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Home My WebLink AboutResolution No. 2021-37KENAI CITY OF KENAI RESOLUTION NO. 2021-37 Sponsored by: Administration A RESOLUTION OF THE COUNCIL OF THE CITY OF KENAI, ALASKA APPROVING AN AMENDMENT TO A LEASE OF AIRPORT RESERVE LANDS USING THE STANDARD LEASE FORM BETWEEN THE CITY OF KENAI AND SOAR INTERNATIONAL MINISTRIES, INCORPORATED, FOR TRACT A-2, GENERAL AVIATION APRON SUBDIVISION NOY. WHEREAS, on July 1, 2019, SOAR International Ministries, Inc., (SOAR) submitted an applicationto lease City owned properties within the Airport Reserve, described as the undeveloped portion of Tract A, General Aviation Apron Number 2; and, WHEREAS, SOAR's lease application states plans to construct a hangar facility for aircraft storage and maintenance; a connecting office facility, an aircraft ramp and tie -down area, and parking, an investment that gives a lease term of 45 years according to the term table in Kenai Municipal Code 21.10.080; and, WHEREAS, the proposed development would be mutually beneficial and would conform with the Kenai Municipal Codeforzoning, Kenai's Comprehensive Plan, 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 thirty (30) days of publishing a public notice of the lease application from SOAR; and, WHEREAS, at their regular meeting on August 14, 2018, the Planning and Zoning Commission reviewed the lease application and recommended approval by the City Council; and, WHEREAS, at their regular meeting on August 8, 2018, the Airport Commission reviewed the lease application and recommended approval by the City Council; and, WHEREAS, the Kenai City Council approved a 45 -year lease with Soar International Ministries for Tract A-2, General Aviation Apron Subdivision No. 7 to be used as a hangar with office space; and, WHEREAS, a 6 -month application extension was granted by Kenai City Council on August 19, 2020 with an expiration date of February 21, 2021; and, WHEREAS, a lease was delivered to Soar International Ministries on February 19, 2021; and, Resolution No. 2021-37 Page 2 of 3 WHEREAS, a lease extension was approved by the City Manager to Soar International Ministries until June 19, 2021; and, WHEREAS, Soar International Ministries requested an amendment to the approved lease execution resolution on May 4, 2021 to construct the 100 foot by 110 foot connecting office facility, with an aggregate cost of $1,500,000, to be completed no later than June 30, 2025, two years later than the other required improvements; and, WHEREAS, at their regular meeting on May 12, 2021, the Planning and Zoning Commission reviewed the requested lease amendment and recommended approval by the City Council; and, WHEREAS, at their regular meeting on May 13, 2021, the Airport Commission reviewed the requested lease amendment and recommended approval by the City Council; and, WHEREAS, approval of the requested amendment to the lease is in the best interest of the City. NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA: Section 1: That a Lease of Airport Reserve Lands as amended is approved and the City Manager is authorized to execute a lease between the City of Kenai, Lessor, and SOAR International Ministries, Incorporated, Lessee, as follows: REQUIRED IMPROVEMENTS: At no cost to the City, Lessee agrees to complete land development and construction of Permanent Improvements including prepare site for construction and construct an approximately 120 foot x 180 foot hangar facility for aircraft storage and maintenance, an aircraft ramp and tie -down area, and parking, by no later than June 30, 2023, with an aggregate cost of at least $2,000,000.00, excluding financing costs. In addition to the as -built drawings required by this Lease, the Lessee must submit to the City written evidence that the Lessee has completed the land development and constructed improvements on the Premises with an aggregate cost or investment of not less than $2,000,000.00. The evidence of cost must be submitted to the City within sixty days of the completion of the development and improvements, but by no later than August 29, 2023. At no cost to the City, Lessee agrees to complete land development and construction of Permanent Improvements including prepare site for construction and construct an approximately 100 foot x 110 foot connecting office facility, by no later than June 30, 2025, with an aggregate cost of at least $1,500,000.00, excluding financing costs. In addition to the as -built drawings required by this Lease, the Lessee must submit to the City written evidence that the Lessee has completed the land development and constructed improvements on the Premises with an aggregate cost or investment of not less than $1,500,000.00. The evidence of cost must be submitted to the City within sixty days of the completion of