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HomeMy WebLinkAboutOrdinance No. 3415-2024Sponsored by: Administration CITY OF KENAI ORDINANCE NO. 3415-2024 AN ORDINANCE AUTHORIZING A DONATION OF SURPLUS SAND FROM THE KENAI MUNICIPAL AIRPORT TO THE TRIUMVIRATE THEATRE FOR THE CONSTRUCTION OF A NEW THEATRE. WHEREAS, by Ordinance 3219-2021, the City of Kenai donated approximately two acres of land with an estimated value of $200,000 to Triumvirate Theatre, a 501(c)3, for the construction of a new theatre in the City after their facility was destroyed by fire on February 20, 2021; and, WHEREAS, the construction of the new Triumvirate Theatre is estimated to need 5,000 cubic yards of sand; and, WHEREAS, at Triumvirate's request, the administration had previously agreed to sell surplus sand from the Kenai Municipal Airport for the project at a cost of $6.50 a yard; and, WHEREAS, the Airport has determined the sand to be surplus and is no longer using this sand in its operations due to its quality; and, WHEREAS, the sand is located on the airport in an area easily accessible, not requiring airport resources to move, and its removal is not expected to cause disruptions to airport operations; and, WHEREAS, the total value of the sand needed is estimated to be $32,500; and, WHEREAS, Federal Aviation Administration (FAA) grant assurances require the City to manage assets of the Airport for the betterment and benefit of the Airport; and, WHEREAS, at the request of Triumvirate Theatre and approval by the City Council at its April 3, 2024 meeting, the administration requested a community purpose exemption from the FAA for the ability to donate sand to the construction project which was approved by the FAA on April 10, 2024; and, WHEREAS, surplus sand from the Airport has been sold in the past to developers of airport projects and the City's General Fund for City projects and, if approved, the requested donation of sand would be the first such donation to a not -for -profit organization utilizing the FAA's community purpose exemption; and, WHEREAS, at its meeting on May 9, 2024, the City of Kenai Airport Commission recommended enactment of this Ordinance; and, WHEREAS, donation of surplus sand in support of the Triumvirate Theatre's efforts to construct a new theatre in Kenai is a benefit to the City by enhancing the quality of life for its resident, the expansion of economic activity and is in the best interest of the City. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, AS FOLLOWS: Section 1. That the City Manager is authorized to donate up to 5,000 cubic yards of sand to the Triumvirate Theatre from the Kenai Municipal Airport. Section 2. Severability: That if any part or provision of this ordinance or application thereof to any person or circumstances is adjudged invalid by any court of competent jurisdiction, such judgment shall New Text Underlined; [DELETED TEXT BRACKETED] Ordinance No. 3415-2024 Page 2of2 be confined in its operation to the part, provision, or application directly involved in all controversy in which this judgment shall have been rendered, and shall not affect or impair the validity of the remainder of this title or application thereof to other persons or circumstances. The City Council hereby declares that it would have enacted the remainder of this ordinance even without such part, provision, or application. Section 3. Effective Date: That pursuant to KMC 1.15.070(f), this ordinance shall take effect immediately upon enactment. ENACTED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, THIS 15T" DAY OF MAY, 2024. ATTEST: Michelle r, C, City Clerk Brian Gabriel Sr., Mayor Introduced: May 1, 2024 Enacted: May 15, 2024 Effective: May 15, 2024 New Text Underlined; [DELETED TEXT BRACKETED] City of Kenai 1 210 Fidalgo Ave, Kenai, AK 99611-7794 1907.283.7535 1 wwwkenai.city MEMORANDUM TO: Mayor Gabriel and Council Members THROUGH: Terry Eubank, City Manager FROM: Derek Ables, Airport Manager DATE: April 19, 2024 SUBJECT: Ordinance No. 3415-2024 — An Ordinance Authorizing a Donation of Surplus Sand from The Kenai Municipal Airport to The Triumvirate Theatre for The Construction of a New Theatre. By Ordinance 3219-2021, the City of Kenai donated approximately two acres of land with an estimated value of $200,000 to Triumvirate Theatre, a 501(c)3, for the construction of a new theatre in the City after their facility was destroyed by fire on February 20, 2021. In addition to this land donation, the Triumvirate Theatre has requested he donation of approximately 5,000 cubic yards of surplus sand from the Kenai Municipal Airport for the project. Federal Aviation Administration grant assurances require the City to manage assets of the airport for the betterment and benefit of the airport. A community purpose exemption is needed to maintain compliance with FAA grant assurances in order to donate the requested sand. At the April 3, 2024 Kenai City Council Meeting, authorization was provided to seek a community purpose exemption from the FAA to donate surplus sand to the project. The Airport's request for a community purpose exemption was approved. The Airport has determined the sand to be surplus due to its quality and the cost to refine the sand in order to meet FAA specifications for use on the airfield. The sand is also located in an easily accessible area, is within a short haul route to the construction site, and its removal is not expected to cause disruption to Airport operations. Surplus sand from the Airport is valued at $6.50 per yard and has been sold in the past in support of development on the Airport and other City projects with compensation paid to the Airport by developers or the City's General Fund. The estimated value of the requested donation is $32,500. If approved, the requested donation of sand would be the first such donation to a not -for -profit organization utilizing a community purpose exemption. At the upcoming May 9, 2024 Airport Commission Regular Meeting, the Commission will provide their recommendation on the enactment of this Ordinance. April 24, 2024 Dear Council Members: Thank you so much for considering approving the donation of sand from the airport for the construction of the new performing arts center here in Kenai. The construction and operation of this new childrer's theater will be a tremen- dous community benefit to the city of Kenai. We greatly appreciate the city's wiliness and commitment to this project. The donation of land to build this new facility is a great blessing. Unfortunately, it is going to cost a great deal to develop this property because the water table is so high. Originally, the cost of developing the property was over $800,000, a staggering sum, especially for us. Thanks to our architect and the city's administration, we were able to reduce parking, utilizing street parking to meet the require- ment. This greatly reduced the area that had to be developed. However, the estimated cost of developing the lot is still $408,000. I am looking for anyway to reduce that amount. In order to pay for the construction of the $3.5 million dollar building that has already begun, we are going to have to borrow up to $500,000 from the Rasmuson Foundation's PRI program. Although this loan program has an incredibly favorable rate over a 12-year period, it still is going to necessitate a monthly payment. The less Triumvirate has to bor- row from this program, the more sustainable our operations in Kenai will be after the building is completed early next year. I don't want to build a multi -million dollar building in Kenai, just to struggle to keep the doors open and provide theater programs for the kids here and the surrounding area. The lower the mortgage payment on the building, the more we can put into the children and youth of Kenai. Thank you for considering helping us make our operations in Kenai as sustainable as possible. Every little bit helps and will make a measurable difference in providing the best service to kids here in our community. Best, Joe Rizzo Executive Director p.o. box 322 kenai, alaska 99611 907.394.1159 1 www.triumviratetheatre.org hereliesdrama@hotmail.com triumvirate THEATRE LD z 0 w a W 0