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HomeMy WebLinkAbout1986-01-22 Council Minutesr VERBATIM 1-22-86 Council Meeting I'm Dan Asset I have the Uptown Motel and I'm here on the lease and purchase of the property where we are building the new motel. When I came before you Polka 9 months ago, I came with a plan to build a motel valued at $9409000, a cinema was the sacood phase to come the following ear at $650,0009 a roc center !a the future from there for 119030,0009 which comes to $2,6209000 Improvements, I have spent over $300#000 already on the property. I have an appraisal from a MAI appraiser here, the proposed project that I am proposing now with the change will be $3,250,000. That is $6309000 more on the first phase then the proposal on all three phases before. One of the reasons is there have been two movie houses put in on K Beach, two more are coming at Kambe and three are coming, according to the sign down in Ridgeway. Fred Meyer, I understand isn't coming as they ware going to do, HEA is doing 1/3 of their project, I understand and the City's Community Center, I don't think they are going to perform too good on it yet as to when it was supposed to be done. All of this has a bearing on what I was doing. I'd like to have Dane, the City girl or someone to ask Dana if I wasn't told at a meeting I had with Brighton and the City Attorney that the release clauses and this wasn't the some as Dave Brown's the other day in a meeting we had a Mr. Brighton's office. Dana Gerstlauers I'm sorry, I didn't follow the question. Don Asses Was I not told that the release clauses and like 14 wee the some as Dave Browne, the other day? Dana Gerstlauers No, we said that we drew the percentages from the total sale price, like we did for Dave Brown. Don Asses OK. Dave Brown's property I think wee $2210900, is that right? Dana Gerstlauers I don't recall the total amount. Don Asses 15% down, left a note of $1000000 which you've got broke into the release olausee hare. After you take the down payment off there, they broke the release clauses down by the square footage of land, the some as they did when I built the Uptown. When I come in, they told me that I'd be paying $949000 down, the release clauses on 1.6 acres was... I paid $627 000 for the property, the release clauses an the first lot which f said was $71 000 square feet or an acre and six tenths was. I'll be paying ;94,000 and $219,$37.50. if it was figured on the square footage I'd be paying the $94,000 down and $143 702, which is a big difference. I'd be paying $309,000 or something. I was Verbatim - Donald Ames Page 1 Lj willing to go along with that and go ahead with it, but we got alipped in here on this release clause that ties my hands completely on 16 I guees it is now, they renumbered it. I've got to have the building there before I can have any release clauses. ` There is no lending institution In the world that will loan money and have a cloud on the titlri. I am have to ask you to change : that, definitely change the thing so that I don't have problems ' with the City Attorney anymore. I turned this thing in on November 25, 19B5 requesting to purchase it. I've had beautiful weather that motel should be standing there right now, the only reason that it isn't is sitting over there. It took me over six if I'm weeks to get the paperwork out. I definitely need it now going to do it. I can't let someone slip something in that - - messes the projeot up. I haven't got another month, I meet with the liquor board the 29th. ADA has been sitting, waiting on this thing, I've had all the extensions I can have. It's up o you _•-;�-� -. folks whether I go ahead with my motel I gueae. The appraisal Is here if you guys would like to see it. City Attorneys First, I take exception to the turnaround and any c id. - _ ' time being attributable to the City. Dana? Dana Gerstlauer: As clarification, the reason it has been held up so long is because of a replat on the property which has been -.. held at the Borough pending some street name chengso. That release wee gotten on Monday of last week. The final plat was a signed yesterday and recorded. Until that was signed and recorded, and this brought before Council for the partial releases, we couldn't complete the sale. It hasn't been held up at the City. • h City Attorneys For the Council's clarification this property was 4 first acquired by Mr. Asses correct me Dana if there is anything you went to clarify, as a parcel under lease which he then wished to purchase. We have subsequently had a replat of the section of the property and when he indicated that he wanted to purchase it, to have we rers also informed that he would went us to allow him partial reconveyances or partial releases. On pas 1 of Exhibit "A", peregreph 11 provides for partial releases of the property. The lots with the corresponding dollar amounts are based primarily, to the beat of my recollection, on the appraisal that : ....... wee given to the City by the appraiser of Don Aase. Isn't that right, Charlie? Finance Director Charles Browns I do not know who ordered the appraisal. City Attorneys Done, were we provided with appraisals by an appraiser of Don Aase? Done Gerstlauer: Yee:°- City Attorneys We took his percentage figures that were given,„�= for each one of those lots to determine how much of the price then would be attributable to each lot. Percents as created the ? : Paragraph 14 dollar amounts. We used their figures exactly, P that Mr. Anse objects to requires merely that we incorporate the original representations and promisee made by Mr. Aaee insofar as the development schedule of those lands are concerned. Mr. Anse now wants lot 79 I understand, released. Lot 7 being the lot on V i which he proposes construction. If lot 7 is released, I indicated to him, my concern would be that there would no longer be any compulsion to complete the schedule as originally represented and that was why I put paragraph 14 in there. The City has in the peat subordinated their interests for purposes of financing, I don't know if Mr. Aeae has explored that possibility or not, but et this juncture and as represented by him at the o meeting this past week, it is his desire merely to have lot 7 _ released upon payment of the proportionate purchase amount. I can't recall what other derogatory matter: you brought up that I _. want to respond to. Don Asset I don't think it was derogatory, just the Pacts. City Attorneys I disagree with your perception of the Pacts. Mayor Wagoners Let's just tend to business at hand. Don Asses One thing I would like to say, if I could. I can't build the cinema and without Fred Meyer going in first, I'd be absolutely lyingg to you telling you I could put a strip mall In there and make it be feasible now. Before I could stand here, -:`- there weren't the cinemas here, I had someone interested in a cinema and the rest of it was Passible. I'm hear to ask to have it changed. That's the size of it. I don't went any more etringe atteehed that I have to stand up here and make a committment that I can't live by. I'll spend more money that I was going to opend on the original whole development on the one a `: project and certainly in the future, if someone can show me that someone is developing across the street, I'll be ready to develop»` then. Until that time, its..... City Attorneys I advised the City Manager that this was not s matter that should be handled administratively by his. Rather, er��--= matter that should either come before PH or this Council because there IV a Proposed change to the plans. It has been represented that the dollar amount to be expended will exceed what was originally contemplated, the construction, the type of construction and the type of businesses that will be put on the _ ~� lands are different then what was incorporated into the lease documents, as per the last page of the Exhibits which repr sent the lease application which I assume we incorporate into gloss losses. It is a matter for the Council or PH to approve. I told Mr. Anse that. I was asked by the City Manager to sit in on Verbatim - Donald Aeee Page 3� :.L: a meeting and I told him that then, I told the City Manager then as well as previouely and that I understand is why we are here tonightg at least partially. The other thing being that he does not want the clause contained in there, paragraph 14 that I have put in and have refused to take out. Should the Council want to take it out, that's there preogative. Administratively, through the legal department, we will not take that out without being told to by the Council. Mayor Wagoners Mr. Brighton, do you have something? O D • City Managers To say again basically what Tim is saying, is the City Manager has under certain circumstancea, the ability to authorise partial releases of land under the circumstances that ...t, there is substantial construction started. The attorney advised me that since there was an actual change from the original presentation, that under those circumstances I probably should not administratively do it. Therefore, Don Asse has come to the Council asking for that partial release on that particular lot for his particular purpose. I don't think there is a problem with the financing or the calculations from the finance department, but that does not release any other replotted lot in :.,`_ •o.. that area. If he wants partial releases on any other lots hole going to have to come back to this body to get that consent. Don Asses That isn't exactly the way these things have been done before, Bill. Looking at Dave's here, it's spelled right out, looking at mine should be spelled out. :_:..°o:. City Managers Don, the technical difference between yours and Deve's it that his original plats and/or proposals have not a changed. Yours have. That is the significant difference between ,a yours and Dave's. `'. "o..