the development New Text Underlined; [DELETED TEXT BRACKETED] Resolution No. 2021-37 Page 2 of 3 and improvements, but by no later than August 29, 2025. Lot developments will prevent unauthorized access to the airfield; Structures will be built behind the 100 foot building restriction line; The relocation of the airport perimeter fence will allow aircraft full access to the proposed aircraft ramp and tie down area; Paving will be completed up to the existing transient aircraft apron pavement; SOAR 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. Section 2: The lease must be executed and returned by Soar International Ministries, Inc. by June 19, 2021. Section 3: That this resolution takes effect immediately upon passage. ADOPTED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, this 2nd day of June, 2021. BRIAN GABRIEL SR., MAYOR ATTEST vlK vv v Jamie Hein , MMC, City Clerk F 6s QED 11 New Tent Underlined; [DELETED TEXT BRACKETED) KENAI City of Kenai 1 210 Fidalgo Ave, Kenai, AK 99611-7794 1907.283.7535 1 www.6nai.city MEMORANDUM TO: Mayor Brian Gabriel and Kenai City Council THROUGH: Paul Ostrander, City Manager FROM: Ryan Foster, Planning Director DATE: May 24, 2021 SUBJECT: Resolution No. 2021-37 — Approving the Execution of a Lease to Soar International Ministries The Kenai City Council approved, via Resolution 2019-57, of a 45 -year lease application from Soar International Ministries for Tract A-2, General Aviation Apron Subdivision No. 7 to be used as a hangar with office space on August 21, 2019. A 6 -month application extension was granted by Kenai City Council on August 19, 2020 with an expiration date of February 21, 2021. A lease was delivered to Soar International Ministries on February 19, 2021 and a lease extension was approved by the City Manager to Soar until June 19, 2021. Soar International Ministries has requested an amendment to the approved lease execution resolution on May 4, 2021. Soar has requested that the 100 foot by 110 foot connecting office facility, with an aggregate cost of $1,500,000, be completed no later than June 30, 2025, two years later than the other required improvements. All of the other required improvements from Resolution 2019-57, the approximately 120 foot by 180 foot hangar, aircraft ramp and tie -down area, and parking, with an aggregate cost of at least $2,000,000, would be completed by June 30, 2023. Soar has noted that extending the connecting office facility portion of the improvements completion date to 2025 will assist with their concurrent improvements to the former Kenai Fabric property. The Planning and Zoning Commission reviewed the requested lease amendment on May 12, 2021 and recommended approval by the City Council. The Airport Commission reviewed the requested lease amendment on May 13, 2021 and recommended approval by the City Council. Thank you for your consideration. Attachment A: Resolution 2019-57. Attachment B: May 4, 2021 email from Soar requesting the lease amendment proposal. Attachment C: Application CITY OF KENAI RESOLUTION NO. 2019 - 57 Sponsored by: Administration 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 SOAR INTERNATIONAL MINISTRIES, INCORPORATED, FOR THE UNDEVELOPED PORTION OF TRACT A, GENERAL AVIATION APRON NUMBER TWO. WHEREAS, on July 1, 2019, SOAR International Ministries, Inc., (SOAR) submitted an application to lease City owned properties within the Airport Reserve, described as the undeveloped portion of Tract A, General Aviation Apron Number 2; and, WHEREAS, SOAR's lease application states plans to construct a hangar facility for aircraft storage and maintenance; a connecting office facility, an aircraft ramp and tie -down area, and parking, an investment that gives a lease term of 45 years according to the term table in Kenai Municipal Code 21,10.080; and, WHEREAS, the proposed development would be mutually beneficial and would conform with the Kenai Municipal Code for zoning, Kenai's Comprehensive Plan, 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 thirty (30) days of publishing a public notice of the lease application from SOAR; and, WHEREAS, at their regular meeting on August 14, 2018, the Planning and Zoning Commission reviewed the lease application and recommended approval by the City Council; and, WHEREAS, at their regular meeting on August 8, 2018, the Airport Commission reviewed the lease application 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 between the City of Kenai, Lessor, and SOAR International Ministries, Incorporated, Lessee, as follows: Lot improvements as outlined in lease application from SOAR Intemational Ministries, Incorporated, including an approximately 120 foot x 180 foot hangar facility for aircraft storage and maintenance, an approximately 100 foot x 110 foot connecting office facility, an aircraft ramp