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1991-02-27 P&Z Minutes
RENAI PLANNING & ZONING COMMISSION ****February 27, 1991**** City Hall Council Chambers AGENDA 1. ROLL CALL 2. APPROVAL OF AGENDA 3. APPROVAL OF MINUTES - January 23, 1991 4. PERSONS PRESENT SCHEDULED TO BE HEARD 5. PLANNING 6. NEW BUSINESS a. Land Required for Public Purpose ~ b. Lot 9, Block 2, F.B.O. Subdivision Request to Purchase c. Lease Application - Alaska Industrial Development and Export Authority - Lot 6 BL 2 Fidalgo Commercial Center 7. OLD BUSINESS a. Comp Plan - Economic Trends 8. REPORTS a. City Council b. Borough Planning c. City Administration 9. PERSONS PRESENT NOT SCHEDULED 10. INFORMATION ITEMS a. Kenai City Council Agenda - February 20, 1991 b. American Planning Association Training Seminar c. KPB Planning Commission Agenda - February 11, 1991 11. COMMISSION COMMENTS & OUESTION3 ~ 12. ADJOURNMENT RENAI PLANNING & ZONING COMMISSION January 23, 1991 City Hall Council Chambers Phil Bryson, Chairman i 3. ROLL CALL Present: Bryson, Murphy, Scott, Bannock, Glick, Rehm, Graveley, Smalley 2. APPROVAL OF AGENDA MOTION AND VOTE: Commissioner Rehm moved for approval. Commissioner Murphy seconded. Passed by Unanimous Consent 3. APPROVAL OF MINUTES - January 9, 1991 Commissioner Graveley noted that he had attended the previous meeting, although his name did not appear as being present. Planning Secretary Harvey made note to add Commissioner Graveley's name to the minutes. MOTION AND VOTE: Commissioner Scott moved for approval of the minutes as corrected, seconded by Commissioner Bannock. Passed by Unanimous } Consent. 5. PLANNING a. Res. PZ 91-2: Rezone Portions of Sections 32 & 33, T6N, R11W, S.M. AK City Engineer Jack La Shot explained that the area proposed for rezone was airport lands. It was the intent of the Planning Department to change some of the zoning in this area in conjunction with the Comprehensive Plan. Chairman Bryson asked if the zone which was shown as RRl was correctly shown. La Shot said he would research that section to make sure zoning shown was accurate. Commissioner Murphy asked how much acreage was involved in the rezone. La Shot answered 160 acres. A Public Hearing Notice had been sent to surrounding property owners and also published in the paper. MOTION AND ..VOTE: .Commissioner Graveley moved for approval of Resolution 91-4: Rezone Portions of 32 & 33, T6N, R11W, S.M. AK. Graveley seconded. Passed unanimously. 6. NEW BUSINESS a. Assignment of Lease - Lot 2, Block 2, General Aviation Apron Lot 2, Block 4, General Aviation Apron Kim Howard, Administrative Assistant for the City reported that this was just a matter of one partner assigning his lease to the other partner. MOTION AND VOTE: Commissioner Glick moved for approval. Commissioner Graveley seconded. Passed unanimously. 7. OLD BUSINESS a. Comp Plan - Land Use La Shot asked that-this item be discussed in a work session after the meeting. 8. REPORTS a. City Council Councilman Smalley noted the enclosed agenda and explained that there was some concern about Ordinance No. 1412-91 -Increasing Estimated Revenues and Appropriations by $426,250 in the New Capital Project Fund Entitled, "Trading Bay and Granite Point Improvements". The funding had been received before to finish this portion of the road system and Council was concerned that other roads were in need of work before this section was completed. Smalley also reported that Mayor Williams had been in Juneau to get support for the Congregate Housing Project. b. Borough Planning None c. City Administration None rage 3 9. PERSONS PRESENT NOT SCHEDULED '~ 10. INFORMATION ITEMS a. City Council Agenda - January 16, 1991 b. KPB Planning Commission Agenda - January 7, 1991 11. COMMISSION COMMENTS & QUESTIONS Commissioner Bannock asked for an excused absence from the next meeting. So noted. ,Commissioner Scott wished to thank the City of Kenai for the new street light on the corner of Dolchok and Beaver Loop. She said it would enhance the safety factor for the school children in that area. Councilman Smalley said he had talked to Rick Ross, Police Chief about the speed limit on Access Bridge Road, approaching the City of Kenai. A movement is currently underway to establish speed limits in this area. 12. ADJOURNMENT There being no further business the meeting was adjourned. Respectfully submitted, Loretta Harve Transcribing Secretary 1791-1991 CITY OF KENAI „O~l G'd~~.l a f~ ,q~u.,~„ 210 FIDALGO KENAI, ALASKA 99611 TELEPHONE 283-7535 FAX 907-283-3014 MEMORANDUM TO: Kenai Parks and Recreation Commission Kenai Planning and Zoning Commission I/ FROM: Kim Howard, Administrative Assistant DATE: February 7, 1991 RE: Land Required for Public Purpose Recently, the Parks and Recreation and Planning and Zoning Commissions reviewed a list of parcels which were proposed to be sold in an upcoming land sale. Both Commissions determined that five acres (from the first parcel on the list which contained 77 acres) be retained for public purpose. It has since come to my attention that the City obtained a parcel of property, of approximately the same size and location, through foreclosure. The City Administration brought to the City Council's attention that the property shown on the attached map could be retained rather than the five acres selected by the Commissions, thereby allowing the 77 acre parcel to be included in the sale. Council unanimously voted to pass Ordinance 1414-91 finding that all the foreclosed properties on the list were not needed for public purpose and may be sold. KMC 22.05.050 says if shall be determined by use. Do the Parks and Zoning Commission wish 2 for a future park? Ordinance for the City land is to be retained for a public use it ordinance which shall contain the public Recreation Commission and the Planning and to retain Tract A, Mommsen's Addition No. If so, the Administration will prepare an Council's approval. /kh e. o. B. toga 3 4 2 JOHN NENORICRSON 1 ISO N SCALE 1"• 100' TRACT ~IAI' MOMMSENIS ADDITION N0.2 A PLAT OF A REVERSION TO ACREAGE OF A PORTION OF MOMMSEN'S ADDITION N0.2, WITHIN THE SE I/4 SEC. 25 , T6N, R12W, OF S. M. MO MN $EN~:+ ADDITION N0. Z wfsr BD~ h In O TOTAL ACRES 4.242 W ; rRACr "a ° a o a o H ~ 3. 