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Home My WebLink AboutResolution No. 2023-48JC_ I KEN /2V CITY OF KENAI RESOLUTION NO. 2023-48 Sponsored by: Administration A RESOLUTION APPROVING DEVELOPMENT INCENTIVES FOR A LEASE OF THE AIRPORT RESERVE LANDS BETWEEN THE CITY OF KENAI AND SCHILLING RENTALS, LLC ON LOT 3, BLOCK 1, GENERAL AVIATION APRON NO. 1 AMENDED. WHEREAS, on September 20, 2019, Schilling Rentals, LLC (Schilling) entered into an assignment of lease for Lot 3, Block 1, General Aviation Apron No. 1 Amended with SOAR International Ministries, Inc.; and, WHEREAS, Schilling submitted an application for temporary development incentives that meets the requirements of Kenai Municipal Code (KMC) 21.10.100, Temporary Development Incentives on June 28, 2023; and, WHEREAS, Larson Engineering & Design has provided an estimated cost of $208,000 for removal of all frost susceptible soils and backfill with non -frost susceptible gravels to 95% of maximum dry density; and, WHEREAS, the site excavation is laying the groundwork for a 6,000 square foot hangar; and, WHEREAS, KMC 21.10.100 requires Council approval of temporary development incentives for site preparation work on the leased premises to include clearing and grubbing, unclassified excavation, classified fill and back fill, a crushed aggregate base course and utility extensions; and, WHEREAS, the project will enhance public safety and quality of life while providing economic development on property leased from the City within the Kenai Municipal Airport Reserve. NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA: Section 1. That the temporary development incentive with an estimated cost of $208,000 for the excavation and backfill is approved. Subject to compliance with the Kenai Municipal Code for the credit to be applied to the lease payments, prorated as necessary for a maximum of five (5) years. Section 2. That this Resolution takes effect immediately upon passage. PASSED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, THIS 2ND DAY OF AUGUST, 2023. C r Arian Gabriel Sr., Mayor ATTEST: Z' Michell . S Aper MC, City Clerk New Text Underlined' [DELETED TEXT BRACKETED] ' City of Kenai 1210 Fidalgo Ave, Kenai, AK 99611-77941 907.283.7535 1 wwwkenaixity MEMORANDUM TO: Mayor Gabriel and Council Members THROUGH: Terry Eubank, City Manager FROM: Linda Mitchell, Planning Director DATE: July 25, 2023 SUBJECT: Resolution No. 2023-48 — Approving Development Incentives for a Lease of the Airport Reserve Lands for Schilling Rentals, LLC on Lot 3, Block 1, General Aviation Apron No. 1 Amended. On September 20, 2019, Schilling Rentals, LLC entered into an assignment of lease for Lot 3, Block 1 General Aviation Apron No. 1 Amended with Soar International Ministries, Inc. This lease expires on June 30, 2040. A Development Incentive application was received on June 28, 2023 for an estimated cost of $208,000 to remove all frost susceptible soils and backfill with non -frost susceptible gravels to 95% of maximum dry density. The site excavation is laying the groundwork for a 6,000 square foot hangar. A building permit was submitted on July 19, 2023 for the foundation and hangar. Kenai Municipal Code 21.10.100 requires Council approval of temporary development incentives for site preparation work on the leased premises to include clearing and grubbing, unclassified excavation, classified fill and back fill, a crushed aggregate base course and utility extensions. This resolution will approve development incentives for the subject lease. A certification from a qualified engineer that the accepted scope of work has been completed must be provided to the City and accepted at the completion of the site preparation work in order for the credit to be applied to the lease payments, prorated as necessary for a maximum of five (5) years. The current annual rent for the lease is $12,900 plus applicable taxes. Thank you for your consideration. Attachments Aerial Map Lease Development Incentive Application Site Excavation Cost Estimate Letter Development Incentive Lot 3, Block 1 General Aviation Apron � No. 1 Amended KPNA1 125 FBO Road KPB Parcel ID: 04324003 125 FBO RD .mac V P� �R f .x zLa u�.e, � • � ` Gr Subject Parcel Parcels Date Printed: 7/25/202'.• N iviap ror rcererence uniy NOT A LEGAL DOCUMENT 7-7 0 120 240 480 Feet City of Kenai #CITY OF KENAI V 2 Lease Development Incentive PATE �( Application PLANNING DEPARTMENT IKPNAIApplication Date: 6/28/2023 Applicant Information Name of Applicant: Schilling Rentals LLC Mailing Address: PO Box 3426 City: Kenai State: 1AK Zip Code: 99611 Phone Number(s): Home Phone: I Work/ Message Phone: 907 283 7556 E-mail: (Optional) idlunt@schillingrentaisllc.com Eligible development To qualify for a lease credit toward rent for a maximum of five years, an applicant for a new lease, extension, or renewal must complete commercial development on the property within two years to receive the credit, which is based on the value of site preparation work on the leased premises. Examples of eligible work include: clearing and grubbing, unclassified excavation, classified fill and back fill, and utility extensions. Required documentation 1. An estimate of the value of the work, including a scope of work, prepared by a qualified engineer licensed to work in Alaska must be provided to the City and accepted prior to work being performed. Any changes to the estimate must be provided to the City and accepted prior to work being performed to be eligible for the credit. 2. A certification from a qualified engineer that the accepted scope of work has been completed must be provided to the City and accepted at the completion of the work for the credit to be applied. Application is for. 0 Existing Lease Property ❑ New Land Lease Application Description of property: GENERAL AVIATION APRON SUB NO 1 AMENDED LOT 3 BLK 1; 125 FBO Road Kenai, AK 99611 Description of work to be completed: ❑ Clearing and grubbing ❑ Unclassified Excavation 0 Classified Excavation Utility Extensions ❑ Other: Estimated value of work: $208,000 Estimated start date: 6/30/2023 Estimated completion date: 7/8/2023 Attachment(s): p Scope of work ❑ Other: By signing and dating below, the applicant agrees to fuili!i the above requirements and understands that if these requirements are not met, the applicant will not be eligible for a development credit toward rent. 6/28/2023 Print Name: I Michael K Schilling Title: Maaging Member For City Use Only. Date Application Received: ❑ General Fund ❑ Airport Reserve Land Date Scope of Work Approved: 0 Airport Fund 0 Outside Airport Reserve Amount of Credit Applied: 5351 O VEco AVE KENAI, AK 99611 CIVIL- STRUCTURAL- ENVIRONMENTAL PHONE: (9137) 283-1565 CONSULTING June 28, 2023 Rob Marsters Schilling Rentals Re: 125 FBO Rd. - Site Excavation Mr. Marsters, Larson Engineering & Design, P.C. is currently working on the Civil planning for the 125 FBO Rd. property located within the Kenai Airport. The existing site has frost susceptible soil intermixed within the existing backfill throughout the proposed building footprint and adjacent perimeter. I recommended removing all frost susceptible soils and backfilling with non -frost susceptible gravels compacted to 95% of maximum dry density. The estimated quantity of poor soils, located within the proposed site development, is 5,200 cubic yards. I estimate the total cost for the excavation and backfill of the site to be approximately $208,000.00, or -$401cy. Compaction tests shall be accomplished during backfill operations in order to get a representative sample of compaction effort. I will provide periodic inspection of the excavation and backfill efforts, as the project progresses. If you have any questions, please contact me at 907-394-2235. Sincerely, Signature: Blake W. Larson, P.E. LARSON ENGINEERING & DEBION - S3S 10 VELD AVE, KENAI, AK 9961 1 Pm (907) 283.1 569