten days per year and generate sufficie nt lent income to cover depreciation as well as operating p g costs. If you are still considering participating in a publiclyfunded Ice Plant, I strongly suggest g y gg t that you visit our Ice Plant facility and allow us to discuss this matter more fully. 6♦1 L1LL.: t✓'G..v1Iii1.7 kAiGl ClJ r= L 1 A. LlJ L11N.. C711v♦1VL GlyV G.i1 t.4L , 1 i. •7L. %Al V successful in transferring some of the secondary processing from the Seattle area to Alaska. This is one of the objectives of the meeting that will be held in Anchorage on 18 February. Hopefully the advantages and disadvantages of having additional cold storage in Alaska will be discussed at that meeting and follow-up discussions or meetings will provide both the City of Kenai and the City of Homer with more data on the advisability of publicly funded cold storage facilities. Concerning public dock facilities, we fully support the construction of your dock and wish you well with your plans for future expansion. While there may be some competition for a few fishermen, over all it does provide improved services to the fishing industry of the peninsula and the total peninsula economy. Therefore, we will support you in your efforts to continue to expand and improve dock service in the Kenai area. We expect to have a deep water dock which will be available for transshipment of fishery products. Hopefully this infrastructure will stimulate additional interest on the part of the processors to do more secondary processing on the peninsula and to move some of their products through Homer. :chile there are no specific plans for this activity to take place at this R ime, we. are optimists c that all of the comman ities in south x entral Alaska, working Together,3 a^u ";o s :+ng try in Alaska so ...,,,at- .. n,,.-e r..4at' i o n'd o.�' ♦ :4 1i.r ::.+ei✓ z.• ..> i ...T r .R ! ao • S tom+ t. i[s3 #«� • ♦ ♦^•,. a.., • t°. u. ram, --• � �"� e c � -�► ' . � � . w Y /'� r Via e- • i l e i i•y c c• i - r e n �. s ... � . „i... k � v _ ��.. �� _.• + ✓ � �./ : _ v � �.. � • '�.�/ .: _ _ �� . i 1 .� +.1 � �o r .. .. .. y �. .. r r Seafoods f rom Alas kas ec::est, rant to assure 'yout e,a t i•;e are prepared to work with the y +Citof Kenai and Seafoocis of Alaska. Hopefully they will be able to expand in several areas of the peninsula to provide additional economic development and investment opportunities for all of us. If you or Keith have any specific questions concerning any of the matters contained in this letter or any of our plans associated with the fishing industry, please contact me. Sincerel , Will, To ey, Director WMT/tw c sm b 46 f fit. s El 4- TRADE ALASKAi A Summary of Considerations for Enhancing Community Growth and Economic Development of Kenai, Alaska, Through the Creation of New Cold Storage Facilities to Support the Kena i. Peninsula Seafood Industry. Prepared at the Request of: Mr. John Williams, Mayor and City of Kenai City Council City of Kenai - By Seafoods from Alaska, Inc. Mile Post 82 Sterling Highway P.O. Box 307 Sterling, Alaska 99672 (907) 262-9050 February 18, 1963 F' %1 !i Contents W. I. Executive Summary 1 Ji. Need for the Economic Development 2 III* Facility Cost and Specifications 3 Iva Location 5 v. Facility Management and operation 6 VI. Economic Benefits , I. Executive Summary The City of Kenai, the largest city on the Kenai Peninsula, rests in the heart of one of the last frontiers of the seafood industry; the shores of Cook Inlet which, for years, have provided the resource base to supply much of the world with quality seafoods from untainted Alaskan waters. With business forecasters predicting a doubling of seafood consumption by 1990 (from 15 pounds per capita per year to 30 pounds annually*), Kenai seafood processor and com-mercial fishermen are In a prime economic position to expand their product lines, increase the volume of seafood processed, and intensify domestic and international marketing to fully capitalize on the marked worldwide upsurge in seafood constimpt i on . To keep pace with growth in the seafood industry, especially the production of secondary or va1ae added seafood products, it is proposed that the City of Kenai continue to establish its prominence as an economic hub of the Alaskan fishery by creating critically needed cold storage capacity for seafood processors and commercial fishermen. This development is viewed as a strategic.economic Investment which may well be an important step toward establishing the first specialty seafood processing industrial center in the State of Alaska, It will further build the economic strength and stability of the community, including commercial fishermen, seafood processors, and those who will compete for and obtain new Jobs resulting directly and indirectly from the new facility. This new facility would: 8e constructed In part through federal grant support under the Economic Development Administration grant program. Cost approximately $1.4 to $1.5 million. or Directly or indirectly provide for the creation of approximately 166 permanent Jobs and 377 part-time jobs between now and 1990, .a total of 543 jobs. - Produce profits during the first year of operation. * New York Times, March 1, 1987 Iwo _• •_• _ _.._..a. +' ._.._..