� .:. ,,: • Don Asses 100%. We are talking about two different hases here. If the Council will grant that, then we should be at he release clause. If they are satisfied with me spending $630 000 more then I would have on the other project, then we shoo d get to the release end of it. The release clause and of it. Ca" Manager: Don, I'm not sure I really follow what you are `.., esyng. Let me restate what I'm saying and see if that complies. Your concern at this point is to get a partial release on lot 7. " Don Asses And not to have any more stuff slipped in on anything @lee that I do, like that 14 to where it ties you up. City Managers I think my original statement woe that if Council agrees to give a release on lot 7 because you have substantial investment on lot 7 and are prepared to go ahead on lot 7, I ust y.=. 3c went ahead and said for you to get a partial release on any o the other lots, you'll have to come back in here with a proposal Verbatim - Donald Asse - Page 4wwww n V n.: o T : u = .. .V ..- -•-- _ _ -.=-ram: r.._ —A3 _ _ __ __ '-, -=Tr -. ___c_--�..----.- _-�-_._ .._..__--. - ._—_ .-- .. _ n _ _ 0 J to cone back in here with a proposal on whet you're oing to cut ' on those late and have substantial aunc:truction on ig beforehe Council will consider giving a release on any other Iota in the whole plot. That's all I was trying to say. Don Asset I don't think we quite have the some idea yet.. - City Managers Let's just go back to your original question. You are asking at this point in time for the Council to grant a partial release on Lot 7. _ t _ Don Asses I also want to be able to look in this thing and say on lot 6 is so much and i decide to start a mall there, I've got to go before planning and zoning before i can do that, but i don't went to have to come back to Tim to have anything also. i . want to have it spelled out like they have it stalled out for V i- Dave and they've got it spelled out here so that I don't have to; -,=- go back there and fight again. City Managers Under normal circumstances that would not happen, but the Attorney has to address each one of these items as they come on the basis of the circumstances connected with each one of >� those items. For us guarantee you that at this point... we can't V> " do that. -'- City Attorneys What he is wanting is a partial release clause as u. to all of the lots without any requirement for construction, is that correct? Don Asses If I spend $3,000,000 on that lot, yogi it should be granted that way. S City Attorneys Excuse me, you went no compulsion in the documents prior to the expenditure of the money or the building of the structures. Don Asses I think maybe I can explain it this way better. I've t got over $300,000 out of my pocket up there and if 1 had it back - in my pocket I would gladly go away. I don't went to run into spending, going into another lot, I went to know it's released _ and know what I'm doing. City Attorneys The original documents said this construction77 would be completed, under a lease document, Under a sale document we are saying complete the construction. He is saying he dose not want the obligation in the sale documents that -- -= --. require him to perform any specific construction as a "1 to -condition to getting a release on any property. That Is _........gouncil preogetive if you wont to do away with the construction requirements. Verbatim - Donald Asee Page g ra3. ...X,c'.t,;.- �_,_...__.�d$dl.�'u_'Qlb-;.�-:.1,:1 .�.iii._... - "J'•-. .. .-i�r• r S� .n o r ,t j u Mayor Wagoners Councilmen Wise? ;. Councilman Wises i apologize for coming in late Don, and to the rest of the Council. I'm a little confused. I understood that we entered into a lease with Mr. Aase with a multi -phased Q project. If my reading of the ordinances of the City of Kenai are oorrect, only after substantial improvement can a negotiated sale be entered into providing the appraisal is within 6 months of the date. Have eubstentiel (end of tape, rest inaudible) TAPE 51DE P2 City Managers What has happened, we have entered into a lease agreement under certain apecifications... o Councilmen Wises That's not what I'm talking about, I'm talking about the sale Mr. Brighton.... City Managers You asked me, I'm going to try to explain it to you Councilman Wise if you will permit me to. Since the lease, =- the whole area has been replotted and is not longer in compliance with the original lease. That being the fact, he is now asking for a release on a particular lot. Councilmen Wises You skipped something. Have you agreed to Bell, as City Manager, as vested by the appropriate codes, have you agreed to sell this property to Mr. Anse on the basis that : substantial improvements have been made, yes or no? n Cityy Manager: I have not agreed with Mr. Anne to sell this Per tioulor lot on the basis of substantial improvement. However, if there had not been a replat and a change from the original document, I would have done that very thing. Because of the intervening circumstances I'm not going to take it on myself to give a partial release on a lot that the Council has not agreed ¢, to the platting on. If I were to grant a partial release under those circumstances, you could hold me liable for not following the first plat that was laid down. It hoe therefore come to this body for this body's decision to whether to permit that release. -;:;, Councilmen Wise: If the City has agreed to sell, which apparently we have or we wouldn't be faced with this issue before us. issue is to one lot. The Cityhas over partial release relative agreed to sell based on substantial improvements to the property _^. p• :s.m which I believe has occurred and if the buyer, Mr. Aase could consummate that sale in cash, we would have no preogative whatsoever but to let him continue on his merry way. I don'! understand how...you are saying in effect that we won'! give title to the roperty even if he pays off the entire debt until he dose something to �he he has in his property that put original lease documents. I think its foolish. ' _ Verbatim - Donald Aase Page ii,-•, �_�. _ r'tth3�lka Hip.., , : sr�":4 - .. �. , ? �-.i �a^a-. .. tit : . . - ... .. _ •"C5"` `f�1i w. qj. :I w-. Mayor Wagoners As I remember when Mr. Anse come in, this was one piece of property that at that time still had Marathon Road running through it, it had reverted back to the City so the City could release it after Hutchings had had it tied up. Mr. Anse came in with three different projects on one parcel oP property at that time. It was all one parcel of property at that time. The way I understand it now in the meantime...have you initiated the replotting Mr. Anne?-:_ Don Asse s Yes. Mayor Wagoners Mr. Asee replotted it into eight lots and so I 3 gguess Councilmen Wise I'd have to ask are you saying that on chose eight late by the clearing and filling etc., that this is r9=- substantial improvement? Councilman Wines The only one that can make that determination -. - ,--- is the City Manager. He has to make the determination to enter into a negotiated sale or it has to go auction. Don Asses That's the time I came to talk to Bill and I don't know if Bill remember, but I think he dose..I said $909000 worth of improvements on this property. It wee a 7 acre lot and there =• wee no argument about that figure and I think that Bill will - remember. As I've said, I've spent over $3009000 and I can give you the receipts on it if anyone wants to follow me back over to , the motel. It is not like I'm in here and spent half of what I - said I would do. I've spent way more and I'm spending more then n the whole project would have been. Mayor Wagoner: Maybe I just don't totally understand. I went to ask one other question of Mr. Asee. Are you saying basically you've got substantial improvements on all the Iota, especially the one? With other improvementa on the other? Therefore you .` y feel you've done enough to have the City to allow you the _ ability, once you've started a construction project if it Is approved through the Planning and Zoning and Landscape Board, ate, :x Don Asset Absolutely. Several voices, inaudible. Mayor Wagoners Why did you feel you had to go back to Planning - — — and Zoning if you had the right to buy it? Don Asses Why would I? Don't they have to ok the design of the building? Mayor Wagoners Landscaping does, but not planning and zoning. Verbatim - Donald Anne Page 7 Dan Asset Landscaping does the design of the building? I didn't know It. I thought I had to go before Planning and Zoning. Councilwoman Bellies They don't. Don Asset I just didn't know my way around. Mayor Wagoners Just the landscaping, not the building design. City Managers Mr. Cheirmen, this probably would not have been here had he not replotted the property. The document is altered from the original document. That is my reluctance. On that one particular lot I think he has enough improvement for the Council to grant him a partial release for the purchase of that lot. I did not want to put myself on that limb because of the alteration of the single lot of 7 acres and now it's 5 or & lots because the original agreement was for a single lot. I don't think there i enough improvement on all 7 acres to give him a release on all p! acres. I think there is enough improvement on lot 7 that he wants released to go through with the transaction of the sale on that lot. If he were to ask for releases on any of the other lots, he's got to go somewhere with a structure, what is going to be on that lot, and then start the construction of that facility before he can ask for a release on any of the other lots. If it wasn't for the alteration I would have probably ok'd it. I was not wanting to put myself in jeopardy on the basis that it's now different from a single lot to 7 lots. Mayor Wagoners Let me just interject just one more thing. As I remember beck when we discussed this before Council previouslyr I think someone in the Council asked Tim what would happen say if you built the hotel unit and not the other projects and you said at that time that it would probably be a subdivision by cye court. In other words, the City would not be able to take back, the court would not allow the City to take back the hotel improvement but they would probably