HomeMy WebLinkAboutResolution No. 2020-14Sponsored by : Admin istration
CITY OF KENAI
RESOLUTION NO. 2020 -14
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 SCHILLING RENTALS, LLC, FOR LOT 5A,
BLOCK 1, FBO SUBDIVISION 2018 REPLAT.
WHEREAS, Schilling Rentals , LLC, submitted a complete lease application to the City on
February 13 , 2020 and paid the required application fee ; and ,
WHEREAS , Schilling Rentals , LLC, is eligible for a lease for a term of 45 years based upon an
investment amount of $1,200,000 and pursuant to KMC 21 .10.080-Length of Lease Term ; and,
WHEREAS, Schilling Rentals, LLC, is current on obligations to the City of Kenai for its existing
leases ; and ,
WHEREAS , the lease use will be a hangar for rotor and fixed wing aircraft with crew quarters ;
and ,
WHEREAS , the lease use is compatible with Kenai Municipal Zoning Code for allowed uses within
the Airport Light Industrial (ALI) Zone; and
WHEREAS, the lease use conforms to the 2016 Comprehensive Plan and supports Goal 5 -
Transportation : provide transportation systems that are efficient and adequate to serve the
regional needs of the community; and,
WHEREAS, the use proposed is compatible and conforms w ith 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 30 days of
publishing a public notice of the lease application , pursuant to KMC 21.10.075 -Competing
Applications; and,
WHEREAS , at its regu lar meeting on March 11, 2020 , the Ai rport Commission rev iewed the
lease renewal appl ication submitted by Schilling Rentals , LLC and recommended approval by
the City Council; and ,
WHEREAS , at its regular meeting on March 12, 2020 , the Planning and Zoning Commission
reviewed the lease renewal application submitted by Schilling Rentals , LLC and recommended
approval by the City Council.
Resolution No . 2020-14
Page 2 of 2
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 using the standard lease form between the City of Kenai, Lessor,
and Schilling Rentals , LLC , Lessee, for a term of 45 years for Lot 5A, Block 1, FBO Subdivision
2018 Replat ; and,
Section 2: That this Resolution takes effect immediately upon passage.
PASSED BY THE COUNCIL OF THE CITY OF KENA I, ALASKA, this 18th day of March, 2020.
B RIA N GABR IEL SR., MAYOR
ATIEST:
MEMORANDUM
TO: Mayor Brian Gabriel and Kenai City Council
THROUGH: Paul Ostrander, City Manager
FROM: Elizabeth Appleby, City Planner
DATE: March 2, 2020
SUBJECT: Resolution No. 2020-14 – Execution of a Lease of Airport Reserve Lands
Between the City of Kenai and Schilling Rentals, LLC
_____________________________________________________________________
On February 13, 2020, Schilling Rentals, LLC (Schilling Rentals), submitted an application to the
City for a Lease of Airport Reserve Lands for the property described as Lot 5A, Block 1, FBO
Subdivision 2018 Replat. The property is located at 413 N. Willow Street, Kenai, AK 99611, and
the Kenai Peninsula Borough parcel number is 04336049. The application requests a term of 45
years, with an investment amount of approximately 1.2 million dollars. Pursuant to the term table
in Kenai Municipal Code (KMC) 21.10.080 (b), the City and the applicant are in agreement to a
term of 45 years. Pursuant to Kenai Municipal Code 21.10.075 – Leasing and Acquisition of
Airport Reserve Lands, Competing Applications, the City posted notice of the lease application
and has not received a competing lease application for the parcel.
The applicant states that the use of the premises will be a hangar for rotor and fixed wing aircraft
with crew quarters. After the construction of the hangar is completed, it is expected that Guardian
Flight, LLC will operate on the premises. Guardian Flight provides emergency medical flights.
Schilling Rentals, LLC is current on rent payments and obligations to the City.
The parcel is within the Airport Light Industrial (ALI) Zone per Kenai Municipal Code (KMC)
14.20.065. The intent of the ALI Zone is to protect the viability of the Kenai Municipal Airport as a
significant resource to the community by encouraging compatible land uses and reducing hazards
that may endanger the lives and property of the public and aviation users. The proposed use by
Schilling Rentals is a permitted use in the ALI Zone and is a compatible land use. The availability
of emergency medical flights will be an asset to public health and safety.
Page 2 of 2
Resolution No. 2020-14
The proposed use by Schilling Rentals complies with the 2016 Imagine Kenai 2030
Comprehensive Plan. It supports Goal 5-Transportation, which has a vision for Kenai Municipal
Airport as a gateway to the Kenai Peninsula and West Cook Inlet.
