HomeMy WebLinkAboutResolution No. 2020-51x Sponsored by: Administration
Kt;NAI
CITY OF KENAI
RESOLUTION NO. 2020-51
A RESOLUTION OF THE CITY OF KENAI , ALASKA, APPROVING A LEASE RENEWAL OF
AIRPORT RESERVE LANDS BETWEEN THE CITY OF KENAI AND CPD ALASKA, LLC , FOR
LOT 4 , BLOCK 1, F.B.O . SUBDIVISION.
WHEREAS, CPD Alaska , LLC , submitted a complete lease renewal application to the City and
paid the required application fee; and,
WHEREAS, CPD Alaska, LLC is eligible for a lease for a term of 4 years based upon the term
table in Kenai Municipal Code (KMC) 21 .10.080(b) and a professional estimate of the remaining
useful life of existing improvements meeting requirements of a lease renewal of an e xpiring lease
in KMC 21.10.070( d)(2); and ,
WHEREAS , CPD Alaska , LLC is current on obligations to the City of Kenai ; and ,
WHEREAS, the lease use will continue to be for fuel storage and airc raft service; 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 transportatio n systems that are efficient and adequate to serve the
regional 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 any competing lease applications 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 rev iewed the lease
renewal application submitted by CPD Alaska, LLC , Inc. and recommended approval by the
City Council; and ,
WHEREAS , at a regular meeting on June 24, 2020, the Planning and Zoning Commission
reviewed the lease renewal application submitted by CPD Alas ka , LLC and recommended
approval by t he City Council.
Resolution No . 2020-51
Page 2 of 2
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 CPD Alaska , LLC , Inc., Lessee , for a term of 4 years for Lot 4, Block 1, F.B.O . Subdivision;
and,
Section 2. That this Resolution takes effect immediately upon passage .
PASSED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, this 1st day of July, 2020.
BRIAN GABRIEL, SR., MAYOR
ATIEST:
City of Kenai I 21 0 l=id a lgo Ave, Kenai. A K 99611 -7794 1907.28 3 .75 35 I www.kenai.cily
MEMORAND UM
TO:
THROUGH:
FROM :
DATE:
SUBJECT:
Mayor Brian Gabriel and Kenai City Council
Paul Ostrander, City Manager
Elizabeth Appleby , City Planner
June 23, 2020
Resolution No. 2020 -51 -Execution of a 4-Year Lease Renewal
CPD Alaska, LLC (Crowley), submitted an application to the City requesting a renewal of their
Lease of Airport Reserve Lands for the property described as Lot 4, Block 1, FBO Subdivision .
The property is located at 411 North Willow Street, Kenai, AK 99611, and the Kenai Peninsula
Borough parcel number is 04336018. Pursuant to Kenai Municipal Code 21.10 .075 -Leasing and
Acquisit ion of Airport Reserve Lands, Competing Applications, the City posted notice of the lease
application on May 28 , 2020 and will accept competing lease applications for the parcel for 30
days (through June 26 , 2020).
Pursuant to the term table in Kenai Municipal Code (KMC) 21.10.080(b) and a professional
estimate of the remaining useful life of the principal improvements on the property 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 four years. The applicant had initially requested a lease term of 45
years to reflect expected investment in 2024 . Municipal Code requires improvements be
completed within 2 years of the signing of the lease , or up to a maximum time period of 3 years
with approval for good cause . Since the expected investment is 4 years away and the remaining
useful life of one of the principal improvements on the property is estimated to be 4 years, the
lessee agreed to request a lease term of 4 years with plans to request a 45 year extension once
timing is such t hat additional investment can be taken into account in the term table
This renewal will convert the lessee to the City's new standard lease form . The uses allowed on
the current lease would remain the same ; the uses are the following : fuel storage and aircraft
service. The applicant is current on rent payments and obligations to the City.
