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HomeMy WebLinkAbout2025-12-10 Planning & Zoning PacketKenai Planning & Zoning Commission - Regular Meeting Page 1 of 2 December 10, 2025 Kenai Planning & Zoning Commission - Regular Meeting December 10, 2025 ꟷ 7:00 PM Kenai City Council Chambers 210 Fidalgo Avenue, Kenai, Alaska www.kenai.city **Telephonic/Virtual Information on Page 2** 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 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 November 12, 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. Resolution PZ2025-33 - Recommending the Approval of a Conditional Use Permit to Operate a Bed & Breakfast on the Parcel Described as Lot 4, Block 1, Highlands Subdivision, Located at 5105 Silver Salmon Drive, Within the Rural Residential (RR) Zoning District. 2. Resolution PZ2025-34 - Recommending the Approval of a Conditional Use Permit to Operate an Automotive Repair Business on the Parcel Described as Lot 23, Block 3, Redoubt Terrace Subdivision, Located at 1606 Salmo Circle, Within the Suburban Residential (RS) Zoning District. G. UNFINISHED BUSINESS H. NEW BUSINESS 1. Action/Approval - Recommending Approval of Proposed Ordinance to City Council Regarding Sunsetting the Harbor Commission 2. Discussion/Approval – Establishing Work Session Schedule for January and February 2026 Page 1 Kenai Planning & Zoning Commission - Regular Meeting Page 2 of 2 December 10, 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: January 14, 2026 L. COMMISSION COMMENTS AND QUESTIONS M. PENDING ITEMS N. ADJOURNMENT O. INFORMATIONAL ITEMS **COMMISSIONERS, PLEASE CONTACT US IF YOU WILL NOT BE ABLE TO ATTEND THE MEETING** 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 Planner at 907-283-8237. Registration is required to join the meeting remotely through Zoom. Please use the following link to register: https://us02web.zoom.us/meeting/register/b-VJ82_6S1yqvkg0TQ8kMw Page 2 KENAI PLANNING & ZONING COMMISSION – REGULAR MEETING NOVEMBER 12, 2025 – 7:00 P.M. KENAI CITY COUNCIL CHAMBERS 210 FIDALGO AVE., KENAI, AK 99611 VICE CHAIR EARSLEY, PRESIDING Planning & Zoning Commission Page 1 of 4 November 12, 2025 MINUTES A. CALL TO ORDER A Regular Meeting of the Kenai Planning & Zoning Commission was held on November 12, 2025, in City Hall Council Chambers, Kenai, AK. Vice Chair Earsley called the meeting to order at approximately 7:00 p.m. 1. Pledge of Allegiance Vice Chair Earsley led those assembled in the Pledge of Allegiance. 2. Roll Call There were present: Sonja Earsley, Vice Chair Gwen Woodard Glenese Pettey Jeanne Keaton Stacie Krause Diane Fikes A quorum was present. Absent: None Also in attendance were: Kevin Buettner, Planning Director Jessica See, Planning Administrative Assistant Sovala Kisena, City Council Liaison 3. Agenda and Consent Agenda Approval MOTION: Commissioner Woodard MOVED to approve the agenda and consent agenda. Commissioner Krause SECONDED the motion. The items on the Consent Agenda were read into the record. Vice Chair Earsley opened the floor for public comment on consent agenda items; there being no one wishing to be heard, the public comment period was closed. Vice Chair Earsley opened the floor for public comment on consent agenda items. There being no one wishing to comment, the public comment period was closed. UNANIMOUS CONSENT was requested. VOTE: There being no objection; SO ORDERED. *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 Page 3 Planning & Zoning Commission Page 2 of 4 November 12, 2025 Commissioner 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 October 22, 2025. C. SCHEDULED PUBLIC COMMENTS - None. D. UNSCHEDULED PUBLIC COMMENTS - None. E. CONSIDERATION OF PLATS - None. F. PUBLIC HEARINGS 1. Resolution PZ2025-30 - Recommending the Approval of a Conditional Use Permit for the Operation of a Small Automotive Sales Business at 4586 Kenai Spur Highway, Davidson Homestead Tract A, in the Rural Residential Zoning District. MOTION: Commissioner Woodard MOVED to approve Resolution PZ2025-30. Commissioner Krause SECONDED the motion. Director Buettner read into the record the staff report as included in the packet and attached to Resolution PZ2025-30. Vice Chair Earsley opened the floor for public comment. Laurin Lee-Ensey (applicant), provided the Commission with a packet of information related to her business, noting that all permits were in place, including a surety bond; the conditional use permit request pertained to approximately seven-percent of the parcel; the business would be a limited, by appointment only operation; this would improve an overgrown corner of her lot, improving safety and visibility; the use would be small-scale, quiet and compatible with the residential character of the area; the application met all requirements, complied with regulations, and this would be a well maintained business on her property. Commissioner Fikes thanked the applicant for the thorough presentation, noting she was excited to hear that lighting would be added the corner addressing visibility concerns. Dan Verkuilen addressed the Commission with concerns related to clutter and potential decrease in the value of the neighborhood. Ms. Lee-Ensley clarified that access was immediately off of Strawberry road, not the Spur Highway; there would be a maximum of ten vehicles; the current plan is to rotate five to ten cars regularly; and it would be organized and not cluttered. Mr. Verkuilen stated he did not oppose entrepreneurs; and his concerns were related to the value of homes in the area. Sherry Inness addressed the Commission in opposition, noting the neighborhood is zone residential; this would change the rural character of the neighborhood; this would set a precedent for future commercial development; and she felt the business was not compatible with the residential zoning of the area. There was discussion regarding neighboring properties that were not within City limits which could be developed commercially; and the conditional use process. Connie Taplin addressed the commission requesting clarification of the conditional use permit could be transferred if the property were sold. Page 4 Planning & Zoning Commission Page 3 of 4 November 12, 2025 Clarification was provided that the matter would come back before the commission and if there were no changes to the use, yes it could be transferred. Diane Taplin addressed the Commission in opposition, noting she was unaware of the corner being unsafe or of accidents happening there; there are other businesses on Strawberry road, those are outside of City limits; and that she supported the testimony of Ms. Inness. Ms. Lee-Ensey provided additional testimony, noting she respected the opinions shared; emphasized her personal investment in the property and community; a conditional use permit is not permanent; and she had spoken with neighbors who did support this. There being no one else wishing to be heard, the public comment period was closed. Clarification was provided that any properties within 300-feet were mailed notices of public hearing; the public hearing noticed was published in the Peninsula Clarion; and published on the City website. Commissioner Keaton spoke in support of the conditional use permit, noting the property went through the application process and has met the required criteria. Commissioner Woodard spoke in support, noting the applicant met the required criteria; it was conditional and not permanent; the location was not within the subdivisions; and it was not uncommon to have business just outside of a subdivision. VOTE: YEA: Askin, Keaton, Pettey, Krause, Fikes, Woodard, Earsley NAY: None ABSENT: None MOTION PASSED. Vice Chair Earsley noted the 15-day appeal period. G. UNFINISHED BUSINESS - None. H. NEW BUSINESS 1. Discussion - Direction from Kenai City Council to Review and Make Recommendations to Update Kenai Municipal Code 14.10 – Subdivision Regulations. Director Buettner provided an overview of the memo as provided in the packet, noting the Administration has identified housing as a high priority; and the City has been approached by large- and small-scale developers. There was discussion regarding removing explicit standards from code and instead referring to policies that are adopted by Council; the goal is to have clear communicable standards to provide to developers. Support for this process was expressed by the Commission. I. REPORTS 1. Planning Director Planning Director Buettner – No report. 2. Commission Chair - No report. 3. Kenai Peninsula Borough Planning Commissioner Fikes reported on recent actions of the Kenia Peninsula Borough Planning Commission. 4. City Council Liaison Page 5 Planning & Zoning Commission Page 4 of 4 November 12, 2025 Council Member Kisena reported on recent actions of the City Council. J. ADDITIONAL PUBLIC COMMENTS - None. K. NEXT MEETING ATTENDANCE NOTIFICATION 1. Next Meeting: December 10, 2025 L. COMMISSION COMMENTS AND QUESTIONS Commission Members stated appreciation for public participation and welcomed Commissioner Askin. 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 approximately 8:21 p.m. I certify the above represents accurate minutes of the Kenai City Council meeting of November 12, 2025. ___________________________________ Logan Parks Deputy City Clerk Page 6 STAFF REPORT PLANNING & ZONING DEPARTMENT TO: Planning and Zoning Commission THROUGH: Kevin Buettner, Planning Director FROM: Jessica See, Planning Technician DATE: November 14, 2025 SUBJECT: Resolution PZ2025-33 – Conditional Use Permit – Lodge and Guide Service Request The applicant is requesting to operate a Bed & Breakfast at the existing single-family dwelling. Staff Recommendation Adopt Resolution PZ2025-33 approving a Conditional Use Permit to operate a Bed & Breakfast in a single-family dwelling. Applicant: Booth’s Properties, LLC – Keri Hiler Legal Description: Lot 4, Block 1, Highlands Subdivision Property Address: 5105 Silver Salmon Drive KPB Parcel No.: 04917004 Lot Size: 20,038 square feet (.46-Acres) Zoning: Rural Residential (RR) Current Use: Single Family Dwelling Land Use Plan: Central Mixed Used (CMU) SUMMARY The applicant is requesting to operate a Bed & Breakfast out of the single-family residence. Per the Land Use Table, a CUP is required to operate a Bed & Breakfast out of a single family dwelling within a Rural Residential Zone. Page 7 Resolution No. PZ2025-07 Conditional Use Permit Lodge and Guide Service Page 2 of 4 ANALYSIS Pursuant to KMC 14.20.150(a), the intent of a conditional use permit is to allow some uses that may be compatible with the designated principal uses in specific zoning districts provided certain conditions are met. Prior to granting a conditional use permit, the Commission shall determine that the identified criteria as outlined in KMC 14.20.150(e) Conditional Use Permits Review Criteria are met. Criteria 1: The use is consistent with the purpose of this chapter and the purposes and intent of the zoning district. Findings: The RR Zone is intended to provide for low density residential development in outlying and rural areas in a form which creates a stable and attractive residential environment. The specific intent in establishing this zone is: (1) To separate residential structures to an extent which will: (A) Preserve the rural, open quality of the environment; (B) Prevent health hazards in areas not served by public water and sewer. (2) To prohibit uses which would: (A) Violate the residential character of the environment; (B) Generate heavy traffic in predominantly residential areas. The proposed use would not violate the residential character of the neighborhood as it would continue to function and serve as the family home. Furthermore, the proposed use is not anticipated to generate heavy traffic as the use is limited to the single-family dwelling with 2 bedrooms, and there is adequate parking available. Staff finds that the proposed use meets the intent of the RR zoning district. Criteria 2: The economic and noneconomic value of the adjoining property and neighborhood will not be significantly impaired. Findings: The proposed use will not impair the value of adjoining properties negatively as the lot has been improved upon to create an aesthetic and authentic Alaskan feel. The new development has increased the value of the property itself as well as for adjoining lots. Criteria 3: The