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1988-10-13 Economic Development Commission Summary
Economic Development Commission October 13, 1988- 7-00 P.M. Homer Electric Association Conference Room Vince O' Reilly, Chairman AGENDA I CALL TO ORDER II ROLL CALL III APPROVAL OF AGENDA IV MINUTES OF August 11, 1988 FREE DISCUSSION BY COMMISSIONERS ( 15 Minutes) VI ITEMS FOR EDC CONSIDERATION FOR POSSIBLE RECOMMENDATIONS TO CITY COUNCIL VII PERSONS PRESENT SCHEDULED TO BE HEARD VIII OLD BUSINESS A) Review of Cold Storage Project by City (City Manager) B) Finalize Draft Letter to Kenai Natives Association C) Discussion- Borough Detachment IX NEW BUSINESS A) Report from Commissioner Thomson on RDC Meeting X OTHER BUSINESS XI SET NEXT AGENDA XII ADJOURN = 9- 30 P.M. ,,, EDITED AND UPDATED MINUTES 10- 21- 88~ ECONOMIC DEVELOPMENT COMMISSION October 13, 1988 7 pm Homer Electric Association Conference Room Vince O'Reilly, Chairman 1. Meeting was called to order by Chairman Vince O'Reilly. 2. ROLL CALL Vince O'Reilly Barry Thomson Darren Bond ~ · '~. Jim Carter Bob Scott - Excused Penny Dyer - Absent PERSONS PRESENT Sallie Bailie Mayor John Williams Bill Brighton Pat O'Connell Linda Swarner Stan.Steadman Kevin Fenner Shelly Edwards Jim Butler Jack Brown Gary Superman Karen McGahan Phil Ames Richard McGahan 3~ APPROVAL OF AGENDA Corrected: Under Old Business Item C. OEDP Presentation. (Overall Economic Development Program) Item D. Discussion:Borough Detachment Item E. Persons present scheduled to heard. Karen McGahan, Gary Superman Jack Brown Agenda stands approved as corrected. 4. MINUTES OF AUGUST 11, 1988 MEETING. Minutes were approved as submitted, no corrections or additions. 5. FREE DISCUSSION BY -COMMISSIONERS By agreement of all commissioners this item was deleted in order to give more time to persons scheduled to be heard. ECONOMIC' DEVELOPMENT COMMISSION October 13,' 1988 .Page '2 6. ITEMS FOR EDC CONSIDERATION FOR POSSIBLE RECOMMENDATIONS TO CITY COUNC IL . None. 7. PERSONS PRESENT 'SCHEDULED TO BE HEARD. See Item E. Old Business. 8. OLD BUSINESS A. Review of Cold Storage Project by City Manager. Bill Brighton stated the Cold Storage Proposal needed one more clearance befor the final disposition in Washington. He said that at this time there is no action needed .by. the. Economic Development Commission. B. Finalize Draft Letter to the Kenai Native Association. Chairman Vince O'Reilly reviewed the Draft letter with the commissioner· present and all.were in agreement to finalize this letter and submit it to the Kenai City Council. All commissioners felt that final draft should go befor the City Council befor sending to the Kenal Native Association. C. OEDP PRESENTATION. Commissioner. Jim. Carter pa'ssed out the OEDP Table of Contents, gave some background information on the OEDP,some additional · information on the Borough Plan, plus the Overall ~Economic Development Plan. · Kevin Fenner, who is the Director and Planner explained what work was currently being done .and the methods being used for gathering data. He said all persons and groups involved are moving forward with the developing of the EDD, and at this time Mr. Carter passed out the booklet, for viewing, that the Committee had put together.. It was also mentioned that 'they had contracted for a study on the LNG and more would be heard on this in the future. Mr. Fenner .gave some background on the Comprehensive Plan for. the City of Kenai and said that it is one priority with the committee since it had never been finalized. He stated'that they would like to work with the EDC, the Kenai City Council, and the Planning Commission to. update that document, and are moving ahead on this work to bring it to ,the point of adoption. · Shelly Edwards, who is the Planner, presented what they were now doing at this time on gathering data for the Data Base and using the ~information to pass on, to interested groups and individuals. Commissioner Darren Bond asked if the information that they were gathering would be accessible, since in the past it had been difficult ECONOMIC DEVELOPMENT COMMISSION October. 