HomeMy WebLinkAbout2021-08-26 Airport Commission Packet - Special MeetingKENAI MUNICIPAL AIRPORT COMMISSION
SPECIAL MEETING
AUGUST 2 6, 2021 – 6:00 P.M.
KENAI CITY HALL
210 FIDALGO AVE., KENAI, AK 99611
*Telephonic/Virtual Information Below*
http://www.kenai.city
1. CALL TO ORDER
a. Pledge of Allegiance
b. Roll Call
c. Agenda Approval
2. UNSCHEDULED PUBLIC COMMENT (Public comment limited to three (3) minutes per
speaker; thirty (30) minutes aggregated)
3. NEW BUSINESS
a. Discussion/Recommendation – Kenai Waterfront Revitalization Feasibility Study
4. NEXT MEETING ATTENDANCE NOTIFICATION – September 9, 2021
5. COMMISSIONER COMMENTS AND QUESTIONS
6. ADDITIONAL PUBLIC COMMENT
7. ADJOURNMENT
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Meeting ID: 884 7953 1094 Password: 404070
1
MEMORANDUM
TO: Airport Commission
THROUGH: Paul Ostrander, City Manager
FROM: Eland Conway, Airport Manager
DATE: August 19, 2021
SUBJECT: Ordinance No. 3237-2021 Airport Commission
The purpose of this memo is to request concurrence from the Airport Commission on Ordinance
3237-2021 introduced at the August 18, 2021 Council Meeting and acted on at the September
1, 2021 Council Meeting. This Ordinance is intended to provide $95,000 toward a Kenai
Waterfront Revitalization Feasibility Study.
A work session was held in council chambers on August 4, 2021. Attached to this packet is the
information reviewed at that work session.
This study will encompass approximately 160 acres of property along the eastern edge of the
river from the first cannery to the City Dock and is intended to identify opportunities for
development as well as determining how improvements to the area can best serve our
community.
This study, if performed well, will provide direction to the City of Kenai for years to come and
provide a significant draw of new peninsula residents and visitors alike. I am in support of it and
respectfully request the support of the Airport Commission. A motion shall be made during the
Special Meeting to vote on the Commissions support of the pending Ordinance. The results of
that motion will be provided to Council within the Ordinance.
Look forward to seeing everyone on August 26.
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Sponsored by: Administration
CITY OF KENAI
ORDINANCE NO. 3237-2021
AN ORDINANCE OF THE COUNCIL OF THE CITY OF KENAI, ALASKA, INCREASING
ESTIMATED REVENUES AND APPROPRIATIONS IN THE GENERAL FUND – LAND
ADMINISTRATION DEPARTMENT TO PROVIDE FUNDING FOR A KENAI WATERFRONT
REVITALIZATION FEASIBILITY STUDY.
WHEREAS, the City of Kenai 2030 Comprehensive Plan states that the City should develop land
use strategies to implement a forward-looking approach to community growth and development;
and,
WHEREAS, the Comprehensive Plan specifically identifies the waterfront adjacent to Bridge
Access Road beginning at Millennium Square to the City Dock as an area where revitalization
strategies should be explored; and,
WHEREAS, the City Council held a work session on August 4, 2021 to gauge the interest of the
community in the revitalization of this area and to discuss the need for a feasibility report that will
refine the vision of the community, determine if redevelopment of this area fits into the
community’s goals and objectives, determine what types of development is most appropriate, and
identify how the City can best support revitalization of the area; and,
WHEREAS, the estimated cost of the feasibility report, based on the preliminary scope of work
and the cost of similar studies in other communities in Alaska is $75,000; and,
WHEREAS, due to the unique nature of this work and the possibility that additional items may be
identified that should be added to the scope of the contract, this ordinance appropriates $20,000
in contingency; and,
WHEREAS, the Airport Commission reviewed the Kenai Waterfront Revitalization and Economic
Incentives materials provided at the August 4, 2021 Work Session at its meeting on August 26,
2021 and recommended ____________________; and,
WHEREAS, the Harbor Commission reviewed the Kenai Waterfront Revitalization and Economic
Incentives materials provided at the August 4, 2021 Work Session at its meeting on August 23,
2021 and recommended ____________________; and,
WHEREAS, the Planning and Zoning Commission reviewed the Kenai Waterfront Revitalization
and Economic Incentives materials provided at the August 4, 2021 Work Session at its meeting
on August 25, 2021 and recommended ____________________; and,
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Ordinance No. 3237-2021
Page 2 of 2
_____________________________________________________________________________________
New Text Underlined; [DELETED TEXT BRACKETED]
WHEREAS, the recommendation in the City of Kenai Comprehensive Plan to review revitalization
strategies in this area, the public support demonstrated during the Council August 4, 2021 work
session, and the transformative opportunity for economic development and community
enhancement through the redevelopment of this area demonstrates that funding a feasibility study
for this area is in the best interest of the residents of the City.
NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA,
as follows:
Section 1. That the estimated revenues and appropriations be increased as follows:
General Fund:
Increase Estimated Revenues –
Appropriation of Fund Balance $95,000
Increase Appropriations –
Land Administration – Professional Services $95,000
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.
Section 3. Effective Date: That pursuant to KMC 1.15.070(f), this ordinance shall take effect
immediately upon enactment.
ENACTED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, this 1st day of September,
2021.
BRIAN GABRIEL SR., MAYOR
ATTEST:
___________________________________
Jamie Heinz, MMC, City Clerk
Approved by Finance: _________________
Introduced: August 18, 2021
Enacted: September 1, 2021
Effective: September 1, 2021
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MEMORANDUM
TO: Mayor Gabriel and Council Members
FROM: Paul Ostrander, City Manager
DATE: August 10, 2021
SUBJECT: Ordinance 3237-2021 – Appropriation to Fund a Kenai Waterfront
Revitalization Feasibility Study
At the August 4, 2021 Council work session, administration presented the framework of a process
to pursue revitalization strategies on the Kenai waterfront and received testimony from the public
and feedback and direction from Council. The effort to determine how the City can facilitate the
redevelopment of our waterfront will be a multi-year effort with the first step being the completion
of a feasibility study.
Ordinance 3237-2021 will appropriate $95,000 from the City’s General Fund to pay for the Study.
This includes $20,000 in contingency due to the unique nature of the Study and the possibility
that the scope of work may change as the project unfolds.
The draft scope of work for the feasibility study is under development and will be provided for the
September 1, 2021 Council meeting. Generally, the scope will be focused on the following:
• Evaluate market conditions and identify opportunities for potential revitalization of the area
• Review and recommend any necessary changes to existing plans, zoning, and/or
regulations
• Engage community and develop vision, core concepts, and priorities
• Assess infrastructure needs to support redevelopment
• Identify economic investments and incentives that encourage development
• Prepare examples of conceptual plans for potential site redevelopment alternatives
• Prepare financial analysis to evaluate the feasibility of redevelopment concepts
It is evident from public testimony that there is significant interest in development of this area to
achieve its full potential. Because of the transformative opportunity that development of this area
has for the City, a Study that will identify how the City can best support revitalization of the area
is an important first step.
Thank you for your consideration.
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MEMORANDUM
TO: Mayor Gabriel and Council Members
FROM: Paul Ostrander, City Manager
DATE: June 29, 2021
SUBJECT: Discussion Item – Introduction of Kenai Waterfront Revitalization and
Economic Development Incentives and Request to Schedule Work
Session
In January of this year, Administration provided the Council with two programs currently under
development – the Storefront Improvement Program and the Property Tax Incentive Program .
Since that time, Administration has continued to evaluate and develop a framework for a number
of programs focused on the long -term health of our business community. The intent of these
programs is to strengthen the economic vitality of Kenai and best serve the citizens of Kenai with
responsible management.
The City of Kenai Imagine Kenai 2030 Comprehensive Plan includes goals and objectives to
promote projects that create workforce development opportunities, implement business -friendly
regulations, taxation and incentives, and encourage the adaptive reuse of vacant commercial
buildings in the City Center and alon g the Kenai Spur Highway. It further states that the City
should develop land use strategies to implement a forward -looking approach to community growth
and development and specifically identifies the waterfront adjacent to the Bridge Access Road
beginning at Millennium Square to the City dock as an area for revitalization.
One of the greatest potentials to attract significant investment in Kenai is the waterfront area. The
untapped potential and importance of Kenai’s unique, defining natural asset near t he mouth of
the Kenai River has catalytic possibilities for large -scale waterfront development on vacant or
abandoned sites previously utilized by commercial fishing processors. The City is in a position to
provide strategic investments in infrastructure o n our waterfront through public – private
partnerships to facilitate redevelopment. However, it would be premature to propose a specific
project or respond to an opportunity to promote a project should one arise without confirming that
existing ownership, infrastructure, planning, and zoning will support the revitalization of the area.
