HomeMy WebLinkAboutResolution No. 2023-44KENAI
CITY OF KENAI
RESOLUTION NO. 2023-44
Sponsored by: Administration
A RESOLUTION APPROVING A TWELVE-MONTH EXTENSION OF TIME FOR GOOD CAUSE FOR
THE COMPLETION OF PERMANENT IMPROVEMENTS FOR A LEASE BETWEEN THE CITY OF
KENAI AND SOAR INTERNATIONAL MINISTRIES, INC., FOR AIRPORT RESERVE LANDS
DESCRIBED AS TRACT A-1 OF GENERAL AVIATION APRON SUBDIVISION NO. 7.
WHEREAS, Resolution No. 2021-37 approved a lease between the City of Kenai and SOAR International
Ministries, Inc. for Tract A-1 of General Aviation Apron Subdivision No. 7; and,
WHEREAS, the lease requires the lessee to construct an approximately 120 foot by 180 foot hangar
facility for aircraft storage and maintenance, an aircraft ramp and tie -down area, and parking no later than
June 30, 2023 with an aggregate cost of at least $2,000,000; and,
WHEREAS, the lessee has requested a 12-month extension to complete the improvements due to market
challenges related to construction costs and material availability in a timely manner; and,
WHEREAS, KMC 21.10.080(g)(5) allows the Council to extend the time for completion of permanent
improvements required in a lease for up to twelve months for good cause; and,
WHEREAS, market conditions related to construction material costs and the ability to secure steel
structures in Alaska constitute good cause justifying a twelve-month lease extension.
NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA:
Section 1. That the City Council agrees to amend the lease with SOAR International Ministries, Inc.
for Tract A-1, General Aviation Apron Subdivision No. 7 to extend the date that improvements are
required to be completed to June 30, 2024 for good cause as described above. The Council further
authorizes the City Manager to execute a lease amendment with SOAR International Ministries, Inc. to
effectuate the extension.
Section 2. That this Resolution takes effect immediately upon passage.
PASSED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, THIS 21ST DAY OF JUNE, 2023.
Brian Gabriel Sr., Mayor
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MEMORANDUM
TO: Mayor Gabriel and Council Members
THROUGH: Terry Eubank, City Manager
FROM: Linda Mitchell, Planning Director
DATE: June 13, 2023
SUBJECT: Resolution 2023-44 — SOAR International Ministries, Inc. Lease
Extension
Due to market conditions which have driven construction costs and challenges of material
availability, SOAR International Ministries, Inc. has not begun the physical construction process
in the preceding two years since lease inception. SOAR International Ministries, Inc. has
requested a 12-month extension to complete their required improvements on Tract A-2 of General
Aviation Apron (GAA) Subdivision No. 7 under Resolution 2021-37 (see request letter).
The request for a 12-month extension is consistent with KMC 21.10.080(g)(5). Similarly, to the
recent request by Schillings, if a building is ordered in a reasonable timeframe but cannot
reasonably be delivered or erected in the additional one year period, Administration would be
supportive of a future non -code ordinance allowing additional time to complete the project if
justified.
Thank you for your consideration.
Attachment
Request Letter
Resolution 2021-37
International Ministries
May 22, 2023
City of Kenai
210 Fidalgo Avenue
Kenai, Alaska 99611
To Whom it may concern:
SOAR International Ministries would like to request a 12-month extension for the
completion of improvements on Tract A-2, GAA Subdivision No.7 (209 N. Willow
Street) -as outlined in Resolution 2021-37. This extension request has been
necessitated due to the effects of the Covid 19 virus on the metal building
industry, the construction industry, and the economy in general. A good example
of what we have been up against is our current remodel project of the old Kenai
Fabric Center building at 115 North Willow Street. The material and labor costs
have more than doubled since the project began at the beginning of Covid 19.
We ordered our first metal hangar building in the summer of 2022 and it looks
like we will be fortunate if it is delivered by the fall of 2023. The cost of this
building has also doubled since we began our project.
It is SOAR's intention to continue to move ahead with our originally proposed
FBO development. We are updating our feasibility study and seeking additional
sources of funding so that we can still complete this project in a timely manner
even with the substantially increased costs and the challenges of material
availability. We believe that this FBO is a critical need for the Kenai Municipal
Airport and that SOAR can meet that need.
Respectfully yours,
Richard Page
Director, SOAR International Ministries
115 North Willow Street/ Kenai, Alaska 99611 www. soarintemptona 1. o 1.888.388.7627
KENAI
CITY OF KENAI
RESOLUTION NO.2021-37
Sponsored by: Administration
A RESOLUTION OF THE COUNCIL OF THE CITY OF KENAI, ALASKA APPROVING AN
AMENDMENT TO A LEASE OF AIRPORT RESERVE LANDS USING THE STANDARD
LEASE FORM BETWEEN THE CITY OF KENAI AND SOAR INTERNATIONAL
MINISTRIES, INCORPORATED, FOR TRACT A-2, GENERAL AVIATION APRON
SUBDIVISION NO.7.
