HomeMy WebLinkAbout2019-07-24 Planning & Zoning Packet Kenai Planning & Zoning Commission - Regular Meeting Page 1 of 2
July 24, 2019
Kenai Planning & Zoning Commission - Regular Meeting
July 24, 2019 – 7:00 PM
Kenai City Council Chambers
210 Fidalgo Avenue, Kenai, Alaska
https://www.kenai.city
AGENDA
A. CALL TO ORDER
1. Pledge of Allegiance
2. Roll Call
3. Agenda Approval
4. Consent Agenda
5. *Excused Absences
*All items listed with an asterisk (*) are considered to be routine and non-controversial
by the Commission and will be approved by one motion. There will be no separate
discussion of these items unless a Commission Member so requests, in which case the
item will be removed from the Consent Agenda and considered in its normal sequence
on the agenda as part of the General Orders.
B. APPROVAL OF MINUTES
1. *June 26, 2019 ............................................................................................. Pg. 3
C. SCHEDULED PUBLIC COMMENT
Public comment limited to ten (10) minutes per speaker)
1. Presentation on Land Sale and Leasing Policies and Procedures by Assistant to
City Manager, Christine Cunningham. .......................................................... Pg. 9
D. UNSCHEDULED PUBLIC COMMENT
(Public comment limited to three (3) minutes per speaker;
thirty (30) minutes aggregated)
E. CONSIDERATION OF PLATS
1. Resolution PZ2019-24 – Original Preliminary Plat of Shoreline Heights Thiele
Replat, submitted by Edge Survey and Design LLC, 43335 K-Beach Rd., Ste.16b,
Soldotna, AK 99669, on behalf of the Kim Thiele, 36901 Mallard Road, Kenai, AK
99611. .......................................................................................................... Pg. 85
F. PUBLIC HEARINGS
Kenai Planning & Zoning Commission - Regular Meeting Page 2 of 2
July 24, 2019
1. Resolution PZ2019-25 – Application for a Conditional Use Permit to operate a
Guide Business, located at 1325 Angler Drive, Kenai, Alaska 99611, and further
described as Lot 18, Block 1, Anglers Acres Part Two. The application was
submitted by Jeff Bressler, P.O. Box 271, Kasilof, AK 99610. .................. Pg. 95
G. UNFINISHED BUSINESS
H. NEW BUSINESS
1. Resolution PZ2019-26 – Application for Transfer of Conditional Use Permit PZ75-
54 for Operation of a Gravel Pit for Extraction of Natural Resources, from the
Estate of Mavis Cone, Transferor, to Colaska, Inc. dba QAP, Transferee, located
at 2817, 2881, 3073 Beaver Loop Road, 1605 Cone Avenue, and 835 Gravel
Street, Kenai, Alaska 99611, and further described as Tracts 1 and 2, Tundra
Rose Subd. according to Plat No. 84-19; a Portion of the NW1/4 NW1/4 Lying
North of Beaver Loop Rd, Section 11, T5N, R11W, Excluding Tundra Rose Subd.;
the West 990 Feet of the South 660 Feet Excluding Therefrom the West 330 Feet,
Section 2, T5N, R11W; and the West 330 Feet of the South 660 Feet, Section 2,
T5N, R11W. .............................................................................................. Pg. 98
I. PENDING ITEMS
J. REPORTS
1. City Council .............................................................................................. Pg. 120
2. Borough Planning ..................................................................................... Pg. 124
3. Administration
K. ADDITIONAL PUBLIC COMMENT
(Public comment limited to three (3) minutes per speaker;
thirty (30) minutes aggregated)
L. INFORMATIONAL ITEMS
1. Planning and Zoning Resolutions – Second Quarter 2019 ........................ Pg. 130
2. Building Permits – Second Quarter 2019 ................................................... Pg. 131
3. Code Enforcement – Second Quarter 2019 ............................................... Pg. 132
M. NEXT MEETING ATTENDANCE NOTIFICATION
1. August 14, 2019
N. COMMISSION COMMENTS AND QUESTIONS
O. ADJOURNMENT
KENAI PLANNING & ZONING COMMISSION
REGULAR MEETING
JUNE 26, 2019 – 7:00 P.M.
KENAI CITY COUNCIL CHAMBERS
210 FIDALGO AVENUE, KENAI, ALASKA
CHAIR JEFF TWAIT, PRESIDING
MINUTES
1. CALL TO ORDER
Commission Chair Twait called the meeting to order at 7:00 p.m.
a. Pledge of Allegiance
Commission Chair Twait led those assembled in the Pledge of the Allegiance.
b. Roll Call
Commissioners present: Chair J. Twait, Vice-Chair D. Fikes, R. Springer, V. Askin, T.
McIntyre, J. Halstead, G. Greenberg
Commissioners absent: G. Greenberg
Staff/Council Liaison present: City Planner E. Appleby, Planning Assistant W. Anderson,
City Clerk J. Heinz, City Manager P. Ostrander, Council
Liaison B. Molloy
A quorum was present.
c. Agenda Approval
MOTION:
Commissioner Askin MOVED to approve the agenda as presented with the inclusion of the
amendment memo for item 6a and Commissioner Halstead SECONDED the motion. There were
no objections; SO ORDERED.
d. Consent Agenda
MOTION:
Commissioner Halstead MOVED to approve the consent agenda and Commissioner Greenberg
SECONDED the motion. There were no objections; SO ORDERED.
*All items listed with an asterisk (*) are considered to be routine and non-controversial by the
Commission and will be approved by one motion. There will be no separate discussion of
these items unless a Commission Member so requests, in which case the item will be
removed from the Consent Agenda and considered in its normal sequence on the agenda
as part of the General Orders.
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June 26, 2019
e. *Excused absences – None.
2. *APPROVAL OF MINUTES
a. June 12, 2019
The minutes were approved by the Consent Agenda.
3. SCHEDULED PUBLIC COMMENT – None.
4. UNSCHEDULED PUBLIC COMMENT – None.
5. CONSIDERATION OF PLATS – None.
6. PUBLIC HEARINGS
a. Resolution PZ2019-23 – Application for Amendment to Conditional Use Permit PZ2018-
16 to remove the hours of operation restriction for the Retail Marijuana Store, submitted
by Clint A. Pickarsky d/b/a Kenai River Cannabis, P.O. Box 1016, Soldotna, AK 99669,
for the property described as Lot 4, Block 1, Bush Lanes Subdivision, located at 14429
Kenai Spur Highway, Kenai, Alaska 99611
MOTION:
Commissioner Springer MOVED to approve Resolution No. PZ2019-23 recommendations and
Commissioner Halstead SECONDED the motion.
City Planner Appleby reviewed the staff report provided in the packet noting the amendment to
the Conditional Use Permit would remove the hours of operation restriction and, based on the
review of criteria, found that the permit could be approved with the following conditions:
• Further development of the property shall conform to all State and local regulations;
• A building permit will be required for the remodeling of the Commercial Marijuana
Establishment as shown on the submitted floor plan;
• Prior to the operation of the Commercial Marijuana Establishment, the property owner
shall submit a copy of an approved Business License issued by the State of Alaska,
Department of Commerce, Community, and Economic Development;
• Prior to the operation of the Commercial Marijuana Establishment, the property owner
shall submit a copy of an approved and fully executed license from the Alaska Alcohol and
Marijuana Control Board. The applicant shall comply with all regulations as stipulated by
the State of Alaska Marijuana Control Board;
• Pursuant to Kenai Municipal Code Section 14.20.330(e), the Commercial Marijuana
Establishment shall not emit an odor that is detectable by the public from outside the
Commercial Marijuana Establishment;
• A sign permit will be required for the construction of any proposed signage;
• Applicant shall file an annual report for the Conditional Use Permit as set forth in Kenai
Municipal Code 14.20.155.
City Manager Ostrander noted the hours of operation requirement placed an inequity between
retail stores in the City and regardless of the change of hours the applicant requested, a better
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Planning and Zoning Commission Meeting Page 3 of 5
June 26, 2019
avenue to restrict hours of operation would be by ordinance.
Chair Twait opened the floor for public testimony.
Marilyn Wheeless noted she was a proponent of legalizing commercial marijuana; however, she
wasn’t in favor of the hours of operation being so broad noting the added traffic, headlights, doors
slamming, and the like brought by the establishment. She also noted the operator had erratic
hours and that she didn’t appreciate the giant green “Gumby” across from her house. Ms.
Wheeless spoke in favor of an ordinance to limit all marijuana retail stores to specific hours
Clint Pickarsky noted he lived in Sterling and ran his business in Kenai, in compliance with Alcohol
and Marijuana Control Office Regulations regarding lights and signage.
There being no one else wishing to be heard, public comment was closed.
MOTION TO AMEND :
Commissioner Springer MOVED to amend by replacing the fourth whereas clause with the
following “removing the condition for specific operating hours would still meet the criteria for the
issuance of the of the conditional use permit; and,” and Commissioner Halstead SECONDED the
motion.
It was suggested that because this particular business was the last one, and hours of operation
had been discussed in previous Conditional Use Permit proceedings, could have been the reason
hours of operation were added to this particular Permit.
VOTE ON THE AMENDMENT:
YEA: Springer, Halstead, Fikes, Askin, Twait, McIntyre, Greenberg
NAY:
MOTION PASSED UNANIMOUSLY.
There was discussion in favor of restricting hours of operation but doing it by ordinance instead
of by Conditional Use.
Hours of operation for other retail stores in the City were provided.
VOTE ON THE MAIN MOTION:
YEA: Springer, Halstead, Fikes, Askin, Twait, McIntyre, Greenberg
NAY:
MOTION PASSED UNANIMOUSLY.
Commission Chair Twait noted the fifteen-day appeal period.
7. UNFINISHED BUSINESS – None.
8. NEW BUSINESS
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June 26, 2019
a. Resolution PZ2019-22 – Application for a Home Occupation Permit to operate a
daycare of no more than eight (8) children under the age of twelve (12), including
children related to the caregiver, submitted by Glenn and Charlotte Yamada, 1806 4th
Avenue, Kenai, Alaska 99611, for property described as lot 1-C, Block 1, Spruce Grove
Subdivision, Murphy’s Replat.
MOTION:
Commissioner Askin MOVED to approve Resolution No. PZ2019-22 with staff recommendations
and Commissioner Halstead SECONDED the motion.
City Planner Appleby reviewed the staff report provided in the packet noting the applicant had
operated the business in a former location and wanted to move her business and, based on the
review of criteria, found that the Home Occupation Permit could be approved with the following
conditions:
• Further development of the property must comply with all federal, State of Alaska, and
local regulations;
• Pursuant to KMC 14.20.230(h)(1), the premises shall be inspected every other year by the
Fire Marshal for the City of Kenai. Failure to comply with the Fire Code (KMC 8.05) shall
be grounds for the suspension or revocation of the facilities’ home occupation permit.
VOTE:
YEA: Springer, Halstead, Fikes, Askin, Twait, McIntyre, Greenberg
NAY:
MOTION PASSED UNANIMOUSLY.
9. PENDING ITEMS – None.
10. REPORTS
a. City Council – Council Member Molloy reviewed the action agenda from the June 19
City Council Meeting and provided an overview of the July 3 draft agenda.
b. Borough Planning – Vice-Chair Fikes reported the Commission met on June 24 and
provided an update on the actions at that meeting.
c. Administration – City Planner Appleby reported on the following:
• Upcoming meetings;
• An upcoming presentation on the land code changes;
• Upcoming Dipnet Operations;
• Environmental Impact Statement for the Alaska LNG project had been delayed;
• Fiscal Year 2020 began July 1.
11. ADDITIONAL PUBLIC COMMENT – None.
12. INFORMATIONAL ITEMS – None.
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June 26, 2019
13. NEXT MEETING ATTENDANCE NOTIFICATION – July 24, 2019
It was noted the July 10 meeting would be cancelled for lack of a quorum.
14. COMMISSION COMMENTS & QUESTIONS
Commissioner Halstead requested a resolution recommending an ordinance setting hours of
operations for the retail marijuana stores be brought forth at a future meeting; also expressed
appreciation for the various reports.
Commissioner Greenberg agreed with the request for a resolution recommending an ordinance
to set hours of operations and that the businesses be contacted when developing hours of
operation.
Commissioner Springer also agreed with the request for a resolution recommending an ordinance
to set hours of operations, clarified alcohol and marijuana licensees all had the same hours of
operation requirements in state regulations, and suggested consulting with the attorney on
singling out the marijuana industry on hours of operations.
Commissioner Fikes also agreed with the request for a resolution recommending an ordinance to
set hours of operations and suggested businesses across the industry be consulted to make a
fair playing field and to get input from law enforcement as well.
15. ADJOURNMENT
There being no further business before the Commission, the meeting was adjourned at 7:56 p.m.
Minutes prepared and submitted by:
____________________________
Jamie Heinz, CMC
City Clerk
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Kenai Planning & Zoning Commission - Regular Meeting Page 8 of 132
July 24, 2019
Page 8
LAND SALE
AND LEASING
POLICIES AND
PRACTICES
Land Sale and Leasing
Policies and Practices
Working Group:
City Manager Paul Ostrander
Assistant to City Manager Christine Cunningham
Finance Director Terry Eubank
Airport Manager Mary Bondurant
City Planner Elizabeth Appleby
City Attorney Scott Bloom July 10, 2019
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TABLE OF CONTENTS
Introduction …………………………………………………….……….. p. 2
Background …………………………………………………………..…. p. 3
Where We Are …………………………………………………….……. p. 5
Objectives ………………………………………………………….……. p. 6
Recommendations ……………………………………………….……. p. 7
Action Plan …………………………………………………….….……. p. 17
Timeline …………………………………………………………….…... p. 17
Appendix …………………………………………………….…..……... p. 18
Draft Land Management Plan
Draft KMC Revisions Title 22
Cover Photo Credit: Eagle Eye Gallery
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INTRODUCTION
One of the City’s greatest assets is its land inventory. Utilizing City lands to spur economic growth
and improve the quality of life for Kenai residents is key to the long-term viability of the City. Major
initiatives for the upcoming year include creating an environment to attract businesses and
industries that are necessary to maintain and grow the local economy and continuing work
towards a Land Management Plan, which includes an inventory of all City-owned lands.
A working group of City staff involved in land management met over the past two years to evaluate
and develop recommendations related to City-owned lands. In 2018, the group focused on
proposals to simplify and streamline the City’s lease program on the Airport to encourage growth,
development, and a thriving business community through reasonable and responsible land
policies and practices. The initial recommendations included a City-wide Land Management Plan,
Kenai Municipal Code revisions for Airport Reserve properties, updates to forms and procedures,
and affirmative marketing of Airport Lands.
The following recommendations expand on the previous Airport Reserve recommendations to
include all City-owned properties both on and off the Airport as part of the City’s Land
Management Plan.
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BACKGROUND
In 1963, the FAA transferred ownership of nearly 2,000 acres
of land to the City of Kenai. Most of the property is located in
the core business area of Kenai surrounding the Kenai Airport,
and the sale of some of these lands formed the basis for
economic development in Kenai. The 1963 deed requires the
land be managed for airport activities and support of the Airport
and requires the written consent of the FAA to sell or lease
land for non-airport activities. Subsequent deeds of release
have been obtained, allowing some properties to be leased or
sold.
The City has also received title to lands over the years from
the State of Alaska and Bureau of Land Management as well
as through Kenai Peninsula Borough foreclosures or private
donations. Many of the conveyance documents contain
restrictions, reversionary clauses, or are otherwise restricted
by ordinances setting the land aside for a public purpose.
However, the land deeded to the City by the FAA has been the
focus of most of the City’s lands policy decisions.
In 1975, the City first defined rules and regulations governing
the administration of City-owned lands. In 1978, a provision for
a 50% lease cap was enacted to provide reasonable
assurance of stability in future lease rates to investors, and
developers, which would encourage leasing.
In 1981, the City began to actively dispose of lands and
enacted ordinances to encourage and streamline disposal.
When applicable, lessees were encouraged to purchase their
leased land. With the City entering into a program of land
sales, use of the lease rate cap, which required increasing
transfers from the General Fund to the Airport Fund, had
outlived its usefulness and was restricted to property used for
aeronautical purposes.
In 1983, the City made many changes to land management
policies. The City hired a Land Manager, and several lands-
related ordinances were passed to streamline land disposal.
However, the price of the oil fell dramatically in 1986 and
Alaska went into recession. This was a year of decline in land
values, land sales, and leases. As property values continued
to drop in 1987, there was a dramatic increase in lease
rescissions. By 1990, it appeared that the economic recession
had reached the bottom and was taking a gradual upturn.
In 2006, the Airport land sale and leasing code sections were
repealed and reenacted as a result of recommendations in the
Supplemental Airport Master Plan. The new code established
the Airport Reserve, prohibited land sales within the Reserve,
amended guidelines for setting the length of the lease terms
with higher investment requirements and a maximum 35-year
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term. The revised policy added additional requirements for lease applicants, eliminated the ability
of new lessees to have the right to purchase once a development plan had been completed,
increased the capitalization rate used to calculate rental rates from 6% to 8%, and established a
new method of setting and adjusting land rents based on an airport-wide zone-based appraisal.
The City deviated from the new code provisions through non-code Ordinances to enter into each
new lease between 2007 and 2018 as well as to facilitate negotiated sales of land. In 2015,
Administration conducted an economic analysis of income (revenue) to the Airport, which
compared leasing versus sale of two unsolicited offers to purchase properties assuming a 50-
year period. It was determined that the Airport would lose revenue in a sale, and the City declined
the offers.
In 2016, the City updated zoning within the Airport Reserve and relocated the Airport Reserve
boundary. That same year, the City Council approved a policy for the sale of ten specific Airport
leased lands with substantial constructed leasehold improvements. The policy is in effect for five
years (expires in July of 2021) and, recognizing the value of a lease with a guaranteed revenue
stream, approves a sale at 125% of fair market raw land appraisal with the lessee paying for
appraisal costs.
Although the City’s land leasing and sale program has been restructured over the years, the
approach has been to manage land as situations arise and without an active management plan
or strategy. In 2018, City Council approved recommended revisions to the leasing program in the
Airport Reserve, amended the sale policy for ten specific Airport Fund properties to provide
alternatives to encourage investment, and approved a City-wide approach to land management
through the development of the City’s first Land Management Plan.
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WHERE WE ARE
The City is unique in its ownership of a large and diverse amount of public land, owning a total of
356 subdivided parcels of which 233 are designated General Fund, and 126 are designated
Airport Fund. Nineteen (19%) of City-owned parcels are currently under lease, generating an
annual revenue of approximately $653,356.
Inside the Airport Reserve, 27 parcels are currently under lease and approximately 20 subdivided
parcels are available for lease. Outside the Airport Reserve, approximately 14 Airport Fund
parcels are currently under lease, of which ten specific properties have been approved for sale,
and approximately 30 parcels remain available for lease. The General Fund has 22 parcels
currently under lease and an undetermined number of lands available for lease or sale.
Approximately 30% of City leases are in the latter half of the lease (not including Shorefishery
leases renewed in 2016), and another approximately 12% have lease terms with over 80 years
remaining and no incentive to maintain or improve the permanent improvements on the premises.
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OBJECTIVES
Utilizing the 2018 revisions to the leasing program for the Airport Reserve as a starting point, the
working group took a City-wide approach to land management that looked at both General Fund
and Airport Fund properties outside the Airport Reserve. The goal of the working group was to
follow similar changes made for the Airport Reserve properties with regard to lease and expand
the objectives to simplify and streamline the City’s land management program to provide a uniform
approach for both lease and sale.
The working group defined the following objectives to help achieve this goal:
• City-wide Approach to Land Management
• Business-friendly Rules
• Policy Predictability
• Uniform Application of Policies
• Prevent Land Speculation
• Promote Economic Development
The following recommendations apply to all City-owned lands with the exception of on-Airport
property and tidelands.
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RECOMMENDATIONS
1. LAND MANAGEMENT PLAN
A City-wide Land Management Plan is an active approach that requires an inventory of the City’s
land holdings. An analysis is needed for each parcel in terms of any conveyance, legislative
restrictions or need for public use as well as the potential economic and other benefits to the City.
The Land Management Plan provides a comprehensive evaluation and characterization of each
City-owned parcel to guide the decision-making process to include the following elements:
• Property Description (e.g. physical characteristics, zoning, land use)
• Facilities (e.g. parks, trails, structures, rights-of-way, utilities)
• Status (e.g. public use, under active lease, available for lease or sale)
• Recommended highest and best use
In addition to development of the
plan itself, Administration would
develop procedures and
standards for management of
City lands with a focus on
business-friendly practices and
customer service. The
advantages of an active
approach are improved policy
predictability and uniform
application of policies as well as
the opportunity for increased
return from public land assets for
the greatest benefit to the
residents of Kenai. This active
approach gives the City the ability
to determine which properties are
best suited for a public purpose,
lease, sale, devotion, or which
properties may be eligible for
grants or economic incentives for
development. It also provides a mechanism to evaluate properties on an ongoing basis.
The City began work on the Land Management Plan by hiring a Temporary Land Technician who
began researching City parcels and entering information into a new City Lands Database in 2018.
To date, the baseline information has been entered into the system for approximately 85% of City-
owned lands. When this task has been completed, City staff will review the information and finalize
the first draft of the City’s Land Management Plan for City Council consideration.
Once approved, the information in the database can be used to develop land use strategies to
implement a forward-looking approach to community growth and development. The City will have
the information necessary to make informed management decisions about City-owned lands. The
public will be able to view parcel-specific data included in the Plan utilizing the City’s interactive
online mapping.
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The Plan will require an ongoing review of current holdings and summary of changes, proposed
changes, market research, upcoming events (land sales, lease expirations or leases requiring
action) as well as further development of procedure manuals, forms, and databases to ensure
efficient and consistent work.
2. KENAI MUNICIPAL CODE (KMC) REVISIONS
The City’s policies and procedures for land leasing and sale for General Fund and Airport Fund
property outside the Airport Reserve are in the City’s land code (KMC 22 and 21.15). The working
group reviewed the current code and legislative history, the City’s available land data, and the
2018 revisions for on-Airport property, which came about after consultation with real estate
appraisers, bankers, surveyors, aviation consultants, and other land professionals. The group
also reviewed existing leases to consider the needs of existing leaseholders and the business
community to manage land for the greatest benefit of the residents of Kenai.
The following recommended revisions simplify and streamline the City’s land sale and lease
program to encourage growth, development, and a thriving business, residential, recreational,
and cultural community.
Applicant-Friendly Rules
“Applicant friendly” rules
balance the interests of the
City with those of the
applicant, do not place
excessive burdens on the
applicant, provide a
predictable process for
application approval,
attract new lessees to
vacant land and retain
existing leaseholders.
The City currently requires
a lease applicant to submit
a deposit up-front with a
lease application to ensure
performance, which is not
required by other similarly
situated municipalities and
increases an applicant’s
upfront costs. Other procedures place unnecessary burdens on the applicant by requesting
nonessential information at the application stage and do not provide a predictable process for
approval.
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The above recommendations provide an online resource for lease information and forms, remove
the requirement for up front application deposits, remove the requirement for additional
documents to be submitted with applications, provide for public notice and a predictable
processing procedure, and maintain Kenai’s application fees as some of the lowest in the State.
The recommendations also allow for lease applicants to indicate if they are interested in an option
to purchase the property once development is completed. This provides a new avenue for
competitive land sales that ensure development on the property.
Uniform Conditions for Determining Initial Length Lease Term
The City currently sets
the initial term of a
lease based on the
durability of the
proposed use, the
amount of investment
in improvement
proposed and made,
and the nature of the
improvement proposed
with respect to
durability and time
required to amortize
the proposed investment. There is not a methodology in place similar to the term table contained
in the code section for on-Airport properties that provides an applicant a guideline for how the City
sets the lease term, which reduces predictability for applicants.
Amending the term table to set the five-year term investment/value at $7,500, allowing for small
investment increments, and allows a lease applicant to compare their planned investment to the
term table to determine the term length they are likely to receive. This method also generally
satisfies the requirements of financial institutions that provide funding for lessee improvements
and provides greater predictability for business owners to locate and invest in Kenai’s economy.
(See Appendix: Draft KMC 22 revisions for recommended term table)
Predetermined Conditions for Lease Extension and Renewal
As more of the City’s leases reach the later part of the lease term, current conditions for lease
extension and renewal discourage the lessee to invest in maintenance or further development as
well as potentially restricting the lessee’s ability to sell their leasehold interest. For instance, a
lessee with five years remaining in the lease and no right in the lease to renewal will have difficulty
finding a buyer or new investor without being granted an extension or renewal of the lease.
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The City currently does not
have a methodology for
how to determine the term
for an extension or renewal
for lands outside the Airport
Reserve. Because renewal
and extension are not
defined, the terms are used
interchangeably with
extensions of older leases
being granted rather than
updated to a new standard
lease form. A renewal
requires an appraisal of the
land at the expense of the
lessee, which can be costly
and does not address the
improvements or the
condition of the
improvements on the
property. Additionally, the process does not provide any assurance to the lessee that a renewal
will be granted to justify the cost of an appraisal.