and tie -down area, and parking to be completed within two (2) years of signing the lease; Resolution No. 2019-57 Page 2 of 2 The evidence must be submitted to the City within 60 days of the completion of the development and improvements; 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; The relocation of the airport perimeter fence will allow aircraft full access to the proposed aircraft ramp and tie down area; Paving will be completed up to the existing transient aircraft apron pavement; SOAR 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 SOAR will subdivide the property to designate the portion of Tract A, General Aviation Apron Number Two (2) that it wishes to lease from the City of Kenai as set forth on Exhibit A attached hereto, and the subdivision will include a 40 -foot easement for utilities with the cost of the subdivision being shared equally by the City and SOAR. Section 2: That this resolution takes effect immediately upon passage. ADOPTED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, this 21st day of August, 2019. BRIAN GABRIEL SR., MAYOR ATTEST: Jamie ei ,CMC City Clerk G �NDEO I A 71114eaat e wid a Past, r%'iitp a X4 a F tww, V 210 Fidalgo Ave, Kenai, Alaska 99611-7794 Telephone: (907) 283-7535 1 Fax: (907) 283-3014 the city w,- www. kenai.city V MEMORANDUM TO: Mayor Brian Gabriel and Kenai City Council THROUGH: Paul Ostrander, City Manager FROM: Elizabeth Appleby, City Planner DATE: August 14, 2019 SUBJECT: Resolution 2019-57 SOAR International Ministries, Incorporated (SOAR) submitted a lease application to develop a hangar, office, and parking on the undeveloped portion of Tract A, General Aviation Apron No. 2 within the Airport Reserve on July 1, 2019. SOAR had previously submitted an application for the same parcel for the same use in 2018 that was approved by City Council, but it expired after one year after no lease was executed and an extension was not granted pursuant to Kenai Municipal Code 21.10.050 No right of occupancy - Application expiration in May 2019. The parcel is 5.25 acres fronting the aviation apron. It has street frontage on North Willow and Granite Point streets. The area adjacent to the taxiway has been developed for airplane parking and the back half of the lot with the street frontages remains treed and undeveloped. SOAR proposes to build on the portion of the lot that is currently treed, and would need to subdivide the lot prior to construction. SOAR is proposing the City share evenly in the cost of the subdivision required before the parcel may be leased. Kenai Municipal Code 21.10.040(c) states subdivision costs may be shared in whatever amount the City Council determines is reasonable given benefit to the Airport if City Council determines the subdivision serves other Airport purposes. City staff recommends an even split as both SOAR benefits and the City benefits from the creation of a more desirable parcel for lease. SOAR is current on rent payments for existing leases within the Airport Reserve from the City of Kenai. SOAR proposes to lease a portion of Tract A, General Aviation Apron No. 2 for an aeronautical use. SOAR proposes to construct an approximately 120 foot x 180 foot hangar for aircraft storage and maintenance. There would also be a connecting office facility of approximately 100 -foot x 110 -foot, an aircraft ramp and tie -down area, and parking. Possible activities noted on SOAR's lease application include flight training, aircraft parts sales, aviation safety meetings, community meetings, and storage of aircraft floats. SOAR requested a lease term of 55 years to start on September 1, 2019, however, the maximum term of a lease allowed under KMC 21.10.080 is 45 Page 2 of 2 Resolution 2019-57 - Airport Reserve Lease Application years. In addition, with timing of Commission and Council meetings and the 30 -day waiting period to allow for a competitive lease process to accept other lease applications, the lease may not reasonably start until mid-September 2019. SOAR would need to ensure the fence encompassing its development met Airport safety and security standards. Pursuant to Kenai Municipal Code 21.10.060 Lease application review, notice of the new lease application was posted in the Peninsula Clarion and stated competing applications may be submitted for the parcel within 30 -days to the City. The 30 -day window from publication ended on August 3, 2019, and no competing applications were submitted to the City. The parcel is within the Airport Light Industrial (ALI) Zone. Pursuant to KMC 14.20.065, the purpose 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 aeronautical use by SOAR is a permitted and compatible use in the ALI Zone. The Imagine Kenai 2030 Comprehensive Plan outlines goals, objectives, and action items for the City, including this one pertaining to the Kenai Municipal Airport: • Objective T-1: Support future development near or adjacent to the airport when such development is in alignment with the Kenai Municipal Airport's primary mission, 7o be the commercial air transportation gateway to the Kenai Peninsula Borough and Cook Inlet." The proposed use by SOAR complies with the Imagine Kenai 2030 Comprehensive Plan in that it supports development on lease lots and the development is in alignment with the Kenai Municipal Airport's marketing strategy. 