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HomeMy WebLinkAbout2025-04-23 Planning & Zoning PacketPlanning & Zoning Commission - Regular Meeting Page 1 of 2 April 23, 2025 Kenai Planning & Zoning Commission - Regular Meeting April 23, 2025 - 7:00 PM Council Chambers, City Hall, 210 Fidalgo Avenue, Kenai, AK 99611 *Telephonic/Virtual Information on Page 2* http://www.kenai.city Agenda A. CALL TO ORDER 1. Pledge of Allegiance 2. Roll Call 3. Election of Chair 4. Approval of the Agenda and Consent Agenda (Public comments on Consent Agenda Items limited to three (3) minutes per speaker; thirty (30) minutes aggregated) *All items listed with an asterisk (*) are considered to be routine and non-controversial by the Commission and will be approved by one motion. There will be no separate discussion of these items unless a Commission Member so requests, in which case the item will be removed from the Consent Agenda and considered in its normal sequence on the agenda as part of the General Orders. B. APPROVAL OF MINUTES 1. *Regular Meeting of March 26, 2025 C. SCHEDULED PUBLIC COMMENT (Public comment limited to ten (10) minutes per speaker) D. UNSCHEDULED PUBLIC COMMENT (Public comment limited to three (3) minutes per speaker; thirty (30) minutes aggregated) E. CONSIDERATION OF PLATS F. PUBLIC HEARINGS 1. PZ2025-14 - Recommending Approval to Rezone 28 Parcels Located Near the Intersection of the Kenai Spur Highway and Wildwood Drive from Suburban Residential (RS) to General Commercial (CG) Zoning District. G. UNFINISHED BUSINESS 1. Discussion – Aspen Creek, 701 N. Forest Drive CUP H. NEW BUSINESS 1. *Action/Approval – Requesting Excused Absences for the March 26, 2025 Regular Meeting – Fikes Page 1 Planning & Zoning Commission - Regular Meeting Page 2 of 2 April 23, 2025 I. REPORTS 1. Planning Director 2. Commission Chair 3. Kenai Peninsula Borough Planning 4. City Council Liaison J. ADDITIONAL PUBLIC COMMENT (Public comment limited to five (5) minutes per speaker) K. NEXT MEETING ATTENDANCE NOTIFICATION 1. Next Meeting: May 14, 2025 L. COMMISSION COMMENTS AND QUESTIONS M. PENDING ITEMS N. ADJOURNMENT O. INFORMATIONAL ITEMS 1. KPHI Land Donation Memo 2. Bridge Access Bike Path The agenda and supporting documents are posted on the City’s website at www.kenai.city. Copies of resolutions and ordinances are available at the City Clerk’s Office or outside the Council Chamber prior to the meeting. For additional information, please contact the City Clerk’s Office at 907-283-8231. Registration is required to join the meeting remotely through Zoom. Please use the link below to register: https://us02web.zoom.us/meeting/register/Z5qfgR9qSWaK9P_zOjyCHw **COMMISSIONERS, PLEASE CONTACT US IF YOU WILL NOT BE ABLE TO ATTEND THE MEETING** Page 2 KENAI PLANNING & ZONING COMMISSION REGULAR MEETING MARCH 26, 2025 – 7:00 P.M. KENAI CITY COUNCIL CHAMBERS 210 FIDALGO AVE., KENAI, AK 99611 CHAIR JOE HALSTEAD, PRESIDING Planning & Zoning Commission Meeting Page 1 of 4 March 26, 2025 MINUTES A. CALL TO ORDER A Regular Meeting of the Kenai Planning & Zoning Commission was held on March 26, 2025, in City Hall Council Chambers, Kenai, AK. Chair Halstead called the meeting to order at approximately 7:00 p.m. 1. Pledge of Allegiance Chair Halstead led those assembled in the Pledge of Allegiance. 2. Roll Call There were present: Joe Halstead, Chair Jeff Twait, Vice Chair Glenese Pettey Sonja Earsley Stacie Krause Gwen Woodard A quorum was present. Absent: Diane Fikes Also in attendance were: Kevin Buettner, Planning Director Deborah Sounart, City Council Liaison Meghan Thibodeau, Deputy City Clerk 3. Approval of Agenda and Consent Agenda Chair Halstead noted the following additions to the Packet: Add Item O.1 Staff Report • Updated Staff Report for PZ2025-05 MOTION: Vice Chair Twait MOVED to approve the agenda and consent agenda with the requested revisions. Commissioner Woodard SECONDED the motion. The items on the Consent Agenda were read into the record. Chair Halstead opened the floor for public comment on consent agenda items; there being no one wishing to be heard, the public comment period was closed. UNANIMOUS CONSENT was requested. There being no objection; SO ORDERED. *All items listed with an asterisk (*) are considered to be routine and non-controversial by the Commission and will be approved by one motion. There will be no separate discussion of these items unless a Commission Member so requests, in which case the item will be removed from the Consent Agenda and considered in its normal sequence on the agenda as part of the General Orders. Page 3 Planning & Zoning Commission Meeting Page 2 of 4 March 26, 2025 B. APPROVAL OF MINUTES 1. *Regular Meeting of March 12, 2025 Approved by the consent agenda. C. SCHEDULED PUBLIC COMMENTS - None. D. UNSCHEDULED PUBLIC COMMENTS - None. E. CONSIDERATION OF PLATS 1. Resolution No. PZ2025-05 – Recommending Conditional Approval of Preliminary Plat – Black Gold Estates 2025 Replat Merging Lots 11, 12, 16, 17 and 60 feet of Right-of-Way into a Single Lot in the Suburban Residential (RS) Zoning District. MOTION: Commissioner Woodard MOVED to approve Resolution PZ2025-05. Commissioner Pettey SECONDED the motion. Planning Director Buettner noted that a substitute staff report was provided in the laydown, provided an overview of the staff report, and explained the purpose of the plat was to merge four parcels and 60 feet of unnamed Right-of-Way (ROW) into one lot. It was noted that staff’s recommendation is approval subject to the conditions specified within the staff report as attached to Resolution No. PZ2025-05. Alex Douthit, applicant, provided background regarding the plat and vacation of the portion of ROW. He explained and that the lot would be more suitable for development once merged. There was Commission discussion regarding the background of the unnamed ROW . Clarification was provided that this ROW was not involved in a dispute between the Kenai Native Association and the City of Kenai, and that a Conditional Use Permit is not needed for the proposed uses. VOTE: YEA: Twait, Woodard, Earsley, Pettey, Krause, Halstead NAY: None ABSENT: Fikes MOTION PASSED WITHOUT OBJECTION. 2. PZ2025-15 - Recommending Approval of Preliminary Plat – Bailey Estates Karpik Rice Replat to Relocate the Lot Line Separating Lots 1 and 2, Bailey Estates Amended in the Suburban Residential 2 (RS-2) Zoning District. MOTION: Vice Chair Twait MOVED to approve Resolution PZ2025-15. Commissioner Woodard SECONDED the motion. Planning Director Buettner provided an overview of the staff report as included in the packet and attached to Resolution No. PZ2025-15, and explained the purpose of the plat was to adjust the lot lines between two lots, to allow a shop building to meet setback requirements. It was noted that staff’s recommendation is approval subject to the condition specified within the staff report as attached to Resolution No. PZ2025- 15. VOTE: YEA: Earsley, Pettey, Woodard, Twait, Halstead, Krause NAY: None ABSENT: Fikes MOTION PASSED WITHOUT OBJECTION. Page 4 Planning & Zoning Commission Meeting Page 3 of 4 March 26, 2025 3. PZ2025-16 – Recommending Approval of Preliminary Plat – Highlands Subdivision 2025 Replat Merging Lots 10,11 and 12 into a Single Lot in the Rural Residential (RR) Zoning District. MOTION: Commissioner Woodard MOVED to approve Resolution PZ2025-16. Commissioner Pettey SECONDED the motion. Planning Director Buettner provided an overview of the staff report as included in the packet and attached to Resolution No. PZ2025-16, and explained the purpose of the plat was to merge three lots into a single lot. It was noted that staff’s recommendation is approval subject to the condition specified within the staff report as attached to Resolution No. PZ2025-16. UNANIMOUS CONSENT was requested. There being no objection; SO ORDERED. F. PUBLIC HEARINGS – None. G. UNFINISHED BUSINESS 1. Discussion – Aspen Creek, 701 N. Forest Drive Conditional Use Permit It was reported that there were no new developments to the issue; that construction was anticipated to finish during the first week of May; and that City staff visited the site and noted less traffic than their visit a few months prior. Clarification was provided that the vehicles observed were mostly pickup trucks, but ownership of the vehicles cannot be confirmed. It was noted that this discussion will be continued on the next Commission meeting agenda. 