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Home My WebLink AboutResolution No. 2020-41JC Sponsored by: Administration Ki;NAI CITY OF KENAI RESOLUTION NO. 2020·41 A RESOLUTION OF THE CITY OF KENAI, ALASKA, APPROVING A LEASE RENEWAL OF AIRPORT RESERVE LANDS BETWEEN THE CITY OF KENAI AND KENAI AVIATION SERVICES, INC . D/B/A AVIATION SERVICES, FOR LOT 1A, BLOCK 1, GENERAL AVIATION APRON SUBDIVISION NO . 6. WHEREAS, Kenai Aviation Services, Inc. d/b/a Aviation Services, submitted a complete lease application to the City and paid the required application fee; and, WHEREAS, Kenai Aviation Services is eligible for a lease for a term of 10 years based upon the term table in Kenai Municipal Code (KMC) 21.10.080(b) and a professional estimate of $250,000 for the value of existing improvements meeting requirements of a lease renewal of an expiring lease in KMC 21.10.070(d)(2); and, WHEREAS, Kenai Aviation Services is current on obligations to the City of Kenai ; and, WHEREAS, the lease use will continue to be for aircraft parking, aircraft sales & service, repair & maintenance, sale of petroleum products, aircraft parts, aircraft rental , charter flights, pilot training & air cargo service; and, WHEREAS, there will continue to be a sublease to United Parcel Service, Inc. (UPS) on the parcel ; 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 reg ional needs of the community; and , WHEREAS, the use proposed is compatible and conforms with 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 a regular meeting on June 11, 2020, the Airport Commission reviewed the lease renewal application subm itted by Kenai Aviation Services, Inc. d/b/a Aviation Services and recommended approval by the City Council ; and, Resolution No . 2020-41 Page 2 of 2 WHEREAS, at a regular meeting on June 10 , 2020, the Planning and Zoning Commission reviewed the lease renewal application submitted by Kenai Aviation Services 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 Renewal 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 Kenai Aviation Services , Inc. d/b/a Aviation Services, Lessee, for a term of 10 years for Lot 1A, Block 1, General Aviation Apron Subdivision No . 6; and, Section 2. That this Resolution takes effect immediately upon passage. PASSED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, this 17th day of June, 2020. BRIAN GABRIEL, SR., MAYOR ATTEST: City of Kenai I 2 10 i=°ida lgo Ave , Kenai. AK 9961 1-7794 I 907.283.7535 I www.kenai .cily MEMORANDUM TO: THROUGH: FROM : DATE: SUBJECT: Mayor Brian Gabriel and Kenai City Council Paul Ostrander, City Manager Elizabeth Appleby, City Planner June 12, 2020 Resolution No. 2020 -41 -Execution of a 10-Year Lease Renewal Kenai Aviation Services, Inc. d/b/a Aviation Services (Applicant), submitted an application to the City requesting a 10-year extension to their Lease of Airport Reserve Lands for the property described as Lot 1A, Block 1, General Aviation Apron (GAA) Subdivision No. 6. The property is located at 330 Main Street Loop, Kenai, AK 99611, and the Kenai Peninsula Borough parcel number is 04324028. Pursuant to the term table in Kenai Municipal Code (KMC) 21 .10.080(b) and a professional estimate of the value of existing improvements meeting requirements of a lease renewal of an expiring lease in KMC 21 .10.070(d)(2), the applicant qualifies for a lease term of 10 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 did not receive a competing lease application for the parcel within 30 days. The applicant currently subleases the parcel to United Parcel Service (UPS) and the applicant expects UPS to continue subleasing the parcel. The applicant has provided the City a copy of their sublease agreement with UPS . The uses allowed on the current lease would remain the same; the uses are the following: aircraft parking, aircraft sales & service, repair & maintenance, sale of petroleum products, aircraft parts, aircraft rental , charter flights , pilot training & air cargo service . The applicant converted to the City's new standard lease form in 2019. Kenai Aviation Services, Inc. is current on rent payments and obligations to the City. The annual lease rate is set to be $10 ,238.46 starting July 1, 2020 with approval of a lease renewal. The parcel is within the Airport Light Industrial (ALI) Zone. 