HomeMy WebLinkAboutResolution No. 2021-55KENAI
CITY OF KENAI
RESOLUTION NO. 2021-55
Sponsored by: Administration
A RESOLUTION OF THE COUNCIL OF THE CITY OF KENAI, ALASKA APPROVING THE
DEVELOPMENT INCENTIVES PER KENAI MUNICIPAL CODE 21.10.100 FOR A LEASE OF
AIRPORT RESERVE LANDS BETWEEN THE CITY OF KENAI AND SCHILLING RENTALS,
LLC ON GENERAL AVIATION APRON SUB NO. 1 AMENDED LOT 2, BILK 3.
WHEREAS, on September 20, 2019, Schilling Rentals, LLC entered into an assignment of lease
for General Aviation Apron SUB No. 1 Amended Lot 2, Blk 3 with Soar International Ministries,
Inc.; 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
July 1, 2021; and,
WHEREAS, Larson Engineering and Design has provided an estimated value of $150,000 for the
following eligible work activities: unclassified excavation and classified excavation; 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 $150,000
for the following eligible work activities: unclassified excavation and classified excavation is
approved. Subject to compliance with Kenai Municipal Code, a credit may be applied towards rent
for a maximum of 5 years.
Section 2. That this Resolution takes effect immediately upon passage.
PASSED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, this 181' day of August, 2021.
or
BRIAN GABRIEL SR., MAYOR
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City of Kenai 1210 Fidalgo Ave, Kenai, AK 99611-7794 1907.283.7535 I www1enai.cify
MEMORANDUM
TO: Planning and Zoning Commission
THROUGH: Paul Ostrander, City Manager
FROM: Ryan Foster, Planning Director
DATE: August 6, 2021
SUBJECT: Resolution No. 2021-55 — APPROVING DEVELOPMENT INCENTIVES
FOR A LEASE TO SCHILLING RENTALS ON GENERAL AVIATION
APRON SUB NO. 1 AMENDED LOT 2, BLOCK 3.
On September 20, 2019, Schilling Rentals, LLC entered into an assignment of lease for General
Aviation Apron Sub No. 1 Amended Lot 2, Blk 3 with Soar International Ministries, Inc. This lease
terminates on June 30, 2022. An application for a lease renewal has been submitted by Schilling
Rentals, LLC with a request for a 45 -year lease. 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 July 1, 2021 for
the following eligible work activities: unclassified excavation and classified excavation. The
applicant has provided an estimate of the value of the work in the amount of $150,000.00,
prepared by a qualified engineer licensed to work in Alaska. 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 5 years. The current annual rent for the lease is $8,400.00.
Thank you for your consideration.
Attachment A: City of Kenai Lease Development Incentive Application from Schilling Rentals,
LLC.
Attachment B: Civil Excavation cost estimate letter.
Attachment C: Aerial Map of 110 FBO Road.
L
City of Kenai
`• Lease Development Incentive
K�r Application
E N A Application Date: 15/11/21
Applicant
Name of Applicant: Schilling Rentals
Mailing Address: PO SOX 342$
city:
Kenai
State:
JAK
lZip Code:
99611
Phone Number(s): Home Phone:
Work/ Message Phone; 907 283 7556
E-mail: (Optional) duane@uptownmotel.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 properly within two
GENERAL AVIATION APRON SUB NO 1 AMENDED
years to receive the credit, which is based on the
LOT 2 BILK
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
❑ Clearing and grubbing
and back fill, and utility extensions.
❑ Unclassified Excavation
Required documentation ❑ Classified Excavation
1. An estimate of the value of the work, including a ❑ 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: -$230,000.00
City and accepted prior to work being performed to Estimated start date: May 2021
be eligible for the credit. Estimated completion date: January 2022
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: 15/11/21
Print Name:
Michael Schilling
Tide: Imanaging Member
For city Use Only: Date Application Received:
❑ General Fund 0 Airport Reserve Land Date Scope of Work Approved:
13 Airport Fund 0 Outside Airport Reserve Amount of Credit Applied:
21 5 FIDALGO AVENUE, SUITE 203 KENAI, AK
9961 1 CIVIL - STRUCTURAL- ENVIRONMENTAL PHONE: (907) 283-1 565
CONSULTING FAX: (907) 283-1 566
July 1, 2021
Rob Marsters
Re: 110 FBO Rd. — Site Excavation
Mr. Marsters,
Larson Engineering & Design, P.C. is currently working on the Civil planning for the 110 FBO Rd. property
located within the Kenai Airport.
The existing site has frost susceptible soil intermixed within the existing backfill throughout the building
footprint and adjacent perimeter. I recommended removing all frost susceptible soils and backfilling with
non -frost susceptible gravels compacted to 95% of maximum dry density.
The estimated quantity of poor soils, located outside of the existing building footprint, is 4,000 cubic yards. I
estimate the total cost for the excavation and backfill of the site to be approximately $150,000.00, or
—$38/cy.
Compaction tests shall be accomplished during backfill operations in order to get a representative sample
of compaction effort.
I will provide periodic inspection of the excavation and backfill efforts, as the project progresses.
If you have any questions, please contact me at 907-394-2235.
Sincerely,
Signature:
Blake W. Larson, P.E.
LARSON ENGINEERING & DESIGN • 21 5 FIDAL6G AVE. STE 203, KENAI, AK 9961 1
PH: (90.1) 283-1 S65 - FAX: (907) 283-1566
KENAI
110 FBO Road
General Aviation Apron Sub No. 1 Amended Lot 2, Block 3
Parcel 04324024
LEGEND
0 Subject Parcel
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Date: 8/6/2021
Data Source: Kenai Peninsula
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