HomeMy WebLinkAboutResolution No. 2020-72JC Sponsored by: Administration
Ki;NAI
CITY OF KENAI
RESOLUTION NO. 2020-72
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 ALASKA AIR FUEL , INCORPORATED, FOR A
PORTION OF LOT 5, FBO SUBDIVISION NO. 8.
WHEREAS, Alaska Air Fuel , Incorporated, submitted a complete lease application to the City
and paid the required application fee; and ,
WHEREAS, Alaska Air Fuel, Incorporated, is eligible for a lease for a term of 45 years based
upon an investment amount of $1,000,000 and pursuant to KMC 21 .10.080 -Length of Lease
Term ; and,
WHEREAS, Alaska Air Fuel, Incorporated, is current on obligations to the City of Kenai for its
existing special use permits; and,
WHEREAS, a subdivision is necessary to create the parcel Alaska Air Fuel desires to lease; and,
WHEREAS, other Airport purposes are served by the subdivision because an additional lease lot
will be created and the right-of-way will extended for North Willow Street in alignment with the
Airport Layout Plan and; and ,
WHERAS, City Council may choose that the City will share in the subdivision costs with an
applicant under Kenai Municipal Code 21.10.040(c) if other airport purposes are served by the
subdivision; and,
WHEREAS, the lease use will be a fixed based operator (FBO) with hangar and office; 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 within 30 days of
publishing a public notice of the lease application , pursuant to KMC 21.10.075 -Competing
Applications ; and ,
Res o lution No. 2020-72
Page 2 of 2
WHEREAS , at its regular meeting on August 13, 2020, the Airport Commission re v iewed the
lease renewal application submitted by Alaska Air Fuel , Incorporated and recommended
approval by the Ci ty Council ; and,
WHEREAS, at its regular meeting on August 12, 2020, the Planning a nd Zoning Commission
reviewed the lease renewal application submitted by Alaska Air Fuel , Incorporated and
recommended approval by the City Council as long as the lessee 's subdivision of the lot would
leave the City with a useful and leasable remaining parcel.
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 contingent on a completed
subdivision and the City Manager is authorized to execute a lease between the City of Kenai ,
Lessor, and Alaska Air Fuel, Incorporated, Lessee, after completion of a subdivision , with the
following conditions:
Lot improvements as outlined in lease application a hangar with office space to be
completed within two (2) years of signing the lease ;
The lease term will be 45 years;
Lot developments will prevent unauthorized access to the airfield;
Structures will be built behind the 100 foot building restriction line;
Parking spaces will be provided as required by Kenai Municipal Code 14.20.250 -
Off-street parking and loading requirements ;
Alaska Air Fuel, Incorporated is responsible for all snow removal, and snow may
not touch the perimeter security fence or be piled to a height that would allow
access to the airport; and
Section 2. That a subdivision of the property must occur prior to the lease to create a
parcel with the 280 foot width and 392 foot depth as Alaska Air Fuel requested to lease ,
create a new parcel to be retained by the City covering the remaining adjacent treed area ,
and dedicate the right-of-way for North Willow Street that continues northwest through
parcel 04318044, described as All of Section 32 excluding Subdivisions & Leased Areas
& Kenai Municipal Airport Float Plane Basin Replat as shown on Attachment A, w ith the
cost of the subdivision being shared equally by the City of Kenai and Alaska Air Fuel,
Incorporated .
Section 3. That this resolution takes effect immediately upon adoption.
ADOPTED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, this 2nd day of September,
2020 .
City of Kenai I 210 f:idal go Ave . Kenai, AK 99611 -77941907.283.7535 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
August 25, 2020
Resolution No. 2020-72 -Execution of a Lease of Airport Reserve
Lands Between the City of Kenai and Alaska Air Fuel, Inc.
Alaska Air Fuel submitted an application to the City for a Lease of Airport Reserve Lands for the
property described as a portion of Lot 5, FBO Subdivision No. 8 located at 525 N. Willow St. The
Kenai Peninsula Borough parcel number is 04336043. The application requests a term of 45
years, with an investment value clarified by email of $1 million dollars. Pursuant to the term table
in Kenai Municipal Code (KMC) 21.10 .080 (b ), the City and the applicant are in agreement to 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 applicant states that the use of the premises will be FBO with hangar and office. The
applicant's initial stated uses also included crew quarters and a coffee shop , but these uses were
deleted from the application after discussion with the City. Alaska Air Fuel would not like to lease
a portion of the entire parcel and subdivision must be completed prior to a lease document being
signed . Alaska Air Fuel would need to comply with Airport fencing requirements and parking . Their
site plan shows an approximation of the fence location and notes that additional parking spaces
would need to be added into the design prior to obtaining a building permit.