The above recommendations as well as setting the lease term for renewal and extension using
the same term table as is used in setting the term for initial leases gives a lessee a predictable
method to renew or extend the lease. This provides for a lower cost and risk to the lessee and
greater advantage to the City, as the renewal or extension term length is more accurately based
on the condition of the principal improvement or investment and provides motivation for the lessee
to maintain buildings in good condition.
Protect Lessees from Excessive Rent Increases
The City’s existing policy
for setting lease rates
consists of an initial
appraisal paid for by the
lessee and renegotiation
appraisals every five years
paid for by the City and
subsequent rates based
on 8% of the fair market
value as determined by the
appraisals.
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A change from the current five-year appraisal cycle to a 10-year “Market Analysis” (defined in the
draft code revisions to KMC 22 contained in the Appendix) with an annual CPI adjustment
provides less expense for the City in appraisal costs and greater predictability in rent for lessees.
Annual rent would be computed by multiplying the CPI adjusted fair market value of the land by
the lease rate percentage for each parcel (currently 8%).
For the City to realize the full benefit of an amendment to the policy for setting lease rates, existing
lessees would need to convert to the new method. Allowing current lessees to convert their leases
to the new form would allow lessees to take advantage of these protections from unexpected rent
increases as well as any other conditions available in the new lease form, such as the
predetermined conditions for lease extension and renewal and favorable provisions for the
disposition of improvements.
Provide Favorable Provisions for the Disposition of Improvements
Under the new land
leasing program on the
Airport, at the end of a
lease when the lessee
does not continue in
occupancy under a new
lease or extension, the
lessee has the option of
removing improvements
and restoring the
premises or selling
improvements to a
succeeding lessee of the
premises.
Most of the City’s current leases require the lessee to remove improvements or they will revert to
the City. With the City taking title to the improvements, it limits the lessee’s incentive for taking
good care of the buildings on the property as the end of the lease term approaches. The City runs
the risk of “inheriting” a building in poor condition and with the expense and/or liability of repairing
and maintaining the inherited building until a new lessee can be found. By contrast, the methods
for disposition of improvements approved for on-Airport leases provide lessees with an incentive
to maintain their facilities in good condition and do not leave the City with the burden of an
increasing inventory of older buildings needing maintenance and repair.
The City’s current practice for disposition of improvements for Airport Reserve properties provides
attractive options to lessees related to the improvements they constructed on the property. These
options incentivize better maintenance and, along with other development incentives, encourage
new investment, as well as increase predictability and uniformity for potential lessees.
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Offer Development Incentives
One way the City has encouraged investment and leasing of undeveloped properties on the
Airport is to offer development incentives. These incentives apply a credit toward rent for a
maximum of five years. The credit only includes the value of site preparation work on the leased
premises which provide economic benefit to the City and potentially increase the value of the
property for future sale.
An estimate of the value of the work, including a scope of work, prepared by a professional
engineer must be provided to the City and accepted prior to work being performed and the credit
would not be applied until the approved scope of work was completed.
Provide a Methodology for Sale of Leasehold Properties
The City’s ordinances allow for sale of some leasehold properties at Fair Market Value if
development had been completed as required by the lease or if substantial development has been
completed as determined by the City Manager. However, beginning in 2009, the City has declined
requests by lessees who wish to purchase except for those included in the temporary policy for
ten specific “off Airport” leased lands with substantial constructed leasehold improvements.
The policy is in effect for a period of five years (expires in July of 2021) and approves a sale at
125% of the Fair Market Value of the land or, as an alternative to a sale at 125%, the lessee must
either meet new investment requirements or demonstrate the existing lessee-constructed
improvements exceed the net present value of leasing the land by quantifying the economic value
of the investment to the City. The policy does not address the sale of other or future properties.
In order to allow for a competitive sale of leasehold property, the option to purchase would need
to be part of the initial lease application approval process, which includes a public posting
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requirement and public hearing. The option to purchase could be exercised by the lessee at such
time as the development requirements in the lease were met. This option would give the lessee
the ability to enter into a lease with lower up-front costs as well operate a business at a location
before committing to purchase the property. Providing a methodology for sale of leasehold
properties will improve the City’s ability to attract specific businesses and industries that are
necessary to maintain and grow the local economy.
For example, a new business could apply for a lease of City property, which has been pre-
determined as available for lease or sale, with an option to purchase. The applicant would be
responsible for the application fee and a deposit to cover the cost of an appraisal (the cost of the
appraisal would be credited or refunded once minimum development in the form of permanent
improvements on the property was completed). The lessee may also request a credit toward rent
for a maximum of five years for the value of site preparation work on the leased premises, which
potentially increases the value of the property for future sale. After two years – or five years, if the
lessee prefers to exhaust the development credits, the lessee would be able to request to
purchase the land at Fair Market Value based on a new appraisal.
This process would not be available for existing leasehold properties as it would not meet the
City’s requirement for a competitive sale process.
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Provide a Methodology for Sale of Vacant Properties
The City’s ordinances currently allow for sale of land outside the Airport Reserve not under lease
at Fair Market Value by outcry auction, competitive sealed bids or negotiated sale to encourage
a new commercial or industrial enterprise beneficial to the City. There is not a methodology in
place to determine in advance which parcels of land are best suited for sale or guidance on what
conditions justify negotiated transactions which may be in the City’s best interests.
As part of an overall Land Management Plan, City staff would review the City’s land inventory and
consult with City departments to determine which properties are no longer needed for a public
purpose and those which would provide a greater public benefit if offered for lease or sale.
Property would become available for sale if it meets a set criteria, including: the property is not
currently used by a City department or does not support a City function or foreseeable use by the
City; the City is not obligated to use the property for the purpose in which it was conveyed or
circumstances have changed such that the purpose is no longer needed; the property is a non-
performing or under-performing asset and greater value can be generated by its sale; or,
significant economic development opportunities can be generated by selling the property.
Based on an analysis of the individual parcel as provided in the Land Management Plan, it may
be in the best interests of the City to sell parcels after significant development has been
completed. Based on the City’s policy not to allow for speculation on City-owned lands, a lease
or sale would require development and a sale would be at not less than Fair Market Value with a
required minimum investment in permanent improvements.
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Update Special Use Permit Process
The City does not currently have an
application, application fee, or set
fee schedule for Special Use
Permits, which allow for temporary
use of City property for up to five
years without an appraisal or
competitive process. Some
permittees have utilized Special
Use Permits instead of the lease
process for cumulative terms that
exceed many leases. A change to a
one-year maximum term for Special
Use Permits and a standard
application, application fee, and fee
schedule provides a uniform
approach that does not allow a
Special Use Permit to be used
inappropriately in place of a lease.
3. UPDATE FORMS AND PROCEDURES
The following recommendations are for City fees, forms, and procedures that create a uniform
approach and process for City lands management.
Update Lease Forms and Procedures
The above recommendations would require material changes in the standard lease forms
currently used for City General Fund and Airport Fund lands located outside the Airport Reserve.
These amendments might include definitions, rent adjustments, construction of improvements,
and other changes consistent with any Code revisions. Any changes would require a Resolution
approving the new standard lease form.
Additionally, updated application forms would be required and be made available both online and
at City Hall.
Update City Procedures and Processes
Updates to the City’s internal procedures and processes would also be necessary and would
improve the processing of lease applications and sale procedures for a business-friendly
approach. This would include creating FAQ’s, examples of timelines, and flow charts available to
potential lessees and parties interested in investing in development on City-owned lands.
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Update Administrative Fees for Land Management
The City requires a $100 non-
refundable fee to be submitted with
lease applications City-wide, however
the only other administrative fees for
lands are on the Airport, updated in
2018. Land-related administrative
fees are a fairly common practice and
prevent filing of frivolous applications
as well as recover a portion of the
administrative processing costs.
Application and forms fees in other
Alaska local governments range in
amount and type with some areas
charging between $0 - $500 for a
lease application and additional fees
when entering into lease or to cover
the cost of recording.
4. AFFIRMATIVE MARKETING PLAN
As a result of the 2018 recommendations, the City created its first Kenai Municipal Airport
Available Lease Lands brochure available in print and online. An affirmative marketing plan for
City-wide properties available for lease will ensure the continued success of the City’s land leasing
and sale programs.
The plan will promote the City of Kenai as business-friendly by providing a “one stop shop” of
information on the City’s website as well as in information brochures. A party interested in the
possibility of leasing or purchasing City land to locate a business in Kenai can go to the website
or review the brochure to find all essential leasing or sale information presented in simple terms.
The information includes the advantages of living and doing business in Kenai, property available
for lease or sale, the applicable application form, a sample lease, current rental rates (if available),
the term investment table, the disposition of improvements, FAQs, a summary of the application
processing steps and typical timetable.
The lease information package or brochure can be distributed as part of an active marketing
strategy in which the City provides the information to targeted groups at trade shows, networking
events, or one-on-one visits with business owners. Information on properties available for sale
would be marketed to receive the widest possible exposure to prospective lessees and buyers.
This would be accomplished through direct marketing techniques, such as requests for proposals
(RFPs), advertising, posting the property on the multiple listing service (MLS) or any other
appropriate method.
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TIMELINE
The purpose of presenting the recommendations of the working group is to provide a starting
place for discussions regarding recommended changes to the City’s land sale and leasing policies
and procedures. The timeline for finalizing and implementing any approved changes will depend
on City Council action. The next City Council meeting is scheduled for June 19, 2019, and the
land sale and leasing policy and procedures recommendations will be included as a Discussion
Item.
The proposed changes to the land leasing program for the Kenai Municipal Airport followed a
timeline similar to the following timeline:
City Council Work Session: June 11, 2019
City Council Discussion Item: June 19, 2019
Airport Commission: July 11, 2019
Planning and Zoning Commission: July 24, 2019
Ordinance Introduction: August 7, 2019
Airport Commission: August 8, 2019
Harbor Commission: August 12, 2019
Planning and Zoning Commission: August 14, 2019
Public Hearing on Ordinance: August 24, 2019
Resolution Amending Fee Schedule: August 24, 2019
Resolution Adopting Lease Form: August 24, 2019
Implementation and Forms Update: Late August – Early September
Depending on approval of any recommendations or revisions, implementation of
recommendations would take place in phases, with completion of code revisions and forms
occurring over subsequent months. Continued work on the City’s first Land Management Plan will
occur over the next year.
Comments may be submitted to the City Manager or via email to the Assistant to the City Manager
at ccunningham@kenai.city
APPENDIX
Draft Land Management Plan
Draft KMC 22 Revisions
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Title 22
[GENERAL FUND]CITY-OWNED LANDS
Chapter 22.05
DISPOSITION OF CITY [GENERAL FUND]LANDS
22.05.050 Definitions.
When used in this chapter, the following terms shall have the meaning given below:
“Amendment” means a formal change to a lease of lands other than a lease extension or renewal.
“Annual rent” means an amount paid to the City annually according to the terms of the lease and
Kenai Municipal Code.
“Assignment” means the transfer of all interest in a lease from one person or entity to another.
“City” means the City of Kenai, its elected officials, officers, employees or agents.
“Consumer Price Index (CPI)” means the annual CPI for all urban consumers (CPI-U) for
Anchorage, Alaska.
“Existing lease” means a lease with at least one (1) year of term remaining.
“Expiring lease” means a lease with less than one (1) year of term remaining.
“Fair market value” means the most probable price which a property should bring in a
competitive and open market as determined by a qualified independent appraiser, or the value as
determined by the latest appraisal adjusted by the change in Consumer Price Index from the date
of the latest appraisal.
“Lease extension” means extending the term of an existing lease.
“Lease rate percent” means a percentage that when applied to the fair market value of land
establishes a rate of rent commensurate with rental rates prevalent in the local area as determined
by a qualified real estate appraiser.
“Lease renewal” means a new lease of property currently under an existing or expiring lease to
an existing lessee or a purchaser.
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“Market analysis” means an analysis of data collected from other land leases to determine
whether a market adjustment in either fair market value or lease rate percentage reflects the
market.
“Permanent improvement” means a fixed addition or change to land that is not temporary or
portable, including a building, building addition, retaining wall, storage tank, earthwork, fill
material, gravel, and pavement, and remediation of contamination for which the applicant is not
responsible and excluding items of ordinary maintenance, such as glass replacement, painting,
roof repairs, door repairs, plumbing repairs, floor covering replacement, or pavement patching.
“Professional estimate of the remaining useful life of the principal improvement” means an
estimate of the number of remaining years that the principal improvement will be able to
function in accordance with its intended purpose prepared by a qualified real estate appraiser,
engineer, or architect licensed in Alaska.
“Qualified independent appraiser” means a general real estate appraiser certified by the State of
Alaska under AS 08.87.
“Site development materials” means materials used for preparing a lease site for building
construction or to provide a firm surface on which to operate a vehicle or aircraft, including
geotextile, fill, gravel, paving, utilities and pavement reinforcement materials.
“Site preparation work” means work on the leased premises to include clearing and grubbing,
unclassified excavation, classified fill and back fill, a crushed aggregate base course and utility
extensions.
22.05.010 [POWER]Authority and Intent [TO DISPOSE OF REAL PROPERTY].
(a) The provisions of this chapter apply to [GENERAL FUND] City-owned real property other
than lands within the Airport Reserve as described in KMC 21.10 and the leasing of tidelands for
shore fisheries.
(b) The City may sell, convey, exchange, transfer, donate, dedicate, direct, [OR ]assign to use,
or otherwise dispose of City-owned real property, including property acquired, held for, or
previously devoted to a public use, only in accordance with this chapter, and, with respect to
properties acquired through foreclosure for taxes, in compliance with those terms and provisions
of AS 29 which apply to home-rule municipalities [ARE REQUIRED TO COMPLY WITH].
Disposal or sale of lands shall be made only when, in the judgment of the City Council, such
lands are not or are no longer required for a public purpose.
(c) It is the intent of this chapter to provide land policies and practices that encourage
responsible growth and development to support a thriving business, residential, recreational and
cultural community.
(d) It is not the intent of this chapter to allow for speculation on City-owned lands. All leases,
sales, and other disposals of City-owned land must meet the intent of this chapter.
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(e) The provisions of this chapter shall not alter or amend the terms or rights granted under leases
existing prior to the effective date of the ordinances codified in this chapter.
22.05.015 Lands Available for Lease, Sale or [D]Disposal.
(a) The City may lease, sell or dispose of real property not restricted from lease or sale which
the City Council has determined is not required for a public purpose [BY WARRANTY OR
QUIT-CLAIM DEED, EASEMENT, LEASE, GRANT, PERMIT, LICENSE, DEED OF
TRUST, MORTGAGE CONTRACT OF SALE OF REAL PROPERTY, PLAT DEDICATION,
TAX DEED, OR] by any [OTHER ]lawful method or mode of conveyance or grant. Any
instrument requiring execution by the City shall be signed by the City Manager and attested by
the City Clerk. The form of any instrument shall be approved by the City Attorney.
22.05.020 Qualifications of Lease [A]Applicants or [B]Bidders.
An applicant or bidder for a lease is qualified if the applicant or bidder:
(a) Is an individual at least eighteen (18) years of age [OR OVER]; or
(b) Is a [GROUP, ASSOCIATION, OR CORPORATION WHICH IS] legal entity which is
authorized to conduct business under the laws of Alaska; or
(c) Is acting as an agent for another meeting the requirements of subsection (a) or (b) of this
section and has qualified by filing with the City [MANAGER] a proper power of attorney or a
letter of authorization creating such agency. [THE AGENT SHALL REPRESENT ONLY ONE
(1) PRINCIPAL TO THE EXCLUSION OF HIMSELF OR HERSELF. THE TERM “AGENT”
INCLUDES REAL ESTATE BROKERS AND AGENTS.]
22.05.025 Initial Lease Application[S].
(a) All applications for lease of lands [SHALL] must be [FILED WITH] submitted to the City
[MANAGER] on an application form[S] provided by the City[AVAILABLE AT CITY HALL].
Applications [SHALL] will be dated on receipt and must include payment of [FILING] the
nonrefundable application fee [AND DEPOSIT. NO APPLICATION WILL BE ACCEPTED
BY THE CITY MANAGER UNLESS IT APPEARS TO THE CITY MANAGER TO BE
COMPLETE. FILING FEES ARE NOT REFUNDABLE] as set forth in the City’s schedule of
fees approved by the City Council.
(b) [WITH EVERY]The application[, THE APPLICANT SHALL SUBMIT A
DEVELOPMENT PLAN, SHOWING AND STATING] form must include the following
information:
(1) The purpose of the proposed lease;
(2) The use, [VALUE AND]nature, type, and estimated cost of improvements to be constructed;
(3) [THE TYPE OF CONSTRUCTION;
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(4)] The dates construction is estimated to commence and be completed. [(ORDINARILY A
MAXIMUM OF TWO (2) YEARS)] Construction must be completed within two (2) years
except in special circumstances, that require a longer period of time and which must be approved
by the City Council; and
([5]4) [WHETHER INTENDED USE COMPLIES WITH THE ZONING ORDINANCE AND
COMPREHENSIVE PLAN OF THE CITY. APPLICATIONS SHALL BECOME A PART OF
THE LEASE]A comprehensive description of the proposed business or activity intended;
(5) Whether the applicant requests a lease with an option to purchase; and
(6) How the proposed lease meets the intent of this chapter.
(c) Applications which propose a subdivision shall require the applicant to be responsible for all
costs associated with the subdivision, including but not limited to any new appraisal, engineering
services, surveying and consulting costs, unless in the sole discretion of the City Council, it is
determined that the subdivision serves other City purposes.
(1) If the Council determines that other City purposes are served by the subdivision, the City
Council may choose in its sole discretion to share in the subdivision costs with the applicant in
an amount the City Council determines is reasonable given the benefit to the City.
(2) If the Council does not make a determination that other City purposes are served by the
subdivision, the applicant must submit a deposit to cover the estimated costs associated with the
subdivision.
(3) If the City enters into a lease with the applicant, any unused balance of the deposit made to
cover costs associated with subdivision will apply to the rent payable under the lease.
(4) If the City’s costs exceed the amount of any deposit made to cover costs associated with
subdivision, the applicant must pay the shortage to the City as a condition of the lease.
(5) If the application is rejected or if the applicant withdraws the application or fails to sign a
lease offered to the applicant, the City will return any unused deposit balance to the applicant.
(d) Applications for lands which have not been appraised within one (1) year of the requested
starting date of the lease require the applicant to be responsible for all costs associated with
appraisal. The cost of the appraisal shall be credited or refunded to the lessee once development
is completed as required by the lease, extension or renewal.
(e) Applications which result in a lease agreement with the City require the lessee to be
responsible for all recording costs and any other fees associated with execution of the lease
including a preliminary commitment for title insurance and fifty percent (50%) of the required
costs associated with a sale of leased land in which the lease contains an option to purchase once
the minimum development requirements have been met.
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(f) Anytime during the processing of a lease application, the City may request, and the applicant
must supply, any clarification or additional information that the City reasonably determines is
necessary for the City to make a final decision on the application.
[22.05.030 FILING FEE AND DEPOSIT.
(A) WHEN SUBMITTING AN APPLICATION FOR LEASE OF LAND, THE APPLICANT
SHALL PAY THE CITY THE FOLLOWING AS SET FORTH IN THE CITY’S SCHEDULE
OF FEES ADOPTED BY THE CITY COUNCIL:
(1) PAY A NON-REFUNDABLE FILING FEE IN THE AMOUNT; AND
(2) A DEPOSIT TO SHOW GOOD FAITH AND SECURE THE CITY IN PAYMENT OF
ANY COSTS, INCLUDING:
(A) AN APPRAISAL COST RECOVERY DEPOSIT; AND
(B) AN ENGINEERING, SURVEYING AND CONSULTING COST RECOVERY DEPOSIT.
(B) IF THE CITY DECIDES TO REJECT THE APPLICANT’S APPLICATION AND NOT
ENTER INTO A LEASE WITH THE APPLICANT THROUGH NO FAULT OF THE
APPLICANT OR FAILURE OF THE APPLICANT TO COMPLY WITH ANY
REQUIREMENT OF THIS CHAPTER, ANY DEPOSIT MADE UNDER
SUBSECTION (A)(2) OF THIS SECTION WILL BE RETURNED TO THE APPLICANT.
(C) IF THE CITY ENTERS INTO A LEASE WITH THE APPLICANT ANY DEPOSIT
MADE BY THE APPLICANT UNDER SUBSECTION (A)(2) OF THIS SECTION WILL BE
APPLIED TO THE CITY’S ENGINEERING, APPRAISAL, AND CONSULTING COSTS
RELATED TO THE PROCESSING OF THE APPLICANT’S APPLICATION AND
ENTERING INTO THE LEASE. THE CITY WILL APPLY ANY UNUSED BALANCE OF A
DEPOSIT TO THE RENT PAYABLE UNDER THE LEASE. IF THE CITY’S COSTS
EXCEED THE AMOUNT OF ANY DEPOSIT, THE APPLICANT SHALL PAY THE
SHORTAGE TO THE CITY AS A CONDITION OF THE LEASE.
(D) IF THE APPLICANT FAILS TO COMPLY WITH ANY REQUIREMENT OF THIS
CHAPTER, CAUSES INORDINATE DELAY, AS DETERMINED BY THE CITY
MANAGER, OR REFUSES TO SIGN A LEASE OFFERED TO THE APPLICANT, THE
CITY MANAGER WILL REJECT THE APPLICANT’S APPLICATION AND APPLY ANY
DEPOSIT MADE BY THE APPLICANT UNDER SUBSECTION (A) OF THIS SECTION TO
THE CITY’S APPRAISAL, ENGINEERING, AND CONSULTING COSTS INCURRED IN
CONNECTION WITH THE APPLICANT’S APPLICATION. IF THE CITY’S COSTS FOR
APPRAISAL, ENGINEERING AND CONSULTING COSTS EXCEED THE DEPOSITS, THE
APPLICANT WILL BE RESPONSIBLE FOR THESE COSTS. THE CITY WILL RETURN
ANY UNUSED DEPOSIT BALANCE TO THE APPLICANT.]
22.05.035 [RIGHTS PRIOR TO LEASING.]No Right of Occupancy – Lease Application
Expiration.
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(a) Submitting [THE FILING OF] an application for a lease [SHALL] does not give the
applicant [NO]a right to lease or [TO THE]use [OF THE]City-owned land[ FOR WHICH THEY
HAVE APPLIED].
(b) The application shall expire upon execution of a lease or rejection of a lease application by
the City Council or within twelve (12) months after the date the application has been [MADE]
submitted [IF A LEASE HAS NOT BEEN ENTERED INTO BETWEEN THE CITY AND
THE APPLICANT BY THAT TIME UNLESS THE CITY COUNCIL FOR GOOD CAUSE
GRANTS AN EXTENSION. NO EXTENSION MAY BE GRANTED FOR A PERIOD
LONGER THAN SIX (6) MONTHS. LEASE RATES ARE SUBJECT TO CHANGE ON THE
BASIS OF AN APPRAISAL DONE EVERY TWELVE (12) MONTHS ON THE PROPERTY
APPLIED FOR].
22.05.040 [PROCESSING PROCEDURE] Lease Application Review.
(a) Applications shall be [FORWARDED]reviewed by City staff for application completeness
and conformance with City ordinances.
(b) Based on the initial review, if the City Manager determines the application is complete, the
application shall be referred to the Planning and Zoning Commission and any other applicable
commissions [UPON RECEIPT]for review and comment, together with the City Manager’s
recommendation for approval or rejection. [THE PLANNING AND ZONING COMMISSION
SHALL NORMALLY CONSIDER APPLICATIONS FOR SPECIFIC LANDS ON A FIRST-
COME, FIRST-SERVED BASIS IF THE COMMISSION FINDS THAT THE APPLICATION
IS COMPLETE AND CONFORMS TO THE COMPREHENSIVE PLAN AND THE KENAI
ZONING CODE. WHERE THERE IS DIFFICULTY IN OBTAINING A PERFECTED
APPLICATION, DETAILS AS TO DEVELOPMENT PLANS, ETC., OR WHERE THE
APPLICANT FAILS TO COMPLY WITH DIRECTIONS OR REQUESTS OF THE
PLANNING AND ZONING COMMISSION, ANY SUCH PRIORITY WILL BE LOST. IF AN
APPLICATION FOR THE PURCHASE OF CITY-OWNED LANDS, PREVIOUSLY
AUTHORIZED FOR SALE BY THE COUNCIL, IS RECEIVED BY THE CITY PRIOR TO
THE KENAI PLANNING AND ZONING COMMISSION MAKING AN AFFIRMATIVE OR
NEGATIVE RECOMMENDATION TO THE COUNCIL REGARDING THE LEASE
APPLICATION FOR THE SAME PROPERTY, THE CITY MAY ELECT TO SELL THE
PROPERTY IN ACCORDANCE WITH THE PROVISIONS OF THE CODE.
(B) THE CITY COUNCIL SHALL NORMALLY CONSIDER A LEASE PROPOSAL ONLY
AFTER APPROVAL OF THE PLANNING AND ZONING COMMISSION. HOWEVER,
APPEALS OF PLANNING AND ZONING COMMISSION DISAPPROVAL MAY BE MADE
TO THE CITY COUNCIL. COMPLETED LEASE APPLICATIONS MUST BE PRESENTED
TO THE CITY COUNCIL WITHIN THIRTY (30) DAYS AFTER APPROVAL BY THE
PLANNING AND ZONING COMMISSION.]
