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HomeMy WebLinkAboutResolution No. 2023-58Sponsored by: Administration CITY OF KENAI RESOLUTION NO. 2023-58 A RESOLUTION AUTHORIZING A TWELVE-MONTH EXTENSION OF TIME FOR GOOD CAUSE FOR THE COMPLETION OF PERMANENT IMPROVEMENTS FOR A LEASE BETWEEN THE CITY OF KENAI AND ALASKA AIR FUEL, INC., FOR AIRPORT RESERVE LANDS DESCRIBED AS LOT 5A, FBO SUBDIVISION NO. 10. WHEREAS, Resolution No. 2020-72 approved a lease between the City of Kenai and Alaska Air Fuel, Inc. for Lot 5, FBO Subdivision No. 7, which was subdivided to Lot 5A, FBO Subdivision No. 10 for lease execution; and, WHEREAS, the lease requires the lessee to prepare site for construction and construct tarmac, and hangar facility with offices, no later than September 30, 2023 with an aggregate cost of at least $1,000,000, excluding financing costs; and, WHEREAS, the lessee has requested a 12-month extension to complete the improvements due to the extenuating circumstances of years of COVID-19 related slowdowns, which have limited their capability to do "business as usual' during that time frame; and, WHEREAS, KMC 21.10.080(g)(5) allows the Council to extend the time for completion of permanent improvements required in a lease for up to twelve months for good cause; and, WHEREAS, COVID-19 related impacts on the business operation and personnel constitute good cause justifying a twelve-month lease extension. NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA: Section 1. That the City Council agrees to amend the lease with Alaska Air Fuel, Inc. for Lot 5A, FBO Subdivision No. 10 to extend the date that improvements are required to be completed to September 30, 2024 for good cause as described above. The Council further authorizes the City Manager to execute a lease amendment with Alaska Air Fuel, Inc. to effectuate the extension. Section 2. That this Resolution takes effect immediately upon passage. PASSED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, THIS 20T 4 DAY OF SEPTEMBER, 2023. T Brian Gabriel Sr., Mayor ATTEST: Mic elle . Sa C, City Clerk New Text Underlined; [DELETED TEXT BRACKETED] x�l i' K6, City of Kenai 1 210 Ficlalgo Ave, Kenai, AK 99611-7794 1907.283.75351 www.kenaixity MEMORANDUM TO: Mayor Gabriel and Council Members THROUGH: Terry Eubank, City Manager FROM: Linda Mitchell, Planning Director DATE: September 12, 2023 SUBJECT: Resolution No. 2023-58 — Alaska Air Fuel, Inc. Lease Extension Due to the extenuating circumstances of years of COVID-19 related slowdowns, which have limited their capability to do "business as usual' during that time frame, Alaska Air Fuel, Inc. has not begun the physical construction process in the preceding two years since lease inception. Alaska Air Fuel, Inc. has requested a 12-month extension to complete their required improvements on Lot 5A, FBO Subdivision No. 10 under Resolution No. 2020-72 (see request letter). The request for a 12-month extension is consistent with KMC 21.10.080(g)(5). Similarly, to the recent requests by Schilling Rentals, LLC and SOAR International Ministries, Inc., if a building is ordered in a reasonable timeframe but cannot reasonably be delivered or erected in the additional one-year period, Administration would be supportive of a future non -code ordinance allowing additional time to complete the project if justified. Thank you for your consideration. Attachment Request Letter Resolution No. 2020-72 Linda Mitchell From: ALASKA AIR FUEL, INC. <alaskaairfuel@protonmail.com> ent: Friday, September 8, 2023 1:54 PM o: Linda Mitchell c: Mary Bondurant; Kellyn Sliwinski; Nancy Sliwinski; secoyhrs@gmail.com Subject: Lease of Lot 5A, FBO Subd. No. 10 - Alaska Air Fuel, Inc. Follow Up Flag: Follow up Flag Status: Flagged CAUTION: This email originated from outside your organization. Exercise caution when opening attachments or clicking links, especially from unknown senders. Linda, We apologize for not readily catching your phone call, as we have been flying fuel to our villages here in Alaska. Regarding our leased lot. Due to the extenuating circumstances of years of COVID19 related slowdowns we are requesting acknowledgement of the incapability to do "business as usual' during that time frame. Therefore, we are hereby requesting an extension to our leased lot: SA, FBO Subd. No. 10: located on the Kenai Airport. With the governmental regulations of COVID19 recently being rescinded a few months back in May of 2023 we are now able to move towards improvements. We can provide any additional information to substantiate the request of an extension due to the extended time frame of COVID19 constraints placed upon businesses if deemed necessary beyond general knowledge thereof. Our business that is deemed an "Essential Business" by the State of Alaska, as we are a vital part of sustaining the ifrastructure keeping homes in Alaska warm. Our company was no less impacted during the COVID19 timeframe of 2020- '023; in fact, we sadly & very unfortunately lost one of our experienced captains to