HomeMy WebLinkAboutResolution No. 2021-63KENAI
CITY OF KENAI
RESOLUTION NO. 2021-63
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 SCHILLING RENTALS, LLC ON GENERAL
AVIATION APRON SUB NO. 1 AMENDED LOT 2, BLOCK 3.
WHEREAS, the lease to Schilling Rentals LLC, for General Aviation Apron Sub No. 1 Amended
Lot 2, Block 3 expires on June 30, 2022; and,
WHEREAS, on August 18, 2021, City Council approved the Schilling Rentals, LLC, temporary
development incentives application, where credit for eligible work activities may be applied
towards rent for a maximum of five (5) years; and,
WHEREAS, on July 1, 2021, Schilling Rentals, LLC submitted an application to renew a lease of
City owned properties within the Airport Reserve, described as General Aviation Apron Sub No.
1 Amended Lot 2, Block 3; and,
WHEREAS, the Schilling Rentals, LLC lease application states plans to remodel/expand the
existing hangar, upgrade parking apron/pad, to accommodate an FBO and act as a medevac
service location; an investment of an estimated $1,500,000 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 Schilling Rentals, LLC; and,
WHEREAS, at their regular meeting on October 13, 2021, the Planning and Zoning Commission
reviewed the lease application and recommended approval by the City Council; and,
WHEREAS, at their regular meeting on October 14, 2021, 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,
as follows:
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 Schilling Rentals, LLC,
Lessee, as follows:
Resolution No. 2021-63
Page 2 of 2
Lot improvements as outlined in lease application from Schilling Rentals, LLC, remodel
and expand the existing hangar, upgrade parking apron/pad with an estimated $1,500,000
value of improvements to be completed within two (2) years of signing the lease;
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;
Paving will be completed up to the existing transient aircraft apron pavement;
Schilling Rentals, Inc. 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. That this Resolution takes effect immediately upon passage.
PASSED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, this 31 day of November, 2021.
ATTEST:
BRIAN GABRIEL SR.. MAYOR
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KENAI
City of Kenai 1 210 Fidalgo Ave, Kenai, AK 99611-7794 1907.283.7535 1 www.kenaixity
MEMORANDUM
TO: Mayor Brian Gabriel and Kenai City Council
THROUGH: Paul Ostrander, City Manager
FROM: Ryan Foster, Planning Director
DATE: October 25, 2021
SUBJECT: Resolution No. 2021-63 — Approving The Execution Of A Lease To
Schilling Rentals
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.
On August 18, 2021, City Council approved the Schilling Rentals, LLC temporary development
incentives application with an estimated value of eligible work in the amount of $150,000. Credit
may be applied towards rent for a maximum of 5 years.
Schillings, LLC proposes to remodel and expand the existing hangar, upgrade parking apron/pad
with an estimated $1,500,000 value of improvements to be completed within two (2) years of
signing the lease. Activities noted on the application is a medevac service location. The requested
lease term is 45 years.
Pursuant to Kenai Municipal Code 21.10.060 Lease application review, notice of the 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 October 16, 2021, 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
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:
I
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, "To be the
commercial air transportation gateway to the Kenai Peninsula Borough and Cook Inlet."
The proposed use by Schilling Rentals, LLC complies with the Imagine Kenai 2030
Comprehensive Plan by supporting development on lease lots with development that 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 Schillings, LLC complies with the Airport Land
Use Plan and would enhance local economic development.
The Planning and Zoning Commission recommended approval of the lease application at their
meeting on October 13, 2021. The Airport Commission recommended approval of the lease
application at their meeting on October 14, 2021.
Thank you for your consideration.
Attachments:
City of Kenai Land Lease Application from Schilling Rentals, LLC.
Aerial Map of 110 FBO Road.