proposed use is in harmony with the Comprehensive Plan. Findings: The Land Use Plan, from the 2016 Comprehensive Plan, identifies the subject property with the Central Mixed Used (CMU) land use classification. The LDR Land Use Classification is defined in the Comprehensive Plan: The CMU Zone is established to provide a centrally located area in the City for general retail shopping, personal and professional services, entertainment establishments, restaurants and related businesses. The district is also intended to accommodate a mixture of residential and commercial uses. The CMU Zone shall be designed to encourage pedestrian movement throughout the area. Building and other structures within the district should be compatible with one another and the surrounding area. Page 8 Resolution No. PZ2025-07 Conditional Use Permit Lodge and Guide Service Page 3 of 4 The surrounding properties are a mixture of residential and vacant lots. The proposed use would be compatible with the existing uses and the natural landscaping keeps the lot itself private. Additionally, the applicant states the impact on the area will be minimal giving they have no intent to remove vegetation or heavily modify the natural aesthetics of the property. The proposed use of a Bed & Breakfast is consistent and in harmony with several goals in the 2016 Comprehensive Plan, specifically Goals 1, 2, 3 and 8 listed below. RELEVENT GOALS In Imagine Kenai 2030 Comprehensive Plan, Chapter 6, “Goals, Objectives, and Implementation”, several goals and objectives are met from the proposed use. Goal 1 – Quality of Life is to promote and encourage quality of life in Kenai. Objective Q-4 Establish siting and design standards so that development is in harmony and scale with surrounding uses. Goal 2 – Economic Development is to provide economic development to support the fiscal health of Kenai. Objective ED-9 Capitalize on the tourism industry by marketing Kenai as a destination for recreational activities, conventions, festivals, arts, cultural and other events. Goal 3 – Land Use is to develop land use strategies to implement a forward-looking approach to community growth and development. Objective LU-1 Establish siting and design standards so that development is in harmony and scale with surrounding uses. Goal 8 – Environmental Resources: Protect and enhance the natural resources and environment of the community. Objective ER-2 Development plans should include provisions to avoid or minimize impacts on environmental resources such as the dunes, bluffs and wetlands. Criteria 4: Public services and facilities are adequate to serve the proposed use. Findings: City water and sewer is not in the vicinity of the subject property but onsite water and wastewater treatment and disposal systems are in place. The applicants are required to be in compliant with wastewater disposal requirements of Kenai Peninsula Borough Chapter 20.40 and regulatory requirements of the Alaska Department of Environmental Conservation. The lot has a graveled driveway with adequate parking on site and Silver Salmon is a graveled City-Maintained road. Criteria 5: The proposed use will not be harmful to the public safety, health or welfare. Page 9 Resolution No. PZ2025-07 Conditional Use Permit Lodge and Guide Service Page 4 of 4 Findings: There is adequate parking and buffer for the proposed use to minimize the impact to the surrounding area. It is not anticipated that the continued use will be harmful to the public safety, health or welfare. There is a natural buffer zone around the properties, and they intend to maintain and enhance those zones for a feeling of privacy and seclusion. Criteria 6: Any and all specific conditions deemed necessary by the Commission to fulfill the above-mentioned conditions. These may include, but are not limited to, measures relative to access, screening, site development, building design, operation of the use and other similar aspects related to the proposed use. Findings: Staff finds that allowing a Bed & Breakfast in the existing single-family dwelling would not cause any adverse impacts on the surrounding properties. Staff finds that additional specific conditions are not deemed necessary to fulfill the above-mentioned conditions. PUBLIC NOTICE Pursuant to Kenai Municipal Code 14.20.280(c) notices of the public hearing for the conditional use were mailed to property owners within a three hundred-foot (300’) periphery of the subject property. City staff published notice of the public hearing in the Peninsula Clarion. City staff submitted an Affidavit of Posting verifying a sign was placed on the parcel with information on the public hearing for the conditional use permit request. No public comments have been received at the time of this report. STAFF RECOMMENDATION Staff finds that the proposed Conditional Use Permit for a Lodge and Guide Service in the existing single-family dwelling on the property described as Lot 4, Block 1 of the Highlands Subdivision meets the criteria for issuance of a Conditional Use Permit as set forth in subsections (e)(1) through (e)(6) of Kenai Municipal Code 14.20.150, and hereby recommends that the Planning and Zoning Commission adopt Resolution PZ2025-07 approving the Conditional Use Permit, subject to the following conditions: 1. Any development or use of the property shall comply with all applicable Federal, State of Alaska, and City regulations regardless of whether or not the requirements are listed as conditions for the approval of the Conditional Use Permit. 2. Upon request, the applicant or applicant’s representative shall meet with City staff for an on-site inspection. ATTACHMENTS Aerial Map Application Site Plan Page 10 _____________________________________________________________________________________ CITY OF KENAI PLANNING AND ZONING COMMISSION RESOLUTION NO. PZ2025-33 A RESOLUTION GRANTING A CONDITIONAL USE PERMIT FOR A BED & BREAKFAST IN A SINGLE-FAMILY DWELLING. APPLICANT: Booth’s Properties – Keri Hiler PROPERTY ADDRESS: 5105 Silver Salmon Drive LEGAL DESCRIPTION: Lot 4, Block 1, Highlands Subdivision KENAI PENINSULA BOROUGH PARCEL NUMBER: 04917004 WHEREAS, a complete application meeting the requirements of Kenai Municipal Code 14.20.150 was submitted to the City on January 30, 2025; and, WHEREAS, the applicant has demonstrated that the prerequisites of a Conditional Use Permit have been met pursuant to Kenai Municipal Code 14.20.150; and, WHEREAS, the City of Kenai Planning and Zoning Commission conducted a duly advertised public hearing on February 26, 2025, following requirements outlined in Kenai Municipal Code 14.20.280 for public hearings and notifications. WHEREAS, the Planning and Zoning Commission finds: 1. KMC 14.20.150(d)(1) The use is consistent with the purpose of this chapter and the purposes and intent of the zoning district; Findings: The RR Zone is intended to provide for low density residential development in outlying and rural areas in a form which creates a stable and attractive residential environment. The specific intent in establishing this zone is: (1) To separate residential structures to an extent which will: (A) Preserve the rural, open quality of the environment; (B) Prevent health hazards in areas not served by public water and sewer. (2) To prohibit uses which would: (A) Violate the residential character of the environment; (B) Generate heavy traffic in predominantly residential areas. Page 11 Resolution No. PZ2025-07 Page 2 of 4 The proposed use would not violate the residential character of the neighborhood as it would function/remain as a single-family dwelling in addition to the operation of the proposed business. Furthermore, the proposed use is not anticipated to generate heavy traffic as the use is limited to the single-family dwelling, and there is adequate parking available. Staff finds that the proposed use meets the intent of the RR zoning district. 2. KMC 14.20.150(d)(2) The economic and noneconomic value of the adjoining property and neighborhood will not be significantly impaired; Findings: The proposed use will not impair the value of adjoining properties and the lot itself has been improved upon. Staff finds the proposed use would not negatively impair the economic and noneconomic value of adjacent properties and neighborhood. 3. KMC 14.20.150(d)(3) The proposed use is in harmony with the Comprehensive Plan; Findings: The Land Use Plan, from the 2016 Comprehensive Plan, identifies the subject property with the Low Density Residential (LDR) land use classification. The LDR Land Use Classification is defined in the Comprehensive Plan: The CMU Zone is established to provide a centrally located area in the City for general retail shopping, personal and professional services, entertainment establishments, restaurants and related businesses. The district is also intended to accommodate a mixture of residential and commercial uses. The CMU Zone shall be designed to encourage pedestrian movement throughout the area. Building and other structures within the district should be compatible with one another and the surrounding area The surrounding properties are a mix of vacant lots and residential dwellings. The proposed use would be compatible with the existing uses. Additionally, the applicant states the impact on the area will be minimal giving they have no intent to remove vegetation or heavily modify the natural aesthetics of the property. In Imagine Kenai 2030 Comprehensive Plan, Chapter 6, “Goals, Objectives, and Implementation”, several goals and objectives are met from the proposed use. Goal 1 – Quality of Life is to promote and encourage quality of life in Kenai. Objective Q-4 Establish siting and design standards so that development is in harmony and scale with surrounding uses. Goal 2 – Economic Development is to provide economic development to support the fiscal health of Kenai. Objective ED-9 Capitalize on the tourism industry by marketing Kenai as a destination for recreational activities, conventions, festivals, arts, cultural and other events. Page 12 Resolution No. PZ2025-07 Page 3 of 4 Goal 3 – Land Use is to develop land use strategies to implement a forward-looking approach to community growth and development. Objective LU-1 Establish siting and design standards so that development is in harmony and scale with surrounding issues. Goal 8 – Environmental Resources: Protect and enhance the natural resources and environment of the community. Objective ER-2 Development plans should include provisions to avoid or minimize impacts on environmental resources such as the dunes, bluffs and wetlands. 4. KMC 14.20.150(d)(4) Public services and facilities are adequate to serve the proposed use; Findings: City water and sewer is not in the vicinity of the subject property but onsite water and wastewater treatment and disposal systems are in place. The applicants are required to be in compliant with wastewater disposal requirements of Kenai Peninsula Borough Chapter 20.40 and regulatory requirements of the Alaska Department of Environmental Conservation. Silver Salmon is a gravel, City-Maintained road and lot itself has a gravel driveway with adequate parking. 5. KMC 14.150(d)(5) The proposed use will not be harmful to the public safety, health or welfare; Findings: There is adequate parking and buffer for the proposed use to minimize the impact to the surrounding area. It is not anticipated that the continued use will be harmful to the public safety, health or welfare. There is a natural buffer zone around the properties, and they intend to maintain and enhance those zones for a feeling of privacy and seclusion. 6. KMC 14.150(d)(6) Any and all specific conditions deemed necessary by the Commission to fulfill the above-mentioned conditions should be met by the applicant. These may include, but are not limited to, measures relative to access, screening, site development, building design, operation of the use and other similar aspects related to the proposed use. Findings: Staff finds that allowing a Bed & Breakfast in the existing single-family dwelling would not cause any adverse impacts on the surrounding properties. Staff finds that additional specific conditions are not deemed necessary to fulfill the above-mentioned conditions. Page 13 Resolution No. PZ2025-07 Page 4 of 4 NOW, THEREFORE, BE IT RESOLVED BY THE PLANNING AND ZONING COMMISSION OF THE CITY OF KENAI, ALASKA: Section 1. That a conditional use permit is granted to operate a Bed & Breakfast in the existing single-family dwelling on the property described as Lot 4, Block 1 of the Highlands Subdivision, located at 5105 Silver Salmon Drive. Section 2. That the conditional use permit is subject to the following conditions: 1. Any development or use of the property shall comply with all applicable Federal, State of Alaska, and City regulations regardless of whether or not the requirements are listed as conditions for the approval of the Conditional Use Permit. 