Loading...
HomeMy WebLinkAbout1987-01-06 Economic Development Commission SummaryT`fúAÄ_½×^²ËVUY‹bmˆ_!3ObŠ‰‹t‘лú;w¿_.¹*4ƒÌ¸lÉ-Y~ a®3Å«Ú¯ÿÂ%ßżŠáK¥ºZ*ëbmÑn1·"¾@Ä“åfbˆ.b½‰OÜßëm¯ÿ׿V†‚ˆïB¿Kòr [Й[¬­šÌLÜd‘®÷þö0ñ‰ïߨ¥õ‚¥•¸qÔ¢+Ã+Zm¹úvÙ’KCs/ˆø27<抙iç¸ê¾ÞþˆÖÖ]r<ZÒ3ÓÁ’e±…Ò]]ï’×⸠¶h/P‹µU âˆx2÷BA$^ˆo/C~û³üò×ÏÆ{:œãR¡KÂP¼Ç­ï]-© %[²UòZ´»ä×û½ïã¿Jzµ¤åÑR7~UKþ¨Õ÷õ®e‡ìòÅÚúïÅ‚Âß+ÅßZΛxå£Å˜øÒe“'Yp+ÙÝjHú áxÑ{—ôÕ.ç_ݏ`ۺ׭¾£#ŒÛÒ¶\ ¶ôR-•t£b D|¼^µ½×»-­{rñuދ㵆„^ûÄÆ`K½!â7HB¸¤Zz¼ªJ·né{붾#¢9NŵÍqŽ§?ã%j¤[g¯ÛfL<©ÆþôÔuT[Cß÷òÝ°4]Ä'îoIƒjE4Ôú‚ô–e¨J’»°ôv1!eµ$Õ½—dúz¿ß¨ˆØ–\ï¶uû–Š/—Šg¯Ò3>ºØòv\’$ÍÝkK®«ÐÑÑa(oÊ)\FEýF¹Á‚œø:q«Qí±Q‚þ¥[Öj‡Ir|§¨ÄðÑ—9]eŽƒˆKc#Jˆö·¬Z’µ–ê™ÔO_%HBØ^} ¶FDDD æ8d ™rªAt²Ôr™øÄm««Ÿ¸í[Z«—ÍнªdM¹ÀeTÄF¬·¾ ‚)§\ò5}÷ˆsœr —9å8Ç%§q2ª][bWÄ'.â7ñ‰X¶dW«´j ECONOMIC DEVE MENT COMMITTEE January 6, 1987 Page 3 Ernst answered that the landing fee applies only to craft weighing over 4,000#. For example, the Navaho is 6,000# (gross take-off weight), Twin Otters run 12,500# which is ERA, then the Beech 1900 runs 16,500#. The large exception is the Convair 580 which runs two to three times per week which weighs 55,000#. Our landing fees have been held low specifically to entice the airlines to come in. That figures at .20 per 1000# of the gross weight of the aircraft. A 12,000# plane does not add up to much, however, they fly so frequently it does generate revenue. This fee is comparable to what they pay in lease rate. Committee Member Thomson noted the amount of small aircraft traffic and inquired into the fees collected on the small craft and how landing fees are collected on both types. Mr. Ernst answered that the facilities are not available to monitor landings and collections. Right now it is on the honor system. It would take spending money to be able to collect money and those fees that are not reported or collected is probably minimal The other possibility would be to ask the tower to make reports which would not be feasible for them. To keep in mind, those small aircraft, while they may not pay a landing fee, do spend money here through fuel, restaurant, car rentals, tie downs, etc. The terminal space available to lease - after Friendship Air comes on line there will be two spaces available, one of those being ERA who have two but have agreed to relinquish one space should the need for space arise. The limousine service closed along with AAI. Also at the terminal are the bar, lounge, restaurant, maintenance facility downstairs, and the FAA facilities upstairs. Chairman O'Reilly asked about freight facilities, Mr. Ernst answered that the city does not monitor freight coming through the terminal. Most freight is handled through carriers apart from the terminal. It would be possible to obtain reports by asking the carriers to do so. Moving on to revenues, Mr. Ernst reported that the terminal fund balance is $589,000 and with revenues generated at the terminal and the interest we get approximately $100,000 per year added to the fund balance. That is expected this year and is surplus after paying for maintenance and like charges. One other system generates revenues which is the land system. Kenai is unique in that we are the only airport in the United States that has a stipulation by the