HomeMy WebLinkAboutResolution No. 2024-23KENAI
CITY OF KENAI
RESOLUTION NO. 2024-23
Sponsored by: Administration
A RESOLUTION AUTHORIZING THE CITY MANAGER TO EXECUTE A LEASE OF AIRPORT
RESERVE LANDS BETWEEN THE CITY OF KENAI AND D & M LAND COMPANY, LIMITED LIABILITY
CORPORATION FOR LOT 9A, BLOCK 5, GENERAL AVIATION APRON SUBDIVISION NO. 5.
WHEREAS, on April 5, 2024, D & M Land Company, LLC ("D & M Land") submitted an application to
lease a City -owned property within the Airport Reserve, described as Lot 9A, Block 5, of General Aviation
Apron Subdivision No. 5; and,
WHEREAS, D & M Land intends to use the premises for an airplane hangar to support a local airline,
such as Kenai Aviation, with an estimated investment value of $1,000,000 that allows for the maximum
lease term of 45 years in accordance with the Kenai Municipal Code (KMC) 21.10.050(b) [Lease] Term
Table; and,
WHEREAS, the proposed development would be mutually beneficial and would conform with the Kenai
Municipal Code for Titles 14 and 21, Kenai Comprehensive Plan, Airport Land Use Plan, Airport Master
Plan, Federal Aviation Administration (FAA) regulations applicable to the airport, airport improvement
projects, airport sponsor grant assurances to the FAA, and airport regulations and operations; and,
WHEREAS, the City did not receive any competing lease applications within 30 days of publishing
noticing as required in KMC 21.10.060(c) Lease Application Review; and,
WHEREAS, pursuant to KMC 21.10.070(a) the applicant has provided evidence of financial resources to
complete the proposed project; and,
WHEREAS, at their regular meeting on May 8, 2024, the Planning and Zoning Commission
recommended approval to the City Council on the consent agenda; and,
WHEREAS, at their regular meeting on May 9, 2024, the Airport Commission reviewed the lease
application and recommended approval to City Council; and,
WHEREAS, it is in the best interest of the City to enter into a lease agreement with D & M Land for the
development of the subject property to promote the growth and development of the Kenai Municipal
Airport.
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 and the City Manager is authorized to
execute a lease between the City of Kenai and D & M Land Company, LLC for the property described as
Lot 9A, Block 5, of General Aviation Apron Subdivision No. 5, as follows:
1. The construction of an airplane hangar with an estimated value of improvement of $1,000,000 will
be completed within three (3) years of lease execution, unless City Council has approved a time
extension.
2. The written documentation must be submitted to the City within 30 days of the completion of the
permanent improvements.
New Text Underlined; [DELETED TEXT BRACKETED]
Resolution No. 2024-23
Page 2 of 2
3. The lease term will be 45 years.
4. Prevent unauthorized access to the airfield during and after site improvements.
5. Structures are prohibited to encroach into the 100-foot building restriction line.
6. Lessee 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.
Section 2. That this Resolution takes effect immediate
PASSED BY THE COUNCIL OF THE CITY OF KENAI, AI
ATTEST:
ichelle . S ner. MMC. City Clerk
New Text Underlined; [DELETED TEXT BRACKETED]
City of Kenai 1 210 Fidalgo Ave, Kenai, AK 99611-7794 1907.283.75351 www kenaixity
MEMORANDUM
TO: Mayor Gabriel and Council Members
THROUGH: Terry Eubank, City Manager
THROUGH: Linda Mitchell, Planning Director
FROM: Brandon McElrea, Planning Technician
DATE: May 30, 2024
SUBJECT: Resolution No. 2024-23 — Approving the Execution of a Lease of Airport
Reserve Lands for the Property Described as Lot 9A, Block 5, General
Aviation Apron Subdivision No. 5
D & M Land Company, LLC ("D & M Land") submitted a land lease application of an Airport
Reserve Land for the property described as Lot 9A, Block 5, General Aviation Apron Subdivision
No. 5, located at 155 N. Willow Street (KPB Parcel No. 04324026). The applicant is requesting a
term of 45 years and proposing an investment amount of approximately $1,000,000 to erect an
airplane hangar. Pursuant to Kenai Municipal Code (KMC) 21.10.080(b) [Lease] Term Table, the
maximum term for the proposed investment value is 45 years. The 30-day notice of competitive
land lease application expired on May 10, 2024. The City did not receive any competing lease
applications for the subject property. Pursuant to KMC 21.10.070(a) the applicant has provided
evidence of the financial resources to complete the proposed project.