857 ACRES EA DONALD B CAROLYNN NICKEL 3 2 W °o O Q ti M .SI~i ~!c ~" )~ J _70~ EASEMENT- VACATED BY iN15 PLAT. CERTIFICATE OF OWNERSHIP AND OFDICATION r WE HEREBY CERTIFY iNAT WE ARE 7HE OWNERS OF TNf 1RACT OF LAND SHOWN ANO DESCRIBED HEREON, 7NAT WE ADOPT THIS PLAN OF SUBDIVISION WIIN OUR FREE CONSENT, AND 00 HEREBY DEOI LAiE 70 PUBLIC USE, ANO 7NE USE OF PUBLIC U7IL ITIE9, iME $TRE[15 ANO EASFM ENiS SHOWN. OWNER B.O.B. CORPORATION BY ' I 21! EAST FIREWEED LANE ANCHORAGE, ALASKA 99507 TITLE B.O.B. CORP, NOTARY ~S ACR NOWLEDGENENi SWORN ANO SUBSCR~B ED i0 BEFORE ME, A NOTARY IUBLIC, i HI$ pAY Of , 19 NOTAgY NY COMMISSION EXPIRCS COVENANTr All OF THE LOTS IN 7H15 SUBOIVI$ION SNAIL BE SUBJECT f FOR INPROVEMENiS REQUIRED BY ORDINANCE OF 7NE CITY 0 WN EN INS~ALLEO BY 7NE CITY OF RENA1. W 11`!CE 60~ I' l00~ I!0 B 1/A COR ~ I _O__IO BOA ~~ __ l40~ _ WEST I sfc. n I ST. NW (REDOUBT BLVD. 1 S.E. 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'.~ ~ y1D1~\~ ,. f ~ '' -13 ~ v ., ~~ ~ ~ ~ I ., :~. 1 0 I ~ : r- ~ - • t---, . -- _.- - . ~ ~a ~ a ~ ~ ~ , :~ ~7 , ~ .5 ~ 3 .•. •.. ,_lU.`J __.IJQ_ L llli ~ _. n :I,a ~.. _._ 1NL.._J .I:•/ 1_ ..atl ~ .. • c, ,i.nr ~, 6 1791-1991 CITY OF KENAI __ 210 FIDALGO KENAI, ALASKA 99611 TELEPHONE 263-7535 FAX 907-283-3014 MEMORANDUM TO: Kenai Planning & Zoning Commission FROM: Kim Howard, Administrative Assistant DATE: February 14, 1991 FOR: February 27, 1991 meeting - RE: Lot 9, Block 2, F.B.O. Subdivision Request to Purchase I have received a request asking that the referenced property be made available for sale by competitive bid. Attached are a map depicting the area and a plat map. KMC 22.05.010 states "Disposal or sale of lands shall be made only when, in the judgment of the City Council, such lands are not required for public purpose." It is the City Administration's recommendation that the property be sold pursuant to KMC 22.05.075. Does the Planning and Zoning Commission recommend to the City Council the property be sold or retained for a public purpose /kh cc: Bernie Kline Attachments SALES\P&Z.MEM . O= . ;,; ~ } P ,.. ,' ~Q- ~ O 'v Pte` . ev 1 y r`ra ~~a v ~ ~" ~ .. .. 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U oc ~ W Q _ F J I _•~ < < Ol </7 ~ v U h N ]_ 00 0> ~ N C7 ~- ~ ca Z _o cn N O Z Q. ~ F ~~ ~ ~ a 1 . 1,,., o n_ CJ ~- °~ OI \ U = v-1 n --, n-: 1_ rJ 1~ V ~1 >- ~~ 11' .. ve 'n o I~ ~ m yl ~ to O '~ ~ W r K `L w ~ mo~< O °"'"'d O ~~mo w a~ °~vo fY OF rc?xln r __l ~;~ /m o' m P~ `'~ Q i; ~ o~. ~ Oh 4. ~ Q o° ~ ~ .~ a ~ y \ ~G~ ~/ rig \ ~ O ~ .~ u ~p m \ ~ y V t -O `oE» _ ~^ ~5 ° c° a M~fS' ~G \ ~ ` •p ~ ~ Oj~O 3 / ~~ ~ - ~ o \ 0~ r~l \ fir o\/ ~ q ~ O a ,. ~ ~f~1 \ ~ ~ ~ aD ~ ~ v - - a 4. ~ a = \ ` _ z ~ ~ e ~ i ~ c ~ ~ ° - w - - J \ . fff~ S: ~~~~tr ~ ~ V E E o O © O \ 11t\\~«~i. ~ _f (A _ .-o. c ~-c 1791-1991 CITY OF KENA~ ~.., "del G~dfu'~ a~ ~l~i~ „ __ 210 FIDALGO KENAI, ALASKA 99611 TELEPHONE 283-7535 FAX 907-283-3014 MEMORANDUM TO: Kenai Planning and Zoning Commission _I~ FROM: Kim Howard, Administrative Assistant DATE: February 21, 1991 FOR: February 27, 1991, Meeting RE: Application for Lease Lot 6, Block 2, Fidalqo Commercial Center Subdivision Attached is a copy of a lease application submitted by Alaska Industrial Development and Export Authority (AIDEA) for the referenced property. Also attached is a map depicting the lot. The appropriate good faith deposit and filing fee have been received. The site was formerly occupied by Redoubt Realty. The land lease was terminated by Court Order and the property has been returned to the possession of the City. The building is now owned by AIDEA and they are requesting to lease the land. Their intention is to sell the building and later assign the land lease to the buyer. This property is Airport Lands and the appraisal must be reviewed by the Federal Aviation Administration. KMC 21.10.030 (5) states the intended use must comply with the zoning ordinance and comprehensive plan of the City. Does the Planning and Zoning Commission recommend approval of this lease application? I will be unable to attend the Planning and Zoning meeting on February 27. If you have any questions regarding this matter please contact me at 283-7530 prior to that date. /kh cc: Alaska Industrial Development & Export Authority FCR CSTY USE oNL,Y ., . DatQ RecQit~ed ~CLZL~ CITY OF KENAI ~ a• ~~~ux~ c, P.O. BOX 580 - KENAI, ALASKA -PHONE 283-7535 Igilattl.Y1@ 8nd tlt.le .,.._ LEASE APPLICATION Name of A pp licant Alaska Industrial Development and Export Authoritq Addr ess 480 W. Tudor Road, Anchorage, Alaska 99503-6690 Business Name and Address same Kenai Peninsula Borough Sales Tax No. N/A (if applicable) State Business License No. N/A (if applicable) Telephone (907) 561-8050 Lot Description Lot 6, Block 2, Fidalgo Commercial Center S/D Desired Length of Lease 10 years Property to be used for Commercial Property/Office Use Description of Developments (type, construction, size, etc.) Metal framed building, concrete below frostline, 2880 interior square footage Attach development plan to scale (1" 50'), showing all buildings planned. Time ,Schedule for Proposed Development: Beginning Date Proposed Completion Date Completed approximately - 1978 Estimated Value of Construction $ N/A Date: January 7, 1991 Date: Si ned:` \~ - JoAnn Wixon Signed: J 1 • • ~ '~ ~ CITY OF KENAI CHECK LIST FOR SITE PLANS ALL ITEMS MUST BE COMPLETED BEFORE APPLICATION CAN BE ACCEPTED Drawings should be drawn to scale 1"- 50 ft.