2. Upon request, the applicant or applicant’s representative shall meet with City staff for an on-site inspection. PASSED BY THE PLANNING AND ZONING COMMISSION OF THE CITY OF KENAI, ALASKA, THIS 10TH DAY OF DECEMBER, 2025 Sonja Earsley, Chairperson ATTEST: ______________________________________ Logan Parks, Deputy City Clerk Page 14 Page 15 Page 16 Page 17 .3 %  1 2 7 (    6 H H  3 &  5 H V R O X W L R Q      Page 18 Page 19 _____________________________________________________________________________________ CITY OF KENAI PLANNING AND ZONING COMMISSION RESOLUTION NO. PZ2025-34 A RESOLUTION GRANTING A CONDITIONAL USE PERMIT TO DEVELOP AND OPERATE A SMALL AUTOMOTIVE REPAIR BUSINESS AT 1606 SALMO CIRCLE IN THE SUBURBAN RESIDENTIAL (RS) ZONING DISTRICT. APPLICANT: TDC Garage LLC – Troy Consiel PROPERTY ADDRESS: 1606 Salmo Circle LEGAL DESCRIPTION: Redoubt Terrace Subdivision, Lot 23, Block 3 KENAI PENINSULA BOROUGH PARCEL NUMBER: 04713013 WHEREAS, a complete application meeting the requirements of Kenai Municipal Code 14.20.150 was submitted to the City on October 22, 2025; and, WHEREAS, the applicant has demonstrated that the prerequisites of a Conditional Use Permit have been met pursuant to Kenai Municipal Code 14.20.150; and, WHEREAS, the City of Kenai Planning and Zoning Commission conducted a duly advertised public hearing on December 10, 2025, following requirements outlined in Kenai Municipal Code 14.20.280 for public hearings and notifications. WHEREAS, the Planning and Zoning Commission finds: 1. KMC 14.20.150(d)(1) The use is consistent with the purpose of this chapter and the purposes and intent of the zoning district; Findings: The RS Zone is intended to provide for medium density residential development in areas which will be provided with common utility systems. The proposed automotive repair business would not necessarily violate the character of the neighborhood as it would provide a practical amenity to residents and will remain a small business operated out of sight, inside a closed garage located on premises. Staff finds that the proposed use, as presented by the applicant, would not violate the intent of the RS zoning district. Page 20 Resolution No. PZ2025-34 Page 2 of 4 2. KMC 14.20.150(d)(2) The economic and noneconomic value of the adjoining property and neighborhood will not be significantly impaired; Findings: The proposed automotive repair business will not impair the economic and noneconomic value of the adjacent properties and neighborhood as, per the applicant, it is designed to minimize disruption via an appointment only system. There will be minimal signage and all work will be conducted inside the current garage out of sight from the public. The Applicant plans to prioritize professionalism, tidiness, and community respect. The lot has adequate parking on site ensuring no vehicles will be parked along the street and the appointment system prevents any noticeable increase to traffic volume in the area. Staff finds the proposed use would not impair the economic and noneconomic value of adjacent properties and neighborhood. 3. KMC 14.20.150(d)(3) The proposed use is in harmony with the Comprehensive Plan; Findings: The Land Use Plan, from the 2016 Comprehensive Plan, identifies the subject property with the Suburban Residential (RS) land use classification. The RS Land Use Classification is defined in the Comprehensive Plan: Suburban Residential is intended for single-family and multi-family residential uses that are urban or suburban in character. The area will typically be developed at a higher density; lots are typically smaller; and, public water and sewer services are required or planned. Some developments may be required to construct streets to a paved standard and larger subdivisions may be required to provide sidewalks and public areas. Parks and open space land uses may be considered appropriate. The surrounding uses consist of single-family residences. All lots to the North, East, South, and West are zoned as Suburban residential. As stated by the applicant in the application, the proposed use of the property is consistent and in harmony with Economic Development goals in the 2016 Comprehensive Plan. In Imagine Kenai 2030 Comprehensive Plan, Chapter 6, “Goals, Objectives, and Implementation”, the following goal and objectives are met from the proposed use. Goal 2 – Provide economic development to support the fiscal health of Kenai. Objective ED-1 Promote projects that create workforce development opportunities. Objective ED-2 Implement business-friendly regulations, taxation and incentives to create a stable, positive climate for private investment. Page 21 Resolution No. PZ2025-34 Page 3 of 4 4. KMC 14.20.150(d)(4) Public services and facilities are adequate to serve the proposed use; Findings: The property already has established facilities on site to include City water and septic servicing the primary structure, electricity, and access to a paved, City-maintained, road. 5. KMC 14.150(d)(5) The proposed use will not be harmful to the public safety, health or welfare; Findings: There is adequate off-road parking, and an established garage connected to the primary structure, for the proposed use to minimize the impact to the surrounding area, and all waste and hazardous materials will be properly, securely, stored and disposed of. It is not anticipated that the conditional use will be harmful to the public safety, health or welfare. 6. KMC 14.150(d)(6) Any and all specific conditions deemed necessary by the Commission to fulfill the above-mentioned conditions should be met by the applicant. These may include, but are not limited to, measures relative to access, screening, site development, building design, operation of the use and other similar aspects related to the proposed use. Findings: Applicant states that all work will be limited to daytime hours to not disrupt the morning and evening routine of the neighborhood. The garage door will remain closed when possible to limit noise and keep work out of sight from the neighborhood and vehicles will be parked on the lot itself as to not block, disrupt, or impair traffic flow on the street. The business, being appointment-based per the applicant, will not generate significant traffic, limiting the impact of the conditional use on the property. Staff finds that allowing a small automotive repair business does not cause any adverse impacts on the surrounding properties, if operated as described by the applicant. NOW, THEREFORE, BE IT RESOLVED BY THE PLANNING AND ZONING COMMISSION OF THE CITY OF KENAI, ALASKA: Section 1. That a conditional use permit is granted to operate a small automotive repair business at 1606 Salmo Circle, on the property described as Redoubt Terrace Subdivision, Lot 23, Block 3 in the Suburban Residential (RS) Zoning District. Section 2. That the conditional use permit is subject to the following conditions: 1. Any development or use of the property shall comply with all applicable Federal, State of Alaska, and City regulations regardless of whether or not the requirements are listed as conditions for the approval of the Conditional Use Permit. 2. Upon request, the applicant or applicant’s representative shall meet with City staff for an on-site inspection. 3. All work be limited to daylight hours, with the garage door closed to the maximum extent possible. Page 22 Resolution No. PZ2025-34 Page 4 of 4 4. Business to be limited to appointment-only operation to manage the amount of traffic into the neighborhood. PASSED BY THE PLANNING AND ZONING COMMISSION OF THE CITY OF KENAI, ALASKA, THIS 10th DAY OF DECEMBER, 2025 SONJA EARSLEY, VICE CHAIR ATTEST: ______________________________________ LOGAN PARKS, DEPUTY CITY CLERK Page 23 STAFF REPORT PLANNING & ZONING DEPARTMENT TO: Planning and Zoning Commission THROUGH: Kevin Buettner, Planning Director FROM: Jessica See, Planning Technician DATE: December 1, 2025 SUBJECT: Resolution PZ2025-34 – Conditional Use Permit – Automotive Repair Request The applicant is requesting to operate a small automotive repair business from the single-family home. Staff Recommendation Adopt Resolution PZ2025-34 approving a Conditional Use Permit to operate an automotive repair business at 1606 Salmo Circle, in the Suburban Residential (RS) Zoning District. Applicant: TDC Garage – Troy Consiel Legal Description: Redoubt Terrace Subdivision, Lot 23, Block 3 Property Address: 1606 Salmo Circle KPB Parcel No.: 04713013 Lot Size: 10,890 square feet (.25 acre) Zoning: Suburban Residential (RS) Current Use: Residential Land Use Plan: Suburban Residential (RS) SUMMARY The Applicant is requesting to operate a small automotive repair business, by appointment only, out of the garage attached to the single-family residence, located at 1606 Salmo Circle. A Conditional Use Permit (CUP) is required to operate an automotive sales business in the Suburban Residential (RS) Zoning District. Page 24 Resolution No. PZ2025-34 Conditional Use Permit Automotive Repair Page 2 of 4 ANALYSIS Pursuant to KMC 14.20.150(a), the intent of a conditional use permit is to allow some uses that may be compatible with the designated principal uses in specific zoning districts provided certain conditions are met. Prior to granting a conditional use permit, the Commission shall determine that the identified criteria as outlined in KMC 14.20.150(e) Conditional Use Permits Review Criteria are met. Criteria 1: The use is consistent with the purpose of this chapter and the purposes and intent of the zoning district. Findings: The RS Zone is intended to provide for medium density residential development in areas which will be provided with common utility systems. The proposed automotive repair business would not necessarily violate the character of the neighborhood as it would provide a practical amenity to residents and will remain a small business operated out of sight in the garage located on the premises. Staff finds that the proposed use, as presented by the applicant, would not violate the intent of the RS zoning district. Criteria 2: The economic and noneconomic value of the adjoining property and neighborhood will not be significantly impaired. Findings: The proposed automotive repair business will not impair the economic and noneconomic value of the adjacent properties and neighborhood as, per the applicant, it is designed to minimize disruption via an appointment only. There will be minimal signage and all work will be conducted inside the current garage out of sight from the public. The Applicant plans to prioritize professionalism, tidiness, and community respect. The lot has adequate parking on site ensuring no vehicles will be parked along the street and the appointment system prevents any noticeable increase to traffic volume in the area. Staff finds the proposed use would not impair the economic and noneconomic value of adjacent properties and neighborhood. Criteria 3: The proposed use is in harmony with the Comprehensive Plan. Findings: The Land Use Plan, from the 2016 Comprehensive Plan, identifies the subject property with the Suburban Residential (RS) land use classification. The RS Land Use Classification is defined in the Comprehensive Plan: Suburban Residential is intended for single-family and multi-family residential uses that are urban or suburban in character. The area will typically be developed at a higher density; lots are typically smaller; and, public water and sewer services are required or planned. Some developments may be required to construct streets to a paved standard and larger subdivisions may be required to provide sidewalks and public areas. Parks and open space land uses may be considered appropriate. The surrounding uses consist of single-family residences. All lots to the North, East, South, and West are zoned as Suburban