subdivide the property end give the other back. Wasn't there some statement like that? City Attorneys I don't know which transaction I may have mentioned the possibility of a court petition under certain circumstances but I don't think it was in conjunction with this project. If there is deemed to be substantial improvements by the City Manager, if in fact lot 7 is allowed a partial release and if Council wanted restrictions as part of the negotiated sale with Mr. Asset we would redraft another 14 to say something to the effect that construction would have to be proposed, plane presented, stool satisfactory to the City prior to a partial release on each one of those iota. Council may not want to burden Mr. Aess with the requirement of having a structure or Verbatim - Donald Asse Page 8 u _ ;... . tE"t, �. IS. .. lam. �$...:...: i •. substantial performance as to each one of those Iota prior to partial release. That again is the preogetive of the Council and I told Bill that I did :at think it was his preogetive and it was something that should came to Council Mayor Wagoners Councilwoman Sailie you have a Question? Councilwoman Bailie: Well, yes I do. I have a problem in regards to this, Don in that number 1, you are saying you era prepared to put more money into the project then you were originally and yet that will probably not include a theater or recreation hall or strip mall. You are asking for release of lot 7 to apparently build this, I assume it Is a motel or whatever. We have no idea what it will look like, nothing at all. Once we were to give this partial release of the land for the sale, we would absolutely hove no say whatsoever in what goes on that particular piece of property. I am uncomfortable with that. I am not saying necessarily that you would not build a lovely motel but there is something nagging at the back of my mind that we just we completed a project of the bowling alley where one particular set of plans was placed before us and something different was built. I'm not saying that is what you would do, but I think for us or myself to sit here right now and to just give a blank check to you without seeing any kind of a plan for whet you have to develop. I myself am not comfortable with giving that tonight. Mayor Wagoner: I don't know if you were here... I thought you brought us some plans on that. Councilwoman Bailist I'm sorry but I haven't seen them. Mayor Wagoners You may have been on vacation. Mr. Aase has already presented a plot plan and an elevation plan and everything of his hotel unit. Councilwoman Boiliet For the new one that is proposed with this? I apologize then, where was I? I wasn't aware of that and I didn't see anything down here on it. Don Asset I've had the land on the Uptown leased and I built Ito and I don't think it's a bad looking structure. I don't think that -the City can Bay that I've ever missed a payment or been late with one. Councilwoman Beiliet No and I hope that you understand what I an saying and I apologize that I was not privy to the other design that you had. I apologize to you for that. At the some time..... Verbatim - Donald Asse Page 9 a A Councilman Mousiest I don't have a problem with lot 7 or the release on that, but the only thing that I am a little hesitant about is not leaving some kind of restrictions on those other lots since you are not required to go to planning and zoning to present any kind of plan of development that there are no restrictions at all when you negotiate a partial release with the City Manager without anybody knowing what you intend to put on that lot. That bothers me a little bit that we would eat anyone up in that kind of position. Like you said you could come in and' ask for a partial release on lot 2 and put a quonest but on it as long as you landscaped it and the landscaping met the landecaping board, I don't see that there would be anything that anyone could do about it. If we take all those restrictions away. City Attorneys Nor would there be any timetable for construction required. Don Asset In the pest has anything like this ever been put into one of these things? Meyor, Councilman Measles: Yee, you bet. Councilman Wises I am really confused. What it appears to me the logical response is, is that the lease should be rewritten to provide for late 1-6 and lot 6 to remain under lesse, under the lease provisions and lot 8 should be permitted to be sold under negotiated price and gotten over with. That would leave the other lots under the same control they have right now. The argument or the question I had earlier wool had substantial completion occurred or had substantial construction occurred. I a �' don't think there is too much of a question that over the entire 7 acres the answer is no. However, the document as proposed here is absolutely invalid. I don't believe you can agree to -'�;,•.`. sell something to somebody and say even iP you pay me you can't build on it I won't give you a deed. I don't think that will ever Ply in any court in the land and I think it Is foolish to et into it. If we went to , we simply'� g protest ourselves - renegotiate the lease to have lots 1-6 and lot 8 continue under •- lease at the old a p p raieal under which they were originally drawn ; up as modified by the extraction of lot 79 assuming the values as listed here are appropriate, and that lease continue and payments continue to be made and a separate transaction be made for sale - with substantial improvements on lot 7 and everybody has the controls and everybody hoe their title as is necessary. City Attorney: It is your suggestion that that be continued as one lease ad to lots 1-6 and t_nt g or that we draft separate leases as to each one of those lots. ° Councilman Wises I was thinking of just revioing the lease. hove no problem on either manner of approach.. Verbatim - Donald Aese Page 10 ... .. :C - ` t- -- Y F i City Attorneys And then it is oleo your thought that there would be no construction schedules of course, or requirement for rx. Improvement of those lots but rather if he did make substantial Improvements on any one of those late, then he would be subject to the negotiated sale provielon, otherwise should he went to purchase they would go bid. Councilmen Wise# I think the lease would have to be updated periodically with the proposed schedule of construction and the Council and Planning Commission have been extremely lenient based an circumstances in a lot of cases, maybe beyond the control of,the individual lessee to extend their time. We've done that, we did that last meeting, or maybe the Planning Commission did that last week. We have done thie habitu 11 o all kinds of people who have problems meeting their constru�ton schedules based on the fact that things do change. Interest -- -- rat sa changed, economic activity changes and so'forth. 1 think this that certainly Don has pointed out that story that was released by the Administration, of Fred Meyer wanting to defer �..: :. •_ their action, we are going to have to look at that. The Fred Meyer lease has a timetable to it and if they don't meet it they've got to come in ..... U2.� :`.4 Mayor Wagoners Let's stick with Mr. Aase's lease. Councilman Wises I'm speaking of the process. I would have no problem with the Administration and Mr. Aase getting together and whether they want individual leases tar lots 1-6 and lot 6 or collective lease, it doesn't bother me. Whatever the Administration and Mr. Aese can work out. Donald Asses I'm not interested in leasing these proparties, I'm interested in buying them. I've got 50 more units down the line propposed as soon as the thing will go on adjoining the motel. 1 wouldn't need that property if I had enough room over here. I don't have so I'm not going to get caught up there again, short f ?v of property. Mayor Wagoners So you are saying right now that you went the ability to buy all 8 lots at this time. Donald Asses Absolutely. That's the way that this hing was drafted up that I looked at. It was something like 9A,0000 down and the one they drafted me was $2199000 but I unde stand that 3009000 that ----'' ---- - there has been a change in it and it would be over I'd be pa in out of my pocket to get one lot released on a total 627,000. price of Councilman Wises I understand Don's reason and I don't disagree down " l``•:=A with it, the economics are there. However, we just turned an ordinance requested by the FAA pertaining to these type of lands, non -aeronautical lands and in the packet tonight we have Verbatim - Donald Asse Page 11 J :J u L ., . ... .. . . _ F what I would consider a nasty letter from the FAA and the basis of a negotiated sale based on current opprsisal is a given situation. First of all we say we will negotiate a sale when sW"tantial improvements have occurred. WFiat Dan Is doing by thisp if we acquiesce in-toto I'm not talking about the partial release now, we are setting a value on tFiat land which he can parry. at 155 down, 101 interest for 20 years, which In exactly contrary to the argument of the FAA. The argument that the Administration has raised In supporting the FAA.' There��sre a couple of other criteria too: Is the appraisal lose then 6 months old? I doubt It, this ppropert has-been appraised and the lease entered into a considers Is per ad ago. City Attorneys The appraisal is current. Councilman Wise? It's within 6 months? I stand corrected, fine. Howeverp no on lots 1-69 late say9 I would say we would have to agree that substantial improvements have not occurred within the meaning of the code. If they have occurred within the meaninhgoF the code and is certified and agreed to by the City Manager, Shen the sale should take place and partial releases should be permitted and number 14 is garbage. Number 14 Is garbage anyway. Donald Asees Of the money spent, the foundation that is in up there cost me $54g000# the foundation itself. The rest of the over $300,000 has been spent on dirt work on the total area. At the time when I came in and talked to Bills I think that Bill will remember that I wanted to clear the