HomeMy WebLinkAboutResolution No. 2020-77JC Sponsored by: Administration
Ki;NAI
CITY OF KENAI
RESOLUTION NO. 2020-77
A RESOLUTION OF THE COUNCIL OF THE CITY OF KENAI, ALASKA APPROVING THE
EXECUTION OF A LEASE OF AIRPORT RESERVE LANDS USING THE STANDARD LEASE
FORM BETWEEN THE CITY OF KENAI AND KENAI AVIATION OPERATIONS, LLC , FOR LOT
9A, BLOCK 5 , GENERAL AVIATION APRON SUBDIVISION NO. 5.
WHEREAS , Kenai Aviation Operations, LLC, submitted a complete lease application to the City
and paid the required application fee; and,
WHEREAS , Kenai Aviation Operations, LLC , is eligible for a lease for a term of 45 years based
upon an investment amount of $2,000,000 and pursuant to KMC 21 .10.080 -Length of Lease
Term ; and ,
WHEREAS, Kenai Aviation Operations, LLC, is current on obligations to the City of Kenai; and,
WHEREAS, the le ase use will be for a hangar with office space; 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
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 a competing lease application after publishing a
public notice of the lease application, pursuant to KMC 21.10.075 -Competing Applications ; and,
WHEREAS, at its regular meeting on September 10, 2020, the Airport Commission reviewed
the lease renewal application submitted by Kenai Aviation Operatio ns , LLC and recommended
approval by the City Council ; and,
WHEREAS , at its regular meeting on September 9, 2020, the Planning and Zoning Commission
reviewed the lease renewal application submitted by Kenai Aviation Operations, LLC 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 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,
Resolution No . 2020-77
Page 2 of 2
and Kenai Aviation Operations, LLC, Lessee, for Lot 9A, Block 5, General Aviation Apron
Subdivision No . 5 subject to the following condition :
1. No competing lease application is received through September 20 , 2020 .
Section 2. That this resolution takes effect on September 21 , 2020 after the entire 30-days
allowance for competing lease applications has elapsed.
PASSED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, this 16th day of September,
2020.
BRIAN GABRIEL, SR., MAYOR
ATTEST:
City of Kenai I 210 l=idalgo Ave, Kenai, AK 99611 -77941907.28 3 .7535 I www.kenai.cily
ME MORANDUM
TO:
THROUGH:
FROM:
DATE:
SUBJECT:
Mayor Brian Gabriel and Kenai City Council
Paul Ostrander, City Manager
Elizabeth Appleby, City Planner
September 3, 2020
Resolution No. 2020-77 -Execution of a Lease of Airport Reserve Lands
Between the City of Kenai and Kenai Aviation Operations, LLC
Kenai Aviation Operations, LLC (Kenai Aviation Operations) submitted an application to the City
for a Lease of Airport Reserve Lands for the property described as Lot 9A, Block 5, General
Aviation Apron Subdivision No . 5 located at 155 N. Willow St. The Kenai Peninsula Borough
parcel number is 04324026. The application requests a term of 45 years, with an investment value
of 2 million dollars. Pursuant to the term table in Kenai Municipal Code (KMC) 21 .10.080 (b), the
applicant qualifies for a term of 45 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 has not received a competing lease application for the parcel. The period
of 30 days to accept competing lease applications expires after September 20 , 2020. It is
recommended that City Council 's approval not take effect until September 21 , 2020, and that a
condition of approval be that no competing lease applications are received through September
20 , 2020 .
The applicant states that the use of t he premises will be a hangar and office space . The applicant
intends to start construction in October 2020 and finish in June 2021 . The applicant expects the
lease use to support transportation and flight training. The City of Kenai Fee Schedule of Rates,
Charges, and Fees gives an annual lease rate of $13 ,852.96 for this parcel.
The parcel is within the Airport Light Industrial (ALI) Zone per Kenai Municipal Code (KMC)
14.20.065. The intent of the ALI Zone is to protect the viability of the Kenai Municipal Airport as a
significant resource to the community by encourag ing compatible land uses and reducing hazards
that may endanger the lives and property of the public and aviation users. The proposed uses by
Kenai Aviation Operations are permitted and compatible uses in the ALI Zone.
The proposed use by Kenai Aviat ion Operations 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 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 Kenai Aviation Operations complies with the
Airport Land Use Plan .
The Planning and Zoning Commission recommended approval of the lease application during
their September 9, 2020 meeting . The Airport Commission recommended approval of the lease
application during their September 10, 2020 meeting. The applicant has an existing lease within
the Airport Reserve and is current on obligations due to the City for that lease.
