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Home My WebLink AboutOrdinance No. 3150-2020JC Sponsored by: Administration K~NAI CITY OF KENAI ORDINANCE NO. 3150-2020 AN ORDINANCE OF THE COUNCIL OF THE CITY OF KENAI , ALASKA, WAIVING KENAI MUNICIPAL CODE 21.10.130-LEASE EXECUTION AND APPROVING A LEASE EXECUTION EXTENSION TO MAY 31, 2021 TO SCHILLING RENTALS, LLC FOR LOT SA, BLOCK 1, FBO SUBDIVISION 2018 REPLAT. WHEREAS, the Kenai City Council approved of a 4S-year lease application from Schilling Rentals, LLC for Lot SA, Block 1, FBO Subdivision 2018 Replat to be used as a hangar for rotor and fixed-wing aircraft and crew quarters with an expected tenant to provide emergency medical flights; and, WHEREAS, a 60-day extension allowed by Kenai Municipal Code 21 .10.130 was granted by the City Manager with good cause of the COVID-19 public health emergency for the execution of a lease agreement; and, WHEREAS, Schilling Rentals , LLC has provided a letter to the City requesting a lease execution extension greater than the 60 days allowed by Kenai Municipal Code 21.10.130 due to the unforeseen circumstances of the COVID-19 public health emergency and its impact on their business plans; and, WHEREAS , Schilling Rentals, LLC anticipates a spring 2021 start for construction of the hangar and facility detailed in the lease application ; and, WHEREAS, the project will enhance public safety and quality of life while providing econom ic development on property leased from the City within the Kenai Municipal Airport Reserve; and , WHEREAS, the City of Kenai Airport Commission recommended approval of this extension during its meeting on August 13, 2020. NOW, THEREFORE , BE IT ORDAINED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, as follows : Section 1. That KMC 21 .10.130 is hereby waived due to the COVID-19 public health emergency for the exclusive purpose of granting a lease execution extension to Schilling Rentals , LLC to May 31, 2021, for Lot SA, Block 1, FBO Subdivision 2018 Replat. Section 2. 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 impa ir the validity of the remainder of this title or application thereof to other persons or circumstances. Ordinance No. 3150-2020 Page 2 of 2 The City Council hereby declares that it would have enacted the remainder of this ordinance even without such part, provision, or application . Section 3. Effective Date: That pursuant to KMC 1.15.0?0{f), this ordinance shall take effect 30 days after enactment. ENACTED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, this 191h day of August, 2020. ATTEST: s'kiANGABRIEL SR., MAYOR Introduced : August 5, 2020 Enacted : August 19, 2020 Effective : September 18, 2020 New T ext Underlined ; [DELETED TEXT BRACKETED] City of Kenai I 210 ~ida l go A ve, Kenai , AK 99611-77941907.283.7535 I www.kenai.ci ty MEMORANDUM TO: THROUGH: FROM : DATE: SUBJECT: Mayor Brian Gabriel and Kenai City Council Paul Ostrander, City Manager Elizabeth Appleby, City Planner July 28, 2020 Ordinance No. 3150-2020 • Lease Execution Extension to Schilling Rentals, LLC for Lot SA, Block 1, FBO Subdivision City Council approved of a 45-year lease application from Schilling Rentals , LLC earlier this year for Lot 5A, Block 1, FBO Subdivision 2018 Replat at 413 North Willow Street to be used as a hangar for rotor and fixed-wing aircraft and crew quarters. The application detailed that Guardian Flight, LLC was expected to utilize the premises to support emergency medical flights. Kenai Municipal Code 21.10 .130 requires a lease be executed within 60 days of the applicant being mailed a lease form for signature. If the applicant shows good cause, the City Manager may grant an extension not exceeding 60 days for the applicant to execute and return a signed lease . The City Manager found good cause due to the COVID-19 public health emergency to grant a 60-day extension to the execution of the lease for Lot 5A. This extended the deadline for the execution and signature of the lease to September 20 , 2020 . Schilling Rentals has requested a greater extension for signing the lease than the 60 days allowed by Kenai Municipal Code due to the unforeseen circumstances created by the COVID-19 public health emergency. If City Council approves, Ordinance 3150-2020 would extend the date for Schilling Rentals, LLC to execute the lease and sign the lease agreement with the City to May 31 , 2021. The Airport Commission recommended approval of the lease execution extension by City Council during their meeting on July 9, 2020. Thank you for your consideration. Attachment: Letter dated July 1 , 2020 from Schilling Rentals, LLC requesting a lease execution extension from July 20, 2020 to May 31, 2021 Schilling Rentals LLC PO Box 3426 Kenai, AK 99611 907.283.7556 FAX: 907.283.7555 July 1, 2020 City of Kenai Attn: Paul Ostrander, City Manager 210 Fidalgo St Kenai, AK 99611 Re: Lot SA Block 1, FBO Subdivision Dear Mr. Ostrander: We have received notification from the City of Kenai that the subject property lease, approved March 18, 2020, must be signed and executed on or before July 20, 2020. Schilling Rentals , LLC (SR) will be pleased to complete the lease and beg i n construction of a hangar and facility for a new company based at the Kenai Airport that will enhance our community's qual i ty of life. Due to the global Covid-19 pandemic, the market is dramatically different than when original plans were announced in March. Subsequently, we seek additional time to complete the necessary steps required prior to lease signing. We anticipate a Spring of 2021 groundbreaking ceremony and, as such, seek a new deadline of May 31, 2021. Please note: if changes occur that will allow an earlier start date, there will be no hesitation from SR to immediately sign and began construction of this worthy project Thank you for your consideration. Respectfully, ~~ Michael Schilling Managing Member City of Ke nai I 210 !=i dalgo Ave , Kenai , AK 99611 -7794 I 907.2 83.7535 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 August 14, 2020 Ordinance No. 3150-2020 -Lease Execution Extension to Schilling Renta ls, LLC for Lot SA, Block 1, FBO Subdivision The A irport Commission recommended approval of Ordinance No. 3150-2020 at their meeting on August 13, 2020. Ordinance No. 3150-2020 incorrectly states this went before the Airport Commission on their meeting on July 9, 2020. I recommend amending the final WHEREAS clause on Ordinance No. 3150-2020 to correctly re f lect the date the Airport Commission recommended approval. Thank you for your consideration.