COVID19. This loss had a profound npact on our business that relies on high time, specialty aviators with both Alaskan and round, multi -engine experience to crew our aircraft(s). Please consider the unprecedented, unpredictable times with coinciding circumstances well beyond our control as acceptable reasoning for our request of extension here within. Thank you in advance, John Sliwinski 907-317-5368 (Owner) Alaska Air Fuel, Inc. 3700 W. Aviation Ave. Wasilla, AK 99654 KENAI CITY OF KENAI RESOLUTION NO. 2020-72 Sponsored by: Administration A RESOLUTION OF THE COUNCIL OF THE CITY OF KENAI, ALASKA APPROVING THE EXECUTION OF A LEASE OF AIRPORT RESERVE LANDS USING THE STANDARD LEASE FORM BETWEEN THE CITY OF KENAI AND ALASKA AIR FUEL, INCORPORATED, FOR A PORTION OF LOT 5, FBO SUBDIVISION NO. 8. WHEREAS, Alaska Air Fuel, Incorporated, submitted a complete lease application to the City and paid the required application fee; and, WHEREAS, Alaska Air Fuel, Incorporated, is eligible for a lease for a term of 45 years based upon an investment amount of $1,000,000 and pursuant to KMC 21.10.080 —Length of Lease Term; and, WHEREAS, Alaska Air Fuel, Incorporated, is current on obligations to the City of Kenai for its existing special use permits; and, WHEREAS, a subdivision is necessary to create the parcel Alaska Air Fuel desires to lease; and, WHEREAS, other Airport purposes are served by the subdivision because an additional lease lot will be created and the right-of-way will extended for North Willow Street in alignment with the Airport Layout Plan and; and, WHERAS, City Council may choose that the City will share in the subdivision costs with an applicant under Kenai Municipal Code 21.10.040(c) if other airport purposes are served by the subdivision; and, WHEREAS, the lease use will be a fixed based operator (FBO) with hangar and office; and, WHEREAS, the lease use is compatible with Kenai Municipal Zoning Code for allowed uses within the Airport Light Industrial (ALI) Zone; and WHEREAS, the lease use conforms to the 2016 Comprehensive Plan and supports Goal 5 — Transportation: provide transportation systems that are efficient and adequate to serve the regional needs of the community; and, WHEREAS, the use proposed is compatible and conforms with the Airport Land Use Plan, Airport Layout Plan, Federal Aviation Administration regulations, Airport Master Plan, Airport Improvement Program grant assurances, and Airport operations; and, WHEREAS, the City of Kenai did not receive a competing lease application within 30 days of publishing a public notice of the lease application, pursuant to KMC 21.10.075 — Competing Applications; and, Resolution No. 2020-72 Page 2 of 2 WHEREAS, at its regular meeting on August 13, 2020, the Airport Commission reviewed the lease renewal application submitted by Alaska Air Fuel, Incorporated and recommended approval by the City Council; and, WHEREAS, at its regular meeting on August 12, 2020, the Planning and Zoning Commission reviewed the lease renewal application submitted by Alaska Air Fuel, Incorporated and recommended approval by the City Council as long as the lessee's subdivision of the lot would leave the City with a useful and leasable remaining parcel. NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA. Section 1. That a Lease of Airport Reserve Lands is approved contingent on a completed subdivision and the City Manager is authorized to execute a lease between the City of Kenai, Lessor, and Alaska Air Fuel, Incorporated, Lessee, after completion of a subdivision, with the following conditions: Lot improvements as outlined in lease application a hangar with office space to be completed within two (2) years of signing the lease; The lease term will be 45 years; Lot developments will prevent unauthorized access to the airfield; Structures will be built behind the 100 foot building restriction line; Parking spaces will be provided as required by Kenai Municipal Code 14.20.250 - Off-street parking and loading requirements; Alaska Air Fuel, Incorporated is responsible for all snow removal, and snow may not touch the perimeter security fence or be piled to a height that would allow access to the airport; and Section 2. That a subdivision of the property must occur prior to the lease to create a parcel with the 280 foot width and 392 foot depth as Alaska Air Fuel requested to lease, create a new parcel to be retained by the City covering the remaining adjacent treed area, and dedicate the right-of-way for North Willow Street that continues northwest through parcel 04318044, described as All of Section 32 excluding Subdivisions & Leased Areas & Kenai Municipal Airport Float Plane Basin Replat as shown on Attachment A, with the cost of the subdivision being shared equally by the City of Kenai and Alaska Air Fuel, Incorporated. Section 3. That this resolution takes effect immediately upon adoption. ADOPTED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, this 2nd day of September, 2020. YA'�hIAN GABRIEL, SR., MAYOR 164 Heinz, CM ity Cle T� ©ED ��