HomeMy WebLinkAboutResolution No. 2019-57CITY OF KENAI
RESOLUTION NO. 2019 - 57
Sponsored by: Administration
A RESOLUTION OF THE COUNCIL OF THE CITY OF KENAI, ALASKA APPROVING THE
EXECUTION OF A LEASE OF AIRPORT RESERVE LANDS USING THE STANDARD LEASE
FORM BETWEEN THE CITY OF KENAI AND SOAR INTERNATIONAL MINISTRIES,
INCORPORATED, FOR THE UNDEVELOPED PORTION OF TRACT A, GENERAL AVIATION
APRON NUMBER TWO.
WHEREAS, on July 1, 2019, SOAR International Ministries, Inc., (SOAR) submitted an application
to lease City owned properties within the Airport Reserve, described as the undeveloped portion
of Tract A, General Aviation Apron Number 2; and,
WHEREAS, SOAR's lease application states plans to construct a hangar facility for aircraft
storage and maintenance; a connecting office facility, an aircraft ramp and tie -down area, and
parking, an investment that gives a lease term of 45 years according to the term table in Kenai
Municipal Code 21.10.080; and,
WHEREAS, the proposed development would be mutually beneficial and would conform with the
Kenai Municipal Code for zoning, Kenai's Comprehensive Plan, the Airport Land Use Plan, Airport
Layout Plan, Federal Aviation Administration regulations, Airport Master Plan, Airport
Improvement Program grant assurances, and Airport operations; and,
WHEREAS, the City of Kenai did not receive a competing lease application within thirty (30) days
of publishing a public notice of the lease application from SOAR; and,
WHEREAS, at their regular meeting on August 14, 2018, the Planning and Zoning Commission
reviewed the lease application and recommended approval by the City Council; and,
WHEREAS, at their regular meeting on August 8, 2018, the Airport Commission reviewed the
lease application and recommended approval by the City Council.
NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA
Section 1: That a Lease of Airport Reserve Lands is approved and the City Manager is
authorized to execute a lease between the City of Kenai, Lessor, and SOAR International
Ministries, Incorporated, Lessee, as follows:
Lot improvements as outlined in lease application from SOAR International
Ministries, Incorporated, including an approximately 120 foot x 180 foot hangar
facility for aircraft storage and maintenance, an approximately 100 foot x 110 foot
connecting office facility, an aircraft ramp and tie -down area, and parking to be
completed within two (2) years of signing the lease;
Resolution No. 2019-57
Page 2 of 2
The evidence must be submitted to the City within 60 days of the completion of the
development and improvements;
The lease term will be 45 years;
Lot developments will prevent unauthorized access to the airfield;
Structures will be built behind the 100 foot building restriction line;
The relocation of the airport perimeter fence will allow aircraft full access to the
proposed aircraft ramp and tie down area;
Paving will be completed up to the existing transient aircraft apron pavement;
SOAR is responsible for all snow removal, and snow may not touch the perimeter
security fence or be piled to a height that would allow access to the airport; and
SOAR will subdivide the property to designate the portion of Tract A, General
Aviation Apron Number Two (2) that it wishes to lease from the City of Kenai as
set forth on Exhibit A attached hereto, and the subdivision will include a 40 -foot
easement for utilities with the cost of the subdivision being shared equally by the
City and SOAR.
Section 2: That this resolution takes effect immediately upon passage.
ADOPTED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, this 21st day of August, 2019.
BRIAN GABRIEL SR., MAYOR
ATTEST:
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Jamie ei , CMC, City Clerk O�
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210 Fidalgo Ave, Kenai, Alaska 99611-7794
Telephone: (907) 283-7535 1 Fax: (907) 283-3014
thecltyof www.kenai.city
KENAI`AL ALASKA
MEMORANDUM
TO: Mayor Brian Gabriel and Kenai City Council
THROUGH: Paul Ostrander, City Manager
FROM: Elizabeth Appleby, City Planner
DATE: August 14, 2019
SUBJECT: Resolution 2019-57
SOAR International Ministries, Incorporated (SOAR) submitted a lease application to develop a
hangar, office, and parking on the undeveloped portion of Tract A, General Aviation Apron No. 2
within the Airport Reserve on July 1, 2019. SOAR had previously submitted an application for the
same parcel for the same use in 2018 that was approved by City Council, but it expired after one
year after no lease was executed and an extension was not granted pursuant to Kenai Municipal
Code 21.10.050 No right of occupancy - Application expiration in May 2019.