*, and must show layout of the lot applied for and the location of all improve- ments proposed. (~ Drawings must show: ~ /~-~' 1. Existin buildin s ~Q.c~~~~ 9 g 2. Proposed buildings 3. Parking facilities (how many spaces and where located) 4. Site improvements a. Areas to be cleared and method of disposal b. Proposed gravel or paved areas c. Landscaping plan (retention of natural vegetation and/or proposed planting areas) 1 5. Building set backs 6. Drainage plan and method of snow removal 7. Circulation plan (all entrances, exits and on-site access) 8. Location of sign(s) - sign permit required 9. Fencing 10. Curb cuts (where applicable) 11. Building height 12. Buildings on or near the airport on airport lands must complete FAA Form 7460-1 *This does not have to be drawn by an architect or engineer. 2 BUILDING INFORMATION On this sheet submit a drawing of building planned, drawn to scale. Scale: 1" ft. Construction Materials (wood frame, steel building, etc.) THIS DRAWING SHOULD BE AS COMPLETE AS POSSIBLE See attached pre-construction description Note: If a prepared drawing is submitted, attach to this application and disregard this page, filling in construction materials only. ~, 3 . ,. y~ Lot 6 Block 2 Description of Property ~ Fidalgo Commercial Center S/D CONDITIONS OF ACCEPTANCE (To be completed by the City) Annual rent rate or cost ~ ~ ~ ~~~j_ /~G~2~~~~ Zoned for ~(~- Permits required ~,~;~;~~~ ,ti~~,_j ~_, ie~ _~-. ~ ~~ _ _~ y' ,. v v Assessments Insurance required '~ ~~,~-~z-~ Construction must begin by ~~~- Completion date for major construction /(~~j~-- THIS APPLICATION WILL BE MADE A PART OF THE LEASE Planning Commission Approval: BY~ , Date of Approval Chairman City Council Approval: BY~ , Date of Approval City Clerk 4 .;"7 .. .,-,:1e proposed building is to be a Soule' Mainstreer_er r_~eta1 rigid frame. Concrete (below frost line). r:~:~_ox ~•fetal frame walls , prefinished metal exterior finish. Stone facing will be used as accent. Thy roof will be lo~v pitch gable with a metal roof covering. 'ERiOx FINISH A i" thick foil"skinkraft" insulation will be in the walls, 4" thick in the roof. The interior walls will be primarily taped and textured drywall. The ceilings will be SuST~eP_ded acoustic tile. Floors will be carpet over a concrete slab on grade. ~G ~JS AND DOOP.S All windows ~vil1 b2 double pane insulated glass. The entry w;ll ~~ave double glass doors in metal frames. `1:he interior doors will be pre-finished flush hollow core. n ~' n :i~ .~•,7 '"N:o restroons will contain 3 fixtures each. Hook-up will be ~,ade to city water and secaer. `~ I_~G ?~ieatino will be providad by a gas fired hot wat:~:c bo_~ler, i:~s~board convectors. The boiler will be located iii :h~~ :.iechar_ical room. (See floor plan) PItiG All wiring will be in accordance to code with sup=ficient o~:_ iets. ~,T•I ~~T'1n ----=-" _" ili.)"~!?jC2nt fixtures wi.l1 be T1otlTl`~d in the=' suspended 10 i } ,~b f •ti 6~ s: f' F: !~ ,~ ,;1 ;. ., . j~ . ;i .i: .. :I ,i , ~~ . I• ,1 ~. ~; BliII,DING ELEVATIQN ;~ ~J ~~ H z O w _ ~~ ~_~-~ Q ~ H . cn e i u '° ,. ~, fi~ e t a 3 i i i DESCi.IPTIOV~ OF PROPOSED BUILDING (Cont. j :a:._hJ: .:, A cFdar faced marquee will extend the full length of the bu:i.~ldi ng . ~. concrete sidewalk will extend across the front of the I', ouildinj. j i'i~,~~L u~L'ILDING AREA 43' x 60' = 2,830 sq, ft. ~I k ;~ :r ~~ Y ''~ 1 1 ~~ •~ I ,I 1 ', is ~; . ~: ~' is ;~ ;:. . ;, ,: . ~~~ •"`• - y moo" -~~ _ _ ~,`~` ,~~,,, ,~.: >:~, J~ J ~ ~ '.. ~ •, \` ~ ~i. ~'j t. Sp~FFl 'fib .` ~ ~ ~ \`\ '. ~,~ ,~~ ~ , ; ~ ~tii~ ~ ,~. ~k ~ ' ~~L } Asti. yKT ~~ ~~wn rF~ ` T~; :~ •,~ ~~~~w^ ~ _ `~Yx ~~ ~ § .~• y~r'fY`~'#%~~'t r;, ~yjk&~`;~Yqt r~ *~ ~; .. ~ ~ F 2 ~ /2 ' ,: ~ `~ ~......'. ••,,.;,.'.. ~ . ;.. ~ r4.N IM.''~ r ~'7d 1 ,~i~" `j:.u '`3~i,. ~ ~.R: K~, .:• ,,J `is 7K ~~ •Y'~~ ~ ~ /O r ~ ' R .R a < w •t` ~ ~i z~,t ~a. ~ '~'~ ~ tl~ ~~~rrsx ~ ~ ` "~`',~ ~ , r~ '~/~ /~ ~6~-t~ '~ y~!S ~•'4~e '~~ n ar S y a~ A ~ •' ~;2'f :1E~ Z~ rr "} ~tY,~$ ~: J ~ r~4 • :c'h ,`1~ ~ ~ ti '~~i:~ ~4r . 5,.., 1 ~ '. ~::~~~ . {~Y '5rrki~ ~ M ~ v ~ i1y~ ~ , , ~ pF. 4 ~ ' .. new' •':' 'e :..~ '4 ~'~.~~ ~''~ ~~ jf~~ ~ , ~ r, ,',y~F+~r r:' '!C s ,,r~`!RT V { .~.~r ~ l;r rl •tt ~l_t. ~•.~.: Q'~Y~,:'.-.., /O~' i%t, ~~ ~ .•J~'1h. r „ ~". i~Y~t '+,: '~' Z •h.~` + a rye! L` :. ,'~ Q 'Y~ G ~::,. . .e~. r.. .y G yy '{//~ ,f .Y... p ~.,~',~r e BOO ~ - ~ ~ r,,~r /::~ 1:' j ~ ' ,S.i ~'. rf ., t k o~ mad ,, 6 ~,:: ~ ` ~ ~ (~~ r9 ~ 4 '• ~ ,~ ~ . ~ ~ + n ,~,,. ~,~ ~~ ~ off' ~ ~.~~o ~~~y4 ~~~ ..ch ..... cT q" - . ., .. . R ~` ~ 4 ... ... ~~~ B . Between 1985 and 1987 Alaska weathered one of the State's worst recessions. Nearly 1 10 jobs disappeared from the Alaska economy. (These numbers don't reflect the total job loss during those months because it excludes losses among the self- employed.) Social and economic grief endured by Alaskans during these recessionary months included wage cuts, personal bank- ruptcies, business failures, and bank closures. in The Kenai-Soldotna area's economy was the hardest hit on the Peninsula during the recession - almost 1,100 jobs were lost - and it has also been the slowest to recover. An excess of residential and commercial real estate remains on the market although there are signs that this sector is beginning to show activity. A rebound in the fishing industry, a stabilized oil industry, good tourism seasons, and a healthy public sector is lifting the area's economy out of its 1987 low point. BY 1988 Alaska's economy posted its first employment gain in two years. The economy seemed to be heading in a positive direction, when on March 24, 1989 the Exxon Valdez ran aground on Bligh Reef in Prince William Sound. The resulting oil spill cleanup effort continued to push up employment figures, but a close look shows that Alaska's economic indicators ECONOMIC TRENDS 10 w. 3 r were rebounding prior to this spill. Kenai's employment also began to grow again in 1988 and continued on this path in 1989-albiet slower than the remainder of the