HomeMy WebLinkAboutResolution No. 2018-22Sponsored by: Administration
CITY OF KENAI
RESOLUTION NO. 2018 -22
A RESOLUTION OF THE COUNCIL OF THE CITY OF KENAI, ALASKA, APPROVING A LEASE
OF AIRPORT RESERVE LANDS BETWEEN THE CITY OF KENAI AND HILCORP ALASKA,
INC., FOR LOT FIVE (5), BLOCK ONE (1), FBO SUBDIVISION AND LOT SIX (6), BLOCK ONE
(1 ), FBO SUBDIVISION .
WHEREAS, on April 16, 2018, Hilcorp Alaska, Inc. (Hilcorp), submitted an application to lease
Lots 5 and 6, Block 1, FBO Subdivision, City-owned properties within the Airport Reserve; and,
WHEREAS, Hilcorp, provided on their lease application plans to construct a hangar, office
spaces, gravel parking, and a security fence; and,
WHEREAS, this development will be mutually beneficial to the City and conforms with the Kenai
Municipal Code for zoning, Kenai's Comprehensive Plan, the Airport Land Use Plan, Airport
Layout Plan, Federal Aviation Administration regulations, Airport Master Plan, Airport
Improvement Program grant assurances, and Airport operations; and,
WHEREAS, the investment of Hilcorp Alaska, Inc., supports a lease term of 35 years; and,
WHEREAS, the City of Kenai did not receive a competing lease application within thirty (30) days
of publishing a public notice of the lease application from Hilcorp; and,
WHEREAS, at their regular meeting on May 9, 2018, the Planning and Zoning Commission
reviewed the lease application and recommended approval by the City Council; and,
WHEREAS, at their regular meeting on May 10, 2018, the Airport Commission reviewed the lease
application and recommended approval by the City Council.
NOW, THEREFORE , BE IT RESOLVED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA:
Section 1. That a Lease of Airport Reserve Lands is approved and the City Manager is
authorized to execute a lease between the City of Kenai, Lessor, and Hilcorp Alaska, Inc., Lessee,
as follows:
Lot improvements as outlined in lease application from Hilcorp Alaska,
Incorporated, including a ramp, fuel farm, office spaces, approximately 14,300
square foot hangar, gravel parking for 50 vehicles, and an eight (8) -foot high
security fence around the vehicle parking lot to be completed within two (2) years
of signing the lease;
The evidence must be submitted to the City within sixty (60) days of the completion
of the development and improvements;
The lease term will be 35 years;
Resolution No. 2018-22_
Page 2 of 2
Hilcorp Alaska, Incorporated , will replat the parcels to vacate the property line
between the two adjoining lots prior to construction of the hangar.
Section 2. That this resolution takes effect immediately upon passage.
ADOPTED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, this 5 th day of June, 2018.
ATTEST:
1llttl~ «1/tlv a Pa.r~ Ct'tff «1/t/v a ratlif'e JI
21 0 F id algo Av e , Kenai , Alaska 9961 1-779 4
Te lephone : (907 ) 283-753 5 I Fax: (90 7) 2 83-3014
www. kenai. city
MEMORANDUM
TO:
THROUGH:
FROM:
DATE:
SUBJECT:
Mayor Brian Gabriel and Kenai City Council
Paul Ostrander, City Manager
Elizabeth Appleby, City Planner
May 29, 2018
Resolution No. 2018-22 -Kenai Municipal Airport Reserve Lease Application
from Hilcorp Alaska, Inc. -413 and 421 North Willow St., Lots 5 and 6, Block
1, FBO Subdivision
Hilcorp Alaska, Inc. (Hilcorp) submitted an application on April 16, 2018 to lease Lots 5 and 6,
Block 1, FBO Subdivision within the Airport Reserve . Improvements include a ramp, fuel farm,
office spaces, approximately 14,300 square foot hangar, gravel parking for 50 vehicles, and an
eight (8) -foot high security fence around the vehicle parking lot. Hilcorp has submitted the
application filing fee and is in compliance with obligations due to the City and Kenai Peninsula
Borough . The lease term would be 35 years, with a lease entry date in fall 2018.