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 SOAR complies with the Airport Land Use Plan. It would enhance local economic development. The Airport Commission and Airport Manager recommended approval of the lease application during their meeting on August 8, 2019, as they found it complied with the Airport Land Use Plan, Airport Layout Plan, Federal Aviation Administration regulations, Airport Master Plan, Airport Improvement Program grant assurances, and Airport operations. The Planning and Zoning Commission recommended approval during their meeting on August 14, 2019. Thank you for your consideration, W IJ "Se+,vi,�t3�teiGv�a�.a- Kpv►a.{��ev�un�ulcw' I% 305 N. WILLOW ST. SURE 200 K MAI, ALASKA 99611 L2T TELEPHONE 907,2637951 Municipal Airport FAX 907.2833737 To: Elizabeth Appleby — City Planner Wilma Anderson — Assistant to :City Planlfief From: Mary Bondurant - Airport Manag Date: August 9, 2019 Subject: SOAR Lease Application — Tract A General Aviation Apron No. 2 Airport Commission reviewed the lease application from SOAR International Ministries at the August 8, 2019 Commission meeting. Airport Commission unanimously recommends Council approve the subject lease. If you have any questions, please contact me. Cc: Wilma Anderson wnvw. ken a is i rpo rt. corn From: Richard Paoe To: Ryan Foster Subject: Re: Tract A-2, General Aviation Apron Subdivision No. 7 Date: Tuesday, May 4, 2021 10:28:23 AM CAUTION: This email originated from outside your organization. Exercise caution when opening attachments or clicking links, especially from unknown senders. Looks fine Dick Page Sent from Richard Page On May 3, 2021, at 4:56 PM, Ryan Foster <rfoster@kenai.city> wrote: Good Afternoon Dick and Scott, As discussed earlier today, below is a draft of the updated improvements for the lease. Please review and let me know if this is acceptable in order to allow me to move forward with drafting the resolution and memo for the upcoming Planning and Airport Commission meetings. ARTICLE XIV SURVEY, IMPROVEMENTS AND PERFORMANCE BOND B. IMPROVEMENTS: 1. REQUIRED IMPROVEMENTS: At no cost to the City, Lessee agrees to complete land development and construction of Permanent Improvements including prepare site for construction and construct an approximately 120 foot x 180 foot hangar facility for aircraft storage and maintenance an aircraft ramp and tie -down area, and parking, by no later than June 30, 2023, with an aggregate cost of at least $2,000,000.00, excluding financing costs. In addition to the as -built drawings required by this Lease, the Lessee must submit to the City written evidence that the Lessee has completed the land development and constructed improvements on the Premises with an aggregate cost or investment of not less than $2,000,000.00. The evidence of cost must be submitted to the City within sixty days of the completion of the development and improvements, but by no later than August 29, 2023. At no cost to the City, Lessee agrees to complete land development and construction of Permanent Improvements including prepare site for construction and construct an approximately 100 foot x 110 foot connecting office facility, by no later than June 30, 2025, with an aggregate cost of at least $1,500,000.00, excluding financing costs. In addition to the as -built drawings required by this Lease, the Lessee must submit to the City written evidence that the Lessee has completed the land development and constructed improvements on the Premises with an aggregate cost or investment of not less than $1,500,000.00. The evidence of cost must be submitted to the City within sixty days of the completion of the development and improvements, but by no later than August 29, 2025. Lot developments will prevent unauthorized access to the airfield; Structures will be built behind the 100 foot building restriction line; The relocation of the airport perimeter fence will allow aircraft full access to the proposed aircraft ramp and tie down area; Paving will be completed up to the existing transient aircraft apron pavement; SOAR 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. Please let me know if you have any questions. Sincerely, Ryan Foster Planning Director City of Kenai 907-283-8235 <image001.png> From: Scott Page<scottpage@soarinternational.org> I City of