Peninsula. The Central Peninsula got a boost from. the oil spill, but it was not nearly as large as in the Peninsula's other communities. Traditionally primary stimulus to economic growth in the Kenai-Soldotna region has been continuing development of the Kenai-Cook Inlet oil and gas fields and of the North Kenai industrial complex. This complex now includes the Chevron refinery, Union Carbon and Chemical ammonia-urea plant, the Phillips-Marathon LNG plant and the Tesoro refinery. Two exceptional salmon seasons made the fishing industry an important factor in the recovery of local economies. The 1988 Cook Inlet salmon season enjoyed record salmon prices combined with a near record harvest. In spite of the oil spill, 1989 was an above average year for salmon prices and harvest also. However, while many beach setnetters enjoyed a record year, 1989 was a frustrating year for the driftnet fishing fleet. The oil spill pre- vented many of them from putting their nets into the water. In addition to good salmon runs, bottomfishing activity has grown steadily during the past four years, helping to offset the declines which continue in the shellfish fishery. In 1985 the City of Kenai completed the Kenai Boating Facility which has greatly enhanced both recreational and commercial fishing efforts locally, Tourism is another industry which has seen steady growth throughout the 1980's and is targeted to become a major economic factor in the 1990's. Such projects as the Kenai Bicentennial Visitor and Cultural Center and Kenai Flats Wildlife Viewing Area .Boardwalk which are scheduled for completion in 1991/92, will enhance the City of Kenai's future in this expanding industry. Strong growth has continued in the support sector activities, especially the trade and services sectors, plus local government and construction. Table 1 shows annual employment by industry for the years 1980, 1985 and 1989. The growth in the number of jobs in the trade and service sectors is a sign of maturation in the region's internal economy. It suggests that more goods and services are steadily being supplied by local businesses. Also, during the early 1980's, the State of Alaska's expenditures for capital improvements, for transfer payments to local governments and for State-subsidized loans for home mortgages and business development, gave substantial impetus to construction of residential, business and community improvements. Now, as state expenditures are in decline, this stimulus to the local economy is being significantly reduced. li ' Table 1 Employment by Sector, 1980-1989 Kenai-Soldotna Area 1980 1985 1989 Mining (inc. Oil & Gas) 733 735 677 Construction Manufacturing/Processing 514 10 1029 413 Transportation, Communications 24 458 1068 949 & Utilities 602 442 Trade 911 1823 1537 Finance, Insurance & Real Est. 155 263 168 Services & Miscellaneous 688 1151 Government 1604 (Federal) 1154 1802 2019 (State) ~ 76 107 133 (Local) 323 561 569 755 1134 1317 Total 6791 10382 gg28 Source: Alaska Department of Labor, Research, and Analysis Section. 12 Growth Forecasts by Sector No one sector of the economy is expected to .see significant growth or decline during the next five years. After the rapid growth of the early 1980's and the recession of 1986-87, the region is in a period of consolidation, with much slower, but steady growth. Discussed below is a breakdown of economic trends by sector. Oil and Gas: Kenai-Cook Inlet oil field production peaked in 1970. Consistent with these production trends, Kenai-Cook Inlet labor area employment in oil and gas extraction activities shrunk from 10.60 in 1980. Tesoro's petroleum refinery, completed a $95 million expansion program to produce up to 78,000 barrels of petroleum fuels daily in 1986. This refinery has come to depend mainly on North Slope crude oil for its feedstock, as does the smaller (18,000 barrels daily) Chevron refinery. The North-Kenai petrochemical plants and products (LNG, ammonia-urea fertilizers) were originally developed for export markets. These industrial plants and other industrial uses absorb nearly three-fourths of Cook Inlet natural gas production. Future growth in gas production depends primarily on new railbelt gas demand-for power generation and spaceheating, but these uses now account for only about one-fourth of the region's gas consumption. Furthermore, the Alaska Department of Natural Resources' current projections for railbelt gas demand forecasts moderate growth for spaceheating and power generation use, even without the Susitna dam project, and with no change in industrial demand. The Kenai-Cook Inlet province is generally, thought to hold natural gas potential well in excess of proven reserves. In recent years there has .been a renewed interest in these reserves, especially by Pacific Rim nations. Efforts are currently underway to begin exploratory drilling to study the feasibility of developing additional LNG facilities in this region. North Slope employment is important for a sizable number of local residents. Commercial Fishing and Seafood Commercial salmon fishing has long been an important part of the Kenai economy and has taken on added importance in the past three years for two reasons. First, the downturn in oil production in Alaska has placed a greater emphasis on other sectors of the economy, such as commercial fishing and tourism. Secondly, a combination of management and environmental factors have produced healthy fish stocks, resulting in record catches and record gross values. 13 Recognizing that commercial fishing is an important part of its economy, the city of Kenai has been searching for ways to assist the continued development of this industry, such as the development of dock and other support facilities at the port of Kenai.