HomeMy WebLinkAboutORDINANCE 0435-1978'INTRODUCED BY COUh,~ILMAN WHELAN
ORDINANCE NO. 435-78
AN ORDINANCE OF THB COUNCIL OF THE CITY OF KENAI, ALASKA, AI~IENDING
ORDINANCE NO. 400-78 ESTABLISHING POLICIES AND PROCEDURES RELATIVE
TO THI~ LEASE OF AIRPORT LANDS AS IT CONCERNS THE 50~ CAP PROVISION
AND REQUIRING A REAPPRAISAL EVERY SIX MONTH8 AND DECLARING AN
EMERGENCY.
WHEREAS, Ordinance No. 400-78 relative to establishing policies and procedux'es
for the lease of airport lands was recently adopted by the Council of the
City of Kenai, and
WHEREAS, said ordinance revised the leasing policy of the City relative
to ali, port lands so that City leases might be mox, e attractive to potential lessees
and thereby the financial position of the City, more particularly the City
six. port, would be enhanced, and
WTIEREA8, certain other revisions in the leasing policy are needed to further
perfeot the revised City leases, and
WHEREAS, it is nee. oseary to make these amendments by emergency ordinance,
since at least two potential lessees are waiting to enter into leases with the
City and before they can do so the matter that this ordinance addresses must
bo cleared up, and the longer the City waits in entering into this lease,
the more its financial position becomes Jeopardized in that valuable City
lend is de~lving no income,
NOW, THRREFORE, BE IT ORDA!.~.£D _ny T.~ COUNCIL OF THE CITY OF
It~NAI, ALASKA as follows:
8,eeflon I: an emergen¢~y is hereby declared
Section Z
21.05.040
Rit~hte Prior to Leasin[~ is amended to read as follows:
The filing of an applioation fro, a lease shall give the applicant
no right to lease or to the use of the land applied for. The
application shall expire within six months after the application
has been made if a lease has not been entered into between
tho City and the applicant by that time. Lease rates are subject
to change on the basis of an appraisal done every six months
on the px'opox'ty applied fox,.
Section ~:
21.05.080(2) Principles and Policy of Lease Rates is amended to read
as follows:
O~d. 4:i5-78, P~ge 2
Realizin~ ~st investors, developer~ and other potential lessees need
reasonable assurance of stability in futm'e lease rates, the redeter-
ruination clause of all future leases shall include the following lans~age:
"At each flve-yea~ interval, the fair market value shall be
dste~nfned by qualified independent appraisers. The
redete~mined lease rate, annual rent, under this provision
shall be limited to a fifty (50%) percent incv, ease in the
prior lease rate until the $0th ye~ anniversary of the lease
~fter which the 50% cap provision shall no longer apply and
the lease rate shall be redste~nined every five yea~s on the
basis of fait. market evaluation es dete~nined in Section 080
(1) (a) and (b) ." City leases extstin~ at the time of the
enactment of this ordinance shall have a thh'ty (30) year
De~od dste~mfned from the date from which the lease was
o~i~dnally entered into.
PASSED BY THE COUNCIl, OF THE CITY OF KENAI, AT, A~KA this 21st day of September,
1978.
Attest:
Su~ C. Peter, City Clerk
VINCI~NT OtREI.L~Y, MAYOR
FIRST READING: September 21, 1978
S~COND READING: September 21, 1978
EPFECTI'v'B DATI~: September 21, 1978