FAA that any airport land that is sold will go into a fund which will not be spent and will only accrue. The interest from that fund only will be spendable. Keeping this in mind, presently we have approximately $7,400,000 of the fund balance, unreserved balance which is spendable interest on that~balance is approximately $2,100,000 which is just short of $10,000,000. If you consider the fund balance and the investments that our director of finance makes with that money, we get approximately $400,000 per year interest. With the lease and interest of airport lands added there (not including sales of ECONOMIC DEVE~ MENT COMMITTEE January 6, 1987 Page 4 airport lands) is another $600,000 per year interest or an accrual of $1,000,000 to the airport fund. "I can't think of any airport in the United States that has got a problem like Kenai in that we are actually in the black." Committee Member Elson referred to the $100,000 and~asked if this was the margin, answer yes. Is it the policy to operate the terminal on the basis so that whatever the earnings are will always be the margin left over at the end of the year. Mr. Ernst answered that the amount goes into the balance for any major renovation, repair, or maintenance to the terminal. We are looking at just this type of situation within the next two years when the new flight service building goes on line and the facilities move out of the terminal. The south end of the terminal will then have massive renovation. Committee Member Elson remarked that what sounds like a large fund balance could easily be reduced by one single job, Mr. Ernest confirmed. Committee Member Elson, on a year t° year budgeting, are the normal revenues from rentals and other related income greater than expenses, not including accrued interest, answer yes. Committee Member Elson asked if the situation were similar with the lands system budget, Mr. Ernst answered yes. The maintenance, repairs to the runway, etc. are by no means recouped through landing fees. There is a common thought that is in error that landing fees pay for these costs, when in fact they do not. Mr. Ernst next went into AIP (Airport ImproVement Project) funds. The funds previously discussed are strictly generated by airport lands. Aside from that there are funds (AIP) which are derived from the Federal government from the enplanement figure. For example: 1984 = $486,000, 1985 = $606,000, 1986 = $628,000, 1987 =~' $675,000. These funds will terminate in 1987 and can only be used for FAA approved airport projects on the field side of the airport. Any improvement we ask to do has to be approved by FAA even though it is our money. These funds can only go to certified airports. Mr. Brighton explained that there are only 4 of these airports in Alaska, Juneau, Fairbanks, Anchorage and Kenai. An example of projects currently underway are the GAA apron, tie down area for approximately 40 planes, filling in the safety zone at the end of runway 1 approach, and from all indications we will be moving ahead with the float plane basin. Committee Member Elson asked if runway overlay would fall into this fund, answer yes. Crack, or lighting repair would not, it would