*Central Kenai Peninsula Commercial Fishinct Study - D. Douglas Coughenower 1989 Trade and Services: *This sector grew dramatically from 28% of the region's employment in 1980, to 40% in 1990 - representing nearly half of the jobs added during the period (see Table 1). This growth trend was broad- based, but food and lodging services, building materials supply, home furnishings, retail food stores and automotive services prospered especially well according to Department of Labor employment data. It is worth noting that some of these businesses (building materials supply, home furnishings) cater heavily to new population growth or to highway-oriented visitors (food and lodging services, automotive services) and depend upon growth to sustain their prosperity. Recreation and Tourism: Employment in the visitor industry accounted for 8% of all private sector employment during the mid 1980's. Historically, June and July account for one half of visitor volume. The study, "The Impact of Tourism on the Kenai Peninsula" which was completed in 1985, found that Soldotna and the Kenai-North Kenai areas are about equally popular as recreational destinations for Anchorage residents. Businesses benefitting most from the visitor industry were hotels/motels, food service, transportation, recreation services, food, gift, and other retail stores, and auto service. The study also found that the Peninsula has low recognition as a tourist destination for non-resident travelers, suggesting a marketing strategy to broaden summer and winter tourism. The halibut fishery at Kenai is reportedly as good as at Homer, but Kenai is much closer for Anchorage resi- dents. Recreational boating improvements, coupled with a tourism campaign, could make Kenai much more competitive for this recreational fishing market. Government: State petroleum production revenues are in decline since 1982, reducing transfer payments to local governments, home-mortgage subsidies, etc. This has forced higher local property tax rates, depressed housing markets, etc. Local government, which now accounts for *26% of local employment, grew steadily to deliver basic public services and facilities. In 1990 there were 1,317 local government employees an increase of 74% from 1980. 14 Federal government increased by approximately the same percentage (75)~over the decade. The FAA Flight Service Station, Tower and SFO, contributed greatly to the local increase, employing approximately 63 personnel at the Kenai Airport and sur- rounding facilities. Construction: Construction activity was very strong in the Kenai-Soldotna region from 1980 to 1984, reaching its highest peak in 1985, 1,068 employees (annual average). Due to lack of demands for increases in local housing, this sector has been in a steady decline, reaching a low of 401 employees (annual average) in 1988-89. Typically, residential and com mercial construction over- responds to demand and saturates the market. When growth finally slows, the construction industry and related businesses (i.e., materials supply, home furnishings, transportation) stall until supply and demand are restored to balance. In a relatively small but growing region such as the Central Peninsula, the construction industry is especially prone to this boom-bust cycle and tends to exaggerate fluctuations in the business cycle. Recent data on real estate and construction activity suggest that the construction industry has been on the downside of its current boom-bust cycle. Several large construction projects are scheduled for the early 1990's, which could have an effect on turning this cycle around. Unembloyment & Seasonality Despite rapid growth in total employment over the past decade, the Kenai Peninsula Borough (KPB) has experienced a persistently high overall unemployment rate. The average annual unemploy- ment rate for the KPB in 1982 was 15.20•°s and 9.300 in 1989. The Statewide unemployment rate for the same period was 9.20% for 1982 and 6.70% in 1990. The KPB. region experiences wide seasonal swings in total employment and unemployment rates. These unemployment patterns are partly attributable to construction cycles and partly due to seasonal industries. The unemployed appear to be seasonal workers who came to the community during booms, and stayed after projects were completed. For the future, continued growth and diversification in the region's economy should help moderate the impact of any large-scale projects on the region's growth cycle. Communities will become more able to absorb individual projects and less prone to extreme fluctuations in the pace of growth. Other unemployed are people employed in seasonal indust- ries - commercial fishing and processing, construction and 15 tourism. For these indust- ries, access to a large temporary labor pool is essential. Although it produces unemployment, this elasticity in the region's labor pool is fortunate, inasmuch as the labor needs of these important seasonal industries are supplied with penalizing the region without even higher offseason unem- ployment, or the need to provide for the service and facility needs of a larger .population to permanent residents. Seasonal unemployment will continue until off-season employment opportunities are created for the permanent resident workforce. Annual Growth Rate For the planning period to the year 2000, the Comprehensive Plan projects an annual average rate of employment and population growth of 2.5%. This forecast is below the rate that has prevailed over the past two decades, but still above the expected national average growth rate. As explained in the preceding analysis of economic trends, the basic rationale for this diminished growth rate is that the fundamental economic forces that have sustained the region's growth during that period now appear to have fulfilled their growth potential. This rationale is supported by economic and demographic indicators for the first half of 1985. A variety of indicators - retail sales, new housing authorizations, school enrollment trends, employment data, visitor industry activity - consistently show a slackening rate of recent growth. The average 2.5% per year growth rate anticipates annual fluctuations above and below this rate. Kenai's Share of Regional Growth According to the 1990 Dicennial Census data over 50% of the Kenai•Peninsula Borough population resides in the Soldotna/Kenai area. In 1982, Kenai's population of 5231 comprised 26.3% of the Kenai/Soldotna region's total population of 1986. By 1984, the city's share dropped to 25.1%. The Comprehensive Plan population forecast assumes that Kenai will continue to "capture" about 25% of the growth projected for the larger economic region. Its actual capture rate will depend in part upon the kind of housing offered in the city, the desirability of neighborhoods served by city water and sewer, the cost of land, lifestyle preferences, and other factors. 