(c) Notice of complete applications for new leases, renewals or extensions shall be published in
a newspaper of general circulation within the City. The notice must contain the name of the
applicant, a brief description of the land, whether the applicant requests a lease with an option to
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purchase, and the date upon which any competing applications must be submitted (thirty (30)
days from the date of publication).
(d) The applicant shall post the property subject to the application with notice of complete
applications for new leases, renewals or extension at least ten (10) days before the date of the
required public hearing. Such notices shall be placed so as to be visible from each improved
street adjacent to the property, to the extent possible.
[(C) WHERE THERE ARE TWO (2) OR MORE APPLICATIONS FOR THE SAME LANDS
FOR DIFFERENT USES, THEN IF THE PLANNING AND ZONING COMMISSION
MAKES A FINDING THAT A SUBSEQUENT APPLICATION WOULD RESULT IN USE
OF THE LANDS FOR A HIGHER AND BETTER PURPOSE WITH A GREATER BENEFIT
TO THE CITY OF KENAI AND THE CITIZENS THEREOF, THEN THE LEASE MAY BE
ISSUED TO SUCH APPLICANT NOTWITHSTANDING THE PROVISIONS OF
SUBSECTION (A) IN THIS SECTION WHICH PROVIDE FOR LEASING ON A FIRST-
COME, FIRST-SERVED BASIS. ANY APPLICANT MAY APPEAL TO THE CITY
COUNCIL FROM A FINDING OR A REFUSAL TO FIND BY THE PLANNING AND
ZONING COMMISSION BY FILING AN APPEAL WITH THE CITY CLERK WITHIN
SEVEN (7) DAYS AFTER THE FINDING IS MADE OR REFUSED BY THE PLANNING
AND ZONING COMMISSION.
(d) The recommendations of the City Manager, Planning and Zoning Commission, and any
other applicable commissions shall be provided to the City Council. The City Council shall
determine whether the lease is consistent with the intent of this chapter. The decision whether or
not to lease land or authorize a lease extension, renewal, amendment or assignment rests in the
sole discretion of the City Council.
(e) If the applicant is in default of any charges, fees, rents, taxes, or other sums due and payable
to the City or the applicant is in default of a requirement of any lease or contract with the City a
lease shall not be entered into until the deficiencies are remedied .
22.05.045 [REVIEW]Application for Lease Amendment, Assignment, Extension or
Renewal.
[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 COMMISSION AND APPROVED BY THE COUNCIL.]
(a) A request from an existing lessee for a lease amendment, assignment, extension or renewal
of the lease must be submitted to the City on an application form provided by the City.
Applications must be complete and dated on receipt and include payment of the nonrefundable
application fee and applicable deposit as set forth in the City’s schedule of fees adopted by the
City Council.
(b) An application for an amendment must include the following information:
(1) The purpose of the proposed amendment;
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(2) The proposed change in use or activity, if any;
(3) A comprehensive description of the proposed business or activity, if applicable; and
(4) How the proposed amendment meets the intent of this chapter.
(c) An application for a lease assignment must include the following:
(1) The name of the individual or legal entity to which the lessee requests to assign the lease.
(d) An application for a lease extension must include the following information:
(1) The use, nature, type and estimated cost of additional improvements to be constructed;
(2) The dates new construction is estimated to commence and be completed; and
(3) How the proposed lease extension meets the intent of this chapter.
(e) An application for a lease renewal must include the following information:
(1) For a lease renewal of an existing lease:
(i) The use, nature, type and estimated cost of additional investment in the construction of new
permanent improvements;
(ii) The dates new construction is estimated to commence and be completed;
(iii) If the renewal is pursuant to a transaction between the current lessee and a new buyer and
prospective lessee, the estimated purchase price of real property improvements on the premises
as certified by the current lessee and proposed purchaser in a bill of sale; and
(iv) How the proposed lease renewal meets the intent of this chapter.
(2) For a lease renewal of an expiring lease:
(i) A fair market value appraisal of the existing principal improvement on the property, paid for
by the applicant, and the estimated cost of any additional investment in the construction of
permanent improvements on the premises, if applicable;
(ii) If the renewal is pursuant to a transaction between the current lessee and a new buyer and
prospective lessee, the estimated purchase price of existing real property improvements, as
certified by the current lessee and the proposed purchaser in a bill of sale and the estimated cost
of any additional investment in the construction of permanent improvements on the premises, if
applicable;
(iii) If the renewal is based on a professional estimate of the remaining useful life of the real
property improvements on the premises, the estimated value and how it was determined;
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(iv) The use, nature, type and estimated cost of any additional improvements to be constructed,
if applicable;
(v) The dates any new construction is estimated to commence and be completed; and
(vi) How the proposed lease meets the intent of this chapter.
(f) Applications for amendment, assignment, extension or renewal shall be processed in
accordance with the lease application review provisions of this chapter, except that applications
for assignment shall not be referred to the Planning and Zoning Commission. The City has no
obligation to amend, assign, renew or extend a lease and may decline to do so upon making
specific findings as to why a lease amendment, assignment, renewal, or extension is not in the
best interest of the City.
[22.05.050 APPRAISAL.
NO LAND SHALL BE SOLD, LEASED, OR A RENEWAL OF LEASE ISSUED, UNLESS
THE SAME HAS BEEN APPRAISED WITHIN A TWELVE (12) MONTH PERIOD PRIOR
TO THE SALE OR DATE FIXED FOR BEGINNING OF THE TERM OF THE LEASE OR
RENEWAL LEASE. NO LAND SHALL BE LEASED FOR LESS THAN THE APPROVED
APPRAISED ANNUAL RENTAL. APPRAISALS SHALL REFLECT THE NUMBER AND
VALUE OF CITY SERVICES RENDERED THE LAND IN QUESTION.]
22.05.050 Competing Lease Applications.
If another application for a new lease, extension or a renewal is received for the same property
within thirty (30) days from the notice of application publication date by a different applicant,
City staff shall process the application and forward the application, the City Manager’s
recommendation and applicable commission recommendations to the City Council for approval
of the application anticipated to best serve the interests of the City. The City Council may
approve one (1) of the applications, reject all the applications or direct the City Manager to
award a lease of the property by sealed bid. An applicant for a renewal or extension may
withdraw an application for a renewal or extension at any time prior to a decision by the City
Council whether or not to approve such a renewal or extension.
22.05.055 [TERMS]Length of [L]Lease [T]Term.
[ALL LEASES SHALL BE APPROVED BY THE CITY COUNCIL BEFORE THE SAME
SHALL BECOME EFFECTIVE. THE TERM OF ANY GIVEN LEASE SHALL DEPEND
UPON THE DURABILITY OF THE PROPOSED USE, THE AMOUNT OF INVESTMENT
IN IMPROVEMENT PROPOSED AND MADE, AND THE NATURE OF THE
IMPROVEMENT PROPOSED WITH RESPECT TO DURABILITY AND TIME REQUIRED
TO AMORTIZE THE PROPOSED INVESTMENT].
(a) The length of term for an initial lease shall be based on the amount of investment the
applicant proposes to make in the construction of new permanent improvements on the premises
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as provided in the application. The City Council may offer a shorter lease term, if the City
Council makes specific findings that a shorter lease term is in the best interest of the City.
(b) The maximum term of a lease shall be determined according to the following term table and
cannot exceed forty-five (45) years:
Term Table
Applicant’s Investment/Value Maximum Term Of
Years
$7,500 5
15,000 6
22,500 7
30,000 8
37,500 9
45,000 10
52,500 11
60,000 12
67,500 13
75,000 14
82,500 15
90,000 16
97,500 17
105,000 18
112,500 19
120,000 20
127,500 21
135,000 22
142,500 23
150,000 24
157,500 25
165,000 26
172,500 27
180,000 28
187,500 29
195,000 30
202,500 31
210,000 32
217,500 33
225,000 34
232,500 35
240,000 36
247,500 37
255,000 38
262,500 39
270,000 40
277,500 41
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285,000 42
292,500 43
300,000 44
307,500 45
(c) Lease extension. The length of term for a lease extension shall be determined based on the
remaining term of the initial lease and the estimated cost of new investment the applicant
proposes to make in the construction of new permanent improvements on the premises according
to the term table and provided no extension shall extend a lease term past forty-five (45) years.
(d) Lease renewal for an existing lease. A renewal for an existing lease requires the construction
of new permanent improvements, and the length of term for a lease renewal for an existing lease
shall determined as follows:
(1) Based on the remaining term of the initial lease according to the term table and the estimated
cost of new investment the applicant proposes to make in the construction of new permanent
improvements on the premises according to the term table; or
(2) Pursuant to a transaction between the current lessee and a new buyer and prospective lessee
and based on the purchase price of existing real property improvements on the premises, as
certified by the current lessee and the proposed purchaser in the bill of sale, to be executed at
closing of the transaction and the estimated cost of new investment in the construction of new
permanent improvements on the premises according to the term table.
(3) The term for renewal of an existing lease cannot exceed forty-five (45) years.
(e) Lease renewal for an expiring lease. The length of term for a lease renewal of an expiring
lease shall be determined as follows:
(1) The purchase price of existing real property improvements on the premises, as certified by
the current lessee and the proposed purchaser in the bill of sale, to be executed at closing of the
transaction and the estimated cost of any new investment in the construction of new permanent
improvements on the premises according to the term table; or
(2) A professional estimate of the remaining useful life of the real property improvements on
the premises, paid for by the applicant and the estimated cost of any new investment in the
construction of new permanent improvements on the premises according to the term table; or
(3) A fair market value appraisal of the existing real property improvements on the premises,
paid for by the applicant and the estimated cost of any new investment in the construction of new
permanent improvements on the premises according to the term table.
(4) The term for renewal of an existing lease cannot exceed forty-five (45) years.
(f) If the initial lease, term extension, or lease renewal granted to the applicant requires
construction of new permanent improvements, the lease or term extension shall be subject to the
following conditions:
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(1) The lessee to complete the proposed permanent improvements within two (2) years except in
special circumstances, that require a longer period of time and which must be approved by the
City Council.
(2) The lessee to provide a performance bond, deposit, personal guarantee, or other security if
the City Council determines security is necessary or prudent to ensure the applicant’s completion
of the permanent improvements required in the lease, renewal, or extension. The City Council
shall determine the form and amount of the security according to the best interest of the City,
after a recommendation by the City Manager considering the nature and scope of the proposed
improvements and the financial responsibility of the applicant.
(3) At no expense to the City, the lessee must obtain and keep in force during the term of the
lease, insurance of the type and limits required by the City for the activities on the premises.
(4) Within thirty (30) days after completion of the permanent improvements, the lessee shall
submit to the City written documentation that the improvements have been completed as
required. The City Manager shall make a report to the City Council of completion as soon as
reasonably practical.
(5) If the applicant shows good cause and the City Council determines the action is in the best
interest of the City, the City Council may grant an extension of the time allowed to complete
permanent improvements by resolution that is sufficient to allow for the completion of the
permanent improvements or for submission of documentation that the permanent improvements
have been completed.
(6) If, within the time required, the applicant fails to complete the required permanent
improvements, the City shall:
(i) If the application is for a new lease or lease renewal, execute the forfeiture of the
performance bond, deposit, personal guarantee, or other security posted by the applicant under
subsection (f)(2) of this section to the extent necessary to reimburse the City for all costs and
damages, including administrative and legal costs, arising from the applicant’s failure to
complete the required improvements, and/or initiate cancellation of the lease or reduce the term
of the lease to a period consistent with the portion of the improvements substantially completed
in a timely manner according to the best interests of the City.
(ii) If the application is for a lease extension, the City shall terminate the amendment extending
the term of the lease or reduce the term of the extension at the City’s sole discretion.
22.05.060 [ANNUAL MINIMUM RENTAL]Principles and Policy of Lease Rates.
(a) Annual [MINIMUM] rent[ALS] shall be computed [FROM THE APPROVED
APPRAISED]by multiplying the fair market value of the land by a lease rate percentage of eight
percent (8%) for each parcel [UTILIZING THE METHOD AS DESCRIBED IN
KMC 22.05.070 OF THIS CHAPTER.]; and
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(b) The City will determine the fair market value of the land requested to be leased based on an
appraisal conducted for the City by an independent real estate appraiser certified under Alaska
State statutes and ordered by the City for the purpose of determining annual rent. The appraisal
shall be paid for by the applicant, and the cost of the appraisal shall be credited or refunded to the
lessee once development is completed as required by the lease. The fair market value of the land
will be adjusted annually based on the rate of inflation determined by the consumer price index
(CPI) to determine annual rent[.]; and
[(B) UPON EXECUTION OF THE LEASE, THE LANDS BECOME TAXABLE TO THE
EXTENT OF ITS LEASEHOLD INTEREST AND LESSEE SHALL PAY ALL REAL
PROPERTY TAXES LEVIED UPON SUCH LEASEHOLD INTEREST IN THESE LANDS,
AND SHALL PAY ANY SPECIAL ASSESSMENTS AND TAXES AS IF HE OR SHE WERE
THE OWNER OF THE LAND.
(C) RENT SHALL BE PAID ANNUALLY IN ADVANCE. PAYMENTS SHALL BE
PRORATED TO CONFORM TO THE CITY OF KENAI’S FISCAL YEAR BEGINNING
JULY 1ST AND ENDING JUNE 30TH. IF THE EQUIVALENT MONTHLY PAYMENT
EXCEEDS TWO HUNDRED DOLLARS ($200.00), THEN THE LESSEE SHALL HAVE
THE OPTION OF MAKING PAYMENTS ON A MONTHLY BASIS.
(D) LESSEE SHALL BE RESPONSIBLE FOR ALL SALES TAXES APPLICABLE TO ITS
OPERATIONS.]
(c) The City will conduct a land market analysis of City-owned land under lease once every ten
(10) years to determine whether a market adjustment in either fair market value of land or lease
rate percentage is justified; and
(d) If the City determines from the market analysis that a market adjustment to the lease rate
percentage is in the best interests of the City, the new lease percentage must be approved by an
ordinance and utilized to compute annual rents for the next fiscal year; and
(e) If the market analysis or extraordinary circumstances determine a fair market value
adjustment is in the best interests of the City, the City shall retain the services of an independent,
real estate appraiser certified under Alaska State statutes to determine the fair market value of all
leased land and shall use these values to compute annual rents for the next fiscal year; and
(f) The City shall adjust the annual rent of a lease by giving the lessee written notice at least
thirty (30) days prior to application of a new annual rent determination; and
(g) If a lessee disagrees with the proposed change in the fair market value of land or lease rate
percent (excluding CPI determinations, which cannot be appealed) and cannot informally resolve
the issue with the City, the lessee must:
(1) Provide notice of appeal in writing within ninety (90) days of notification supported by the
written appraisal of a qualified real estate appraiser, selected and paid for by lessee (the “second
appraiser”); and
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(2) The City and the lessee will meet to attempt to resolve the differences between the first
appraiser and the second appraiser concerning the fair market value of the land or lease rate
percent; and
(3) If the City and lessee cannot agree upon the fair market value or lease rate percent then they
shall direct the first appraiser and the second appraiser to mutually select a third qualified real
estate appraiser, paid for jointly by the parties (the “third appraiser”); and
(4) Within thirty (30) days after the third appraiser has been appointed, the third appraiser shall
decide which of the two (2) respective appraisals from the first appraiser and the second
appraiser most closely reflects the fair market value of the land or lease rate percent; and
(5) The fair market value of the land or lease rate percent shall irrefutably be presumed to be the
value(s) contained in such appraisal selected by the third appraiser, and the rent shall be
redetermined based on such value(s); and
(6) Rent shall continue to be paid at the then-applicable rate until any such new rental rate is
established, and lessee and the City shall promptly pay or refund, as the case may be, any
variance in the rent, without interest accruing to the extent to be paid/refunded.
22.05.065 [B]Lease Bidding [P]Procedure.
[AS AN EXCEPTION TO GENERAL POLICY LISTED ABOVE]With the approval of the City
Council, the [CITY COUNCIL]City Manager may designate a specific lot or lots to be [MADE
AVAILABLE ONLY FOR]leased through competitive sealed bid. The City Manager shall
award the lease to the qualified bidder utilizing a procurement procedure which may consider
qualitative factors in addition to the amount of any [AS DESIGNATED, SEALED BIDS
SHALL BE RECEIVED OFFERING A]one (1) time premium payment to be paid by the
successful bidder; provided, however, that the high bidder and the bidder’s lease proposal [IN
ADDITION TO THE ESTABLISHED LEASE RATE. HIGHEST BID, HOWEVER,]shall be
subject to all provisions of lease application review and approval [ESTABLISHED FOR ALL
OTHER LEASE APPLICATIONS]under this chapter.
[22.05.070 PRINCIPLES AND POLICY OF LEASE RATES.
(A) A FAIR RETURN TO THE GENERAL FUND IS THE POLICY OF THE CITY,
UNLESS DEVIATION FROM THAT POLICY IS IN THE BEST INTEREST OF THE CITY
AS DETERMINED BY THE CITY COUNCIL. TO ENSURE A FAIR RETURN, ALL
LEASES FOR A PERIOD IN EXCESS OF FIVE (5) YEARS SHALL INCLUDE A
REDETERMINATION CLAUSE AS OF THE FIFTH ANNIVERSARY OF THE LEASE AND
EVERY FIVE (5) YEARS THEREAFTER, AND ALL LANDS FOR LEASE SHALL BE
APPRAISED PRIOR TO LEASE AND AGAIN PRIOR TO REDETERMINATION. LEASE
RATES:
(1) SHALL BE BASED ON FAIR MARKET VALUE OF THE LAND, INCLUDING AN
APPROPRIATE CONSIDERATION OF FACILITIES AND SERVICES AVAILABLE
(PUBLIC WATER, PUBLIC SEWER, STORM SEWERS, AND OTHER PUBLIC UTILITIES)
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AS DETERMINED BY A QUALIFIED INDEPENDENT APPRAISER, CONSIDERING THE
BEST USE OF THE SPECIFIED LAND; AND
(2) SHALL BE EIGHT PERCENT (8%) OF FAIR MARKET VALUE.
(B) FOR LEASES IN EXISTENCE PRIOR TO THE EFFECTIVE DATE OF THE
ORDINANCE CODIFIED IN THIS CHAPTER, THE LEASE RATE REDETERMINATION
SHALL BE AS PROVIDED IN THE LEASE.
(C) THE CITY MANAGER SHALL CHANGE THE RENT IN A LEASE BY GIVING THE
LESSEE WRITTEN NOTICE AT LEAST THIRTY (30) DAYS IN ADVANCE OF THE
EFFECTIVE DATE OF THE CHANGE.
(D) THE “FAIR MARKET VALUE” OF THE PREMISES SHALL BE EQUAL TO THE
THEN FAIR MARKET RATE FOR SIMILAR COMMERCIAL PROPERTY IN THE CITY
OF KENAI, ALASKA (THE “RELEVANT AREA”). CITY SHALL GIVE NOTICE TO
LESSEE OF CITY’S ESTIMATION OF THE FAIR MARKET VALUE NOT LATER THAN
THIRTY (30) DAYS PRIOR TO THE EXPIRATION OF THE THEN-APPLICABLE FIVE (5)
YEAR PERIOD, AS EVIDENCED AND SUPPORTED BY THE WRITTEN OPINION OF AN
INDEPENDENT REAL ESTATE APPRAISER CERTIFIED UNDER ALASKA STATUTE
8.87, SELECTED AND PAID FOR BY THE CITY, FAMILIAR WITH THE RELEVANT
AREA (THE “FIRST APPRAISER”). IF LESSEE DISAGREES WITH SUCH ESTIMATE, IT
SHALL ADVISE THE CITY IN WRITING THEREOF WITHIN THIRTY (30) DAYS OF
LESSEE’S RECEIPT OF SUCH ESTIMATE, AS EVIDENCED AND SUPPORTED BY THE
WRITTEN OPINION OF A REAL ESTATE APPRAISER CERTIFIED UNDER ALASKA
STATUTE 8.87 (SELECTED AND PAID FOR BY LESSEE) FAMILIAR WITH THE
RELEVANT AREA (THE “SECOND APPRAISER”). THE PARTIES SHALL PROMPTLY
MEET TO ATTEMPT TO RESOLVE THEIR DIFFERENCES BETWEEN THE FIRST
APPRAISER AND THE SECOND APPRAISER CONCERNING THE FAIR MARKET
VALUE OF THE PREMISES. IF CITY AND LESSEE CANNOT AGREE UPON SUCH
VALUE THEN, WITH ALL DELIBERATE SPEED, THEY SHALL DIRECT THE FIRST
APPRAISER AND THE SECOND APPRAISER TO EXPEDITIOUSLY AND MUTUALLY
SELECT A THIRD REAL ESTATE APPRAISER CERTIFIED UNDER ALASKA STATUTE
8.87 (SELECTED AND PAID FOR JOINTLY BY THE PARTIES) FAMILIAR WITH THE
RELEVANT AREA (THE “THIRD APPRAISER”). WITHIN THIRTY (30) DAYS AFTER
THE THIRD APPRAISER HAS BEEN APPOINTED, THE THIRD APPRAISER SHALL
DECIDE WHICH OF THE TWO (2) RESPECTIVE APPRAISALS FROM THE FIRST
APPRAISER AND THE SECOND APPRAISER MOST CLOSELY REFLECTS THE FAIR
MARKET VALUE OF THE PREMISES. THE FAIR MARKET VALUE OF THE PREMISES
SHALL IRREBUTTABLY BE PRESUMED TO BE THE VALUE CONTAINED IN SUCH
APPRAISAL SELECTED BY THE THIRD APPRAISER, AND THE RENTAL SHALL BE
REDETERMINED BASED ON SUCH VALUE. NOTWITHSTANDING ANYTHING TO
THE CONTRARY HEREIN, RENTAL SHALL CONTINUE TO BE PAID AT THE THEN-
APPLICABLE RATE UNTIL ANY SUCH NEW RENTAL RATE IS ESTABLISHED, AND
LESSEE AND CITY SHALL PROMPTLY PAY OR REFUND, AS THE CASE MAY BE,
ANY VARIANCE IN THE RENTAL, WITHOUT INTEREST THEREON ACCRUING TO
THE EXTENT TO PAID/REFUNDED IN A TIMELY FASHION.
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22.05.075 REIMBURSEMENT FOR CITY-CONSTRUCTED IMPROVEMENTS.
(A) THE CITY MANAGER MAY INCLUDE IN A LEASE A REQUIREMENT FOR THE
LESSEE TO REIMBURSE THE CITY FOR THE CITY’S COST OF:
(1) LAND CLEARING, GRAVEL FILL, UTILITY EXTENSIONS AND OTHER
IMPROVEMENTS OR AMENITIES ON OR IN DIRECT CONNECTION WITH THE
PREMISES, CONSTRUCTED BY THE CITY PRIOR TO THE EFFECTIVE DATE OF THE
LEASE; OR
(2) LAND CLEARING, GRAVEL FILL, UTILITY EXTENSIONS AND OTHER
IMPROVEMENTS OR AMENITIES ON OR IN DIRECT CONNECTION WITH THE
PREMISES, WHICH THE CITY AGREES TO CONSTRUCT AS A CONDITION OF THE
LEASE, SUBJECT TO CITY COUNCIL APPROVAL.
(B) THE LESSEE SHALL REIMBURSE THE CITY FOR THE CITY’S COST OF
CONSTRUCTING THE IMPROVEMENTS IN TEN (10) EQUAL ANNUAL PAYMENTS,
PLUS INTEREST AT EIGHT PERCENT (8%) PER YEAR ON THE UNPAID BALANCE. IF
THE LEASE IS FOR LESS THAN TEN (10) YEARS, THE REPAYMENT SCHEDULE MAY
NOT BE LONGER THAN THE TERM OF THE LEASE. THE LESSEE MAY PAY THE
ENTIRE REMAINING BALANCE TO THE CITY AT ANY TIME DURING THE TERM OF
THE LEASE.]
22.05.070 Development Incentives.
(a) The City Council may include a lease rent incentive to encourage commercial investment as
follows:
(1) A credit may be applied toward rent for a maximum of five (5) years. The credit may only
include the value of site preparation work on the leased premises to include clearing and
grubbing, unclassified excavation, classified fill and back fill, crushed aggregate base course, and
utility extensions.
(2) An estimate of the value of the work, including a scope of work, prepared by a qualified
engineer licensed to work in Alaska must be provided to the City and accepted prior to work
being performed.
(3) Any changes to the estimate of the value of the work or scope of work must be provided to
the City and accepted prior to work being performed to be eligible for the credit.
(4) For the credit to be applied, the approved scope of work must be completed.
(5) A certification from a qualified engineer that the accepted scope of work has been completed
must be provided to the City and accepted at the completion of the site preparation work.
(6) Credit will be limited to original qualified engineer’s estimate unless another amount is
accepted by the City in advance of work being completed.
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(7) Once the work is completed as proposed and the qualified engineer’s certification of
completion has been received, a credit shall be applied to the lease payments, prorated as
necessary for a maximum of five (5) years.
(8) Rent shall be paid at the then-applicable rate until any such credit toward rent has been
approved by the City Manager or designee, and the City shall apply a credit to lease payments
prorated as necessary or promptly pay or refund, as the case may be, any variance between the
credit applied and the rent paid, without interest accruing to the extent to be paid/refunded.