2. Discussion - Schedule a Work Session Meeting for May 14, 2025 at 5:30 pm to discuss Conditional Use Permits. The work session was scheduled for May 14, 2025 at 5:30 p.m. H. NEW BUSINESS – None. I. REPORTS 1. Planning Director – Planning Director Buettner reported on the following: • The Kenai Peninsula Borough will be holding public workshops on the Comprehensive Safety Action Plan, and a Joint Work Session with the City Council and Planning & Zoning Commission on April 16, 2025 at 5:00 p.m. 2. Commission Chair – Chair Halstead noted that it would be his last meeting due to a schedule change with his new employment, and expressed appreciation for his time working on the Commission. 3. Kenai Peninsula Borough Planning – No report. 4. City Council Liaison – No report. J. ADDITIONAL PUBLIC COMMENT Arlys Miskinis, resident, expressed concerns with the Aspen Creek Conditional Use Permit; reported that there was an “emergency vehicles only” sign on Ponderosa Street; that she had continued to Page 5 Planning & Zoning Commission Meeting Page 4 of 4 March 26, 2025 observe increased traffic; and that Aspen Creek had not installed a street camera to monitor traffic. She discussed speed limits and signage in residential neighborhoods. K. NEXT MEETING ATTENDANCE NOTIFICATION 1. Next Meeting: April 9, 2025 It was noted that the April 9, 2025 meeting would be cancelled due to lack of agenda items. Commissioner Krause noted that she would attend remotely at the April 23, 2025 meeting. L. COMMISSION COMMENTS AND QUESTIONS Commissioner Woodard stated that it had been nice serving with Chair Halstead. Commissioner Pettey noted that she would be absent at the April 23, 2025 meeting. M. PENDING ITEMS – None. N. ADJOURNMENT O. INFORMATIONAL ITEMS – None. There being no further business before the Planning & Zoning Commission, the meeting was adjourned at 7:32 p.m. I certify the above represents accurate minutes of the Planning & Zoning Commission meeting of March 26, 2025. ___________________________________ Meghan Thibodeau Deputy City Clerk Page 6 CITY OF KENAI PLANNING AND ZONING COMMISSION RESOLUTION PZ2025-14 A RESOLUTION RECOMMENDING THE KENAI CITY COUNCIL APPROVE THE REZONE FROM SUBURBAN RESIDENTIAL (RS) TO GENERAL COMMERCIAL (CG) ZONING DISTRICT FOR THE FOLLOWING PROPERTIES AND AS DEPICTED ON THE ATTACHED BOUNDARY MAP. Parcel No. 03902122 Address Lot Size Legal Description 14383 Kenai Spur Hwy 1.96-acre BUSH LANES SUB NO 2 03903308 14320 Kenai Spur Hwy 0.52-acre BLACK GOLD EST SUB AMD 03903310 14288 Kenai Spur Hwy 0.52-acre BLACK GOLD EST SUB AMD 03903312 2807 Windflower Dr. 0.17-acre BLACK GOLD EST SUB AMD 03903313 2809 Windflower Dr. 0.17-acre BLACK GOLD EST SUB AMD 03903314 2811 Windflower Dr. 0.17-acre BLACK GOLD EST SUB AMD 03903315 2813 Windflower Dr. 0.17-acre BLACK GOLD EST SUB AMD 03903316 2815 Windflower Dr. 0.17-acre BLACK GOLD EST SUB AMD 03904001 14260 Kenai Spur Hwy 0.26-acre BLACK GOLD EST SUB AMD 03904002 14256 Kenai Spur Hwy 0.26-acre BLACK GOLD EST SUB AMD 03904010 1303 Orchid Way 0.34-acre BLACK GOLD EST SUB AMD 03904011 2705 Windflower Dr. 0.17-acre BLACK GOLD EST SUB AMD 03904012 2707 Windflower Dr. 0.17-acre BLACK GOLD EST SUB AMD 03904015 2713 Windflower Dr. 0.17-acre BLACK GOLD EST SUB AMD 03904016 2715 Windflower Dr. 0.21-acre BLACK GOLD EST SUB AMD 03904017 2717 Windflower Dr. 0.21-acre BLACK GOLD EST SUB AMD Page 7 Resolution No. PZ2025-14 Page 2 of 4 03908108 2726 Augustine Way 0.40-acre CARL F. AHLSTROM SUB 03908109 2724 Augustine Way 0.61-acre CARL F. AHLSTROM SUB 03908111 2722 Augustine Way 0.28-acre CARL F. AHLSTROM SUB 03908113 2720 Augustine Way 0.26-acre CARL F. AHLSTROM SUB 03908115 2718 Augustine Way 0.26-acre CARL F. AHLSTROM SUB 03904009 2710 Wildwood Dr. 0.20-acre BLACK GOLD EST SUB AMD 03904008 2712 Wildwood Dr. 0.20-acre BLACK GOLD EST SUB AMD 03904007 2714 Wildwood Dr. 0.20-acre BLACK GOLD EST SUB AMD 03908116 2717 Wildwood Dr. 0.26-acre CARL F. AHLSTROM SUB 03908114 2719 Wildwood Dr. 0.26-acre CARL F. AHLSTROM SUB 03908112 2721 Wildwood Dr. 0.41-acre CARL F. AHLSTROM SUB 03908110 2723 Wildwood Dr. 0.34-acre CARL F. AHLSTROM SUB WHEREAS, the City of Kenai received a rezone application and supporting documentation from the majority of property owners in accordance with Kenai Municipal Code (KMC) Section 14.20.270 Amendment procedures; and, WHEREAS, the area proposed to be rezoned contains a minimum of one (1) acre (excluding street or alley rights-of-way); and, WHEREAS, the proposed amendment to the zoning ordinance is not substantially the same as any other unapproved proposed amendment submitted within the previous nine (9) months; and, WHEREAS, a map has been included of the proposed rezone area; and, WHEREAS, the City of Kenai Planning and Zoning Department conducted a duly advertised public hearing, following requirements outlined in Kenai Municipal Code 14.20.280 for public hearings and notifications. WHEREAS, the Planning and Zoning Commission finds: 1. The current zoning district, Suburban Residential (RS) is intended to provide for medium density residential development. The existing RS zone is not the preferred land use for this area as there are existing commercial uses to the south and west of the proposed rezone area and the subject properties are located within 600 feet of the Kenai Spur Highway. 2. The rezone to General Commercial (CG) zone would increase the adjacent CG zoning district, which it is anticipated that it would be developed in conjunction with the surrounding Page 8 Resolution No. PZ2025-14 Page 3 of 4 commercial uses along the Kenai Spur Highway, therefore minimizing potential impacts of commercial development on existing residential uses. 3. Kenai Spur Highway has a Functional Classification as a Primary Arterial, as designated by the Alaska Department of Transportation, which infers a higher annual average daily traffic volume than surrounding neighborhood streets and therefore less desirable for residential uses due to vehicle noise. 4. The existing land use classification states that the area is to be Suburban Residential. Due to the Kenai Spur Highway being a Primary Arterial route, there is reason to anticipate that this area will become commercial uses, as traffic volume is higher along the highway and the associated road noise make residential uses less desirable. In the current RS zone, several commercial uses are permitted subject to a Conditional Use Permit (see attached Land Use Table). The proposed rezone to CG zone would be consistent as a natural extension of the General Commercial land use classification that is immediately south of the subject properties as identified in the Comprehensive Plan and reduce the administrative burden on business owners and city staff. 