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Home My WebLink AboutResolution No. 2019-26Sponsored by: Administration CITY OF KENAI RESOLUTION NO. 2019 -26 A RESOLUTION OF THE COUNCIL OF THE CITY OF KENAI , ALASKA APPROVING THE EXECUTION OF A RENEWAL OF LEASE OF AIRPORT RESERVE LANDS USING THE STANDARD LEASE FORM BETWEEN THE CITY OF KENAI AND SCHILLING RENTALS, LLC, FOR LOT 9A, FBO SUBDIVISION NO. 9. WHEREAS, the current lease between Schilling Rentals, LLC, and the City of Kenai for Lot 9A, FBO Subdivision No. 9 , will expire on May 31, 2019; and, WHEREAS, Schilling Rentals, LLC, submitted an application for renewal of lease for a term of 33 years based upon an investment amount of $224,475; and, WHEREAS, Schilling Rentals, LLC, has leased the subject property from the City of Kenai since May 2014 for the purpose of supplying parking for aircraft, providing for access of service vehicles , and the transport of aircraft to the adjacent hangar located on Lot 11A; and, WHEREAS, Schilling Rentals, LLC, is current on obligations to the City of Kenai and required improvements in their existing lease ; and , WHEREAS, the use proposed is compatible with Kenai Municipal Code for zoning within the Airport Light Industrial Zone and the City of Kenai Comprehensive Plan ; and, WHEREAS , the use proposed is compatible and conforms with 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, at their regular meeting on April 10, 2019, the Planning and Zoning Commission reviewed the lease renewal application submitted by Schilling Rentals, LLC and recommended approval by the City Council; and, WHEREAS, the Airport Manager reviewed the lease renewal application submitted by Schilling Rentals , LLC and recommended approval by the City Council. Resolution No. 2019-26 Page 2 of 2 NOW , THEREFORE , BE IT RESOLVED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA: Section 1: That a Renewal of Lease of Airport Reserve Lands is approved and the City Manager is authorized to execute a lease renewal between the City of Kenai, Lessor, and Schilling Rentals, LLC, Lessee, for a term of 33 years ; and , Section 2: That the resolution takes effect immediately upon passage. ADOPTED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, this 17th day of April, 2019. BRIAN GABRIEL SR., MAYOR ''tltffar «1/t/t, a Pair~ Ot'tf «1/t/t, a Fat~" 210 Fidalgo Ave , Kena i , Alas ka 99611 -7794 Telephone: (907) 283-7535 I Fax: (907) 283-3014 www. kenai .city MEMORANDUM TO: THROUGH: FROM: DATE : SUBJECT: Mayor Brian Gabriel and Kenai City Council Paul Ostrander, City Manager Elizabeth Appleby, City Planner April 11, 2019 Resolution No. 2019-26 -Execution of a Renewal of Lease of Airport Reserve Lands Between the City of Kenai and Schilling Rentals, LLC Schilling Rentals, LLC (Schilling Rentals), submitted an application to the City for a renewal of the lease set to expire on May 31 , 2019 on Lot 9A, FBO Subdivision . The application requests a term of 36 years, however, after confirming the investment amount of $224,475 against the term table in Kenai Municipal Code (KMC) 21.10 .080, the City and the applicant are in agreement to a term of 33 years . Schilling Rentals also leases the adjacent property on Lot 11A that has a green-colored hangar. Lot 9A wou ld support the hangar operations of the adjacent parcel. The original lease application notes the parcel uses will involve supplying parking for ai rcraft, providing for access of service vehicles , and the transport of aircraft to the adjacent hangar located on Lot 11A. Schilling Rentals included photos in their application to demonstrate improvements (gravel and site preparation work) that have been done during the five years of their current lease . Schilling Rentals is current on rent payments and obligations to the City. The parcels are within the Airport Light Industrial (ALI) Zone per Kenai Municipal Code (KMC) 14.20 .065. The intent 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 use by Sch illing Rentals is a permitted use in the ALI Zone and is a compatible land use . The Imagine Kenai 2030 Comprehensive Plan outlines goals , objectives , and acti on items for the City, including this one pertaining to the Kenai Municipal Airport: Page 2 of 2 Resol ution No. 2019-26 • Objective T-1 : Supporl future development near or adjacent to the airporl 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 Schilling Rentals complies with the Imagine Kenai 2030 Comprehensive Plan in that it supports development on lease lots and