� _ — L Imo_ r-8 _ -a H. Need for the Economic Development Seafood processors and commercial fishermen need additional bonded cold storage capacity to step up processing of value added products and to maintain seafood inventories. The need for additional bonded cold storage capacity has and is projected to,increase concurrent with the upsurge in demand for seafood and the evolution of secondary iir iialue' added processing of Salmon and halibut on the Kenai Peninsula. The absence of additional cold storage capacity will inhibit economic growth and job creation on the Kenai Peninsula by the stammer, of 1988. Significant expansion of secondary or value added seafood processing is an important economic factor in substantiating the need for a cold storage facility. From our perspective, the following points are relevant. 1. value added processing, as opposed to primary processing (heading and gutting and selling to markets), returns profits of which are four to six fold greater. 20 value added processing requires year-round jobs to produce products throughout the year. 3. The projected increase in demand for value added products can not be met without access to banded cold storage facilities to hold or preserve the resource base. In addition, from a financing perspective, loan guarantees and similar financial instruments for building inventory cannot be obtained without bonded cold storage facilities. 49 With the marked upsurge in seafood consumption, the demand for quality, untainted Alaskan seafood will increase disproportionate with other world fisheries. The seafood demand and the economic return of industrial expansion within the seafood industry will be impeded if cold Storage facilities are not established. 5. Commercial fishermen are looking for additional cold storage capacity to hold their catch for later season, higher priced markets or fo'r :ralue- added processing. 6. Seafoods from Alaska, Inc. expects to need new bonded cold storage capacity for at least 3 million pounds of f f sh i n 1° 88-89; c er a% million pounds in 1989-90; and nearly 11 million pounds in 199Q-91. The increase in storage and processing is expected to yield an increase of 53 additional full tlme and 58 mart time jobs in 1988-89; another �3 full time and 94 part time jobs in. 1989-90; and another 50 full time and 225 part time jobs In 1940--91. The expansion of our bus ine... s In production and sales and jobs created wi11 not be accomplished unless s(aaguate bonded storage facilities exist to hold and preserve our resource 'D85e. _2- T E .�1 1 — e _.._. T H U 1 4 - 0 0 •_: •_- ra L Ck r-1 = i t-1 -a • IIi. Facility Cost and Speclfications It is projected that the cold storage facility will Cost approximately $1.4 million to $1. 5 million to construct, with Cost estimates as follows for a f 1ve million pound Capacity cold storage facility:* 1. Cold Storage Room. Prefab panel type Construction. Storage Capacity of five million pounds, with 16 foot high stacking. overall building dimensions are 150 feet long by 120 feet wide and twenty feet high. Total refrigeration horsepower is 2506 Proposed lighting is sixty-three ( 63 ) 150 watt low profile high pressure sodium lights. Sub -total, @@@**$4381469.00 ( , _ fir -square foot is 24.3 J) 2. Metal building enclosure for cold storage room. Included would be space for refrigeration equipment. Building dimensions are 210 feet long by 135 feet wide by 30 feet high. .S u b t o t[� � • ♦ ♦ • • i . • . a • • • • • • • $ 4 �J Z � J V � • O te..�U..� ot.,is $14.16) 3. Concrete footings and slab to support items 1 and 2, above (with excavation by others. Subtota 1 • • • . • • • • ♦ • • . & a A a a $ 2 5O, O00 . OO 4. Standard dry pipe fire protection system for cold storage room, metal building and refrigeration equipment space. Piping is galvanized. Water requirement Is 45 P. S. I . residual at 2,000 gallons per minute flow. Fxg1.usions include underground service, system monitoring, valve house with heat and lights, and fire protection system for structure based on local codes. Also not included are the costs of land acquisition and other siting related costs. 5. Subtotal, items 1-4, above.................... • ...........�:.�� 6. Estimated Total Cost (including excluded items) . . . . . . . . • ..;1. 4 to $1. � mill ion * Based on price quotes provided by Seattle RefrigeratioD Mfg. Co., :nc., Seattle, WA, dated December 18, 1987. _3- r , • In addition, with some facility design alterations, it is conceivable that the facility could also be used as a "reservoir to store ice for peak in -season fishing periods lasting from roughly June through September. The shortage of adequate and readily accessible ice was critical during the 1987 season and is expected to remain as a substantial impediment to seafood production and quality control as processing volumes increase in and around the City of Kenai, With respect to facility energy requirements, we suggest consideration be * given to feasible -alternative energy sources, where cost effective, such as solar, wind, and tidal generated power alternatives. -&.4- i IV, Location The ultimate location for siting the facility will be decided by these who govern the City of Kenai. To maximize the economic benefits of the development and provide for the long- term integration of facilities into a future Industrial district, the following siting factors should be considered: o The facility should be located in close proximity to dockage facilities on the Cook Inlet which provide a direct linkage between commercial fishermen, processors and the facility, o The facility should be located near sound public transportation, with direct linkage to main routes within .the City of Kenai. 