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 Kenai Aviation Services , Inc . is a permitted use in the ALI Zone and is a compatible land use. The sublease to UPS provides necessary shipping services to the City. The proposed use by the applicant complies w ith 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 proposed use also supports Goal 3- Economic Development to support the fiscal health of the City of Kenai. 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 fo r local economic development. The proposed use by the applicant complies with the Airport Land Use Plan . The application is also in compliance with the 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 of the lease application during their June 10, 2020 meeting. The Airport Commission recommended approval of the lease application during their June 11, 2020 meeting. Resolution No . 2020-41 would grant the approval of the Kenai City Council for the City Manager to enter into a 10-year renewal of the Lease of Airport Reserve Lands between the City of Kenai and Kenai Aviation Services, Inc. d/b/a Aviation Services for Lot 1A, Block 1, GAA Subd. No. 6 and approval of the continuing sublease to UPS. Thank you for your consideration. ATTACHMENTS 1. Aerial Map 2 . Lease Renewal Application Page 2 of 2 JC The City of Kenai I www.kenai.city City of Kenai I and ... ease Application - Application for. ! -1 Amendment ~ Assignment Application Date: C' New Lease OE><te nsio n ~Renewa l -----~~-----------~------~· --------. Applicant Information I ! -~---- Name of Applicant: 8/iX TEI'. f. ,S IJ I Dj:.ft.. Mailing Address: 7qq i!, LOf HI( i. tJ . !city: lvtr1!..rt/\/s \llLL4state: l :£/J }zip Code:! i./6/S I Phone Number(s}: Home Phone: a.jJlf 5'07 ~I Cfl Work/ Message Phone: lf IL/ g'IJ7 8' I 9 2 nst:<c@ a.ff, n-er -- E-mail: (Optional) Name to Appear on Lease: I J<f:.~A1-fhliATl(JN J "e/l. Y/~€S / :IN( . Mailing Address: 7'1'1 €. LOEHR t..#.J . lcity: ~~l?fi#,;ovutli'."jstate : 1 :C:. Al lzip Code:j '/6 151 Phone Number(s): Home Phone : t./l'I K'07 ~ICJL Work/ Message Phone: 1-f 1 L/ f'()7 ~JC/2 E-mail: (Optional) riral·@ aff . ner Type of Applicant: f I Individual (at least 18 years of age) n Partnership X Corporati on 1 Government [] Limited Liability Company (LLC) r~ Other -~··-~----·--. . -------. -~ . .4i£ -~~. ~ , --·~:.~~-.. .' .. -.~~-~-Prope ~~~~~~tion a~~_'~er~-~~quested ~· __ ' . ..,. ... ,_fi._ ___ ----Legal description of property (or, if subdivision is required, a brief description of property): /o f"lt~ i!J,,t:/:11·1/I L LOI IA BLOCK/ (;&-N(~AL /H1~Tt~Al AP/lCN _$/,8.iJiVf51tVV ,Ve.". 6 ,4e<.>r:.Do./~ fttt'"f" -t1../re~I Ft,1.,6b w . .u.::u,t PJ.rl "7" ..tit' . .Lc:>L' ·7 -'I'{,; W.1r-<M1 A 11uv.zr .19~,H1C/I Does the property require subdivision? (if Yes. answer next questions) IJ YES~NO Subdivision costs are the r esponsibility of the applicant un!ess the City Council determines a subdivision serves other City purposes: 1 . Do you believe the proposed subdivision would serve other City purposes? [-:;YES~ NO 2. If determined it does not, applicant is responsible for all subdivision costs . Initials //F.5" If an appraisal is required to determine the minimum price on the land, applicant is responsible for the deposit to cover costs associated with appraisal. If a sale is approved, the cost of the Initials 11~> --- appraisal will be either refunded or credited to the applicant. It is the responsibility of the applicant to cover recording costs associated with lease. Initials _.8__~5 po you have o r have you ever had a Lease with the City? (if Yes. answer next question} '.)