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HomeMy WebLinkAboutResolution No. 2019-55Sponsored by: Administration CITY OF KENAI RESOLU T IO N NO. 2019-55 A RESOLUTION OF THE COUNCIL OF THE CITY OF KENAI , ALASKA, DESIGNATING MANAGEMENT AUTHORITY FOR TRACT 3 , BARON PARK SUBDIVISION TO REFLECT THAT REVENUES AND EX PENSES ASSOCIATED WITH THE PROPERTY ARE ALLOCATED TO THE AIRPORT FUND . WHEREAS , the City of Kenai received a Qu itclaim Deed from the Federal Aviation Administration (FAA) on Decembe r 1, 1962, to nearly 2 ,000 acres of land subject to certain restrictions, including tha t no property shall be used , leased, sold , salvaged , or disposed of for reasons other than for A irport purposes; and , WHEREAS, in 1991 , the FAA e xecuted a Deed of Release for a 40 .329-acre tract, including what is now Tract 3, Baron Park Subdivision, releasing the City from all conditions, reservations , and restrictions of the FAA Deed to permit the long-term lease or sale of the property for non-airport purposes ; and , WHEREAS , in February 1991 , Council approved Ordinance 1413-91 appropriating $212 ,500 from the General Fund to pay the Airport Fund the Fa ir Market Value of an approximately 40-acre tract, Tract A-1 Baron Park Sub . No . 1, including what is now Tract 3 , from the City Airport Fund for Marathon Road street and utility improvements to encourage industrial development in the area ; and, WHEREAS, in May 1991 , the City entered into a lease with the University of Alaska for Tract A- 1, upon which the University constructed substantial improvements for their University of Alaska Fi re Training Facility; and , WHEREAS , in February 2009 , Ordinance 2380-2009 authorized the City Airport Fund to purchase the improvements for $325 ,000 , and by mutual agreement the University and the City decided to terminate the Lease ; and, WHEREAS , in July 201 3, Ordinance 2711-2013 appropriated funds for the constru ction of the new City Shop and maintenance facility on the parcel adjacent to what is now Tract 3 , for all City vehicle and equipment including the equipment of the Kenai Municipal Airport; and, WHEREAS , some of the development on this lot is common with Tract 3, the site of the former University of Alaska Fire Training Facility, and the City Shop uses the access road along the lot line common to Tracts 3 and 4; and, WHEREAS , Tra ct 3, Baron Park Subdivision is no longer subject to FAA deed restrictions that require the property be used for Airport purposes , however, it is in the best interest of the City that this property be managed for the benefit of the Airport; and, Resolution No . 2019-55 Page 2 of 2 WHEREAS, due to the number and nature of improvements on and surrounding the property, spec ifically the investment by the General Fund in street and utility improvements and the Airport Fund in permanent improvements at the Fire Training Fac ility and former UAA Lease Lot, it is in the best interest of the City to designate the management authority for Tract 3 to t he Airport to accurately reflect the Airport 's investment in and responsibility for the property . NOW , THEREFORE , BE IT RESOLVED BY THE COUNCIL OF THE CITY OF KENAI , ALASKA : Secti on 1. That management authority for Tract 3 Baron Park Subdivision is designated to the Airport Fund and revenue , including future sales and associated e xpenses, are allocated to the Airport Fund and Airport Land Sale Permanent Fund as appropriate. Section 2. That th is resolution takes effect immediately upon passage. PASSED BY THE COUNCIL OF THE CITY OF KENAI , ALASKA , this 7th day of August, 2019 . BRIAN GABRIEL, SR., MAYOR ATTEST: ''tftfl~ «1/t/r, a PaJ'~ tt't; «1/t/r, a Fa.tare-11 210 Fidalgo Ave , Kenai , Alaska 99611-7794 Telephone : (907) 283-7535 I Fax: (907) 283-3014 www.kenai .city MEMORANDUM TO: FROM: DATE: SUBJECT: Mayor Brian Gabriel and Kenai City Council Paul Ostrander, City Manager July 25, 2019 Resolution 2019-54 and 2019-55 -Designating Management Authority for Tracts 2 and 3, Baron Park Subdivision At the July 3, 2019 City Council Meeting, the City Council discussed an Action/Approval item to delineate management authority to the Airport Fund for two tracts of land in the Baron Park Subdivision to clarify which City fund is responsible for expenditures associated with said properties and which City Fund will receive revenues from the land and improvements on the properties as well as facilitate a subdivision to preserve public access along the existing constructed road. Resolution 2019-54 and 2019-55 designate management authority for Tracts 2 and 3, respectively. Attached is the June 20, 2019 memo which provides additional detail in support of the resolutions, which will clarify that the Airport Fund is the appropriate fund to pay all expenditures and receive all revenues associated with the properties and improvements on the properties. Your consideration is appreciated. Attachment ''(/;ff qte a1/tlv a PaJ'~ Ct~ a1/tlv a h.tlif'e " 210 Fidalgo Ave , Kenai , Alaska 99611-7794 Telephone: (907) 283-7535 I Fax: (907 ) 283-3014 www.kenai .c ity MEMORANDUM TO : FROM: DATE: SUBJECT: Mayor Brian Gabriel and Kenai City Counci l Paul Ostrander, City Manager June 20 , 2019 Action/ Approval -Baron Park Subdivision Properties The purpose of this memo is to affirmatively delineate management authority for two properties in the Baron Park Subdivision to clarify which City fund is responsible for and receives the benefit from the property and improvements on the property as well as facilitate a subdiv ision to preserve public access along the existing constructed road. The City has discussed properties in the Baron Park Subdivision as it relates to management authority since the property was first proposed to provide land for a future Fire Training Facility site in 1990. The 40-acre tract was undeveloped except for a small observation antennae