The parcel is 5.25 acres fronting the aviation apron. It has street frontage on North Willow and
Granite Point streets. The area adjacent to the taxiway has been developed for airplane parking
and the back half of the lot with the street frontages remains treed and undeveloped. SOAR
proposes to build on the portion of the lot that is currently treed, and would need to subdivide the
lot prior to construction. SOAR is proposing the City share evenly in the cost of the subdivision
required before the parcel may be leased. Kenai Municipal Code 21.10.040(c) states subdivision
costs may be shared in whatever amount the City Council determines is reasonable given benefit
to the Airport if City Council determines the subdivision serves other Airport purposes. City staff
recommends an even split as both SOAR benefits and the City benefits from the creation of a
more desirable parcel for lease. SOAR is current on rent payments for existing leases within the
Airport Reserve from the City of Kenai.
SOAR proposes to lease a portion of Tract A, General Aviation Apron No. 2 for an aeronautical
use. SOAR proposes to construct an approximately 120 foot x 180 foot hangar for aircraft storage
and maintenance. There would also be a connecting office facility of approximately 100 -foot x
110 -foot, an aircraft ramp and tie -down area, and parking. Possible activities noted on SOAR's
lease application include flight training, aircraft parts sales, aviation safety meetings, community
meetings, and storage of aircraft floats. SOAR requested a lease term of 55 years to start on
September 1, 2019, however, the maximum term of a lease allowed under KMC 21.10.080 is 45
Page 2 of 2
Resolution 2019-57 - Airport Reserve Lease Application
years. In addition, with timing of Commission and Council meetings and the 30 -day waiting period
to allow for a competitive lease process to accept other lease applications, the lease may not
reasonably start until mid-September 2019. SOAR would need to ensure the fence encompassing
its development met Airport safety and security standards.
Pursuant to Kenai Municipal Code 21.10.060 Lease application review, notice of the new lease
application was posted in the Peninsula Clarion and stated competing applications may be
submitted for the parcel within 30 -days to the City. The 30 -day window from publication ended on
August 3, 2019, and no competing applications were submitted to the City.
The parcel is within the Airport Light Industrial (ALI) Zone. Pursuant to KMC 14.20.065, the
purpose of the ALI Zone is to protect the viability of the Kenai Municipal Airport as a significant
resource to the community by encouraging compatible land uses and reducing hazards that may
endanger the lives and property of the public and aviation users. The proposed aeronautical use
by SOAR is a permitted and compatible use in the ALI Zone.
The Imagine Kenai 2030 Comprehensive Plan outlines goals, objectives, and action items for the
City, including this one pertaining to the Kenai Municipal Airport:
• Objective T-1: Support future development near or adjacent to the airport when such
development is in alignment with the Kenai Municipal Airport's primary mission, "To be the
commercial air transportation gateway to the Kenai Peninsula Borough and Cook Inlet."
The proposed use by SOAR complies with the Imagine Kenai 2030 Comprehensive Plan in that
it supports development on lease lots and the development is in alignment with the Kenai
Municipal Airport's marketing strategy.
The Airport Land Use Plan was developed to identify the highest and best uses of Kenai Municipal
Airport land. The Airport Land Use Plan discusses leasing land and enhancing opportunities for
local economic development. The proposed use by SOAR complies with the Airport Land Use
Plan. It would enhance local economic development.
The Airport Commission and Airport Manager recommended approval of the lease application
during their meeting on August 8, 2019, as they found it complied with the Airport Land Use Plan,
Airport Layout Plan, Federal Aviation Administration regulations, Airport Master Plan, Airport
Improvement Program grant assurances, and Airport operations. The Planning and Zoning
Commission recommended approval during their meeting on August 14, 2019.
Thank you for your consideration
J
Municipal Airport
Memo
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305 N. VVILLOW ST. SUITE 200 KENAI, ALASKA 99611
TELEPHONE 907.2837951
FAX 907-2833737
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To: Elizabeth Appleby — City Planner'
Wilma Anderson — Assistant to ty Plan e
From: Mary Bondurant - Airport Manag Y
Date: August 9, 2019
Subject: SOAR Lease Application — Tract A General Aviation Apron No. 2
Airport Commission reviewed the lease application from SOAR International Ministries at the August
8, 2019 Commission meeting.
Airport Commission unanimously recommends Council approve the subject lease.
If you have any questions, please contact me.