5. The proposed rezone to CG would align with the current commercial character of the neighborhood. NOW, THEREFORE, BE IT RECOMMENDED BY THE PLANNING AND ZONING COMMISSION OF THE CITY OF KENAI, ALASKA: Section 1. That Kenai City Council approve the rezone request for the twenty-eight (28) properties located near the intersection of the Kenai Spur Highway and Wildwood Drive from Suburban Residential (RS) to General Commercial (CG) zoning district. Section 2. That Kenai City Council amend the Land Use Map for the twenty-eight (28) properties located near the intersection of the Kenai Spur Highway and Wildwood Drive from Suburban Residential (RS) to General Commercial (CG). Section 3. That Kenai City Council amend the Official Zoning Map for the twenty-eight (28) properties located near the intersection of the Kenai Spur Highway and Wildwood Drive from Suburban Residential (RS) to General Commercial (CG). Section 4. That the Commission will forward its written recommendation to the Kenai City Council, along with all certified minutes and public records relating to the proposed amendment. PASSED BY THE PLANNING AND ZONING COMMISSION OF THE CITY OF KENAI, ALASKA, THIS 23rd DAY OF APRIL, 2025. Jeff Twait, CHAIRPERSON Page 9 Resolution No. PZ2025-14 Page 4 of 4 ATTEST: Meghan Thibodeau, Deputy City Clerk Page 10 STAFF REPORT PLANNING & ZONING DEPARTMENT TO: Planning and Zoning Commission FROM: Kevin Buettner, Planning Director DATE: April 15, 2025 SUBJECT: Resolution PZ2025-14 – Rezone Twenty-eight (28) Parcels from Suburban Residential (RS) to General Commercial (GC) Zoning District Request The applicants are requesting a rezone of Twenty-eight (28) parcels from Suburban Residential (RS) to General Commercial (CG) Zoning District. Staff Recommendation Adopt Resolution PZ2025-14 recommending approval of a rezone of twenty-eight (28) parcels from Suburban Residential (RS) to General Commercial (CG) Zoning District; recommending a Zoning Map Amendment; and a Land Use Map Amendment. Applicants: Alexander Douthit 1104 Leeward Drive Kenai, AK 99611 Parcel No. 03902122 Address Lot Size Legal Description 14383 Kenai Spur Hwy 1.96-acre BUSH LANES SUB NO 2 03903308 14320 Kenai Spur Hwy 0.52-acre BLACK GOLD EST SUB AMD 03903310 14288 Kenai Spur Hwy 0.52-acre BLACK GOLD EST SUB AMD 03903312 2807 Windflower Dr. 0.17-acre BLACK GOLD EST SUB AMD 03903313 2809 Windflower Dr. 0.17-acre BLACK GOLD EST SUB AMD 03903314 2811 Windflower Dr. 0.17-acre BLACK GOLD EST SUB AMD 03903315 2813 Windflower Dr. 0.17-acre BLACK GOLD EST SUB AMD 03903316 2815 Windflower Dr. 0.17-acre BLACK GOLD EST SUB AMD 03904001 14260 Kenai Spur Hwy 0.26-acre BLACK GOLD EST SUB AMD Page 11 Resolution No. PZ2025-14 Rezone from Suburban Residential (RS) to General Commercial (CG) Kenai Spur Hwy @ Wildwood Page 2 of 5 03904002 14256 Kenai Spur Hwy 0.26-acre BLACK GOLD EST SUB AMD 03904010 1303 Orchid Way 0.34-acre BLACK GOLD EST SUB AMD 03904011 2705 Windflower Dr. 0.17-acre BLACK GOLD EST SUB AMD 03904012 2707 Windflower Dr. 0.17-acre BLACK GOLD EST SUB AMD 03904015 2713 Windflower Dr. 0.17-acre BLACK GOLD EST SUB AMD 03904016 2715 Windflower Dr. 0.21-acre BLACK GOLD EST SUB AMD 03904017 2717 Windflower Dr. 0.21-acre BLACK GOLD EST SUB AMD 03908108 2726 Augustine Way 0.40-acre CARL F. AHLSTROM SUB 03908109 2724 Augustine Way 0.61-acre CARL F. AHLSTROM SUB 03908111 2722 Augustine Way 0.28-acre CARL F. AHLSTROM SUB 03908113 2720 Augustine Way 0.26-acre CARL F. AHLSTROM SUB 03908115 2718 Augustine Way 0.26-acre CARL F. AHLSTROM SUB 03904009 2710 Wildwood Dr. 0.20-acre BLACK GOLD EST SUB AMD 03904008 2712 Wildwood Dr. 0.20-acre BLACK GOLD EST SUB AMD 03904007 2714 Wildwood Dr. 0.20-acre BLACK GOLD EST SUB AMD 03908116 2717 Wildwood Dr. 0.26-acre CARL F. AHLSTROM SUB 03908114 2719 Wildwood Dr. 0.26-acre CARL F. AHLSTROM SUB 03908112 2721 Wildwood Dr. 0.41-acre CARL F. AHLSTROM SUB 03908110 2723 Wildwood Dr. 0.34-acre CARL F. AHLSTROM SUB Current Zoning: Suburban Residential (RS) Proposed Zoning: General Commercial (CG) Current Land Use Unimproved Residential Lots Land Use Plan Suburban Residential Page 12 Resolution No. PZ2025-14 Rezone from Suburban Residential (RS) to General Commercial (CG) Kenai Spur Hwy @ Wildwood Page 3 of 5 SUMMARY The applicants are seeking to rezone properties located primarily north and east of the Kenai Spur Highway and north of Wildwood Drive in the Black Gold Estates Subdivision (Amended) from Suburban Residential (RS) to General Commercial (CG) zoning district. One parcel is located to the west of the Kenai Spur Highway (KPB Parcel 03902122), which is currently split zoned as RS and CG. The new zoning for this parcel would be wholly CG. Five parcels south of Wildwood Drive in the Carl F. Ahlstrom Subdivision are also included due to their proximity to other CG zoned parcels and common ownership. The purpose of the rezone is to allow commercial uses to be developed on the subject parcels. Due to the proximity of the Kenai Spur Highway, it is anticipated that commercial uses are more likely to develop along the corridor, acting as a buffer to the proposed suburban residential subdivision beyond the affected parcels. The Kenai Spur Highway is classified as a Principal Arterial in this location by the Alaska Department of Transportation and as such, it is used to convey a high volume of traffic to Nikiski and points north. A Principal Arterial route often has higher annual average daily traffic counts than surrounding city streets, and generally results in higher associated road noise. This noise often deters substantial residential development directly on the route. These parcels were originally platted in the 1960s. As development priorities within the City have changed over time, the preferred use of the land has also changed. Land use along this corridor and similar corridors in the City are commercial or light industrial in nature. Expanding the CG Zoning District will allow for additional development along the Kenai Spur Highway. ANALYSIS Pursuant to KMC Section 14.20.270, the initiation of a Zoning Map Amendment may be initiated by a majority of the property owners in the area to be rezone. Furthermore, the area to be rezoned contains a minimum one (1) acre (excluding street or alley rights-of-way) unless the amendment enlarges an adjacent district boundary. The affected parcels are owned by eight different landowners. A majority of the landowners have expressed support. Written letters of support are attached to the application in this packet. This therefore, meets the requirements for the initiation of a rezone application. The combined area of the rezone is approximately 9.55 acres, which exceeds the minimum one (1) acre requirement for a zoning map amendment and it would expand the adjacent General Commercial zoning district to the south and west of the proposed rezone area. Existing and Proposed Zoning The existing zoning is Suburban Residential (RS) and the intent as outlined in KMC Section 14.20.090 states the following: The RS Zone is intended to provide for medium density residential development in areas which will be provided with common utility systems. The specific intent in establishing this zone is: (1) To separate residential structures to an extent which will allow for adequate light, air, and privacy; Page 13 Resolution No. PZ2025-14 Rezone from Suburban Residential (RS) to General Commercial (CG) Kenai Spur Hwy @ Wildwood Page 4 of 5 (2) To prohibit uses which would: (A) Violate the residential character of the environment; (B) Generate heavy traffic in predominantly residential areas. Findings: The area is currently surrounded to the west and south with existing commercial uses. A commercial use is also present in the center of the proposed rezoning area. The subdivision has not been developed in