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Home My WebLink AboutResolution No. 2025-45mm 111va."I'VIN ROM= WHEREAS, on April 21, 2025, Schilling Rentals, LLC ("Schilling Rentals") submitted a complete least, application and paid the required application fee; and, WHEREAS, Schilling Rentals is eligible for a lease term of 45 years according to a professional estimat; of the remaining useful life of the principal improvement on the property, pursuant to KMC 21.10.080(e); and, FANNAHRIIN T WHEREAS, the lease use is compatible with Kenai Municipal Zoning Code for allowed uses within tht Airport Light Industrial (ALI) Zoning District; and, V11 realm"TWITf ")M"F , 7p#77705T. 5 - Transportation, which has a vision for Kenai Municipal Airport as a gateway to the Kenai Peninsula; and, WHEREAS, the use is compatible and conforms with the Airport Land Use Plan, Airport Layout Plan, Federal Aviation Administration regulations, Airport Master Plan, Airport Improvement Program grant assurances, and Airport operations; and, WHEREAS, the City did not receive a competing lease application within 30 days of publishing a public notice of the lease application, pursuant to KMC 21.10.075 Competing Applications; and, WHEREAS, at its regular meeting on June 12, 2025, the Airport Commission reviewed the lease application and recommended approval by the City Council; and, WHEREAS, at its regular meeting on June 25, 2025, the Planning and Zoning Commission recommended approval by the City Council. NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA: Section 1. That a Lease of Airport Reserve Lands is approved and the City Manager is authorized to execute a lease between the City of Kenai, Lessor, and Schilling Rentals, LLC, Lessee, for a term of 45 years for the property described as Lot 3, Block 2, of General Aviation Apron Subdivision No. 1 Amended; and, 1jl11!1 '1111 1 i •, ffm *age 2 of 2 ri � - I � iIIIIII 111mal 1111ilitlimni I I'll qOffirlIM" Brian Gabriel Sr., Mayor ATTEST Miic6hille S er, M ._',MC, City Clerk N, 1111h1h11 Ail - -- .enai 1210 Fidalgo live, Kenai, AK 99611-7794 1907.28,3.7535 1 wwwkenai.citv 1 TO: Mayor Brian Gabriel and Kenai City Council THROUGH: Terry Eubank, City Manager THROUGH: Kevin Buettner, Planning Director FROM: Brandon McElrea, Planning Technician DATE: June 4, 2025 SUBJECT: Resolution No. 2025-46 - Lease Renewal of Airport Reserve Land for the Property Described as Lot 3, Block 2, General Aviation Apron No. 1 According to Plat No. 2004-20. Schilling Rentals, LLC ("Schilling Rentals") submitted a land lease renewal application of Airport Reserve Land for the property described as Lot 3, Block 2, General Aviation Apron Subdivision No. 1, located at 155 Granite Point Court (KP13 Parcel No. 04324006). Pursuant to Kenai Municipal Code (KMC) 21.10.080(e) Length of Lease Term, the applicant is requesting a term of 4,5*,,Qars; based on a orofessional opinion of rem useful life, sulwlied bl,,, Larson Enaineerimp & Design. Pursuant to Kenai Municipal Code 21.10.075 - Leasing and Acquisition of Airport Reserve Lands, Competing Applications, the City posted notice of the lease application and has not received a competing lease application for the parcel. The applicant intends to continue to use the premises for aviation related purposes. SchillirR7 Rentals currently holds several leases with the City and is in compliance with the terms a conditions of their leases. I The subject property is approximately 1.15 acres and located within the Airport Light Industri"r (ALI) Zone. The intent of the ALI Zone is to protect the viability of the Kenai Municipal Airport a significant resource to the community by encouraging compatible land uses and reduci hazards that may endanger the lives and property of the public and aviation users. The continui use is permitted in the ALI Zone and is an airport compatible use. Furthermore, the use consistent with the 2016 Imagine Kenai 2030 Comprehensive Plan. It supports Goal Transportation, which has a vision for Kenai Municipal Airport as a gateway to the Kenl Peninsula. The continued use by Schilling Rentals, LLC complies with the 2016 Imagine Kenai 2030 Comprehensive Plan. It supports Goal 5 - Transportation, which has a vision for Kenai Municipal Airport as a gateway to the Kenai Peninsula. 