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 encouraging compatible land uses and reducing hazards
that may endanger the lives and property of the public and aviation users . The proposed uses by
Alaska Air Fuel are permitted and compatible uses in the ALI Zone .
The proposed use by Alaska Air Fuel 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 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 Alaska Air Fuel, Inc. complies with the Airport
Land Use Plan .
The Airport Commission recommended approval of the lease applicatio n du ring their August 13,
2020 meeting . The Planning and Zoning Commission recommen d ed approval of the lease
appl ication during their August 12, 2020 meeting. However, the Planning and Zoning Commission
had reservations about the subdivision leaving the Ci ty with small-size parcel and recommended
the applicant either lease the entire parcel or leave the City with a larger parcel by bump ing the
lot line out. The applicant would still like to lease a portion of the lot and is aware the City would
require that the unleased parcel created by the subdivision be increased in size by moving the lot
line northeast into parcel 04318044 (305 N . Willow St.). City Administration recommends
approving the lease with that stipulation for the subdivision and also requiring that right-of-way for
North Willow Street be dedicated along the entire boundary of the parcels created by the
subdivision .
The first attached map shows the portion of the lot depicted that Alaska Air Fuel has requested to
lease. The lot is 400 feet in width (frontage along Willow Street) x 392 feet in depth (distance of
lot back from Willow Street to Airport taxiway). Alaska Air Fuel has requested to lease an area
280 feet x 392 feet (corrected to 392 feet from the 380 feet in depth shown on their submitted site
plan). If the lot is subdivided and the requested area is leased, it would leave a parcel
approximately 120 feet in width by 392 feet in depth . This area is adjacent to a large 330-acre
parcel owned by the City. The second map shows a smaller scale map in order to depict adjacent
parcels of the requested lot for additional information.
The third map shows a proposed draft layout for the subdivision, with the expectation that Alaska
Air Fuel would lease Lot SA. Kenai Municipal Code 21.10.040(c) states, "If the Council determines
that other airport purposes are served by the subdivision, the City Council may choose in its sole
discretion that the City will share in the subdivision costs with the applicant in whatever amount
the City Counci l determines is reasonable given the benefit to the airport". Given that the
subdivision serves also airport purposes by designating additional right-of-way for the existing
North Willow Street and breaks a large City parcel into tracts in addition to creating the lot space
requested by the applicant, City Administration recommends the applicant and the City split the
cost of the subdivision.
Resolution No. 2020-72 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 Alaska
Air Fuel , Inc. for a portion of Lot 5, FBO Subdivision No . 8.
Thank you for your consideration .
Attachments:
• Application
• Preliminary Site Plan
• Maps (Small-Scale and Large-Scale)
Page 2 of2
JC The City of Kenai I www.kenai.city
City of Kenai
land lease Application
Name of Applicant: Alaska Air Fuel. tnc.
Mailing Address: 3700 West Aviation Ave. City: Wasilla
Application for:
-Amendment
Assignment
State: Ak
x New Lease
Extension
Renewal
Zip Code: 99654
·Phone Number(s): Home Phone: 907-317.5169 Work/ Message Phone: 907-317-5169
.E-mail: (Optional) alaskaalrtuel@hotrnail.com
Name to Appear on Lease: Alaska Air Fuel. Inc.
Mailing Address: 3700 West Aviation Ave. City: Kenai State: Ak Zip Code: 99654
;Phone Number(s): Home Phone: 907-317-5169 Wort<.J Message Phone: 907-317-5169
£-m\lil; (Opticnnl) alaskaaltfuel@hotmall.ccm
Type of Applicant: Individual {at least 18 years of age}
Umited Liability Company (LLC)
I Partnership ic i Corporation Government
I Other
-
Property Information and Term Rcqueited
Legal description or property (or, if sub division is requi red, a brief description of property):