over sixty years, and given current development trends in the City of Kenai, the land closest to the Kenai Spur Highway is typically used for commercial uses. The current zoning, RS prohibits commerical uses unless it is a conditional use which may preclude potential development from occurring due to an increased administrative burden on potential developers. The proposed zoning is General Commercial (CG) and the intent as outlined in KMC Section 14.20.120 states the following: The CG zone allows for the widest range of commercial uses compared to other commercial zoning districts. The current zoning district, Suburban Residential (RS) is intended to provide for medium density residential development. The existing RS zone is not the preferred land use for this area as there are existing commercial uses to the south and west of the proposed rezone area and the subject properties are located on or near the Kenai Spur Highway. The rezone to General Commercial (CG) zone would increase the adjacent CG zoning district, which it is anticipated that it would be developed in conjunction with the surrounding commercial uses along the Kenai Spur Highway. Therefore, it would minimize potential impacts of commercial development on existing residential uses. Findings: The rezone to CG zone would increase the adjacent CG zoning district, which it is anticipated that it would be developed in conjunction with the surrounding commercial/institutional uses to the west and south. Therefore, minimizing potential impacts of commercial development on existing uses. Comprehensive Plan – Land Use Classification The existing land use classification is Suburban Residential and the intent as outlined in the Imagine Kenai 2030 Comprehensive Plan (“Comprehensive Plan”) states the following: Kenai residents place a high value on residential neighborhoods that are safe for all ages and located near important community facilities such as schools, recreational facilities, the library, parks, government services, and commercial areas. Findings: The existing land use classification states that the area is to be Suburban Residential. Due to the Kenai Spur being a Principal Arterial route, there is reason to anticipate that this area will become a mix of commercial uses, as traffic is higher along the Kenai Spur Highway and the associated road noise make residential uses less desirable. The proposed rezone to CG zone would be consistent as a natural extension of the General Commercial land use classification that is immediately south of the subject properties as identified in the Comprehensive Plan. An amendment to the land use map in the Comprehensive Plan is required, as all the Page 14 Resolution No. PZ2025-14 Rezone from Suburban Residential (RS) to General Commercial (CG) Kenai Spur Hwy @ Wildwood Page 5 of 5 proposed uses are not allowable in Suburban Residential zones. The City anticipates updating the Comprehensive Plan within a couple years, and a new Land Use Plan may be developed as a part of this process. The Comprehensive Plan supports this rezoning in the following identified goal: Goal 1 – Quality of Life: Promote and encourage quality of life in Kenai. • Q-4: Promote the siting and design of land uses that are in harmony and scale with surrounding uses. Findings: The proposed rezone to CG would align with the commercial development of the surrounding neighborhoods. Existing Use In the proposed rezone area, there are no principal structures. Commercial enterprises exist to the south and west of the proposed rezone area, and mirroring the zoning on the opposite side of the Kenai Spur Highway would open up land for new development. The original subdivision was platted over sixty years ago, and to date, there is little development within the entirety of the subdivision. Findings: The proposed rezone to CG zone would make the land fronting the Kenai Spur Highway, as well as adjacent lots behind them more desirable for development. The parcels not fronting the highway could potentially be merged in future subdivisions to allow for large developments. PUBLIC NOTICE Pursuant to Kenai Municipal Code 14.20.280 notices of the public hearing for the rezone were mailed to property owners within a three hundred-foot (300’) periphery of the subject properties. City staff published notice of the public hearing in the Peninsula Clarion, and notification was posted. No public comments have been received as of the date of this meeting. STAFF RECOMMENDATION Based on the findings and analysis in this staff report, Staff recommends the Planning & Zoning Commission recommending approval of a rezone of twenty-nine (29) parcels from Suburban Residential (RS) to General Commercial (CG) Zoning District; recommending a Zoning Map Amendment; and a Land Use Map Amendment. Planning & Zoning Commission’s recommendation will be forwarded to City Council for consideration. ATTACHMENTS Zoning Map Application Materials Letter of Intent Letters of Support Aerial Map Plat Draft Zoning Map Page 15 Page 16 Page 17 Page 18 Page 19 Page 20 Page 21 Page 22 Page 23 Page 24 Page 25 Page 26 Page 27 Page 28 March 24, 2025 – 6:30 PM Action Agenda Betty J. Glick Assembly Chambers George A. Navarre Kenai Peninsula Borough Administration Building and Through Jeremy Brantley, Chair Sterling/Funny River Term Expires 2027 Pamela Gillham, Vice Chair Kalifornsky / Kasilof District Term Expires 2026 Virginia Morgan Cooper Landing / Hope Eastern Peninsula District Term Expires 2025 Diane Fikes City of Kenai Term Expires 2025 Paul Whitney City of Soldotna Term Expires 2027 Franco Venuti City of Homer Term Expires 2025 Vacant City of Seward Term Expires 2026 Jeffrey Epperheimer Nikiski District Term Expires 2026 Dawson Slaughter South Peninsula District Term Expires 2025 ZOOM MEETING DETAILS Zoom Meeting Link: https://us06web.zoom.us/j/9077142200 Zoom Toll Free Phone Numbers: 888-788-0099 or 877-853-5247 Zoom Meeting ID: 907 714 2200 Remote participation will be available through Zoom, or other audio or video means, wherever technically feasible. A. CALL TO ORDER B. ROLL CALL PLAT COMMITTEE MEMBERS: • Pamela Gillham, Kalifornsky/Kasilof District • Paul Whitney, City of Soldotna • Virginia Morgan, Cooper Landing/Hope/Eastern Peninsula District • Franco Venuti, City of Homer • Dawson Slaughter, Southern Peninsula District C. APPROVAL OF AGENDA AND CONSENT AGENDA (Action items listed with an asterisk (*) are considered to be routine and non-controversial by the Planning Commission and will be approved by one motion. There will be no separate discussion of these items unless a Commissioner so requests, in which case the item will be removed from the Consent Agenda and considered in its normal sequence on the agenda.) ACTION ITEMS CURRENTLY ON CONSENT AGENDA: *1. Agenda *3. Minutes a. February 24, 2025 Plat Committee Meeting Minutes *4. Grouped Plats E1. Pearl Subdivision; KPB File 2025-015 E2. Valhalla Heights Subdivision Egan Replat; KPB File 2025-022 E4. Bend in the River Subdivision 2025 Replat; KPB File 2025-004 E7. Lake Vista Estates Part 5; KPB File 2025-009 E8. Lucason Subdivision 2025 Replat; KPB File 2025-016 E9. Bayview Gardens Sub Addn 1 Boher Replat 2025- KPB File 2020-021 E10. Baycrest Subdivision 2025 Replat; KPB File 2025-023 Motion to approve the agenda, the minutes from the February 24, 2025 Plat Committee meeting and grouped plats passed by unanimous vote (5-Yes) D. UNFINISHED BUSINESS - None Plat Committee Page 29 E. NEW BUSINESS Public Hearing: Quasi-Judicial Matters (Commission members may not receive or engage in ex-parte contact with the applicant, other parties interested in the application, or members of