residential. Page 25 Resolution No. PZ2025-34 Conditional Use Permit Automotive Repair Page 3 of 4 As stated by the applicant in the application, the proposed use of the property is consistent and in harmony with Economic Development goals in the 2016 Comprehensive Plan. RELEVENT GOALS In Imagine Kenai 2030 Comprehensive Plan, Chapter 6, “Goals, Objectives, and Implementation”, several goal and objectives are met from the proposed use. Goal 2 – Provide economic development to support the fiscal health of Kenai. Objective ED-1 Promote projects that create workforce development opportunities. Objective ED-2 Implement business-friendly regulations, taxation and incentives to create a stable, positive climate for private investment. Criteria 4: Public services and facilities are adequate to serve the proposed use. Findings: The property already has established facilities on site to include City water and septic servicing the primary structure, electricity, and access to a paved, City-maintained, road. Criteria 5: The proposed use will not be harmful to the public safety, health or welfare. Findings: There is adequate off-road parking , and an established garage connected to the primary structure, for the proposed use to minimize the impact to the surrounding area, and all waste and hazardous materials will be properly, securely, stored and disposed of. It is not anticipated that the conditional use will be harmful to the public safety, health or welfare. Criteria 6: Any and all specific conditions deemed necessary by the Commission to fulfill the above-mentioned conditions. These may include, but are not limited to, measures relative to access, screening, site development, building design, operation of the use and other similar aspects related to the proposed use. Findings: Applicant states that all work will be limited to daytime hours to not disrupt the morning and evening routine of the neighborhood. The garage door will remain closed when possible to limit noise and keep work out of sight from the neighborhood and vehicles will be parked on the lot itself as to not block, disrupt, or impair traffic flow on the street. The business being appointment-based per the applicant, will not generate significant traffic, limiting the impact of the condition use on the property. Staff finds that allowing a small automotive repair business does not cause any adverse impacts on the surrounding properties, if operated as described by the applicant. Page 26 Resolution No. PZ2025-34 Conditional Use Permit Automotive Repair Page 4 of 4 PUBLIC NOTICE Pursuant to Kenai Municipal Code 14.20.280(c) notices of the public hearing for the conditional use were mailed to property owners within a three hundred-foot (300’) periphery of the subject property. City staff published notice of the public hearing in the Peninsula Clarion. City staff submitted an Affidavit of Posting verifying a sign was placed on the parcel with information on the public hearing for the conditional use permit request. No public comments have been received at the time of this report. STAFF RECOMMENDATION Staff finds that the proposed Conditional Use Permit to develop and operate a small automotive repair business at 1606 Salmo Circle, on the property described as Redoubt Terrace Subdivision, Lot 23, Block 3 meets the criteria for issuance of a Conditional Use Permit as set forth in subsections (e)(1) through (e)(6) of Kenai Municipal Code 14.20.150, and hereby recommends that the Planning and Zoning Commission adopt Resolution PZ2025-30 approving the Conditional Use Permit, subject to the following conditions: 1. Any development or use of the property shall comply with all applicable Federal, State of Alaska, and City regulations regardless of whether or not the requirements are listed as conditions for the approval of the Conditional Use Permit. 2. Upon request, the applicant or applicant’s representative shall meet with City staff for an on-site inspection. 3. All work be limited to daylight hours, with the garage door closed to the maximum extent possible. 4. Business to be limited to appointment-only operation to manage the amount of traffic into the neighborhood. ATTACHMENTS Aerial Map Application Site Plan Redoubt Terrace Subdivision plat Page 27 Page 28 Page 29 Page 30 Page 31 Page 32 Page 33 Page 34 Page 35 Page 36 Page 37 Page 38 MEMORANDUM TO: Vice Chair Earsley and Planning & Zoning Commission Members FROM: Kevin Buettner, Planning Director DATE: December 1, 2025 SUBJECT: Action/Approval – Recommending Approval of Proposed Ordinance to City Council Regarding Sunsetting the Harbor Commission On November 10, 2025 the Harbor Commission met in a work session for the purpose of discussing the Commission Role, Future Status and Possible Sunset. Commission discussion during the work session included the following: • Over the last two-and-a-half years there was nothing required of the commission; the commission had been trying to create agenda items. • Numerous meetings cancelled due to lack of a quorum or lack of agenda items. • Difficulty keeping commissioners. • Now that the Bluff Stabilization project was complete, there were no foreseeable future project for the commission. • Activities of the commission overlapped and duplicated activities of other commissions. During the regular meeting, immediately following the work session the Harbor Commission unanimously approved a motion recommending the City Council sunset the Harbor Commission On November 19, 2025, City Council approved a motion to direct Administration to draft the necessary legislation to sunset the Commission to be brought forth at a Special Meeting of the Harbor Commission. In summary, the attached Ordinance would: • Amend Kenai Municipal Code 1.90.010 – General Standards o Remove reference to the Harbor Commission • Repeal KMC 1.95.040 – Harbor Commission o Removes the Harbor Commission from code • Repeal KMC 11.20 – Leasing of Tidelands • Amends KMC 14.05.010 – Duties and Powers o Transfers most Harbor Commission duties and powers to Planning & Zoning Commission Page 39 Page 2 of 2 • Enacts KMC 22.10 – Leasing of Tidelands o Moves repealed language from KMC 11.20 (above) to Title 22 – City-Owned Lands o Adds additional provisions for leasing all tidelands, to include shore fisheries o Brings review all city-owned land leases under Planning & Zoning Commission • Amends Council Policy 20.020 to reflect the sunsetting of the Harbor Commission Page 40 Sponsored by: Administration New Text Underlined; [DELETED TEXT BRACKETED] CITY OF KENAI ORDINANCE NO. XXXX-2025 AN ORDINANCE Sunsetting the Harbor Commission, Amending Kenai Municipal Code 1.90.010 - General Standards for Standing Advisory Commissions, Repealing Kenai Municipal Code 1.95.040 - Harbor Commission, Repealing Kenai Municipal Code 11.20 - Leasing of Tidelands, Amending Kenai Municipal Code 14.05.010- Duties and Powers, Enacting Kenai Municipal Code 22.10 - Leasing of Tidelands, and Amending Council Policy 20.020 to Reflect the Sunsetting of the Harbor Commission WHEREAS, the Harbor Commission was originally established as a Port Commission in 1975; and, WHEREAS, the Harbor Commission has held an instrumental role in planning and developing the City’s tideland leases, including recommending changes to Kenai Municipal Code, requiring an amendment; and, WHEREAS, within the last several years due to a lack of agenda items or lack of quorum, the Harbor Commission has cancelled numerous meetings and with the completion of the City’s Bluff Erosion Project and few other known Harbor activities in the future it is reasonable to expect the Harbor Commission will have few other agenda items moving forward in the near future; and, WHEREAS, on November 10, 2025 the Harbor Commission met in a work session and a regular meeting for the purpose of discussing its role, future status and possible sunset of the Commission; and, WHEREAS, during the regular meeting on November 10, 2025 the Harbor Commission Members unanimously approved a motion to recommend the City Council sunset the Commission; and, WHEREAS, the City Council during their November 19, 2025 meeting approved a motion directing the Administration to bring forward the legislation necessary to sunset the Commission; and, WHEREAS, the Harbor Commission during their December 8, 2025 Special Meeting recommended the City Council enact this Ordinance; and, WHEREAS, the Planning and Zoning Commission during their December 10, 2025 Meeting recommended the City Council enact this Ordinance; and, WHEREAS, while the Harbor Commission can always be brought back if needed, this Ordinance shifts its prior duties and obligations to other sections of code including the duties of the Planning Commission WHEREAS, Kenai Municipal Code 1.90.010-Creation provides that the Council may create or dissolve standing advisory commissions and it is in the best interest of the City to enact this ordinance. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, AS FOLLOWS: Section 1. Amendment of Section 1.90.010 of Kenai Municipal Code: That Kenai Municipal Code, Section 1.90.010 - General Standards for Advisory Commissions, Creation, paragraph (a) is hereby amended as follows: 1.90.010 Creation. Page 41 Ordinance No. XXXX-2025 Page 2 of 17 New Text Underlined; [DELETED TEXT BRACKETED] (a) Standing advisory commissions of the City may be created or dissolved by an ordinance of the City Council. The following standing advisory commissions have been created by the Council: (1) Airport Commission, as established in KMC 1.95.010; (2) Beautification Commission, as established in KMC 1.95.020; (3) Council on Aging Commission, as established in KMC 1.95.030; [(4)] HARBOR COMMISSION, AS ESTABLISHED IN KMC 1.95.040;] [(5)] (4) Parks and Recreation Commission, as established in KMC 1.95.050. Section 2. Repeal of Section 1.95.040 of Kenai Municipal Code: That Kenai Municipal Code, Section 1.95.040 - Standard Advisory Commissions, Harbor Commission, is hereby repealed as follows: [1.95.040 HARBOR COMMISSION. (A) PURPOSE. THE PURPOSE OF THE HARBOR COMMISSION IS TO ADVISE THE COUNCIL AND ADMINISTRATION ON ISSUES INVOLVING CITY HARBOR FACILITIES AND TIDAL OR SUBMERGED LANDS OWNED BY THE CITY. (B) DUTIES AND POWERS. THE HARBOR COMMISSION WILL: (1) REVIEW AND PROVIDE RECOMMENDATIONS ON ANY MASTER PLANS FOR THE DEVELOPMENT OF HARBOR OR PORT FACILITIES FOR THE CITY. THIS MAY INCLUDE: (I) DEVELOPMENT OF THE TYPE, LOCATION, AND SEQUENCE OF ALL PUBLIC HARBOR FACILITIES; AND (II) THE RELOCATION, REMOVAL, EXTENSION, OR CHANGE OF USE OF EXISTING HARBOR FACILITIES; (2) ACT IN AN ADVISORY CAPACITY TO THE COUNCIL AND ADMINISTRATION REGARDING MATTERS RELATED TO CITY HARBOR FACILITIES, TIDE OR SUBMERGED LANDS. MAKE RECOMMENDATIONS TO THE COUNCIL AND ADMINISTRATION RELATIVE TO THE CARE, CONTROL, AND DEVELOPMENT OF TIDE AND SUBMERGED LANDS; AND (3) SUBMIT ANNUALLY TO THE CITY MANAGER AND COUNCIL, NOT LESS THAN NINETY (90) DAYS PRIOR TO THE BEGINNING OF THE BUDGET YEAR, A LIST OF THE RECOMMENDED CAPITAL IMPROVEMENTS WHICH, IN THE OPINION OF THE COMMISSION, ARE NECESSARY OR DESIRABLE TO BE CONSTRUCTED DURING THE FORTHCOMING FIVE (5) YEAR PERIOD. SUCH LIST WILL BE ARRANGED IN ORDER OF PREFERENCE, WITH RECOMMENDATIONS AS TO WHICH PROJECTS ARE RECOMMENDED FOR CONSTRUCTION IN WHICH YEAR; AND (4) REVIEW ALL CITY LEASES OF CITY-OWNED TIDE AND SUBMERGED LANDS AND MAKE RECOMMENDATIONS TO THE CITY COUNCIL AND ADMINISTRATION; AND (5) PROVIDE INFORMATION AND RECOMMENDATIONS AS REQUESTED BY THE CITY COUNCIL AND ADMINISTRATION; AND (6) ADVISE AND PROVIDE RECOMMENDATIONS TO THE ADMINISTRATION AS REQUESTED ON THE QUALIFICATIONS FOR A HARBOR MASTER. (C) QUALIFICATIONS AND MEMBERSHIP. MEMBERS OF THE HARBOR COMMISSION WILL CONFORM TO THE REQUIREMENTS OF KMC CHAPTER 1.90, EXCEPT THE COMMISSION MAY AT THE DISCRETION OF THE COUNCIL HAVE UP TO TW O (2) NONRESIDENT MEMBERS.] Section 3. Repeal of Section 11.20 of Kenai Municipal Code: That Kenai Municipal Code, Chapter 11.20 – Leasing of Tidelands, is hereby repealed as follows: [CHAPTER 11.20 – LEASING OF TIDELANDS Page 42 Ordinance No. XXXX-2025 Page 3 of 17 New Text Underlined; [DELETED TEXT BRACKETED] 11.20.020 - LANDS AVAILABLE FOR LEASING. ALL CLASSIFIED TIDE AND CONTIGUOUS SUBMERGED LANDS WITHIN THE LIMITS OF THE CITY TO WHICH THE CITY HOLDS TITLE MAY BE LEASED FOR SURFACE USE ONLY, AND UNDER THE CONDITION THAT SAID LEASE IS SUBJECT AND INFERIOR TO PREFERENCE RIGHT CLAIMS AND SUBJECT TO THE RIGHTS OF EXISTING SET NET HOLDERS WITHIN THE CITY LIMITS. 