HomeMy WebLinkAboutResolution No. 2025-61Sponsored by: Administration
CITY OF KENAI
RESOLUTION NO. 2025-61
A RESOLUTION AUTHORIZING PARTICIPATION IN THE CURRENT SOLICITATION OF THE
COMMUNITY DEVELOPMENT BLOCK GRANT PROGRAM TO EXTEND WATER, SEWER AND A
LOCAL SERVICE ROAD ON SIXTH STREET.
WHEREAS, the City conditionally donated land for the development of low-income and senior housing
to Kenai Peninsula Housing Initiative, Inc. (KPHI) through Ordinances 2899-2016, 3217-2021, and 2463-
2025; and,
WHEREAS, KPHI is planning a new low-income and senior housing development on the donated
property; and,
WHEREAS, to support this development, KPHI proposes to install new water and sewer mains along
with a service road to service the housing development and potential future development to the north;
and,
WHEREAS, potential grant funding is available for the utility extensions and service road through the
Community Development Block Grant Program (CDBG) which requires Council's authorization to apply;
and,
WHEREAS, the City must serve as the primary applicant, and KPHI as the co -applicant, for the grant
from the CDBG Program in an amount not to exceed $850,000; and,
WHEREAS, total project cost are estimated at $1,100,000; and,
WHEREAS, KPHI has committed to providing the local match necessary to complete the project, should
funds be awarded; and,
WHEREAS, participation in this grant opportunity will help facilitate needed infrastructure improvements,
support new low-income and senior housing development, and is in the best interest of the City.
NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA:
Section 1. The City Manager, or their designee, is hereby authorized to negotiate and execute any
and all documents required for granting and managing the funds on behalf of the City.
Section 2. The City Manager, or their designee, is also authorized to execute subsequent
amendments to said grant agreement to provide for adjustments to the project within the scope of
services or tasks, based upon the needs of the project
Section 3. That this resolution takes effect immediately upon passage.
PASSED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, THIS 15T" DAY OF OCTOBER, 2025.
Brian Gabriel Sr., Mayor
Michelle M. Sarfer, MKC, City Clerk
New Text Underlined; [DELETED TEXT BRACKETED]
K[NAI
City of Kenai 1 210 Fidalgo Ave, Kenai, AK 99611-7794 1907.283.7535 1 www.kenai.city
MEMORANDUM
TO: Mayor Brian Gabriel and Kenai City Council
THROUGH: Terry Eubank, City Manager
FROM: Kevin Buettner, Planning Director
DATE: October 6, 2025
SUBJECT: Resolution No. 2025-61 - Authorizing Participation in the Current Solicitation
of the Community Development Block Grant Program.
On October 1, 2025, the State of Alaska Department of Commerce, Community, and Economic
Development released a new solicitation for the Community Development Block Grant Program
(CBDG). The grant opportunity allows eligible applicants to request up to $850,000 per funding
cycle to address eligible community needs. The City of Kenai is an eligible applicant for this
program, as a home -rule municipality. Municipalities may partner with non-profit organizations as
long as the project principally benefits low- and moderate -income residents of the City.
The proposed project would include the installation of new water and wastewater mains and the
construction of a local service road to benefit the new low-income and senior housing
developments being constructed north of Redoubt Avenue in the Kenai Meadows Subdivision.
This land has been conditionally donated by this Council to KPHI under Ordinances 2899-2016,
3217-2021, and 2463-2025. The project is considered a Community Development activity.
Community development activities include, but are not limited to the installation of water and
wastewater systems and local service roads. The proposed utility extensions and road will also
benefit potential future development to the north of the project, a parcel currently owned by the
City.
This grant does not require, but encourages a 25% match. This match does not have to be cash,
but can be leveraged from other funding for the larger project. KPHI intends to leverage other
grant funding awarded for the building construction to meet this requirement. The City would
function as a pass -through entity for these grant funds (if awarded) and would work with KPHI,
under a formal Cooperative Agreement, to ensure all requirements are met. This grant would
allow KPHI to leverage the greatest amount of grant funds to complete this project and ensure
needed low-income and senior°housing is built in the City during this and future phases.
Thank you for your consideration.