the public concerning the application or issues presented in the application) Platting Staff Contact: Platting Manager Vince Piagentini 1. Pearl Subdivision; KPB File 2025-015 Mullikin Surveys, LLC / Estate of M. Jane Middleton Location: MP 10 East End Road Fritz Creek Area / Kachemak Bay APC Motion to grant preliminary approval passed by unanimous vote (5-Yes) 2. Valhalla Heights Subdivision Egan Replat; KPB File 2025-022 Edge Survey & Design / Egan Location: Off Kenai Spur Highway on North Lupin Drive City of Kenai Motion to grant preliminary approval passed by unanimous vote (5-Yes) 3. Kenaitze Estates Subdivision; KPB File 2025-017 POSTPONED McLane Consulting Group / Johnson 4. Bend In the River Subdivision 2025 Replat; KPB File 2025-004 McLane Consulting Group / Cash Location: King Salmon Avenue Funny River Area / Funny River APC Motion to grant preliminary approval passed by unanimous vote (5-Yes) 5. Sutton Subdivision; KPB File 2024-114R1 Peninsula Surveying / Freeman, Sutton Location: Sports Lake Road, Northern Lights Boulevard, Rafie Street Ridgeway Area Motion to grant preliminary approval passed by unanimous vote (5-Yes) Motion to grant the exception request to KPB 20.30.170 – Block Length Requirements, passed by unanimous vote (5-Yes) 6. Snowland Subdivision 2025; KPB File 2025-019 Peninsula Surveying / Trident Investment Properties LLC Location: Glenwood Avenue, Milkyway Street – off Holt Lamplight Road Nikiski Area / Nikiski APC Motion to grant preliminary approval passed by unanimous vote (5-Yes) Motion to grant the exception request KPB 20.30.170 – Block Length Requirements & KPB 20.30.030(A) – Proposed Street Layout, passed by unanimous vote (5-Yes) Page 30 7. Lake Vista Estates Part 5; KPB File 2025-009 Johnson Surveying / Kanuti River LLC Location: Lake Vista Drive & Moose Hollow Road Salamatof Area / Nikiski APC Motion to grant preliminary approval passed by unanimous vote (5-Yes) 8. Lucason Subdivision 2025 Replat; KPB File 2025-016 Johnson Surveying / Stokes, Demidoff Location: MP 137 Sterling Highway & Auntie Mae Drive Happy Valley Area Motion to grant preliminary approval passed by unanimous vote (5-Yes) 9. Bayview Gardens Sub Addn 1 Bohrer Replat 2025; KPB File 2025-021 Seabright Survey & Design / Bohrer-Nagamine Revocable Trust Location: Corner of East Hill Road & Rosebud Court City of Homer Motion to grant preliminary approval passed by unanimous vote (5-Yes) 10. Baycrest Subdivision 2025 Replat; KPB File 2025-023 Seabright Survey & Design / Pourciau, Seneff Location: Ursula Avenue & Mount Augustine Drive City of Homer Motion to grant preliminary approval passed by unanimous vote (5-Yes) F. PUBLIC COMMENTS ON ITEMS NOT APPEARING ON THE AGENDA (3 MINUTES PER SPEAKER) G. ADJOURNMENT MISCELLANEOUS INFORMATIONAL ITEMS NEXT REGULARLY SCHEDULED PLAT COMMITTEE MEETING The next regularly scheduled Plat Committee meeting will be held Monday, April 14, 2025 in the Betty J. Glick Assembly Chambers of the Kenai Peninsula Borough George A. Navarre Administration Building, 144 North Binkley Street, Soldotna, Alaska at 6:30 p.m. CONTACT INFORMATION KENAI PENINSULA BOROUGH PLANNING DEPARTMENT Phone: 907-714-2215 / Toll free within the Borough 1-800-478-4441, extension 2215 e-mail address: planning@kpb.us website: http://www.kpb.us/planning-dept/planning-home A party of record may file an appeal of a decision of the Planning Commission in accordance with the requirements of the Kenai Peninsula Borough Code of Ordinances. An appeal must be filed with the Borough Clerk within 15 days of the notice of decision, using the proper forms, and be accompanied by the filing and records preparation fees. Page 31 April 14, 2025 – 7:30 PM Action Agenda Betty J. Glick Assembly Chambers George A. Navarre Kenai Peninsula Borough Administration Building and Through Jeremy Brantley, Chair Sterling/Funny River Term Expires 2027 Pamela Gillham, Vice Chair Kalifornsky / Kasilof District Term Expires 2026 Virginia Morgan Cooper Landing / Hope Eastern Peninsula District Term Expires 2025 Diane Fikes City of Kenai Term Expires 2025 Paul Whitney City of Soldotna Term Expires 2027 Franco Venuti City of Homer Term Expires 2025 Vacant City of Seward Term Expires 2026 Jeffrey Epperheimer Nikiski District Term Expires 2026 Dawson Slaughter South Peninsula District Term Expires 2025 Remote participation will be available through Zoom, or other audio or video means, wherever technically feasible ZOOM MEETING DETAILS Zoom Meeting Link: https://us06web.zoom.us/j/9077142200 Zoom Toll Free Phone Numbers: 888-788-0099 or 877-853-5247 Zoom Meeting ID: 907 714 2200 A. CALL TO ORDER B. ROLL CALL C. APPROVAL OF AGENDA AND CONSENT AGENDA (Action items listed with an asterisk (*) are considered to be routine and non- controversial by the Planning Commission and will be approved by one motion. There will be no separate discussion of these items unless a Commissioner so requests, in which case the item will be removed from the Consent Agenda and considered in its normal sequence on the agenda.) ACTION ITEMS CURRENTLY ON CONSENT AGENDA: *3. Plats Granted Administrative Approval a. King’s Creek Subdivision Urban Addition No. 2 Kiefer 2024 Replat; KPB File 2024-071 b. Ninilchik Townsite 2024 Replat; KPB File 2024-082 c. Sweet Spot Subdivision; KPB File 2024-069 d. Roofe Subdivision; KPB File 2023-054 *4. Plats Granted Final Approval a. Ninilchik Townsite of USS 3036 A & B Replat 2024; KPB File 2024-112 b. Solver King Estates Replat 2024; KPB File 2024-111 *6. Commissioner Excused Absences a. Vacant, City of Seward *7. Minutes a. March 24, 2025 Planning Commission Meeting Minutes Motion to approve the consent & regular agendas passed by unanimous vote. (8-Yes) Planning Commission Page 32 D. UNFINISHED BUSINESS 1. Conditional Use Permit: PC Resolution 2025-04 Applicant/Landowner: Ostrowski Location: 30575 Lure Court in Soldotna PIN# 066-210-13 Request: Placement of Utilities, Septic System & Fish Cleaning Station Within the HPD of the Kenai River A motion amend previously adopted Planning Commission Resolution 2025-04 by attaching findings passed by unanimous vote (8-Yes) E. NEW BUSINESS Public Hearing: Quasi-Judicial Matters (Commission members may not receive or engage in ex-parte contact with the applicant, other parties interested in the application, or members of the public concerning the application or issues presented in the application) 1. Conditional Use Permit Applicant/Landowner: Imhof Location: 45691 Davison Avenue in Soldotna PIN# 055-033-64 Request: Placement of a Deck Within the 50-foot HPD of the Kenai River Staff Person: Planner Morgan Aldridge Motion to adopt Planning Commission 2025-05 granting a conditional use permit under KPB 21.18 passed by unanimous vote (8-Yes). Public Hearing: Legislative Matters – None F. PLAT COMMITTEE REPORT – The plat committee will review 15 plats G. OTHER H. PRESENTATIONS/PUBLIC COMMENTS ON ITEMS NOT APPEARING ON THE AGENDA (3 MINUTES PER SPEAKER) I. DIRECTOR’S COMMENTS J. COMMISSIONER COMMENTS K. ADJOURNMENT MISCELLANEOUS INFORMATIONAL ITEMS NEXT REGULARLY SCHEDULED PLANNING COMMISSION MEETING The next regularly scheduled Planning Commission meeting will be held Monday, April 28, 2025 in the Betty J. Glick Assembly Chambers of the Kenai Peninsula Borough George A. Navarre Administration Building, 144 North Binkley Street, Soldotna, Alaska at 7:30 p.m. Page 33 CONTACT INFORMATION KENAI PENINSULA BOROUGH PLANNING DEPARTMENT Phone: 907-714-2215 / Toll free within the Borough 1-800-478-4441, extension 2215 Fax: 907-714-2378 e-mail address: planning@kpb.us website: http://www.kpb.us/planning-dept/planning-home A party of record may file an appeal