The site plan shows the proposed hangar will cross the property line between the two lots. The
property line would be vacated prior to construction of the proposed hangar, requiring an approval
of the plat by the Planning and Zoning Commission.
Pursuant to Kenai Mun icipal Code (KMC) 21 .10.040(b)(3), the City will require Hilcorp to complete
lot improvements within two (2) years of entering into a lease.
The parcels are within the Airport Light Industrial (ALI) Zone per KMC 14.20.065. The purpose of
the ALI Zone is to protect the viability of the Kenai Municipal Airport as a significant resource to
the community by encouraging compatible land uses and reducing hazards that may endanger
the lives and property of the public and aviation users. The proposed aeronautical use by Hilcorp
for passenger and cargo transportation would be a permitted use in the ALI Zone.
The Imagine Kenai 2030 Comprehensive Plan outlines goals, objectives, and action items for the
City, including some pertaining to the Kenai Municipal A irport:
Page 2 of 2
Reso lution No. 2018 -22
• Objective T-1 : Support future development near or adjacent to the airport when such
development is in alignment with the Kenai Municipal Airport's primary mission, ''To be the
commercial air transportation gateway to the Kenai Peninsula Borough and Cook Inlet."
The proposed use by Hilcorp complies with the Imagine Kenai 2030 Comprehensive Plan in that
it supports development that is in alignment with the Kenai Municipal Airport mission .
The Airport Land Use Plan was developed to identify the highest and best uses of Kenai Municipal
Airport land . The Airport Land Use Plan discusses the need for more hangar facilities, promoting
use of the Kenai Municipal Airport by service providers and the traveling public, leasing land , and
enhancing the opportunities for local economic development. The proposed use by Hilcorp
complies with the Airport Land Use Plan . It would enhance local economic development and
provide more hangar space.
Pursuant to KMC 21.10.060(c), the City must publish public notice of a lease application and allow
thirty (30) days for competing lease applications for the same property to be submitted to the City
for consideration . The City published a public notice of the Hilcorp lease application in the
Peninsula Clarion on April 27th. The City did not rece ive a competing application to lease this
parcel within 30 days of the notice (through May 27th).
The Planning and Zoning Commission recommended approval of the lease application at their
May 9th meeting, contingent upon Hilcorp submitting a plat to the Planning and Zon ing
Commission showing a vacation of the property line the proposed hangar would cross. The Airport
Commission and Airport Manager recommended approval of the lease application at their May
101h meeting .
Thank you for your consideration.
Hilcorp Alaska, LLC
April 16 , 2018
Wilma E. Anderso n
C ity of Kenai
2 I 0 Fidalgo A ve nu e
Kenai , Alaska 996 11
v ia: Email and USPS
Re: Kenai Municipal Airpo 11 Reserve Lea se App lication Resubmittal
Dear W il lie:
Kevin A. Tabler
Land Manager, Alaska
Post Office Box 24 4 027
Anchorag e, AK 99 524-4027
3800 Centerpo1nt D n ve
Sui t e 1400
Anchorage, AK 99503
Phone: 907/7 77-8379
Fax : 907/777-8580
ktabler@h1lcorp.com
Rt:C EIVED
CI. v O F KENAI
.-r 'i 20 f'
PLA f\INlNG DE PA RT MENT
I lilcorp A laska, LLC (Hil corp) is in receipt of your March 19, 20 18, letter advising of a c h a nge in
Kenai M unic ipal Code 2 1.10. (Leasing of Airport Reserve Lands) by O rd inance 2998-20 18 . T he
effect of such acti on has rendered H i lcorp 's orig inal August 18 , 20 16, Kenai Mun icipal Airport
Reserve Lease Application expired.
A ttach ed for y our consideration a nd approval is a new lease appl icati on filed pursuant to the
revised Kenai Municipal Code for Lo ts 5 and 6, FBO Subd ivi s ion. As part of this applicati o n , I
ha\·e incorporated two (2) new pl ats; o n e (1) depicting an aerial v iew of Lot s 5 and 6 in relation to
the Kenai Municipa l A irpo11 and two (2), a specific s it e pl an depicting our proposed improvements
as they re late to Lots 5 and 6.