The parcel is within the Airport Light Industrial (ALI) Zone. The intent of the ALI Zone is to protect
the v iability 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 continued use by the applicant is a
permitted use in the ALI Zone and is a compatible land use . The lessee provides necessary fuel
supplies to the City.
The proposed use by the applicant 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 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 for
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 24, 2020 meeting. The Airport Commission recommended approval of the lease
application during their June 11 , 2020 meeting.
Resolution No. 2020-51 would grant the approval of the Kenai City Council for the City Manager
to enter into a 4-year renewal of the Lease of Airport Reserve Lands between the City of Kenai
and CPD Alaska, LLC for Lot 4 , Block 1, F.B .O. Subdivision. Thank you for your consideration.
MEMORANDUM ATIACHMENTS
1. Lease Renewal Application
2. Aerial Map
Page 2 of 2
The City of Kenai I www.kenai.city
City of Kenai
Land Lease Appllcatlon
Application for:
OAmendment
D Assignment
O New lease
O ~enslon
fil'Renewal
Malling Address: ;to 7 A..-c.+ l A k'... Zip. <;ode: Cf '15 I~
Phone Number(s): Home Phone: q "1 -771-5 ~ / 6
E-mail: (Optional) -c. n n.. , ~ i I v ~ ~ C-r o ""-' 1 • c.."......,
Name·to.Appearon Lease: C-f"o w I I= u 't..-l-s L.LL..
!\iialllng Ad(tress: ':5 ciL. rt'""I -t... City: state: Zip Code:
Phone Number(s): Home Phone: Work/ Message Phone:
E-mail: (Optional)
Type of Applicant: 0 Individual (at least 18 years of age)
Cl Limited Liability Company (LLC)
0 Partnership
D Other
~orporation I GQvemment
Legat description of property (or, If subdivision · is required, a brief description of property):
1... o + Li B r c " k .t F & o :s u. b J ~ " ~ ':5 ~ ..., , A. r f , " ){ . 3ct ,~o D ~-r
Does the property require subdivision? (if Yes, answer next questions)
Subdivision costs are the responsibility of the applicant unless the City Council
determines a subdivision serves other City purposes:
1. Do you believe the proposed subdivision would serve other City purposes?
2. If determined it does not, applicant is responsible for all subdivision costs.
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
e pralsal will be either refun~ed or·Credlted to the a licanl
It Is the responsibility of the applicant to cover recording costs associated with lease .
Do you have or have you ever had a Lease with the City? (If Yes, answer next question}
1. Legal or brief description of property leased:
L--c.a.$C. :Z.0'1Jl.ot Lo-f 3A1 F~o ~11bdhri:s~o11, A-ff'"c'I'
Lc...tts"t.. o"l3.o 1 ~ cc..I U. -c. t t\ ' r. a
Request a Lease with an Option to Purchase once development requirements are met?
Requested term for Initial Lease or Renewal (based on Tenn Table, not to exceed 45 years): Lj 5
Requested tenn for Lease Extension (based on Term Table, not to exceed a total of 45 Years): N
Requested Starting Date: Su l l \ ::L D ~
DYES NO
D YES ONO
Initials N -----
lnltlals -.!J../.A--
Initials N A
YES 0 NO
0 YES fY.rNO
Pr oposed Use (check one): ..Y Aeronautical Non-Aeronautica l
Do you plan to construct new or additional Improvements? (If Yes, answer next tlY8 queattona) it'YES .O NO
1. Wiii the improvement change or alter the use under an existing lease? C YES ~NO
2 . Whatis the proposed use of the improvement? A v i A. i ~ o "' (_.a .,-d I"'-k ~ S -c..l .f ~ e.. ...'.: Yofr.._ ..... _ ....
3. What Is the estimated value of ttle improvement? f 5 () O I<. -t-
4 . Whatisthenatureandtypeofimprovement? Fu Lr rc.f t"'-t..-e.rn.~,,_-1 a.( +-"-"'-5-t.ff -~u·vic°'
,A-'11:~-lio ....., t.llf'C I ce.~
5 . W h at are the dates construction is estimated to commence and be completed?