177NM�5STM�00 11 , , le. X& Airport land. The Airport Land Use Plan discusses leasing land and enhancing opportunitie local economic development. The continued use by Schilling Rentals complies with the Ai Land Use Plan. I ine irporLuottiriiissioritecortirtierili 1 ap..,Wfoira F e as 3 -* 77 F1 ym r The Planning and Zoning Commission recommended approval of the lease application durin* their June 25, 2025 meeting. r-1411r,42111COVA M-EVINTIM a anziffirans P, 0 INETIFIFT IN '1111 0, ZMEM" Im Attachments Aerial Map Application Page 2 of 2 Tke City of Kenai I®I Ln V) .0 M 0 CL 0 = C: » x Name of Applicant:— MailingAddress: J�POBox3426 �Phone Number(s): Horne Phone: Work/ Message Phone, E-mail� (Optional) . ........... Name to Appear an Lease� Schilling Rentals, LLC Mailing Address: _�,POBox3426 'Phone Number(s): 'Home Phone: Work/ Message Phone� M E-mail: (Optional) jType of Applicant* on of property (or, if subdivision is required, a brief description of property). General Aviation Apron Amended 5 �es ti�e —proper—tyre"qu-ir-e--su. _bdiv'ision? (if Yes, answer next questions) F-I YES [KI NO Subdivision costs are the responsibility of the applicant unless the City Council determines a subdivision serves other City purposes: I Do you believe the proposed subdivision would serve other City purposes? C YES NO determined it does not, applicant is responsible for all subdivision costs, Initials f in appraisal is required to determine the minimum pnce on the land, applicant is responsible for the deposit to cover costs associated with appraisal. If a sale is approved, the cost of the Initials appraisal will. be either refunded or credited to,Lh It is the responsibility of the applicant to cover recording costs associated with lease. Initials Do you have or have you ever had a Lease with the City? (if Yes, answer next question) E YES I NO= 1 Legal or brief description of property leased: Various Request a Lease with an Option to Purchase once development requirements are met? Ell YES (>fl NO )Requested term for ln�tial Lease or Renewal (based on Term Table, not to exceed 45 years)- 45 years Requested t rm for Lease Extension (based on Term Table, not to exceed a total of 45 YearsY r♦ted Starting Date: 7/01/2025 RZECIIIE'l,VED e 7o you plan to construct new or additional improvements? (if Yes, answer next five questions) t. Will the improvement change or alter the use under an existing lease? . What is the proposed use of the improvement? I What is the estimated value of the improvement? 4. What is the nature and type of improvement? 5. What are the dates construction is estimated to commence and be completed? (generally, construction must be completed within two years) Estimated Start Date: Estimated Completion Dati _. Aeronautical operations & storage localHow does the proposed lease support a thriving business, residential, recreational, or cultural community? Helps to support the community by supporting «.. PRIME IMIR !I FOR I ! ill M. MIIiIIII Renewal of an Existing Lease (at least one year of terra remaining); requires new development. Lease Terra based on: Estimated cost of new improvements and purchase price (optional) 5 Renewal of an Expiring Lease (less than one year of terra remaining): Does not require new development. Lease Terra based orr: F purchase price x Professional Estimate of Remaining Useful Life Fair Market Value appraisal and/or 7 Estimated cost of new improvements (optional) Requested Term for Renewal used on 'Term Table, riot to exceed 45 Years: 45 years applicationSubmitting an application for a lease does not give the applicant a right to lease or use the land requested in the application. The application shall expire twelve (12) months after the date the Y �ease, unless the City Council for extension✓ period not to exceeds The City has M obligation amend, renew or extend a lease and may decline to do so upon making specific findings as to why a lease renewal, extension or amendryient is not in the best inteliest of the City Print Name: or City Use Only: I General Fund 0 Airport Fund Account 0 Airport Reserve Land Dat �P Application plVF�yA�� Received, ,'iC �,i � r Date MIII Application IDetermined erI� Complete: City Council 30-Day Notice Publication Date: 5351 0 VECO AVE CIVIL — STRuc"rURAL- ENVIRONMENTAL 17,M-10SULTONG April 30, 2025 Rob Marsters Schilling Rentals Re: Lot 3, Block 2 GAA Sub No. 1 Amended — 155 Granite Point Court — Building Inspection Mr. Marsters, Larson Engineering & Design, P.C. has inspected the structures located at 155 Granite Point Court property, within the Kenai Airport land leases. The existing buildings have been recently re -roofed and sided within the last 10 years. I did not see signs of structural material degradation while onsite. In my professional opinion, if the buildings have proper maintenance, the remaining useful life will exceed 45 years. Sincerely, e/o ," Signature: Blake W. Larson, P.E. I-Apsor,4 ENOINKERING & Omstam - 535 1 0 VEC13 AVEW KENAI, AK 996 1 1 PH: (907) 283-1 SC35