HomeMy WebLinkAboutOrdinance No. 3149-2020JC S pon sore d by: Adm inistrat io n
Kl;NAI
CITY OF KE NAI
ORDINANCE NO. 3 149-2020
AN ORDINANCE OF THE COUNCIL OF THE CITY OF KENAI , ALASKA , ACCEPTING AND
APPROPRIATING A GRANT FROM THE FEDERAL AVIATION ADMINISTRATION AND
AUTHORIZING THE PURCHASE OF PROPERTY DESCRIBED AS LOT 5, SPRUCE CREEK
SUBDIVISION WHICH IS WITHIN THE AIRPORT'S RUNWAY PROTECTION ZONE .
WHEREAS , the fair market va lue purchase price of Lot 5, Spruce Creek Subdivision is $16,000
as determ ined by a fair market value appraisal ; and,
WHEREAS, the property is identified on sheet 14 of the Airport Layout Plan as an area of Future
Airport Land Acqu isition because it is located in the Airport's Runway Protection Zone and on
sheet 17 of t he Airport Layout Plan as having an avigation easement; and ,
WHEREAS, the private landowner is a willing seller and has signed a purchase-sell agreement;
and,
WHEREAS, it is in the best interest of the City to purchase the above-described property to be
retained by the City as it will minimize noise , visual , light and weather emissions and impacts from
its location with in the Runway Protection Zone ; and,
WHEREAS , the Airport Commission recommended purchase of the property at their July 9, 2020
meeting ; and,
WHEREAS , land acquisition is FAA grant eligible , grant f unds are available, and the City has
been awarded a grant totaling $26 ,300 comprised of 93.75% Airport Improvement Program funds
and 6 .25 % CARES Act funds ; and,
WHEREAS , with the above grant amounts , 100% of the cost of the land acquisition shall be
covered by grant funds and no additional City cost share shall be required .
NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF KENAI , ALASKA,
as follows:
Section 1. That the City Manager is authorized to accept a grant in the amount of $26,300
from the Federal Aviation Admin istration and to e xecute a grant agreement and to expend grant
funds to fulfill the purpose and inten t of this ord inance.
Section 2. That the estimated revenues and appropriations be increased as follows :
A irport Special Revenue Fund :
Increase Estimated Revenues -
Federal Grant:
Ordinance No. 3149-2020
Page 2 of 2
Airport Improvem ent Program (93. 75%)
CARES Act (6.25%)
Increase Appropriations -
Other Buildings & Areas -Land
$ 24,656
1 644
$ 26.300
$26.300
Section 3. That the City Manager is authorized to proceed with the purchase of Lot 5, Spruce
Creek Subdivision for a fair market value of $16,000 and to pay additional costs of $10,300
surrounding the purchase of Lot 5, Spruce Creek Subdivision to include the appraisal , closing
costs, administration , and updating of the Airport Layout Plan .
Section 4. Severability: That if any part or provision of this ordinance or application thereof to
any person or circumstances is adjudged invalid by any court of competent jurisdiction, such
judgment shall be confined in its operation to the part, provision, or application directly involved
in all controversy in which this judgment shall have been rendered, and shall not affect or impair
the validity of the remainder of this title or application thereof to other persons or circumstances.
The City Council hereby declares that it would have enacted the remainder of this ordinance even
without such part, provision, or application.
Section 5. Effective Date: That pursuant to KMC 1. 15.070(f), this ordinance shall take effect
immediately upon enactment.
ENACTED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, this 5th day of August, 2020.
Approved by Finance:
BRIAN GABRIEL SR , MAYOR
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New Text Underlined; [DELETED TEXT BRACKETED]
Introduced: July 15, 2020
Enacted: August 5, 2020
Effective: August 5, 2020
City of Kenai I 210 l=ida lgo Ave . Kenai , A K 99611 -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
July 7, 2020
Ordinance No. 3149-2020, Purchase of Lot 5 Spruce Creek Subdivision
Lot 5 , Spruce Creek Subdivision at 46875 Merganser Avenue (Kenai Peninsu la Borough parcel
#04317027) is near the floatplane pond and runway of Kenai Municipal Airport. This parcel was
identified in the Airport Master Plan as one that was desirable to purchase by the City to protect
the Kenai Municipal Airport airspace and to allow for additional Airport development. The parcel
is owned by William Borgen. Mr. Borgen is a willing seller and has signed an agreement with the
City to sell the property at fair market value to the City. Fair market value was determined to be
$16 ,000 from an appraisal conducted in May 2020 by a certified appraiser. Additional costs
surrounding the purchase include the following :
$16 ,000 -property price
$ 2,600 -appraisal
$ 6,600 -update Airport Layout Plan
$ 600 -title fee. settlement fee. and recording fees
$25 ,800
+ $ 500 -Admin
TOT AL -$26,300
The total purchase costs of $26,300 are eligible for funding through the Airport Improvement
Program (AIP) and the Coronavirus Aid , Relief, and Economic Security (CARES) Act. The AIP
will provide 93 .75% of the funding , and the CARES Act will provide 6 .25 % of the funding. The
grant monies would go to the Airport Special Revenue Fund and be appropriated for the total
purchase costs . Thank you for your consideration.
Attachments
1. Aerial Map
JC Parcel to be Purchased
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