22.05.075 Ownership of Improvements.
(a) Permanent improvements on the premises, excluding site development materials,
constructed, placed, or purchased by the lessee remain the lessee’s property as long as a lease for
the premises remains in effect with the lessee, including renewals, any period of extension
approved by the City pursuant to the provisions of this chapter, or any period of holdover.
(b) Unless otherwise provided in a land lease, at the expiration, cancellation, or termination of a
lease that is extended or followed by a successive lease, the departing lessee may do one (1) or
more of the following:
(1) Remove lessee-owned permanent improvements from the premises, remediate any
contamination for which the lessee is responsible, and restore the premises to a clean and neat
physical condition acceptable to the City within ninety (90) days after the expiration,
cancellation, or termination date of the lease; or
(2) Sell lessee-owned permanent improvements to the succeeding lessee, remove all personal
property, remediate any contamination for which the lessee is responsible, and leave the
premises in a clean and neat physical condition acceptable to the City within sixty (60) days after
notice from the City that the City has approved an application for a lease of the premises by
another person or such longer period specified in the notice, but in no event more than one
hundred eighty (180) days after the expiration, termination, or cancellation date of the lease; or
(3) Purchase the property in which the lease contains an option to purchase once the minimum
development requirements have been met for the fair market value of the land excluding
permanent improvements made by the lessee.
(c) If the lessee does not timely remove or sell the lessee-owned permanent improvements on a
premises in accordance with the requirements of this section, any remaining permanent
improvements and any remaining personal property of the departing lessee will be considered
permanently abandoned. The City may sell, lease, demolish, dispose of, remove, or retain the
abandoned property for use as the City determines is in the best interest of the City. The lessee
shall, within thirty (30) days after being billed by the City, reimburse the City for any costs
reasonably incurred by the City, including legal and administrative costs, to demolish, remove,
dispose, clear title to, or sell the abandoned property and to remediate any contamination and
restore the premises.
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(d) Site development materials that a lessee places on a premises become part of the City-owned
real property and property of the City upon placement. The lessee:
(1) Must maintain the site development work and site development materials throughout the
term of the lease or successive lease, including any extensions and periods of holdover; and
(2) May not remove the site development materials unless the City approves in writing.
22.05.080 Lease [E]Execution.
The lease applicant shall execute and return the appropriate lease agreement with the City of
Kenai within thirty (30) days of mailing the agreement to the applicant. The lease agreement
shall be prepared in accordance with the requirements of this title. Failure to execute and return
the lease agreement within the specified period shall result in the forfeiture of all leasing rights.
22.05.085 Lease [U]Utilization.
Leased lands shall be utilized for purposes within the scope of the application, the terms of the
lease and in conformity with the ordinances of the City, and in substantial conformity with the
Comprehensive Plan. Utilization or development for other than the allowed uses shall constitute
a [VIOLATION]material breach of the lease and subject the lease to cancellation at any time.
Failure to substantially complete the development plan for the land shall constitute grounds for
cancellation.
22.05.086 Form of Lease.
(a) When leasing land under this chapter, the City Manager shall use a standard lease form that:
(1) Provides a reasonable basis for the lessee’s use of the premises,
(2) Complies with the intent of this chapter, and
(3) Provides for the best interest of the City.
(4) Approved as to form by the City Attorney; and
(5) Adopted by resolution of the City Council.
(b) The City Manager may enter into a land lease that deviates from the standard form adopted
under subsection (a) of this section, if:
(1) The City Manager believes the action is in the best interest of the City;
(2) The lease is approved as to form by the City Attorney; and
(3) The lease is approved by resolution of the City Council.
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22.10.087 Lease Payments.
(a) Upon execution of the lease, the land becomes taxable to the extent of the lessee’s leasehold
interest and lessee shall pay all real property taxes levied upon such leasehold interest in these
lands, and shall pay any special assessments and taxes.
(b) Rent shall be paid annually in advance unless the lessee submits a written request to the City
to pay on a quarterly or monthly basis. The payments shall be prorated to conform to the City of
Kenai’s fiscal year beginning July 1st and ending June 30th.
(c) Lessee shall be responsible for all sales taxes due on payments under the lease.
[22.05.090 CONVEYANCE TO ENCOURAGE NEW ENTERPRISES.
NOTWITHSTANDING ANY OTHER PROVISIONS OF THIS CHAPTER, WHERE IT IS
FOUND THAT ENCOURAGEMENT OF A NEW COMMERCIAL OR INDUSTRIAL
ENTERPRISE WOULD BE BENEFICIAL TO THE CITY OF KENAI, THE CITY COUNCIL
BY ORDINANCE SO FINDING MAY DIRECT CONVEYANCE OF ONE OR MORE
PARCELS OF CITY LAND BY THE CITY MANAGER TO SUCH ENTERPRISE UPON
SUCH TERMS AS TO PRICE, CONDITIONS OF CONVEYANCE, AND WITH SUCH
CONTINGENCIES AS MAY BE SET FORTH IN THE ORDINANCE.]
22.05.095 [S]Methods of Sale or Disposal.
(a) Lands[,] to which the City of Kenai holds title which are not restricted from sale by the deed
of conveyance to the City[,] or which have been released from such restrictions[, WHICH] and
that the City Council has determined are not required for a public purpose, may be listed for sale
by the City Manager[, EXCEPT THAT LANDS WHICH HAVE BEEN LEASED SHALL NOT
BE SOLD UNLESS THE LESSEE HAS MADE A WRITTEN REQUEST TO THE CITY TO
PLACE THE LAND FOR SALE]. The decision whether or not to sell the land rests in the sole
discretion of the City Council.
(b) [SALES OF LAND PURSUANT TO SUBSECTION (A) OF THIS SECTION SHALL BE
MADE AT NOT LESS THAN FAIR MARKET VALUE. THE PURCHASER SHALL
EXECUTE THE “AGREEMENT FOR SALE OF LAND” WITHIN ONE (1) YEAR OF THE
DATE OF APPRAISAL. ]The City Council may by ordinance authorize the City Manager [HAS
THE OPTION ]to dispose of such properties in accordance with [THE SALE PROCEDURES
SET OUT IN THIS TITLE]the intent of this chapter as follows:
(1) [BY NEGOTIATED SALE; OR]Non-competitive process:
(i) Conveyance to encourage new enterprises where it is found that encouragement of a new
commercial or industrial enterprise would be beneficial to the City of Kenai, one or more parcels
of City land may be sold upon such terms as to price, conditions of conveyance, and with such
contingencies as may be set forth in the ordinance.
(ii) Property sale to adjacent owners for the conveyance of a parcel of City property at fair
market value to the owner of adjacent land whenever, in the judgment of the City Council, the
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parcel of land is of such small size, shape, or location that it could not be put to practical use by
any other party.
(iii) Grant or devotion of real property to the United States, the State of Alaska, a local political
subdivision of the State of Alaska, or any agency of any of these governments or a non-profit
corporation, for a consideration agreed upon between the City and grantee without a public sale
if the grant, devotion or lease is advantageous to the City.
(iv) Conveyance of land to resolve a land use conflict.
(2) [BY]Competitive process:
(i) Public outcry auction to the highest responsible bidder[; OR].
[(3) BY COMPETITIVE S](ii) Sealed bid[s] to the highest responsible bidder.
(iii) Over-the-Counter sale after a public outcry auction or sealed bid process on a first-come
basis, provided minimum development requirements are met within two (2) years of sale and the
land is sold for fair market value. An appraisal to determine fair market value must be completed
within a one (1) year period prior to the date of sale.
(iv) Leased land in which the lease was subject to competition through the lease application
review process and which contains an option to purchase once the minimum development
requirements have been met for the fair market value of the land excluding permanent
improvements made by the lessee. An appraisal to determine fair market value must be
completed within a one (1) year period prior to the sale.
(3) Property exchange: Property exchanges for the conveyance and exchange of a parcel of
City-owned property for property owned by another individual or legal entity subject to such
conditions as Council may impose on the exchange, whenever the City Council makes findings it
is advantageous to the City to make the property exchange.
[IN THE EVENT THAT THE SALE IS NOT CLOSED WITHIN SIX (6) MONTHS OF THE
DATE OF APPRAISAL, THE BUYER WILL BE CHARGED, UPON CLOSING, INTEREST
COMPUTED IN ACCORDANCE WITH THE APPLICABLE PROVISIONS OF THE KENAI
MUNICIPAL CODE, BASED UPON THE TOTAL SALES PRICE FOR THE NUMBER OF
DAYS PAST THE EXPIRATION OF THE SIX (6) MONTH PERIOD.]
(c) Any sale of land owned by the City of Kenai and held by it for the use or benefit of the
Kenai Municipal Airport must include in any instrument conveying title to the property
restrictions accepted by the City under the terms of the 1963 Quitclaim Deed from the United
States of America recorded at Book 27, Page 303 at the Kenai Recording District, Kenai Alaska
or any other land owned by the City and acquired with Airport funds which may include similar
restrictions. Additionally, any sale or disposal of the aforementioned lands for less than fair
market value shall require a deposit in the amount of the difference between fair market value
and the sale price to the Airport Land Sale Permanent Fund for the benefit of the Kenai
Municipal Airport.
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22.05.100 Sale [P]Procedure.
(a) All requests to purchase City land must be submitted to the City on approved forms provided
by the City. Applications will be dated on receipt and payment of the nonrefundable application
fee and must include applicable deposit as set forth in the City’s schedule of fees adopted by the
City Council.
(b) Applications which propose a subdivision shall require the applicant to be responsible for all
costs associated with the subdivision, including but not limited to engineering services,
surveying and consulting costs, unless in the sole discretion of the City Council it is determined
the subdivision serves other City purposes.
(1) If the Council determines that other City purposes are served by the subdivision, the City
Council may choose in its sole discretion to share in the subdivision costs with the applicant in
an amount the City Council determines is reasonable given the benefit to the City.
(2) If the Council does not make a determination that other City purposes are served by the
subdivision, the applicant must submit a deposit to cover the estimated costs associated with the
subdivision.
(3) If the City enters into a sale with the applicant, any unused balance of the deposit made to
cover costs associated with subdivision will be credited toward the purchaser at closing.
(4) If the City’s costs exceed the amount of any deposit made to cover costs associated with
subdivision, the applicant must pay the shortage to the City as a condition of the sale.
(5) If the application is rejected or if the applicant withdraws the application or fails to enter into
a sale offered to the applicant, the City will return any unused deposit balance to the applicant.
(c) The City [MANAGER WILL OBTAIN SUCH AN APPRAISAL]will retain the services of
an independent, real estate appraiser certified under Alaska State statutes to determine the fair
market value for a determination of the minimum price on the land to be paid for from the
deposit made by the applicant unless such an appraisal has been obtained within one (1) year
prior to the date of sale. The cost of the appraisal will be credited toward the purchaser at
closing.
[(B) WHERE ANY PARTY, HEREINAFTER CALLED “APPLICANT,” REQUESTS THAT
A TRACT OR TRACTS OF LAND BE SOLD FOR WHICH AN APPRAISAL WILL BE
REQUIRED, WHICH WILL REQUIRE SUBDIVIDING, PLATTING, OR SURVEYING AND
STAKING, OR WHICH WILL REQUIRE ADVERTISING OR INCURRING ANY OTHER
EXPENDITURES BY THE CITY PRIOR TO SALE.
(1) NO ACTIONS IN PREPARATION FOR SALE WILL BE TAKEN BY THE CITY UNTIL
AN AGREEMENT TO PURCHASE SHALL BE PROPERLY EXECUTED AND FILED
WITH THE CITY MANAGER FOR THE PURCHASE OF SUCH LAND WITH PAYMENT
OF SUFFICIENT GOOD FAITH DEPOSIT, WHICH SHALL CONSIST OF CASH OR ITS
EQUIVALENT DEPOSITED WITH THE FINANCE OFFICER OF THE CITY OF KENAI,
AS MAY BE DETERMINED BY THE CITY MANAGER, TO COVER ALL EXPENSES OF
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THE CITY AND SUCH AGREEMENT TO PURCHASE SHALL FURTHER CONTAIN THE
AGREEMENT BY APPLICANT TO PAY ANY ADDITIONAL COSTS IF SAID GOOD
FAITH DEPOSIT IS INSUFFICIENT TO PAY ALL COSTS INCURRED BY THE CITY.]
(2)](d) If at any time during the process of preparing for sale, the applicant [GIVES NOTICE
TO THE CITY MANAGER OF WITHDRAWAL OF ]withdraws the [REQUEST]application
for sale, the City [MANAGER ]shall stop all procedures, [SHALL ]pay expenses incurred prior
to [TERMINATION OF SALE PROCEDURES ]withdrawal of the application for sale, and
[SHALL ]reimburse applicant for any [GOOD FAITH ]deposit advanced in excess of
[ALL]expenses incurred. [(]However, if another party desires the sale to proceed, files an
application [FOR SALE ]for sale, executes and files an agreement to purchase, and
[ADVANCES ]deposits sufficient funds[ THEREFOR], then the prior applicant will be
reimbursed for expenses [CHARGES ]which can be attributed to the subsequent applicant.[)
(3)](e) If all actions necessary for preparation for sale have been accomplished, and if neither
the applicant nor any other party purchases said land when first offered for sale after such
request, then all expenses incurred in preparation for the sale will be paid from the [GOOD
FAITH ]applicant’s deposit, and the balance, if any, shall be returned to the applicant. If the
[SUMS ]amount of the deposit is [ADVANCED AS GOOD FAITH DEPOSIT ARE]insufficient
to pay all of the costs, the applicant will be billed for the balance due[ AND NORMAL
COLLECTION PROCEDURES FOLLOWED].
[(4)](f) If the land [APPLIED FOR ]is sold [ON ]in a competitive public sale set in response to
such request to anyone other than the applicant, [THEN ON CLOSING OF THE SALE, ]the
[GOOD FAITH] applicant’s deposit will be refunded in total to the applicant. The City’s
expenses will be first deducted from the deposit of the successful bidder.
[(5)](g) If the land [IN QUESTION ]is sold to the applicant, [THE]any [GOOD FAITH ]deposit
advanced, after deducting the City’s expenses, will be [APPLIED ON THE PAYMENT DUE]
credited to the purchaser at closing.
[(6) IF THE LAND IN QUESTION IS TO BE SOLD BY SEALED BID AND THE
APPLICANT HAS SUBMITTED A VALID BID, BUT THE APPLICANT IS NOT THE HIGH
BIDDER, HE OR SHE MAY PURCHASE THE LAND BY TENDERING THE CITY A BID
EQUAL TO THE HIGH BID WITHIN FIVE (5) DAYS OF THE BID OPENING. IF THE
LAND SALE IS INITIATED IN ACCORDANCE WITH KMC 22.05.040[(A)], THE
APPLICANT SHALL BE DEFINED AS THAT PARTY SUBMITTING THE INITIAL LEASE
APPLICATION.]
([C]h) If the [TRACT OF ]land [PROPOSED TO BE SOLD ]is leased land in which the lease
contains an option to purchase once the minimum development requirements have been met, the
lessee may request the sale of the land at not less than the fair market value. [THE CURRENT
LESSEE OBTAINS THIS RIGHT TO REQUEST A SALE ONLY AFTER, TO THE
SATISFACTION OF THE CITY MANAGER, DEVELOPMENT HAS BEEN COMPLETED
AS DETAILED IN THE DEVELOPMENT SCHEDULE WHICH HAS BEEN
INCORPORATED INTO THE LEASE AGREEMENT. IF THERE IS NO DEVELOPMENT
SCHEDULE, THE LESSEE MAY PURCHASE THE PROPERTY IF THERE HAVE BEEN
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SUBSTANTIAL IMPROVEMENTS AS DETERMINED BY THE CITY MANAGER. THE
DECISION WHETHER OR NOT TO SELL THE LAND TO THE LESSEE RESTS WITH
THE SOLD DISCRETION OF THE CITY.]
([D]i) [IF THE TRACT OF LAND PROPOSED TO BE SOLD IS NOT LEASED LAND, OR
IS LEASED LAND WITHOUT SUBSTANTIAL IMPROVEMENTS, THEN THE TRACT OF
LAND MAY ONLY BE SOLD BY OUTCRY AUCTION OR BY COMPETITIVE SEALED
BIDS.] If the [TRACT] land is to be [PUT UP FOR SUCH ]sold through a competitive
[AUCTION OR SEALED BID SALE ]process, notice of sale and the manner in which the land
is to be sold [SHALL BE]must be posted to the extent possible to be visible from each improved
street adjacent to the property and published in a newspaper of general circulation within the
City [ONCE EACH WEEK FOR TWO (2) SUCCESSIVE WEEKS NOT LESS THAN
THIRTY (30) DAYS PRIOR TO THE DATE OF SALE; SUCH NOTICE SHALL ALSO BE
POSTED IN AT LEAST THREE (3) PUBLIC PLACES WITHIN THE CITY AT LEAST
THIRTY (30) DAYS PRIOR TO THE DATE OF SALE, AND SUCH OTHER NOTICE MAY
BE GIVEN BY SUCH OTHER MEANS AS MAY BE CONSIDERED ADVISABLE BY THE
CITY MA NAGER. SUCH]. The published notice must contain:
(1) The legal description of the land;
(2) A brief physical description of the land;
(3) The area and general location of the land;
(4) The minimum acceptable offer for the land (which shall be [ITS APPRAISED ]the fair
market value);
(5) The terms under which the land will be sold;
(6) Any limitations on the sale of the land;
(7) The time and place set for the auction or bid opening;
(8) The amount of deposit to be submitted with each bid in order to cover the City’s expenses
such as survey, appraisal, and reviews;
(9) Any other matters concerning the sale of which the City Manager believes the public should
be informed.
[(E) IF NO OFFERS ARE SUBMITTED MEETING THE MINIMUM ACCEPTABLE OFFER
(OR APPRAISED VALUATION), THE CITY MANAGER MAY NEGOTIATE FOR SALE
OF THE TRACT OR TRACTS OF LAND WITH A MODIFICATION OF PROPOSED
TERMS OR FOR LESS THAN THE APPRAISED VALUATION PROVIDED THAT NO
SUCH NEGOTIATED SALE FOR LESS THAN APPRAISED VALUE SHALL BE BINDING
UPON THE CITY UNLESS THE TERMS AND PRICE THEREIN ARE APPROVED BY
RESOLUTION OF THE CITY COUNCIL.
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(F) WHERE A REAL ESTATE AGENT FURNISHES A BUYER FOR CITY LAND, THE
CLOSING AGENT SHALL BE AUTHORIZED TO PAY THE AGENT A REAL ESTATE
COMMISSION OF FIVE PERCENT (5%) OF THE PURCHASE PRICE FOR THE LAND OR
FIVE PERCENT (5%) OF THE APPRAISED FAIR MARKET VALUE OF THE LAND,
WHICHEVER IS LOWER, UNDER THE FOLLOWING TERMS AND CONDITIONS:
(1) THE CITY MANAGER SHALL PROVIDE A NON-EXCLUSIVE LISTING OF LANDS
AVAILABLE FOR SALE.
(2) NO COMMISSION SHALL BE PAID TO AN AGENT WHERE THE AGENT IS A
PARTY, OR IN PRIVITY WITH A PARTY, TO THE SALE.
(G) CLOSING OF SALE OF CITY LANDS SHALL BE HANDLED BY A TITLE OR
ESCROW COMPANY.
(H) CONVEYANCE OF CITY LANDS SHALL BE BY QUIT CLAIM OR WARRANTY
DEED FURNISHED BY THE CITY, AND BUYERS ARE ADVISED THAT ALL SUCH
CONVEYANCES ARE SUBJECT TO ALL LIENS, ENCUMBRANCES, RESTRICTIONS,
AND COVENANTS OF RECORD AND ARE SPECIFICALLY, WITHOUT BEING LIMITED
THERETO, SUBJECT TO ANY UNRELEASED RESTRICTIONS CONTAINED IN THE
DEED OR DEEDS BY WHICH THE CITY RECEIVED TITLE TO THE LAND.]
([I]j) If a buyer desires to obtain a preliminary commitment for title insurance or title insurance
to the land, [THEN ]it shall be the responsibility of the buyer to obtain and pay for such
commitment or insurance[ AND TO PAY FOR THE SAME].
[(J) IF THE TRACT OR TRACTS OF LAND ARE SOLD UNDER TERMS BY WHICH THE
CITY IS TO ACCEPT A NOTE AS A PORTION OF THE PURCHASE PRICE, THE NOTE
AND ACCOMPANYING DEED OF TRUST MUST BE PREPARED BY AN ATTORNEY,
BUT MUST BE APPROVED BY THE CITY ATTORNEY PRIOR TO CLOSING.
(K) THE NOTE SHALL BE PLACED FOR COLLECTION WITH A BANK SELECTED BY
THE CITY MANAGER, WHICH MAY BE CHANGED FROM TIME TO TIME, AND
WHICH SHALL BE THE BANK IN WHICH CITY FUNDS ARE DEPOSITED. THE SET-UP
FEE TO INITIATE COLLECTION MAY BE NEGOTIATED AS SPECIFIED IN
KMC 22.05.100(L), AND THE BUYER SHALL PAY THE ANNUAL COLLECTION FEES
FOR SUCH BANK COLLECTION.]
([L]k) The City Manager is authorized to negotiate a division of the costs of sale [LISTED IN
KMC 22.05.100(G) (H), (I), (J)AND (K) ]to a maximum of fifty percent (50%) of the required
costs being borne by the City, provided however that no costs of sale will be paid by the City
where a sale is negotiated at a price below [APPRAISED ]the fair market value of the land.
22.05.101 No Right of Occupancy – Land Purchase Application Expiration.
(a) Submitting an application to purchase land does not give the applicant a right to purchase or
use City-owned land.
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25
(b) The application shall expire upon closing of the sale or rejection of a land purchase
application by the City Council or within twelve (12) months after the date the application has
been submitted.
22.05.105 Terms for [F]Financing [S]Sale of City-Owned [L]Lands.
(a) In order to expedite and facilitate the sale of City lands, the City Manager is authorized to
accept terms for sales and may accept a note secured by a deed of trust for a portion of the
purchase price thereof, subject to the following restrictions:
(1) [IF THE SALE IS TO A LESSEE WHO HAS PLACED A LIEN FOR FINANCING UPON
THE LAND OR IMPROVEMENTS, THEN THE CITY MANAGER IS NOT AUTHORIZED
TO SELL THE LAND EXCEPT FOR TOTAL CASH PAYMENT, PROVIDED, HOWEVER,
THAT THE CITY MANAGER MAY ACCEPT A NOTE SECURED BY A DEED OF TRUST
SUBORDINATE TO THE EXISTING SECURITY INTEREST IF THE AMOUNT OF THE
NOTE THEREBY SECURED IS WITHIN THE DIFFERENCE BETWEEN THE FAIR
MARKET VALUE OF THE LAND WITH IMPROVEMENTS, AND THE SUM OF ALL
PRIOR SECURITY INTERESTS. THE SALE DOCUMENTS SHALL BE SUBJECT TO THE
SAME RESTRICTIONS CONTAINED IN THE LEASE AS THE LEASE PROVIDES AT
THE TIME OF SALE.
(2)] Except for property sold by the City subsequent to foreclosure for delinquent taxes or
assessments, prior to making a determination to accept a note and deed of trust from a
prospective purchaser, the City [MANAGER] shall [SECURE] order a preliminary commitment
for title insurance and a review of the grantee index covering the party desiring to purchase the
land [FROM THE TITLE COMPANY IN THE LOCAL RECORDING DISTRICT]at the cost of
the party requesting to purchase the land, and no credit will be advanced on such sale if there are
any delinquent liens or unpaid judgments found in the title company report until any such
judgments or liens are paid and releases therefor have been filed.
([3]2) In the event of a credit sale, terms shall be approved by the City Council in the Ordinance
approving the sale, as follows:
(i) [T]The down payment required, which shall [BE DETERMINED BY THE CITY
MANAGER, BUT SHALL ]not be less than fifteen percent (15%) of the sales price[.]; and
(ii) The length of the note; and
(iii) A fixed or variable interest rate.
[(4) THE CITY MANAGER IS NOT AUTHORIZED TO ACCEPT TERMS FOR THE SALE
OF TAX-FORECLOSED LANDS UNLESS THE DOWN PAYMENT TO BE RECEIVED
THEREUNDER, OR OTHER SUMS APPROPRIATED FOR THE PURPOSE, ARE
SUFFICIENT TO MAKE IMMEDIATE PAYMENT TO THE KENAI PENINSULA
BOROUGH AND THE FORMER RECORD OWNER OF THE SUMS WHICH ARE, OR
MAY BECOME, DUE TO THEM PURSUANT TO THE PROVISIONS OF AS 29.]