16 Projected Population Table 2 provides a forecast of Kenai's share of the region's population. The city is expected to grow to about 8,000 people by the year 2000, an increase of about 50$ over the. 1984 population of 6176. 17 ~~ Table 2 Population for the City of Kenai Kenai Borouah Percentage of Borough 1981 4,558 26,520 .17 1982. 5,231 32,303 .16 1983 5,721 35,769 .16 1984 6,173 38,919 .16 1985 6,434 39,180 .16 1986 6,546 43,612 .15 1987 6,546 43,612 .15 1988 6,546 43,612 .15 1989 6,543 40,312 .16 1990 6,314* 40,632* .16 *Based on 1990 Decennial Census, Postcensus Local Review According to the 1990 Census over half of the Borough's population resides in the Kenai/Soldotna area (approximately 21,000 residents). Kenai's population remained fairly consistant during the 1980s 'and should remain steady if there are no changes in the following indicators:** o No change in market outlet for energy commodities, i.e., crude oil, natural gas, and coal. o Drop in State revenues and expenditures. o Slowing growth in Anchorage region population and purchasing power. o Maintain current industrial employment base in oil and gas extraction (including out-of-region employment), commercial fishing and seafood processing, and petrochemical manufacturing. o Support sector (trade and service, construction, transportation/communications/public utilities, local government, F.I.R.E.) maintains current share of total employment, except trade and service sectors benefit from expansion of the visitor industry. 18 D. ADMINISTRATIVE ECONOMIC DEVELOPMENT STRATEGIES The City of Kenai has promoted economic development through the disposal of land. There are two types of land systems, general fund lands and airport Federal lands. The Federal Aviation Administration (FAA) requires revenues from the airport land system be used for the support of the airport and further improvement of airport lands. Within the two systems, lands are leased and sold. The City has taken an active role in making land available for lease and sale. One of the most recent lease approved by the City includes a 99 year lease on a 24 acre site, for a proposed mall. Lessees are encouraged to purchase their leased land as outlined in the Kenai Municipal Code. Recent leases also include property for an R/V park, a car dealership, and a machine shop with approximately 40 employees. When the FAA decided to decommission flight service stations around the State, the City of Kenai submitted a proposal for an automated flight service station to be located in Kenai. In 1983 a $1.00 per year lease with the FAA was entered into for the flight service station location. It currently has 24 permanent employees. It is expected that as more of the flight service stations in Alaska are decommissioned, 70- 80 full time employees will be working at the Kenai station. Because the flight service sector station is located in Kenai, the FAA maintenance sector field office chose to relocate here from Anchorage. It currently has 25 full time employees. The Kenai Control Tower also has eight employees. In 1984, Homer Electric Association (HEA) was looking for a site for a new district office for the Central Kenai Peninsula. The City of Kenai provided ten acres of prime industrial land to HEA at no cost. The FAA agreed to the City's request to trade this aiport real estate for other real estate the City owned. HEA employs approximately 50 personnel. In 1984, the Kenai Visitor's and Convention Bureau was created. It later became the Kenai Bicentennial Visitor's and Convention Bureau (KBV&CB). It's purpose is to promote tourism in the City of Kenai with a focus on Kenai's Bicentennial celebration in 1991. As a result of the efforts of the City of Kenai and the KBV&CB, a matching grant in the amount of $800,000 was received for the construction of the Kenai Bicentennial Visitors and Convention Center. Construc- tion, on airport lands, will begin in 1991. Other City facilities, on airport lands, that have encouraged economic stability are the Kenai Senior Citizens' Center, the Library. Public Safety Building, ballfields 19 and parks, and the float plane facility at the airport. The City has also dedicated airport lands to be used for the construction of a congregate housing facility adjacent to the Senior Citizens' Center, approxi- mately 40 acres for an indoor fire training facility and helicopter cold water recovery school, and ten acres for educational use. The City of Kenai has been successful in encouraging new enterprises within the city and in increasing the economic stability of the city of Kenai by providing jobs for local residents. 20 D. ECONOMIC. DEVELOPMENT STRATEGIES Kenai has been successful in marketing the community for new economic ventures by making parcels available for development within its Airport Lease Lands. The city has also prospered as part of the economic growth in the region. economic assets and by consensus on the types of economic development most suitable to the community. 