come under maintenance. Only major complete projects fall under AIP. The amount in this fund currently is approximately 1.7 million dollars. There is a small residual from the ramp extension done last year. These funds were used to do the safety zone and apron projects. There will be about $360,000 left which will go towards the float plane basin. During the period of the apron extension, new guidance signs were installed throughout the airport, we were down to 3. ÁµÃPÁ Y·ŠŠ0nKK׊ˆˆˆˆ\DˆÀ{X°`½¥Ø––±Q–‰â C C†ŒQiFƒ`‚¡ˆÈ„¬øÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿ€&%euRøóÝ'/euRLXâ'%euR¤^(%euRèào(%euRì<ƒ(/euRÓ¡ˆ)%euRi·°)/euRûSí)/euRp¶ý)%euRzZ */euR+Ä+/euR›è +/euRÊ&î+/euR,Þð+/euRF¼œ,/euRDK,%euRÅ,%euRšE¬-%euRj¹×-%euR&R ./euR¶)€.%euR™Ú×.%euRÇ‹æ./euR,/%euRænP//euRL»º/%euRíÏë/%euR™90%euR¿çw0%euR±yË0/euRP»11%euR…°_1/euRîŸñ1/euR Ö2/euRÜÃ"2/euR3?£2%euRxɨ2%euR t´2/euR˜È2/euRÇ;Å3%euR •Ò3/euRÞh74/euR?—4%euRx&³4%euRXÛ4%euRó¬à4%euRÕÍ%5/euR?ùJ5/euRÈ ¼5/euR¬×ë5%euRT6/euRa'6/euR€s6%euR³%†6%euR¦6/euRlì6/euR$¸7%euRh7%euR/,†7/euRAÇÖ7/euRõ1"8%euRfC8/euR#p8%euR|q8%euRáܹ9/euR3Ÿ·:/euROà:/euR±úõ:%euR½0;/euRtv‘;%euRˆü;/euR”šò;%euRHú;/euR!</euR(B“</euRç#=%euR²(+>%euR†å^>/euR̃?/euR¹Æ ?%euRs/?%euRê]h?/euRæ4C@/euRÃ"d@/euR{l@%euR¥è&A%euR´ÍšA%euROmÇA%euR~ÕXB%euR¦–B%euR|þ-C%euR!ÛHC/euRœ¹mC/euR$ UD%euRÒiÂD/euRjE/euRCÓkE/euR¯‹E%euRö#F/euR§Î‚F%euR q«F/euRêŸÈF%euR&‡&G%euRç§EG/euRVE”G/euR–\ÇG/euR­íG/euR5Ž7H/euRôðqH/euR«e¡H/euRª¨CI/euR+b¿I/euR}çûI%euR§ž‚J/euR¡œJ/euR†tøJ/euRÿK/euR¸èÓK/euRYJ|L/euRž¯¥L%euR×üÂL/euR&3ÍL/euR~´ÔL/euR<ëM%euR X©M%euRÖ'N/euRŸ‚?O/euR×EO/euRKíÏO%euR\õæO%euRG'P%euRs© P/euRÛ$P%euRx8ƒP/euR«céP%euR$†åQ/euR÷þÉR/euR?îÞR/euR·pìS%euR‹ùT%euR›8U%euRââU/euRå,V%euRb{V/euRµ¾ W%euRž=FX%euR”kX/euR½wX/euRúýÄX/euRVfZ%euRɧ=[%euR¢^q[/euR :w[/euRÔÑ [/euR¯È\/euRñ]/euRhF"]/euR‰]%euR†Ž^/euRSÜ“^/euRÖLh_%euRŽ_/euRµ2`%euR뾍`/euR?Ya%euRvOqa%euRÀa%euR7KÆa/euRVãb/euRÜA=c/euRhçBc%euR„ ‘c/euR˜c%euRÇÿFd%euRŠ””e%euR“š¾e/euRn Zf%euR±Ëg%euRÇyg%euR“u h/euRõ¿ h%euRc?h/euR¨ºöh%euR+È2i%euR:c9i/euR¾&Ni/euR dmi/euRμi/euRâ, k%euR F(k/euRhÈQk/euRÊ™k/euRO–Çk%euRxŒ×k/euRÉñk/euRç—:l%euR—`tl/euR'r¡l/euRÂcm%euRî#Km/euR2«Òm/euR!µPn%euR6Ïþn/euR²lo/euRˆOFo/euRX¾o/euRkAIp%euR–êp/euR¡Êq/euR»½kq/euR<»q/euRÏPr%euRFxr%euRÑ{r%euR/ r%euRïôr/euRVs/euR s/euRT<?s%euRKT•s%euR­t%euR;ºLu%euR O†u/euR+u%euR÷ÁŽu%euRN6‡v/euRÌ«v/euRÓ³v%euR‹$x%euR?'Cx%euR§ÚNx/euR0^x/euR±éÐx/euR´T3y%euR„Ÿy/euR'1z%euRñ‚íz/euRÎM{/euRÀùO{%euRZ{/euRå—|{/euRåX|/euR¯éj|/euRï’|%euRæ«|/euR4^”}%euRš~/euRîêm~%euR-b†~/euRr4ç~%euR›³ë~/euR ‰€/euRÈ®ø€/euR¸i%euR§‚%euR8‚/euRÕšV‚/euRW‚/euR[×£‚/euRÄÇ‚/euR+Ì„%euRˆ^„%euRn„„/euR¨Ç‰„/euR ˜š„%euRïi…%euRV§H…%euR¤Vw…/euRÈû¨…%euR\àê…/euR6ëö…%euRݤX†%euRâÆN‡/euR[¥‡/euRG…Û‡/euRÊùˆ%euRM”Wˆ%euRøxˆ/euRæ£ˆ%euR狤ˆ/euR7è‰%euRïØè‰/euR÷8QŠ%euRr!»Š/euRóÖåŠ/euRîÒ/‹/euRZªI‹/euR%/’‹/euRøÀ‹/euR+W+Œ/euRíÑŠŒ/euR II*þö ä  æä Ÿ1æî(2ö;È,,02/20/084LaserFiche® LFImage Module -- Snowbound™ RasterMaster™ Engineÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿ?í´0XÌÍÅ cbÃœ$æ^ððC–æ¦2¡x¿¼CþÉîïü‹œ¶Dž¤áEüÿ>V‚lDZ[Áï¿T.˜™‰ —J·‚Àr”|¦‡ åv-.˜r"°ˆ‹õ[\"xŠIŸ°ÂPùÁ ÁPÌ?‚énI‚`–@0³y1§B˜ÜÄ‘L;˜ƒ°Ä‚@X¢@(f£É%TþËÑÑaK£°ða9² –[° ÁÛš|>t‘úýR»ûu9:zYV9zo öy’ÁNÎNº‹èX¤[ü$A°“î‰Û"ßi&nBbâ&Ô½Hm‘‹ÔNÿéP=¢þ½|Crí*/?/_2/¿<äKvìgF¹2…z_ãuÙ—¿¼TvÙï’¿—Õµ¿ïKò‡ ‰D¶¬‡†þK.