Page 2 of 2
The City of Kenai I www.kenai.city
City of Kenai Application for: x New Lease
Land Lease Application — Amendment Extension
Assignment Renewal
KEW xn Application Date: 6/11/21
Applicant
Name of Applicant: Schilling Rentals LLC
Mailing Address:
PO Box 3426
City:
Kenai
State:
AK
Zip Code:
99611
Phone Number(s):
Home Phone:
Work/ Message Phone: 907 283 7556
E-mail: (Optional)
duane@uptownmotel.com
Name to Appear on Lease:
Schilling Rentals LLC
Mailing Address:
PO Box 3426
City:
Kenai
State:
AK
Zip Code:
99611
Phone Number(s):
Home Phone:
Work/ Message Phone: 907 283 7556
E-mail: (Optional)
duane@uptownmotel.com
Type of Applicant: i Individual (at least 18 years of age) I Partnership Corporation I Government
lx Limited Liability Company (LLC) I Other
Property Information and Term Requested
description of property (or, if subdivision is required, a brief description of property):
GENERAL AVIATION APRON SUB NO 1 AMENDED LOT 2 BLK 3
110 FBO Road
Does the property require subdivision? (if Yes, answer next two questions) R YES R NO
Subdivision costs are the responsibility of the applicant unless the City Council
determines a subdivision serves other City purposes:
1. Do you believe the proposed subdivision would serve other City purposes? L YES U NO
2. Are you prepared to be responsible for all costs associated with subdivision? L YES U NO
If an appraisal is required to determine the minimum price on the land, are you prepared to be
responsible for the deposit to cover costs associated with appraisal? (The cost of the appraisal L=J YES
will be either refunded or credited toward the purchaser at closing)
Are you prepared to be responsible for recording costs associated with lease execution? Ux YES
Do you have or have you ever had a Lease with the City? (if Yes, answer next question) N YES U NO
1. Legal or brief description of property leased:
125 FBO/130,135,145 &155 Granite Point/433 N Willow/441 Geebee
Request a Lease with an Option to Purchase once development requirements are met?° R �°0a°",,mMPWF YES r NO
Requested term for Initial Lease or Renewal (based on Term Table, not to exceed 45 years): Max avaialble
Requested term for Lease Extension (based on Term Table, not to excee total of 45 Years):
Requested Starting Date:Subject to development Credits
CITY OF KENAI
DATE 7-1-zf
PLANNING DEPARTMENT
Proposed Use and Improvements
0
Proposed Use (check one): ■I Aeronautical Non -Aeronautical
Do you plan to construct new or additional improvements? (if Yes, answer next five questions) L YES LINO
1. Will the improvement change or alter the use under an existing lease? F YES I:xl NO
2. What is the proposed use of the improvement? Ugrade hanger and parking apron/pad
3. What is the estimated value of the improvement? $1.5m
4. What is the nature and type of improvement?
Remodellexpansion of existing hanger to accomdate FBO
5. What are the dates construction is estimated to commence and be completed?
(generally, construction must be completed within two years)
Estimated Start Date: ASAP Estimated Completion Date: January 1, 2022
Describe the proposed business or activity intended:
Medivac service location
How does the proposed lease support a thriving business, residential, recreational, or cultural community?
Medivac provider will station flight and support crew locally as well as provide additional medical emergency
oportunkies
Lease Assignment Only: What is the name of the individual or legal entity the lease is to be assigned?
Lease Renewal Only
I Renewal of an Existing Lease (at least one year of term remaining): Requires new development
Lease Temt based on: Estimated cost of new improvements and I Purchase Price (optional)
I Renewal of an Expiring Lease (less than one year of term remaining): Does not require new development.
Lease Term based on: r Purchase Price I Professional Estimate of Remaining Useful Life
—7 Fair Market Value appraisal and/or -1 Estimated cost of new improvements (optional)
Requested Term for Renewal Based on Term Table, not to exceed 45 Years:
Submitting an application for a lease does not give the applicant a right to lease or use the land requested in the application. The application
shall 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
lease, 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 speck findings as to why a lease renewal, extension, or amendment is
not in the best interest of the City
Signature:
Date:
15/11/2021
PfintName.
NVC_Yljg�� 5i.%1,t��111
Title:
Managing Member
For City Use Only: Date Application Fee Received:
O General Fund O Airport Reserve Land Date Application Determined Complete:
Airport Fund ❑ Outside Airport Reserve 30 -Day Notice Publication Date:
Account Number. City Council Action/Resolution:
KENAI
110 FBO Road
General Aviation Apron Sub No. 1 Amended Lot 2, Block 3
Parcel 04324024
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LEGEND C
4 Subject Parcel
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0 25 50 Feet
Date: 8/6/2021
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