whole thing and do the whole thing at one time. Couneilmon.Measloes Just for my elarifieation...if Don had not replotted the property and with what he has done on the property at this point, if he had come to City Hall for a negotiatedsale on the entire piece of property, would what he has done at this point be considered substantial improvement to qualify for a negotiated sale. City Managers I think I just made the statement a while ago that In my opinion there to substantial improvement on that lot. Mayor Wagoners That isn't what Councilman Measles asked. City Managers Just let me finishp please. Noweverg I didn't think..ap..to ,the whole 7 acres that would justify enough completion for a transaction of sale on the whole thing. Donald Asses It was the whole 7 acres though we talked about $9000009 Bill. City Msnagers If there had been no alteration in the original request for the lease that was ok'd by the Council by struoto0es cry that 7 acres and we would have entered into a negotiated saleo Varbstire - Donald Aese Page 12 that document would have forced him to performed on all of hie proposals on that lot, is that not correct? Wouldn't we have written that into the document? The sale document would have ppicked up the lease document which said he wee going to build this, this and this. Mayor Wagoner# That's where it goes back to what I said. I remember we discussed it and we talked about what Tim said the court would petition the property, and it was this pLaos of property we discussed. Mr Aase said he couldn't sit here and sweet that he was going to be able to do all of his go as proposed according to the time lines. At that time he was talking to people who were considering do that. Is that not right? Donald Asses Right. Mayor Wagoners I think the minutes, if we went to go back to the minutes, would substantiate that. I think what Mr. Measles wants to know is the some thing I went to know. At the time before his replatting of this property, if the fact that he has done 360,000 worth of improvements, why would that not be substantial Improvement? Maybe that is the way to direct the question. I do know that the City has allowed release for a lot lees money spent on substantial improvements then that in other cases. City Managers I guess we are at the point where we are at an arbitrary decision about what is or what is not. An objective calculation. We have perhaps allowed sale transactions on perhaps less investment but on a substantially less amount of real estate. A lot as opposed to 7 acres. There is a substantial difference at that point. Councilman Massless I can see both sides to this issue that is ...let's assume that Mr. Aeee buys the entire 7 acres and you write these construction requirements into the sale documents and Its replatted into 6 lots and he sells off lots 1-4, I don't believe there is any way in the court that you can force his construction schedule on someone you may sell the lots to after he owns them. City Attorneys You are assuming there would be a replet. In a situation like that, should he buy and the City be financing. If were weren't financing and he paid it off, we would be hard pressed you bet we would. However, if the City were financing 3t and there was an attempt to replet, things of that nature, I think we would have a great deal of leverage and equity on our side to preclude the sale prior to porhops the completion of the ph d le M question of the Council is do you want us to put ia in ther� or not. Or do yyou went to go ahead and deal to substantial completion as to 7 and have us just use partial releases without any requirement for building on the other late. Verbatim - Donald Aase Page 13 Councilman Measles I have a question for Mr. Asse. You made a �•. statement that you weren't interested in leasing this property. U" Ie it your intent at this time to negotiate the purchase of the c entire 8 lots? °= : Donald Asses Right. Let me tell you my reasons, ok? I o up --� there and develop and build the hotel how. If Fred Meyers comes In I build the strip mall and I'm fighting to get this next chunk, the appraisal goes up, up, up. If I am gambling, it's my money to up and develop this thing, I want to depend ....if I'm the one that's going to be dumping the money in there I want to be the one that reaps the harvest. • sr Councilman Massless I understand your position there. Is there --'- --; some way in the sale agreement or document that possibly rather then require coming back to the Council or City Attorney or City _... Manager, if Mr. Asse enters into a sale agreement on the entire parcel, then that agreement could include some requirement that whatever construction was put on those lots would come at least before Planning and Zoning to be approved prior to building. _ City Attorneys Sure, we could require site plane as to each parcel prior to construction taking place. Realistically, only so long as there was an encumbrance of the City on the property We would be hard-pressed if he came in paid the property off, to burden that parti-ular lend, since it's not a comprehensive :9._:'_. scheme that releebed all lands to the City, but we could put something like that in there. Councilman Wise: I have a very serious problem in combining police powers in the deed. Police powers are vested in the :_..:. municipality. Tie them to the y' propert as an owner or landlord, trying to cloak it with police powera on the lot that you may own -a,. _ rd or I may own, Tim owns property, trying to cloak it in police powers and say you are have to go the Planning Commission or some agency to do something with it. It's nonsenee. I cannot see the -< City as a landlord or owner selling land and invoking police powers in that deal. • s>• Mayor Wagoner: I don't think the City Attorney said he was going -. ._.}; ", ram_._ to put that kind of clause in the deed. Councilman Wises If you force them to go to the Planning Commission, if 2to not required by low, you're forcing them in the deed to do this, then you are invoking police powers. ,o. Mayor Wagoners Councilman Wise you forget that the City is the one doing the floancing and the City is basically in the same position as the bank. Verbatim - Donald Asse Page 14 Councilman Wises True. That's exactly what I'm saying. Can the L. -. bank require you to o the Planning Commission? Do that g habitually doit? �.. Councilman Massless They can require you to come back to the t� bank. We are the bank. n Councilman Wises We can require it to come back to us but can't require it to go to another agency of government. There is a problem in wrapping a deed in police powers. You do it strictly on the basis of an ownership affair, fine I have no problem with Lt. But the minute you start invoking police powers as a part of that deed, even though we are the municipality, it's patently - improper. Mayor Wagoners I think this all boils down to the fact that` - we've been discussing it for an hour and we could discuss it for another three hours. Mr. Aese wants an answer and the chair before we go much further I would like to see a motion on the �, _..', . • a ,; ,.: floor so we can at least have something to discuss. Otherwise I'm going to out off the discussion real quick because we are getting nowhere. Councilwoman Bellies I'll try to be brief Mr. Mayor. I like ; what Councilman Measles just suggested. Mr. Aase himself was under the impression that with any type of a development he would be coming back before Planning and Zoning with that partteular development, interested in how the city looks and development of the city. I would like to see us go ahead and incorporate some type of ordinance to this effect that any development within the --='.---� city, whether it be on leased land or purchased land, come before Planning and Zoning. It is not unique, it is not policing powers. Other municipalities do it all the time. Our sister city, Soldotne, its regular practice with them. I will try to be brief. This is about all I'm going to say on the subject, but I ' would like to see this brought back and have this incorporated so that situations similar to this come up in the future, we will not have to spend an hour at it, it will be pretty much clear cut. Mayor Wagoners Would you like to put your discussion in the form of a motion, Councilman Measles? __-.. - :. Councilman Massless I have to decide how I'm going to word this. Just to et a motion on the table, I would move for approval of negotiated sale on these properties has under lease lots 1.8. "- -- - -;?--: I'll Just put it on the table like that if I can get a second and maybe we can...... - — - =--- Mayor Wagoners Is there a second? .:.r . Verbatim - Donald Asee =u.. Page 15 n :. 7 � , r Councilwoman Sallies I'll second. Mayor Wagoner: Discussion? Mayor Wagoner* Would you emend that motion, with permission of second to reflect the prices as set forth in item 11 of Exhibit A? Councilman Messiest If this is booed on a current appraisal I don't think that needs to be in the motion because a negotiated sale gives the administration the authority to sell under current IPt piidoessOIIll don't think that needs to be part of this motions City Attorney* The problem is that there has been a replat i i d h ve taken Fi ures provided by hie appraiser and %._.l 6 twat on an we a g - - -- used those to determine the breakdown of the price ae to each _ particular parcel and so..e. Councilman Massless The appraisal on which the lease was based was a different appraisal then this one. Was their a substantial�'�s7 difference in their appraisal? �¢ City Attorneys We took the appraised price and had to apportion it because he subdivided it. It all adds up to the appraised .:•; price. There is only one appraised price. I was asking that perhaps you could incorporate into your motion that the { . negotiated sale be on the terms as set forth with the partial releases as provided in clause 11. " Councilman Measles* second. I don't have a problem with permission of rQ Mayor Wag=nest Discussion? Councilman Wiset 14 is mute? 14 has been dropped? City Attorney* It is not part of the motion. Mayor Wagoner* it is not pert of the motion to do that. :.