î%ý¯ÿê÷ª– ¿þ aÈãÓˆ, ÿÿ ²×ÿïïÿ÷£oïK"á>É«¬_ÿß¿ì¥ýß÷Õ¯ÿ ¾þ¡…°Á“Ç^úÿúj_õ¿þÿÿ›ð þë(É%¸dK ?ùÿ¿yéÿÿ¿þ¿møþ˺®m" _úÿÿ¥þÿÕßÿ6ì¿/üw)ôëÿ×ßkýÿ›‹×ÿŸ+&ŒþuÒPõoíþÿ/}k»ôÿÖ¯þÿþ!è {ø¯ÿöîï’Kÿr«}×ÿϳ3ìÿ¯ûÉôûÿ×V[µÿßµ¥õ_o½w[ú“¿ôÃþ6ô¿Þ04 ÁÍ2qÙÒÿÁP[mý÷·ëÿ_ÚÖdêÿøÿ76¢ãÿ KºþÕjC: é¯ÿ Ë¿ qÿ뛈7a¸mëâ-£üÿŠÕ¨ÿkð·¬*ßahXvÁPýCÂõþoYûÿ¶úÞGDDDChÂa"2FDD&Æ@†`¡Up7dÈ‚!ÿµµõ5"ò¹?EDDDDDD¼¡Æ¶Êöû®7ªliKë ÇÃD½åñÖV Ö`[[BDT0È 5T´U*D0Ô‚¡#ék R#n…AñŸv‰O9ñ+tëïë{¤m\¹ñ ˜››FX£T™"Xåò!2³‚áÉø!8¼,X!‚A„š¼/O…UÄŸ¨ZDq«ª,øöóÌ f6¹A„ b˜¨Ml6ä[¤7¨ˆÛ"îú¥WùY°dy¹†à‚l·kÿÑ¿ ù¿®^ꂇ¼ûŸx>¸Híä¶ä¬õ÷§ý^-Ùoé*Øoº@¶¿)>œ™A¬ˆÄì¬ËC^ïõýÛò¿ük‚‡À X†Œ…Šßºz]ÿÿßÕååXpÔ¥ïúÿõÆi‚É…¸hXWýýâ}ÿ¥ÿhƒ_²­‚'ŸCH÷?ˆˆÉ¿^ÿoBm2^wù¶ä¡Azm~×Ýÿþ}µëêRÝÖÖ¾ÿÿ';…ð—¡ÿ¿$ûØ°Šè¸·ôõ_HúŠÙ2qC—`o‚à öã«ï«Éƒ¯«ôG¼D5ï› øòê_¿.³íþþÿ’= CÿëþÕöú®÷ÿ¥ÇÁÒ²ïÿ¶ÞÚµºök2¦ôâþë?nâÛÚPûf±ÿ¸ú¯¿¿ïq”ñÒú_³ðR? Ï÷ß¿Þ„x‡eþ_zû¥¿W½"""‚!Ëa†’­ÛÚú A¶Dî—ìjˆ\„F…¥D–Z²!yB›ÎÖ·¡­ö–Q/´Qz”aZ C–[k·ÞŠ2†ÀrCi—¡·jˍŠˆˆHyHjAjÁ Y±  -ĺâÿÿÿÿÿÿÿÿO«ÇÏDWS€ƒe p€q&²â3+΄­Ý_"®qÿîÿ^ÿ^ïÃCûgŠ :&í¹ˆ¸6!9˜[!ÓÎE\kYV2퍐ø/¾EÂ-^i‡€N,„(s£L!â:ø!\ Ùþ¡ÜL&¦JLb_RKµü& “ªûÃÒ»Ör&BL+þÜs#n×/×ë»|îUpð{!!»ÉÄìø?,†¶Ö/y'µÀõ&“z½°Æñ™›y§¦æ†°)\úñ_ÒÿÝÙjjŒ0ñö~]ïÿÿXõƒƒ×ÿ××_×Ú½<ÿÿÿWýüa” ”<âÌÇL9æ˜(Éà䘰èñˆrÌ¥œ'¦xâ³™øT£Äˆa&˜©$âQ"â"PC_ÿ×ÿËËÂ-C†à†`C0† ‡àˆpD‚ÉÈ ˜B09 ¡©€ÏGù¹9˜ ‹xlb…Ù‚LÜ$0kñL2&¸‰¤õUÿÿGû²HŽEÆ=D·,r¬-¯[,X°,C†¼<È2d,´Ð̂ʘ+BxfÌffâ@99†2žgªãâU×õO;-'âÆ‚À&™%Ø®’-ò©Q"œP\<L|‘Ï–"Mˆ4y\*òXÞ_–[Ì-²_$ܲ ÁBy¨Ì€tC°³ Y ä!Œ°ÙÙDÐ1§p §œ‚fŒëÿÁ7ÑsÈd¿/Ù0ò±ÔjK.Ù,ŒnƒW—árɆçnÉi0,x|lAà`’S.‚m©HSô]~ù*Y‡¼,øË Y!Xˆ&g@(ôœ²B@„AEÞ“ÈÒþ—o­ãþ[.]].ù«ÇKkKøörw0‘@Þ†e—;bÙ`çø²Ëi°çx‡!X"MW|‹<ö!âÀ./îûî‡ Á2kÓ§J‡3Ù(+dâ\ÿßÖ^òý%—ºì«¶÷²ë—ÞC–[«­’å»úåàÒànI6XØàbxɆƒ 2  &vJ@°-X֐!Rø…û^†`O†¨Ð¿^úýïj©þõÿ]úuÿÕß-ÿ÷}_úw/ÉO|½–l÷rKD¦£† ÁŒ4n*¸CpD÷¢o]C±û †Ó¡ B‚ˆ8Õ(c(+ü}ÿÿ¿¾zëß/üßËÐ×_wÙ»J]õÿå÷÷eGÕ¿Ž!»¤Þ †ÀOd¬]H0I6 A`ÅÁ¦`†v]_2ÿÿ·tézzý~Kk©GÿÿúÃÿ£ß/½õRý¿dÙÿÿõ!ßûr÷P¢ç}ܲ,± ‘Âò}E6äÿQÖZý‘ ùFò#èþ_Œþ×aë÷õëaýù’ÛKåï_þ÷µþ†À‚!ð—¼l‘Çÿ}»@:~¿ôAA¿ˆ×_oßõ‘ƒ$ø^/ݽþÿßÿõ¯ê¾–ßï—ÿ.yÙÿë– âðÿÿQ_ƒþÐ=ìFO$œü¿ÿúïoýßõÿÿû¾þ¿ý_]²Õþÿ†! ú¤áõ+™þý!ÐD´ÿqÿÿ}Ã_"ööÿ.Åÿÿ^ÿwWýÐî[.ÿþ¯ÒÿwùùZÿ(A_øý¯/è“! Aÿªÿ~Îq懆@Ûÿ÷÷¯ÿúÿë_#ò ex©†!éíþߥõËû/ ÿï÷zA¿ô/hÿz°UBD‚¶ÿwMn '»êÿ7,ýo‹ùÿýàûG6ôÿßðûýÿ^´ÊºßIÈûÿé~éuý~Þ,è¼}i–ùÈ ECONOMIC DEVE~ MENT COMMITTEE January 6, 1987 Page 7 surprised some day to find that all usable land for commercial purposes is gone. Mr. Brighton explained that there still is 250 acres of developable land that is not airport, plus thousands more in private hands. Committee Member Thomson, in context of this meeting this evening, we are speaking of the airport being self financing, at some point in time, if we sell all this land, and with the continuing escalation of costs of maintenance, etc. are we going to end up stressed for cash at some time. Even though we have this interest to use, maintenance costs may exceed the income. Mrs. Gerstlauer pointed out that the lands that are closest to the terminal are restricted to lease only which ensures an income and that amount will increase every 5 years. Mr. Brighton explained that as land is sold at 10% interest and as the capital is paid down, that is also invested at interest and at the end of a 20 year period, then the capital investment or cost of the real estate is gone and the only thing left is that capital that will Continue to draw interest. Its my estimate that you are looking at 20 years down the road before any concern. Chairman O'Reill¥ recapped by stating, the land operation essentially subsidizes the airport operation, is there some future point in time that this would not be true. Mr. Ernst answered that it would not happen unless the City were to rob the fund balance. Committee Member Thomson, using a rebuilding of the runway as an example of a major use of money, asked if this interest could not be depleted. Mr. Ernst answered that in the .... Master Plan, in phase 3 portion which includes 1996 and 2005, they~have· actually looked at the reconstruction of the runway and they show it to be around 3 million. Reconstruction means the keel section of the runway which is 50'. Right now there is 11' of pavement in the keel section. Committee Member Thomson asked if you want to upgrade to larger aircraft would you need to move ahead with the keel section, answer yes. At present it takes up to 240,000. Committee Member Elson noted another major expenditure may be providing security at the airport which would be an ongoing drain. Another would be the crash fire rescue which would have to be manned 24 hours. Committee Member Thomson suggested perhaps integrating the City fire station with the one at the airport thereby alleviating some of the cost. Chairman O'Reilly asked if any of the costs of plowing or fire were borne by the airport, answer yes, however, a very minimal amount. Chairman O'Reilly asked if more of those costs could be shifted to the airport, answer from Mr. Brighton, the Council has been looking into that for some time. There is a chance if the municipality needs became greater, then we may double the amount, but not until that time. Committee Member Thomson noted that we need to be careful not to look on this as a little "gold mine" that we can attach to offset our other financial woes. Committee Member Scott noted that when it gets right down to it, there probably is not any "extra" money. Chairman O'Reilly asked for a dollar estimate of buildable or usable airport land, answer, because we have leases out that have ECONOMIC DEVE~ MENT COMMITTEE January 6, 1987 Page 8 been leased for 20 years and at the time they were not forced to have a development plan the way we do now. There is probably 10 to 15 lots that are developable, but have no development on them. A good example is the area across from the airport where there are vacant lands. Chairman O'Reilly asked if we have any valuation of all airport lands, answer not right now, but it is obtainable. In the last 5 years we have averaged roughly one million in sales. In 1984 was close to two million. With sales pending currently, it will average roughly $300,000. The Committee took a break for 5 minutes. Mrs. Gerstlauer wished to direct comments to the remarks by Mr. Moore concerning city leased lands. To clarify, the policy has not changed, any funds received from the sale of airport lands goes into the airport fund and is used for the airport. In the case of HEA, the City traded lands, the parcel being down by Larry's Club. The impression is that the City is driving commercial prices up, while it is true that lands are higher in Kenai, the City cannot govern that, the land is