13, 1988 Page 3 to obtain figures, and what was being done? She replied that all the information that they were working on and gathering would be mado available plus tho now Borough Adm±nistration wants to an oPen communication with committees and commissions plus organizations, and in this way they would be trying to not duplicate work all ready done. Stan Steadman mentioned the GIS Program (Geographic Information System ) and all persons present were impressed at the capabilities of such a Program. Again Mr. Carter said that the EDD wanted t© finalize a Work sessi6~n with the Kenai Economic Development Commission so that will be done in the near future. D. BOROUGH DETACHMENT Chairman Vince O'Reilly asked that those present follow along with him in reviewing the Study Prepared by the City of Kenai Economic Development Commission,. for the Kenai City Council. All commissioners present were asked to comment about the study ~and the .feeling from the EDC Commissioners was that a great deal of work had gone into the study and it should now go to the City Council. At this time Karen McGahan, Gary Superman and Jack Grown asked to make comments' to the EDC Commission on the Borough Detachment. These · people had not seen..the study and asked to be able to read it. Mrs. McGahan said she believes the State of Alaska Representatives that she has talked to are· encouraging those interested to pursue this Detachment Issue. She also felt the school board was very pro Soldotna and by having a new borough there would be more. of an equal'voice for the various districts. Questions were asked as to why · Nikiski was not able to accomplich what they needed, and why only a few people were working on this issue? Council Member Sallie Bailie asked Jack Brown what time frame they were looking at in order to move ahead on the Detachment Issue and he stated that none had been established at this time. A great deal of discussion followed with all persons present and the three peoPle from Nikis]~i felt' they could not make a'good presentation now but wanted to come befor the EDC commission at a future date. Mr. Jack Brown said that the Detachment Committee is relying on the City of Kenai and the information resources available to it, to furnish information and was pleased with the Study 'that the EDC had completed. Mr. Superman said that there are four or five folks working on the Detachment Committee and feels more information needs to be gathered plus fund raising befor the issue can be put to the people. ECONOMIC. DEVELOPMENT COMMISSION October 13 ,'..19 8 8 Page 4 Jim Butler said thatthe people are concerned with this Detachment Issue and it needed to be addressed and settled in a timely manner. Chairman O'Reilly asked if a motion was in order at which time Commissioner Barry Thomson made a motion that the study be submitted to the Kenai City Council and if more direction were needed, the City Council should specify exactly what was needed and perhaps a time frame established. This motion was seconded by Commissioner Darren Bond. Roll Call Vote was taken: Darren Bond Yes Barry Thomson Yes Jim Carter Yes Jim Elson No Vince O'Reilly Yes Chairman O'Reilly asked that the two following recommendations be included in the minutes of this meeting and that' the minutes be included with the Study prepared by the Economic Development Commission and sent. to Kenai City Council. 1. Perhaps the Kenai City Council will need a better definition by the North Kenai Groups of what is wanted and to what degree of citizen support exists for those wants. 2. That they may want to consider that since the risks of all parties, Kenai, North Kenai, the Borough, and the State, are different and unequal, that any negotiations must include all parties that are at risk. If the wholesale, retail center~, that we are, is considered, and the sensitivity of that and the people, it is felt the City of Kenai should not be in the position of greater risk. All parties at risk, the Borough, the State, North Kenai and Kenai, should be involved in the negotiations. Also since North Kenai seems to be more interested in ~additional powers and controls and the balance of the Borough seems to · be more concerned in maintaining the present tax base there may be some type of a compromise where service areas can share tax base and this should be examined by North Kenai. Bill Brighton said he felt the EDC should go thru the extensive information on Borough Detachment provided, and sort out the ~necessary information needed. He felt the Council was asking for ~help in this matter and the EDC had been charged to do this. Commissioner Thomson replied that the EDC was directed to do this with'out any direction given, only to provide Council with as much 'information as could be obtained for their consideration· and that it certainly could be sent back to the EDC with more direction .given. Also the Council is an elected body by the people of Kenai and the EDC is an appointed Commission. ~CONOMIC DEVELOPMENT COMMISSION October 13,'~ 1988 ~ Page 5 Commissioner .Bond reminded those, present tha~ the EDC was not asked to make a recommendation and also not asked .to sensor the information gathered but rather to gather as much information and then present it to council. Commissioner Jim Elson asked to make a statement to be included in the minutes and recor'ded. He is opposed to pursuing this issue any further. First, this is the third time that the City has been involved in Detachment and there has been reference made this evening by a .couple of