WHEREAS, on July 1, 2019, SOAR International Ministries, Inc., (SOAR) submitted an
applicationto lease City owned properties within the Airport Reserve, described as the
undeveloped portion of Tract A, General Aviation Apron Number 2; and,
WHEREAS, SOAR's lease application states plans to construct a hangar facility for aircraft
storage and maintenance; a connecting office facility, an aircraft ramp and tie -down area,
and parking, an investment that gives a lease term of 45 years according to the term table in
Kenai Municipal Code 21.10.080; and,
WHEREAS, the proposed development would be mutually beneficial and would conform with
the Kenai Municipal Code forzoning, Kenai's Comprehensive Plan, the Airport Land Use Plan,
Airport Layout Plan, Federal Aviation Administration regulations, Airport Master Plan, Airport
Improvement Program grant assurances, and Airport operations; and,
WHEREAS, the City of Kenai did not receive a competing lease application within thirty (30)
days of publishing a public notice of the lease application from SOAR; and,
WHEREAS, at their regular meeting on August 14, 2018, the Planning and Zoning
Commission reviewed the lease application and recommended approval by the City Council;
and,
WHEREAS, at their regular meeting on August 8, 2018, the Airport Commission reviewed
the lease application and recommended approval by the City Council; and,
WHEREAS, the Kenai City Council approved a 45-year lease with Soar International Ministries
for Tract A-2, General Aviation Apron Subdivision No. 7 to be used as a hangar with office space;
and,
WHEREAS, a 6-month application extension was granted by Kenai City Council on August 19,
2020 with an expiration date of February 21, 2021; and,
WHEREAS, a lease was delivered to Soar International Ministries on February 19, 2021; and,
Resolution No. 2021-37
Page 2 of 3
WHEREAS, a lease extension was approved by the City Manager to Soar International Ministries
until June 19, 2021; and,
WHEREAS, Soar International Ministries requested an amendment to the approved lease
execution resolution on May 4, 2021 to construct the 100 foot by 110 foot connecting office facility,
with an aggregate cost of $1,500,000, to be completed no later than June 30, 2025, two years
later than the other required improvements; and,
WHEREAS, at their regular meeting on May 12, 2021, the Planning and Zoning Commission
reviewed the requested lease amendment and recommended approval by the City Council;
and,
WHEREAS, at their regular meeting on May 13, 2021, the Airport Commission reviewed the
requested lease amendment and recommended approval by the City Council; and,
WHEREAS, approval of the requested amendment to the lease is in the best interest of the
City.
NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF KENAI,
ALASKA:
Section 1: That a Lease of Airport Reserve Lands as amended is approved and the City
Manager is authorized to execute a lease between the City of Kenai, Lessor, and SOAR
International Ministries; Incorporated, Lessee, as follows:
REQUIRED IMPROVEMENTS: At no cost to the City, Lessee agrees to
complete land development and construction of Permanent Improvements
including prepare site for construction and construct an approximately 120
foot x 180 foot hangar facility for aircraft storage and maintenance, an
aircraft ramp and tie -down area, and parking, by no later than June 30, 2023,
with an aggregate cost of at least $2,000,000.00, excluding financing costs.
In addition to the as -built drawings required by this Lease, the Lessee must
submit to the City written evidence that the Lessee has completed the land
development and constructed improvements on the Premises with an
aggregate cost or investment of not less than $2,000,000.00. The evidence
of cost must be submitted to the City within sixty days of the completion of
the development and improvements, but by no later than August 29, 2023.
At no cost to the City, Lessee agrees to complete land development and
construction of Permanent Improvements including prepare site for
construction and construct an approximately 100 foot x 110 foot connecting
office facility, by no later than June 30, 2025, with an aggregate cost of at
least $1,500,000.00, excluding financing costs. In addition to the as -built
drawings required by this Lease, the Lessee must submit to the City written
evidence that the Lessee has completed the land development and
constructed improvements on the Premises with an aggregate cost or
investment of not less than $1,500,000.00. The evidence of cost must be
submitted to the City within sixty days of the completion of the development
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Resolution No. 2021-37
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and improvements, but by no later than August 29, 2025.
Lot developments will prevent unauthorized access to the airfield;
Structures will be built behind the 100 foot building restriction line;
The relocation of the airport perimeter fence will allow aircraft full access to
the proposed aircraft ramp and tie down area;
Paving will be completed up to the existing transient aircraft apron
pavement;
SOAR is responsible for all snow removal, and snow may not touch the
perimeter security fence or be piled to a height that would allow access to
the airport.
Section 2: The lease must be executed and returned by Soar International Ministries,
Inc. by June 19, 2021.
Section 3: That this resolution takes effect immediately upon passage.
ADOPTED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, this 2nd day of June,
2021.
BRIAN GABRIEL SR., MAYOR
ATTEST:
Jamie Heil, MMC, City Clerk 4 . 1
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