Resolution No . 2020-77 would grant the approval of the Kenai City Council for the City Manager
to enter into a Standard Lease of Airport Reserve Lands between the City of Kenai and Kenai
Aviation Operations, LLC, for a portion of Lot 9A, Block 5, General Aviation Apron Subdivision
No. 5 .
Thank you for your consideration.
ATTACHMENTS :
1. Application
2. Preliminary Site Plan
3 . Aerial Map
Page 2 of 2
The City of Kenai I www.kenai.city
{
City of Kenai
Land Lease Application
Application for:
0 Amendment
D Assignment
~ewLease
D Extension
D Renewal
Mailing Address: c I v {ud/occ 5;1-ree-1-City: eJ'l&f State: f/lc Zip Code: l/9"&1/
Phone Number(s): Home Phone: Workl Message Phone: 4af-.:J8 3 -,A// :J-i/
E-mail : (Optional) t!£Jfl fc'IL.f p) kent't.JlltJ l&l-1.0 n. com
Name to Appear on Lease: fu_n1 -<:
Mailing Address: City: State: Zip Code:
Phone Number(s): Home Phone: Wor't<J Message Phone:
E-mail: (Optional)
Type of Applicant: 0 Individual (at least 18 years of age) I Corporation I Government
imited Liability Company (LLICl)lllllllll
Legal description of p~operty (or, if subdivision is required, a brief description of property):
( ~5:' ;....L /IJ r I lot.0 <;fr-eel-~ \ ~ ', nl\3~ LtoQ Co
Lo-r 9f\, ~\ae~ S 1 c;,F\A · ~u.\cd.\ N'o~5
Does the property require subdivision? (if Yes , answer next questions)
Subdivision costs are the responsibility of the applicant unless the City Council
determines a sut:>diVlslon 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
fo r the deposit to cover costs associated with appraisal. If a sale is approved, the cost of the
appraisal will be either refunded or credited to the a licant.
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:
1-:fo ~ ri:v1lf-e:1617'-I lcx.J-'rr
Request a Lease with an Option to Purchase once de~elopment requirements are met?
Requested term for Initial Lease or Renewal (based on Term Table, not to exceed 45 years):
Requested term for Lease Extension (based on Term Table , not to exceed a total of 45 Years):
Requested Starting Date:
D YES }il-NO
~YES O NO
Initials
Initials Jfc£
Initials rtL-
.M YES O NO
0 YES ,@ NO
Do you plan to construct new or additional improvements? (if Yes. answer next five questions) ~YES L NO
1. Will the improvement change or alter the use under an existing lease? LYES ~O
3. What is the estimated value of the improvement?
4 . What is the nature and type of improvement?
N -e.w flc~b.-r 'o/+1 c.-e
5 . What are the dates construction is estimated to commence and be completed?
(generally, construction must be completed within two years)
Estimated Start Date: / C J.<7 ;J.O Estimated Completion Date: 6:, ~"'.>_;;> /
Describe the proposed business or activity intended:
J111r/1f1~
How does the proposed lease support a thriving business, residential, recreational, or cultural community?
Lease Assignment Only: What is the name of the individual or legal entity the lease is to be assigned?
Lease Renewal Only
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)
I Renewal of an Expiring Lease (less than one year of term remaining}: Does not require new development.
Lease Term based on: I Purchase Price I Professional Estimate of Remaining Useful Life
I Fair Market Value appraisal and/or I Estimated cost of new improvements (optional)
Requested Term for Renewal Based on Term Table, not to exceed 45 Years:
Submitting an application for a lease does not give the applicant a right to lease or use the land requested in the application . The application
shall expire twelve (12) months after the date the application has been made if the City and the applicant have not, by that time , entered into a
lease , unless the City Council for good cause grants an extension for a period not to exceed six (6) months . The City has no obligation to
amend , renew or extend a lease and may decline to do so upon ma king specific findings as to why a lease renewal , extension, or amendmen t is
not in the best interest of the City
Signature:
Print Name:
-For City Use Only:
CJ General Fund
• Airport Fund
Account Number:
1,, l!tCt;i/,/c.~/
f,'c/!, e I tctldt.o-e//
-
a Airport Reserve Land
D O utside Airport Reserve
Date/f//t-/ :;ic ,
Tit1e a~, Jter
·--Date Application Fee Received :
Date Application Determined Complete:
30-Day Notice Publication Date:
City Council ~io~Re~oJ~tion :
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Parcel Requested
t:} in Lease Application
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O 20 40 Feet
Ae r ial Map: Lease Application
Pa rcel 04324026
155 North Willow Street
Lot 9A, Block 5, General Aviation Apron Subdivision No. 5
I .•