HomeMy WebLinkAboutResolution No. 2021-15KENAI
CITY OF KENAI
RESOLUTION NO. 2021-15
Sponsored by: Administration
A RESOLUTION OF THE COUNCIL OF THE CITY OF KENAI, ALASKA APPROVING
DEVELOPMENT INCENTIVES PER KENAI MUNICIPAL CODE 21.10.100. FOR A LEASE OF
AIRPORT RESERVE LANDS BETWEEN THE CITY OF KENAI AND ALASKA AIR FUEL, INC.
ON 2.52± ACRE PORTION OF LOT 5, FBO SUBDIVISION NO. 8.
WHEREAS, the Kenai City Council approved a 45 -year lease application from Alaska Air Fuel on
September 2, 2020, for portion of Lot 5, FBO Subdivision No. 8 to be used as fixed base operator
with a hangar and office space; and,
WHEREAS, Alaska Air Fuel submitted an application for temporary development incentives that
meets the requirements of Kenai Municipal Code 21.10.100, Temporary Development Incentives
on March 1, 2021; and,
WHEREAS, Alaska Air Fuel has provided an estimated value of $600,000 for the following eligible
work activities: clearing and grubbing, unclassified excavation, classified excavation, and utility
extensions; and,
WHEREAS, Kenai Municipal Code 21.10.100 requires Council approval of temporary
development incentives; 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 RESOLVED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA,
as follows:
Section 1. That temporary development incentives with an estimated value of $600,000 for
the following eligible work activities: clearing and grubbing, unclassified excavation, classified
excavation, and utility extensions is conditionally approved. Upon completion of the eligible work
in conformance with applicable City ordinances, rent credit may be applied towards rent for a
maximum of five (5) years.
Section 2. That this Resolution takes effect immediately upon passage.
PASSED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, this 171" day of March, 2021.
M11E.'41y 1 "01
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Resolution No. 2021-15
Page 2 of 2
ATTEST:
Clerk
K I N A I
City of Kenai 1 210 Pidalgo Ave. Kenai, AK 99611-7794 1907.283.7535 1 www1enaixity
►,i_I_=I►`i Eel 01.3 k 191116
TO: Mayor Brian Gabriel and Kenai City Council
THROUGH: Paul Ostrander, City Manager
FROM: Ryan Foster, Planning Director
DATE: March 9, 2021
SUBJECT: Resolution No. 2021-15 — Approving Development Incentives for a
Lease to Alaska Air Fuel
City Council approved a 45 -year lease application from Alaska Air Fuel on September 2, 2020,
for portion of Lot 5, FBO Subdivision No. 8 to be used as fixed base operator with a hangar and
office space. A lease has not been delivered to Alaska Air Fuel yet, due to requiring the
subdivision of Lot 5, FBO Subdivision No. 8 to be finalized and recorded by the Kenai Peninsula
Borough before a lease can be delivered. Kenai Municipal Code 21.10.100 requires Council
approval of temporary development incentives.
This resolution approves development incentives for this lease. A Development Incentive
Application was received on March 1, 2021 for an estimated value of $600,000 for the following
eligible work activities: clearing and grubbing, unclassified excavation, classified excavation, and
utility extensions. If approved by Council, the applicant will still need to provide an estimate of the
value of the work, including a scope of work, prepared by a qualified engineer licensed to work in
Alaska to the City and accepted prior to work being performed. In addition, a certification from a
qualified engineer that the accepted scope of work has been completed must be provided to the
City and accepted at the completion of the site preparation work in order for the credit to be applied
towards rent for a maximum of five years. The annual rent for the first year of the lease is $17,600.
Thank you for your consideration.
Attachment:
City of Kenai Lease Development Incentive Application received March 1, 2021 from Alaska Air
Fuel.
I\ City of Kenai
Lease Development Incentive
Application
Date:
of Applicant: IALASKAAIR FUEL, INC.
IMailing Address: 13700 W. AVIATION ICity:IANCHORAGEIState: IAK IzipCode:I99515I
Phone Number(s): I Home Phone: 907-317-5368 Work/ Message Phone:
(Optional)
Eligible development
To qualify for a lease credit toward rent for a
maximum of five years, an applicant for a new
lease, extension, or renewal must complete
commercial development on the property within two
years to receive the credit, which is based on the
value of site preparation work on the leased
premises. Examples of eligible work include: clearing
and grubbing, unclassified excavation, classified fill
and back fill, and utility extensions.
Required documentation
1. An estimate of the value of the work, including a
scope of work, prepared by a qualified engineer
licensed to work in Alaska must be provided to the
City and accepted prior to work being performed.
Any changes to the estimate must be provided to the
City and accepted prior to work being performed to
be eligible for the credit.
2. A certification from a qualified engineer that the
accepted scope of work has been completed must
be provided to the City and accepted at the
completion of the work for the credit to be applied.
Application is for:
❑ Existing Lease Property
CI New Land Lease Application
Description of property:
HANGAR W/OFFICES, MAINTENANCE FACILITIES,
FBO
Description of work to be completed
❑x
Clearing and grubbing
Unclassified Excavation
O
Classified Excavation
x❑
Utility Extensions
❑
Other:
Estimated value of work: $600,000
Estimated start date: JUNE 1ST. 2021
Estimated completion date: AUGUST 31 ST, 2023
Attachment(s):
❑ Scope of work
❑ Other:
By signing and dating below, the applicant agrees to fulfill the above requirements and understands that if these
reauirements are not met, the applicant will not be eloible for a development credit toward rent.
Ic,nnature: I (/. Fi ]Date: 13/1/2021 I
Name: JOHN K. SLIWINSKI
OWNER
IFor City Use Only "aac
O General Fund ❑ Airport Reserve Land Date Scope of Work Approved.
❑ Airport Fund ❑ Outside Airport Reserve Amount of Credit Applied: