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HomeMy WebLinkAbout1988-03-03 Economic Development Commission SummaryECONOMIC DEVELOPMENT/HARBOR COMMISSION March .3, 1988 City Hall - Council Chambers Vincent O' Reilly, Chairman, EDC Tom ThOmpson, Vice Chairman, Harbor ROLL CALL Present- O' Reilly, Bond, Carter, Thomson. Tom Thompson, Eldridge, Crabaugh, Nord - Harbor Commission Absent- Elson, Dyer, Scott, Quesnel, (all excused) Jahrig, Meeks, Page, (all unexcused) Also Present- Gary Ervin, Seafoods from Alaska; Mayor Williams; Stan Stedman, Kenai Peninsula Borough; Councilman Tom Ackerly; Jack LaShot, Engineer, City of Kenai I Ph%sical Parameters of Seafood Proposals A. Land B. Utilities 1. Water 2. Sewer - disposal, septic waste The sewage created by the processing of the fish is anticipated to be less than that being released into the river already by other fish processors. 3. Power - electric, gas Gas is not necessary at this point in time. Electricity is available to the boating facility and can be brought to the site. C. Transportatio.n Needs 1. Main Access - Nothing is needed at this point in time, access can be gained by a road brought from the main highway. The Commission agreed that Option A would be the best point for access. The road is narrow, but not winding. 2. Secondary - The second route could be to put a road in from the Boat Launch Road. 3. Mr. Ervin was asked if the airport would be a more feasible point for his operations since he had spoken earlier about the amount of transporting to the airport that his ECONOMIC DEVELOPMENT/HARBOR COMMISSION March 3, 1988 Page 2 business generates, answer no. The very nature of the business is best suited to be near water. The use at the airport would consist of a gift area in the terminal where package items could be sold, but not a large facility. 4. River Transit The business has used this mode in the past and the product will use barging for transportation with freezer vans. There will be an increase in airport transportation to Anchorage for orders going out during the summer as tourists like to take their orders with them, i.e. have them transported to the airport for loading onto the plane. II Method of Operation A. Product Flow , , The first stage is to head, gut, and flash freeze. The second phase is loading into a van. The outflow can be as high as 10,000 to 20,000# depending upon many factors such as the season. The third phase is completing the packaging and storage. The Commission and Mr. Ervin discussed bonding of the storage facility. As the Commission had no information regarding the cost, this will be researched. B. Various Points of Product Conversion , ,, Most of the product goes to Anchorage or Sterling. The plant for the secondary process is either in Anchorage or Sterling. C. Seasonal Phases The widest stretch of the season runs from June to mid-September. Councilman Ackerly asked if the business were planning to get into other types of seafoods such as shrimp, answer yes. They are in the early stages. D. Commu, nitY Amenities The Commission asked Mr. Ervin about such operations as hotels, conference centers, etc., Mr. Ervin answered no. E. Other The Commission further discussed the monetary issues regarding the facility, bonding, land, and grant application as it appears in the written proposal. ECONOMIC DEVELOPMENT/HARBOR COMMISSION March 3, 1988 Page 3 EDC Recommendation to Council The Commission discussed the recent survey conducted by the City of Kenai of the Peninsula area fishermen and noted that their are mixed in their needs for ice or storage facilities. The Commission, in looking at the total picture asked Engineer LaShot for an estimate of costs for the road in Option A, Mr. LaShot answered, "a very rough estimate would be between $200-300,000. The next issue addressed was the land, as the desired location is private property. The land was appraised for $180,000 last year and using a rough figure of $200,000 would be appropriate for an estimate for the purpose of putting together a package. Mr. Stedman discussed the federal funding, stating that Mr. Richert had been on the Peninsula last week and indicated the EDA may be willing to go as high as $900,00 for this type of project. The normal match is 50%. The funding package would appears something like this- 1.3 million base 250,000 road 50,000 utilities 1.6 million 800,000 City Share of matching grant 200,00 Dept. of Commerce 600,000 200,000 land Mr. Stedman informed the Commission that Mr. Richert is anxious to see the City of Kenai move forward with this project. If things come together in the next 2 to 3 weeks, the preparation of the grant application will complete the first phase. Mr. Ervin needs to see willingness to commit to the project. You need to have such things as perhaps a site preparation package. Council will also have to have physical paper work and review prior to the next meeting. The Commission agreed that April 6th would be the target for presenting to Council. Time table for Presentation: 3/8 3/10 3/ o Phone Mr. & Mrs. Coyle regarding land sale Alternative is to approach Mr. Fredrickson Contact Mr. Weideman - Dept. of Commerce Direct the Engineer to begin study of site (road, fill, engineering) Dana meet with Borough for complete package Direct the attorney to begin a lease package Assemble information on the building and cost of bonding The Meeting was Adjourned Janet A. Loper, Planning Specialist Secretary to the Commissions