-..,• A Councilman Wise* I just wanted to clarify the issue. There is not requirement to prove up on any of these. Councilwoman Seilist We haven't got that Far yet. Councilman Wises The motion doesn't require it. Councilman Meseless I have a motion on the floor so that we can discuss this, Mr. Wise and hopefully we can amend iteeeethe motion right now is wide open# ok? Verbatim - Donald Aase Page 16 :�J Mayor Wagoners Discussion on the motion? Councilman Measleas I guess I need some help from the attorney and maybe some input from Mr. Aess as to what can by seoeptable Oft a, to both aides, but again I would like to see some kind of .. restrictions in there that doesn't tie Done hands in doing what he wants to do with the property and yet gives the City some, for lack of a better word, control of what type of development goes on the properties. -- _ City Attorneys Don, would you be amenable to the release of lot 7 with tho provision included in the sale documents that prior to - release for the prices given under clause 11 that you present and obtain approval of a site plan as to each of the other lots. Don Asset Repeat that again, I'm not gain gg to got anything I don't understand and agree to it. Repeat it one more time. City Attorneys Would you agree to Councilman Measles motion for negotiated sale under the terms set forth in paragraph 11 as to price and the immediate release of lot 7 upon payment of the funds as a result of your substantial construction and release of other lots upon payment of the partial release amount plus - -� approval of a site plan by the Council, or if they saw fit, P Z. -; • : 'r '" ` Via. Don Asset What is your figure on lot 7? I just want to make sure... City Attorneys 7 says $2199537.50. Don Asset Plus the $94,000 down payment so that's $3130000 plus the $3009000 1 have in. City Attorneys I guess the twist is Don, rather than have clausei�_=-- "a 14 we would have a clause that said before any other partial re see on any replatted lands or any of the other lots, you'd already have 7 because that would be immediate upon execution, as I understand from the documenta _- prier to the release of an of the other lots in addition to paying the partial release pr as you would have to obtain approval of a site plan from the Council or It they saw fit, from P 2 I. Don Aascs Am I going to go to P A Z and the Council now? -—;"-" CitY Attorneys I don't know if the Council wants to handle it or If they want it to go to P A Z. It would seem appropriate and logical that it go to P 6 Z with an appeal to Council if you don't et what went there <` 9 you , you'd get a second shot at Council. Verbatim - Donald Asse Page 17 t. 16 - f a. JI Don Asses I can live with that, yeah. City Attorneys The one caveat that I've mentioned before and I'll mention again In the enforceability of such a clause It in fact the entire parcel were paid off. The question is whether, the term is, "run with the lend" and whether it can burden subsequent purchasers insofar Is having to have a site plan. I'm not going to say it can or can't. I'll wait for Mr. Wise' legal opinion probably and disagree with it. Councilwoman Bellies As I said earlier, I would appreciate it if at our next meeting or the meeting thereafter we would have some type of document in front of us that would say from now on any type of construction within the city limits of Kenai would come before Planning and Zoning Por approval, whether it be for leased land... for the construction. Mayor Wagoners Let's leave that one out to discuss at a later time because while it may be an offshoot of this, it's not directly related. Councilman Measles I would make an amendment or an addition to tfce motion on the floor. Tim why don't you repeat what you said as part of this amendment. City Attorneys In addition to payment of the price set forth under the partial release clause of paragraph 11 that we have before us, Mr. Aese, in order to acquire the property would also have to obtain from Planning and Zoning approval of a site plan as to any of the other lots listed in paragraph 11, excluding lot 7 which we assume will be conveyed upon closing of the documents initially. Councilman Measles: That's my amendment. Mayor Wagoners Is there a second? Councilwoman Sallies Second. Mayor Wagoners Discussion on the amendment to the motion. Clerk, call the roll. Clerks Wise? No, Wagoner? Yes Ackerly? Yes Bailie? Yes Measles? Yes Nonfat? Yee Mayor Wagoners You now have before you the motioto as amended. Further discussion on the amended motion? Verbatim - Donald Aase Page 1s Councilmen Measles? Otis question for Don. Nee this taken care::- of what you would like to do? Can you live with this? Donald Asset I can live with it as long as we don't put anyything 9.., also in it like bringing up should I pay the property off, it should be free and clear. Nothing should be slipped in there at a later date. City Attorneys It is my intention to try and make it run with the land, regardless of whether it'e Don or anyone else - developing that lot. If he assigns his interest in any one of those lots, it is my intention to make that individual come in with a site plan ---CHANCE OF TAPE--- with that requirement, paid or not. I don't know what the courts would do. Donald Aseds I definitely went it in there that if I pay that thing off, it's paid off. I don't want you butting in any more n.. `.: .._.. +. in R. � City Attorneys I won't put that in unless directed. or Councilman Wises I have absolutely no problem with the suggestion made by Councilwoman Bailie on site plan review, I think that was actually tried in the landscape ordinance and ' defeated. I have a problem with the proposal in that it is exactly what the FAA felt was unfortunate as pertains to their interest in the airport and the interest of the airport in = '� committing lends to a fixed value and actually the appraisal that r we have was for 7 acres and I can only guess booed on other appraisals in that area that probably about $2.00 a square fool -� maybe less then that, maybe a little bit hi her. 9u1 as they are to t-•:- broken into individual lots, their value will go to 3.00, $4.00, I doubt if you'll approach the most recent sale of $8.00 s square foot we had in the city in the near future, but certainly they are goinb to increase in value. I think we are making a r=, mistake. I think we are doing exactly what the FAA didn't want '•:'`r-:;- us to do. I understand Mr. Asse'a approach. I wish he had bougght the whole thing lock, stock and barrel (inaudible). By eplf�tting it up, he's creating a very severe problem and for that --- ---"_ .-'; reason I can't support the motion. Councilmen Messiest Just one comment. In what I read in the letter in our packet from the FAA that Mr. Wise mentioned earlier, this may be our last opportunity to do something that - `^ they don't went us to do. Nayor Wagoners You can bet your bottom dollar, one thing isn't oin to ha en the Federal goveenment isn't going to went to take over control of the Kenai airport. I don't think Soldotns has had too good success with the state taking back theirs. Is 4, pr,.. there further discussion on the motion? Clerk, please call the roil.'. Verbatim - Donald Ases Page 19 _..:,. _ 9 U mil , z •n- IL - • _ It ••---- -0 AGENDA KENAI CITY COUNCIL - REGULAR MEETING JANUARY 229 1986 - 7tOO PM PLEDGE OF ALLEGIANCE A. ROLL CALL 1. Agenda Approval 2. Consent Agenda *All items listed with an asterisk(*) are considered to be routine and non -controversial by the Council and will be approved by one motion. There will be no separate discussion of these items unless a Council member so requests, in which case the item will be removed from the Consent Agenda and considered in its normal sequence on the agenda as part of the General Orders. 8. PERSONS PRESENT SCHEDULED TO BE HEARD (Time Limit - Ten Minutca Per Person) 1. Donald Aase _ Cartial Release Clause in Sale Agreement. 2. Janet Romig ridge Access Road - Name Change C. PUBLIC HEARINGS 1. Ordinance 1100-86 - Amending KMC - Maintenance and Operation of Kenai Municipal Cemetery - for Reconsideration. A. Substitute Ordinance 1108. B. Aprovel of Cemetery Regulations. 1. As Approved January 6, 1966. 2. With Proposed Amendments. 2. Ordinance 1109 - Senior Citizen Day Care - $44,644. a. Substitute Ordinance 1109 - $44#944. 3. Resolution 86-5 - Approving Suggested Changes to KPB Codes Regarding Comprehensive Plans. 4. Resolution 66-6 - Request KPB School District and KPB Assembly to Re-Eveluete Need for Each School Approved for Bonding. S. Liquor License Renewal a. *Eagles b. *Elks c. Little Ski -No D. MINUTES 1. *Regular Meeting, Januer 8, 1996 (Not available for distribution V17/86� Air- in Sti i E. CORRESPONDENCE AN 1. 1/8/86 A. Harrou Regarding Proposed Budget Bill. 2, 1/13/86 M. Navarre Regarding Request for Modification of Transfer of Responsibility Agreement (TORA), Kenai Airport Apron Project (D 2047) F. OLD BUSINESS G. NEV BUSINESS 1. Bills to be Paid, Bills to be Ratified 2. Requisitions Exceeding $19000 3. *Ordinance 1110-86 - Establishing Two New Employee Classifications. 4. *Ordinance 1111-86 - Establishing A Special Assessment Fund - Dena'ine Point Estates - i1,1069000. 5. *Ordinance 1112-66 - Certain City -Owned Londe Not Required for Public Purpose. 6. *Games of Chance do Skill - American Legion Auxiliary. 7. *Games of Chance & Skill - American Legion Poet 20. 8. Discussion - Kenai Boating Facilit . 9. Discussion - Paving Alternate (LID - Gravel Road Projects. 10. Discussion - Extension of Development Scheduler - Fisherman's Pecking. 11. Discussion - Publishing Notice of Public Hearings/ Clerk. 12. Discussion - Assignment of Lease - Lot 59 Block 5, CIIAP - Granath. 13. Discussion - Assignment of Lease - Lot 69 Block 1, Gusty Subdivision, Addition 01 - Roberts. 