1. Promote a positive climate for new business development. The city should: In the future, based on recent a. Prepare a "developer's economic trends and the package" containing economic analysis outlined in Section B it a th appropriate summary , ppears at the cit can no l information from the y onger count "automatic" growth Comprehensive Plan, . Zoning Code, standard The economic prediction and specifications, and other ordinances and ro- indicators foretell a more , p cedures to be followed to moderate (but still healthy) insure a timely and rate of economic growth than the community has become favorable review of accustomed to. development proposals. Of those sources of economic b. Conduct an annual workshop for local home activity that contributed to builders, developers the region's rapid growth. over th , banks, and civic and e past two decades, only the visitor industry a ears business groups to share pp likely to have much growth information on projected housing and commercial impetus. services demand, land Even there, it must be availability, and pending public and private recognized that growth in this development projects. sector is largely dependent on continuing growth in purchas- i c. Maintain a tax strategy ng power and population in that satisfies local the Anchorage region, during a period when Anchora e's th revenue needs without g grow is expected to flatten out. inhibiting economic growth, in anticipation This. forecast suggests that of cutbacks in state and federal revenue sharing. the city will need to develop a more conscious approach to economic development planning. 2. Prepare an economic development strategy and plan Economic planning efforts will targeted on favorable economic opportunities. The City need to be disciplined by a should: realistic appraisal of Kenai's 21 a. Cooperate with the Chamber of Commerce and the Kenai Peninsula Borough, to prepare. an inventory of commercial .and business opportunities with high regional growth potential. Use marketing research findings to encourage expansion of existing businesses and to attract new commerce. b. Promote consolidation and infill of the support sector. Examples of appropriate support sector development include regional health care and dual-use (serving both visitors and residents) commercial and public facilities. These types of support sector growth can solidify the year-round employment base and, in some cases, upgrade the quality of services available locally. c. Continue to support and expand air transportation services. Good air service is crucial for (a) resident access to out-of-region employment i.e., North Slope oilfields and Beluga coal development; (b) promotion of tourism /recreational packages to both the Alaskan and non-Alaskan sector of the visitor market; and (c) the future growth of airport -related industries (i.e., distribution). d. Prepare a port and harbormaster plan to support expansion of commercial and recreational fishing (see also Guideline 23). e. Work directly with managers of basic industry to encourage local training and hiring. Promote resident access to appropriate out-of-region employment in mining (Beluga coal project) and oil and gas operations. 3. Maintain the present policy of putting city-owned land into productive use by the private sector, but only when the public benefit can be well demonstrated. The city should: a. Establish clear economic criteria for release of city land, such as creation of jobs for local residents, expansion of the tax base, and compliance with site plan review requirements for commercial and industrial land. b. Develop a Marathon Road industrial park, served by city utilities and roads, to market sites for transportation -related industries (see fig. 6, Transportation Plan for Road Layout). c. Avoid competition with private sector land sales by requiring that city 22 land be sold or leased at fair market value. d. Establish land management policies for retaining .land in City or other governmental ownership which has high habitat value, but limited building development value, retain other parcels for potential long-term public uses. 4. Enhance the contribution of the recreation/visitor industry to the city's economy. The city should: a. Support the Chamber of Commerce in developing a marketing plan to promote Kenai as a destination for out-of-state visitors. Emphasize development and marketing of "package" tours, providing all necessary transportation, food and lodging, recreational activities, and related services. b. Develop in-city attractions and visitor services to strengthen Kenai and the Kenai Peninsula Borough as a destination. Encourage and support private development of a wider range of visitor services, lodging, etc., in the city and the Central Peninsula. c. Promote state development of campgrounds and other improvements and recreation attractions in the vicinity so that visitors will have adequate, suitable rest and daytime use facilities and overnight camping accommodations. d. Promote year-round visitor activities such as winter festivals and other off-season recreation attractions. 5. Encourage tourism to the historic Original Townsite by careful restoration of historic structures and by working with the tourism industry. The City should: a. Support'National Park Service funding for much needed restoration of the Church of the Assumption. b. Approach oil companies in North Kenai about sponsoring restoration of historic properties in the Original Townsite. A company could "adopt" a structure, restore it, and possibly obtain an investment tax credit. c. Encourage archeological investigations of the Russian Orthodox Compound (perhaps by a program of Kenai Peninsula Community College) as a basis for accurate site restoration of roadways, walkways and fences). d. Work with bus tour companies to determine interest and potential to include the historic townsite facilities on their tours. 