HomeMy WebLinkAboutResolution No. 2021-21KENAI
CITY OF KENAI
RESOLUTION NO. 2021-21
Sponsored by: Administration
A RESOLUTION OF THE COUNCIL OF THE CITY OF KENAI, ALASKA APPROVING
DEVELOPMENT INCENTIVES FOR A LEASE OF AIRPORT RESERVE LANDS FOR
SCHILLING RENTALS, LLC., ON LOT 5A, BLOCK 1, FBO SUBDIVISION 2018 REPLAT.
WHEREAS, the Kenai City Council approved of a 45 -year lease application from Schilling Rentals
on March 18, 2020, for Lot 5A, Block 1, FBO Subdivision 2018 Replat to be used as a hangar for
rotor and fixed wing aircraft and crew quarters; and,
WHEREAS, Schilling Rentals submitted an application for temporary development incentives that
meets requirements of Kenai Municipal Code 21.10.100, Temporary Development Incentives, on
March 26, 2021; and,
WHEREAS, Schilling Rentals has provided an estimated value of $200,000 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 the temporary development incentives with an estimated value of $200,000
for the following eligible work activities: clearing and grubbing, unclassified excavation, classified
excavation, and utility extensions is approved for credit for temporary development incentives.
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 71 day of April, 2021.
ATTEST:
BRIAN GABRIEL SR., MAYOR
KENAI
City Clerk)
V _�
KENAI
City of Kenai 1 210 Fidalgo Ave, Kenai, AK 99611-7794 1907.283.7535 I www.lcenai.city
MEMORANDUM
TO: Mayor Brian Gabriel and Kenai City Council
THROUGH: Paul Ostrander, City Manager
FROM: Ryan Foster, Planning Director
DATE: March 30, 2021
SUBJECT: Resolution No. 2021-21 — Approving Development Incentives for a
Lease to Schilling Rentals
City Council approved a 45 -year lease application from Schilling Rentals on March 18, 2020, for
Lot 5A, Block 1, FBO Subdivision 2018 Replat to be used as a hangar for rotor and fixed -wing
aircraft and crew quarters. A lease has been delivered to Schilling Rentals, and Council approved
a lease execution extension to May 31, 2021 due to unforeseen circumstances of the COVID-19
public health emergency and its impact on business plans.
Kenai Municipal Code 21.10.100 requires Council approval of temporary development incentives.
This resolution will approve development incentives for this lease. A Development Incentive
Application was received on March 26, 2021 for an estimated value of $200,000 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 forthe credit to be applied
towards rent for a maximum of 5 years. The annual rent for the first year of the lease is $13,114.88.
Thank you for your consideration.
Attachment:
City of Kenai Lease Development Incentive Application received March 26, 2021 from Schilling
Rentals
City of Kenai
,\ Lease Development Incentive
, " Application
y
KA Application Date:
Applicant
Name of Applicant: SCHILLING RENTALS LLC
Mailing Address: PO BOX 3426
Cib
KENAI
State:
JAK
jZip Code:
99611
Phone Number(s): Home Phone:
Work/ Message Phone: 907-283-7556
E-mail: (Optional) admin@schillingrentalslic.com
Lease Information
Eligible development Application is for:
To qualify for a lease credit toward rent for a ❑ Existing Lease Property
maximum of five years, an applicant for a new x New Land Lease Application
❑
lease, extension, or renewal must complete
Description of property:
commercial development on the property within two
years to receive the credit, which is based on the 413 N WILLOW ST.
value of site preparation work on the leased
premises. Examples of eligible work include: clearing Description of work to be completed:
and grubbing, unclassified excavation, classified fill
Q Clearing and grubbing
and back fill, and utility extensions.
0 Unclassified Excavation
Required documentation ❑x Classified Excavation
1. An estimate of the value of the work, including a El Utility Extensions
scope of work, prepared by a qualified engineer ❑ Other:
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 Estimated value of work: $200,000.00
City and accepted prior to work being performed to Estimated start date:
be eligible for the credit. Estimated completion date:
2. A certification from a qualified engineer that the Attachment(s):
accepted scope of work has been completed must ❑ Scope of work
be provided to the City and accepted at the
❑ Other:
completion of the work for the credit to be applied.
By signing and dating below, the applicant agrees to fulfill the above requirements and understands that if these
requirements are not met, the applicant will not be eligible for a development credit toward rent.
Signature:
Date:
3/26/2021
Print Name:
MICHAEL S HILLING
Title:
IMEMBER
For City Use Only: Date Application Received:
❑ General Fund ❑ Airport Reserve Land Date Scope of Work Approved:
❑ Airport Fund 0 Outside Airport Reserve Amount of Credit Applied:
Lease Application
+� 413 North Willow Street
ik Kenai Peninsula Borough Parcel #: 04336049
Lot 5A, FBO Subdivision 2018 Replat
U February 2020
t
,V• 7
r
r
l`
0 20 40 Fed f
•DptaTS:oyr e: Kendile ininaUiB!B,oYough.;,Qata is for yraphlc r p:eseMabon onl p: Imagery may not match true garcel bounoanes. W s