appraised by private agencies from Anchorage and Kenai, is approved by FAA and goes through several procedures to determine value and that is fair market value. When it goes to competitive bid, the price goes up, but that means that someone has a special interest in a particular parcel. Mayor Williams commented on the cOmpetitive bid process, the city has what I see in the real estate business, a very fair and accurate market value. However, when people brought in bids for some of the lots on the back street, they doubled in price from the appraisal. The market is what dictates the value. When those people were willing to pay that much for property they created a whole brand new market. The people created their own problem. Mrs. Gerstlauer noted that appraisals are coming down about 10%. In speaking with Bob Schafsma this is an average over even 6 months ago. Committee Member Carter commented on a discussion with Jack Cline, that he has not been in Kenai for 3 years and when he does come, property values will not have decreased. Mrs. Gerstlauer agreed, stating that leases are up for redetermination every 5 years, and while the economy is down, the value has remained high and people are shocked to learn this. The cap on leases has been repealed. Committee Member Sheldon asked if anyone felt that since the City did not actively get into selling land until 1981, could this have had an impact on our commercial section shifting to Soldotna. Committee Member Elson stated that he felt that when the subdivisions were originally subdivided, the way we spaced everything out was detrimental to having a commercial district close where you have sidewalks, etc. But whether we sell or lease, I don't believe it made any difference. Committee Member Sheldon answered that she would never build on leased lands. Chairman O'Reilly noted that the economic atmosphere in 1979 and 1980 is different, however, there were arguments made to Council when discussing this leasing ordinance. There are a lot of Alaska ECONOMIC DEVE1 i~ENT COMMITTEE January 6, 1987 Page 9 businesses that make their money not only on what they sell but on the appreciation of the land when they own it and because people could not own that land it was denying that economic opportunity. Committee Member Sheldon noted that there was a demand, however, with that restriction it made it less attractive. If the land had been available when the demand was there I feel it would have made a difference in the rate of growth fOr Kenai and Soldotna. c. Bob Bielefeld, Kenai Aviation Mr. Bielefeld not in attendance. 6. PUBLIC TESTIMONY None 7. COMMITTEE DISCUSSION Mayor Williams and Committee Member Thomson attended the ANWAR conference and were asked to give a report. ANWAR is Arctic National Wildlife R *. Committee Member Thomson reported that they arrived at a reasonably early hour and found themselves number 60+ in line, indicating an extreme amount of interest. There were perhaps 300 people in the room, however, nearly all of the people signing up were individuals rather than agencies or elected officials or representatives of organizations. We were able to speak within about 20 minutes. The