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 Schilling Rentals complies with the Airport
Land Use Plan.
The Planning and Zoning Commission recommended approval of the lease application during
their March 11, 2020 meeting. The Airport Commission recommended approval of the lease
application during their March 12, 2020 meeting.
Resolution No. 2020-14 would grant the approval of the Kenai City Council for the City Manager
to enter into a Lease of Airport Reserve Lands between the City of Kenai and Schilling Rentals
for Lot 5A, Block 1, FBO Subdivision 2018 Replat.
Thank you for your consideration.
Lease Application
N WILLOW STFebruary 2020
.Data Source: Kenai Peninsula Borough. Data is for graphic representation only. Imagery may not match true parcel boundaries.
04020 Feet
413 North Willow Street
Kenai Peninsula Borough Parcel #: 04336049
Lot 5A, FBO Subdivision 2018 Replat
Page 1
“Serving the Greater Kenai Peninsula”
305 N. WILLOW ST. SUITE 200 KENAI, ALASKA 99611
TELEPHONE 907-283-7951
FAX 907-283-3737
MEMO
To: Airport Commission
From: Mary Bondurant – Airport Manager
Date: March 10, 2020
Subject: Lease Application–Lot 5A, Block 1, FBO Subdivision
This lease application was reviewed in conjunction with the FAA approved
February 28, 2018 Airport Layout Plan based on the August 2017 Master Plan.
I have reviewed the above lease application in accordance with KMC 21.10.060:
Airport Layout Plan:
Sheet 13 of 19, Existing Land Use - designates land as undeveloped
subdivided lots;
Sheet 14 of 16, Future Land Use - designates land as commercial and
non-commercial aviation; areas used for aviation activities requiring
taxiway access such as air cargo facilities, aircraft parking aprons,
corporate jet support facilities, fueling facilities, airline and air taxi
hangar/office facilities, government and military aviation facilities and
primarily for large aircraft (more than 12,500 pounds). .
The proposed use is Aeronautical – Hangar for rotor & fixed wing aircraft
with crew quarters
This use complies with the land use definition above.
Sheet 15 of 19, Existing Zoning – Airport Light Industrial;
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The ALI Zone is established by Ordinance No. 2884-2016 to protect the
viability of the Kenai Municipal Airport as a significant resource to the
community by encouraging compatible land uses, densities and reducing
hazards that may endanger the lives and property of the public and
aviation users. Industrial and Commercial uses which are usually
compatible with aviation users are permitted which have no nuisance
effects upon surrounding property, or which may be controlled to prevent
nuisance effects upon surrounding property. New residential uses are not
permitted in this zone because it is intended that lots classified in the ALI
Zone are reserved for aviation-related commercial and industrial uses.
Meets the requirements for KMC 14.20.065 Airport Light Industrial Zone.
Sheet 16 of 19, Future Zoning – Airport Light Industrial;
ALI defined above.
Meets the requirements for KMC 14.20.065 Airport Light Industrial Zone.
Airport Master Plan:
Defines the land as commercial and non-commercial aviation; areas used
for aviation activities requiring taxiway access such as air cargo facilities,
aircraft parking aprons, corporate jet support facilities, fueling facilities,
airline and air taxi hangar/office facilities, government and military aviation
facilities and primarily for large aircraft (more than 12,500 pounds).
FAA Regulations:
o Airport perimeter fence - 8’ security fence that meets FAA and TSA
Security requirements. All perimeter gates must remain closed at
all times. 49 CFR 139.335
o Vehicle parking lot to be contained to prevent unauthorized access
to airfield. All public is restricted from all air operations areas and
all other areas except the terminal or loading area or such other
areas as may be designated by the Airport Manager or designated
representative. 49 CFR 139.335
AIP Grant Assurances: No conflict appears.
Airport Operations:
o Any use by the Lessee of the commercial apron in front of the lease
lot (west side) will be deemed “exclusive use” and subject to the
rates and fees established by the City.
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o The Building Restriction Line (BRL) line is 100 feet back to the east
of the commercial apron.
o Lessee must comply with sector-specific requirements of the Kenai
Airport’s Multi Sector General Permit #AKR06AD35 if conducting
an industrial activity with a SIC code in the range 4512-4581 (Air
Transportation Facility).
This project will create new land lease revenue, employment opportunities, and
provide a valuable service to the Kenai Airport and the City of Kenai.
Please contact me if you have any questions.
Cc: Elizabeth Appleby, Planner
Wilma Anderson, Planning Assistant