witnesses at the attempt in '19~72 and it was eluded that at.that time' information was not put' together properly, nor was there proper information provided and also 'that. the opposition came. from' other areas other than the Nikiski area. Mr. Elson stated tha'~ having been a part of that, and a representative .of the City of Kenai at that time, he has different memories of,what happened.. For one, the opposition of the unification at that time came strongly from' the Nikiski area, opposing the unification. Secondly, the City of Kenai, at this point,, has nothing to gain except the loWer tax base and we have all the powers that are needed plus we are in a' good position now with an excess of. some 65 million, that the City of Kenai has, for a number of.years, s~truggled to build those assets, and he sees no reason, to put this in any kind of jeoparad7 of which there is that possibility. Third, in refering, to the supposedly lower tax base, there are things that could occur within' the supposedly new borough, as refered to by the Nikiski people, such as pollution control and cleanup, which could raise their tax base, so .there really is no promise of their being lower taxes. Looking at the report that Mr. Lynn presented,. there are numerous ,questions raised as to how the' assets of the tax base and services could be provided and there is no cohesive answers, and possibly years of litigation that would be involved in resolving a number of these answers, in which the City of Kenai would have to bare some of those expenses. If the people of Nikiski are really serious in pursuing., the separation and want to include the City of Kenai than he thinks they. have to come to 'the City with a much stronger and better prepared proposal, answering some of these questions He doesn't feel at this point it should be the position of. the .City of Kenai to be the one to provide those answers. Again the City should not be the one to provide those answers because the City has n. othing to gain from it. Answers as to how ~the bonded indebtedness is to be split, whether it is going to be a second class borough,~ whether it would be unified? here needs to be a concrete 'proposal and until we know that the people of Nikiski are satisfied with the type of government they are seeking, there is no reason for the City of Kenai to make a financial commitment or take a position one way or another. Again the City has noting to gain by pursuing this any further. The people of Nikiski have everything to gain by finding the answers to these questions and then coming to the City with a concrete proposal. A proposal where which we could, get legal advice, as to . if it is pursued what would be the outcome? Now, there are so many questions nobody knows where to begin. Nobody even knows what to ask an attorney. He does not see it as the' responsibility of the City of Kenai to pursue it'.. He states that "we have been offered ideas and ECONOMIC DEVELOPMENT COMMISSION October.' 13,'..1988 · Page 6 some grieviences that some 'peOple 'have PreSented against the present Borough and there 'is nothing to guarantee that if we are a · part of a new Borough that. animosity be 'shifted toward us as being in control .. of either the population or economics, as well as incurring animos'tty from 'the rest 'of the population .that we serve." The attempt in 1972 was supported by very .influential people from Nikiski and there was a great' deal of media coverage 'and a very active compaign from both Kenai and Nikiski however it did not haVe the 'support of the people. "I feel something has to be done to .bring 'this .befor the population." .. Commissioners Barry Thomson, and Darren Bond were in agreement with Commissioner Jim 'Elson and wished to go on record as .supporting his statement. 9.~'NEW BUSINESS 1. Report from Commissioner Thomson on RDC Meeting. This meeting was held September 19, 1988 .at Healy,Alaska and was at~ the Usebilli Coal Mine. He Said that the RDC is very interested in development of our natural resources in Alaska and their number one priority is to have ANWAR open. They are also working hard .to obtain some hard rock mining regulations established. It was4 also mentioned that Cheryl Sutton was nominated to be On the Recreational Rivers ~Advisory Committee but he was not sure~ if she had accepted. Commissioner Thomson was most impressed at the organization of the..RDC and how much they had accompotished in Alaska. 2. CommissiOner Jim Carter submitted his' resignation to he EDC Commission and asked that it be accepted at this time. All commissioners present thanked him. for the work that he had done and said it had been very good working with him. His knowledge and expertise was appreciated. Meeting adjourned at 10:55 pm. '~.G. Donald 'for Services LTD. ~ity of Kenai 10-19-88 Edited-10- 27- 88