the development is in alignment with the Kenai Municipal Airport's marketing strategy . The Airport Land Use Plan was developed to identify the highest and best uses of Ke nai Municipal Airport land. The Airport Land Use Plan discusses leasing land and enhancing opportunities for local economic development. The proposed use by Schilling Rentals complies with the Airport Land Use Plan . The Planning and Zoning Comm ission recommended approval of the lease renewals during their April 10, 2019 meeting. The Airport Commission was scheduled to review the lease at their April 11 , 2019 meeting , but did not have a quorum . Mary Bondurant, A irport Manager, reviewed the lease application and found them to be compliant with the Airport Land Use Plan, Airport Layout Plan , Federal Aviation Administration regulations, Airport Master Plan, Airport Improvement Program grant assurances , and Airport operations . Resolution No. 2019-26 would grant the approval of the Kenai City Council for the City Manager to enter into a renewal of lease of land within the Airport Reserve between the City of Kenai and Schilling Rentals for Lot 9A, FBO Subdivision No . 9 . Thank you for your cons ideration . C i ty of Kenai K enai Municipa l Airport Land Lease Application Name of Applicant: Schilling Rentals , LLC ' RECEIVED Mailing Address: 420 North Willow Street City: Kenai State: AK Zip Code: 99611 Phone Number(s): Home Phone: ( ) Work/ Message Phone: ( 907) 283 7556 E-mail: (Optional) duane@uptownmotel.com Name to Appear on Lease: Same Mailing Address: City: State: Zip Code: Phone Number(s): Home Phone: ( Work/ Message Phone: ( E-mail: (Opti onal) Type of Applicant: D Individual (at least 18 years of age) D Partnership [{]Limited Liability Company (LLC) D Government D Corporation Oother _____ _ -~-, ---• • • -, -• ~-,. --..... '~ , __ -k • ... --·, -... ,--~ • ........ '! .... ~ Description of Property and Term Req,ue~ted , · .. , . . .• 1; ,,. •-~ • -r • • --• • ,•....._ '·~·a ...-'• ._.,_ • • ~.: .. •._ .. ,. ·'-_.--.i......l-il, Legal Description of Property: FBO Sub No 9 Lot 9A Does the Property Require Subdivision? (if Yes, answer next two questions) DYES Are you prepared to be responsible for all costs associated with subdivision? Do you believe the proposed subdivision would serve other 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 or physical description): General Aviation Apron Sub 3 Lot 1A Blk 4; GAA Sub 1 amended Lot 2 Blk 2; GAA Sub 3 Lot 3 Blk 2; FBO Sub 9 Lot 11A; Is this application for renewal or term extension of an existing lease? ({]YES ONO If Yes , please provide a description of the property leased : Property used for aircraft parking, loading, and support facilities for the hangar and office space on the adjacent Lot 11A June 1st, 2019 Proposed Use (check one): l./I Aeronautical 0Non-Aeronautical Do you plan to construct new or additional improvements? DYES [{]No Will the proposed improvement change or alter the use under an existing lease? DYES ONO If yes, what is the new proposed use? What is the type (e.g . building , land) and nature (e.g . maintenance, new construction) of the proposed improveme nt? ~ ~ p te--pf .·~~ What is Jhe estima.ted amount of investment in the construction of new permanent improvements on the premises? $18~ i~ land }rpproveme nt~ompleated Summer 2018 ':f ~')_?f; if ·15 ( ~ List of proposed use and business activities: Aircraft parkink/staging & assiciated employee vehicle parking Method to determine value of improvements/term for a lease renewal or expiring lease: D Professional estimate of the remaining useful life of the principle improvement on the property 0Market value appraisal of the principle improvement on the property !}(!Purchase price of improvements Submitting an application for a lease does not give the applicant a right to lease or use the land requested in the application. The application shall expire twelve (12) months after the date the appltcation 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 City has no obligation to amend, renew or extend 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 : 8/13/2018 Print Name: Michael Schilling Title : Member Lot9A FBO Subdivision No. 9 (Kenai Peninsula Borough Parcel Number 04336047) 433 North Wiiiow Street l~rn"ly•f. ~AWkA "V" N W+E s 130 ' --------~ 1 inch equals 104 feet The information depicted here on is for graphic representation only of the best available sources. The City of Kenai assumes no responsibility for errors on this map. Date: 41112019