(YES nNo I 1. Legal or brief description of property leased: Tiii~ fRoPi lff'f' -- Request a Lease with an Option to Purchase once development requirements are met? ! !YES )<'NO ---·----- Requested term for initial Lease or Renewal (based on Tem1 Tabl e, not to exceed 45 yea r s): (0 Yi!iRS Requested term for Lease Extension (based on Term Table , not to exceed a total of 45 Years)_ Requested Starting Date: fJ !_Tlf /(.Iv\ I NI~ TI t) v tJr ~ u (l/Ui 1V r J,.. If II s,· Ii-J 0 JIAN ,(..0 l C ------= Proposed Use (check one}: /(..Aerona u tical N on-Aeronau hcal Do you p lan lo c o nstruct new o r add1t1onal 1mp rove m ent.s ? (ii Y e s . answer next frvc questron s) 1 . W ill the improvement change or alter the use under an existing lease? 2 . What is the proposed use of the improvement? 3 . What is the estimated value of the improvement? 4 What is the nature and type of improvement? 5 What are the dates constru ction is esti mated to commence and be completed? (generally, construction must be completed within two years) Estimate d Start Date: Estimated Completion Date- DescribB the p ropose d bus ine ss or a ctivity intended: iA /15 w , L l cc>"' '1'1AI µ E lo pfJ.,blllJ 1N'&-fotv D iJ1,,~w .v U'A o ;lll6 P4ci:'At-b' oAJ rttFll{ P E.fb .;'ll. fil~t'RAFr "'ffl '"J(S. £.. O•J D i /rJ l1t>.itVJ."> ,IJ#P ~·f)/\J f,<.'/..IO/J /'4!i:J o µ/p t.ii.:.v '1 L YES )(.NO f YES ')(NO .. /ff .f I~ f ~'·er.-A..L> How does the propose d lease support a thriving business, residential, recreational , or cultural community? "IH I> ;..11;J?9 w 11..1.. 1r x"IKNO (}l lf t.{ PS ofll/IATto.-.;~ 1AJ 1(1;J.J,,1.r Lease Assignment Only: Wha t is the name of the individual or lega l e ntity the lease is to b e assigned? ,11i/A ___ --_•ell a a :t\11 rr:k t Wtce ~ Renewal of a n Exi sting Lease (at leas t one year of term remaining): Requires new development 1Lease Term b ased on: E stima ted cost of new improvements and Purchase Price (optional) ~Renewa l of an Expiring Lease (less than o n e year of term remaining): Does not require new development Lease Term based on : 0 Purchase Pr i ce~ Profes sional Estimate of Rem a ini ng Useful Life ~Fair Market Value appraisal andi o r L.1.Estimated cost of new improvements (optional) Reql..iested Term for Renewal Based on Term Table, not to exceed 45 Ye ars: Sub~i1t7.,9 an-~polication for a lease does not g ive \he applicant a right to i;as:;;;-:e t~~d r;;;;ted in the application . The ~p p'icalion-- shall expire twelve ( 12) months after the dcite the apphcatton has l>een made if the City ano the appricant have not , by U;at time , entereo into a ease , unless the City Council for good cause grants an extension for a period not to exceed six (6) month s . The City has no obligation to 3mend , renew or ex1end a lease and may oecl:ne to do so upon maki ng s;>ecific findings as to why a lease renewal , e>.1ens1on or amendment is 1ot in the best interest cf the City 3ignature : ~ r, .~""' ~r~ -::ir-in_t_N--am-e-.---_-_-+B-:_x_r-e,r..-,-r · -7;J-~--1J-fR-.--·-_---_J~e --:J_"'"--+.-~-'fi-.-Qf--10-. q:---,i.,-·:----------~ Oc:ite Applir.allon Fee Received 3 l /d-C -=o r City Use Or.iy· J General Fund j-A1rport Fund •c.count Number· ~Airport Reser1e Land D Outside Airpor. Reserve Date Apphe2ti on Determined Comp lete · ·'?-, / l'J ?0-'>)(~xJ~~~~~~ 30-Day Notice Publication Date · 3 / d. (, / ~ O City Courcil .l\ction!Resolutton (J;J I n I d-u JC K~NAI I I I I I O 20 40 Feet Date: May 2020 Action-Approval -10-Year Lease Renewal Parcel04324028