HomeMy WebLinkAboutOrdinance No. 3463-2025�j
KENAI
CITY OF KENAI
ORDINANCE NO. 3463-2026
Sponsored by: Administration
AN ORDINANCE CONDITIONALLY DONATING CERTAIN CITY OWNED PROPERTY DESCRIBED AS
THREE APPROXIMATELY 1 '/ ACRE PARCELS TO BE SUBDIVIDED FROM A PORTION OF THE
APPROXIMATELY 69'/ ACRE PARCEL DESCRIBED AS KENAI MEADOWS ADDITION NO 1, TRACT
Al ACCORDING TO PLAT 2023-48 (KPB PARCEL NO. 03901067) TO KENAI PENINSULA HOUSING
INITIATIVE FOR THE DEVELOPMENT OF RESTRICTED INCOME AND SENIOR HOUSING.
WHEREAS, Kenai Municipal Code 22.05.110, Determination as to Need for Public Purpose in
conjunction with KMC 22.05.095-Methods of Sale or Disposal, allows the Council, by Ordinance, to
donate real property that is no longer needed by the City for a public purpose, to a non-profit corporation
for a consideration agreed upon between the City and grantee without a public sale if the donation is in
the best interest of the City; and,
WHEREAS, Kenai Peninsula Housing Initiatives (KPHI) is a non-profit corporation with a mission to
provide low income, very low income, senior and special needs residents affordable housing options;
and,
WHEREAS, there is a need for low income and senior housing in the City of Kenai; and,
WHEREAS, the City desires to support further development of low income and senior housing in the
community, and;
WHEREAS, donating the subject parcels to KPHI at less than fair market value is in the best interest of
the City; and,
WHEREAS, conditions must be placed on the transfer to ensure low income and senior housing is
developed or the property is returned to the City, including in the event of a land sale, to a for profit entity,
the market value of the property shall be reimbursed to the City, if the sale occurs within twenty years
after transfer to KPHI.
NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, AS
FOLLOWS:
Section 1. That the City Council determines that three approximate 1 1/2-acre parcels to be
subdivided from a portion of the 69 Y2 acre portion of the parcel described as Kenai Meadows Addition
No 1, Tract Al, according to Plat 2023-48 (KPB PARCEL No. 03901065), are not needed for a public
purpose.
Section 2. That the Kenai City Council hereby authorizes the City Manager to execute, upon
completion of a subdivision and necessary proof of financing for the development, the transfer of title for
the properties: three approximate 1 1/2-acre parcels to be subdivided from a portion of the 69 Y2 acre
portion of the parcel described as Kenai Meadows Addition No 1, Tract Al, according to Plat 2023-48
(KPB PARCEL No. 03901065), to Kenai Peninsula Housing Initiatives, Inc. (KPHI), on a form approved
by the City Attorney, for less than fair market value ($1.00), for the sole purpose of developing income
restricted and senior housing, and with conditions upon sale if sold to a for profit entity within 20 years.
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Ordinance No. 3463-2025
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Section 3. That KPHI must complete at its own expense all actions necessary for the subdivision and
development of the properties; and provide proof of financing sufficient for the projects as prior conditions
of the transfer of title; and to pay all closing costs and fees for said properties and said consideration to
the City for the properties.
Section 4. That the Kenai City Council further finds the disposal of the parcels to be in the best interests
of the citizens of the City of Kenai and that the public interest shall be served by disposing of the properties
interest for less than the fair market value, in accordance with the recitals above which are incorporated
herein.
Section S. That the Kenai City Council further finds that if the action items described herein are not
completed by April 16, 2030, the authorization to transfer the lands lapses unless further authorized by
the City Council.
Section 6. 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
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 7. Effective Date: That pursuant to KMC 1.15.070(f), this ordinance shall take effect 30 days
after enactment.
ENACTED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, THIS 16t' DAY OF April, 2025.
ATTEST:
�C, City Clerk
Brian Gabriel Sr., Mayor
Introduced: April 2, 2025
Enacted: April 16, 2025
Effective: May 16, 2025
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City of Kenai 1210 Fidalgo Ave, Kenai, AK 99611-7794 1907.283.7535 1 wwwkenai.city
�7 ORANDUM
TO: Mayor Brian Gabriel and Kenai City Council
THROUGH: Terry Eubank, City Manager
FROM: Kevin Buettner, Planning Director
DATE: April 1, 2025
SUBJECT: Ordinance No. 3463-2025 - Conditionally Donating a Portion of Tract All,
Kenai Meadows Addition to Kenai Peninsula Housing Initiative for the
Development of Restricted Income and Senior Housing.