14. Discussion - Classification Study - Councilwoman Bailie. H. REPORTS 1. City manager 2. City Attorney 3. He or 4. City Clerk 5. Finance Director 6. Planning 6 Zoning 7. Harbor Commission 8. Recreation Commission 9. Library Commiseion I. PERSONS PRESENT NOT SCHEDULED TO BE HEARD (Tint Limit - Five Ninutna Poe Paeson) I. A030URNNENT KENAI CITY COUNCIL, Regular Meeting, Minutes January 229 1986 - 700 pN = : i...- Kenai City Hall Mayor Toe Wagoner, Presiding PLEDGE OF ALLEGIANCE A. ROLL CALl. Presents Tom Wagoner, Toms Ackerly, Sally Sallie, Ray Nogales, Chris Monfor Absents John Wise (arrived late), Jess Hall (excused) --- - --- 1. Agenda Approval a. Mayor Wagoner asked that approval of liquor license renewal for Foodtown Liquor, distributed this date, be added as item ,•Y C-gd. The Borough has stated there are no outstanding taxes due, Mayor Wagoner asked that this item be listed on the Consent Agenda. b. Mayor Wagoner noted items G-1 & G-2 are reversed in the packet -..� .:.. Council approved the agenda as amended. 2. Consent Agenda MOTIONt Councilman Measles moved, seconded by Councilwomen Monfor, to approve - -' --` the Consent Agenda as amended VOTES Motion passed by unanimous consent " Be PERSONS PRESENT SCHEDULED TO BE HEARD 1. Don Asse, 47 Spur View Drive, Kenai. This is for the lease on his ._ new motel. Approximately 8 months ago he had a plan for a $940#000 motel (Phase t ), $650#000 a cinema (phase II ). He has spent over $300#090 on the property. The proposed project change will brim the to $3,250,000 $6009000 cost - more than the previous proposal. There are 2 movie houses at the K-Beach facility, 2 at the Kaebe, 2 and cooAng in Ridgeway. Fred Meyer may not be coming and NEA is doing 1/) "- of -their project. The Community Center may not be built. Councilman Wise arrived at this slims. (7t10 PM) Mr. Ass# asked if his release clause was not the some as Mr. Brown'e9 Administrative Assistant Obtatlauer explained that the City had told him it would be the samie off the sale Mr. Brown's. .: . ,percentage price as .. t jZ- 7 .. e 1u s i COUNCIL MINUTES - aanuary 22, 1986 Page 71 !M. Asse said the City has required that he have a building before he could have a release clause but no lending institution will lend with a cloud on the title, he added, it took 7 make to get his paper work out of the City. He needs this release clause now if he wants to do the work. Administrative Assistant Gerstlsuer explained that the reason it was held up was because it needed replotting, the Borough held it up because of street name changes. Attorney Rogers said the land was first amuired by Mr. Aase as a parcel under lease and he wished to purchase, had it replotted, and wants to purchase the land and wanted the release clauses. Mr. Aase provided the appraisal, and used his figures to determine the percentage. Mr. Ass* now wants lot 7 released for constructions if it was released he would have no compulsion to complete the work. Mr. Asse stated he cannot build without Fred Meyer going in first. He could not put a strip mail in and make if feasible. He will be spending. more money now than he originally intended to. Attorney Rogers explained he had told City Manager Brighton this should be a decision of Council. The dollar amount would exceed the original plan as proposed but this type of construction to different then the original application. Mr. Aase asked Council to approve the change and give him his release, he wants part release on lot 7. Attorney Rogers said Mr. Aase wants partial release on all the lots with no restrictions. The original documents said this would be completed under the lease. He doesn't went any preconditions on any of the property. Mr. Brighton explained that this would not be before Council if he had not replotted. On this lot he has enough improvements for a partial release but there are not enough improvements on all 7 late for release on all 7. Councilwoman Bailie noted, if this is released we would have no say as to what would go on the property. Attorney Rogers said there would be no construction schedule or requirement for improvement. With improvements he would be able to go to purchase. Councilman Wise suggested the lease could be updated at intervals. Mr. Aase stated he Is not interested in leseing all 6 lots at this time. Councilman Wise asked if an appraisal had been done in the lest 6 months, Attorney Rogers replied yea. Councilmen Measles suggested putting in to the sale document, that Instead of coming back to Council or Administration, if Mr. Asia buys the entire parcel he would be required, that any construction on the lots be approved by the Planning Commission. Attorney Rogers replied that could be only if there was encumbrance on the property by the city MOTIONS Councilman Messles moved, seconded by Councilwoman Bailie Pot approval of the negotiated sale of the property t;r. Asse hoe under lease, lets 1-6. MOTION ADDITION: Councilman Measles, with approval of second, amended the motion by ststing, "prices as set forth in item 11, exhibit A. w on I COUNCIL MINUTES - January 229 1986 1? Page 3 NOTION ANENOMENTs Councilman Neseles moved, seconded by Councilwoman Dallis to amend the Motion to state, "in addition to payment of price met forth in partial release clause, Mr. Asse will have to obtain approval of site plan for other lots from PU excluding lot 7. VOTE AMENDMENT: s Passed yeas Wagoner, Ackerly, Bailie, Measles, Nonfor no: Vise Councilman Vise stated that this is what FAA did not want us to do, we n are committing lands to a fixed value and appraisal woe for 7 acres as change. ,� they are broken into lot, their value will - VOTE, MAIN NOTION AS AMENDED: ' Passed �; _ ........ - yess Wagoner, Ackerly, Beille, Measles, Monfor not Wise- 2. Janet Romig - Bridge Access Road - Name Change No. Romig explained that she is in the process of application to the _ .I Borough Planning B Zoning. There are more than 19 owners involved. She to Bridge Access Road be renamed Martin Luther King proposing Road., she heard Martin Luther King when she was 6 years old, she was very moved, she would like all children to be inspired by Martin o =y Luther King. Some Council members said the policy Is not to name y streets after, people, she would like to.see this policy. There are no streets at the present time named after people, why not start now. Ve — —- have a national holiday named after a black man. Me. Romig reviewed an article in the Anchorage News, Nayor Wagoner said a petition was passed out at this meeting. Testimony (unnamed)s Bridge Access Road has •name, let it stay that way. He was able to obtain more than 100 signatures in 2 days. Mayor Wagoner noted the Ames bridge was nosed after the son of a local family, this was done by the state, we have never been able to got a sign placed on that bridge. He has very little support for renaming Bridge Access Road. Ms. Romig asked that J- this be discussed without prejudice. Bridge Access Road goes by names in its entiretys the would be a good site. She asked that we�. deal with this subject as adults. Councilman Wise suggested perhaps it is not time yet. We should honor our own before we honor national yu heron. There is no question as to what Nartin Luther Ming contributed. Councilwoman Dallis sold honor attributed to Martin Luther King is not attributed to many people, ■ national holiday. No. Romig noted it is good that this is coming. out, if we dredge out enough Mud it will cams out clean. Councilwoman Nonfat noted a_� local newspaper article said that we are agsinst a name chNIN019 that is not true. She feels strongly against naming anything for people. lie should also take care of our own first. No. Romig stated that Alaskans should mature by joining the other states. Mayor Wagasar T.. n 3fa � COUNCIL MINUTES - January 229 1986 Page 4 explained the policy., Council makes and breaks policy. We can start naming places and buildings after people but it becomes an emotional Issue, future Counciia could change this. He noted he had written a proclamation recognising January 20th as Martin Luther King Day., No. Romig asked if she could have a copy• it should have gone out to the public. Mayor Wagoner noted that the newspaper has a policy of not publishing proclamations. Kelly Sargon. She noted, Me. Romig feels anyone who does not agree with her is pre udiced. He. Sargon is not. Whyy do something for Martin Luther K ng when he did nothing for Aleeke4 No. Romig replied maybe he did something you don't know about. Ms. Sargon stated she brought the _petition to the clerk, one man had said all roughnecks are communists. That is the mentality of signing the petition. Father Tosgone ky, Russian Orthodox Church. Martin Luther King stood for human rights, the Alaska natives have had no communication with Martin Luther King, they have their own culture and would like to have things named after them. To impose U.S. heroes on them means nothing. They would like to see their own first. Council took no further action. C. PUBLIC NFARINGS 1. Ordinance 1108-861 Amending KNC Maintenance and Operation of Kenai Municipal Cemetery - for Reconsideration NOTION FOR RECONSIDERATIONS Councilmen Miss moved, seconded by Councilwomen Bailie for reconsider- ation of Ord. 1108-06 VOTES Notion passed unanimously with roll call vote A. Substitute Ordinance 1108 NOTIONS Councilman Mies moved, seconded by Councilwoman Nonfor to adopt subsitute ordinance 1108 Public Comment Father Torgonsky, Russian Orthodox Church. He is in favor of the substitute ordinance. F COUNCIL MINUTES - January 22, I"G page S NOTION$ Councilman Vise +roved, seconded by Councilwoman Monfor to adopt C-1132 Public Comments a. Carolyn Wood, Cemetery Committee Member. There are specific months for winter chargee, this can conflict both ways. If the ground is not frozen in September why charge? If you have a late winter, the freeze May lest longer and the City will have to pay the extra cost. She did not want to an families or the City paying extra money if the ground Is not frozen. She further reviewed amendments as listed in attached Memo. MOTION, AMENDS Councilman Vise moved that the regulations include amendments in the memo d2 and i4. Notion died for lack of second. Clerk Whelan explained to Council that 03 in the memo is '.accuse the Clerk did not feel it necessary for the Clerk taking bereaved families to the cemetery to select the plot. Tim Wieniewski• Ce=tery Committee Chairman. Regarding 03, this would also mean the funeral director could take families to the Cemetery, weekends,, holidays, etc. He also noted that a funeral does not happen so fast that we could not work it out regarding the condition of the frost and charges. Mayor Wagoner stated that he did not object to clearing the snow on the main road, but felt the funeral directors responsibility was to clear the path to the grave. The funeral homes should do this as they ere the benefit. Councilwoman Bailie noted that the same could be said for the airport, the airlines should clear the runway. Mrs. Woods said the funeral director handles the body and the funeral, he does not own the cemetery. The city should imp the snow clear from the path to the grave. MOTION AMENDMENTt Councilman Wise moved, seconded by Councilwoman Bailie• to add the recommendations in item 19 as recommended by the Clerk. VOTE, AMENDs Motion passed by unanimous consent. MOTION AMENDNENTs Councilwoman esilie moved, seconded by Councilwoman Monfort to include the recommendations made by memo from the Committee Members. 