11.20.650 – TIDELANDS CLAIMS. THE CITY SHALL LEASE THE LAND SUBJECT TO ANY PREFERENCE RIGHTS CLAIMS MADE PURSUANT TO THE PROVISIONS OF ALASKA STATUTES 38.05.820 OR ORDINANCE 455-78, DATED SEPTEMBER 5, 1979, OF THE CITY OF KENAI, ADOPTED PURSUANT THERETO, AND THE LESSEE HOLDS LESSOR HARMLESS FOR ANY DAMAGES, LEGAL EXPENSES, OR COMPENSATION NECESSITATED BY THE RESOLUTION OR SATISFACTION OF SAID TERMS OF SAID CLAIMS, IF ANY. 11.20.660 – SUBJECTION TO HARBOR ORDINANCE. ALL LEASES ARE SUBJECT TO THE TERMS, CONDITIONS, AND REGULATIONS IMPOSED BY TITLE 11, HARBOR AND HARBOR FACILITIES, OF THE 1979 KENAI CODE OF ORDINANCES AS AMENDED OF WHICH THIS SECTION IS PART. 11.20.680 – PROVISIONS REGULATING PUBLIC USE PURPOSE. THE CITY COUNCIL REALIZES THAT ONLY A LIMITED AREA OF TIDELANDS BORDERING NAVIGABLE WATERS IS AVAILABLE WITHIN THE CITY OF KENAI AND WHICH IS OW NED BY THE CITY OF KENAI. IT WOULD BE IN THE PUBLIC INTEREST TO INSURE THAT THESE LANDS DO NOT PASS OUT OF COMMUNITY CONTROL AT LEAST TO THE EXTENT THAT THE PUBLIC WOULD NOT BE DEPRIVED OF HARBOR SERVICES AT REASONABLE RATES IN THE FUTURE. THEREFORE, AREAS OF CITY-OWNED TIDELANDS WHICH ARE DEVELOPABLE FOR THE BONA FIDE PUBLIC PURPOSES AS ENUMERATED BELOW SHALL BE LEASED ONLY WITH THE FOLLOWING COVENANTS DEFINED TO INSURE PUBLIC USE AND ACCESS AT REASONABLE RATES. 11.20.690 – PROVISION TO BE INCLUDED IN PUBLIC USE LEASE. KMC 11.20.700 SHALL BE INCLUDED IN LEASES WHERE HARBOR FACILITIES ARE CONSTRUCTED TO BE UTILIZED ALL OR IN PART FOR BONA FIDE PUBLIC USES. 11.20.700 – PUBLIC USE: DEFINED. (A) PUBLIC USE SHALL MEAN A USE LIMITED IN PART OR IN WHOLE TO THE FOLLOWING: (1) IN GENERAL, THE LESSEE MAY USE THE DEMISED PREMISES OR PART THEREOF FOR ANY OF THE FOLLOWING PURPOSES ONLY: (I) PUBLIC DOCK FACILITIES. (II) MARITIME COMMERCE. (III) TRANSPORTATION. (IV) FISHING. (V) BOAT HARBOR. (VI) PORT AND WATERFRONT DEVELOPMENT PURPOSES. Page 43 Ordinance No. XXXX-2025 Page 4 of 17 New Text Underlined; [DELETED TEXT BRACKETED] (B) BEFORE LESSEE MAY CONDUCT ANY ACTIVITIES WHICH FALL UNDER THESE GENERAL CRITERIA, BUT ARE NOT SPECIFICALLY MENTIONED ABOVE, LESSEE MUST OBTAIN WRITTEN CONSENT OF THE CITY. 11.20.710 – CONTROLLED ACCESS. LESSEE, FOR ITS OWN PROTECTION, MAY CONSTRUCT OR INSTALL FENCES, GATES, OR OTHER TYPES OF BARRIERS TO RESTRICT ACCESS TO PORTIONS OF THE DEMISED PREMISES THAT ARE NOT DESIGNATED FOR A PUBLIC USE AND MAY PROVIDE REASONABLE CONTROLS FOR ACCESS TO PUBLIC USE AREAS TO ALLOW FOR SECURITY FOR SUCH AREAS WHILE INSURING REASONABLE PUBLIC ACCESS. REASONABLE PUBLIC ACCESS INCLUDES ACCOMMODATIONS MADE FOR FISHING OPERATIONS DURING FISHING SEASON. ANY CONTROLLED ACCESS MEASURES SHALL BE INDICATED ON THE LESSEE’S DEVELOPMENT PLAN. 11.20.720 – USE CHARGES. LESSEE SHALL MAKE REASONABLE AND NONDISCRIMINATORY CHARGES TO THE PUBLIC FOR USE OF ANY OF ITS FACILITIES. 11.20.780 – PENALTIES. (A) IT IS UNLAWFUL FOR ANY PERSON TO VIOLATE ANY OF THE PROVISIONS OF THIS CHAPTER AND UPON CONVICTION THEREOF SHALL BE FINED AS PROVIDED FOR VIOLATIONS IN KMC 13.05.010. EACH DAY SUCH VIOLATION IS COMMITTED OR PERMITTED TO CONTINUE SHALL CONSTITUTE A SEPARATE OFFENSE AND SHALL BE PUNISHABLE AS SUCH HEREUNDER. (B) IN ADDITION TO OR AS AN ALTERNATIVE TO THE ABOVE PENALTY PROVISION, THE CITY MAY IMPOSE A CIVIL PENALTY IN AN AMOUNT AS PROVIDED BY KMC 13.05.010 PER DAY FOR THE VIOLATION OF ANY PROVISION OF THIS CHAPTER AND SEEK INJUNCTIVE RELIEF FOR ANY INFRACTION THEREOF FOR WHICH THE OFFENDING PARTY WILL BE CHARGED FOR REASONABLE ATTORNEY’S FEES AND COSTS INCURRED BY THE CITY AS AWARDED BY THE COURT. (C) NOTHING IN THIS SECTION SHALL BE DEEMED TO RESTRICT THE CITY’S EXERCISE OF ANY OF ITS RIGHTS PURSUANT TO THE LEASE AGREEMENT. 11.20.790 – TIDELANDS LEASES FOR SHORE FISHERIES. NOTWITHSTANDING OTHER PROVISIONS OF THE CITY’S CODE OF ORDINANCES, THE ANNUAL MINIMUM RENTAL RATE FOR TIDELAND LEASES USED PRIMARILY FOR SHORE FISHERIES SHALL BE AN ANNUAL FEE AS SET FORTH IN THE CITY’S SCHEDULE OF FEES ADOPTED BY THE CITY COUNCIL. HOWEVER, SHOULD THE STATE OF ALASKA SET AN ANNUAL LEASE RATE HIGHER THAN THAT ESTABLISHED BY THE CITY FOR SIMILAR TIDELAND LEASES FOR SHORE FISHERIES ON LAND OWNED BY THE STATE, THE CITY MAY AMEND THE ANNUAL RENTAL TO A RATE EQUAL TO THAT CHARGED BY THE STATE OF ALASKA. Section 4. Amendment of Section 14.05.010 of Kenai Municipal Code: That Kenai Municipal Code, Section 14.05.010 – Planning and Zoning Commission, Duties and Powers, is hereby amended as follows: 14.05.010 Duties and Powers. (a) The Commission shall be required to perform the following duties: (1) Review and act upon requests for variance permits, conditional use permits, planned unit residential development permits, and other matters requiring consideration under the Kenai Zoning Code. Page 44 Ordinance No. XXXX-2025 Page 5 of 17 New Text Underlined; [DELETED TEXT BRACKETED] (2) Interpret the provisions of the Kenai Zoning Code and make determinations when requested by the Administrative Official. (3) Review the City of Kenai Comprehensive Plan on an annual basis and conduct a minimum of one (1) public hearing. Said recommendations shall be forwarded to the Council for consideration. (4) Promote public interest and understanding of comprehensive planning, platting, zoning, land management, and other issues relating to community planning and development. (5) Proposed plans for the rehabilitation or redevelopment of any area or district within the City. (6) Perform historic preservation reviews and duties as set forth in KMC 14.20.105. (7) Review and provide recommendations on any master plans for the development of harbor or port facilities for the City. This may include: (i) Development of the type, location, and sequence of all public harbor facilities; and (ii) The relocation, removal, extension, or change of use of existing harbor facilities; (8) Submit annually to the City Manager and Council, not less than ninety (90) days prior to the beginning of the budget year, a list of the recommended capital improvements which, in the opinion of the Commission, are necessary or desirable to be constructed during the forthcoming five (5) year period. Such list will be arranged in order of preference, with recommendations as to which projects are recommended for construction in which year (b) The Commission shall act in an advisory capacity to the Kenai City Council regarding the following matters: (1) Kenai Zoning Code and Official City of Kenai Zoning Map amendments. (2) City and airport land lease or sale petitions. (3) Capital Improvements Programming. The Commission shall submit annually to the Council a list of recommended capital improvements which, in the opinion of the Commission, are necessary and desirable to be constructed during the forthcoming three (3) year period. Such list shall be arranged in order of preference, with recommendations as to which projects shall be constructed in which year. (4) Related to City Harbor facilities, tide or submerged lands. Make recommendations to the Council and Administration relative to the care, control, and development of tide and submerged lands (c) The Commission shall act in an advisory capacity to the Kenai Peninsula Borough Planning Commission regarding the following matters: (1) Subdivision plat proposals. (2) Right-of-way and easement vacation petitions. (3) City of Kenai Comprehensive Plan amendments. (d) Members of the Planning and Zoning Commission shall be compensated at the rate of one hundred dollars ($100.00) per month. Page 45 Ordinance No. XXXX-2025 Page 6 of 17 New Text Underlined; [DELETED TEXT BRACKETED] Section 5. Enactment of Chapter 22.10 of Kenai Municipal Code: That Kenai Municipal Code, Section 22.10 – Leasing of Tidelands is hereby enacted as follows: Chapter 22.10 Leasing of Tidelands 22.10.005 - Definitions. When used in this chapter, the following terms will have the meaning given below: “Amendment” means a formal change to a lease of lands other than a lease extension or renewal. “Annual rent” means an amount paid to the City annually according to the terms of the lease and Kenai Municipal Code. “Assignment” means the transfer of all interest in a lease from one (1) person or entity to another. “City” means the City of Kenai, its elected officials, officers, employees or agents. “Existing lease” means a lease with at least one (1) year of term remaining. “Expiring lease” means a lease with less than one (1) year of term remaining. “Lease renewal” means a new lease of property currently under an existing or expiring lease to an existing lessee or a purchaser. 22.10.010 – Authority and Intent. The provisions of this chapter apply to the leasing of City-owned tidelands, including tidelands used for shore fisheries as specified in KMC 22.10.021 below. The provisions of this chapter will not alter or amend the terms or rights granted under leases existing prior to the effective date of the ordinance codified in this chapter. 22.10.015 - Lands Available for Leasing. All classified tide and contiguous submerged lands within the limits of the City to which the City holds title may be leased for surface use only, and under the condition that said lease is subject and inferior to preference right claims and subject to the rights of existing set net holders within the City limits. 22.10.020 – Tidelands Claims. The City will lease the land subject to any preference rights claims made pursuant to the provisions of Alaska Statutes 38.05.820 or Ordinance 455-78, dated September 5, 1979, of the City of Kenai, adopted pursuant thereto, and the lessee holds lessor harmless for any damages, legal expenses, or compensation necessitated by the resolution or satisfaction of said terms of said claims, if any. 22.10.021 – Tidelands Leases for Shore Fisheries. (a) The annual minimum rental rate for tideland leases used primarily for shore fisheries will be an annual fee as set forth in the City’s schedule of fees adopted by the City Council. However, should the State of Alaska set an annual lease rate higher than that established by the City for similar tideland leases for shore fisheries on land owned by the State, the City may amend the annual rental to a rate equal to that charged by the State of Alaska. Page 46 Ordinance No. XXXX-2025 Page 7 of 17 New Text Underlined; [DELETED TEXT BRACKETED] (b) The maximum term of a lease for tidelands used for shore fisheries may not to exceed ten (10) years, in accordance with Alaska Statute 38.05.24. (c) Kenai Municipal Code Sections 22.10.021 through 22.10.045 and 22.10.071 apply to shore fisheries, in addition to other tideland leases. (d) Rent will be paid annually in advance. The City of Kenai’s fiscal year beginning July 1st and ending June 30th. (e) The lease applicant will execute and return the appropriate lease agreement with the City of Kenai within forty-five (45) days of mailing the agreement to the applicant. The lease agreement will be prepared in accordance with the requirements of this title. Failure to execute and return the lease agreement within the specified period will result in the forfeiture of all leasing rights. (f) A Lessee under an existing lease will, upon expiration or the termination by mutual agreement of said Lease, be allowed a preference right to re-Lease those lands previously leased by them if all other sections of the Kenai Municipal Code are complied with. Re-Leasing will not necessarily be under the same terms and conditions as the prior lease. When the lease is offered to the preference right holder, they will exercise their right within thirty (30) calendar days after said lease is offered by the City. Failure to doe so will result in forfeiture and cancellation of the preference right. No preference right will inure to a Lessee whose lease has been terminated by cause. 22.10.025 – Qualifications of Lease Applicants or Bidders. An applicant or bidder for a lease is qualified if the applicant or bidder: (a) Is an individual at least eighteen (18) years of age; or (b) Is a legal entity which is authorized to conduct business under the laws of Alaska; or (c) Is acting as an agent for another meeting the requirements of subsection (a) or (b) of this section and has qualified by filing with the City a proper power of attorney or a letter of authorization creating such agency. 