Administration supports a feasibility study that would consider all aspects of the waterfront area
and provide recommendations for a revitalization initiative, including any regulatory or code
changes and partnership models necessary to support a revitalization of the area. This study
would also look at the economic incentive programs that are under development to gauge the
effectiveness of these programs in coordination with any revitalization effort.
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Page 2 of 2
Included as attachments to this memo are two documents that give a broad overview of programs
that administration is working on, as well as a timeline that , with Council approval, we hope to
follow over the next eight to nine months as we work through the process of development, public
participation, and Council consideration. As proposed, the Kenai Waterfront Initiative would follow
a separate process and legislation from the other economic development incentive programs,
however, providing the information on all of the programs that are under development was
important to demonstrate how the programs would work in concert to achieve the larger Council
directed vision of creating an environment for both new and existing businesses in Kenai to thrive.
In order to engage residents in developing plans for the waterfront , given the potential to transform
the area and attract large -scale investment in Kenai, Administration recommends sch eduling a
work session in early August and invite property owners and the community to gauge support for
the program and to help administration refine the scope of work for a feasibility study for the area.
Your consideration is appreciated.
Attachments:
• Kenai Waterfront and Development Incentive Timeline
• Proposed Incentive Tools for Economic Development or Redevelopment in Kenai
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KENAI WATERFRONT
AND ECONOMIC DEVELOPMENT
INCENTIVES TIMELINE
DISCUSSION ITEM:
KENAI WATERFRONT
REDEVELOPMENT /
SCHEDULE WORK
SESSION
JULY
7
WORK SESSION:
KENAI WATERFRONT
REDEVELOPMENT
EARLY
AUG
KENAI WATERFRONT REVITALIZATION INITIATIVE
Revitalization of Kenai Waterfront through public/private
partnership
INTRODUCTION:
ORDINANCE FUNDING
KENAI WATERFRONT
FEASIBILITY STUDY
AUG
18
PUBLIC HEARING:
ORDINANCE FUNDING
WATERFRONT
FEASIBILITY STUDY
SEPT
1
KENAI
KENAI PROPERTY TAX EXEMPTION FOR
ECONOMIC DEVELOPMENT
KENAI STOREFRONT IMPROVEMENT PROGRAM
KENAI COMMERCIAL BUILDING FEE WAIVER
PROGRAM
KENAI TAX EXEMPTION FOR DEPRECIATED
PROPERTY
Incentivizes significant capital investment to create
revenue and local jobs to sustain and grow Kenai’s
economy
Incentivizes substantial redevelopment of deteriorated
commercial buildings to create local jobs and/or
revenue to sustain and grow Kenai’s economy
Incentivizes local business improvements and
reinvestment in Kenai to enhance economic vitality
in Kenai
Contributes to feasibility of a development or re-
development project that provides a public benefit
INVITE PRIVATE PROPERTY
OWNERS TO WORK SESSION
DRAFT WATERFRONT FEASIBILITY
SCOPE OF WORK
ADMIN. REVIEW OF PROPOSED
INCENTIVE PROGRAMS (ONGOING)
FINALIZE WATERFRONT
FEASIBILITY SCOPE OF WORK
ISSUE / AWARD FEASIBILITY STUDY
ADMIN. REVIEW OF PROPOSED
INCENTIVE PROGRAMS (ONGOING)
INTRODUCTION:
PROPOSED INCENTIVE
PROGRAMS/TOOLS
NOV
3
PUBLIC HEARING:
PROPOSED INCENTIVE
PROGRAMS/TOOLS
DEC
1
Proposed Incentive Programs/Tools:
ADMIN. WORK W/ FEASIBILITY
CONSULTANT UNTIL REPORT FINAL
ADMIN. REVIEW OF ARPA FUNDING
GUIDANCE (ONGOING)
DISCUSSION ITEM:
KENAI WATERFRONT
FEASIBILIY STUDY /
SCHEDULE WORK
SESSION
MAR
1
WORK SESSION:
PROPOSED INCENTIVE
PROGRAMS/TOOLS
MID
OCT
INVITE LOCAL BUSINESS OWNERS
TO WORK SESSION
FINALIZE DRAFT PROPOSED
INCENTIVE PROGRAMS
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Kenai Property Tax Exemption for
Economic Development
Incentivizes significant capital
investment in Kenai to create local
jobs and/or revenue
Proposed
Incentive Tools
For Economic
Development or
Redevelopment
in Kenai
City of Kenai Proposed Incentives
Kenai Commercial Building Fee
Waiver Program
Contributes to feasibility of a
development or re-development
project that provides a public benefit
Kenai Tax Exemption for Depreciated
Property Redevelopment
Incentivizes substantial