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26
[(B) IF THE CITY MANAGER DETERMINES THAT IT IS IN THE CITY’S INTEREST TO
SELL CITY LANDS, THE SALE SHALL BE EITHER A CASH TRANSACTION OR BY A
NOTE SECURED BY A DEED OF TRUST, SUBJECT TO SUBSECTION (A) OF THIS
SECTION, AND BY NO OTHER MEANS. THE NOTE AND DEED OF TRUST SHALL
CARRY TERMS AS FOLLOWS:
(1) THE TERM OF SUCH NOTE MAY BE SET BY THE CITY MANAGER, BUT IT
SHALL PROVIDE FOR MONTHLY PAYMENTS AND NOT EXCEED TWENTY (20)
YEARS UNLESS A LONGER PERIOD FOR A SPECIFIC SALE OF LAND IS APPROVED
BY RESOLUTION OF THE CITY COUNCIL.
(2) SUCH NOTE SHALL BEAR INTEREST AT A RATE TO BE DETERMINED BY THE
CITY COUNCIL BY RESOLUTION.]
22.05.110 Determination as to [N]Need for [P]Public [U]Use.
(a) Whether land shall be acquired, retained, devoted, or dedicated to a public use shall be
determined by ordinance which shall contain the public use for which the property is to be
dedicated, the legal description of the property, and the address or a general description of the
property sufficient to provide the public with notice of its location. This requirement does not
apply to rights-of-way or easements dedicated through the City and Borough platting process.
(b) Whether land previously dedicated to a public use should be dedicated to a different public
use or should no longer be needed for public use shall be determined by the City Council by
ordinance, except in cases of vacation of rights-of-way or easements which may be determined
by resolution, either of which shall contain the new public use for which the property is to be
dedicated or the reason the land is no longer needed for public use, the legal description of the
property, and the address or a general description of the property sufficient to provide the public
with notice of its location.
[22.05.115 PROPERTY EXCHANGES.
THE COUNCIL MAY APPROVE, BY ORDINANCE, AFTER PUBLIC NOTICE AND AN
OPPORTUNITY FOR PUBLIC HEARING, THE CONVEYANCE AND EXCHANGE OF A
PARCEL OF CITY PROPERTY FOR PROPERTY OWNED BY ANOTHER PERSON
SUBJECT TO SUCH CONDITIONS AS COUNCIL MAY IMPOSE ON THE EXCHANGE,
WHENEVER IN THE JUDGMENT OF THE CITY COUNCIL IT IS ADVANTAGEOUS TO
THE CITY TO MAKE THE PROPERTY EXCHANGE.
22.05.120 PROPERTY SALE TO ADJACENT OWNERS.
THE COUNCIL MAY APPROVE, BY ORDINANCE, AFTER PUBLIC NOTICE AND AN
OPPORTUNITY FOR PUBLIC HEARING, THE SALE AND CONVEYANCE OF A
PARCEL OF CITY PROPERTY AT ITS APPRAISED VALUE TO THE OWNER OF
ADJACENT LAND WHENEVER, IN THE JUDGMENT OF THE CITY COUNCIL, THE
PARCEL OF LAND IS OF SUCH SMALL SIZE, SHAPE, OR LOCATION THAT IT COULD
NOT BE PUT TO PRACTICAL USE BY ANY OTHER PARTY AND, IN ADDITION
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27
THERETO, WHERE THERE IS NO FORESEEABLE NEED OF THE LAND FOR ANY
FUTURE USE BY THE CITY.
22.05.125 GRANT OR DEVOTION.
THE COUNCIL, BY ORDINANCE, MAY WAIVE THE PROVISIONS OF THIS CHAPTER
AND LEASE, GRANT OR DEVOTE REAL PROPERTY NO LONGER NEEDED BY THE
CITY FOR PUBLIC PURPOSE TO THE UNITED STATES, THE STATE OF ALASKA, A
LOCAL POLITICAL SUBDIVISION OF THE STATE OF ALASKA, OR ANY AGENCY OF
ANY OF THESE GOVERNMENTS OR A NON-PROFIT CORPORATION, FOR A
CONSIDERATION AGREED UPON BETWEEN THE CITY AND GRANTEE WITHOUT A
PUBLIC SALE IF THE GRANT, DEVOTION OR LEASE IS ADVANTAGEOUS TO THE
CITY.]
22.05.130 Special Use [P]Permits.
The City Council may authorize the City Manager to grant special use permits for the temporary
use of real property owned by the City for a period not to exceed [FIVE (5)] one (1) year[S],
without appraisal of the value of the property or public auction, for any purpose compatible with
the zoning of the land, and on such terms and for such rentals as the [C]Council shall determine.
22.05.135 Acquisition of [R]Real [P]Property.
(a) The City, by authorization of the City Council, expressed in a resolution for such purpose,
may lease, purchase or acquire an interest in real property needed for a public [USE] purpose on
such terms and conditions as the Council shall determine. No purchase shall be made until a
qualified independent appraiser has appraised the property and given the Council an
[INDEPENDENT ]opinion as to the [FULL AND TRUE ]fair market value [THEREOF ]of the
land unless the Council, upon resolution so finding, determines that the public interest will not be
served by an appraisal.
[(B) BECAUSE OF THE UNIQUE VALUE OF REAL PROPERTY, THE CITY NEED NOT
ACQUIRE OR LEASE REAL PROPERTY BY COMPETITIVE BIDDING.]
(c) Rights-of-way and easements may be accepted or issued by the City Manager after approval
by the City Council for utility lines and services of all types and for necessary rights-of-way
easements. This requirement does not apply to rights-of-way or easements dedicated through the
City and Borough platting process.
Page 53
DRAFT
CITY OF KENAI
LAND MANAGEMENT PLAN
Draft: June 2019
Page 54
Page 55
CONTENTS
Executive Summary ....................................................................................................................................... 1
Acknowledgements ....................................................................................................................................... 2
Introduction and Background Information ................................................................................................... 3
City-Owned Parcels ................................................................................................................................... 3
Funds ......................................................................................................................................................... 3
Kenai Municipal Code ............................................................................................................................... 4
Kenai Comprehensive Plan and Land Use Plan ......................................................................................... 4
Leases ........................................................................................................................................................ 4
Lands Inventory ............................................................................................................................................. 5
Retain - Existing Public Facilities ............................................................................................................... 6
Retain - Public Purpose ............................................................................................................................. 8
Available for Lease or Sale ........................................................................................................................ 8
Available for Lease Only ............................................................................................................................ 8
Unavailable - Under Active Lease ............................................................................................................. 9
Tidelands ................................................................................................................................................... 9
Parcels for Further Study .......................................................................................................................... 9
Implementation Strategy ............................................................................................................................ 13
References .................................................................................................................................................. 14
Appendix A. Index ....................................................................................................................................... 15
Appendix B. Tables and Figures .................................................................................................................. 25
Appendix C. Public Meetings ...................................................................................................................... 26
Page 56
Page 57
City of Kenai Land Management Plan 1
EXECUTIVE SUMMARY
PLACEHOLDER
Page 58
City of Kenai Land Management Plan 2
ACKNOWLEDGEMENTS
City Council
Name
Name
Name
Name
Name
Name
Name
Planning and Zoning Commission
Name
Name
Name
Name
Name
Name
Name
City Staff
Name
Name
Name
Name
Name
Name
Name
Special Thank you
Name
Name
Name
Name
Name
Name
Page 59
City of Kenai Land Management Plan 3
INTRODUCTION AND BACKGROUND INFORMATION
This land management plan describes current conditions of City-owned property and actions to retain,
improve, or dispose of property. The plan provides a lands inventory, description, and recommendations
for each parcel that was developed through a public process to allow for valuable input into the
disposition of City-owned lands.
CITY-OWNED PARCELS
The City of Kenai owns a total of 358 subdivided parcels of land which have been obtained from the
Federal Government of the United States, State of Alaska, Kenai Peninsula Borough, and private
donations.
FUNDS
Approximately 65 percent of the parcels owned by the City of Kenai are tied to the General Fund. The
approximately 35 percent remaining parcels are tied to the Airport Fund.
Page 60
City of Kenai Land Management Plan 4
KENAI MUNICIPAL CODE
KENAI COMPREHENSIVE PLAN AND LAND USE PLAN
The 2016 Imagine Kenai 2030 City of Kenai Comprehensive Plan contains the Land Use Plan. This plan
describes land management specific to City-owned parcels, and the Land Use Plan describes a
generalized pattern of existing and desirable land use for all lands within the City.
LEASES
About 13 percent of City-owned parcels are under an active lease.
Page 61
City of Kenai Land Management Plan 5
LANDS INVENTORY
This section contains a comprehensive list of all parcels owned by the City of Kenai and data about each
parcel. The inventory will provide the input for land management decisions by the City. The following
fields have been populated for each parcel when they are applicable and the data is available:
• Parcel Number: The assigned to the parcel by the Kenai Peninsula Borough
• Address: If available, the physical address of the parcel
• Fund: Denotes whether the parcel is within the City’s Airport Fund or General Fund
• Facility: If applicable, lists any existing City facilities on the parcel
• Map Thumbnail: Small map showing the aerial imagery for the parcel
• Legal Description: Land description location of the written words delineating real property
• Township/Range/Section: Refers to terms used in the Public Lands Survey System
• Size: Given in acres and square feet
• KPB Assessed Value: Kenai Peninsula Borough assessed value for current year taxes
• Zoning District: Gives the City of Kenai zoning district for the parcel
• Land Use Plan Classification: City of Kenai land use plan classification category for the parcel
• Summary Recommendation: This field gives the staff recommendation for the parcel and is the
categorical basis for sorting parcels in the report
• Detailed Description: In-depth description of the parcels, including its physical features and
development considerations
• Detailed Recommendation: In-depth analysis and consideration of the best use for the parcel
Parcels have been placed into the following categories based on the Summary Recommendation:
• Retain - Existing Public Facilities: A parcel with a public facility, typically a park or building
• Retain - Public Purpose: A vacant parcel to be retained for a public purpose
• Available for Lease or Sale: Parcel available for lease or to be purchased from the City
• Available for Lease: Parcels available for lease from the City
• Unavailable – Under Active Lease: Parcels with lessees in active lease agreements with the City
• Tidelands: Parcels with leases of tidelands for shore fisheries
• Parcels for Further Study: Parcels where further research or action is needed before a decision
to retain or dispose of the parcel may be made
Page 62
City of Kenai Land Management Plan 6
RETAIN - EXISTING PUBLIC FACILITIES
Parcel Number:
04701008
200 Spruce Street South
General Fund
Facility: Kenai Municipal Park, Little League Fields
Legal Description: Govt Lots 41-43, 60, 62-66, 83-
90, 105-112, 124-126, 133-135, 149-151, 159-161,
164-166 Excl that portion described as: S 0 deg 13
min E 77.88 ft & S 86 deg 5 min E 35.09 ft from N
1/4 corner Section 6 T5N R11W
Township/Range/Section: 6N, 12W, Section 25
Size: 72.21 acres (3,145,468 square feet)
2018 KPB Assessed Value: $7,980,500
Zoning District: Conservation (C)
Land Use Plan Classification: Parks, Recreation, &
Open Space, Institutional
Summary Recommendation:
Retain for a Public Purpose
Detailed Description: 33 separate Government Lots with portions of 7 additional lots make up this 45+ acre
parcel. A large swale is located in the center and lower east side of the parcel, with steep high bluffs on each
side. The drainage running through this swale (Richka Creek) drains from a large wetland complex to the north
and empties into Cook Inlet. The city wastewater treatment plant and its parking area is partially located on
Government Lots 164-166 of this parcel. The little league fields are substantially located on Government Lots
64, 84-89, 106-111, 125, 126. The community park facilities appear to span the upland portions of the remaining
lots. A small portion of the little league field development appears to encroach onto parcel 04701028, owned
by KPCCC Group Inc. The wastewater treatment plant encroaches into the 35-foot wide public ROW along the
west boundary. This ROW was dedicated to the public by document from the City in 1968 (Misc 30/154). It may
also encroach onto parcel 04701027, owned by Vern Lofstedt. The parking area extends into Government Lots
168, 169, 170, 171 in parcel 04701025, also city owned. Portions of Government Lots 43, 60, 66, 83 and 90 were
deeded to the State of Alaska Military Dept by the city in 1968, the location of the National Guard Armory.
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City of Kenai Land Management Plan 7
Parcel Number:
04701008
Detailed Recommendation: The Government Lots have been combined under one parcel number for ease of
assessing, although the government lots remain separate lots until they are replatted. This may be of use at
some point in a lease description or development of the property or if the city needs or wants to obtain new
parcel numbers. Three separate developments are located on the parcel and separation of the parcel into new
parcels with the individual government lots that contain those facilities, with the assignment of new separate
parcel numbers, would make inventory and management of the lands easier. The facilities on the parcel are
managed by two different city departments. Retention of the land contained in the multi-lot parcel is
recommended to control and maintain the drainage and to support the existing city development on the parcel.
An as-built of all development is also recommended, and vacation of the portion of S Forest Drive ROW
containing the encroachment should be pursued. This portion of the ROW would not support construction of a
road for vehicular traffic due to steep terrain. If the as-built shows encroachments into any surrounding private
parcels, those should be resolved with easements or other means. It should be verified that all uses of the parcel
comply with the zoning.
Page 64
City of Kenai Land Management Plan 8
RETAIN - PUBLIC PURPOSE
AVAILABLE FOR LEASE OR SALE
AVAILABLE FOR LEASE ONLY
Parcel Number:
04322008
235 Trading Bay Road
Airport Fund
Legal Description: Lot 8, Block 2, Cook Inlet
Industrial AirPark Subd
Township/Range/Section: 6N, 11W, Section 32
Size: 1.21 acres (52,708 square feet)
2018 KPB Assessed Value: $128,900
Zoning District: Central Mixed Use (CMU)
Land Use Plan Classification: Central Commercial
Summary Recommendation:
Available for Lease Only
Detailed Description: This is a 1.21 acre parcel created by a 1966 subdivision. A deed of release was recorded in
1973, allowing the lease or sale of the lots for other than airport purposes. The parcel is now located in the
Airport Reserve, and is available for lease, not sale. Improvements to the infrastructure in the subdivision (water,
sewer, pavement, sidewalks, etc) were funded by the US Department of Commerce in 1973, with a requirement
that the city retain ownership of the improvements for 30 years. Funds generated by lease go to the airport fund.
The parcel is surrounded by privately owned lands, most of which are developed. The parcel was one of three
that were leased to Sea-Land Freight Service, Inc in 1975 for one year; the amended purpose was for 'terminal
facilities, warehousing, storage and other related activities inherent in the operation of a transportation facility'.
It appears that the parcel was never developed. In 1978, a 99-year lease was issued for the same three lots (6, 7,
8 Block 2) to Gerald Browning and Glen Henry for 'diesel and automotive repair and parts sales'. The required
development proved to be economically unfeasible and at the request of the lessees, the lease was rescinded in
1980. A 99 year lease for Lot 8 Block 2 was granted to Julie Latta in 2002 to be developed to 'provide additional
lodging facilities for the proposed Kenai Airport Lodge'. Two amendments were granted to extend the
completion date for required construction; the parcel was not developed and a mutual rescission of the lease
was recorded in 2007.
Page 65
City of Kenai Land Management Plan 9
Detailed Recommendation: This parcel's central location, along with the city services and the close proximity to
the airport, make it attractive for lease. Costs for development of the lot should be fairly reasonable - it is level
with no wetlands and is easily accessible. If any site development was undertaken in association with the
previous leases, that could further enhance the lot's attraction. City services and paved access are already in
place.
UNAVAILABLE - UNDER ACTIVE LEASE
TIDELANDS
PARCELS FOR FURTHER STUDY
Parcel Number:
04301102
12751 Kenai Spur Highway
General Fund
Legal Description: Tract F, Dena’ina Point Estates
Subdivision
Township/Range/Section: 6N, 12W, Section 36
Size: 2.24 acres (97,574 square feet)
2018 KPB Assessed Value: $48,800
Zoning District: Suburban Residential (SR)
Land Use Plan Classification: Mixed Use
Summary Recommendation:
Future Determination for Use
Detailed Description: This 2.24 acre tract fronts on the Kenai Spur Highway. There is a 52 acre private parcel
between this tract and the Inlet. The tract has no bluff frontage and is located approximately 140 feet from the
edge of the bluff. This subdivision of city owned land was contracted by the city in 1984 and created 29 larger
acreage tracts, most of which were intended for resubdivision and development. The city still owns 14 tracts in
the subdivision. Water and sewer service extends along the Kenai Spur Hwy, with two stubouts to the boundary
of the subdivision. The roads in the subdivision are not constructed. None of the lots have been developed, with
the exception of Tract A-5 which was resubdivided, along with adjoining property, into the Augustine Addition.
Page 66
City of Kenai Land Management Plan 10
Detailed Recommendation: A 1984 ordinance retained this tract for public purpose; that restriction was reversed
by a 1987 ordinance which designated the tract suitable for sale. The city owns the long narrow tract to the east,
for a total highway frontage of over 1700 feet. The 52 acre privately owned parcel to the south has no highway
frontage. There is substantial residential development to the east of the adjoining 52 acre private parcel. It may
be beneficial to retain Tract F until the 52 acre private parcel is considered for development - the highway
frontage provided by the city owned lands could be beneficial to an adjoining developer in providing alternate
ingress/egress for any future development. Development of the large private parcel could also affect
development options for the subject parcel. The subject parcel is suitable for sale and development at this time;
retention of the long narrow highway frontage lot for access to the large private parcel could protect future
access issues. The RS zoning may limit or influence development potential, with most commercial development
requiring a conditional use permit.
Page 67
City of Kenai Land Management Plan 11
Parcel Number:
04312003
1397 Kenai Spur Highway
General Fund
Legal Description: Tract A, Five Iron Highs
Subdivision
Township/Range/Section: 6N, 11W, Section 31
Size: 2.5 acres (108,900 square feet)
2018 KPB Assessed Value: $83,800
Zoning District: Conservation (C)
Land Use Plan Classification: Parks, Recreation, &
Open Space
Summary Recommendation:
Retain for a Public Purpose
Detailed Description: This is a 2.5 acre government lot. The large cleared area on Lot 73 adjacent to the north
boundary extends onto this lot. Scott Curtin provided the information that this is one of the city's storm water
detention ponds, serving Forest Avenue and Woodlands Subdivision areas. The pond allows silt and debris to
settle before the water drains into Richka Creek and eventually flows into the Inlet. The settling area is located
at the top of the steep bank that drops off to Richka Creek to the east. A clearing project to remove accumulated
growth is scheduled as maintenance for 2019. Access to the northwest corner of this lot is from Third Avenue, a
half dedication. A steep bank cuts through the middle of the parcel and extends down to Richka Creek in the
easterly portion of the parcel.
Detailed Recommendation: It is recommended that the city retain the entire lot for creek protection and
maintenance. Although the majority of the settling pond is currently located on the lot to the north, expansion
or maintenance of the pond may require additional use of the subject lot. The creek provides drainage from the
large wetland complex to the north. The steep slope down to the creek, along with the creek and its corridor,
occupy approximately 2/3 of the eastern portion of the lot and limit its development potential. If the city decides
to connect the dedications of Cheryl Street and Third Avenue (see Lot 73: 04308008), a portion of the dedication
at the intersection will need to come from this lot.
Page 68
City of Kenai Land Management Plan 12
Parcel Number:
04938215
1100 Lawton Drive
General Fund
Legal Description: Tract A, Five Iron Highs
Subdivision
Township/Range/Section: 5N, 11W, Section 3
Size: 15.48 acres (674,309 square feet)
2018 KPB Assessed Value: $183,900
Zoning District: Recreation (R)
Land Use Plan Classification: Parks, Recreation, &
Open Space
Summary Recommendation:
Retain for a Public Purpose
Detailed Description: This is a 15.5 acre tract resulting from subdivision of portions of 4 government lots. There
is a steep bluff in the southerly portion of the parcel, dropping off to almost 5 acres which is classified freshwater
forested/shrub wetland on the NWI. Use or transfer of the parcel is restricted under a federal grant (LWCF 02-
00119). The parcel is located between the Oilers Ballfield and the golf course, fronting on Lawton Drive
(constructed) and S Tinker Lane (not constructed adjacent to this parcel.
Detailed Recommendation: Retention of the land by the city, or transfer to another public entity with the
recreational use restriction attached, is required by the LWCF funding. It does not appear that this tract was
excluded from that LWCF project area. This restriction should be verified. There may be recreational lease
opportunities for the lot, including winter use associated with the ski trails on the golf course property or summer
use associated with golf course expansion and amenities. With the nearby schools and residential areas, public
park development would also be an option.
Page 69
City of Kenai Land Management Plan 13
IMPLEMENTATION STRATEGY
Short Term (1 Year)
Middle Term (1-3 Years)
Long Term (3+ Years)
Page 70
City of Kenai Land Management Plan 14
REFERENCES
2016 Imagine Kenai 2030 City of Kenai Comprehensive Plan
Page 71
City of Kenai Land Management Plan 15
APPENDIX A. INDEX
Parcel Number City Facility Category Inventory Page
Number
03901065
03902243
03903421
03905203
03905204
03905205
03905322
03905323
03905324
03905325
03905327
03905328
03905329
03905330
03905331
03906141
03906309
03906310
03906311
03907009
03910107
03910109
03910111
03910112
03910208
03910209
03910211
03910304
03910308
03910309
03910310
03910311
03910312
03910321
03910322
03910323
03910324
03911003
Page 72
City of Kenai Land Management Plan 16
Parcel Number City Facility Category Inventory Page
Number
03911009
03911010
03911011
03911012
03911013
03911014
03911015
03911016
03913112
03913113
03913114
03913115
03913117
03913118
03913202
04101004
04101013
04101021
04101022
04101111
04101112
04101113
04101114
04101115
04103009
04103019
04103034
04103040
04103047
04103051
04103059
04106201
04106202
04108003
04108013
04108016
04108018
04108019
04301029
04301033
Page 73
City of Kenai Land Management Plan 17
Parcel Number City Facility Category Inventory Page
Number
04301034
04301038
04301039
04301040
04301041
04301042
04301101
04301102
04301301
04301302
04301401
04301402
04301403
04301404
04301501
04301502
04301503
04301504
04301601
04301701
04301804
04304004
04304011
04304017
04305017
04305035
04308004
04308008
04308009
04310039
04312003
04312004
04312007
04312008
04314009
04314010
04314103
04314104
04315011
04315012
Page 74
City of Kenai Land Management Plan 18
Parcel Number City Facility Category Inventory Page
Number
04315013
04316006
04316008
04316017
04317003
04317037
04317038
04318043
04318044
04322008
04322020
04322021
04322023
04323013
04323014
04323017
04323031
04324002
04324003
04324004
04324005
04324006
04324010
04324011
04324012
04324015
04324016
04324017
04324018
04324019
04324020
04324021
04324024
04324025
04324026
04324027
04324028
04327010
04327014
04327015
Page 75
City of Kenai Land Management Plan 19
Parcel Number City Facility Category Inventory Page
Number
04327019
04327020
04327021
04327028
04327029
04327030
04327031
04327032
04327033
04327034
04327035
04327036
04331022
04331036
04333001
04333006
04333007
04333008
04333009
04333010
04335001
04336001
04336002
04336003
04336004
04336016
04336017
04336018
04336024
04336028
04336029
04336033
04336034
04336035
04336036
04336037
04336038
04336039
04336040
04336043
Page 76
City of Kenai Land Management Plan 20
Parcel Number City Facility Category Inventory Page
Number
04336046
04336047
04336048
04337001
04337002
04337004
04337005
04338001
04338002
04338003
04338004
04339006
04339007
04339026
04339027
04339052
04339053
04339054
04501003
04501022
04501023
04501030
04501031
04501032
04501033
04501034
04501035
04501036
04501037
04501038
04501039
04501040
04501041
04501042
04501043
04501044
04501045
04501046
04501047
04501048
Page 77
City of Kenai Land Management Plan 21
Parcel Number City Facility Category Inventory Page
Number
04501049
04501050
04501051
04501052
04501053
04501054
04501055
04501056
04501057
04506006
04506008
04513025
04521047
04701008 Kenai Municipal Park,
Little League Fields Retain - Public Facilities
04701018
04701019
04701024
04701025
04705101
04705205
04705215
04705216
04705501
04705506
04705510
04705602
04705701
04705805
04705806
04705807
04706119
04706129
04706133
04706134
04707405
04707408
04708101
04708104
04708106
Page 78
City of Kenai Land Management Plan 22
Parcel Number City Facility Category Inventory Page
Number
04708107
04708108
04708109
04708110
04708111
04708201
04708202
04708301
04708305
04708309
04708402
04708405
04708406
04708503
04708504
04708612
04709301
04709302
04709304
04709305
04709307
04710105
04710106
04710301
04710311
04711308
04711309
04711310
04711311
04711312
04711502
04711602
04711901
04711902
04711903
04711907
04716001
04716002
04716005
04901016
Page 79
City of Kenai Land Management Plan 23
Parcel Number City Facility Category Inventory Page
Number
04901017
04901022
04901062
04901121
04901124
04901125
04901130
04901131
04901132
04901403
04901404
04904002
04904029
04904031
04904086
04910014
04910053
04910054
04910105
04910106
04910107
04910108
04911010
04911011
04912065
04916017
04926125
04926126
04926210
04926216
04935006
04937002
04938052
04938215
04938216
04938217
04945002
04945003
04945004
04945005
Page 80
City of Kenai Land Management Plan 24
Parcel Number City Facility Category Inventory Page
Number
04945009
06361018
Page 81
City of Kenai Land Management Plan 25
APPENDIX B. TABLES AND FIGURES
Page 82
City of Kenai Land Management Plan 26
APPENDIX C. PUBLIC MEETINGS
Documentation of public outreach
Page 83
City of Kenai Land Management Plan 27
APPENDIX D. MAPS
Appendix of maps in 11x17 sizes.