1 .. � $'-mil... .. 4 i ,. v - U . � ` •' ,. � � �+. COUNCIL MINUTES January 229 1986 �" I pop b VOTE ANENDMENTe. ° Failed Vest Aekerlyy• Bailie, Nonfor Not Vise. Magoner, Nesslee Tie vote falls:=- - NOTION FOR RECONSIDERATIONe _-- Councilman Wise gave r.ltt ae of immediate reconsideration under amendment VOTE. RECONSIDERATION:-- Notion.passed unanimously by roll call vote VOTE MAIN MOTION AS AMENDED: Passed Yea: Vise, Aekerly, Bailie, Monfoz Not Wagoner, Meseles 2. Ordinance 11.09e Senior Citizen Day Care - $44,644 .• _, .D =:'- , NOTIONe Councilman Wise moved, seconded by Councilwoman Bailie to adopt the - corrected substitute ordiance C-2a `. There was no public comment Councilman Aekerly noted this grant is only through June, 1986. He asked what continuous obligation do we have beyond that point. City 9'V.AN p Manager Brighton replied, we have no obligation past that point. -=;:,: - -- -.,'•,.� --:r Senior Citizens Coordinator Porter passed out copies of the grant and noted, Dinah Von Derhyde is here to answer questions. Councilman . . _ • .. _ :.::. _.,•�,..Q Ackerly noted the $50.000 grant to the Women's Resource and Crisis Center, we are tied to that program we do not have written Wise creating rising confirmation on this. Councilman asked, are we expectations? Is this program in fiscal 187 budget by Governor Sheffield? Senior Citizen Coordinator Porter replied, the some amount this year as in the post, it would not be Governor Sheffield but the Older Alaskan's Commission. As to the City obligation, if you do not submit the application you do not got any money. If you do not wish to continue .you don't have to. Councilman Aekerly noted,, regarding rising expectations, when the funding falls out then we have to say no and people object. Dana Van Oerhyde, state coordinator spoke. She said she cannot Du g the grantee .rant every year, this is a pilot program, they ere further on community in place of taring to put emphasis progiesmt expansive state prngcam. They are in hopes of continuing out they act and not continuing. The City Moo no Intention o1' starting a pro -is not under an obligation to continue. ` = n .1_ • _ 1 + �G ".� ry i- := _ rt_ .'� I �. -t•f� .. .;.-•3.':,-lr.� Kk IFQ COUNCIL MINUTES - January 229 1986 Page 1 Marion Davis, Kenai. She has a problem that there is no money for Soldotna seniors and we are asking for $4O4O0 to help Kenai. Me. Van Derhyde explained we are talking about 2 different programs. The w senior citizens program and the day care program. Mrs. Davis said this will -involve approximately 10 people. There are many uncertainties on this. We are one month into the year now. Senior Citizen Coordinator Porter is busy now without additional work. The Council on A ing has not been given much information. Mayor Wagoner noted the only inforaation Council has to the grant outline. Mrs. Davie said we have respite care and home nursing care crow. { VOTES Notion passed unanimously by roll call vote 3. Resolution 86-Ss Approving Suggested Changes to KPB Codes Regarding Comprehensive Plans MOTION: Councilman Ackerly moved, seconded by Councilman Measles to adopt the a: resolution - There was no public eomwint 6 s VOTE: Motion .passed by unanimous eonpAni 4. Resolution 66-6: Request KPB School District and KPB Assembly to Re-evaluate Need for Each School Approved for Bonding. .' MOTIONS Councilman Ackerly moved, seconded by Councilwoman Bailie, to adopt the resolution. Public Comment: a. Dave Brown, 119 Wooded Glen court, Kenai. The resolution is too soft spoken. The City should take a stronger stand, even if they have to go to court. The ballot did not clearly spell out that our taxes would be increased. The attorney should start a lawsuit spinet the Borough. Mayor Wagoner noted it would be costly for the City. The figures in the resolution are Borough figures. They were based on 6% ---- increase per year. The increase was lose than IS this year and projections are lose then X. But they still as they need schools. This resolution is after the fact, but it may we the ppoeoopp le ufor p the next vote. He questioned the'need of the 2 high schools at the time of the election by letter to the ,president of the board and to the Clarion. Councilwoman Bailie complimented City Manager Brighton on his testimony to the school board. Councilman Wise said the bonds are written in such a way that they must be expended in 3 years and are callable. Even if they are sold, if the Assembly chooses not to = p: _A mes .. �V _-'�-'.'mac. a u., ... .. _ _ .... - -e '�Y•Y y .'i. _'Q.""..P_ - n COUNCIL MINUTES - January 229 M page 8 proceed with any, they can Call a portion and pay off. Councilman Nestles said he would like to know if the groups that campaigned were property registered. Carmen Gintoli, architects sold the only thing that had to be approved Is what was on the ballot. Bond counsel said the only thing needed by APOC was on the ballot. City Manager Brighton noted the Assembly will finish their meeting Thursday, there are z more resolutions referencing school bonds and 1 school remodeling. Mr. Gintoli sold it would approve architect only. Councilmen Nestles noted one of the selling points on the bonds was there would be no more architect fees. Mr, Gintoli eyplained the schools are prototype. This is site adaptation. Dave Brown spoke. The more this is discussed., the more people will be aware of the costs. He suggested a second vote. Councilman Was said we are taking a stand against our neighbors. If we specified Swires school to not be built there may be more credibility. Neyor Wagoner referred to a report by Dr. Pomeroy written in 1984. It was not widely read. It said smaller schools are better. VOTE: Passed Yes: Wagoner, Aekerly, Bailie, Measles, Monfor Not Wise 9. Liquor License Renewals Eagles, Elks, Foodtown Approved by Consent Agenda NOTION: Councilman Ackerly moved, seconded by Councilwoman Bellies to postpone action on Little SkiNo until 2/5/66 meeting VOTES Motion passed by unanimous consent 0. MINUTES 1. Minutes of January 11, 1986 not submitted 1. 1/8/86 - A. Narrou Regarding Proposed Budget Bill 2. 1/13/06 - M. Navarre Regarding Requeet for Modificattcn of Transfer of Responsibility Agreement, Kenai Airport Apron Project No Action a cfc. - - - •: [—s :art v/ r :1 COUNCIL MINUTES - aanuary 229 1"6 t Page 9 =.- F. me BUSINESS a a" None 1 ' � o0 8. NEN MINESS to be Paid, Bills to be Ratified- 1f pills -� d NOTION: Councilman Measles moved, seconded by CouncilwMAn Monfor• to approvethe a bills submitted. VOTES Notion passed by unanimous consent 'T `:_ 2. Requisitions Exceeding $1,000 r .: _. :•...r`: ' NOTION: :: ;' ` :• :', Councilman 4okerly moved• seconded by Councilman Measles,, to approved the requisitions as submitted. VOTE: Notion passed by unanimoue consent _ 3. Ordinance 1110-66: Establishing Two New Employee Classifications A. Ordinance 1111-661 Establishing A Special Assessment Fund - Dena' Ina Point Estates - $191062000 - `--^ S. Ordinance 1112-061 Certain City -Owned Lando Not Required for Public Purpose 6. Comes of Chance 6 Skill: American Legion Auxiliary T. Comae of Chance & Skill: American Legion Post 20 Approved by Consent Agenda B. Discussion - Kenai Boating Facility - NOTIONt Councilman Wise moved, seconded by Councilmen Ackerly to go for an RFP - VOTEt 6 •r,," , Notion passed by unanimous consent ..•.. AOOED ITENt Mayor Warnersaid this type of thing would be eliminated if Public that this a Works had a master calendar referencing projects. He asked be discussed at the next work session. "�`, of ,1����•.� •C. It .. ° _..1• . f • COUNCIL NIWTES - January 22, 1986 Pals 10 9. Oismolon - Pavirq Alternate (LID) - Gravel Road Projects Mayor Nagoner said we have $410#000 set aside for LID. It there is _ = �- no request by April it would go to the road list. - Councilman Ackerly moved, seconded by Councilman Measles to include the added alternate listed by Public Works Director Kornelis in the 1/17 Remo to bidding contracts plus proceeding with LID (quickly) at Y,3 505. Finance Director Brown sold the cleanest way is to initiate • resolutiop. The only problem is the ordinance had a "whereas" that the were to Council. ----- — -. the money$ would be used when projects petitioned We my not be bound by it, the intent is the same. Council would start the special assessment process and it would take over 50X- objecting instead of 50% signing petition., it would be a 25% market limit either way, every property owner would have to waive the 25% limit. Councilman Wise said the work of the design engineer is not satisfactory. Public Works Director Kornelis noted the design engineer work is minimal. We will have 60 days award timev if there is a problem it can be held off. There will be a public hearing. He was going to paving with LID, the rest would be City work. Cau�cil- decision that LID s would only be woman on asked about the Council Al with ,people requesting? Mayor Wagoner replied this overturns that this Is the cheapest way. It -.