525 N. Willow St.
Lot 5, FBO Subd. No . 8 full depth X 240ft of apron and road frontage
Does the property require subdivision? (if Yes. answer next two questions) fi( YES I NO
Subdivl~ion <'.oi:;ff; ;-irA thA responsibilily of the appli(',ant unlAss the City Council
determines a subdivision serves other City purposes:
1 no you t>AllAVA thA propo~Arl s11briivislon would sarvi:t oth~r City purpoi:>As? l!!. YES L NO
2. Are you prepared to be responsible tor all costs associated with subdivision? ~YES If NO rf an appraisal is required to determine the minimum price on the land. are you prepared to be
responsible for the deposit to cover costs associated with appraisal? (The cost of the appraisal ~YES
wrn ta em1ar refundw or credit~d toward th ti purc.·ha&er at c.losh"ty i
Are you prepared to be responsible for recording costs associated with lease execution? I~ YES
Do you have or have you ever had a Lease with the City? (if Yes, answer next question) I~ YES _J NO
1. Legal or brief description of property leased:
15000 square foot tie down at the base of the tower
Request a Lease with an Option to Purchase once developmeht requirements are met?~.::~!E YES [.NO
Requested term for Initial Lease or Renewal (based on Term Table, not to exceed 45 years): 45 yrs
Requested term for Lease Extension (based on Term Table, not to exceed a total of 45 Years): 45 yrs
D . .... • I' ,cquc ... tcd S,nrtmg Date. 1 June 2020
RECEIVED
CITY OF KENAI
DATE Y(e(~20
PLANN IN G DEPARTMENT
.
I
Proposed Use and Improvements
Proposed Use (check one): xJ Aeronautical I Non-Aeronautical
Do you plan to construct nB\.v or additional improvements? (if Yes, enswer next five questions) ~YES LNO
1. Will the improvement change or aiterthe use 1.Jnder en eXlstlng lease? I~ YES I NO
2. What is the proposed use of the improvement? FBO with Hanger, office,
3. What is the estimated value of the improvement? 3 million assessed value
4. What is the nature and type of improvement?
Site development, Tarmac, Aircraft Hanger Yiith office &-orew-quafters-&-ooffe&-shop/f~fiu~t
5. What are the dates construction Is estimated to commence and be completed?
(generally, construction must be completed within lwo years}
Estimated Start Date : August 31st. 2020 Estimated Completion Date: August 31st, 2022
Describe the proposed business or activity intended :
FBO and OC-4 air fueling operation with separate 125 freight operation and 135 certified passenger servlce
How does the proposed lease support a thriving buslness, resider.tied, recreationol, or cultural communit'/?
By awarding Alaska Air Fuel this tease, the city of Kenai Will effectively create multiple longterm , high paying jobs, as
well as bring ln additional tax revenue for the city.
Lease Assignment Only: What is the name of the individual or legal entity the lease is to be assigned?
Alaska Air Fuel, Inc
---.... --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 1 Purchase Price (optional)
Renewal of an Expiring Lease (less than one year of tetm remaining): Does not require new development.
Lease Term based on: -Purchase Price Professional Estimate of Remaining Useful Ure
falr Market Va!ue appra!.sal and/or 1 Estimated ®St of new Improvements (optional)
Requested Term for Renewal Based on Term T~ble, not to exceed 45 Years:
Submitting an application fore lease does not give the appli<=*nt a right to lease or use tM land requested In the eppllcetlon. The application
shall expire twelve (12) m0nths after the date the epplicaUon has been made If the City and the applicant have not, by that time, &!\tered Into•
ea~. unless the City Council for good cause grants en extension for 8 period not tO exceed six (6) monlhs. The City hes no obligation to
amend , renew or extend a lease and mey decline to do so upon making specific; findings as to why a lease renewal. extension, or amendment is
oot in the best interest of the City
Signature:
Print Name:
fi:or City Use Only:
IC General Fund
: O Airport Fund
:Account Num~:
0 Airport Reserve Lend
0 O:,:t~dc A!rpcrt Rccctvc
,.
4/8/2020
V80wner
Oate App!lcatJon t-ee t<ecelVe<f:
Date Application Determined Complete:
30 O;Jy Neticc Publle:lt!on O:rtc:
City Council Actlon/Resotutlon:
I
./
LEGEND
(} Parcel04336043
I I I I I
0 25 50 Feet
:::~~s
Date: May 2020
'
Lease Application
Parcel04336043
525 North Willow St.
lot 5, FBO Subd. No. 8
1 ~Qv'K\ 'f\s S (X11CJL
\
u rr.o
I
/
Q--~ \1lPD f+
[)f-\j\(\~ °' i
~'~ ~ \('~jt-e ~
~~ K/V'\C
\ L\,d.O ~S D
C~)ci)
I
I
I
Data Source : Kenai Peninsula Borough . Data is for graphic representation only . Imagery may not match true parcel boundaries .
' '
Attachment A:
K~N AI Proposed Subdivision
I I I I I
O 105 210 Fee t
){?
K~NAI
<} Parcel04336043
I I I I I
o 40 80 Feet
Lease Application from Alaska Air Fuel
for a Portion of Parcel 04336043
525 North Willow St.
L o t 5, FBO Subd. No. 8
){?
K[;NAI
Surrounding Parcels for
Lease Application from Alaska Air Fuel
for a Portion of Parcel 04336043
525 North Willow St.
Lot 5, FBO Subd. No. 8