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HomeMy WebLinkAbout1988-05-12 Economic Development Commission SummaryEconomic Development Commission May 12, 1988 - 7:00 PM Held, Homer Electric Association Conference Room Minutes of Regular Meeting Presiding: Vince O'Reilly, Chairman Meeting was called to order by Chairman O'Reilly at 7:00 P.M. 1. ROLL CALL Present Absent Vince O'Reilly Darren Bond Jim E 1 son Penny Dy er Jim Carter Barry Thomson Bob Scott (excused) In attendance: Roland Lynn, Contract Services for E.D.C.; Tim Rogers, City Attorney; Charlie Brown, City Finance Dept.; Paul Webb, State of Alaska Corrections 2. APPROVAL OF AGENDA Chairman Vince O'Reilly announced that the agenda is a simplified one for this meeting and for next Thursday night, May 19, 1988. There was an addition to the agenda to inClude Commission Member Penny Dyer to report on a meeting with Alaska Tourism. The agenda was accepted as amended. A. Alaska Tourism Commission Member Penny Dyer made a brief report on a meeting she attended with Alaska Tourism. She will make a presentation on it at the June 9 meeting. The meeting was represented by most of the Chambers of Commerce, and others directly related to tourist industry. The Director of Alaska Visitors Association and Director of Alaska Tourism were in attendance. A presentation was made by West Tours, and a presentation by Attorney Bob Brees from Anchorage, who is trying to get a 72 hour visa on fueling stops in Anchorage so that travelers will be able to shop. The statewide picture is optimistic. They came down to help promote the Kenai Peninsula and present ideas as to where funds might be available. Economic Development Commission May 12, 1988 Page -2- B. State of Alaska Corrections The Economic Development Commission of the City was charged by the Council to come up with an economic consideration of a possible annexation of Wildwood. Chairman Vince O'Reilly asked Paul Webb of Wildwood to make his presentation. Paul Webb reported that Wildwood is holding 204 sentence prisoners, 106 at pretrial facilities. Budget is five million dollars, but will go up a little with new positions. They are now leasing the land, but the Commissioner budgeted to purchase the land, but it did not get past the Governor. One of the Commissioner's priorities was to get some half-way houses in the state. This was in the budget this year, but did not get past the Governor's office. There are two prison industries; the wood plant is running $100,000 worth of goods behind now; the mill shop is holding its own. There are 100 employees. He stated that the Wildwood location has worked out with no problems with the community. Demand for prison space continues, and projected to continue and will stay at capacity. Does not see need for expansion. State policy is to use local purchases and services as much as possible. C. City Attorney A question arose regarding taxing property where the owner is a Native Corporation. City Attorney Tim Rogers presented his Memorandum to the Commission, regarding Annexation of Wildwood, including a protest on taxation which he anticipates will be litigated and resolved in the courts. He reported that one way to annex the property would be to have the state purchase the property, and then annex and lease it back. The City may not want to annex the property while ownership resides in the Native Corporation, as there may be an impediment. The city could find itself annexing the property, acquiring sub-standard roads, sewers, water, streets, and being compelled to upgrade without the ability to assess for that. Economic Development Commission May 12, 1988 Page -3- He sees two serious legal problems: One is taxation of property under the Native Settlement Act, and secondly subjecting those lands to planning and zoning regulations. D. City Finance Charlie Brown of Kenai City Finance stated that in the long run, the Municipality has to be able to rely on the property tax in order to finance the services. As long as this is in question, he doesn't think that they should move ahead, because he doesn't believe that the other sources of revenue can be relied upon. The capital improvement costs cannot be quantified because they are unknown. Recess was at 8:45 P.M. 3. COMMISSION QUESTIONS & COMMENTS After much discussion by the Commission. Members, Chairman Vincent O'Reilly asked Roland Lynn to prepare a draft of recommendations for the EDC to present to the City Council. He will prepare a check-list of disadvantages and identify short term problems that must be resolved before anything can be done. This will include legal questions, the utility questions, the easement questions, etc. that are reasons that the Commission does not feel this is a wise decision for the city of Kenai at this time. Chairman O'Reilly requested that Roland Lynn get a copy of the Economic Development Commission minutes for this meeting when they are distributed to the Commission members. The next regular meeting will be June 9. The Commission members will bring Roland Lynn's draft to the meeting and come up with a final recommendation which would be submitted to the City Council June 15. Other items outstanding for June 9 meeting: 1. Economic development matters in the national, state and local level that the Commission wants to look at and offer recommendations to the Council. 2. Get information on the data bank. Economic Development Commission May 12, 1988 Page -4- 4. SPEAKER FOR SOLDOTNA CHAMBER OF COMMERCE MEETING Chairman O'Reilly asked for a volunteer to attend and speak to the Soldotna Chamber of Commerce meeting May 31 to explain what the Economic Development Commission of the City is doing. MOTION , , Darren Bond moved, seconded by Penny Dyer, that Barry Thomson be appointed as the speaker for the Soldotna Chamber of Commerce meeting May 31. Motion carried by unanimous consent. 5. ADJOURNMENT The meeting adjourned at 9:30 P.M. Wilma L. S taton, Recording Secretary Niva's Clerical Services for the City of Kenai