of a decision of the Planning Commission in accordance with the requirements of the Kenai Peninsula Borough Code of Ordinances. An appeal must be filed with the Borough Clerk within 15 days of the notice of decision, using the proper forms, and be accompanied by the filing and records preparation fees. Vacations of rights-of-way, public areas, or public easements outside city limits cannot be made without the consent of the borough assembly. Vacations within city limits cannot be made without the consent of the city council. The assembly or city council shall have 30 calendar days from the date of approval in which to veto the planning commission decision. If no veto is received within the specified period, it shall be considered that consent was given. A denial of a vacation is a final act for which the Kenai Peninsula Borough shall give no further consideration. Upon denial, no reapplication or petition concerning the same vacation may be filed within one calendar year of the date of the final denial action except in the case where new evidence or circumstances exist that were not available or present when the original petition was filed. Page 34 April 14, 2025 – 6:30 PM Action Agenda Betty J. Glick Assembly Chambers George A. Navarre Kenai Peninsula Borough Administration Building Jeremy Brantley, Chair Sterling/Funny River Term Expires 2027 Pamela Gillham, Vice Chair Kalifornsky / Kasilof District Term Expires 2026 Virginia Morgan Cooper Landing / Hope Eastern Peninsula District Term Expires 2025 Diane Fikes City of Kenai Term Expires 2025 Paul Whitney City of Soldotna Term Expires 2027 Franco Venuti City of Homer Term Expires 2025 Vacant City of Seward Term Expires 2026 Jeffrey Epperheimer Nikiski District Term Expires 2026 Dawson Slaughter South Peninsula District Term Expires 2025 ZOOM MEETING DETAILS Zoom Meeting Link: https://us06web.zoom.us/j/9077142200 Zoom Toll Free Phone Numbers: 888-788-0099 or 877-853-5247 Zoom Meeting ID: 907 714 2200 Remote participation will be available through Zoom, or other audio or video means, wherever technically feasible. A. CALL TO ORDER B. ROLL CALL C. APPROVAL OF AGENDA AND CONSENT AGENDA ACTION ITEMS CURRENTLY ON CONSENT AGENDA: *1. Agenda *2. Member Excused Absences - None *3. Minutes a. March 24, 2025 Plat Committee Meeting Minutes *4. Grouped Plats E1. The Point Subdivision # 2 E2. Friday Replat E3. Shadura Subdivision Piccolo Addition E4. Holland Spur Highway Subdivision Addition No. 1 E5. Benjamin-Badarson Subdivision 2025 Replat E6. Eagle Crest Subdivision Replat 2025 E7. Pacific Park 2025 Replat E8. Salamatof Air Park 2025 Addition E9. Sprucegate Subdivision No 3 2025 Replat E11. Soldotna Creek The Pointe Addition 2025 Replat E14. Soldotna Junction Subdivision 2025 Replat E15. Seward Original Townsite Kawabe Park Replat Motion to approve the consent agenda passed unanimously (4-Yes) Plat Committee Page 35 D. UNFINISHED BUSINESS - None E. NEW BUSINESS Public Hearing: Quasi-Judicial Matters (Commission members may not receive or engage in ex- parte contact with the applicant, other parties interested in the application, or members of the public concerning the application or issues presented in the application) Platting Staff Contact: Platting Manager Vince Piagentini 1. The Point Subdivision #2; KPB File 2025-043 Johnson Surveying / Nelson, Zimmerman, Olv LLC Location: Riptide Lane, Undertow Avenue & Nash Road Seward Area Motion to grant preliminary approval passed by unanimous vote (4-Yes) 2. Friday Replat; KPB File 2025-034 Edge Survey & Design / McKeirnan Location: On Second Avenue off North Spruce Street City of Kenai Motion to grant preliminary approval passed by unanimous vote (4-Yes) 3. Shadura Subdivision Piccolo Addition; KPB File 2025-036 Edge Survey & Design / Piccolo Location: On the Sterling Highway between MP 103-104 Kalifornsky Area Motion to grant preliminary approval passed by unanimous vote (4-Yes) 4. Holland Spur Highway Subdivision Addition No. 1; KPB File 2025-031 Peninsula Surveying / Martin Location: Approximately MP 7.5 Kenai Spur Highway City of Kenai Motion to grant preliminary approval passed by unanimous vote (4-Yes) 5. Benjamin – Badarson Subdivision 2025 Replat; KPB File 2025-037 Peninsula Surveying / Salmon Bake Cabins LLC Location: Herman Leirer Road & Bronze Avenue Bear Creek Area Motion to grant preliminary approval passed by unanimous vote (4-Yes) Page 36 6. Eagle Crest Subdivision Replat 2025; KPB File 2025-038 Peninsula Surveying / Thielke, Rilleau, Sutton Location: Treeline Way and Arnold Avenue Diamond Ridge Area Motion to grant preliminary approval passed by unanimous vote (4-Yes) 7. Pacific Park 2025 Replat; KPB File 2025-039 Peninsula Surveying /Kalugin Location: Pacific Park Street Anchor Point Area Motion to grant preliminary approval passed by unanimous vote (4-Yes) 8. Salamatof Air Park 2025 Addition; KPB 2025-045 Peninsula Surveying / Kustatan Leasing LLC Location: Citabria Street Nikiski Area Motion to grant preliminary approval passed by unanimous vote (4-Yes) 9. Sprucegate Subdivision No. 3 2025 Replat; KPB File 2025-044 Peninsula Surveying / Gardner, Appelhanz Location: North Fork Road Anchor Point Area Motion to grant preliminary approval passed by unanimous vote (4-Yes) 10. Carroll Subdivision; KPB File 2025-026 McLane Consulting Group / H&H Sister Properties, LLC Location: Kasilof River Road Cohoe Area Motion to grant preliminary approval passed by unanimous vote (4-Yes) Motion to grant the exception request to to KPB 20.30.190(A) – Lot Dimension Requirements 3:1 Ratio, passed by unanimous vote (4-Yes) 11. Soldotna Creek The Pointe Addition 2025 Replat; KPB 2025-040 McLane Consulting Group /Hutchings Location: Forty Seventh Street & Between MP 94-95 Sterling Highway City of Soldotna Motion to grant preliminary approval passed by unanimous vote (4-Yes) Page 37 12. Salamatof Lake Subdivision; KPB File 2025-041 McLane Consulting Group / S & B Properties LLC Location: Morel Avenue, Kellam Street & Arness Road Nikiski Area Motion to grant preliminary approval passed by unanimous vote (4-Yes) Motion to grant the exception request to KPB 20.30.190(A) – Lot Dimension Requirements 3:1 Ratio, passed by unanimous vote (5-Yes) 13. Lind Subdivision Basargin Addition; KPB File 2025-027 McLane Consulting Group / Basargin Location: East End Road Fritz Creek Area / Kachemak Bay APC Motion to grant preliminary approval passed by unanimous vote (4-Yes) 14. Soldotna Junction Subdivision 2025 Replat; KPB File 2025-042 McLane Consulting Group / Hutchings Location: S Soldotna Avenue, Near MP 94.5 Sterling Highway City of Soldotna Motion to grant preliminary approval passed by unanimous vote (4-Yes) 15. Seward Original Townsite Kawabe Park Replat; KPB File 2025-028 AK Lands / City of Seward Location: Corner of Fourth Avenue & Adams Street City of Seward Motion to grant preliminary approval passed by unanimous vote (4-Yes) F. PUBLIC COMMENTS ON ITEMS NOT APPEARING ON THE AGENDA (3 MINUTES PER SPEAKER) G. ADJOURNMENT MISCELLANEOUS INFORMATIONAL ITEMS NEXT REGULARLY SCHEDULED PLAT COMMITTEE MEETING The next regularly scheduled Plat Committee meeting will be held Monday, April 28, 2025 in the Betty J. Glick Assembly Chambers of the Kenai Peninsula Borough George A. Navarre Administration Building, 144 North Binkley Street, Soldotna, Alaska at 6:30 p.m. CONTACT INFORMATION KENAI PENINSULA BOROUGH PLANNING DEPARTMENT Phone: 907-714-2215 / Toll free within the Borough 1-800-478-4441, extension 2215 Fax: 907-714-2378 e-mail address: planning@kpb.us website: http://www.kpb.us/planning-dept/planning-home A party of record may file an appeal of a decision of the Planning