On July 7, 2021, City Council approved Ordinance No. 3217-2021 authorizing the conditional
donation of land along Redoubt Avenue to Kenai Peninsula Housing Initiative (KPHI) for the
development of housing for low income and senior populations. Per the aforementioned
ordinance, development is to be completed by July 16, 2026. Currently, development has been
completed on two of the four lots, and land clearing is commencing on the remaining two lots.
Construction on the third lot will start in Spring 2025 and the fourth lot will go to construction
following the execution of a grant agreement, which is currently pending. All planned construction
is forecast to be completed by the five-year deadline established by Council.
In late 2024 and early 2025, KPHI approached the City to discuss potential future development
within the City of Kenai. The Administration acknowledges the need for safe, quality housing for
low income and seniors in the community. The reliable performance of KPHI in obtaining grant
funds and building the proposed housing according to their established timelines has also been
noted. As discussions matured, it was suggested that KPHI update City Council about their
progress.
KPHI is formally requesting a conditional land donation to complete future phases of development.
The land is located on approximately five acres immediately to the north of their current
development along Redoubt Avenue. Land would not be conveyed from the City of Kenai to KPHI
until all funding is secured for their developments on each affected parcel. This land donation, if
approved, would be subject to the five-year development window as was outlined in the ordinance
for the 2021 land donation. Further conditions are recommended to be placed on the transfer to
ensure low income and senior housing is developed or the property is returned to the City,
including in the event of a land sale, to a for profit entity, the market value of the property shall be
reimbursed to the City, if the sale occurs within twenty years after transfer to KPHI.
To demonstrate their continued commitment to developing housing in the City, KPHI is pursuing
new funding, which is directly related to the petition for a conditional land donation. The current
Federal Home Loan Banks' Affordable Housing Program funding opportunity is open for
applications. This funding source is one of the primary funding sources used by the Kenai
Peninsula Housing Initiative (KPHI) to construct housing for low income and/or seniors. The
current solicitation opened April 1, 2025 and closes May 1, 2025. All documentation, including a
conditional allowance for use of the land is due to the funder by this date. Further information
regarding the ordinance content is contained within a separate memorandum.
Due to the short application window, the applicant (KPHI) has requested an ordinance, regarding
a conditional approval of a land donation of approximately five acres of land immediately to the
north of their current development, be introduced by the City Council at tonight's meeting with
public hearing and action at the April 16, 2025 meeting. The late notice of the grant cycle
precluded the Administration from including this ordinance in the packet as normal necessitating
laydown this evening.
If introduced as a laydown, and approved for public hearing on April 16, 2025, the ordinance
would meet all applicable Alaska state statue and Kenai Municipal Code requirements regarding
noticing of public hearings.
Additional development of housing along the Redoubt Avenue corridor is in line with the current
Comprehensive Plan and associated Land Use Plan. Denser developments with multiple units
are preferred directly along Redoubt Avenue, as the road functions as a collector and hosts more
traffic than other local roads. Planned access to the new lots will reduce the number of needed
driveways impacting traffic flow on Redoubt Avenue. Furthermore, the current and proposed
developments are architecturally styled in a way that mimics existing single-family dwellings
nearby and would be preferred in future suburban residential subdivisions in this area.
Quality affordable housing is needed to allow people of all ages and abilities to live, work, and
age in place in the City of Kenai. Housing has been noted as a concern throughout the nation,
and Kenai is no exception. Allowing future development and expanding the number of units
available will enable the City to grow in a sustainable manner, supporting existing and future
businesses as they seek to locate their operations within the City.
Based on the above information, the Administration believes it is advantageous to the City to
proceed with the land donation, as it will serve as a catalyst for future market -rate development
north of Redoubt Avenue. With 64.5 remaining acres of City -owned land immediately to the north
of this development, this land donation will not preclude future subdivisions from being
constructed. Development of low-income and senior housing will benefit the City and appropriate
rights of way and utility easements will be conveyed to the City as a part of the platting process.
As such, there would not be a public purpose remaining for the land proposed for donation.
Thank you for your consideration.
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