22.10.030 – Initial Lease Application All applications for lease of lands must be submitted to the City Manager or designee on an application form provided by the City. Applications will be dated on receipt and must include payment of the nonrefundable application fee as set forth in the City’s schedule of fees approved by the City Council. 22.10.035 – Lease Application Review (a) Applications will be reviewed by City staff for application completeness and conformance with City ordinances. (b) Based on the initial review, if the City Manager determines the application is complete, the application will be referred to the Planning and Zoning Commission for review and comment, together with the City Manager’s recommendation for approval or rejection. (c) Notice of complete applications for new leases, renewals or extensions will be published by the City and posted on the property. The notice must contain the name of the applicant, a brief Page 47 Ordinance No. XXXX-2025 Page 8 of 17 New Text Underlined; [DELETED TEXT BRACKETED] description of the land, and the date upon which any competing applications must be submitted (thirty (30) days from the date of publication). (d) The recommendations of the City Manager and the Planning and Zoning Commission will be provided to the City Council. The City Council shall determine whether the lease, renewal, amendment or extension is consistent with the intent of this chapter and in the best interest of the City. The decision whether or not to lease land or authorize a lease extension, renewal, amendment or assignment rests in the sole discretion of the City Council. (e) If the applicant is in default of any charges, fees, rents, taxes, or other sums due and payable to the City or the applicant is in default of a requirement of any lease or contract with the City a lease will not be entered into until the deficiencies are remedied. 22.10.040 – Application for Lease Amendment, Assignment, or Renewal Applications for amendment, assignment, extension or renewal will be processed in accordance with the lease application review provisions of this chapter. Only applications that change the use of the tidelands will be referred to the Planning and Zoning Commission. All others are not subject to review by the Planning & Zoning Commission. The City has no obligation to amend, assign, renew or extend a lease and may decline to do so upon making specific findings as to why a lease amendment, assignment, renewal, or extension is not in the best interest of the City. 22.10.045 – Competing Land Applications If another application for a new lease or a renewal is received for the same property within thirty (30) days from the notice of application publication date by a different applicant, City staff will process the application and forward the application, the City Manager’s recommendation and Planning and Zoning Commission recommendations to the City Council for approval of the application anticipated to best serve the interest of the City. The City Council may approve one (1) of the applications, reject all the applications or direct the City Manager to award a lease of the property by sealed bid. An applicant for a renewal may withdraw an application for a renewal or extension at any time prior to a decision by the City Council whether or not to approve such a renewal. 22.10.050 – Length of Lease Term (a) The length of term for an initial lease will be based on the amount of investment the applicant proposes to make in the construction of new permanent improvements on the premises as provided in the application. The City Council may offer a shorter lease term, if the City Council makes specific findings that a shorter lease term is in the best interest of the City. (b) The maximum term of a lease for all tideland leases not associated with shore fisheries, will be determined according to the following term table and cannot exceed forty-five (45) years: APPLICANT’S INVESTMENT/VALUE MAXIMUM TERM OF YEARS $7,500 5 15,000 6 Page 48 Ordinance No. XXXX-2025 Page 9 of 17 New Text Underlined; [DELETED TEXT BRACKETED] APPLICANT’S INVESTMENT/VALUE MAXIMUM TERM OF YEARS 22,500 7 30,000 8 37,500 9 45,000 10 52,500 11 60,000 12 67,500 13 75,000 14 82,500 15 90,000 16 97,500 17 105,000 18 112,500 19 120,000 20 127,500 21 135,000 22 142,500 23 Page 49 Ordinance No. XXXX-2025 Page 10 of 17 New Text Underlined; [DELETED TEXT BRACKETED] APPLICANT’S INVESTMENT/VALUE MAXIMUM TERM OF YEARS 150,000 24 157,500 25 165,000 26 172,500 27 180,000 28 187,500 29 195,000 30 202,500 31 210,000 32 217,500 33 225,000 34 232,500 35 240,000 36 247,500 37 255,000 38 262,500 39 270,000 40 Page 50 Ordinance No. XXXX-2025 Page 11 of 17 New Text Underlined; [DELETED TEXT BRACKETED] APPLICANT’S INVESTMENT/VALUE MAXIMUM TERM OF YEARS 277,500 41 285,000 42 292,500 43 300,000 44 307,500 45 (c) Lease Extension. The length of term for a lease extension will be determined based on the remaining term of the initial lease and the estimated cost of new investment the applicant proposes to make in the construction of new permanent improvements on the premises according to the term table and provided no extension will extend a lease term past forty-five (45) years. (d) Lease Renewal for an Existing Lease. A renewal for an existing lease requires the construction of new permanent improvements, and the length of term for a lease renewal for an existing lease will be determined as follows: (1) Based on the remaining term of the initial lease according to the term table and the estimated cost of new investment the applicant proposes to make in the construction of new permanent improvements on the premises according to the term table; or (2) Pursuant to a transaction between the current lessee and a new buyer and prospective lessee and based on the purchase price of existing real property improvements on the premises, as certified by the current lessee and the proposed purchaser in the bill of sale or purchase agreement, to be executed at closing of the transaction and the estimated cost of new investment in the construction of new permanent improvements on the premises according to the term table. (3) The term for renewal of an existing lease cannot exceed forty-five (45) years. (e) Lease Renewal for an Expiring Lease. The length of term for a lease renewal of an expiring lease will be determined as follows: (1) The purchase price of existing real property improvements on the premises, as certified by the current lessee and the proposed purchaser in the bill of sale or purchase agreement, to be executed at closing of the transaction and the estimated cost of any new investment in the construction of new permanent improvements on the premises according to the term table; or (2) A professional estimate of the remaining useful life of the real property improvements on the premises, paid for by the applicant, and the estimated cost of any new investment in the construction of new permanent improvements on the premises according to the term table; or (3) A fair market value appraisal of the existing real property improvements on the premises, paid for by the applicant, and the estimated cost of any new investment in the Page 51 Ordinance No. XXXX-2025 Page 12 of 17 New Text Underlined; [DELETED TEXT BRACKETED] construction of new permanent improvements on the premises according to the term table. (4) The term for renewal of an existing lease cannot exceed forty-five (45) years. (f) If the initial lease, term extension, or lease renewal granted to the applicant requires construction of new permanent improvements, the lease or term extension will be subject to the following conditions: (1) The lessee to complete the proposed permanent improvements within three (3) years except in special circumstances that require a longer period of time and which must be approved by the City Council in the initial lease or unless additional time is approved after the lease is executed as provided in subsection (f)(5) of this section. (2) The lessee to provide a performance bond, deposit, personal guarantee, or other security if the City Council determines security is necessary or prudent to ensure the applicant’s completion of the permanent improvements required in the lease, renewal, or extension. The City Council will determine the form and amount of the security according to the best interest of the City, after a recommendation by the City Manager considering the nature and scope of the proposed improvements and the financial responsibility of the applicant. (3) At no expense to the City, the lessee must obtain and keep in force, during the term of the lease, insurance of the type and limits required by the City for the activities on the premises. (4) Within thirty (30) days after completion of the permanent improvements, the lessee will submit to the City written documentation that the improvements have been completed as required. The City Manager will make a report to the City Council of completion as soon as reasonably practical. (5) If the lessee shows good cause and evidence of progress towards completion of the proposed improvements, including but not limited to building permits, invoices for site- specific building materials, or third party contracts for construction, as well as updated financial information as required in KMC 22.05.025(b)(4) and the City Council determines the action is in the best interest of the City, the City Council may grant an extension of the time initially not to exceed twelve (12) months to complete permanent improvements by resolution that is sufficient to allow for the completion of the permanent improvements or for submission of documentation that the permanent improvements have been completed. A final twelve (12) month extension may be granted by separate resolution of Council if the lessee meets the same criteria for the first twelve (12) month extension and provides a performance bond, deposit, personal guarantee or other security interest sufficient to satisfy the Council that the improvements will be completed and Council determines the final extension is in the best interest of the City. (6) If, within the time required, the applicant fails to complete the required permanent improvements, the City will: (i) If the application is for a new lease or lease renewal, execute the forfeiture of the performance bond, deposit, personal guarantee, or other security posted by the applicant under subsection (f)(2) of this section to the extent necessary to reimburse the City for all costs and damages, including administrative and legal costs, arising from the applicant’s failure to complete the required improvements, and/or initiate cancellation of the lease or reduce the term of the lease to a period consistent with the portion of the improvements substantially completed in a timely manner according to the best interest of the City. Page 52 Ordinance No. XXXX-2025 Page 13 of 17 New Text Underlined; [DELETED TEXT BRACKETED] (ii) If the application is for a lease extension, the City will terminate the amendment extending the term of the lease or reduce the term of the extension at the City’s sole discretion. 