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HomeMy WebLinkAbout2017-11-29 Council Minutes - Work SessionKENAI CITY COUNCIL WORK SESSION NOVEMBER 29, 2017 — 6:00 P.M. KENAI CITY COUNCIL CHAMBERS MAYOR GABRIEL, PRESIDING NOTES Council present: B. Gabriel, H. Knackstedt, T. Navarre, G. Pettey, J. Glendening, and B. Molloy Others present: City Manager P. Ostrander, City Manager Assistant C. Cunningham, Deputy City Clerk J. Kennedy, City Attorney S. Bloom, Finance Director T. Eubank, Airport Commissioner G. Feeken, Airport Commissioner P. Minelga, Planning & Zoning Commissioner K. Peterson, and Airport Commissioner C. Henry Mayor Gabriel began the work session at approximately 6:00 p.m. introducing the Council members and advising the work session was called to discuss the Land Sale and Leasing of City Lands. City Manager Ostrander introduced staff present and informed those in attendance that an internal working group was formed to address the Land Sale and Leasing of City Lands. Ostrander explained that this group worked diligently over the course of 8 months and Assistant to the City Manager, Christine Cunningham would present on responsible Land Sale and Leasing Policies and Procedures. City Manager Ostrander added that the goal is a product that makes sense to the current Lessees, to the existing businesses in the City of Kenai, to the businesses that are potentially looking to locate here, and to the City of Kenai itself. Ostrander noted that input from Council, Commissioners, and the public are greatly encouraged. Legislation to be presented to the City Council City Manager hopefully in early January. City Manager Ostrander introduced Donna Logan with the McDowell Group and noted that the two goals are to address those properties off -Airport land and those properties on Airport Reserve. Mayor Gabriel welcomed public comment before the presentations as listed on the agenda, but offered that it could instead be added to the time provided after the presentations. D. Logan provided handouts and presented on the Airport Land Sale Valuation in varying scenarios and added that the financial factors to consider are: 1) How do you Value your Land; 2) Inflation; and 3) Impact on Property Taxes. Logan explained that a financial analysis was done as requested by the City of Kenai and a memo summarizing that was also included in the handouts. Logan provided clarification that a market appraisal or lease value assessment was not done on private sector versus the Airport section; also provided clarification on projections of leasing versus selling and the permanent fund returns and the return rate. Assistant to the City Manager, C. Cunningham provided the Land Sale and Leasing Policies and Practices handouts and presented it. Cunningham explained that the working group focused on recommendations to address a number of issues as well as simplify and streamline the City's land sale and lease program. She provided background information, where the City of Kenai is now, objectives developed, an action plan representing recommendations, and a timeline. Included in KENAI CITY COUNCIL WORK SESSION NOVEMBER 29, 2017 PAGE 2 C. Cunningham's handouts and presentation was the draft Municipal Lands Management Plan and Lands Inventory Analysis. Duane Bannock expressed gratitude to City Manager Ostrander for his time and working to thoroughly change what is currently not working. Bannock expressed dissatisfaction in the massive loss of the bowling alley that was sold by the City of Kenai at price substantially under its appraised value and then put together a generous financial plan to sell the property. Bannock also expressed that the selling of the bowling alley completely changes the dynamic of the figures presented and asked that it is considered when weighing the factor of risk to sell or to lease. Airport Commission Member P. Minelga spoke against selling the airport property; asked if an infrastructure analysis was done; suggested the plan goes further than simple land management and it looked like a master plan for future of the City. He noted things to keep in mind included what would be appealing to draw potential new businesses to Kenai and how to market to businesses from the lower 48's. Rick Baldwin expressed thanks for efforts in what has been developed and the presentations and lease "revolution" coming. Baldwin noted that it gives the chance to make some upgrade decisions knowing the property will not disappear at the end of a lease. Baldwin spoke against the airport investment fund suggesting to move away from that support; and concerned that the 125 percent of fair market value charge sends a price signal that the parcel is really not for sale. Council Member Knackstedt questioned if there will be another work session before presenting to City Council. City Manager Ostrander responded that he hoped to present it to City Council in January and suggested a work session after legislation has a more finalized format. Ostrander emphasized interest in getting feedback from Council and the public. Council Member Molloy commented that the City of Kenai and every piece of land is unique. Molloy thanked the working group tasked with this and noted it gives a really good starting point as to where to go. Councilor Molloy agreed with the need for applicant friendly rules, less regulatory, improvement around the fees, needing protection from excessive rent increases, having predetermined conditions for extensions or renewals of leases, development incentives, etc. Molloy supported having funds put in the budget for IT to put into making everything work on the City of Kenai website. Council Member Navarre expressed appreciation at what was provided as requested by the Council and looks forward to working through this process. Council Member Glendening noted that at some point the Airport will need to stand on its own, boundaries, financial plan, etc. Glendening expressed concern of the reality that many businesses are coming to end of lease and he was glad to see this discussion moving forward to a plan of action. Glendening appreciated the working group looking at the past practices, the current and into the future, and suggested having another work session on this. Council Member Pettey expressed appreciation for the thorough and broad range in the presentations, and for the public attendance and comments as it provided insight. Mayor Gabriel noted that he thinks what was provided today incorporated a lot of concerns that were heard from people over the years. Gabriel expressed a long-term want for economic development, people succeeding, businesses helping businesses, and lease holders having KENAI CITY COUNCIL WORK SESSION NOVEMBER 29, 2017 PAGE 3 incentive to invest in their business without concern when they are at the end of their lease. Mayor Gabriel expressed his support in the working group's direction. Those that attended and participated in the meeting were thanked by Council. The work session adjourned at approximately 7:50 p.m. Notes prepared b : ocu lyn K nnedy City Clerk /KEN 1 pF •...7.•'q! /,-k C.) n4w `1ED ��%