Cc: Wilma Anderson
www.kenaiairport.com
City of Kenai
Kenai Municipal Airport
Application for:
Land Lease Application
0New Lease
�"ry
Axa, ALASKA
❑Amendment
❑ Extension/Renewal
NIZ
Application Date: July-1—,2019
Applicant
Name of Applicant: Richard Page
Mailing Address:
34225 Page street
City:
Y
Soldotna
Alaska 9966
State: Zip Code:
Phone Number(s):
Home Phone: ( 907) 252-1841 Cell
Work/ Message Phone: ( 9J7) 283-1961
s
E-mail: (Optional)
RichardPage@soarinternational.org
Name to Appear on Lease:
SOAR International Ministries
Mailing Address:
P.O. Box 1714
City:
Kenai
State:
Alaska
Zip Code:
99611
Phone Number(s):
Home Phone: ( 9o7) 252-1841 Cell
Work/ Message Phone: ( 9o7) 283-1961
E-mail: (Optional)
Type of Applicant: ❑Individual (at least 18 years of age) []Partnership
❑✓ Corporation
❑Limited Liability Company (LLC) []Government
❑Other
PropertyDescription of
Legal Description of Property:
Undeveloped portion of General Aviation Subdivision
#2 Tract A
Does the Property Require Subdivision? (if Yes, answer next two questions)
RI
YES
❑
NO
Are you prepared to be responsible for all costs associated with subdivision?
YES
[�J
NO
❑
Do you believe the proposed subdivision would serve other Airport purposes?
Z
YES
❑
NO
Do you have or have you ever had a lease with the City of Kenai?
[:]NO
RIYES
If Yes, please provide description of property leased (e.g. legal or physical description):
Is this application for renewal or term extension of an existing lease?
❑ YES RINO
If Yes, please provide a description of the property (eased:
Lease Term Requested:
•aa`Years ";, Starting Date:
September 1, 2019
Proposed Use and Activities
Proposed Use (check one): [!d
Aeronautical ❑Non-Aeronautical
Do you plan to construct new or additional improvements?
V YES ❑NO
Will the proposed improvement char or alter the use under an existing lea: ❑ YES [V—JNO
If yes, what is the new proposed use?
What is the type (e.g. building, land) and nature (e.g. maintenance, new construction) of the proposed improvement?
New office and hangar facility for SOAR International Ministries and additional hangar facility to accommodate transient
corporate aircraft. Potential FRO and flight training facility.
What is the estimated amount of investment in the construction of new permanent improvements on the premises?
The complete project is estimated to cost 3.5 million dollars.
List of proposed use and business activities:
Base of operations for SOAR International Ministries. Aircraft storage and maintenance, hangaring transient aircraft, potential
FBO, potential flight training facility, potential aircraft parts sales, installation, removal, and inside storage of aircraft floats,
facility to host community events such as aviation safety meetings, community fundraising events, etc.
Lease Extension or Renewal*
Method to determine value of improvements/term for a lease renewal or expiring lease:
Professional estimate of the remaining useful life of the principle improvement on the property
Ft—/]Market value appraisal of the principle improvement on the property
Purchase price of improvements
Submitting an application for a lease does not give the applicant a right to lease or use the land requested in the application. The application
shall expire twelve (12) months after the date the application has been made if the City and the applicant have not, by that time, entered into a
lease, unless the City Council for good cause grants an extension for a period not to exceed six (6) months. The City has no obligation to
amend, renew or extend a lease and may decline to do so upon making specific findings as to why a lease renewal, extension, or amendment
is not in the best interest of the City
Signature:
Date:
t7l o of
Print Name:
Title:
RECEIVED
CITY OF KENAI
DATE 7'I-1ci
PLANNING DEPART
Elizabeth Appleby
From:
Elizabeth Appleby
Sent:
Monday, July 22, 2019 3:40 PM
To:
'Richard Page'
Cc:
Wilma Anderson
Subject:
Lease Application (new lease)
Good afternoon,
Thanks for dropping off the new assignment request today. I was reviewing your application for the new lease and
noticed you had requested a term of 55 years. The maximum term allowed in City Code is 45 years. I will amend your
application term request to 45 years. Please let me know if you have questions. I think this was just a copy carry-over
from when you had applied to lease this lot in 2018 as the same change was made then to the requested term.
--Elizabeth
Elizabeth Appleby, AICP
City Planner
City of Kenai
210 Fidalgo Avenue
Kenai, AK 99611
(907) 283-8235/phone
eappl eby(a)kenai. city
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