Page 84
STAFF REPORT
To: Planning & Zoning Commission
From: Elizabeth Appleby, City Planner
Date: July 19, 2019
Subject: Resolution PZ2019-24 – Preliminary Subdivision Plat – Shoreline Heights Thiele
Replat
Applicant: Kim Thiele
36901 Mallard Road
Kenai, AK 99611
Submitted By: Edge Survey and Design LLC
12501 Old Seward Highway, Suite D
Anchorage, Alaska 99515
Requested Action: Preliminary Subdivision Plat – Shoreline Heights Thiele Replat
Legal Description: Lot 13, Shoreline Heights 2014 Addn. Phase 1
Lot 12, Shoreline Heights 2014 Addn. Phase 1
Property Address: 1521 Pey Drive
1525 Pey Drive
KPB Parcel No: 03914136
03914135
Lot Size: 44,867 square feet (1.03 acres)
44,867 square feet (1.03 acres)
Existing Zoning: Rural Residential (RR)
Current Land Use: Vacant Lots
Land Use Plan: Low Density Residential
Page 85
PZ2019-24 Staff Report Page 2
GENERAL INFORMATION
The applicant, Mr. Kim Thiele, owns Lots 12 and 13, Shoreline Heights 2014 Addition, Phase 1,
and has submitted a plat that would vacate the property lines between the two lots to create one
larger lot. Mr. Thiele wishes to construct a residence on Lot 13, Shoreline Heights 2014 Addition.
The site plan that was submitted with the building permit application disclosed that the proposed
structure extends to the north property line of Lot 13 and would not meet the building set back
requirements. The property owner decided that vacating the property line between Lots 12 and
13 would be the best option to create a larger lot that will accommodate the proposed structure
and meet the setback requirements.
Application, Public Notice, Public Comment
KMC 14.10.010 General under Chapter 14.10 Subdivision Regulations states preliminary plats or
replats must first be submitted to the City for review prior to the submittal of the plat to the Kenai
Peninsula Borough Planning Department. Kenai Municipal Code (KMC) 14.10.060 describes the
process in more detail. The plat will be reviewed first by the City of Kenai Planning and Zoning
Commission and then by the Kenai Peninsula Borough’s Plat Committee and Planning
Commission.
The property owners completed the City of Kenai preliminary plat submittal form. City staff
deemed the application to be complete. The City of Kenai follows Kenai Peninsula Borough Code
20.25.070 and 20.25.080 for preliminary plat submittal requirements.
City staff published notice of the consideration of the plat as part of the agenda for the City of
Kenai Planning and Zoning Commission in the Peninsula Clarion. No public comments have been
received as of July 19, 2019.
ANALYSIS
The parcels are within the Rural Residential (RR) Zone of the City of Kenai. Pursuant to KMC
14.24.010 Minimum lot area requirements, the minimum lot size for a single family dwelling is
20,000 square feet. The proposed Lot 13A, Shoreline Heights Thiele Replat would be
approximately 2.056 acres (approximately 89,734 square feet) and meets the minimum lot size
requirements. The upland acreage is approximately 1.368 acres (approximately 59,590 square
feet) The proposed lot also meets the minimum lot width of ninety (90) feet as specified by KMC
14.24.020 General requirements.
Pey Drive provides access to the proposed lot and is a paved City-maintained street. The right-
of-way for Pey Drive is sixty feet (60’) in width, which meets the minimum width of sixty feet (60’)
pursuant to KMC 14.10.070(b)(2) Subdivision design standards, Street and Alley Width. The
proposed plat does not dedicate any additional rights-of-way. Street names are denoted
accurately on the preliminary plat.
City of Kenai water lines are within the right-of-way of Pey Drive. The property owner will be
required to connect to City water service because existing public water lines are within 200 feet
of the property, pursuant to KMC 17.10 Connection to Public Water System. The property owner
will be required to install a septic system pursuant to the regulations of the Department of
Environmental Conservation (DEC).
Page 86
PZ2019-24 Staff Report Page 3
The easement for utilities is along the front ten feet (10’) of the property line fronting Pey Drive.
An installation agreement is not required.
Based upon the submitted materials and this review, the preliminary plat meets requirements of
KMC Subdivision design standards and KMC 14.10.080 Minimum improvements required under
Chapter 14.10 Subdivision Regulations. City staff recommends a condition of approval for the
property to conform to all federal, State of Alaska, and local regulations.
RECOMMENDATIONS
City staff recommends approval of the preliminary plat of Shoreline Heights Thiele Replat, subject
to the following condition:
1. Further development of the property shall conform to all federal, State of Alaska, and local
regulations.
ATTACHMENTS
1. Resolution No. PZ2019-24
2. Application
3. Site Plan for Proposed Residence
4. Preliminary Plat
5. Map
Page 87
_____________________________________________________________________________________
CITY OF KENAI
PLANNING AND ZONING COMMISSION
RESOLUTION NO. 2019 - 24
A RESOLUTION OF THE PLANNING AND ZONING COMMISSION OF THE CITY OF
KENAI RECOMMENDING THAT SHORELINE HEIGHTS THIELE REPLAT ATTACHED
HERETO AS EXHIBIT “A” BE APPROVED SUBJECT TO THE CONDITIONS OUTLINED
BELOW .
WHEREAS, the City of Kenai received the plat attached as Exhibit A from Edge Survey and
Design, LLC; and,
WHEREAS, the plat meets City Code requirements of the Rural Residential Zone; and,
WHEREAS, the plat accurately represents street names and surrounding properties; and,
WHEREAS, the plat will not change the existing access to the properties; and,
WHEREAS, Pey Drive, which is a paved and City-maintained road, provides access to the
property; and,
WHEREAS, the plat accurately shows utility easements; and,
WHEREAS, City water lines are located within the right-of-way of Pey Drive and the property
owner will be required to connect to City water service; and,
WHEREAS, the property owner will install a private septic system, pursuant to the regulations of
the State of Alaska, Department of Environment Conservation (DEC); and
WHEREAS, an installation agreement is not required.
WHEREAS, the Planning and Zoning Commission finds:
1. Pursuant to Kenai Municipal Code 14.10.070 Subdivision design standards, the plat
conforms to the minimum street widths, an easement is sufficiently provided for utilities,
the proposed lot would be arranged to provide satisfactory and desirable building sites,
and the proposed lot meets standards for connection to City water lines.
2. The property owner will install a private septic system pursuant to the regulations of the
State of Alaska, Department of Environmental Conservation.
3. Pursuant to Kenai Municipal Code 14.10.080 Minimum improvements required, there is
adequate access and facilities available to the proposed parcel. An installation agreement
is not required.
Page 88
Resolution No. PZ2019-24
Page 2 of 2
4. Pursuant to Kenai Municipal Code 14.24.010 Minimum lot area requirements, the lot meet
City standards for minimum lot sizes.
5. Pursuant to Kenai Municipal Code 14.24.020 General Requirements, the lots meet City
standards for minimum lot width, maximum lot coverage, maximum height, and setbacks.
NOW, THEREFORE, BE IT RECOMMENDED BY THE PLANNING AND ZONING COMMISSION
OF THE CITY OF KENAI, ALASKA:
Section 1. That the Shoreline Heights Thiele Replat attached as Exhibit “A” be approved
subject to the following condition:
1. Further development of the property shall conform to all federal, State of Alaska, and local
regulations.
PASSED BY THE PLANNING AND ZONING COMMISSION OF THE CITY OF KENAI, ALASKA,
this 24th day of July, 2019.
JEFF TWAIT, CHAIRPERSON
ATTEST:
______________________________________
JAMIE HEINZ, CITY CLERK
Page 89
EXHIBIT APage 90
Page 91
Page 92
Page 93
Page 94
_____________________________________________________________________________________
CITY OF KENAI
PLANNING AND ZONING COMMISSION
RESOLUTION NO. PZ2019-25
A RESOLUTION OF THE PLANNING AND ZONING COMMISSION OF THE CITY OF KENAI
GRANTING A CONDITIONAL USE PERMIT FOR THE USE OF A GUIDE SERVICE AT 1325
ANGLER DRIVE
APPLICANT: JEFF BRESSLER
PROPERTY ADDRESS: 1325 ANGLER DRIVE
LEGAL DESCRIPTION: LOT 18, BLOCK 1, ANGLERS ACRES SUBDIVISION PART 2
KENAI PENINSULA BOROUGH PARCEL NUMBER: 04939021
WHEREAS, a complete application meeting the requirements of Kenai Municipal Code 14.20.150
was submitted to the City on July 1, 2019; and,
WHEREAS, the applicant has demonstrated with plans and other documents that the
prerequisites of a Conditional Use Permit have been met pursuant to Kenai Municipal Code
14.20.150; and,
WHEREAS, the City of Kenai Planning and Zoning Commission conducted a duly advertised
public hearing on June 24, 2019, following requirements outlined in Kenai Municipal Code
14.20.280 for public hearings and notifications.
WHEREAS, the Planning and Zoning Commission finds:
1. KMC 14.20.150(d)(1) The use is consistent with the purpose of this chapter and the
purposes and intent of the zoning district;
Condition Exists: The subject parcel is within the RR Zone. Pursuant to KMC 14.20.080,
the intent of the zone is for low density residential development in an attractive
residential environment, to prohibit uses which would violate the residential character of
the environment or generate heavy traffic in a predominantly residential area, and to
separate residential structures in order to prevent health hazards and preserve the rural,
open quality of the environment.
Adequate parking is available on the property for the use and the use would not
generate heavy traffic. The applicant notes that he will supervise clients and be mindful
of noise and the privacy of his neighbors. The use will not violate the residential
character of the neighborhood.
2. KMC 14.20.150(d)(2) The value of the adjoining property and neighborhood will not be
significantly impaired;
Page 95
Resolution No. PZ2019-25
Page 2 of 3
Condition Exists: There are similar businesses associated with fishing and tourism in the
neighborhood. Property owners have established similar businesses associated with
fishing and tourism along Angler Drive due to its proximity to the Kenai River and Beaver
Creek. Beaver Creek is to the east of the subject parcel. Private residences are to the
north and south. Across Angler Drive to the west is a vacant lot.
3. KMC 14.20.150(d)(3) The proposed use is in harmony with the Comprehensive Plan;
Condition Exists: The proposed use is in line with goals and objectives identified in the
Comprehensive Plan, including an objective for Goal 2-Economic Development to
capitalize on the tourism industry. This use would not conflict with objectives in Goal 8-
Environmental Resources to protect the Kenai River.
4. KMC 14.20.150(d)(4) Public services and facilities are adequate to serve the proposed
use;
Condition Exists: The properties located along Angler Drive are serviced by well and
septic, natural gas, electricity, and telephone services. The applicant notes a restroom,
electricity, water, and parking already in place to serve guided fishing clients.
5. KMC 14.150(d)(5) The proposed use will not be harmful to the public safety, health or
welfare;
Condition Exists: The use of a guide service will not be harmful to the public safety,
health, or welfare. A fishing guide service was previously operated from this location until
2016 by previous owner and there were not any harmful effects to public safety, health,
or welfare.
6. KMC 14.150(d)(6) Any and all specific conditions deemed necessary by the Commission
to fulfill the above-mentioned conditions should be met by the applicant. These may
include, but are not limited to, measures relative to access, screening, site development,
building design, operation of the use and other similar aspects related to the proposed
use.
Conditions of the conditional use permit are stated in Section 2 of the resolution.
WHEREAS, the applicant has agreed to conditions of the conditional use permit that will protect
public safety health, and welfare, follow the intent of the Rural Residential Zone, and follow City
requirements of the conditional use permits and bed and breakfast establishments.
NOW, THEREFORE, BE IT RESOLVED BY THE PLANNING AND ZONING COMMISSION OF
THE CITY OF KENAI, ALASKA:
Section 1. That a conditional use permit is granted to Jeff Bressler for the use of guide service.
Section 2. That the conditional use permit is subject to the following conditions:
1. Applicant must comply with all federal, State of Alaska, and local regulations.
Page 96
Resolution No. PZ2019-25
Page 3 of 3
2. Applicant shall file an annual report for the Conditional Use Permit as set forth in Kenai
Municipal Code 14.20.155.
3. The applicant will meet with City staff for on-site inspections when requested.
4. If there is a change of use for the above described property a new Conditional Use Permit
must be obtained, pursuant to 14.20.150(i)(5).
5. Pursuant to KMC 14.20.150(i)(2), this permit shall expire automatically upon termination
or interruption of the use for a period of at least one year.
PASSED BY THE PLANNING AND ZONING COMMISSION OF THE CITY OF KENAI, ALASKA,
this 24th day of July, 2019.
JEFF TWAIT, CHAIRPERSON
ATTEST:
______________________________________
JAMIE HEINZ, CMC, CITY CLERK
Page 97
STAFF REPORT
To: Planning & Zoning Commission
From: Elizabeth Appleby, City Planner
Date: July 17, 2019
Subject: Resolution PZ2019-26 – Conditional Use Permit – Transfer of Conditional Use Permit
for Surface Extraction of Natural Resources from the Estate of Mavis Cone, Transferor, to
Colaska, Inc. dba QAP, Transferee
Transferor
(current permit holder):
Estate of Mavis Cone
P.O. Box 498
Soldotna, AK 99669
Transferee: Colaska Inc. dba QAP
240 West 68th Avenue
Anchorage, AK 99518
Requested Action: Transfer of Conditional Use Permit 75-54 - Surface Extraction of
Natural Resources from the Estate of Mavis Cone, Transferor, to
Colaska, Inc. dba QAP, Transferee
KPB Parcel No,
Lot Size,
Property Address,
Legal Description:
Lot size for all five adjacent parcels:
2,824,041 square feet (60 acres)
04911029
• 592,777 square feet (11.64 acres)
• 2817 Beaver Loop Road
• Tract 1, Tundra Rose Subd., according to Plat No. 84-19
04904036
• 216,376 square feet (5 acres)
• 835 Gravel Street
• The West 330 Feet of the South 660 Feet, of Section 2,
T5N, R11W, Seward Meridian
Page 98
PZ2019-26 Staff Report Page 2
04904037
• 437,020 square feet (10 acres)
• 1605 Cone Avenue
• The West 990 Feet of the South 660 Feet Excluding
Therefrom the West 330 feet, of Section 2, T5N, R11 W,
Seward Meridian
04911030
• 371,904 square feet (8.2 acres)
• 2881 Beaver Loop Road
• Tract 2, Tundra Rose Subd., according to Plat No. 84-19
04911031
• 1,205,964 square feet (25.16 acres)
• 3073 Beaver Loop Road
• A Portion of the NW1/4 NW1/4 Lying North of Beaver
Loop Rd., Section 11, T5N, R11W, Seward Meridian,
Excluding Tundra Rose Subd
Existing Zoning: Rural Residential (RR)
Current Land Use: Surface Extraction of Gravel
Land Use Plan: Low Density Residential
GENERAL INFORMATION
The Estate of Mavis Cone holds a conditional use permit to operate a gravel pit that covers five
parcels totaling 60 acres. The City has received an application to transfer the permit to Colaska,
Inc. dba QAP, LLC (QAP). The gravel pit is located with the Rural Residential (RR) Zone of the
City. QAP estimates approximately 600,000 cubic yards of material, not including overburden, to
be extracted from the parcels. Extraction will vary based upon demand for current and future
projects. Operations will be an incremental mining and reclamation procedure.
Application
The transferor, the Estate of Mavis Cone, submitted an applications for a transfer of conditional
use permit application PZ75-54 for surface extraction of natural resources on July 3, 2019. City
staff deemed the application to be complete. Prior to the submission of the application, City staff
met with the transferee, QAP, and conducted a site visit on June 28, 2019.
Public Notice, Public Comment
KMC 14.20.150(b) details application requirements for conditional use permits and KMC
14.20.151 details application requirements for surface extraction. City staff deemed the
application to be complete. City staff published notice of the Planning and Zoning Commission
agenda in the Peninsula Clarion. No public comments have been submitted to the City about the
application as of July 19, 2019.
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PZ2019-26 Staff Report Page 3
ANALYSIS
Kenai Municipal Code 14.20.150(i)(5) and 14.20.157(a) – Transfer of Conditional Use Permit for
Surface Extraction of Natural Resources
Kenai Municipal Code (KMC) 14.20.150(i)(5) states the following on transfers of conditional use
permits:
KMC 14.20.150(i)(5) Transferability. A Conditional Use Permit is not transferable
from one (1) parcel of land to another. Conditional Use Permits may be transferred
from one (1) owner to another for the same use, but if there is a change in use on
the property, a new permit must be obtained.
The following text for KMC 14.20.157(a) is specific to transfers of conditional use permits for
surface extraction:
KMC 14.20.157(a) Amendment or transfer. No Conditional Use Permit issued
hereunder shall be transferred until the proposed transferee has made application
for transfer in writing filed with the administrative official, which application shall
state that he intends to be bound by the plan and statements contained in the
application of the permit holder or shall contain the amendments to the plan his
proposed operation would mandate. The Commission shall approve the
application for transfer and in so doing amend the site plan and statements if such
amendments as are contained in the application for transfer would have been
approved had they been contained in the original application.
Resolution 75-54 does not reference a Planning and Zoning Commission resolution specific to
the parcels and instead references a resolution adopted by the Kenai City Council requesting
the Assembly of the Kenai Peninsula Borough amend Kenai City Code to add sub-sections to
address permits for surface extraction within the City. When Resolution No. 75-74 was passed
on February 4, 1976, only the Assembly of the Kenai Peninsula Borough had the power to
amend the zoning ordinances for the City of Kenai. There is also documentation in the file of an
approval of a conditional use permit for surface extraction by the City of Kenai Planning and
Zoning Commission on June 2, 1975 and a Board of Adjustment hearing on July 16, 1975.
There are no site-specific conditions on the existing permit or any documentation of existing
conditions of the permit in the file.
The City requested QAP, transferee, submit a site plan and narrative of their proposed
operations. The criteria for issuance of a permit for surface extraction of natural resources and
for conditional use permits are reviewed in the analysis of the transfer application in order to
determine appropriate amendments to the permit and to establish a clear plan and statements
of the permit holder of their intended plan for operation.
The transferor, the Estate of Mavis Cone, has remained current on obligations due to the City of
Kenai and the Kenai Peninsula Borough. Annual reports to the City report no extraction on site
for the last three years, the maximum amount of time allowed with no activity before a
conditional use permit for surface extraction may be revoked for inactivity.
Kenai Municipal Code 14.20.154 – Issuance of Permit for Surface Extraction of Natural
Resources
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PZ2019-26 Staff Report Page 4
Criteria for the issuance of conditional use permit applications for surface extraction of natural
resources are outlined in KMC 14.20.154.
• KMC 14.20.154(a)(1) The application is in substantial compliance with the requirements of
this chapter;
Criteria Met: This application is in substantial compliance with the requirements of this
chapter. The applicant has demonstrated the proposed use meets the requirements for
boundaries of the proposed extraction, back slopes, public safety, and the need for gravel
within the City.
• KMC 14.20.154(a)(2) The boundaries of the proposed excavation at its greatest dimensions,
including back slopes, are at least two hundred feet (200') from any road or public right-of-
way and at least one hundred fifty feet (150') from other surrounding property lines, except
that adjoining permitted surface extraction of natural resources sites are not required to
maintain the above one hundred fifty feet (150') excavation between sites;
Criteria Met: Buffers are not required at parcel edges that border other parcels that would be
covered by the permit transfer. The applicant will meet the buffer requirements from adjacent
property lines and City staff has discussed this with the applicant. Where buffers are already
breached by the transferee, the applicant will install a vegetated berm and will not increase
the conformity of the existing natural vegetation.
• KMC 14.20.154(a)(3) The buffer strips between the excavation site and roadways and
property lines contain sufficient natural screening to obscure the entire excavation from sight
of roadways and inhabited areas. If there is not sufficient natural screening, the site plan
must provide for artificial screening;
Criteria Met: With the existing breached buffers and the widening of Beaver Loop Road, the
pit is currently visible through the trees along part of Beaver Loop Road. QAP will install a
six-foot high buffer to screen the extraction from Beaver Loop Road. A fence will block the
entrance. Existing vegetation will be left in place following buffer requirements to sufficiently
screen the pit where the buffers have not already been breached by the transferor.
• KMC 14.20.154(a)(4) The surface extraction is outside of the one percent (1%) annual
chance flood zone (one hundred (100) year floodplain), one-fifth percent (0.2%) annual
chance flood zone (five hundred (500) year floodplain), and high-hazard coastal areas;
Criteria Met: City staff confirmed all five parcels were outside of the one percent (1%) annual
chance flood zone (one hundred (100) year floodplain), one-fifth percent (0.2%) annual
chance flood zone (five hundred (500) year floodplain), and high-hazard coastal areas.
• KMC 14.20.154(a)(5) The site plan provides that back slopes be a minimum of a 2:1 slope,
except for the contiguous working face;
Criteria Met: QAP states that slopes will graded to a 2:1 slope or the natural stabilized angle
of repose of the existing earth materials. QAP also notes that slopes will be stabilized and
protected against erosion.
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PZ2019-26 Staff Report Page 5
• KMC 14.20.154(a)(6) The site plan does not provide for excavation below the water table
except where a reasonable method of drainage is available at the particular site or where the
proposed future development plan provides for a lake on the site of the excavation;
Criteria Met: Extraction will be below the water table and go as deep as 15 to 20 feet. This
extraction will result in a lake on the site to eventually be surrounded by residences. The
Alaska Department of Environmental Conservation (ADEC) regulates water quality and air
quality. The Alaska Department of Fish and Game (ADF&G) regulates anadromous salmon
habitat. QAP references their intent to abide by federal, state, and borough statutes in
addition to City of Kenai statutes. City staff recommends this be a condition of the permit and
recommended some additional conditions to protect water quality, such as storing
construction waste away from water and ensuring no passage of anadromous fish into the
lake to be formed by the extraction.
• KMC 14.20.154(a)(7) If the excavation is to be below the water table and the site is likely to
endanger the public safety, the site plan shall provide for fencing of the work area;
Criteria Met: The existing driveway leading to the current excavation would be extended as
necessary to reach the new excavation. Access will be from Beaver Loop Road. Gates
leading to the site will be locked to deter unwanted access. The proposed berm and fence
along Beaver Loop Road will deter accidental casual access into the property. Adjacent
properties are mostly other gravel pits or vacant lots.
• KMC 14.20.154(a)(8) The proposed use of land after extraction is completed is feasible and
realistic and is a use permitted in the zone in which the property is located;
Criteria Met: The proposed long-term use of the site is for residential use. This matches the
plan of most of the other gravel pits along Beaver Loop Road. QAP also mentions the
potential for a campground around the lake. Potential commercial and residential
development would be approved and reviewed by the City prior to implementation.
• KMC 14.20.154(a)(9) The extraction does not destroy the land for the purposes for which it
is zoned;
Criteria Met: City staff discussed the importance of ensuring a clean water supply in the City
and the applicant will take measures to monitor water levels and be mindful of what is
allowed near water and sensitive areas of the landscape. QAP notes equipment and
construction debris will not be disposed of in surface water. QAP will seed slopes with plants
suitable for Alaska conditions and will limit erosion and dust that could affect the landscape.
• KMC 14.20.154(a)(10) The need for the particular natural resource within the City of Kenai
outweighs any detrimental effects the operation may have on surrounding property owners;
Criteria Met: The applicant will sell some of the gravel for road projects within the City of
Kenai. There are very few surrounding property owners and the benefit of a local gravel
source from this location outweighs any potential detrimental effects.
• KMC 14.20.154(a)(11) The applicant is the owner of the subject property.
Criteria Met: The Estate of Mavis Cone submitted a copy of the Agreement to Purchase with
QAP. The document states the closing is to be on or before July 31, 2019. City staff
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PZ2019-26 Staff Report Page 6
recommends a condition of the permit be that documentation of the final sale be submitted
before the permit will be issued to the QAP.
• KMC 14.20.154(a)(12) Clearing limits shall be delineated on the site plan as well as clearly
visible on site and shall be inspected by the City Planner or designee prior to the application
being deemed complete.
Criteria Met: City staff conducted a site visit on June 28, 2019. Buffers were discussed with
the applicant. A six-foot vegetated berm is denoted on the site plan where buffers have
already been breached. Existing vegetation will be left in place following buffer requirements
where clearing limits have not already been breached.
Kenai Municipal Code 14.20.150(d) – Review Criteria for Conditional Use Permits
The requirements of KMC 14.20.154 are specific to conditional use permits for surface
extraction of natural resources. KMC 14.20.150 contains requirements that apply to the
evaluation of all conditional use permits. The requirements of KMC 14.20.150 are reviewed as
follows:
• KMC 14.20.150(d)(1) The use is consistent with the purpose of this chapter and the
purposes and intent of the zoning district;
Criteria Met: The property under consideration is within the Rural Residential (RR) Zone.
