HomeMy WebLinkAboutResolution No. 2025-64KENAI
CITY OF KENAI
RESOLUTION NO. 2025-64
Sponsored by: Legal
A RESOLUTION MUTUALLY AGREEING TO TERMINATE THE LEASE LOCATED AT 9711 KENAI
SPUR HIGHWAY WITH THE ALASKA CENTER FOR SPACE TECHNOLOGY, INC.
WHEREAS, on May 20, 1999 the City entered into a 99-year lease with the Alaska Center for Space
Technology, Inc. (Challenger Center), recorded in the Kenai Recording District at Book 0559 Page 796
through 807, for the operation of the "Challenger Learning Center"; and,
WHEREAS, on October 24, 2025, the Board of Directors of the Challenger Center formally notified the
City of its request to terminate the lease with the City effective November 15, 2025; and,
WHEREAS, pursuant to Section 42 of the lease, it is in the best interest of the City to mutually agree to
terminate the lease effective November 15, 2025 as the Challenger Center is no longer able to operate
the lease for its intended purpose.
NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA:
Section 1. That the City Manager is authorized to execute a lease termination and any other
necessary documents to terminate the lease executed on May 20, 1999 between the City and Alaska
Center for Space Technology, Inc., for property located at 9711 Kenai Spur Highway recorded in the
Kenai Recording District Book 0559 Pages 796 through 807.
Section 2. That this Resolution takes effect immediately upon passage.
PASSED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, THJ8/5T" DAY OF NO_VEM4W, 2025.
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KENAI
City of Kenai 1 210 Fidalgo Ave, Kenai, AK 99611-7794 1 907.283.7535 1 www1enai.city
MEMORANDUM
TO: Mayor Knackstedt and Council Members
FROM: Scott Bloom, City Attorney
DATE: October 27, 2025
SUBJECT: Resolution No. 2025-64- Mutually Agreeing to Terminate the Lease Located
at 9711 Kenai Spur Highway with the Alaska Center for Space Technology,
Inc.
On May 20, 1999 the City entered into a lease with the Alaska Center for Space Technology, Inc.
(Challenger Center), recorded in the Kenai Recording District at Book 0559 Pages 796 through
807, for the operation of the "Challenger Learning Center." The Board of Directors of the
Challenger Center has submitted the attached notification to the City requesting to terminate the
Lease effective November 15, 2025, as it is no longer able to operate. Pursuant to Section 42 of
the Lease -Mutual Cancellation, the lease may be terminated at any time upon mutual written
agreement between the Lessee and City. It is in the best interest of the City to mutually agree to
terminate the lease as it can no longer be operated by the Lessee.
Your consideration of the Resolution authorizing the City manager to execute the lease
termination is appreciated. City Administration is working closely with the Lessee on a successful
transition.
TED AND CATHERINE STEVENS
CENTER FOR SCIENCE AND
4Ea TECHNOLOGY EDUCATION
ALASKA
Oct 24, 2025
Terry Eubank
City Manager, City of Kenai
9711 Kenai Spur Highway,
Kenai, AK 99611
855-477-7926
www.akchallengenorb
92-1761906
The Board of Directors of the Challenger Learning Center of Alaska voted to close the Center. We are
requesting that the City of Kenai terminate our lease effective Nov 15, 2025.
This was a very difficult, but unanimous decision by the Board. Revenues from student missions,
workforce training and donations have been declining since the pandemic. Costs have increased for out -
of -district schools to visit the center due to the requirement to use district buses and additional staff for
field trips. Throw in inflation and the increase in fixed costs and you have an untenable financial
situation, even with a minimal part-time staff.
Layoffs were required and all professional staff were terminated on September 26. One maintenance
staff person is being temporarily retained to take care of the building until it reverts to the
control of the City of Kenai. We anticipate that Accounts Receivable will cover back wages and benefits
for the employees.
The Board has requested federal, state and local governments, there is no funding available.
For Kenai, the Challenger Center's shut down marks more than the end of an institution. It is the
close of a 25-year chapter in which thousands of students, teachers and community members found
inspiration in science, teamwork and exploration. Its legacy will endure in the people whose lives were
shaped by its curriculum. Thank you for understanding. Please let me know if you have additional
questions.
Thank you for your patience,
n �`a
Tim Dillon
Board President
Challenger Learning Center of Alaska