(generally, con~truction must be completed within two years)
Estimated Start Date: WJ. A. !J..o ~ 4 Esti mated Completion Date: 5-<. p-J. t: m b ~ < ,:J. 0 .:2-'f
Describe the proposed business or activity intended: L..'1~J Jv l cl s o L(_ Y .("' -cJ s{c r~°\C:. f'ttc i l.~ie
+~c.t.-f si..t.rforf OCA..~ av~A.+t--c-~ .C.L(_'('..,.I,'""~ S!'..rv~t-<=S, Q~ w!'ll a.~
b V\ l K. ~~i:..( d •-s+r ; b1.ti1'ovi +-o ;-h,t'... t,.) A"'d b rt"tder :s"aou ,•fl t\ft~.
How does the proposed lease support a thriving business, residential, recreationa l, or cultural community? .I-.Su" "
as t!..io.VI"(.~'-, bcuc. .f"'c.l :5+ota '+"e-i l\-h...i On +k. .... l(e..t'\4i P+n l "~"''"'. ::r-t .f~e;l;iq+ ~ t,.arnlY\~Ye.~"-1 anc!1 r~e.r~ +•' r'A.( A"~"'~~., ~ d1:~et ~t'\.~ :S'-'ff6t"f..s
..vi ~e.1 , I c.. r. ..1 -t: •
L ease Assignment Only: What is the name of the individual or legal entity the lease Is to be assigned? N/A
EA~~~ · .. :~ ;.~:'","'·:~::·.; ... · -:l.~~~~'Rc~c~va.IO ~ly . . .,. . r • -,-."fr
•. 't .. ~~ .. .:..~ ,..... -.,_,4,....~.+ ... 41..W.-· ........... > .. ~ ........ -•• ~ ... _•t., -'--· I .. ........ _
' · Renewal of an Existing Lease (at least one year of term remaining): Requires new development.
Lease Term based on: Estimated cost of new improvements and Purchase Price (optional)
\;(Renewal of an Expiring Lease (less than one year of term remai ning): Does not require new development.
Lease T erm based on: r Purchase Price V Professlonal Estimate of Remaining Useful Life
d Fair Market Value appraisal and/or ~Estimated cost of new Improvements (optional)
Requested T enn for Renewal Based on Term Table, not to exceed 45 Years: 4 5 4<-~f '!. ,,~·V\.J.eA
l\ '-! (<::::, '
I\
Submitting an appllcallon for a lease does not give the applicant a right to lease or uae the land requested In the applk:atlon . The appllcatlon
ahaH uplra twelve (12) months after the date the appllcaUon haa been made If the City end the applicant have not, by that tim e, entered Into a
lease , unless the City Councll for good causa grants an extension for a period not to exceed six (8) months. The City has no obllgatlon to
amend, renew or extend a lease and may decline to do so upon making apaclftc tlndtngs es ID why a leaae renewal, extension, or amendment is
not In the beat Interest of the City
Signature: Qv.. .-~,~ Date: 11 / , ct J :>-6
Print Name:
{/ (/ 0--e nn.v 5 i l"~ rrtte: M 41.-n. a. ~ e-f", ~"vi f.r-A.cA-s
For City Use Only: ' Date Appllcation Fee Received : ~l ~S(J.0 I D General Fund OJ Alrport Reserve Land Date Application Determined Complete:
CJ Airpo rt Fund 0 Outside Airport Reserve 30-Dey Notice Publication Date: &A s / '2,\ /?.G I
Account Number: City Councll Action/Resolution : ~ i l/~o . -·-------· -
JC
K~NAI
I I I I I
O 15 30 Feet
Lease Renewal Application
Parcel04336018
411 North Willow Street
Lot 4, Block 1, F .8.0. Subdivision
. .
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