Kenai Kenai Municipal Airport Application for: Land Lease Application I]New Lease ❑Amendment �N- •'� `7 Extension/Renewal KExa,ausKn Application Date: July 1, 2019 Applicant Name of Applicant: Richard Page Mailing Address: 34225 Page street City: Soldotna State: Alaska Zip Code: 9966 s Phone Number(s): Home Phone: ( 907) 252-1841 Cell Work/ Message Phone: ( 9J7) 283-1961 E-mail: (Optional) RichardPage@soarinternational.org Name to Appear on Lease: SOAR International Ministries Mailing Address: P.O. Box 1714 City: Kenai State: Alaska Zip Code: 99611 Phone Number(s): Home Phone: ( 907) 252-1841 Cell Work/ Message Phone: ( 9o7) 283-1961 E-mail: (Optional) Type of Applicant: ❑Individual (at least 18 years of age) Partnership ✓QCorporation []Limited Liability Company (LLC) ❑Government El Other Description of Property Legal Description of Property: Undeveloped portion of General Aviation Subdivision #2 Tract A Does the Property Require Subdivision? (if Yes, answer next two questions) 9 YES D NO Are you prepared to be responsible for all costs associated with subdivision? DYES R NO Do you believe the proposed subdivision would serve other Airport purposes? R YES ONO Do you have or have you ever had a lease with the City of Kenai? ❑✓ YES ❑ NO If Yes, please provide description of property leased (e.g. legal or physical description): Is this application for renewal or term extension of an existing lease? YES R] NO If Yes, please provide a description of the property leased: Lease Term Requested: �5&—Years ``' Starting Date: September 1, 2019 -oposed Use (check one): Iy/I Aeronautical I INon-Aeronautical !D I o you plan to construct new or additional improvements? IVI YES I INO Will the proposed improvement chat or alter the use under an existing lea: E� YES F&/]NO If yes, what is the new proposed use? hat is the type (e.g. building, land) and nature (e.g. maintenance, new construction) of the proposed improvement? ew office and hangar facility for SOAR International Ministries and additional hangar facility to accommodate transient ..urporate aircraft. Potential FBO and flight training facility. What is the estimated amount of investment in the construction of new permanent improvements on the premises? The complete project is estimated to cost 3.5 million dollars. List of proposed use and business activities: Base of operations for SOAR International Ministries. Aircraft storage and maintenance, hangaring transient aircraft, potential FBO, potential flight training facility, potential aircraft parts sales, installation, removal, and inside storage of aircraft floats, facility to host community events such as aviation safety meetings, community fundraising events, etc. Lease Extension or Renewal* Method to determine value of improvements/term for a lease renewal or expiring lease: Professional estimate of the remaining useful life of the principle improvement on the property ❑✓ Market value appraisal of the principle improvement on the property Purchase price of improvements bmitting an application for a lease does not give the applicant a right to lease or use the land requested in the application. The application all 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 _ iso, 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 making specific findings as to why a lease renewal, extension, or amendment is not in the best interest of the City Signature: Dat dl o i 91 Print Name: Title: RECEIVED CITY OF KENAI DATE -7-1-(q PLANNING DEPARTMENT Elizabeth Appleby From: Elizabeth Appleby Sent: Monday, July 22, 2019 3:90 PM To: 'Richard Page' Cc: Wilma Anderson Subject: Lease Application (new lease) Good afternoon, Thanks for dropping off the new assignment request today. I was reviewing your application for the new lease and noticed you had requested a term of 55 years. The maximum term allowed in City Code is 45 years. I will amend your application term request to 45 years. Please let me know if you have questions. I think this was just a copy carry-over from when you had applied to lease this lot in 2018 as the same change was made then to the requested term. —Elizabeth Elizabeth Appleby, AICP City Planner City of Kenai 210 Fidalgo Avenue Kenai, AK 99611 I (907)283-8235/phone i eaoaleby(t4kenai.cit v ` 4 i IIEIIl4YASM N N 4 Z Q a 0 G1M'0 > V ` ^• Vii.\) i I �. Z `�' m n 9C L m 10 m tI. l fA N c oa`~ ALc K•- CAL 6 .' 1. tI. l i I i I IQS,F 'Ac,;Jedv - ! , T�� `� IZ w W u N p Y' V• 1Zu 4 L ItD N 2 I7 U f N t j 4 VI Z a N u b 11' jjj' l�.11l�lll��l yW1 OK J 4J W .."rr��((IIF C` } �✓pJ r J ~ aJ W T U C 6� V tl U� 2 N m Z Z d LL Y b F-3 O Q - I N N I 1 '� 'M BI •el9'N I I 09 99£ I I I d a �S II sa v I II EE tim R � I I S e xQ yyE I II o� P I I I ENQ 14- - I I bFRPJ I (� N ' YS1N/O a N JAW, O N n. PI �I h k c a a. 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