Add iti onally, 1 have attached a co p y of our origin a l Augu st 18, 20 16 , Lease App lica tion submi tt al.
T he contents of which are detailed below and provide supportive infomiation for your review. The
only deviation from th e o riginal Lease Application and this proposed new application, is the
appli cation form itself, starting date for propert y improvements and t he subm ittal of th e
abovementioncd updated and revised plats.
Contents of o r igi n a l August 18. 2016 Lease Applicati o n:
Letter to th e city of Kenai stating our intent t o develop the s ite
Completed lease appl icati on
Compl ete d d e ,·e lopm e n t pl an checklist
Si te p la n , which i s not filled in because it doesn't apply
S implifi ed facil ity drawing
Kenai a irport FBO Subdivision survey -for reference
FAA fom1 7460-1
I li lcorp Check Number #008204938 in the required amount of $4, I 00.000
Kenai Pen in sul a Borough Tax Co mpliance Cert ification
Wilma E. Anderson Lener
Kenai Mu nicipal Airport Re serve Le ase Applica tion
Apri l 16. 2018
Page2of2
lt is our belie f, w it h what Hilcorp has su bmitted he rein , thi s submittal constitutes a compl ete Kenai
Municipa l A irport Rese rve Lea se App lication package. We loo k forward to your acce lerated
review of same as much discussion and revi ew ha s <:1 lr eady taken place r egard in g the merit s of our
pr opo sed lease app l ication .
Anachmen ts
cc: Josh Good \\ in /HAK
Marc Bond/HAK
Name of Applicant :
Mailing Address:
Phone Number(s):
E-mail : (Optional)
Name to Appear on Lease :
Mailing Address :
City of Kenai
Kenai Municipal Airport
Land Lease Application
1-1.·1 c
Application fo r :
0 New Lease
0 Amendment
0 Exte nsion/Ren ewal
State : A I<-Z ip Code: "1"'5o
Phone Number(s): Home Phone : ( Work/ Message Ph one : (107) ,77 _ '3~ ?Cf
E-mail : (Optional )
T ype of Applicant: 01ndividual (at least 18 years o
~Li mited Liability Company (LLC)
D Corporation
D Government Oother _______ _
Description of Property and Term Requested
Legal Descript ion of Property: ~f...,,4 1 ,.AU/J bVC:.~'-,4i~po{\..( .Su~v ~'r e .. oL\<~
0 .1 ,v.,,... .IJO'fl."1~ ot: TtiL .-1114.~o~I T<.QU-1'1..Jrt'-
Does the Property Require Subdivision? (if Yes , answer next two questions )
Are you prepared to be respons ible for all costs associated with subdivision?
Do you believe th e proposed s ubdivision wou ld serve o th er Airport purposes?
Do you have or have you ever had a Lease with the City of Kenai?
If Yes , please provide description of property leased (e .g . legal o r physica l description):
Is this applica tion for renewal or term extension of an existing lease?
If Yes , please provide a description of the property leased :
Proposed Use (check o ne): kSJ Aerona utica l 0Non-Aerona uti cal
Do you plan to const ru c t new or additional improvements?
~YES DN o
(BYES D No
EJ YEs DNo
D YES ~NO
D YES ~NO
~Y ES DNo
If yes , will the improvement change or alter the use unde r an existing lease?
If yes, what is the new proposed use?
If yes , what is the type of improvement? (e .g . building improvement, land improvement) ~ µ ,,....PNN <c ~
If yes , wha t is the nature of the improvements? (e .g . maintenance, landscaping , new construction)
List of proposed use and business activities :
Pr\l\J ~T"L 1.HL 8 't· H I L4t""'' P-o ~ f't46JCJV'-Lrt. rJ-c."'~*"l> T~-"..V ~f'•n.r,..r 1 0 .,._)
Lease Extension or Renewal
Method to determine value of improvements/term for a lease renewal or expiring lease :
0Professio nal estimate of the remaining useful life of th e principle improvement on the property
0Market value appraisal of th e principle improvement on the property
0Purchase price of improvements
Subm itting an app lica tion fo r a lease does not give the app licant a right to lease or use t he land requested rn the applicat ion . Th e applicat ion
shall expire twelve (12) months after the date the appl ication has been made if the City and the applicant have not , by that time. entered into a
lease. unless the City Council for good cause grants an extension for a period not to exceed six (6) months The Cit y has no obligation to
amend , re new or exte nd a lease and may decline to do so upon making specific findings as to why a lease renewal , extension . or amendment
is not in the best interest of the City
Signature : /~ (~---Date : 0 .. 1/1 1-/-;1..gl 6 -
~ /
Print Name: 50~kl>A :D. 6oo]) '6J •,J
Titl e : J)J R ·:t:.c: .. :r ~ ~,. AU I A ) 10 ~.._,
I Municipal Airport
KenaMa in Terminal
Proposed Hilc_o~ ~
Hangar Locaho ,· ""'
Notes
Proposed L ot Usage.