redevelopment of deteriorated
commercial buildings
Kenai Storefront Improvement
Program
Incentivizes local business
improvements and reinvestment to
enhance economic activity and vitality
Kenai Waterfront Revitalization
Initiative
Revitalization of Kenai Waterfront
through public/private partnerships
EXAMPLE 2:
Significant New
Waterfront Development
EXAMPLE 1:
Substantial Renovation of
a Deteriorated Building
Imagine Kenai 2030
Comprehensive Plan
Objectives:
ED-1 ED-2 ED-2 ED-5 ED-2
ED-2 LU-4 PF-1ED-1 ED-2
ED-1 ED-2 ED-5
LU-4 PF-1
Substantial Renovation of a Deteriorated Building
Project proposes a substantial redevelopment of a deteriorated commercial building in Kenai that is non-compliant
with City building and property maintenance, incentives enable the project to move forward, the economic feasibility
of the project has a long-term economic viability, will create additional employment, and provide public benefit.
Significant New Waterfront Development
Project proposes a significant capital investment in Kenai that requires a public/private partnership to move forward
and the economic feasibility of the project has a long-term economic viability, will create additional employment, and
provide public benefit.
Imagine Kenai 2030 Comprehensive Plan Objectives:
ED-1 ED-2 ED-5 LU-4 PF-1Promote projects
that create
workforce
development
opportunities
Implement business-friendly
regulations, taxation and
incentives to create a stable,
positive climate for private
investment
Promote adaptive reuse
of vacant commercial
buildings in the city center
and along the Kenai Spur
Highway
Review revitalization
strategies for the area
adjacent to the Bridge
Access Road beginning at
Millennium Square to the
boat landing
Ensure that the installation of basic
public infrastructure (roads, sewer,
water, and drainage) is coordinated with
development and that improvements
needed to serve the development are in
place at the time impacts occur
9
KENAI WATERFRONT REVITALIZATION
AND ECONOMIC DEVELOPMENT
KENAI
Proposed Project Information for Work Session
August 4, 2021
The Kenai waterfront presents a transformative opportunity for economic development and community
enhancement. This study will evaluate the revitalization of the Kenai Waterfront area, including opportunities
for core economic investments and incentives, public-private partnerships, and a comprehensive
assessment of how the area can best serve the community of Kenai in the future. The feasibility study will
evaluate constraints and opportunities for the area, along with risks and costs.
PURPOSE OF STUDY
Evaluate market conditions and identify opportunities for potential revitalization of the area
Review and recommend any necessary changes to existing plans, zoning, and/or regulations
Engage community and develop vision, core concepts, and priorities
Assess infrastructure needs to support redevelopment
Identify economic investments and incentives that encourage development
Prepare examples of conceptual plans for potential site redevelopment alternatives
Prepare financial analysis to evaluate the feasibility of redevelopment concepts
ELEMENTS OF STUDY
KEY OUTCOMES
Understanding of risks and opportunities related to redevelopment of the area
Redevelopment strategies and concepts to revitalize and incentivize development of the area to
maximize the potential of the area to support a thriving business, residential, recreational and
cultural community
Recommendations for any necessary zoning or land and development code changes and potential
economic incentive programs
Implementation plan to guide redevelopment in the future
KEY QUESTIONS
What is the community's vision for
this area?
How does redevelopment of this area
fit into the community's goals and
objectives
What types of uses are most
appropriate for this area?
How can the City best support
revitalization of the area?
For more information contact Assistant to City Manager
Christine Cunningham at 907.283.8233 or
ccunningham@kenai.city
AREA INFORMATION
Size: 160 acres
Uplands: 138 acres
Tidelands: 22 acres
Zoning: Heavy Industrial
Infrastructure:
State Maintained Bridge Access Road
City Water and Sewer Along Highway
Natural Gas/Electric
City Dock
KENAI WATERFRONT
REVITALIZATION AREA
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