22.10.051 – Principles and Policy of Lease Rates (a) Annual rent will be computed by multiplying the fair market value of the land by a lease rate percentage of eight percent (8%) for each parcel; and (b) The City will determine the fair market value of the land requested to be leased based on an appraisal conducted for the City by an independent real estate appraiser certified under Alaska State statutes and ordered by the City for the purpose of determining annual rent. The appraisal will be paid for by the applicant, and the cost of the appraisal will be credited or refunded to the lessee once development is completed as required by the lease. The fair market value of the land will be adjusted annually based on the rate of inflation determined by the Consumer Price Index (CPI) to determine annual rent; and (c) The City will conduct a land market analysis of City-owned land under lease once every ten (10) years to determine whether a market adjustment in either fair market value of land or lease rate percentage is justified; and (d) If the City determines from the market analysis that a market adjustment to the lease rate percentage is in the best interest of the City, the new lease percentage must be approved by an ordinance and utilized to compute annual rents for the next fiscal year; and (e) If the market analysis or extraordinary circumstances determine a fair market value adjustment is in the best interest of the City, the City will retain the services of an independent real estate appraiser certified under Alaska State statutes to determine the fair market value of all leased land and will use these values to compute annual rents for the next fiscal year; and (f) The City will adjust the annual rent of a lease by giving the lessee written notice at least thirty (30) days prior to application of a new annual rent determination; and (g) If a lessee disagrees with the proposed change in the fair market value of land or lease rate percent (excluding CPI determinations, which cannot be appealed) and cannot informally resolve the issue with the City, the lessee must: (1) Provide notice of appeal in writing within ninety (90) days of notification supported by the written appraisal of a qualified real estate appraiser, selected and paid for by lessee (the “second appraiser”); and (2) The City and the lessee will meet to attempt to resolve the differences between the first appraiser and the second appraiser concerning the fair market value of the land or lease rate percent; and (3) If the City and lessee cannot agree upon the fair market value or lease rate percent then they will direct the first appraiser and the second appraiser to mutually select a third qualified real estate appraiser, paid for jointly by the parties (the “third appraiser”); and (4) Within thirty (30) days after the third appraiser has been appointed, the third appraiser will decide which of the two (2) respective appraisals from the first appraiser and the second appraiser most closely reflects the fair market value of the land or lease rate percent; and (5) The fair market value of the land or lease rate percent will irrefutably be presumed to be the value(s) contained in such appraisal selected by the third appraiser, and the rent will be redetermined based on such value(s); and Page 53 Ordinance No. XXXX-2025 Page 14 of 17 New Text Underlined; [DELETED TEXT BRACKETED] (6) Rent will continue to be paid at the then-applicable rate until any such new rental rate is established, and lessee and the City will promptly pay or refund, as the case may be, any variance in the rent, without interest accruing to the extent to be paid/refunded. 22.10.055 – Provisions Regulating Public Use Purpose. The City Council realizes that only a limited area of tidelands bordering navigable waters is available within the City of Kenai and which is owned by the City of Kenai. It would be in the public interest to ensure that these lands do not pass out of community control at least to the extent that the public would not be deprived of harbor services at reasonable rates in the future. Therefore, areas of City-Owned tidelands which are developable f or the bona fide public purposes as enumerated below will be leased only with the following covenants defined to ensure public use and access at reasonable rates. 22.10.060 – Provision to Be Included in Public Use Lease. KMC 22.10.065 will be included in leases where harbor facilities are constructed to be utilized all or in part for bona fide public uses. 22.10.065 – Public Use: Defined. (a) Public use will mean a use limited in part or in whole to the following: (1) In general, the lessee may use the demised premises or part thereof for any of the following purposes only: (i) Public dock facilities. (ii) Maritime commerce. (iii) Transportation. (iv) Fishing. (v) Boat harbor. (vi) Port and waterfront development purposes. (b) Before lessee may conduct any activities which fall under these general criteria, but are not specifically mentioned above, lessee must obtain written consent of the City. 22.10.066 – Ownership of Improvements (a) Permanent improvements on the premises, excluding site development materials, constructed, placed, or purchased by the lessee remain the lessee’s property as long as a lease for the premises remains in effect with the lessee, including renewals, any period of extension approved by the City pursuant to the provisions of this chapter, or any period of holdover. (b) Unless otherwise provided in a land lease, at the expiration, cancellation, or termination of a lease that is extended or followed by a successive lease, the departing lessee may do one (1) or more of the following: (1) Remove lessee-owned permanent improvements from the premises, remediate any contamination for which the lessee is responsible, and restore the premises to a clean and neat physical condition acceptable to the City within ninety (90) days after the expiration, cancellation, or termination date of the lease; or Page 54 Ordinance No. XXXX-2025 Page 15 of 17 New Text Underlined; [DELETED TEXT BRACKETED] (2) Sell lessee-owned permanent improvements to the succeeding lessee, remove all personal property, remediate any contamination for which the lessee is responsible, and leave the premises in a clean and neat physical condition acceptable to the City within sixty (60) days after notice from the City that the City has approved an application for a lease of the premises by another person or such longer period specified in the notice, but in no event more than one hundred eighty (180) days after the expiration, termination, or cancellation date of the lease. (c) If the lessee does not timely remove or sell the lessee-owned permanent improvements on a premises in accordance with the requirements of this section, any remaining permanent improvements and any remaining personal property of the departing lessee will be considered permanently abandoned. The City may sell, lease, demolish, dispose of, remove, or retain the abandoned property for use as the City determines is in the best interest of the City. The lessee will, within thirty (30) days after being billed by the City, reimburse the City for any costs reasonably incurred by the City, including legal and administrative costs, to demolish, remove, dispose, clear title to, or sell the abandoned property and to remediate any contamination and restore the premises. (d) Site development materials that a lessee places on a premises become part of the City-owned real property and property of the City upon placement. The lessee: (1) Must maintain the site development work and site development materials throughout the term of the lease or successive lease, including any extensions and periods of holdover; and (2) May not remove the site development materials unless the City approves in writing. 22.10.070 – Lease Execution & Utilization. The lease applicant will execute and return the appropriate lease agreement with the City of Kenai within thirty (30) days of mailing the agreement to the applicant. The lease agreement will be prepared in accordance with the requirements of this title. Failure to execute and return the lease agreement within the specified period will result in the forfeiture of all leasing rights. Leased lands will be utilized for purposes within the scope of the application, the terms of the lease and in conformity with the ordinances of the City, and in substantial conformity with the Comprehensive Plan. Utilization or development for other than the allowed uses will constitute a material breach of the lease and subject the lease to cancellation at any time. Failure to substantially complete the development plan for the land will constitute grounds for cancellation. 22.10.071 – Form of Lease. When leasing land under this chapter, the City Manager will use a standard lease form that: (1) Provides a reasonable basis for the lessee’s use of the premises; (2) Complies with the intent of this chapter; (3) Provides for the best interest of the City; (4) Is approved as to form by the City Attorney; and (5) Is adopted by resolution of the City Council. 22.10.072 – Lease Payments. Page 55 Ordinance No. XXXX-2025 Page 16 of 17 New Text Underlined; [DELETED TEXT BRACKETED] (a) Upon execution of the lease, the land becomes taxable to the extent of the lessee’s leasehold interest and lessee will pay all real property taxes levied upon such leasehold interest in these lands, and will pay any special assessments and taxes. (b) Rent will be paid annually in advance unless the lessee submits a written request to the City to pay on a quarterly or monthly basis. The payments will be prorated to conform to the City of Kenai’s fiscal year beginning July 1st and ending June 30th. (c) Lessee will be responsible for all sales taxes due on payments under the lease. 22.10.073 – Special Use Permits The City Council may authorize the City Manager to grant special use permits for the temporary use of real property owned by the City for a period not to exceed one (1) year, without appraisal of the value of the property or public auction, for any purpose compatible with the zoning of the land, and on such terms and for such rentals as the Council will determine. 22.10.075 – Controlled Access. Lessee, for its own protection, may construct or install fences, gates, or other types of barriers to restrict access to portions of the demised premises that are not designated for a public use and may provide reasonable controls for access to public use areas to allow for security for such areas while ensuring reasonable public access. Reasonable public access includes accommodations made for fishing operations during fishing season. Any controlled access measures will be indicated on the lessee’s development plan. 22.10.080 – Use Charges. Lessee will make reasonable and nondiscriminatory charges to the public for use of any of its facilities. 22.10.085 – Penalties. (a) It is unlawful for any person to violate any of the provisions of this chapter and upon conviction thereof will be fined as provided for violations in KMC 13.05.010. Each day such violation is committed or permitted to continue will constitute a separate offense and will be punishable as such hereunder. (b) In addition to or as an alternative to the above penalty provision, the City may impose a civil penalty in an amount as provided by KMC 13.05.010 per day for the violation of any provision of this chapter and seek injunctive relief for any infraction thereof for which the offending party will be charged for reasonable attorney’s fees and costs incurred by the City as awarded by the court. (c) Nothing in this section will be deemed to restrict the City’s exercise of any of its rights pursuant to the lease agreement. Section 6. That City Council Policy No. 20.020 - Standing Commissions and other Advisory Body Procedures as amended and attached is hereby adopted. Section 7. 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 Page 56 Ordinance No. XXXX-2025 Page 17 of 17 New Text Underlined; [DELETED TEXT BRACKETED] that it would have enacted the remainder of this ordinance even without such part, provision, or application. Section 8. 