0 other siting factors include availability of water supplies and electrical power, as well as existing community development plans and/or zoning restrictions, and state and federal laws and regulations. L -5- 1 '=' V. Facility Management and Operation The City of Kenai will need to decide on the structure and method for managing and operating the cold storage facility. Points for consideration include; 1. Seafoods from Alaska, Inc, will agree to operate the facility. on a share and share alike basis with all Kenai seafood processors and commercial fishermen, giving first priority to those involved in secondary or value added processing and marketing from Alaska, 2. Seafoods from Alaska, Inc, will be willing to enter into a long term lease to secure facility space and assume facility operations, under the supervision and guidance of the City of Kenai. 3. As a tenant of the facility, with the City of Kenai as landlord, Seafoods from Alaska, Inc. will agree to perform all general services required to maintain and operate the facility which should be developed and included in a standard lease agreement. The tenant will, on an annual basis, submit to the landlord a schedule for use of the storage facility for the subsequent f 1sca l year, taking into account the holding needs of all Kenai seafood processors and commercial fishermen, giving first consideration to customers Involved in value added processing. As tenant, we would be required to demonstrate that a satisfactory program has been developed to Serve Kenai customers with equal access availability, consistent with the priorities for facility useage. Each year, the tenant will provide the landlord an annual report of the facility useage and operations, including a description of services rendered, expenses and employment, and other benefits accrued to Kenai. -6- 4 J ` VI. Economic Benefits and Considerations U*,Fees Our economic analysis of the project is based on a user rate of $.02 per pound. This amount is consistent with other similar operations and is based on Information provided by the Sea Freeze Company of Seattle, Washington. Tenant Faci1ity_.Ug.e Commitments Seafoods from Alaska, Inc: can provide a substantial minimum up -front commitment of facility space which, with contributions from other processors and commercial fishermen, will be sufficient to produce a profit in revenue for the t irst year of operation. We will commit to at least fifty (50) percent of the facility space in 1988 and as much as 100 percent of the facility space by the 1990-91 fiscal year,, gob Creation The cold storage facility will directly or indirectly provide a critical basis for job creation and retention. It is anticipated that the operation and maintenance of the facility will create a' minimum of one permanent job and four seasonal. Jobs. The facility will also permit the creation of a significant number of additional jabs which would not be Crewed without this development. We estimate that fully eighty (80) percent of the new full time and permanent jobs we expect to Create between now and 1990 will depend on the availability of a bonded cold storage facility which will enable us. to hold and preserve our resource base for value added production. The jobs which we expect to Create as a result of this economic development are -as follows: obs- mar New Jobs Created Total New Jobs Created Current* 1987 1988 1989 1990 Permanent 65 53 53 60 166 Seasonal 203 58 94 225 377 Total 268 ill 147 285 543 Other jobs will be created as a result of fnc;lity construction and services related to the operations of the facility. x Total current workforce -7- F. 1 - Revenue The following table shows an estimated revenue schedule for the cold storage facility assuming an Economic Develops►ent Administration grant equal to fifty percent of the total facility cost estimate of $1..4 million. Cold Storage Facility Economic Projection Fiscal Years 1988-1992 Cost $1.4 million Fiscal Fiscal Fiscal Fiscal Year Year Year Year � 3 J.99_90 19 9 0 - 91 1 1a 1 72 z �1 Revenues: i.. Seafoods from AK $.1351851 $351 399 $690 000 $ 690 OOa , Other 70,000 50,000 0 0 Total Revenues $205, 851 $401, 399 $690, 000 $690, 000 Total Operating Costs: Operations $150, 000 $1751000 $200, o0o $225, 000 Revenue to Sponsoring $105,851 $226,399 $490rOOO $465 000 Local Government Unit "Note: The above data is a conservative projection and does not rpfle t the possibility of use of the facility during off-season for other Alaskan fisheries. -8- 1 P E D — .-. -..� _ .-. _ ___ _ 1 ._. ._.._. T }-� �_� 1 � _ �=1 � ._, •_-. �a. t' ._� ._..� _ L ��_ r� _ i r-I Other F_r nmc Benefits In addition to the seafood industry, tourism constitutes a major economic thrust for the Kenai Peninsula. With the cold storage facility and other potential developments (e.g., a potential state-of-the-art salmon oil recovery plant and others), Seafoods from Alaska, Inc. will work with the City of Kenai and officials in the Trade Alaska Campaign to create and manage a special tour/visitation program of the seafood industry for Kenai Peninsula tourists. This program could include a review of the docking facilities, the cold storage facility and operation, and primary and secondary processing operations at Sterling, Alaska. With increased emphasis on the City of Kenai as a seafood industrial hub, there Is good potential to further use the Kenai airport for major carriers for shipping seafood products. In addition, Seafoods from Alaska, Inc. is interested in working with the Mayor of the City of Kenai and the City of Kenai City Council to establish and operate an Interpretive ' center and retail outlet either in or adjacent to the Kenai airport. .9_