HomeMy WebLinkAboutResolution No. 2024-31KENAI
CITY OF KENAI
RESOLUTION NO. 2024-31
Sponsored by: Administration
A RESOLUTION APPROVING A TWELVE-MONTH EXTENSION OF TIME FOR GOOD CAUSE FOR
THE COMPLETION OF PERMANENT IMPROVEMENTS FOR A LEASE BETWEEN THE CITY OF
KENAI AND JOEL CALDWELL FOR AIRPORT RESERVE LANDS DESCRIBED AS LOT 3, BLOCK 4,
GENERAL AVIATION APRON SUBDIVISION NO. 1, PLAT NO. 73-68.
WHEREAS, Resolution No. 2022-27 approved a lease between the City of Kenai and Joel Caldwell, for
Lot 3, Block 4, General Aviation Apron Subdivision No. 1; and,
WHEREAS, the lease requires the lessee to construct additional storage space, restroom facilities, and
paving by June 30,2024 with an aggregate cost of at least $100,000; and,
WHEREAS, the lessee has requested a one-year extension to complete the improvements due to
challenges related to sustaining and growing of Kenai Aviation flight services in and out of Kenai
Municipal Airport; 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, the Airport Commission at its regularly scheduled meeting of June 13, 2024 recommended
City Council approval; and,
WHEREAS, the coordination between Peter Heinrichsohn, CEO of Kenai Aviation, and paving
contractors constitute a 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 Joel Caldwell for Lot 3, Block 4,
General Aviation Apron Subdivision No. 1, Plat 73-68 to extend the date that improvements are required
to be completed to June 30, 2025 for good cause as described above. The Council further authorizes the
City Manager to execute a lease amendment Joel Caldwell 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 19T" DAY OF JUNE, 2024.
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Brian Gabriel Sr., Mayor
ATTEST:
ichell . S r, MC, City Clerk
New Text Underlined; [DELETED TEXT BRACKETED]
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KENAI
City of Kenai 1 210 Fidalgo Ave, Kenai, AK 99611-7794 1 907.283.7535 1 www.kenai.city
kL-,ORANDUM
TO: Mayor Gabriel and Council Members
THROUGH: Terry Eubank, City Manager
THROUGH: Linda Mitchell, Planning Director
FROM: Brandon McElrea, Planning Technician
DATE: June 11, 2024
SUBJECT: Resolution No. 2024-31 — Joel Caldwell Lease Extension
With the departure of Ravn Air, Kenai Aviation had to scramble to fill the demand of flight services
and redirect project funding in order to sustain and grow Kenai Aviation flight services. As a result,
the construction of the required improvements has been delayed. Peter Heinrichsohn, CEO of
Kenai Aviation, has requested a one-year extension to complete the required improvements on
Lot 3, Block 4, General Aviation Apron Subdivision No. 1 (see request letters). Administration is
supportive of a one-year extension as allowed in code pursuant to KMC 21.10.080(g)(5).
Thank you for your consideration.
Attachments
Extension Request Letter
Follow -Up Letter
From:
Thy Eubank
To:
Linda Mitchell
Cc:
Brandon McElrea
Subject:
FW: Applying for a one (1) year extension for Kenai Aviation/ Lot 3, Block 4, GAA No. 1 to complete
improvements
Date:
Wednesday, May 15, 2024 2:35:32 PM
From: Peter Heinrichsohn <peter@ken aiaviation.com>
Sent: Wednesday, May 15, 2024 12:08 PM
To: Terry Eubank <TEubank@kenai.city>
Cc: Joel Caldwell <joel@kenaiaviation.com>; Craig Walls <craig@kenaiaviation.com>
Subject: Applying for a one (1) year extension for Kenai Aviation/ Lot 3, Block 4, GAA No. 1 to
complete improvements
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attachments or clicking links, especially from unknown senders.
14 May 2024
Mr. Terry Eubank
City Manager
City of Kenai
210 Fidalgo Aveneu
Kenai, AK 99611-7794
Dear Mr. Eubank,
I recently met with Brandon McElrea, who provided me with an update on the status of the above -
referenced lease and informed me of Joel Caldwell's requirements for compliance with Article XIV.
I am writing to formally request a one-time extension of 12 months to complete the necessary
improvements. Mr. McElrea is currently assisting me with answering some questions I had during
our last meeting, which will help me develop a comprehensive plan moving forward.
The reasons for my request to extend this agreement/lease are as follows:
1. We have been diligently working to sustain and grow Kenai Aviation, which has required all
available funds. As a result, we have not had the financial capacity to fund the required
improvements.
Moving forward, our plan includes the following steps:
• I will personally manage the project to ensure all deliverables are completed by the end of
May 2025 or earlier if possible.
• I have already contacted paving contractors to discuss timelines and costs.
Thank you very much for your time and consideration of this matter.
Respectfully,
Peter Heinrichsohn 1907 230 3060
CEO
Kenai Aviation
01
Sent via Superhuman
From:
To:
Subject:
Date:
Peter Heinrichsohn
Brandon McElrea
Re: Lot 3, Block 4, GAA No. 1 extension/definition of storage space.
Monday, June 10, 2024 3:33:42 PM
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opening attachments or clicking links, especially from unknown senders.
Hello Brandon,
I am well. After I left our last meeting, I came down with the worst upper respiratory infection
I have ever had. It took me almost three weeks to be able to breathe normally again. I
hope you had an easier time of it and that you are well. The same goes for the lady I met, your
supervisor.
As to your email above, thank you for allowing me to try to elaborate. Since I started in my
current position on January 1 st I can only comment on what I have found since then. The last
few years have been a struggle for many Alaskan airline operators, and Kenai Aviation is no
different. Then Ravn left Kenai, and we had to scramble to fill the demand. All I can say is
that while growth is good, it can also be challenging. We are all working hard to grow
sustainably.
Thank you for clarifying the hangar storage issue. We should be able to work with that.
I am sorry, but I cannot find contact details for the planning manager. Would you please share
it with me?
Many thanks,
Best regards,
Peter Heinrichsohn 1907 230 3060
CEO
Kenai Aviation