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Home My WebLink AboutResolution No. 2025-15KENAI CITY OF KENAI RESOLUTION NO.2026-16 Sponsored by: Administration A RESOLUTION AUTHORIZING THE CITY MANAGER TO EXECUTE A LEASE OF AIRPORT RESERVE LANDS BETWEEN THE CITY OF KENAI AND ENA, LIMITED LIABILITY CORPORATION FOR LOTS 5A AND 5B, FBO SUBDIVISION NO. 10, TO BE DESCRIBED AS LOT 5C, FBO SUBDIVISION 2024 ADDITION UPON APPROVAL OF FINAL PLAT. WHEREAS, on September 13, 2024, ENA, LLC ("Everts") submitted an application to lease City -owned properties within the Airport Reserve, described as Lots 5A and 5B, FBO Subdivision No. 10; and, WHEREAS, Everts intends to use the premises for fixed base operations including an airplane hangar and fuel storage facility, with an estimated investment value of $3,000,000 that allows for the maximum lease term of 45 years in accordance with KMC 21.10.080 Length of Lease Term; and, WHEREAS, the development would be mutually beneficial and would conform with KMC 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, a Preliminary Plat was approved by the City of Kenai Planning and Zoning Commission on December 11, 2024 and passed by the Kenai Peninsula Borough Plat Committee on January 13, 2025 to merge the subject properties into a single parcel to be described as Lot 5C, FBO Subdivision 2024 Addition upon approval of final plat; 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 21.10.040(b)(5) the applicant has provided evidence of financial resources to complete the proposed project; and, WHEREAS, at their regular meeting on February 12, 2025, the Planning and Zoning Commission recommended approval to the City Council; and, WHEREAS, at their regular meeting on February 13, 2025, 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 Everts 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 on the City's Standard Lease Form between the City of Kenai and ENA, LLC for the properties described as 5A and 513, FBO Subdivision No. 10, as follows: New Text Underlined; [DELETED TEXT BRACKETED] Resolution No. 2025-15 Page 2of2 1. The construction of an aircraft hangar and fuel storage facility with an estimated value of improvements of $3,000,000 will be completed within three (3) years of lease execution, unless the City has approved a time extension. 2. Written documentation must be submitted to the City within 60 days of the completion of the permanent improvements. 3. The lease term will be 45 years. 4. The lessee must prevent unauthorized access to the airfield during and after site improvements. 5. Structures are prohibited to encroach into the 100-foot building restriction line on the leased parcel. 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 immediately upon passage. PASSED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, THIS 19TH DAY OF FEBRUARY, 2025. Brian Gabriel Sr., Mayor ATTEST: We e e .San , City Clerk New Text Underlined; [DELETED TEXT BRACKETED] r Al City of Kenai 210 Fidalgo Ave, Kenai, AK 99611-7794 907.283.75351 www kenaixity MEMORANDUM TO: Mayor Brian Gabriel and Kenai City Council THROUGH: Terry Eubank, City Manager THROUGH: Kevin Buettner, Planning Director FROM: Brandon McElrea, Planning Technician DATE: January 29, 2025 SUBJECT: Resolution No. 2026-15 - Authorizing the City Manager to Execute a Lease of Airport Reserve Lands Between the City of Kenai and ENA, Limited Liability Corporation for Lots 5A and 5B, FBO Subdivision No. 10, to be Described as Lot 5C, FBO Subdivision 2024 Addition Upon Approval of Final Plat. ENA, LLC (Everts) submitted a land lease application of Airport Reserve Lands for the properties described as Lots 5A & 5B, FBO Subdivision No. 10, located at 535 North Willow Street (KPB Parcel numbers 04318047 and 04318048). The applicant is requesting a term of 45 years and proposing an improvement amount of approximately $3,000,000 to erect a hangar and establish Fixed Base Operator (FBO) as well as install a fuel tank farm. Pursuant to Kenai Municipal Code (KMC) 21.10.080(b) Length of Lease Term, the maximum term for the proposed investment value is 45 years. The 30-day notice of competitive land lease application expired November 24, 2024. The City received no competing lease applications for the subject properties. The applicant intends to use the premises to establish a Southcentral headquarters, including an aircraft hangar for maintenance, storage, crew quarters and office space, as well as a fuel tank farm to support airport business and FBO operations. Everts does not currently hold any leases with the City of Kenai. A Preliminary Plat was approved by the City of Kenai Planning and Zoning Commission on December 11, 2024 and passed by the Kenai Peninsula Borough Plat Committee on January 13, 2025 to merge the subject properties into a single approximately 4.5-acre parcel located within the Airport Light Industrial (ALI) Zone. The subject properties total approximately 4.49 acres and are 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 headquarters and fuel storage are permitted uses in the ALI Zone as an Airport Compatible Use. Fuel storage and distribution will continue to 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 Planning and Zoning Commission recommended APPROVAL of the lease application during their February 12, 2025 meeting. The Airport Commission recommended APPROVAL of the lease during their February 13, 2025 meeting. Resolution No. 2025-15 would grant approval of the Kenai City Council for the City Manager to enter into a Lease of Airport Reserve Lands between the City of Kenai and ENA, LLC for Lots 5A & 513, FBO Subdivision No. 10. Thank you for your consideration. Attachments Aerial Map Application Preliminary Plat KPB Notice of Decision Page 2 of 2 J The City of Kenai I www.kenaixity F �� Cityof Kenai Application for: 0 New Lease `• Land Lease Application ❑ Amendment ❑ Extension ❑ Assignment ❑ Renewal NAApplication Date: � I 9/13/2024 Applicant Name of Applicant: ENE, LLC Mailing Address: PO Box 61680 City: Fairbanks State: AK Zip Code: 99706 Phone Number(s): Home Phone: (907) 451-2305 Work/ Message Phone: (907) 460-4119 E-mail: (Optional) fuel@evertsair.com Name to Appear on Lease: ENA, LLC Mailing Address: PO Box 61680 City: Fairbanks State: AK Zip Code: 99706 Phone Number(s): Home Phone: (907) 451-2305 Work/ Message Phone: (907) 460-4119 E-mail: (Optional) Type of Applicant: ❑ Individual (at least 18 years of age) ❑ Partnership I Corporation I Government I 0 Limited Liability Company (LLC) ❑ Other Property-. -. Legal description of property (or, if subdivision is required, a brief description of property): Lots 5A, 5B FBO Subd No. 10 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 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) ❑ YES ENO 1. Legal or brief description of property leased: Request a Lease with an Option to Purchase once development requirements are met? 0 YES ❑ NO Requested term for Initial Lease or Renewal (based on Term Table, not to exceed 45 years): 45 Years Requested term for Lease Extension (based on Term Table, not to exceed a total of 45 Years): 45 Years Requested Starting Date: October 1, 2024 Proposed Use and Improvements 'roposed Use (check one): xl Aeronautical I Non -Aeronautical )o you plan to construct new or additional improvements? (if Yes, answer next five questions) L YES Ll NO 1. Will the improvement change or alter the use under an existing lease? C YES 0 NO 2. What is the proposed use of the improvement? Hanger, FBO, Fuel Tank Farm 3. What is the estimated value of the improvement? $3,000,000 4. What is the nature and type of improvement? New Construction 5. What are the dates construction is estimated to commence and be completed? (generally, construction must be completed within two years) Estimated Start Date: 5/1/2025 Estimated Completion Date: 5/1/2027 Describe the proposed business or activity intended: FBO How does the proposed lease support a thriving business, residential, recreational, or cultural community? this will create new, long-term, permanent local jobs; new families relocating to the area; support airport business with FBO operations `.ease Assignment Only: What is the name of the individual or legal entity the lease is to be assigned? :NA, LLC 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 Professional Estimate of Remaining Useful Life —1 Fair Market Value appraisal and/or —1 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 six (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 ature:Date: F 9/13/2024 t Name: Brian E Fay Title: General Manager .or City Use Only: Date Application Fee Received: J General Fund ❑ Airport Reserve Land Date Application Determined Complete: ❑ Airport Fund ❑ Outside Airport Reserve 30-Day Notice Publication Date: Account Number City Council Action/Resolution: jig e � N p a in lit 0 ty Y n KENAI PENINSULA Borough January 21, 2025 Re: Planning Department 144 North Binkley Street, Soldotna, AK 99669 1 (P) 907-714-2200 1 (F) 907-714-2378 1 www.kpb.us NOTICE OF DECISION KENAI PENINSULA BOROUGH PLAT COMMITTEE MEETING OF JANUARY 13, 2025 FBO Subdivision 2024 Addition; KPB File 2024-137 The Plat Committee, as authorized by the Planning Commission pursuant to KPB 2.40.080, reviewed and granted conditional approval of the subject preliminary plat during its regularly scheduled meeting of January 13, 2025. The conditional approval was granted by a unanimous vote based on substantial evidence before the Plat Committee, including staff recommendations within the Staff Report and other information from the public hearing, that the preliminary plat meets the requirements of the Kenai Peninsula Borough Code 20.25, 20.30, 20.40, and must meet 20.60. Pursuant to Borough Code Section 20.25.100, the Plat Committee's decision specifically adopts and incorporates by reference the Staff Report and Staff's recommendations as the findings and reasons for its actions. A party of record as defined by Borough Code Section 21.20.210(A)(5) may request that a decision of the Plat Committee be reviewed by the Planning Commission by filing a written request within 15 days of notification of the decision on this letter, in accordance with KPB 2.40.080. Said form can be found at the Planning Department web site at: http://www.borough.kenai.ak.usJplanning,- dept/planning-home. For additional information please contact the Planning Department, 907-714-2200 (1-800-478- 4441 toll free within the Kenai Peninsula Borough). Notice of Decision Sent Via Email To: • Jason Young, Edge Survey & Design; iason@edgesurvey.net • Terry Eubank, Petitioner; teubank@kenai.city