HomeMy WebLinkAbout2015-09-14 Council Minutes - Work Session, Land Sales - UNAPPROVED
KENAI CITY COUNCIL WORK SESSION
SEPTEMBER 14, 2015
KENAI CITY COUNCIL CHAMBERS
MAYOR PAT PORTER, PRESIDING
NOTES
UNSOLICITED LAND SALE OFFERS
Council present: P. Porter (telephonic), T. Navarre (telephonic), R. Molloy, H. Knackstedt,
B. Gabriel, and R. Marquis
Others present: City Manager R. Koch, City Attorney S. Bloom and City Clerk S. Modigh
Vice Mayor Gabriel began the work session at approximately 6:00 p.m. and provided an
overview of the agenda as reviewing the
Public testimony proceeded as follows:
Fred Braun, Jack White Realty, advised that from a realtor’s perspective he doesn’t believe
individuals would be interested in leasing airport property; noted he made an offer on XX on
behalf of a third party ; economic development of the, spoke in favor of the sale of parcels along
the Spur Highway as its in the best interest of the City. Stated that once a month the Kenai
chamber and visitors center has its board meeting and that at a previous meeting, mayor porter
inquired what the city could do to promote e
Duane Bannock, on behalf of XX shillings, noted that the request to purchase leased property is
being made because it makes since financially. Administration denied to request due to
mathematical estimates from administration; looking to purchase the Decor building. Bannock
reviewed a map he created outlining properties privately owned versus those owned by the City.
Would like to have an opportunity to development within the Kenai.
Quoted language from Kenai Municipal Code 21.15180 related to the process of a lessee
requesting to purchase land. Requested Council bring forward legislation to have approval of
the
Discussion continued related to the properties being used for a public purpose.
Stated that he expected the airport commission to vote no on the
Sid Morris get exact parcel XX requested to sell the land leased property that he has been
leasing for thirty years. He was under the impression he would be able to purchase once he was
ready. Noted that he has been requested to purchase the property more than once in the past.
Noted that his property is not on airport reserve lot. Doesn’t think anyone else will purchase that
building knowing its on leased property of which the city will not sell. Would like to sell the
building back to the city.
Dan Moffis, representing ??, advised that he cannot sell their business because they cannot
purchase the land, they’ve tried.
Kenai City Council Work Session
September 14, 2015
Page 2
Robert J. Breeden, Breeden Alaska Properties, LLC, spoke as an investor and developer on the
Peninsula in favor of the City selling currently leased properties for further development as a
benefit to the City. Increase on property tax
Anna lee Lott, owner of main street tap and grill, sublessee of the building was lead to believe
that they would be able to sell. Spoke in opposition to individuals working their entire lives to
build a business to not be able to sell later, no one wants to end up like the bowling alley or ski
mo’s.
City Manager Koch noted that these are business decisions on behalf of the City and outlined
three methods in which the sales disc
Rick reviewed the mathematical calculation used to determine whether Administration approves
or denies a request for purchase from a leassee.
Rick noted that …request his notes.
Rick recommended that council adopt a policy on how these requests be handled in the future
followed by an executive for council to review.
Koch noted that there are aprovimately 15 parcels that are leased that are not on the airport
reserve, howerver most leases are on the airport reserve.
Gabriel requested that addintional comments from residents to be emailed to council members.
Marquis suggested that the city not give the impression that the city is closed for business.
Koch noted that this isn’t normally a formal request, but could give a calculation estimate for all
inquiries.
Koch advised that new leases have incorporated an exit strategety.
Knacksted advised that the Federal government put aside a certain amount of land to support
the airport and the remining land was transaferred to the city. Long term stratedy fir the airport is
for this land to support the airport and revenue will not provide enough to do such,
Molloy thanked all that testified and requested this be placed on the agenda as a discussion
item at one of the October meetings. Noted that administratin made good points related to fair
market value appraisals versus land price and revenue calculations as it would be leassesd for
the same amount of years. Was interested in some of the comments from public testimony
related to revenue.
Marquis thanked all that participated in the meeting. Appreciated that the city manager agreed
with some of the issues in the current process. Concerned with the preceptino that the city will
not sell land.
Navarre stated that he’s looking forward to council further discussing this matter now that many
of the leases are beginning to expire. Spoke to different loan scinerios and how these are based
on a case-by-case basis. The airport commission requested a joint work session with council to
review the appraisal cost estimates.
Kenai City Council Work Session
September 14, 2015
Page 3
Mayor Porter thanked the residents for bringing this matter forward and doesn’t think this is all
about money and wants to also consider the residents. Mayor porter noted that she would bring
forward legislation for council to take action on. Porter believes all agree about reserve lands.
Molloy noted that a lease with 30 plus years is almost like a sale and thinks of that favorably.
Gabriel thanked all for participating at the meeting and stated that he appreciated getting insight
about this process and noted he didn’t mean to offend anyone by not allowing rebuttle with the
city manager. Gabriel recommended a policy be put in place so that leassees are aware of the
entire process from start to finish so they are not mislead about their options.
The work session was adjourned at 5:49 p.m.
Notes prepared by:
_______________________________
Sandra Modigh, CMC
City Clerk