In the FY2024 Fee Schedule, the annual lease rate for the subject property is $15,536.08. Please
note that the fee schedule referenced the subdivision plat as no. 6, when it should be no. 5;
however, the parcel identification number and general legal description are correct. In the Land
Management Plan, the subject property has a retention status of lease only. It is one of the few
remaining vacant lots within the Airport Reserve with frontage on North Willow Street and taxiway
access.
The applicant intends to use the premises for an airplane hangar to support a local airline, such
as Kenai Aviation. D & M Land does not currently hold any leases with the City. However, Mike
Schilling, a member of the D & M Land is also the single -member of Schilling Rentals, LLC
("Schilling"), which Schilling is in compliance with the terms and conditions of their leases.
The subject property is approximately 1.07 acres and located within the Airport Light Industrial
(ALI) Zone. The intent of the ALI Zone is to protect the viability of the Kenai Municipal Airport as
a significant resource to the community by encouraging compatible land uses and reducing
hazards that may endanger the lives and property of the public and aviation users. The proposed
use of an aircraft hangar is a permitted use in the ALI Zone and is an airport compatible use. A
new hangar with the intent to support a local airline will further promote the viability of the Kenai
Municipal Airport. Furthermore, the proposed use is consistent with the 2016 Imagine Kenai 2030
Comprehensive Plan. It supports Goal 5- Transportation, which has a vision for Kenai Municipal
Airport as a gateway to the Kenai Peninsula.
The Airport Land Use Plan was developed to identify the highest and best uses of Kenai Municipal
Airport land. The Airport Land Use Plan discusses leasing land and enhancing opportunities for
local economic development. The proposed use by D & M Land complies with the Airport Land
Use Plan.
The Planning and Zoning Commission recommended approval of the lease application at their
May 8, 2024 regular meeting. The Airport Commission recommended approval of the lease at
their May 9, 2024 regular meeting.
Resolution No. 2024-23 would authorize the City Manager to execute a lease of city -owned
property within the Airport Reserve between the City of Kenai and D & M Land Company; LLC for
the property described as Lot 9A, Block 5, General Aviation Apron Subdivision No. 5.
Thank you for your consideration.
Attachments
Aerial Map
Application
Page 2 of 2
l
The City of Kenai I www kenaixity
Lease of Airport Reserve Land
.. 155 N. Willow Street
KPB Parcel ID: 04324026
KPNA1 Approximately 1.071 acres
Airport Light Industrial
155'N'i WILLOW
i�
.;C, rcW' i, I axdr Earla
N Map Tor Kererence unit'
NOT A LEGAL DOCUMENT
0 50 100 200 Feet
Subject Parcel
Parcels
Date Printed:
City of Kenai Application for:
0 New Lease
< ` Land Lease Application ❑ Amendment
❑ Extension
❑ Assignment
❑ Renewal
KE N A I Application Date:
14/5/2024
Applicant
Name of Applicant: D & M Land Company, LLC
Mailing Address:
47 Spur View Dr
City:
Kenai State:
AK
Zip Code:
99611
Phone Number(s):
Home Phone: 907-283-7556
Work/ Message Phone:
E-mail: (Optional)
diunt@glmenergyllc.com
Name to Appear on Lease:
D & M Land Company, LLC
Mailing Address:
47 Spur View Dr
City:
Kenai State:
I AK IZipCode:199611
Phone Number(s):
Home Phone:
Work/ Message Phone:
E-mail: (Optional)
Type of Applicant: ❑ Individual (at least 18 years of age) ❑ Partnership Corporation I Government
El Limited Liability Company (LLC) ❑ Other
Property Information and Term ReqUested
Legal description of property (or, if subdivision is required, a brief description of property):
155 N Willow Street Kenai, AK 99611
T 6N R 11 W SEC 32 SEWARD MERIDIAN KN 2006062 GENERAL AVIATION APRON SUB NO 5
LOT 9A BLK 5
Does the property require subdivision? (if Yes, answer next questions)
❑ YES ENO
Subdivision costs are the responsibility of the applicant unless the City Council
determines a subdivision serves other City purposes:
1. Do you believe the proposed subdivision would serve other City purposes?
❑ YES ❑ NO
2. If determined it does not, applicant is responsible for all subdivision costs.
Initials
If an appraisal is required to determine the minimum price on the land, applicant is responsible
for the deposit to cover costs associated with appraisal. If a sale is approved, the cost of the
Initials ff
appraisal will be either refunded or credited to the applicant.
It is the responsibility of the applicant to cover recording costs associated with lease.
Initials
Do you have or have you ever had a Lease with the City? (if Yes, answer next question)
EYES ❑ NO
1. Legal or brief description of property leased:
Multiple parcels on the airport
Request a Lease with an Option to Purchase once development requirements are met?
❑ YES 9 NO
Requested term for Initial Lease or Renewal (based on Term Table, not to exceed 45 years): 45
Requested term for Lease Extension (based on Term Table, not to exceed a total of 45 Years):
Requested Starting Date:5/1/2024
Proposed Use and Improvements
Proposed Use (check one): xl Aeronautical -1 1 Non -Aeronautical
Do you plan to construct new or additional improvements? (if Yes, answer next five questions) L YES LJ NO
1. Will the improvement change or alter the use under an existing lease? C YES [ENO
2. What is the proposed use of the improvement? Airplane Hangar
3. What is the estimated value of the improvement? 1,000,000
4. What is the nature and type of improvement?
Erect an airplane hangar
5. What are the dates construction is estimated to commence and be completed?
(generally, construction must be completed within two years)
Estimated Start Dater 5/20/2024 Estimated Completion Date: 1011/2024
Describe the proposed business or activity intended:
Aircraft support
How does the proposed lease support a thriving business, residential, recreational, or cultural community?
Support of local airline
Lease Assignment Only: What is the name of the individual or legal entity the lease is to be assigned?
Lease Renewal Only
Renewal of an Existing Lease (at least one year of term remaining): Requires new development.
Lease Term based on: Estimated cost of new improvements and I Purchase Price (optional)
-1 Renewal of an Expiring Lease (less than one year of term remaining): Does not require new development.
Lease Term based on: F- Purchase Price I 1 Professional Estimate of Remaining Useful Life
-1 Fair Market Value appraisal and/or 7 Estimated cost of new improvements (optional)
Requested Term for Renewal Based on Term Table, not to exceed 45 Years:
Submitting an application for a lease does not give the applicant a right to lease or use the land requested in the application. The application
shall expire twelve (12) months after the date the application has been made if the City and the applicant have not, by that time, entered into a
lease, unless the City Council for good cause grants an extension for a period not to exceed sic (6) months. The City has no obligation to
amend, renew or extend a lease and may decline to do so upon making specific findings as to why a lease renewal, extension, or amendment is
not in the best interest of the City
Signature: Date: 4/5/2024
Print Name:
14; ke
Title:
Member
For City Use ❑sly:
LO General Fund
10 Airport Fund
Account Number:
❑ Airport Reserve Land
❑ Outside Airport Reserve
Date Application Fee Received:
Date Application Determined Complete:
30-Day Notice Publication Date:
City Council Action/Resolution:
PAIDAM 52.014