Commission in accordance with the requirements of the Kenai Peninsula Borough Code of Ordinances. An appeal must be filed with the Borough Clerk within 15 days of the notice of decision, using the proper forms, and be accompanied by the filing and records preparation fees. Page 38 Kenai City Council - Regular Meeting Page 1 of 3 April 02, 2025 Kenai City Council - Regular Meeting April 02, 2025 ꟷ 6:00 PM Kenai City Council Chambers 210 Fidalgo Avenue, Kenai, Alaska www.kenai.city **Telephonic/Virtual Information on Page 3** Action Agenda A. CALL TO ORDER 1. Pledge of Allegiance 2. Roll Call 3. Approval of the Agenda and Consent Agenda (Public comments on Consent Agenda Items limited to three (3) minutes per speaker; thirty (30) minutes aggregated) *All items listed with an asterisk (*) are considered to be routine and non-controversial by the council and will be approved by one motion. There will be no separate discussion of these items unless a council member so requests, in which case the item will be removed from the consent agenda and considered in its normal sequence on the agenda as part of the General Orders. B. SCHEDULED ADMINISTRATIVE REPORTS C. SCHEDULED PUBLIC COMMENTS (Public comments limited to ten (10) minutes per speaker) 1. Kenai River Quality Monitoring Funding, Kenai Watershed Forum, Environmental Scientist and Water Quality Coordinator, Benjamin Meyer. 2. Request for Land Donation, Kenai Peninsula Housing Initiatives, Inc., Finance Director Dana Gregoire. D. UNSCHEDULED PUBLIC COMMENTS (Public comments limited to three (3) minutes per speaker; thirty (30) minutes aggregated) E. PUBLIC HEARINGS 1. ADOPTED UNANIMOUSLY. Resolution No. 2025-21 - Amending City Council Policies 20.010 - Recording Council Meetings, and 20.020 Standing Commissions and Other Advisory Body Procedures, to Establish that Meeting Recordings are Retained in Accordance with the Records Management Schedule and Record Retention Policy of the City. (City Clerk) 2. ADOPTED UNANIMOUSLY. Resolution No. 2025-22 - Amending Council Policy 20.000 Agenda & Packet - Preparation, Distribution and Publication, to Establish a Twenty Minute Aggregate Time Limit for Scheduled Public Comment and a Thirty Minute Aggregate Time Limit for Unscheduled Public Comment. (Gabriel) F. MINUTES 1. *Regular Meeting of March 19, 2025. (City Clerk) G. UNFINISHED BUSINESS Page 39 Kenai City Council - Regular Meeting Page 2 of 3 April 02, 2025 H. NEW BUSINESS 1. *Action/Approval - Bills to be Ratified. (Administration) 2. *Ordinance No. 3462-2025 - Accepting and Appropriating Donations to the Kenai Animal Shelter for the Purchase of Equipment and Supplies. (Administration) 3. APPROVED UNANIMOUSLY. Action/Approval - Council on Aging Commission 2025 Work Plan. (City Clerk) 4. WORK SESSION SCHEDULED FOR 5/3/2025 AT 9:00 AM. Discussion - Scheduling a Budget Work Session. (Administration) 5. INTRODUCED/PUBLIC HEARING SET FOR 4/16/2025 - Ordinance No. 3463-2025 - Conditionally Donating Certain City Owned Property Described as Three Approximately 1 ½ Acre Parcels to be Subdivided from a Portion of the Approximately 69 ½ Acre Parcel Described as Kenai Meadows Addition No 1, Tract A1 According to Plat 2023-48 (KPB Parcel No. 03901067) to Kenai Peninsula Housing Initiative for the Development of Restricted Income and Senior Housing. (Administration) I. COMMISSION REPORTS 1. Council on Aging Commission 2. Airport Commission 3. Harbor Commission 4. Parks and Recreation Commission 5. Planning and Zoning Commission 6. Beautification Commission J. REPORT OF THE MAYOR K. ADMINISTRATION REPORTS 1. City Manager 2. City Attorney 3. City Clerk L. ADDITIONAL PUBLIC COMMENTS 1. Citizens Comments (Public comments limited to five (5) minutes per speaker) 2. Council Comments M. EXECUTIVE SESSION 1. Review and Discussion of the City Manager's Evaluation Which May be a Subject that Tends to Prejudice the Reputation and Character of the City Manager [AS 44.62.310(C)(2)]. 2. Review and Discussion of the City Attorney's Evaluation Which May be a Subject that Tends to Prejudice the Reputation and Character of the City Attorney [AS 44.62.310(C)(2)]. 3. Review and Discussion of the City Clerk's Evaluation Which May be a Subject that Tends to Prejudice the Reputation and Character of the City Clerk [AS 44.62.310(C)(2)]. N. PENDING ITEMS Page 40 Kenai City Council - Regular Meeting Page 3 of 3 April 02, 2025 O. ADJOURNMENT P. INFORMATION ITEMS The agenda and supporting documents are posted on the City’s website at www.kenai.city. Copies of resolutions and ordinances are available at the City Clerk’s Office or outside the Council Chamber prior to the meeting. For additional information, please contact the City Clerk’s Office at 907-283-8231. Registration is required to join the meeting remotely through Zoom. Please use the following link to register: https://us02web.zoom.us/meeting/register/am9d7e9fS9KAMhuetsTcKA Page 41 Kenai City Council - Regular Meeting Page 1 of 3 April 16, 2025 Kenai City Council - Regular Meeting April 16, 2025 ꟷ 6:00 PM Kenai City Council Chambers 210 Fidalgo Avenue, Kenai, Alaska www.kenai.city **Telephonic/Virtual Information on Page 3** Action Agenda A. CALL TO ORDER 1. Pledge of Allegiance 2. Roll Call 3. Approval of the Agenda and Consent Agenda (Public comments on Consent Agenda Items limited to three (3) minutes per speaker; thirty (30) minutes aggregated) *All items listed with an asterisk (*) are considered to be routine and non-controversial by the council and will be approved by one motion. There will be no separate discussion of these items unless a council member so requests, in which case the item will be removed from the consent agenda and considered in its normal sequence on the agenda as part of the General Orders. B. SCHEDULED ADMINISTRATIVE REPORTS 1. Fiscal Year 2024 Audit Report, Principal Assurance Practice Leader Joy Merriner, BDO USA, LLP. C. SCHEDULED PUBLIC COMMENTS (Public comments limited to ten (10) minutes per speaker; twenty (20) minutes aggregated) 1. Boys and Girls Club of the Kenai Peninsula, Chief Executive Officer Shanette Wik. 2. Central Area Rural Transit System (CARTS), Board of Directors Secretary Linda Hutchings and Executive Director Jessica Schultz. D. UNSCHEDULED PUBLIC COMMENTS (Public comments limited to three (3) minutes per speaker; thirty (30) minutes aggregated) E. PUBLIC HEARINGS 1. ENACTED UNANIMOUSLY. Ordinance No. 3462-2025 - Accepting and Appropriating Donations to the Kenai Animal Shelter for the Purchase of Equipment and Supplies. (Administration) 2. ENACTED UNANIMOUSLY. Ordinance No. 3463-2025 - Conditionally Donating Certain City Owned Property Described as Three Approximately 1½ Acre Parcels to be Subdivided from a Portion of the Approximately 69½ Acre Parcel Described as Kenai Meadows Addition No 1, Tract A1 According to Plat 2023-48 (KPB Parcel No. 03901067) to Kenai Peninsula Housing Initiative for the Development of Restricted Income and Senior Housing. (Administration) 3. ADOPTED UNANIMOUSLY. Resolution No. 2025-23 - Redirecting Water & Sewer Capital Project Funds to Complete Citywide Lift Station Improvements. (Administration) Page 42 Kenai City Council - Regular Meeting Page 2 of 3 April 16, 2025 4. ADOPTED UNANIMOUSLY. Resolution No. 2025-24 - Implementing a New Fee for a Truck Fill Station Permit in the Water Fees Section of the Schedule of Rates, Charges and Fees. (Administration) 5. ADOPTED UNANIMOUSLY. Resolution No. 2025-25 - Authorizing Award of the Contract to Use Cranes, Offices, and Operation Area at the Boating Facility. (Administration) 6. ADOPTED UNANIMOUSLY. Resolution No. 2025-26 - Authorizing the City Manager to Enter into an