�:: policy. City Manager Brighton explained will cost more to do it later. Public Works Director Kornelis said certified letters will go to all property owners with return :. a._•_� envelopes. The bids will go out in about 45 days. v:'. `4• NOTION, ANENDs Councilman Measles moved, seconded by Councilman Ackerly that request letters be sent to all property owners on the streets listed on the memo, informing them of the possibility of forming an LID for the Purpose of adding strip paving, property owners paying the other M. Finance Director Brown asked it the responses would be the petition. answer yes. Councilman Ackerly asked that they be sent certified mail with.s short time frame.- MOTIONP AODITION� Councilman Neasles, with consent of second asked to add to the letter, - -." �_ - :---'t ...• "we intend to introduce a resolution at the 2/5 meeting authorising -. _�"... :,� ;:' . ; •1;1 an LID if enough support". - '-:- VOTE - ANEN1KNT1 Notion passed by unanimous consent VOTE• MAUL NOTION AS ANENOEDs .:': = h; Notion passed by unanimous consent n r - • e [ c ILI F ' CO!lNCIL NINUTES - January 22, 1986 page 11 10., Discussions Extension of Development Schedule - Fishermen's Packing NOTIONS Councilman Ackerly moved, seconded by Councilwoman Bailie to approve the extension request, to complete by 1/1/88- Mayor Wagoner said they have not requested an extension before and noted he had obaected to the original application because they were keeping others from developing. He asked if the payments were current. Answer - yes. VOTES (failed) Vast Wise, Nonfor Not Wagoner, Ackerly, BAilie, Hassles 11. Discussions Publishing Notice of Public Hearings/Clerk Clerk Whelan reviewed memo in packet NOTIONS Councilman Ackerly moved, seconded by Councilwoman Nonfor, to publish public hearings following the Anchorage format VOTES Notion passed by unanimous consent 12. Discussions Assignment of Lease - Lot S, Blk 99 CIIAP - Granath NOTIONS Councilman Wise moved, seconded by Councilman Ackerly, to approve the assignment of lease VOTES Notion passed by unanimous consent 1). Discussions Assignment of Lease - Lot 69 Blk 1, Gusty S/O Add. 1 Roberts NOTIONS Councilman Wise moved, seconded by Councilmen Ackerly, to approve the assignment of less& VOTES Motion passed by unanimous consent PW NOW COUNCIL MINUTES - January ZZ, 1986 Page 12 14. Discussion: Classification Study - Councilwoman Sallie Councilwoman Bailie sold she spoke to Kate Larsen, director of personal, Juneau, regarding classification study and sent a copy of the State study. A Committee has been forced to reviews City Monger Brighton Finance Director Brown Police Chief Ross Councilman Measles Councilwoman Bailie The will review before budget hearing$- Council agreed to the proposal. Councilman Wise requested job descriptions be attached to Ord. 1110-66 at the public hearing. H. NMI 1. City Nonager City Manager Brighton spoke. s. A meeting was held 1/20/86 with Kenai and Soldotns Chambers of Commerce and Central Peninsula Sports Center Director Sutton reference a proposal to acquire the Arctic Winter games for March, 1999. It will cost $1.3 million. We will ask the State for $1 mullion and raise the rest. Would the City be willing to put up $501000? It will lest 6 days and have 1000 participants. the Chambers of Commerce will organise. NOTIONS Councilman Neasles moved seconded by Councilwoman Bailie that we are interested in bringing the Arctic Winter games to Kenai In 1988 and will consider the feasibility of Kenai involvement. VQTEs Motion passed by unanimous con3ent b. He noted the petition from Thompson Park residents referencing water and sewer (Info #11) c. He noted the memo from Police Chief Rose referencing speed limit on Spur Hwy distributed this date. d. He noted the memo from finance Director Brown referencing budget work session of 2/3/86. v u •r � I ( .y o COUNCIL, MINUTES • January 2I9 1"6 page 13. Z. City Attorney Attorney Roosts spoke. e. we continue in protracted litigation reference old leases. Regardless of the outcome it will be appealed. bs referencing airport insurance he has communicated with ERA and South Central. - c. referencing Enstor purchase. Notice of our option hoe to be given . n Rogers will meet with ' In February. City Manager Brighton and Attorney age s it them 1/24/06. We may have to have a special meeting.. Councilman Ackerly sold we hove a share in the gas wells in the city. Can we,-,_. take out our share and would it be enough to operate a facility? - Attorney R era replied it would have to go in at market rice or it og p_ . would subsidize the system and would not be appropriate. He will be asking for a special appropriation to retain an expert to update the-.• =- - :". .:'. _-:. study. Council agreed to leave it as is. 3. Mayor Mayor Wagoner spoke a. The City has never received a sign or plaque for the Warren Ames n:=' Memorial bridge. He asked Administration to request this from DOT. -= b. He is going to send a letter to the Clarion referencing Council - KIN n Monfor's resignation from the KRSMA Board. The City requested a change in meeting time to evenings. They were assured it would be changed for public participation, but it was not. He is looking for • Councilwoman Monfor noted the Council has not wanted the ;A�f replacement. first S miles included from the beginning. Mayor Wagoner added the original legislation exoluded that portion. c. Referencing info item *Z, letter from the FAA. He suggested copies be sent to the Senators and Representatives with back up and an explanation that all actions have been approved by FAA. Councilman Wise suggested a brief letter to Senator Murkoweki with letter of; explanation from City Manager Brighton and info letter to F. Cunningham (FAA). Council agreed to the suggestion. City Manager Briton noted Administration is having difficulties with iar4 on he float plans basin. FAA has control. Administrative Assistant Oerstisuer said she ° submitted appraisal for review and they were retw md. She coiled for clarification and they repeated their annoyance with actions of the Council. They have problems with land acquisition. Mayor Waggoner asked if they void It would close up if Council aaquiesed. Administ• _ d:. rif COUNCIL MINUTES - 3anuery 22, 1986 Page 14 votive Assistant Gerstlauer r lied♦ they did not Say. Mayor Wagoner said he would be in Anchorage and would talk to Mr. Cunningham. Councilmen Ackerly suggested asking Mr. Cunningham here. Councilwoman Bailie suggested, as hard as it is to do, Sometimes we need a-cospromise to keep channels of communication open. Councilman Wise sold what we did to Don Asse Is what FAA objects to. We gave him land that will double in value. 4. City Clerk Clerk Whelan spoke. a. she noted item H-4 in the packet uniform poll closing time. Hearings will begin in March. This will affect Alaska, bo she reminded Council of the 2/3/86 work session c. The Congressional City Conference will be 3/8 to 3/11 in Washington D.C. if any of the Council went the information S. Finance Director Norm 6. Planning do Zoning None 7. Harbor Commission None 8. Recreation Commission None 9. Library Commission None I. pEaM FKKNT NOT SCHEDULED TO K HEARD - b. Cau wm B lie. She is a member of the Wildwood Prison Adv oorX oar . s e successful family support group. The greenhoues project is on the back burner* they will be doing renovation. 'Bs COUNCIL MINUTES - 3anuery 22, 1986 Page 14 votive Assistant Gerstlauer r lied♦ they did not Say. Mayor Wagoner said he would be in Anchorage and would talk to Mr. Cunningham. Councilmen Ackerly suggested asking Mr. Cunningham here. Councilwoman Bailie suggested, as hard as it is to do, Sometimes we need a-cospromise to keep channels of communication open. Councilman Wise sold what we did to Don Asse Is what FAA objects to. We gave him land that will double in value. 4. City Clerk Clerk Whelan spoke. a. she noted item H-4 in the packet uniform poll closing time. Hearings will begin in March. This will affect Alaska, bo she reminded Council of the 2/3/86 work session c. The Congressional City Conference will be 3/8 to 3/11 in Washington D.C. if any of the Council went the information S. Finance Director Norm 6. Planning do Zoning None 7. Harbor Commission None 8. Recreation Commission None 9. Library Commission None I. pEaM FKKNT NOT SCHEDULED TO K HEARD - b. Cau wm B lie. She is a member of the Wildwood Prison Adv oorX oar . s e successful family support group. The greenhoues project is on the back burner* they will be doing renovation. 'Bs .. -, -� ., ' .�.'. ..�: _• : ., -"..�- ^i .ham �a�c . _k:,r �- V r n' M r" i COUNCIL MINUTES - January 22. 1986 Page 19 b. C9 M 8a ii . Beautification Committee wants trees on Air or sir. y w i take care of the flowers. They would like to s= with the landscaper referencing the triangle on Airport May. Public Works Director Kornalaid the with the C* have eegone out. They will require the eng omee cnsw cons rucMon s lneroduced atethe that /g mseting,visw ordinance for d. Counciiwo a ails . There was a meeting 1/21/86 with City Nana or on, -Councilwoman Bailie, Senior Citizen Coordinator Portert reported a needs assessment is being done by the Older Alaskans Commission for a facility in Soldotne. It was requested by the people in Soldtons. They have talked about Kensi umbrella with Soldotne because of the cost. The only way they can do this10 to talks ":om other projects. e. Councilman Wise asked for a street light report at the 2/5 meeting. f.. Councilman Ackerly said he had heard from people in town that City repreeentatives were in Portland talking to Fred Neyer people. He had not beer, told. This is not the first time. g. Mayor Wagoner said he will have a report at the 2/19 meeting referencing Fred Meyer. AIk71NOMMENT Meeting adjourned at 1100 PM. Janet Whelan City Clerk AA,, oo-- QQLLINN"V 001l M /A40� t o .j �i