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 7TH DAY OF JANUARY, 2026. ___________________________________ Henry H. Knackstedt, Mayor ATTEST: ___________________________________ Michelle M. Saner, MMC, City Clerk Introduced: Month DD, 2025 Enacted: Month DD, 2026 Effective: Month DD, 2026 Page 57 Page 58 MEMORANDUM TO: Vice Chair Earsley and Planning & Zoning Commission Members FROM: Kevin Buettner, Planning Director DATE: December 4, 2025 SUBJECT: Action/Approval – Establishing Work Session Schedule for January and February 2026 The meeting calendar for the Planning & Zoning Commission include the following future dates through February 28, 2026: • January 14, 2026 • January 28, 2026 • February 11, 2026 • February 25, 2025 Kenai City Council has referred tent camping within the City as a topic of discussion for the Planning & Zoning Commission. The Commission is also actively considering updates to the Conditional Use Permit process. These discussions will necessitate work sessions and/or public hearings into calendar year 2026 to complete these tasks. STAFF RECOMMENDATION • Staff recommends scheduling a Work Session before the January 14, 2026 meeting. The January 14th Work Session would continue the discussion on tent camping. • Staff recommends scheduling a Work Session before the January 28, 2026 meeting or the February 11th meeting. This Work Session would either be to continue the discussion on tent camping, or to restart the discussion on Conditional Use Permits (depending on progress at January 14th meeting). Page 59 November 17, 2025 – 7:30 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 Karina England 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: *2 Planning Commission Resolution a. PC Resolution 2025-30 *3. Administrative Approvals a. Friday Replat; KPB File 2025-034 b. Liebenthal Subdivision 2024 Addition; KPB File 2024-086 c. Lookout Valley Subdivision; KPB File 2025-056 d. River Acres Subdivision Blu River Addition; KPB File 2025-067 e. Snowland Estates 2025; KPB File 2025-019 *4. Final Approvals a. Bailey Estates Karpik Rice Replat; KPB File 2025-001 b. Cape Resurrection Subdivision Sanefur Seavey Replat; KPB File 2024-113 *7. Minutes a. October 27, 2025 Planning Commission Meeting Minutes Motion to approve the consent & regular agendas passed by unanimous vote (9-Yes). Planning Commission Page 60 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) Staff person responsible for all items is Platting Manager Vince Piagentini 1. Building Setback Encroachment Permit (PC Resolution 2025-31); KPB File 2025-161 Swan Surveying / Nienhuis Request: Permits a portion of a build to remain within the building setback on Tract A3A Harvey Subdivision No. 2, Plat KN 82-47 Sterling Area Motion to adopt Planning Commission Resolution 2025-31 granting a building setback encroachment permit passed by unanimous vote (9-Yes) 2. Utility Easement Vacation; KPB File 2025-128V Peninsula Surveying / Matthews, Schollenbert, Wells Request: Vacates a 10’ wide utility easement along the eastern lot line of Lot 1A & associated 10’ wide utility easement along the west lot line of Lot 1B, Bouwens Subdivision #3 Happy Valley Area Motion to grant the vacation as petitioned based on the means of evaluating public necessity established by KPB 20.65, passed by unanimous vote (9-Yes) 3. Utility Easement Vacation (PC Resolution 2025-29); KPB File 2025-156V Edge Surveying & Design / Barrickman Request: Vacates a portion of the 10’ wide utility easement adjacent to Skeeter Street granted by Sterling Heights Scooter’s Replat, Plat KN 93-87 Sterling Area Motion to adopt Planning Commission Resolution 2025-29, granting the vacation as petitioned based on the means of evaluating public necessity established by KPB 20.65, passed by unanimous vote (9-Yes) Public Hearing: Legislative Matters - None F. PLAT COMMITTEE REPORT – The plat committee will review 7 plats. G. OTHER H. PRESENTATIONS/PUBLIC COMMENTS ON ITEMS NOT APPEARING ON THE AGENDA (3 MINUTES PER SPEAKER) Page 61 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, December 8, 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. 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. 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 62 Kenai City Council - Regular Meeting Page 1 of 3 November 19, 2025 Kenai City Council - Regular Meeting November 19, 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; twenty (20) minutes aggregated) D. UNSCHEDULED PUBLIC COMMENTS (Public comments limited to three (3) minutes per speaker; thirty (30) minutes aggregated) E. GLENESE PETTEY APPOINTED. COUNCIL APPOINTMENT 1. Selection of Appointee with the Continuation of Interviews if Needed. [Clerk's Note: Council May Convene into Executive Session to Discuss this Agenda Item which May be a Subject that Tends to Prejudice the Reputation and Character of the Candidate for the Vacant City Council Seat. (AS 44.62.310(C)(2))] 2. Appointee Oath of Office F. PUBLIC HEARINGS 1. ENACTED UNANIMOUSLY AS AMENDED. Ordinance No. 3492-2025 - Increasing Estimated Revenues and Appropriations in the General Fund - Streets Department for Replacement of Damaged Guard Rail on Beaver Loop Road. (Administration) 2. ENACTED UNANIMOUSLY AS AMENDED. Ordinance No. 3493-2025 - Increasing Estimated Revenues and Appropriations in the General Fund - Buildings Department for Replacement of the Cooling System in the City’s Data Center. (Administration) 3. ENACTED UNANIMOUSLY. Ordinance No. 3494-2025 - Amending the Official Zoning Map by Rezoning Seven Lots and One Tract to Urban Residential and Two Tracts to Suburban Residential Along Redoubt Avenue, from 4th Street to Floatplane Road. (Administration) Page 63 Kenai City Council - Regular Meeting Page 2 of 3 November 19, 2025 4. ENACTED UNANIMOUSLY. Ordinance No. 3495-2025 - Authorizing the Reallocation of Capital Project Funds, an Increase to Estimated Revenue and Expenditures, and Approving the Sole-Source Purchase of Two Patient Power Load Systems for Ambulances. (Administration) G. MINUTES 1. *Regular Meeting of November 5, 2025. (City Clerk) H. UNFINISHED BUSINESS I. NEW BUSINESS 1. *Action/Approval - Bills to be Ratified. (Administration) 2. *Action/Approval - Purchase Orders and Purchase Order Amendments Requiring Council Approval in Accordance with KMC 7.15.020. (Administration) 3. *Action/Approval - Amending Special Use Permit for Weaver Brothers, Inc. for Truck Trailer Storage. (Administration) 4. APPROVED UNANIMOUSLY. Action/Approval - Directing the Administration to Bring Forward the Legislation Necessary to Sunset the City of Kenai Harbor Commission. (City Clerk) 5. SCHEDULED FOR 12/17/2025 AT 5:00 P. M. Discussion/Action - Scheduling a Work Session to Discuss Challenger Center. (Administration) J. 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 K. REPORT OF THE MAYOR L. ADMINISTRATION REPORTS 1. City Manager 2. City Attorney 3. City Clerk M. ADDITIONAL PUBLIC COMMENTS 1. Citizens Comments (Public comments limited to five (5) minutes per speaker) 2. Council Comments N. EXECUTIVE SESSION O. PENDING ITEMS P. ADJOURNMENT Page 64 Kenai City Council - Regular Meeting Page 3 of 3 November 19, 2025 Q. 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 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/sNSNAbsnTk6P8efaLT8Mdg Page 65 Kenai City Council - Regular Meeting Page 1 of 3 December 03, 2025 Kenai City Council - Regular Meeting December 03, 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. Bluff Stabilization Project Completion Update, Ronny McPherson, P.E., HDR Alaska Inc. C. SCHEDULED PUBLIC COMMENTS (Public comments limited to ten (10) minutes per speaker; twenty (20) minutes aggregated) 1. Brandi Bell, Kenaitze Indian Tribe Transportation Manager 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. 2025-67 - Authorizing the Purchase of Property Interests from the Kenai Native Association for the Wildwood Drive Rehabilitation Project and Determining that the Public Interest will not be Served by an Appraisal. (Administration) 2. ADOPTED UNANIMOUSLY. Resolution No. 2025-68 - Adopting an Alternative Allocation Method for the Fiscal Year 2026 Shared Fisheries Business Tax Program and Certifying that This Allocation Method Fairly Represents the Distribution of Significant Effects of Fisheries Business Activity in Fisheries Management Area 14: Cook Inlet Area. (Administration) 3. ADOPTED UNANIMOUSLY. Resolution No. 2025-69 - Authorizing a Contract Award for the City Of Kenai Architectural Services Project. (Administration F. MINUTES 1. *Regular Meeting of November 19, 2025. (City Clerk) G. UNFINISHED BUSINESS Page 66 Kenai City Council - Regular Meeting Page 2 of 3 December 03, 2025 H. NEW BUSINESS 1. *Action/Approval - Bills to be Ratified. (Administration) 2. *Action/Approval - Special Use Permit to American Red Cross for Office Space and Parking at the Alaska Regional Fire Training Facility. (Administration) 3. *Action/Approval - Special Use Permit to Echo Lake Meats, LLC for a Vending Machine in the Airport Terminal Building. (Administration) 4. *Action/Approval - Special Use Permit to Aleutian Airways for Warm Storage. (Administration) 5. *Action/Approval - Special Use Permit to Schillings Alaska, Inc. for Snow Storage. (Administration) 6. *Action/Approval - Special Use Permit to Alaska Sure Seal, Inc. for Snow Storage. (Administration) 7. *Ordinance No. 3496-2025 - Increasing Estimated Revenues and Appropriations in the General Fund to Provide Supplemental Funding for Utilities and Building Maintenance Costs in Excess of Budgeted Amounts for the Challenger Learning Center. (Administration) 8. SCHEDULED FOR 1/28/2026 AT 5:00 P. M. Discussion/Action - Scheduling a Joint Work Session with the Kenaitze Indian Tribe. (Knackstedt) 9. SCHEDULED FOR 1/7/2026 AT 4:00 P. M. Discussion/Action - Scheduling a Budget Goals and Capital Improvement Plan Work Session. (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 1. Mayor Proclamation - In Recognition of Kenai Central High School Girls Varsity Volleyball Team at the Alaska Division 3A State Girls Champions for the Year 2025. 2. Mayoral Proclamation - In recognition of the Kenai Central High School Marching Band at the Bands of America Grand National Championships. 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 Page 67 Kenai City Council - Regular Meeting Page 3 of 3 December 03, 2025 M. EXECUTIVE SESSION N. PENDING ITEMS 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 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/vQYOVbySQpGLmhllhjcGjg Page 68 December 12, 2025 PLANNING & ZONING COMMISSION MEETING ADDITIONAL MATERIAL/REVISIONS REQUESTED ADDITIONS TO THE PACKET ACTION ITEM REQUESTED BY PAGE Add Item F.2 Comments Received & Cover Page • Email Correspondence Planning Director 1-2 Add Item F.2 Comments Received • Email Correspondence Planning Director 3 Add Item F.2 Comments Received • Email Correspondence Planning Director 4 Add Item F.2 Comments Received • Written Correspondence Planning Director 5-6 From:Michael Bernard To:Planning Department Subject:Salmo Circle Conditional Use Permit Date:Sunday, December 7, 2025 8:58:38 AM CAUTION: This email originated from outside your organization. Exercise caution when opening attachments or clicking links, especially from unknown senders. This email serves to address my concerns for the request of a conditional use permit at 1606 Salmo Circle. As a resident of the Redoubt Terrace Subdivision, I am in opposition of this request. From:Matthew Pyhala To:Planning Department Subject:Conditional Use Permit-1606 Salmo Cir Date:Wednesday, December 10, 2025 11:55:17 AM CAUTION: This email originated from outside your organization. Exercise caution when opening attachments or clicking links, especially from unknown senders. To Whom It May Concern: My name is Matthew Pyhala. My wife, Sarah, and I live at 1600 Salmo Circle, in the cul de sac where the Conditional Use Permit is being applied for. As nearby neighbors to the property for the proposed automotive repair business, we would be affected more than others. With this in mind, we have no reservation nor objection to the approval of said Conditional Use Permit. We are confident that our neighbor would conduct business in a professional manner that would not negatively impact the harmony of our neighborhood. We fully support approving the Conditional Use Permit for an automotive repair business at 1606 Salmo Circle, Kenai. With Kind Regards, Matthew Pyhala 1600 Salmo Cir, Kenai From:Kevin Buettner To:Jessica See Subject:FW: Redoubt Terrace subdivision Date:Wednesday, December 10, 2025 11:31:36 AM For a laydown Kevin Buettner, AICP, LEED AP, CNU-A Planning Director (907) 283-8235 (O) | (907) 971-0867 (M) www.kenai.city -----Original Message----- From: Lisa Anderson <cleanfreakak@icloud.com> Sent: Tuesday, December 9, 2025 10:21 PM To: Kevin Buettner <kbuettner@kenai.city> Subject: Redoubt Terrace subdivision CAUTION: This email originated from outside your organization. Exercise caution when opening attachments or clicking links, especially from unknown senders. Sent from my iPhone. Dear City of Kenai, planning and zoning. In regards to the permit for a auto repair shop in the neighborhood.. I strongly oppose this ! The traffic is already ridiculous with the little streets with no sidewalks. I think it’s absurd that it would even be considered. The last thing we need in the middle of our neighborhood is more traffic speeding through ,, like the guy applying for the permit. Not to mention the environmental issues that could arise, such as leaky fluids of any kind that kids or pets could come across. And what does that do for our property values ? Thanks for considering my opinion. Sincerely Lisa 30 yr resident