Lots 5 a nd 6 w ou ld be merged mto one lot.
Hl\c.o rp Pro~d Ktrv.i H1ng•1
Ke.Ml M unc~I A1fporl
Ka nai Alu~• 99611
FoQur.2--
~iOia
,ll'lcl'l•61fHI
N
A
ff llilcorp Alaska, LLC
August 18, 2 016
Willie And erso n
City of Kenai
2 10 Fidalgo A venue
Kenai , Alaska 99611
Re : Kenai Municipal Airport Res erve Lea se Application
Dear Willie:
Kevin A. Tallier
Land Manage•, Alaska
Po st Office Box 2440 27
Anchorage, AK 9952'1 ·40 27
3800 Cen terpoint Drive
Suite 1400
Anchorage, AK 99503
Phon e : 907/777·8379
Fax: 907/777 8580
ktabler@hll corp.com
At1ached and detailed below for you review and acceptance is what Hilcmv Alaska, LLC
(I-Jilcorp) believes to be a complete Kenai Municipal Ai rport Re serve Leas e Application
package.
Letter to the city of Kenai stating our inte n t to develop the site
Completed lease applicat ion
Comp le ted development plan check lis t
Site plan , which is not filled in because it doesn 't apply
Simplified facility drawing
Kenai airport FBO Subdivision survey -for ref ercnce
FAA Form 7460-1
Hilcorp Check N umber #008204938 in the required amount of $4, I 00.000
Kenai Peninsula Borough Tax Compliance Ce1iification
Please advise if you require additional infomrntion to deem thi s applica tion complete .
cc: Keith Nickles/HAK
Bill Swenson/HEC
Mnrc Bond/HAK
August 2, 2016
To : The City of Kenai
Attn: Airport Manager
Hl lcorp Alaska LLC (HAK) seeks a long term lease of Blocks S & fj (Block 1) located within the FBO
Subdivision of the Kenai Municipal Airport for the purpose of developing a faclllty that will house as
many as three company owned aircraft. The facility would be built to the following specifications:
• Steel construction that will comply wlth all airport, city and FAA regulatory requirements
concerning ai rcraft operations.
• A ramp area large enough to allow for aircraft ground handling/servicing .
• A company owned/managed fuel farm with at least one 4,000 gallon fuel tank.
• The facility would be situated In such a way that the hangar door would face to the west
and the associated ramp would be easily accessible from the main Kenai airport ramp area .
· • The physical hangar space will provide office space, allow for passenger and cargo
receiving/processing and also provide space for aircraft maintenance and flight operations
administration.
• Sufficient parking for as many as SO employee vehicles.
• Estimated cost Is approximately 2-2.SM .
This building Is intended to support HAK flight operations In the Cook Inlet. When fully operational
there will be as many as 8 full-time employees assigned to the facility. Should helicopter operations
move from OSK, the number of full-time employees will increase to as many as 16.
The anticipated design phase of the facility will be calendar year 2017, with site development and
construction beginning sometime in 2018 . The current plans are subject to final management approval
and could change based on various economic factors and operational needs. Throughout the process
HAK will coordinate with Kenai city officials to ensure compliance with the airport's land use policy.
The contact for questions regarding th ls project will be Keith Nickles, Director of Aviation, Hllcorp Energy
Company. Email: knlckles@ hi lcorp.com. Phone : (713) 655-6316 .
Sincerely,
Keith Nickles
Director of Aviation
Hllcor p Energy Company
13007.1