Agreement with the City of Soldotna to Continue Providing Animal Shelter Services for the City of Soldotna at the Kenai Animal Shelter. (Administration) F. MINUTES 1. *Regular Meeting of April 2, 2025. (City Clerk) G. UNFINISHED BUSINESS H. NEW BUSINESS 1. *Action/Approval - Bills to be Ratified. (Administration) 2. *Action/Approval - Special Use Permit to Rebecca Boettcher, DBA: The Fishing Grounds, LLC for Operation of a Snack/Gift Shop Inside the Kenai Municipal Airport. (Administration) 3. *Action/Approval - Special Use Permit to the State of Alaska, Division of Forestry for Use of Apron Space at the Kenai Municipal Airport. (Administration) 4. *Ordinance No. 3464-2025 - Amending Kenai Municipal Code 21.05.085 - Airport Fuel Flowage Fee, to Remove the Set Amount in Code and Instead Refer to the Annually Updated Schedule of Rates, Charges and Fees. (Administration) 5. *Ordinance No. 3465-2025 - Amending Kenai Municipal Code, Title 2 - Alcoholic Beverage and Marijuana, Standardizing How Licenses are Reviewed by the City, Allowing for Administrative Non-Objections for Renewal of Existing Licenses When No Grounds to Object to the Renewal are Identified, Updating Public Hearings for Protests or Conditional Non-Objections, Aligning Municipal Code with Requirements of Alaska Statutes, and Other Housekeeping Amendments. (City Clerk) 6. *Ordinance No. 3466-2025 - Amending Kenai Municipal Code, Chapter 4.32 Residential Code, to Reinstate Provisions Related to Engineered Design and Location, Including Fire Code Protection on Floors Provisions of the 2021 International Residential Code. (Administration) 7. *Ordinance No. 3467-2025 - Accepting and Appropriating a Grant Received Through the Alaska Animal Control Association to the Kenai Animal Shelter for Attendance at the Alaska Animal Control Association 2025 Training Conference. (Administration) 8. *Ordinance No. 3468-2025 - Accepting and Appropriating a Donation to the Kenai Community Library for the Summer Reading Program 2025. (Administration) 9. *Ordinance No. 3469-2025 - Amending KMC 1.85.060-Conflicts of Interest Prohibited, to Allow Municipal Officers and City Employees to Participate in Certain Sales Open to the Public Through a Public Process and Narrowing the Existing Prohibition on Purchases to Personal Property Items. (Douthit) 10. APPOINTMENT OF JEANNE REVEAL APPROVED. Action/Approval - Confirmation of Mayoral Nomination for a Partial Term Appointment of Jeanne Reveal to the Planning & Zoning Commission. (Gabriel) Page 43 Kenai City Council - Regular Meeting Page 3 of 3 April 16, 2025 I. COMMISSION REPORTS 1. Council on Aging Commission 2. Airport Commission 3. Harbor Commission 4. Parks and Recreation Commission 5. Planning and Zoning Commission 6. Beautification Commission J. REPORT OF THE MAYOR K. ADMINISTRATION REPORTS 1. City Manager 2. City Attorney 3. City Clerk L. ADDITIONAL PUBLIC COMMENTS 1. Citizens Comments (Public comments limited to five (5) minutes per speaker) 2. Council Comments M. EXECUTIVE SESSION 1. Review and Discussion of the City Clerk's Evaluation which May be a Subject that Tends to Prejudice the Reputation and Character of the City Clerk [AS 44.62.310(C)(2)]. N. PENDING ITEMS O. ADJOURNMENT P. INFORMATION ITEMS 1. CIRCAC Director's Report - Williams The agenda and supporting documents are posted on the City’s website at www.kenai.city. Copies of resolutions and ordinances are available at the City Clerk’s Office or outside the Council Chamber prior to the meeting. For additional information, please contact the City Clerk’s Office at 907-283-8231. Registration is required to join the meeting remotely through Zoom. Please use the following link to register: https://us02web.zoom.us/meeting/register/8Yr9FnrwQoqEILV-k1WOlA Page 44 MEMORANDUM TO: Planning & Zoning Commission FROM: Kevin Buettner, Planning Director DATE: April 15, 2025 SUBJECT: Conditionally Donating a Portion of Tract A1, 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 Page 45 Page 2 of 2 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 the April 2, 2025 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 a laydown for the April 2, 2025, Council meeting. 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. Page 46 Sponsored by: Administration New Text Underlined; [DELETED TEXT BRACKETED] CITY OF KENAI ORDINANCE NO. 3463-2025 AN ORDINANCE CONDITIONALLY DONATING CERTAIN CITY OWNED PROPERTY DESCRIBED AS THREE APPROXIMATELY 1 ½ ACRE PARCELS TO BE SUBDIVIDED FROM A PORTION OF THE APPROXIMATELY 69 ½ ACRE PARCEL DESCRIBED AS KENAI MEADOWS ADDITION NO 1, TRACT A1 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 ½ acre portion of the parcel described as Kenai Meadows Addition No 1, Tract A1, 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 ½ acre portion of the parcel described as Kenai Meadows Addition No 1, Tract A1, 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. Page 47 Ordinance No. 3463-2025 Page 2 of 2 New Text Underlined; [DELETED TEXT BRACKETED] 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 5. 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 16th DAY OF April, 2025. ___________________________________ Brian Gabriel Sr., Mayor ATTEST: ___________________________________ Michelle M. Saner, MMC, City Clerk Introduced: April 2, 2025 Enacted: April 16, 2025 Effective: May 16, 2025 Page 48 MEMORANDUM TO: Planning & Zoning Commission FROM: Kevin Buettner, Planning Director DATE: April 15, 2025 SUBJECT: Conditionally Donating a Portion of Tract A1, 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 Page 2 of 2 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 the April 2, 2025 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 a laydown for the April 2, 2025, Council meeting. 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. Sponsored by: Administration New Text Underlined; [DELETED TEXT BRACKETED] CITY OF KENAI ORDINANCE NO. 3463-2025 AN ORDINANCE CONDITIONALLY DONATING CERTAIN CITY OWNED PROPERTY DESCRIBED AS THREE APPROXIMATELY 1 ½ ACRE PARCELS TO BE SUBDIVIDED FROM A PORTION OF THE APPROXIMATELY 69 ½ ACRE PARCEL DESCRIBED AS KENAI MEADOWS ADDITION NO 1, TRACT A1 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 ½ acre portion of the parcel described as Kenai Meadows Addition No 1, Tract A1, 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 ½ acre portion of the parcel described as Kenai Meadows Addition No 1, Tract A1, 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. Ordinance No. 3463-2025 Page 2 of 2 New Text Underlined; [DELETED TEXT BRACKETED] 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 5. 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 16th DAY OF April, 2025. ___________________________________ Brian Gabriel Sr., Mayor ATTEST: ___________________________________ Michelle M. Saner, MMC, City Clerk Introduced: April 2, 2025 Enacted: April 16, 2025 Effective: May 16, 2025 MEMORANDUM 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 A1, 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 Page 2 of 2 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. CERTIFICATE OF PUBLICATION & POSTING I, Beth McDonald, Planning Administrative Assistant of the City of Kenai, do hereby certify that on the 7th day of April, 2025, I electronically mailed or caused to be published the foregoing Notice of Meeting to the Peninsula Clarion and requested that this Notice be published in the April 11, 2025 edition of their newspaper. On the 17th day of April, 2025, the full meeting agenda was also posted at Kenai City Hall and on the internet at www.kenai.city. ___________________________ Beth McDonald Planning Administrative Assistant