Pursuant to KMC 14.20.080, the intent of the zone is for low density residential development
in an attractive residential environment, to prohibit uses which would violate the residential
character of the environment or generate heavy traffic in a predominantly residential area,
and to separate residential structures in order to prevent health hazards and preserve the
rural, open quality of the environment. Surface extraction is a permitted use and can be
consistent with the intent of the residential zone. The proposed extraction is adjacent to an
existing permitted gravel pit and vacant lots. It would not change the character of the
neighborhood. This use is consistent with the purposes and intent of the RR Zone.
• KMC 14.20.150(d)(2) The value of the adjoining property and neighborhood will not be
significantly impaired;
Criteria Met: Adjacent parcels are mostly parcels used to surface extraction and vacant lots.
In order to limit disturbance in the neighborhood, QAP generally work between 7:00am and
10:00pm, except in cases of high demand mostly in summer months. QAP will not use
compression release engine brakes (Jake brakes) and may use proximity alarms to reduce
noise from backing vehicles.
• KMC 14.20.150(d)(3) The proposed use is in harmony with the Comprehensive Plan;
Criteria Met: The 2016 Imagine Kenai 2030 Comprehensive Plan notes on p. 74 that, areas
off of Beaver Loop Road has been a conditional use to obtain economically advantageous
local sources of gravel and fill, but that there is potential for conflict between surface
extraction and residential uses. The location of this pit minimizes the potential for conflict with
neighbors and fits with the pattern of land use along Beaver Loop Road in the City. The
surface extraction will support Goals 2 and 3 for economic development and land use that
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PZ2019-26 Staff Report Page 7
support the fiscal health of Kenai and implement a forward-looking approach to community
growth.
• KMC 14.20.150(d)(4) Public services and facilities are adequate to serve the proposed use;
Criteria Met: There is an existing driveway from Beaver Loop Road leading into the parcels.
Cone Avenue provides access at the eastern boundary of the parcel. Equipment will be
mobile and structure needs will be temporary and serviced with portable toilets.
• KMC 14.150(d)(5) The proposed use will not be harmful to the public safety, health or
welfare;
Criteria Met: The applicant notes adequate barriers and screening. The extraction will not be
a safety concern or visual impairment. The applicants has plans for reclamation and will be
careful about materials stored near water and maintaining separation from any anadromous
water bodies.
• KMC 14.150(d)(6) Any and all specific conditions deemed necessary by the Commission to
fulfill the above-mentioned conditions should be met by the applicant. These may include, but
are not limited to, measures relative to access, screening, site development, building design,
operation of the use and other similar aspects related to the proposed use.
Criteria Met: Recommended conditions are stated at the end of the report.
RECOMMENDATIONS
Staff recommends the Planning and Zoning Commission approve the applications for a
conditional use permit for surface extraction of natural resources, subject to the following
conditions:
1. Transferee must comply with all federal, State of Alaska, and local regulations.
2. The transferee will properly store fuel oil and hazardous materials away from wetlands
or other sensitive areas of the landscape.
3. The transferee will not store fill materials, such as concrete and construction waste, in
or near areas with an exposed water table.
4. The transferee will block fish passage between water areas if necessary to avoid
violating regulations pertaining to anadromous streams and fish habitat.
5. The transferee will limit noise disturbances and not use compression release engine
brakes (Jake brakes).
6. The transferee will ensure the gate that can be used to block access from Beaver Loop
Road or any other access point will be kept in working order.
7. A vegetated buffer of a minimum of six foot high will be constructed along Beaver Loop
Road.
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PZ2019-26 Staff Report Page 8
8. The transferee will not extend the nonconformity of breached buffers and install
fences/berms where necessary to remedy visual disturbances. The transferee will
conform to current extraction setbacks where possible on the parcels.
9. Transferee shall file an annual report for the Conditional Use Permit as set forth in
Kenai Municipal Code 14.20.155.
10. The transferee will meet with City staff for on-site inspections when requested.
11. If there is a change of use for the above described property a new Conditional Use
Permit must be obtained, pursuant to 14.20.150(i)(5).
ATTACHMENTS
A. Resolution No. PZ2019-26
B. Application
C. Map
Page 105
Resolution PZ2019-17
Page 1 of 6
CITY OF KENAI
PLANNING AND ZONING COMMISSION
RESOLUTION NO. PZ2019-26
A RESOLUTION OF THE PLANNING AND ZONING COMMISSION OF THE CITY OF KENAI
GRANTING A REQUEST FOR A TRANSFER OF CONDITIONAL USE PERMIT FOR
SURFACE EXTRACTION OF NATURAL RESOURCES:
TRANSFEREE: COLASKA INC. DBA QAP
USE: SURFACE EXTRACTION OF NATURAL RESOURCES
KENAI PENINSULA BOROUGH PARCEL NUMBERS: 04911029, 04904036, 04904037,
04911030, 04911031
WHEREAS, a complete application meeting the requirements of Kenai Municipal Code
14.20.150 and 14.20.151 was submitted to the City on July 3, 2019; and,
WHEREAS, the application affects land zoned as Rural Residential; and,
WHEREAS, the City of Kenai Planning and Zoning Commission conducted a duly advertised
public hearing on July 24, 2019, following requirements outlined in Kenai Municipal Code
14.20.280 for public hearings and notifications.
WHEREAS, the Planning and Zoning Commission finds:
1. The applicant meets criteria for surface extraction in KMC 14.20.154(a)(1) The application is
in substantial compliance with the requirements of this chapter;
Criteria Met: This application is in substantial compliance with the requirements of this
chapter. The applicant has demonstrated the proposed use meets the requirements for
boundaries of the proposed extraction, back slopes, public safety, and the need for gravel
within the City.
2. The applicant meets criteria for surface extraction in KMC 14.20.154(a)(2) The boundaries of
the proposed excavation at its greatest dimensions, including back slopes, are at least two
hundred feet (200') from any road or public right-of-way and at least one hundred fifty feet
(150') from other surrounding property lines, except that adjoining permitted surface
extraction of natural resources sites are not required to maintain the above one hundred fifty
feet (150') excavation between sites;
210 Fidalgo Avenue, Kenai, Alaska 99611-7794
Telephone: 907-283-7535 / Fax: 907-283-3014
www.kenai.city
Page 106
Resolution PZ2019-17
Page 2 of 6
Criteria Met: Buffers are not required at parcel edges that border other parcels that would be
covered by the permit transfer. The applicant will meet the buffer requirements from adjacent
property lines and City staff has discussed this with the applicant. Where buffers are already
breached by the transferee, the applicant will install a vegetated berm and will not increase
the conformity of the existing natural vegetation.
3. The applicant meets criteria for surface extraction in KMC 14.20.154(a)(3) The buffer strips
between the excavation site and roadways and property lines contain sufficient natural
screening to obscure the entire excavation from sight of roadways and inhabited areas. If
there is not sufficient natural screening, the site plan must provide for artificial screening;
Criteria Met: The existing parcel is mostly treed. The trees provide sufficient screening to
obscure the entire excavation. City staff confirmed the extraction is not visible from Beaver
Loop Road or Cone Avenue. During a City staff site visit, the operator described how
movable berms of overburden were placed at the northern edge of the current extraction on
Tract B. Similar berms would conceal the proposed extraction on Tract C from view in areas
of the parcel where trees did not provide sufficient screening. The applicant will construct a
vegetated berm buffer of at least six feet high on the north and west boundaries of the
extraction.
Criteria Met: With the existing breached buffers and the widening of Beaver Loop Road, the
pit is currently visible through the trees along part of Beaver Loop Road. QAP will install a
six-foot high buffer to screen the extraction from Beaver Loop Road. A fence will block the
entrance. Existing vegetation will be left in place following buffer requirements to sufficiently
screen the pit where the buffers have not already been breached by the transferor.
4. The applicant meets criteria for surface extraction in KMC 14.20.154(a)(4) The surface
extraction is outside of the one percent (1%) annual chance flood zone (one hundred (100)
year floodplain), one-fifth percent (0.2%) annual chance flood zone (five hundred (500) year
floodplain), and high-hazard coastal areas;
Criteria Met: City staff confirmed all five parcels were outside of the one percent (1%) annual
chance flood zone (one hundred (100) year floodplain), one-fifth percent (0.2%) annual
chance flood zone (five hundred (500) year floodplain), and high-hazard coastal areas.
5. The applicant meets criteria for surface extraction in KMC 14.20.154(a)(5) The site plan
provides that back slopes be a minimum of a 2:1 slope, except for the contiguous working
face;
Criteria Met: QAP states that slopes will graded to a 2:1 slope or the natural stabilized angle
of repose of the existing earth materials. QAP also notes that slopes will be stabilized and
protected against erosion.
6. The applicant meets criteria for surface extraction in KMC 14.20.154(a)(6) The site plan
does not provide for excavation below the water table except where a reasonable method of
drainage is available at the particular site or where the proposed future development plan
provides for a lake on the site of the excavation;
Criteria Met: Extraction will be below the water table and go as deep as 15 to 20 feet. This
extraction will result in a lake on the site to eventually be surrounded by residences. The
Alaska Department of Environmental Conservation (ADEC) regulates water quality and air
Page 107
Resolution PZ2019-17
Page 3 of 6
quality. The Alaska Department of Fish and Game (ADF&G) regulates anadromous salmon
habitat. QAP references their intent to abide by federal, state, and borough statutes in
addition to City of Kenai statutes. City staff recommends this be a condition of the permit and
recommended some additional conditions to protect water quality, such as storing
construction waste away from water and ensuring no passage of anadromous fish into the
lake to be formed by the extraction.
7. The applicant meets criteria for surface extraction in KMC 14.20.154(a)(7) If the excavation
is to be below the water table and the site is likely to endanger the public safety, the site plan
shall provide for fencing of the work area;
Criteria Met: The existing driveway leading to the current excavation would be extended as
necessary to reach the new excavation. Access will be from Beaver Loop Road. Gates
leading to the site will be locked to deter unwanted access. The proposed berm and fence
along Beaver Loop Road will deter accidental casual access into the property. Adjacent
properties are mostly other gravel pits or vacant lots.
8. The applicant meets criteria for surface extraction in KMC 14.20.154(a)(8) The proposed use
of land after extraction is completed is feasible and realistic and is a use permitted in the
zone in which the property is located;
Criteria Met: The proposed long-term use of the site is for residential use. This matches the
plan of most of the other gravel pits along Beaver Loop Road. QAP also mentions the
potential for a campground around the lake. Potential commercial and residential
development would be approved and reviewed by the City prior to implementation.
9. The applicant meets criteria for surface extraction in KMC 14.20.154(a)(9) The extraction
does not destroy the land for the purposes for which it is zoned;
Criteria Met: City staff discussed the importance of ensuring a clean water supply in the City
and the applicant will take measures to monitor water levels and be mindful of what is
allowed near water and sensitive areas of the landscape. QAP notes equipment and
construction debris will not be disposed of in surface water. QAP will seed slopes with plants
suitable for Alaska conditions and will limit erosion and dust that could affect the landscape.
10. The applicant meets criteria for surface extraction in KMC 14.20.154(a)(10) The need for the
particular natural resource within the City of Kenai outweighs any detrimental effects the
operation may have on surrounding property owners;
Criteria Met: The applicant will sell some of the gravel for road projects within the City of
Kenai. There are very few surrounding property owners and the benefit of a local gravel
source from this location outweighs any potential detrimental effects.
11. The applicant meets criteria for surface extraction in KMC 14.20.154(a)(11) The applicant is
the owner of the subject property.
Criteria Met: The Estate of Mavis Cone submitted a copy of the Agreement to Purchase with
QAP. The document states the closing is to be on or before July 31, 2019. City staff
recommends a condition of the permit be that documentation of the final sale be submitted
before the permit will be issued to the QAP.
Page 108
Resolution PZ2019-17
Page 4 of 6
12. The applicant meets criteria for surface extraction in KMC 14.20.154(a)(11) Clearing limits
shall be delineated on the site plan as well as clearly visible on site and shall be inspected by
the City Planner or designee prior to the application being deemed complete.
Criteria Met: City staff conducted a site visit on June 28, 2019. Buffers were discussed with
the applicant. A six-foot vegetated berm is denoted on the site plan where buffers have
already been breached. Existing vegetation will be left in place following buffer requirements
where clearing limits have not already been breached.
13. The applicant meets criteria for conditional use permits in KMC 14.20.150(d)(1) The use is
consistent with the purpose of this chapter and the purposes and intent of the zoning district;
Criteria Met: The property under consideration is within the Rural Residential (RR) Zone.
Pursuant to KMC 14.20.080, the intent of the zone is for low density residential development
in an attractive residential environment, to prohibit uses which would violate the residential
character of the environment or generate heavy traffic in a predominantly residential area,
and to separate residential structures in order to prevent health hazards and preserve the
rural, open quality of the environment. Surface extraction is a permitted use and can be
consistent with the intent of the residential zone. The proposed extraction is adjacent to an
existing permitted gravel pit and vacant lots. It would not change the character of the
neighborhood. This use is consistent with the purposes and intent of the RR Zone.
14. The applicant meets criteria for conditional use permits in KMC 14.20.150(d)(2) The value of
the adjoining property and neighborhood will not be significantly impaired;
Criteria Met: Adjacent parcels are mostly parcels used to surface extraction and vacant lots.
In order to limit disturbance in the neighborhood, QAP generally work between 7:00am and
10:00pm, except in cases of high demand mostly in summer months. QAP will not use
compression release engine brakes (Jake brakes) and may use proximity alarms to reduce
noise from backing vehicles.
15. The applicant meets criteria for conditional use permits in KMC 14.20.150(d)(3) The
proposed use is in harmony with the Comprehensive Plan;
Criteria Met: The 2016 Imagine Kenai 2030 Comprehensive Plan notes on p. 74 that, areas
off of Beaver Loop Road has been a conditional use to obtain economically advantageous
local sources of gravel and fill, but that there is potential for conflict between surface
extraction and residential uses. The location of this pit minimizes the potential for conflict with
neighbors and fits with the pattern of land use along Beaver Loop Road in the City. The
surface extraction will support Goals 2 and 3 for economic development and land use that
support the fiscal health of Kenai and implement a forward-looking approach to community
growth.
16. The applicant meets criteria for conditional use permits in KMC 14.20.150(d)(4) Public
services and facilities are adequate to serve the proposed use;
Criteria Met: There is an existing driveway from Beaver Loop Road leading into the parcels.
Cone Avenue provides access at the eastern boundary of the parcel. Equipment will be
mobile and structure needs will be temporary and serviced with portable toilets.
Page 109
Resolution PZ2019-17
Page 5 of 6
17. The applicant meets criteria for conditional use permits in KMC 14.150(d)(5) The proposed
use will not be harmful to the public safety, health or welfare;
Criteria Met: The applicant notes adequate barriers and screening. The extraction will not be
a safety concern or visual impairment. The applicants has plans for reclamation and will be
careful about materials stored near water and maintaining separation from any anadromous
water bodies.
NOW, THEREFORE, BE IT RESOLVED, BY THE PLANNING AND ZONING COMMISSION
OF THE CITY OF KENAI, ALASKA:
Section 1. That a conditional permit for surface extraction is granted to Peninsula
Commercial Ventures, LLC.
Section 2. That the conditional use permit is subject to the following conditions:
1. Transferee must comply with all federal, State of Alaska, and local regulations.
2. The transferee will properly store fuel oil and hazardous materials away from
wetlands or other sensitive areas of the landscape.
3. The transferee will not store fill materials, such as concrete and construction waste,
in or near areas with an exposed water table.
4. The transferee will block fish passage between water areas if necessary to avoid
violating regulations pertaining to anadromous streams and fish habitat.
5. The transferee will limit noise disturbances and not use compression release engine
brakes (Jake brakes).
6. The transferee will ensure the gate that can be used to block access from Beaver
Loop Road or any other access point will be kept in working order.
7. A vegetated buffer of a minimum of six foot high will be constructed along Beaver
Loop Road.
8. The transferee will not extend the nonconformity of breached buffers and install
fences/berms where necessary to remedy visual disturbances. The transferee will
conform to current extraction setbacks where possible on the parcels.
9. Transferee shall file an annual report for the Conditional Use Permit as set forth in
Kenai Municipal Code 14.20.155.
10. The transferee will meet with City staff for on-site inspections when requested.
11. If there is a change of use for the above described property a new Conditional Use
Permit must be obtained, pursuant to 14.20.150(i)(5).
PASSED BY THE PLANNING AND ZONING COMMISSION OF THE CITY OF KENAI,
ALASKA, this 24th day of JULY, 2019.
Page 110
Resolution PZ2019-17
Page 6 of 6
JEFF TWAIT, CHAIRPERSON
ATTEST:
______________________________________
JAMIE HEINZ, CMC, CITY CLERK
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B E A V E R L O O P R D
CONE AVE HOLLIER STCONE CIRGRAVEL STDEAN ST.325 '
Date: 7/10/2019
The information depicted is for graphic representation only of the best available sources.
The City of Kenai assumes no responsibility for errors on this map.
1 inch equals 375 feet
PZ2019-26 Map
Parcels permitted by PZ75-54 that would be transferred with PZ2019-26
LEGEND
Page 119
Kenai City Council - Regular Meeting Page 1 of 4
July 03, 2019
Kenai City Council - Regular Meeting
July 03, 2019 – 6:00 PM
Kenai City Council Chambers
210 Fidalgo Avenue, Kenai, Alaska
www.kenai.city
ACTION AGENDA
A. CALL TO ORDER
1. Pledge of Allegiance
2. Roll Call
3. Agenda Approval
4. Consent Agenda (Public comment limited to three (3) minutes) per speaker;
thirty (30) minutes aggregated)
*All items listed with an asterisk (*) are considered to be routine and non-controversial
by the council and will be approved by one motion. There will be no separate discussion
of these items unless a council member so requests, in which case the item will be
removed from the consent agenda and considered in its normal sequence on the agenda
as part of the General Orders.
B. SCHEDULED PUBLIC COMMENTS
(Public comment limited to ten (10) minutes per speaker)
C. UNSCHEDULED PUBLIC COMMENTS
(Public comment limited to three (3) minutes per speaker;
thirty (30) minutes aggregated)
D. PUBLIC HEARINGS
1. ADOPTED UNANIMOUSLY AS AMENDED. Resolution No. 2019-45 - Authorizing
a Facility Management Agreement with the Kenai Chamber of Commerce and
Visitor Center, Inc., for the Operation and Management of the Kenai Visitor and
Cultural Center. (Administration) [Clerk's Note: Council May Convene in Executive
Session to Discuss this Agenda Item, a Matter of which the Immediate Knowledge
may have an Adverse Effect Upon the Finances of the City (AS44.62.310(c)(1))]
2. ADOPTED UNANIMOUSLY. Resolution No. 2019-46 - Selecting Divining Point,
LLC, for City of Kenai Tourism and Marketing Services. (Administration)
3. FAILED. Resolution No. 2019-47 - Providing For The Submission To The Qualified
Voters Of The City Of Kenai, At The Regular Election Of October 1, 2019, The
Question Of Amending Article 10, Elections, Of The Charter Of The City Of Kenai
Page 120
Kenai City Council - Regular Meeting Page 2 of 4
July 03, 2019
To Provide Designated Seats For Each Council Position And Allow Qualified Voters
To Vote In An Election For A Candidate For Each Seat. (Council Member
Knackstedt and Vice Mayor Navarre)
4. ADOPTED. Resolution No. 2019-48 - Providing For The Submission To The
Qualified Voters Of The City Of Kenai, At The Regular Election Of October 1, 2019,
The Question Of Amending Section 10-3 Filing, To Remove The Requirement That
Candidates For Mayor And Council Provide A Petition Signed By Twenty Or More
Registered Voters. (Council Member Knackstedt and Vice Mayor Navarre)
5. ADOPTED UNANIMOUSLY. Resolution No. 2019-49 - Providing For The
Submission To The Qualified Voters Of The City Of Kenai, At The Regular Election
Of October 1, 2019, The Question Of Amending Section 10-2 Three-Year Terms –
Election At Large – Nonpartisan Elections, To Provide That The Terms Of Office Of
The Mayor And Other Councilmembers Shall Begin The Monday Following
Certification Of The Election. (Vice Mayor Navarre)
6. ADOPTED UNANIMOUSLY. Resolution No. 2019-50 - Awarding an Agreement
for the Purchase of Security Cameras and Software for the Public Safety Building
Security Camera Project. (Administration)
7. ADOPTED UNANIMOUSLY. Resolution No. 2019-51 - Awarding an Agreement to
Furnish and Deliver Chemicals for the Wastewater Treatment Plant and Water
Treatment Facility. (Administration)
8. ADOPTED UNANIMOUSLY. Resolution No. 2019-52 - Amending its
Comprehensive Schedule of Rates, Charges, and Fees, to Eliminate the Ambulance
Fee for Patient Treatment without Transport. (Administration)
9. ADOPTED UNANIMOUSLY. Resolution No. 2019-53 - Authorizing the City
Manager to Enter into a One-Year Agreement with the City of Soldotna to Provide
Animal Shelter Services for the City of Soldotna at the Kenai Animal
Shelter. (Administration)
E. MINUTES
1. APPROVED BY THE CONSENT AGENDA. *Work Session Summary of June 11,
2019
2. APPROVED BY THE CONSENT AGENDA. *Regular Meeting Minutes of June 19,
2019
F. UNFINISHED BUSINESS
G. NEW BUSINESS
1. APPROVED BY THE CONSENT AGENDA. *Action/Approval - Bills to be Ratified
(Administration)
Page 121
Kenai City Council - Regular Meeting Page 3 of 4
July 03, 2019
2. REMOVED FROM THE AGENDA. *Action/Approval - Purchase Orders Over
$15,000 (Administration)
3. APPROVED UNANIMOUSLY AS PROVIDED IN THE LAYDOWN.
Action/Approval - Approving a Special Use Permit of the Use of the City Dock
Crane. (Administration)
4. DIRECTED THE CITY MANAGER TO BRING BACK AS RESOLUTIONS.
Action/Approval - Delineate Management Authority for Two Properties in the Baron
Park Subdivision. (Administration)
5. TEEA WINGER APPOINTED UNANIMOUSLY. Action/Approval - Confirmation of
Mayoral Nomination to the Parks and Recreation Commission. (Mayor Gabriel)
6. MANAGER’S MEMO WAS CONCURRED WITH. Discussion - City Parks Hours
of Operations for the Protection of City Property, City Resources, and Residential
Neighborhoods. (Administration)
H. COMMISSION / COMMITTEE REPORTS
1. Council on Aging
2. Airport Commission
3. Harbor Commission
4. Parks and Recreation Commission
5. Planning and Zoning Commission
6. Beautification Committee
7. Mini-Grant Steering Committee
I. REPORT OF THE MAYOR
J. ADMINISTRATION REPORTS
1. City Manager
2. City Attorney
3. City Clerk
K. ADDITIONAL PUBLIC COMMENT
1. Citizens Comments (Public comment limited to five (5) minutes per speaker)
2. Council Comments
L. EXECUTIVE SESSION - See item D.1.
M. PENDING ITEMS
N. ADJOURNMENT
O. INFORMATION ITEMS
1. Purchase Orders between $2,500 and $15,000 for Council Review
2. Kenai Watershed Forum Thank you Letter
Page 122
Kenai City Council - Regular Meeting Page 4 of 4
July 03, 2019
The agenda and supporting documents are posted on the City’s website at www.kenai.city.
Copies of resolutions and ordinances are available at the City Clerk’s Office or outside the Council
Chamber prior to the meeting. For additional information, please contact the City Clerk’s Office at
907-283-8231.
Page 123
144 N. Binkley Street, Soldotna, Alaska 99669 (907) 714-2215 (907) 714-2378 Fax
Office of the Borough Clerk
Betty J. Glick Assembly Chambers, Kenai Peninsula Borough George A. Navarre Administration Building
Max J. Best, Planning Director • Charlie Pierce, Borough Mayor
Blair Martin, Chairman – Kalifornsky Beach • Robert Ruffner, Vice Chairman – Kasilof/Clam Gulch
Dr. Rick Foster, Parliamentarian – Southwest Borough • Syverine Abrahamson-Bentz – Anchor Point/Ninilchik
Jeremy Brantley – Sterling • Paulette Bokenko-Carluccio – City of Seldovia • Cindy Ecklund – City of Seward
Robert F. Ernst – Northwest Borough • Diane Fikes – City of Kenai • Virginia Morgan – East Peninsula
Franco Venuti – City of Homer • Paul Whitney – City of Soldotna
Planning Commission Tentative Agenda
July 15, 2019
7:30 p.m.
A. CALL TO ORDER
B. ROLL CALL
C. APPROVAL OF CONSENT AND REGULAR AGENDA
All items marked with an asterisk (*) are consent agenda items. Consent agenda items are considered routine and non-
controversial by the Planning Commission and will be approved by one motion. There will be no separate discussion of
consent agenda items unless a Planning Commissioner so requests in which case the item will be removed from the consent
agenda and considered in its normal sequence on the regular agenda.
If you wish to comment on a consent agenda item or a regular agenda item other than a public hearing, please advise the
recording secretary before the meeting begins, and she will inform the Chairman of your wish to comment.