installed by the National Oceanic and Atmospheric Administration (NOAA) and a small pond . Payment was made from the General Fund to the Airport Fund in the amount of $212 ,500 to transfer Management authority for the land from the Airport Fund to the General Fund in 1991 for Marathon Road street and utility improvements to encourage industrial development in the area as well as facilitate a lease to the University of Alaska for the development of the indoor fire training facility. Since that time, the 40-acre tract has been the subject of multiple subdivisions and development as follows: In 1991, the City entered into a lease with the University of Alaska on what is now Tract 3, but was formerly Tract A-1, an approximately 40-acre parcel. The lease was amended in 1996 to remove approx imately 10 acres to be used to build the Alaska Regional Aircraft Rescue & Fire Training Center. The University constructed substantial improvements on the leased property and by mutual agreement the University and the City terminated the Lease with the City Airport Fund purchasing the improvements on the property. Ordinance 2380-2009 authorized the purchase of the improvements , which included a water launch /recovery training apparatus, Fire Training Burn Building , chain link fencing , gravel pad , utility improvements, a 1,000 square foot modular classroom, modular bathrooms and showers, an 800 square foot garage building, and other items for $325,000. At the time the expenditure was approved by City Council , there was a discussion of repayment to the General Fund of a portion of the Page 2 of 2 Baron Park Subdivision $212,500 which was paid to the Airport Fun d in 1991 for the portion of the property that was returned to Airport management. No repa yment was made nor was the property that was returned to Airport management clearly defined . In 1997, the Alaska Fire Training Facility was built on what is now Tract 2, and Ordinance 1756-97 appropriated Airport Fund and Airport Improvement Program Funds for construction of the facility , which was designed to facilitate hands-on training for fire response personne l in scenarios replicating actual emergencies involving aircraft and structural/industrial settings . The Facility is currently under a Facility Management Agreement with Beacon Occupational Health and Safety Services, which occupies the first floor, and the American National Red Cross utilizes approximately 475 square feet of temporary office space on the second floor. The Airport Fund provides facility repairs and maintenance for the property with the exception of a one-time transfer of $110 ,000 from the General Fund authorized by Ordinance 2296-2008 to fund repairs and maintenance at the facility due to deficits in the Airport Fund . The City and the Kenai Municipal Airport are strongly committed to rehabilitation and infrastructure at the Facility and solicited proposals for engineering, design, and construction services in March 2019 to be funded with FAA funds. The City Council held a work session on January 27, 2010 to discuss the management authority for the Baron Park Subdivision and a return of the University parcel (now Tra ct 3) to the Airport in recognition of the $325,000 paid by the Airport Fund . However, no action was taken as a result of the work session, and the City moved forward with plans to co nstruct a City park around a small pond on the parcel. Daubenspeck Fami ly Park was formall y 'dedicated' in 2012. Ordinance No 2601-2011 appropriated $150,000 from a State of Alaska grant for municipal improvements at Daubenspeck Park . Resolution 2018-52 authorized a portion of the park for the construction and presence of an off-leash dog park. The area encompasses approximately 22 ,500 square feet within Daubenspeck Fami ly Park along the northeast side of the pond. In 2015, the City maintenance shop facility was built on what is now Tract 1. Some of the development on this lot is in common with the lot to the west, Tra ct 3, the site of the University of Alaska Fire Training Facility. When the tracts were re-platted in 2012 into Tracts 1-5 Baron Park 2012 Addition, the improvements purchased by the Airport Fund on former Tract A-1 Baron Park Sub. No 7 were located on both Tra ct 1 and Tract 3. Additionally, the City Shop uses the access road along the lot line common to Tracts 3 and 4 . The 2012 plat dedicated Daubenspeck Circle, providing interior and/or alternate access to all five tracts , but the actual constructed road is a loop, extending past the cul-de-sac bulb back to Marathon Road . A 30- foot utility easement was granted on the plat along that common lot line, running down the center of the travel way and there are water and sewer lines along the road. Due to the number and nature of improvements on and surrounding the properties , specifically the in vestment by the General Fund in street and utility improvements and the Airport Fund in permanent improvements at the Fire Training Facility and former UAA Lease Lot, it is in the best interest of the City to designate the management authority for Tracts 2 and 3 to the Airport. If City Council approves of this action, management authority for Tracts 2 and 3 will accurate ly reflect the Airport's investment in and responsibility for the properties . Additionally, the transfer of authority will resolve the coming led responsibility and benefit of the properties to associate them with the appropriate fund as well as allow the City to move forward in a subdivision to preserve public access along the existing constructed road to Tract 1. Your consideration is appreciated. Baron Park Subdivision 2012 Addition ~ ~~~/y ~"'"'"1/'f// KENAI, ALASKA 'V/ - 180' I -=i 1 inch equals 208 feet The information depicted here on is for graphic representation only of the best available sources. The City of Kena i assumes no responsibility for errors on this map.