HomeMy WebLinkAboutORDINANCE 0684-1981CITY OF KENAI
ORDINANCE NO. 684-81
AN ORDINANCE OF THE COUNCIL OF THE CITY OF KENAI, ALASKA,
LIMITING APPLICATION OF KMC 21.10.130(b), KMC 21.10.130(c), and
KMC 21.10.130(d) TO LEASES OF LAND ON THE AIRPORT AND RESTRICTED
TO AERONAUTICAL RELATED USES.
WHEREAS, KMC 21.10.130(b), (c), and (d), were passed in order to
encourage the leasing of City lands by making it easier for
lessees to finance improvements thereon, and
WHEREAS, the City has how begun a program of land sales in order
to get the land fully upon the tax roles, to build up permanent
investment funds, and to avoid the expense of a large amount of
administrative work to carry on the leasing program, and
WHEREAS, the deed by which the City secured lands from FAA for
airport purposes requires that full market value be obtained from
the lease of said lands and imposition of a cap on rental rates t
results in the taxpayers of Kenai having to pay into the airport
fund the difference between the fair market rental value of such
lands and actual rents paid, thus subsidizing lessees of the
City, and
WHEREAS, in view of continuing inflation and raise in land values
encouragement can be shifted from land leasing to land sales by
rescinding the 50% cap provision on 5 year redetermination of
rental rates for leased lands.
NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF
XENAI, ALASKA, as follows:
Section 1: KMC 21.10.130(b), KMC 21.10.130(c), and KMC
21.10.130(d) are hereby amended as follows:
"(b) Realizing that investors, developers, and other
potential lessees need a reasonable assurance of
stability in future lease rates, the redetermination
clause of all future leases of lands on the airport and
reatrictld to aeronautical rglated uses shall include
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the following language:
'At each 5-year interval, the fair
market value shall be determined by
qualified, independent appraisers, and
the percentage set originally and
contained in the lease shall be applied
thereto to obtain the new annual rental.
The redetermined lease rate, (annual
rent)
under this provision shall be limited to
a 50% increase in the prior lease rate
until the 30th year anniversary of the
lease after which the 50% cap provision
shall no longer apply and the lease rate
shall be redetermined every 5 years on
the basis of fair market evaluation as
determined in KMC 21.10.130(a).'
Subject to Subsection (d) below. City leases of lands on the
airport and restricted -co aeronauticgl related uses existing
at the time of the enactment of this chapter shall have JJ=
501 can anvlied to_redetermination of lease rates for a 30
year period determined from the date from which the lease
was originally entered into.
"(c) Recognizing that the redetermination procedure
provided for above may be in conflict with the mandate of
the quitclaim deed and the several deeds of release, the
City Council herein acknowledges its obligation to provide
the Airport Fund with those sums which the above
redetermination policy may cause the Airport Fund to lose.
It is the intent of the Council to provide for such a
possible shortfall by appropriating revenues relative to the
assessed valuation of Airport properties.
"(d) Those leases of lands Qn the airport, and restricted to
aeronautical related uses existing at the time of the
effective date of this chapter in which the lease rate has
not been redetermined at its previous 5 year interval, shall
be redetermined as set forth in Subsection (a) above, but
shall not exceed 150% of the appraised 1977 fair market
value times the,Rergentage sat in accordance with Subsect
(a) (2) [6%]. Thereafter such leases shall be subject to
the provisions of Subsection (b) above limiting rental
increases on redetermination to 50% on each 5 year
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anniversary of the date of the lease until the 30th
anniversary thereof."
PASSED BY THE COUNCIL OF THE CITY OF KENAI,,-ALASKA, this 2nd day of
December, 1981.
VINCENT O'REILLY, YO
ATTESTS
J et Whelan, City Clerk
First Readings May 20, 1981
Second Readings December 2, 1981
Effective Dates January 2, 1982
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