*1. Time Extension Request
a. Kee’s Tern Subdivision
KPB File 2013-023 [Segesser / Martin]
Location: City of Kenai
*2. Planning Commission Resolutions - None
*3. Plats Granted Administrative Approval
*4. Plats Granted Final Approval (20.10.070) - None
*5. Plat Amendment Request - None
*6. Utility Easement Vacations
a. Vacate a utility easement in the Ridgeway area. Location: Vacate the 15-foot-wide natural
gas easement on Lot C2 Aggregate Subdivision Alaska Auto Country Addition No. Two (Plat
KN 2007-27); within Section 29, Township 5 North, Range 10 West, Seward Meridian, Kenai
Peninsula Borough, Alaska. KPB File 2019-060V. Petitioner: North Star Paving &
Construction, Inc. of Soldotna, AK.
*7. Commissioner Excused Absences
Page 124
Planning Commission Tentative Agenda July 15, 2019
Page 2
a. Vacant, Ridgeway
*8. Minutes
a. June 24, 2019 Planning Commission Minutes
D. PUBLIC COMMENT/PRESENTATIONS/COMMISSIONERS
(Items other than those appearing on the agenda or scheduled for public hearing. Limited to five minutes per
speaker unless previous arrangements are made.)
E. UNFINISHED BUSINESS
F. PUBLIC HEARINGS
1. Resolution SN 19-02; A Street Naming Resolution to Rename Certain Public Rights-of-
Way in the Kalifornsky area. Location: Chimera Court is a public right-of-way named by
plat KN 2018-91; within Section 25, Township 5 North, Range 11 West, Seward Meridian,
Kenai Peninsula Borough, Alaska; within Emergency Service Number (ESN) 302.
Petitioner(s): James Delker, of Soldotna, Alaska
2. PC Resolution 2019-20; A Resolution for a Conditional Land Use Permit for Material
Extraction on a Parcel in the Sterling Area. Applicant / Landowner: Terry L. Smith; Parcel
Number: 063-020-23; Legal Description: Tract A, Halliburton Subdivision, according to
Plat 94-68, Kenai Recording District; Location: 37170 Sterling Hwy; Proposed Land Use:
The applicant wishes to obtain a permit for sand and gravel extraction on a portion of the
parcels listed above.
G. ANADROMOUS WATERS HABITAT PROTECTION DISTRICT (21.18) - None
H. VACATIONS NOT REQUIRING A PUBLIC HEARING - None
I. SPECIAL CONSIDERATIONS
J. SUBDIVISION PLAT PUBLIC HEARINGS
1. The Plat Committee will review 8 preliminary plat.
K. OTHER/NEW BUSINESS
L. ASSEMBLY COMMENTS
M. LEGAL REPRESENTATIVE COMMENTS
N. DIRECTOR'S COMMENTS
Page 125
Planning Commission Tentative Agenda July 15, 2019
Page 3
O. COMMISSIONER COMMENTS
P. PENDING ITEMS FOR FUTURE ACTION
1. Ordinance 2019-__; An Ordinance Amending Kenai Peninsula Borough 2.56.006, Adopting
the 2019 Kenai Peninsula Borough Comprehensive Plan.
Q. ADJOURNMENT
MISCELLANEOUS INFORMATIONAL ITEMS
NO ACTION REQUIRED
NEXT REGULARLY SCHEDULED PLANNING COMMISSION MEETING
The next regularly scheduled Planning Commission meeting will be held Monday, August 12, 2019 in the
Betty J. Glick Assembly Chambers of the Kenai Peninsula Borough George A. Navarre Administration
Building, 144 North Binkley St, Soldotna, Alaska at 7:30 p.m.
ADVISORY PLANNING COMMISSION MEETINGS
NOTE: Advisory planning commission meetings are subject to change. Please verify the meeting date, location, and
time with the advisory planning commission chairperson. Chairperson contact information is on each advisory
planning commission website, which is linked to the Planning Department website.
CONTACT INFORMATION
KENAI PENINSULA BOROUGH PLANNING DEPARTMENT
Phone: 907-714-2215
Phone: toll free within the Borough 1-800-478-4441, extension 2215
Fax: 907-714-2378
e-mail address: planning@kpb.us
website: http://www.kpb.us/planning-dept/planning-home
ADVISORY COMMISSION MEETING LOCATION DATE TIME
Anchor Point Anchor Point Chamber of Commerce August 7, 2019 7:00 p.m.
Cooper Landing Cooper Landing Community Hall August 7, 2019 6:00 p.m.
Funny River TBD TBD TBD
Moose Pass Moose Pass Community Hall TBD 6:30 p.m.
Hope / Sunrise Hope Social Hall TBD 6:00 p.m.
The Kachemak Bay Advisory Planning Commission is inactive at this time.
Page 126
144 N. Binkley Street, Soldotna, Alaska 99669 (907) 714-2215 (907) 714-2378 Fax
Office of the Borough Clerk
Betty J. Glick Assembly Chambers, Kenai Peninsula Borough George A. Navarre Administration Building
Max J. Best, Planning Director • Charlie Pierce, Borough Mayor
Blair Martin, Chairman – Kalifornsky Beach • Robert Ruffner, Vice Chairman – Kasilof/Clam Gulch
Dr. Rick Foster, Parliamentarian – Southwest Borough • Syverine Abrahamson-Bentz – Anchor Point/Ninilchik
Jeremy Brantley – Sterling • Paulette Bokenko-Carluccio – City of Seldovia • Cindy Ecklund – City of Seward
Robert F. Ernst – Northwest Borough • Diane Fikes – City of Kenai • Virginia Morgan – East Peninsula
Franco Venuti – City of Homer • Paul Whitney – City of Soldotna
Planning Commission Work Session
Tentative Agenda
July 15, 2019
4:00 p.m.
A. CALL TO ORDER
B. ROLL CALL
C. STAFF OVERVIEW
1. Ordinance 2019-__; An Ordinance Amending KPB Chapter 21.25, Conditional Land Use
Permits and Amending KPB Chapter 21.29, Material Site Permits.
D. DISCUSSION
E. PLANNING COMMISSION & ASSEMBLY SCHEDULE
F. ADJOURNMENT
CONTACT INFORMATION
KENAI PENINSULA BOROUGH PLANNING DEPARTMENT
Phone: 907-714-2215
Phone: toll free within the Borough 1-800-478-4441, extension 2215
Fax: 907-714-2378
e-mail address: planning@kpb.us
website: http://www.kpb.us/planning-dept/planning-home
Page 127
144 N. Binkley Street, Soldotna, Alaska 99669 (907) 714-2200 (907) 714-2378 Fax
Office of the Borough Clerk
Betty J. Glick Assembly Chambers, Kenai Peninsula Borough George A. Navarre Administration Building
Paulette Bokenko-Carluccio – City of Seldovia • Jeremy Brantley – Sterling
Cindy Ecklund – City of Seward • Franco Venuti – City of Homer • Paul Whitney – City of Soldotna
Alternates: Diane Fikes – City of Kenai
Plat Committee Tentative Agenda
July 15, 2019
6:00 p.m.
A. CALL TO ORDER
B. ROLL CALL
1. Election of Officers
C. APPROVAL OF AGENDA, EXCUSED ABSENCES, AND MINUTES
1. Agenda
2. Member/Alternate Excused Absences
3. Minutes
a. June 24, 2019 Plat Committee Minutes
D. PUBLIC COMMENT
(Items other than those appearing on the agenda or not scheduled for public hearing. Limited to five minutes
per speaker unless previous arrangements are made.)
E. SUBDIVISION PLAT PUBLIC HEARINGS
1. Baringer Subdivision
KPB File 2019-071 [Fineline Surveys, Inc / Baringer]
Location: on North Fork Road and Incline Street; Anchor Point
Anchor Point APC
2. Northern Enterprises No. 3
KPB File 2019-075 [Ability Surveys / Northern Enterprises Boat Yard, Inc., Kenneth and
Roseleen Moore Alaska Community Property Trust]
Location: on Kachemak Drive; City of Homer
3. Alaska State Land Survey No. 2018-28 Rolling Hills Hideaway Subdivision
KPB File 2019-076; [Mullikin Surveys / State of Alaska]
Location: on the Old Sterling Highway; Anchor Point
Anchor Point APC
4. Alaska State Land Survey No. 2018-29 Old Sterling Highway North Subdivision
KPB File 2019-077 [Mullikin Surveys / State of Alaska] Page 128
Plat Committee Tentative Agenda July 15, 2019
Page 2
Location: on the Old Sterling Highway; Anchor Point
Anchor Point APC
5. Gruening Vista 2019 Replat
KPB File 2019-063 [McLane Consulting Group / Spotty Merle LLC]
Location: on Dorothy Drive, off Skyline Drive; Diamond Ridge
Kachemak Bay APC
6. Singing Meadows Webber Addition
KPB File 2019-072 [Segesser Surveys / Webber]
Location: on E Redoubt Avenue and N Lark Street; City of Soldotna
7. Lost Lake Subdivision No. 7 2019 Replat
KPB File 2019-074 [Segesser Surveys / Rough]
Location: on Hayden Berlin Road and Heather Lee Lane; Bear Creek
8. Ten-Mar Ranch 2019 Replat
KPB File 2019-073 [Johnson Surveying / Hinds]
Location: on Country Woods Circle and Clear Haven Circle; Sterling
F. FINAL SUBDIVISION PLAT PUBLIC HEARING - None
G. OTHER / NEW BUSINESS
H. MISCELLANEOUS INFORMATION – NO ACTION REQUIRED
I. ADJOURNMENT
NEXT REGULARLY SCHEDULED MEETING
The next regularly scheduled Plat Committee meeting will be held Monday, August 12, 2019 in the Betty J. Glick
Assembly Chambers of the Kenai Peninsula Borough George A. Navarre Administration Building,
144 North Binkley, Soldotna, Alaska at 5:30 p.m.
PLANNING DEPARTMENT
Phone: 907-714-2215 Fax: 907-714-2378
Phone: toll free within the Borough 1-800-478-4441, extension 2215
e-mail address: planning@kpb.us
web site: http://www.kpb.us/planning-dept/planning-home
Page 129
Planning and Zoning Resolutions -Second Quarter 2019
Amend CUP 201923 Amend Conditional Use Permit PZ18-16 6/26/2019 Approved
Amend KMC 14.20.320 -330 20 1916 Prohibiting Onsite Consumption of Marijuana 5/22/2019 Approved
Amend KMC 14.20.330 201913 KMC 14.20.320 Definitions; 14.20.330 Standards and 14.22.010 La nd Use T 4/24/2019 Approved
.-..hi ....
Conditional Use Permit 201917 Surface Extraction of Natural Resources 6/12/2019 Approved
Home Occupation Permit 201922 Daycare 6/26/2019 Approved
Landscap e/S ite Plan 201915 U-haul storage and rental facility 6/27 /2019 Approved
Landscape/Site Plan 201914 Convert apartments into office space 5/7 /2019 Approved
Landscape/Site Plan 201908 Four Fami ly Dwelling Unit (4-plex) 4/3/2019 Approved
Lands cape/Site Plan 201905 Fun Center 4/16/2019 Approved
Landscape/Site Plan 201821 L9A, Alyeske Subd. 2018 Replat 4/16/2019 Approved
Transfer Cond itional Use Permit 201919 Hotel, Guide Service and Boa rt Parking 6/12/2019 Approved
Transfer Conditional Use Permit 201918 Hotel (Short Term Rentals) 6/12/2019 Approved
Transfer Conditional Use Permit 201912 Operation of Gravel Pit for Extraction of Natural Resources 4/24/2019 Approved
Wednesday, July 17, 2019 Page 1of1
Page 130
CITY OF KENAI BUILDING PERMITS -SECOND QUARTER 2019
Permit#: Date Parcel# Own er Address Legal Description Comments Valuation RIC
B5444 4/8/2019 Wal-Mart 10096 Kenai Spur Subdivision Baron Park Remove & add electric fixture & $50,000 c
Highway add power to new fixtu res
B5446 4/22/2019 Grizzly Fish Family Trust 230 Iowa Street L 13 B5 Thompson Park Sub Put Existing Structure on a new $6,000 R
foundation -new Elec. & Plumbing
B5447 4/23/2019 RPM's LLC 14096 Kenai Spur Hwy L22A B13 626 Addition $30,000 R
B5449 5/7/2019 Wade Morgan 211 Birch St. L 2 and 3, R I Morgan Subd . 200 sq. ft addition $25,000 R
B5450 5/13/2019 Kenaitze Indian Tribe 1001 Mission Ave. L 1, Toyon Subd. Convert 4000# Apt. space to office $300,000 c
space
B5451 5/14/2019 Augie F. Alto and Mae A. Batt 117 Harbor Ave. L9, B4, Central Heights Subd. Partial rebuld of SFD, F ire Damage $164,000 R
B5452 5/20/2019 Matthew Brott 1516 Toyon Way L51 , B4, Redoubt Terrrace Rework interior stairs and add gas $10,000 R
Subd.Addn. 3 fireplace
B5453 6/13/2019 Nicholas & Shea Barnes 610 Dolchok Lane L 1, B2, Basin View Subd. Part #1392 SFD $170,000 R
3
B5454 6/17/2019 Greg & Terry Davis 785 Ames Road Jack Webb Subd. #1280 Detached Garage $70,658 R
65455 6/25/2019 Carol Freas 609 Maple Drive L5BJ Woodland Sub Part 1 Kitc hen Remodel $30,0 00 R
Wedn esday , July 17, 2 019 Page I of I
Page 131
MEMORANDUM
TO: Planning & Zoning Commission
THROUGH: Elizabeth Appleby, City Planner
FROM: Wilma Anderson, Planning Assistant
DATE: July 24, 2019
SUBJECT: Code Enforcement Action
2019 Second Quarter Report
Planning & Zoning currently has nine active code cases:
Junk Vehicles 3
Junk Vehicles and Debris & Junk 3
Debris & Junk 0
Garbage 0
Building Code Violation 2
Miscellaneous Code Violation 0
Cases transferred to Legal Department/Civil
Penalties being assessed.
0
TOTALS: 8
Code Enforcement Action during the months of April. – June, 2019:
Closed Cases 8
Opened Cases 7
Page 132
STAFF REPORT
To: Planning & Zoning Commission
From: Elizabeth Appleby, City Planner
Date: July 17, 2019
Subject: Resolution PZ2019-25 – Conditional Use Permit – Guide Service
Applicant: Jeff Bressler
P.O. Box 271
Kasilof, AK 99610
Requested Action: Conditional Use Permit – Guide Service
Legal Description: Lot 18, Block 1, Anglers Acres Subdivision Part 2
Property Address: 1325 Angler Drive
KPB Parcel Number: 04939021
Lot Size: 52,272 square feet (1.2 acres)
Existing Zoning: Rural Residential (RR)
Current Land Use: Single Family Dwelling
Land Use Plan: Low Density Residential
GENERAL INFORMATION
The City has received an application for a conditional use permit for a guide service at 1325 Angler
Drive. The subject parcel is located in the Rural Residential (RR) Zone of the City of Kenai. KMC
14.22.010 Land Use Table denotes the land use of Guide Service as a conditional use within the
RR Zone. KMC 14.20.320 Definitions gives the following definition of a guide service:
“Guide Service” means any activity on any premises used for collecting or returning
PZ2019-25 Staff Report Page 2
persons from recreational trips when remuneration is provided for the service.
Application
The conditional use permit for a guide business and short term rentals was granted to the
previous property owner in 2001 and was expired due to inactivity in 2016. The new property
owner has applied for a conditional use permit for a guide business for fishing. He does not
intend to have short term rentals. City staff deemed the application to be complete. There are no
outstanding obligations or issues with the conditional use permit that was issued in prior years
for this property to the previous owner.
Public Notice, Public Comment
KMC 14.20.150(b) details application requirements for conditional use permits and KMC
14.20.151 details application requirements for surface extraction. City staff deemed the
application to be complete and the City is in receipt of the application fee. Pursuant to KMC
14.20.280, Public hearing and notifications, City staff published notice of the public hearing twice
in the Peninsula Clarion, sent notification to real property owners within three-hundred-feet (300’)
of the affected parcel, and notification was posted on the property. No public comments have
been submitted to the City about the application as of July 17, 2019.
ANALYSIS
Kenai Municipal Code 14.20.150(d) – Review Criteria for Conditional Use Permits
Pursuant to KMC 14.20.150(a), the intent of a conditional use permit is to allow some uses that
may be compatible with the designated principal uses in specific zoning districts provided certain
conditions are met. KMC 14.20.150(d) Conditional Use Permits Review Criteria states six
conditions that the Planning and Zoning Commission must deem to exist when establishing
findings prior to issuing a conditional use permit:
• KMC 14.20.150(d)(1) The use is consistent with the purpose of this chapter and the
purposes and intent of the zoning district;
Condition Exists: The subject parcel is within the RR Zone. Pursuant to KMC 14.20.080, the
intent of the zone is for low density residential development in an attractive residential
environment, to prohibit uses which would violate the residential character of the environment
or generate heavy traffic in a predominantly residential area, and to separate residential
structures in order to prevent health hazards and preserve the rural, open quality of the
environment.
Adequate parking is available on the property for the use and the use would not generate
heavy traffic. The applicant notes that he will supervise clients and be mindful of noise and
the privacy of his neighbors. The use will not violate the residential character of the
neighborhood.
• KMC 14.20.150(d)(2) The value of the adjoining property and neighborhood will not be
significantly impaired;
Condition Exists: There are similar businesses associated with fishing and tourism in the
neighborhood. Property owners have established similar businesses associated with fishing
PZ2019-25 Staff Report Page 3
and tourism along Angler Drive due to its proximity to the Kenai River and Beaver Creek.
Beaver Creek is to the east of the subject parcel. Private residences are to the north and
south. Across Angler Drive to the west is a vacant lot.
• KMC 14.20.150(d)(3) The proposed use is in harmony with the Comprehensive Plan;
Condition Exists: The proposed use is in line with goals and objectives identified in the
Comprehensive Plan, including an objective for Goal 2-Economic Development to capitalize
on the tourism industry. This use would not conflict with objectives in Goal 8-Environmental
Resources to protect the Kenai River.
• KMC 14.20.150(d)(4) Public services and facilities are adequate to serve the proposed use;
Condition Exists: The properties located along Angler Drive are serviced by well and septic,
natural gas, electricity, and telephone services. The applicant notes a restroom, electricity,
water, and parking already in place to serve guided fishing clients.
• KMC 14.150(d)(5) The proposed use will not be harmful to the public safety, health or
welfare;
Condition Exists: The use of a guide service will not be harmful to the public safety, health, or
welfare. A fishing guide service was previously operated from this location until 2016 by
previous owner and there were not any harmful effects to public safety, health, or welfare.
• KMC 14.150(d)(6) Any and all specific conditions deemed necessary by the Commission to
fulfill the above-mentioned conditions should be met by the applicant. These may include, but
are not limited to, measures relative to access, screening, site development, building design,
operation of the use and other similar aspects related to the proposed use.
Recommended conditions are stated at the end of the report.
RECOMMENDATIONS
City staff find that the applicant meets the criteria for issuance of a Conditional Use Permit as set
forth in subsections (d)(1) through (d)(4) of Kenai Municipal Code 14.20.185, and hereby
recommends that the Planning and Zoning Commission approve the Conditional Use Permit
application, subject to the following conditions:
1. Applicant must comply with all federal, State of Alaska, and local regulations.
2. Applicant shall file an annual report for the Conditional Use Permit as set forth in Kenai
Municipal Code 14.20.155.
3. The applicant will meet with City staff for on-site inspections when requested.
4. If there is a change of use for the above described property a new Conditional Use
Permit must be obtained, pursuant to 14.20.150(i)(5).
5. Pursuant to KMC 14.20.150(i)(2), this permit shall expire automatically upon
PZ2019-25 Staff Report Page 4
termination or interruption of the use for a period of at least one year.
ATTACHMENTS
A. Resolution No. PZ2019-25
B. Application
C. Map
_____________________________________________________________________________________
CITY OF KENAI
PLANNING AND ZONING COMMISSION
RESOLUTION NO. PZ2019-25
A RESOLUTION OF THE PLANNING AND ZONING COMMISSION OF THE CITY OF KENAI
GRANTING A CONDITIONAL USE PERMIT FOR THE USE OF A GUIDE SERVICE AT 1325
ANGLER DRIVE
APPLICANT: JEFF BRESSLER
PROPERTY ADDRESS: 1325 ANGLER DRIVE
LEGAL DESCRIPTION: LOT 18, BLOCK 1, ANGLERS ACRES SUBDIVISION PART 2
KENAI PENINSULA BOROUGH PARCEL NUMBER: 04939021
WHEREAS, a complete application meeting the requirements of Kenai Municipal Code 14.20.150
was submitted to the City on July 1, 2019; and,
WHEREAS, the applicant has demonstrated with plans and other documents that the
prerequisites of a Conditional Use Permit have been met pursuant to Kenai Municipal Code
14.20.150; and,
WHEREAS, the City of Kenai Planning and Zoning Commission conducted a duly advertised
public hearing on June 24, 2019, following requirements outlined in Kenai Municipal Code
14.20.280 for public hearings and notifications.
WHEREAS, the Planning and Zoning Commission finds:
1. KMC 14.20.150(d)(1) The use is consistent with the purpose of this chapter and the
purposes and intent of the zoning district;
Condition Exists: The subject parcel is within the RR Zone. Pursuant to KMC 14.20.080,
the intent of the zone is for low density residential development in an attractive
residential environment, to prohibit uses which would violate the residential character of
the environment or generate heavy traffic in a predominantly residential area, and to
separate residential structures in order to prevent health hazards and preserve the rural,
open quality of the environment.
Adequate parking is available on the property for the use and the use would not
generate heavy traffic. The applicant notes that he will supervise clients and be mindful
of noise and the privacy of his neighbors. The use will not violate the residential
character of the neighborhood.
2. KMC 14.20.150(d)(2) The value of the adjoining property and neighborhood will not be
significantly impaired;
Resolution No. PZ2019-25
Page 2 of 3
Condition Exists: There are similar businesses associated with fishing and tourism in the
neighborhood. Property owners have established similar businesses associated with
fishing and tourism along Angler Drive due to its proximity to the Kenai River and Beaver
Creek. Beaver Creek is to the east of the subject parcel. Private residences are to the
north and south. Across Angler Drive to the west is a vacant lot.
3. KMC 14.20.150(d)(3) The proposed use is in harmony with the Comprehensive Plan;
Condition Exists: The proposed use is in line with goals and objectives identified in the
Comprehensive Plan, including an objective for Goal 2-Economic Development to
capitalize on the tourism industry. This use would not conflict with objectives in Goal 8-
Environmental Resources to protect the Kenai River.
4. KMC 14.20.150(d)(4) Public services and facilities are adequate to serve the proposed
use;
Condition Exists: The properties located along Angler Drive are serviced by well and
septic, natural gas, electricity, and telephone services. The applicant notes a restroom,
electricity, water, and parking already in place to serve guided fishing clients.
5. KMC 14.150(d)(5) The proposed use will not be harmful to the public safety, health or
welfare;
Condition Exists: The use of a guide service will not be harmful to the public safety,
health, or welfare. A fishing guide service was previously operated from this location until
2016 by previous owner and there were not any harmful effects to public safety, health,
or welfare.
6. KMC 14.150(d)(6) Any and all specific conditions deemed necessary by the Commission
to fulfill the above-mentioned conditions should be met by the applicant. These may
include, but are not limited to, measures relative to access, screening, site development,
building design, operation of the use and other similar aspects related to the proposed
use.
Conditions of the conditional use permit are stated in Section 2 of the resolution.
WHEREAS, the applicant has agreed to conditions of the conditional use permit that will protect
public safety health, and welfare, follow the intent of the Rural Residential Zone, and follow City
requirements of the conditional use permits and bed and breakfast establishments.
NOW, THEREFORE, BE IT RESOLVED BY THE PLANNING AND ZONING COMMISSION OF
THE CITY OF KENAI, ALASKA:
Section 1. That a conditional use permit is granted to Jeff Bressler for the use of guide service.
Section 2. That the conditional use permit is subject to the following conditions:
1. Applicant must comply with all federal, State of Alaska, and local regulations.
Resolution No. PZ2019-25
Page 3 of 3
2. Applicant shall file an annual report for the Conditional Use Permit as set forth in Kenai
Municipal Code 14.20.155.
3. The applicant will meet with City staff for on-site inspections when requested.
4. If there is a change of use for the above described property a new Conditional Use Permit
must be obtained, pursuant to 14.20.150(i)(5).
5. Pursuant to KMC 14.20.150(i)(2), this permit shall expire automatically upon termination
or interruption of the use for a period of at least one year.
PASSED BY THE PLANNING AND ZONING COMMISSION OF THE CITY OF KENAI, ALASKA,
this 24th day of July, 2019.
JEFF TWAIT, CHAIRPERSON
ATTEST:
______________________________________
JAMIE HEINZ, CMC, CITY CLERK
ANGLER DRCONE AVE
BEAVER LOOP RDANGLER DR.
430 '
Date: 7/10/2019
The information depicted hereon is for graphic representationonly of the best available sources. The City of Kenai assumes no responsibility for errors on this map.
1 inch equals 500 feet
Parcel No:04939021
Lot 18, Block 1Anglers Acres Subd.Part 2
Map for PZ2019-25