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HomeMy WebLinkAboutOrdinance No. 3181-2021KENAI CITY OF KENAI ORDINANCE NO. 3181-2021 Sponsored by: Administration 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 JULY 27, 2021 TO KENAI AVIATION OPERATIONS, LLC FOR LOT 9A, BLOCK 5, GENERAL AVIATION APRON SUBDIVISION NO. 5. WHEREAS, the Kenai City Council approved of a 45 -year lease application from Kenai Aviation Operations, LLC for Lot 9A, Block 5, General Aviation Apron Subdivision No. 5 to be used as a hangar with office space; 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, Kenai Aviation Operations, 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, the granting of a lease execution extension to Kenai Aviation Operations, LLC needs to be retroactive from January 27, 2021 to July 27, 2021; and, WHEREAS, the project will enhance public safety and quality of life while providing economic development on property leased from the City within the Kenai Municipal Airport Reserve. 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 Kenai Aviation Operations, LLC retroactively from January 27, 2021 to July 27, 2021, for Lot 9A, Block 5, General Aviation Apron Subdivision No. 5. 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 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. Ordinance No. 3181-2021 Page 2 of 2 Section 3. Effective Date: That pursuant to KMC 1.15.070(f), this ordinance shall take effect 30 days after enactment. ENACTED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, this 31" day of February, 2021. ATTEST: Jamie Heinz, CMC, City Clerk IAN GABRIEL SR., MAYOR f of,K7,yq 4. ego S� Introduced: January 20, 2021 Enacted: February 3, 2021 Effective: March 5, 2021 New Text Underlined: [DELETED TEXT BRACKETED] K E N A City of Kenai 1210 Fidalgo Ave, Kenai, AK 99611-77941907.283.7535 1 www henaixity MEMORANDUM TO: Mayor Brian Gabriel and Kenai City Council THROUGH: Paul Ostrander, City Manager FROM: Ryan Foster, Planning Director DATE: January 12, 2021 SUBJECT: Ordinance No. 3181-2021 - Lease Execution Extension to Kenai Aviation Operations, LLC for Lot 9A, Block 5, General Aviation Apron Subdivision No. 5. City Council approved a 45 -year lease application from Kenai Aviation Operations, LLC on September 16, 2020 for Lot 9A, Block 5, General Aviation Apron Subdivision No. 5 at 155 North Willow Street to be used as a hangar with office space. 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 9A. This extended the deadline for the execution and signature of the lease to January 27, 2021. Kenai Aviation Operations 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 3181-2021 would extend the date for Kenai Aviation Operations, LLC to execute the lease and sign the lease agreement with the City retroactively from January 27, 2021 to July 27, 2021. Thank you for your consideration. Attachment: Email dated January 11, 2021 from Kenai Aviation Operations, LLC requesting a lease execution extension. From: Jacob Caldwell To: Ryan Foster Subject: Extension for Kenai Aviation Operations Lease Execution Date: Monday, January 11, 20213:18:50 PM CAUTION: This email originated from outside your organization. Exercise caution when opening attachments or clicking links, especially from unknown senders. To whom it may concern, We are writing to request an additional extension on our lease application. As we have all experienced, the ability to secure financing for big projects this year has been very difficult due to the uncertainty related to covid 19. Our investors, like many others have chosen to wait to make big commitments for a few more months. So, although we intend to build on the lot, our timeline for financing is indefinite for the near future. We are requesting the longest extension that you feel comfortable giving us. Our hope would be for an answer from our investors before the extension period is up. Thank you for your consideration, Joel Caldwell Owner Kenai Aviation Operations 907-252-4878