position taken was that the development or the opening of ANWAR to oile~loration if not production would be a positive thing for Kenai mainly because a lot of people who live here, no not necessarily work here. We have a lot of support industries, therefore any increase in employment in this field could only help Kenai. What is happening to Kenai is nearly traumatic and I have seen this same thing happen overseas where you have oil industries. In the next 10 to 20 years, with the way oil consumption is going we are going to have a deficit in supply, oil prices are going to go up, and at that time, if the decision is not made now, it will be made then when oil is $50 per barrel and we're going to be throwing money and a problem and trying to solve it. Mayor Williams pointed out that 30 years ago when we began the economic development of Alaska using oil as a base, we started on a national wildlife refuge here in Kenai. We are now seeing the same request on another wildlife refuge. Using the Kenai refuge as an example, it is in far better shape as far as wildlife ecology, and more useful to the people than 30 years ago. Giving 15 years of lead time to develop fields makes a lot more sense then going into a crash management program. Ten years from now expenditures will probably double to develop. There were two separate oil companies, a rider, and resource development council all requested copies of the speech. Chairman O'Reilly reported on the Hudson Bay project. The schedule now is a party of four from Hudson Bay will be bringing in their ECONOMIC DEVEI i4ENT COMMITTEE January 6, 1987 Page 10 eastern, western, and transportation person plus Mr. Whitman who is now retired but still active on a part time basis. They will be supplying their own aircraft. The schedule is Monday in Kenai with a 10 AM presentation in the library conference room, the Committee is welcome to join them. Mr. Fried, a Borough representative, Mr. Brighton, and Mr. Carter will all give a presentation. Tuesday, Wednesday, and Thursday is their schedule. Friday they will be in Juneau with a presentation from Depts. of Commerce and Revenue. Then the Governor and a reception. The Committee felt that it would be a good policy for the Chairman to go to Juneau utilizing the Commission budget. MOTION: COmmittee Member Scott moved to request that funds from the Committee budget be utilized for the trip for the Chairman, seconded by Committee Member Carter. VOTE: Motion passed unanimously. Chairman O'Reill¥ informed the Committee that while here, the Borough would like to take the members of the party on an air tour by helicopter and have asked if the City was interested in splitting the cost of the helicopter. MOTION: Committee Member Carter moved to approve the. appropriate funds, seconded by Committee Member Scott VOTE: Motion passed unanimously. 8. PREPARE NEXT AGENDA The next meeting will be January 27th rather than the third Tuesday of the month. The utility companies will be asked to send a representative to speak. 9. ADJOURNMENT (9: 30 PM) There being no further business, the meeting was adjourned at 9'28 PM. Janet A. Loper, Planning Specialist Secretary to the Committee