23 e. Encourage owners of historic properties to take advantage of low- - interest rate state loans for rehabilitation of historic structures. f. Encourage commercial revitalization of the area by selective public improvements as proposed in the "Kenai Original Townsite Development Options", 1985. g. Develop and implement a signage program for directional, commemor- ative, and historic feature signs, in conjunction with road, park, and building rehabilitation programs. h. See also Guideline 10. 24 /o~ AGENDA A. B. C. RENAI CITY COUNCIL - REGIILAR MEETING ' FEBRIIARY 20, 1991 CALL TO ORDER 1. Pledge of Allegiance 2. Roll Call 3. Agenda Approval 4. Consent Agenda *All items listed with an asterisk (*) are considered to be routine and noncontroversial 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. - SCBEDIILED PIIBLIC COMMENT (10 Minutes) PUBLIC BEARINGS 1. Resolution No. 91-5 - Transferring $4,000 in the General Fund for Communications Department Overtime. 2. Resolution No. 91-6 - Transferring $10,000 in the General Fund for Payment of the Insurance Deductible Relating to a Lawsuit. 3. Ordinance No. 1417-91 - Increasing Estimated Revenues and Appropriations by $26,000 in the General Fund for Lobbying the U.S. Government in Obtaining Funding for Construction of a Helicopter Cold Water Recovery School in Kenai. 4. Ordinance No. 1418-91 - Increasing Estimated Revenues and Appropriations by $25,000 in the Council on Aging, Senior Day Care Fund for Purchase of a Van. 5. Ordinance No. 1419-91 - Amending Kenai Municipal Code 14.20.240, Prohibiting Future Storage of Mobile Homes Within the City of Kenai. 6. Ordinance No. 1420-91 - Increasing Estimated Revenues and Appropriations by $2,221 in the Council on Aging Senior Employment Fund. -1- 7. *1991 Liquor License Renewal - Casino Bar, Beverage Dispensary/Casino Liquor Store, Package Store. 8. *1991~Liquor License Renewal - *a. Pizza Paradisos - Beverage Dispensary *b. Kenai Joe's - Beverage Dispensary *c. Pizza Paradisos - Restaurant/Eating Place *d. Kenai Country Liquor - Package Store *e. Thai House - Restaurant/Eating Place *f. Don Jose's Restaurant and Cantina - Beverage Dispensary. D. COMMISSION/COMMITTEE REPORTS 1. Council on Aging 2. Airport Commission 3. Harbor Commission 4. Library Commission 5. Parks & Recreation Commission 6. Planning & Zoning Commission 7. Miscellaneous Commissions and Committees E. MINIITES 1. *Regular Meeting of February 6, 1991. F. CORRESPONDENCE G• OLD BUSINESS H. NEW BUSINESS 1. Bills to be Paid, Bills to be Ratified 2. Purchase Orders Exceeding $1,000 3. Discussion - Airport Commission Recommendations a. Pay Parking b. Float Plane Basin Regulations/Building Specifications. 4. ,Approval - Contract for Lobbyist Services/Robertson, Monagle & Eastaugh, Inc. 5• Approval - Trading Bay/Granite Point - Installation of Water Main. -2- I. ADMINISTRATION REPORTS 1. Mayor 2. City Manager 3. Attorney 4. City Clerk 5. Finance Director 6. Public Works Director 7. Airport Manager J. DlscussloN 1. Citizens 2. Council R. 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FEBRUARY 11, 1991 TENTATIVE AGENDA AGENDA ITEM A. CALL TO ORDER AGENDA ITEM B. APPROVAL OF REGULAR MEETING AND ADOPTION OF CONSENT AGENDA Consent Agenda 1. Time Extensions -None 2. Plats Granted Administrative Approval Under 20.04.070 a) Hughes Tracts Lots 1 and 2 3. Coastal Management Program Consistency Reviews a) Ridgeway/Alaska Roadbuilders Asphalt Plant Air Quality Permit ADEC #8931-AA005 b) Cook Inlet Pipe Line Oil Spill Contingency Plan ID Number Not Yet Assigned 4. Coastal Management Program Informational Items a) Legislative Bulletin, January 25, 1991 b) Alaska Dept. of Transportation State Transportation Plan Notes AGENDA ITEM C. COMMISSIONERS EXCUSED ABSENCES 1. Leroy Gannaway 2. Jodie Thomas AGENDA ITEM D. APPROVAL OF MINUTES 1. January 28, 1991 AGENDA ITEM E. PUBLIC PRESENTATIONS WITH PRIOR NOTICE AGENDA ITEM F. PUBLIC HEARINGS 1. Petition to vacate 66 foot section line easement shown as being within Lots 3 & 4, Blk 2, Deitz Home Estates No. 5 and Lot 7, Blk 1 and Lots 8 & 9, Blk 2, Deitz Home Estates No. 2. Sections 1 & 12, T6S, R13W, S.M., Kachemak City, Homer Recording District, Alaska 2. Petition to vacate 100 foot section line easement shown on plat of Alaska State Land Survey 90-74 (plat 90-21, Seward Recording District), being wfthin Sections 25 and 36, T9S, R9W, and within Sections 30 and 31, T9S, RBW, S. M., Seward Recording District, Alaska 3. Petition to vacate a 20 foot utility easement along the lot line common to Tracts 3-A and 4-A of Parkwood Subdivision No. 5, within the City of Soldotna in Section 29, TSN, R10W, S. M., Kenai Recording District, Alaska 4. Chapter 21.12; Request for Exception by Alaska Department of Environmental Conservation for Contaminated Soil located '~ Doser Subdivision, No. 2, Plat No. 81-145, Sec. 7, TSN, RBW, S.M., Alaska AGENDA ITEM •. SPECIAL CONSIDERATIONS AGENDA ITEM H. CONSIDERATION OF PLATS Off E. End Rd. 1. Bayshore Subdivision No. 2 (Preliminary) KPB File 90-106 (Steve Smith) Off E. End Rd. 2. Cowgill Acres No. 2 (Preliminary) KPB File 91-008 (Steve Smith) Ciry of Seward 3. Seward Townsite (Preliminary) Christian Church Replat (Integrity Surveys) .. KPB. File 91-009 City of Homer 4. Fairview Subdivision No. 12 (Preliminary) KPB File 91-011 (Steve Smith) City of Soldotna 5. Parkwood Subdivision No. 7 (Preliminary) KPB File 91-012 (Terry Eastham) City of Kenai 6. Baron Park Subdivision No. 7 (Preliminary) KPB File 91-013 (Mike Swan) Diamond Ridge 7. Nakada Subdivision (Preliminary) KPB File 91-014 (Steve Smith) j AGENDA ITEM 1. COMPREHENSIVE PLAN UPDATE AGENDA ITEM J. COASTAL MANAGEMENT PROGRAM CONSISTENCY REVIEWS AGENDA IT M K. INFORMATIONAL ITEMS AGENDA ITEM L. PUBLIC PRESENTATIONS WITHOUT PRIOR NOTICE AGENDA ITEM M . DIRECTOR'S COMMENTS AGENDA ITEM N. COMMISSIONER COMMENTS AGENDA ITEM O. ADJOURNMENT