HomeMy WebLinkAboutOrdinance No. 3510-2026 SubstituteIV
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KENAI
CITY OF KENAI
ORDINANCE NO. 3510-2026 SUBSTITUTE
Sponsored by: Administration
AN ORDINANCE AMENDING THE OFFICIAL ZONING MAP BY REZONING A PORTION OF THE
PROPERTY AT 10060 KENAI SPUR HIGHWAY FROM CONSERVATION TO SUBURBAN
RESIDENTIAL ZONING DISTRICT.
WHEREAS, the property located at 10060 Kenai Spur Highway and known as Kenai Peninsula Borough
(KPB) parcel number 04501057 is currently zoned as Conservation (C); and,
WHEREAS, Kenai Municipal Code 14.20.070 provides the intention of the Conservation Zone is to
preserve open areas as watersheds and wildlife reserve lands for aircraft approach zones and other
airport related uses; and,
WHEREAS, the City of Kenai applied to the Federal Aviation Administration (FAA) Alaska Region for a
deed of release to remove FAA restrictions on an 81-acre parcel located east of the airport; and,
WHEREAS, the Deed of Release was approved by the FAA removing the aforementioned restrictions
and was recorded on September 15, 2025; and,
WHEREAS, the City recognizes that upland portions of the larger parcel may be desirable for new
residential development near existing subdivisions; and,
WHEREAS, the metes and bounds description of the portion of KPB 04501057 is as follows:
Commencing at the center '/4 corner of Section 33, Township 6 North, Range 11 West, Seward Meridian
as shown on Plat K-1447, Kenai Recording District, thence SO°05'00"E 660 feet to point No. 1, the TRUE
POINT OF BEGINNING; thence S89°55'00"W 410 feet to point No. 2; thence NO°05'00"W 1,980 feet to
point No. 3; thence N89°55'00"E 410 Feet to point No. 4; thence S0005'00"E 1,980 feet more or less to
point No. 1, the TRUE POINT OF BEGINNING, containing 18.636 acres; and,
WHEREAS, the City of Kenai is initiating an amendment to the Kenai Official Zoning Map through the
Kenai Planning & Zoning Commission in accordance with KMC Section 14.20.270(b)(1)(B) - Amendment
procedures; and,
WHEREAS, the area proposed to be rezoned is much larger than the minimum of one acre required for
a rezone; and,
WHEREAS, the proposed amendment to the zoning ordinance is not substantially the same as any other
unapproved proposed amendment submitted within the previous nine (9) months; and,
WHEREAS, the rezone is consistent with the Imagine Kenai 2030 Comprehensive Plan and largely aligns
with the Land Use Plan and addresses Goal 3 — Land Use: Develop land use strategies to implement a
forward -looking approach to community growth and development; and,
WHEREAS, at their regularly scheduled meeting held on February 25, 2026, the City of Kenai Planning
and Zoning Commission recommended approval of the rezone as presented at the time, but
recommended the property to be rezoned to Rural Residential 1 (RR1) instead of Suburban Residential
as proposed by Administration; and,
New Text Underlined; [DELETED TEXT BRACKETED]
Ordinance No. 3510-2026 SUBSTITUTE
Page 2 of 2
WHEREAS, at their regularly scheduled meeting held on March 18, 2026, the City Council referred
Ordinance 3510-2026 to the Planning & Zoning Commission; and,
WHEREAS, at their regularly scheduled meeting held on April 29, 2026, the Planning & Zoning
Commission recommended that the City Council rezone the portion of the property at 10060 Kenai Spur
Highway from Conservation to Rural Residential; and,
WHEREAS, at their regularly scheduled meeting held on May 27, 2026, the Planning & Zoning
Commission recommended that the City Council rezone the portion of the property at 10060 Kenai Spur
Highway from Conservation to Rural Residential.
NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, AS
FOLLOWS:
Section 1. Amendment of City of Kenai Official Zoning Map: That City of Kenai, Official Zoning Map
is hereby amended as follows: Rezone the portion of parcel 04501057 (10060 Kenai Spur Highway)
described as: Commencing at the center '/4 corner of Section 33, Township 6 North, Range 11 West,
Seward Meridian as shown on Plat K-1447, Kenai Recording District, thence SO°05'00"E 660 feet to point
No. 1, the TRUE POINT OF BEGINNING; thence S89055'00"W 410 feet to point No. 2; thence
N0005'00"W 1,980 feet to point No. 3; thence N89°55'00"E 410 Feet to point No. 4; thence S0005'00"E
1,980 feet more or less to point No. 1, the TRUE POINT OF BEGINNING, containing 18.636 acres from
Conservation (C) to Suburban Residential (RS) zoning district.
Section 2. 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
that it would have enacted the remainder of this ordinance even without such part, provision, or
application.
Section 3. Effective Date: That pursuant to KMC 1.15.070(f), this ordinance shall take effect 30 days
after enactment. I I/
ENACTED BY THE COUNCIL OF THE CITY OF KEN,
Introduced: March 4, 2026
Postponed to May 6, 2026: April 1, 2026
Postponed as Amended to June 3, 2026: May 6, 2026
Enacted: June 3, 2026
Effective: July 3, 2026
New Text Underlined; [DELETED TEXT BRACKETED]
L
I000,
City of Kenai
MEMORANDUM
K E N 4
210 Fidalgo Ave, Kenai, AK 99611-7794 1907.283.75351 www.kenai.city
TO: Mayor Knackstedt and Council Members
THROUGH: Terry Eubank, City Manager
FROM: Kevin Buettner, Planning Director
DATE: March 20, 2026
SUBJECT: Ordinance No. 3510-2026 (substitute) — Amending the Official Zoning Map
by Rezoning a Portion of the Property at 10060 Kenai Spur Highway from
Conservation to Suburban Residential Zoning District.
The Administration requested a partial rezone of an 81-acre parcel located at 10060 Kenai Spur
Highway from Conservation to the Suburban Residential (RS) zoning district. The RS zone is
intended to provide for medium -density residential development in areas served by common utility
systems while maintaining adequate light, air, privacy, and the residential character of
neighborhoods. The parcel is adjacent to existing residential neighborhoods within walking,
biking, or short driving distance to commercial services, including Walmart, Home Depot, and
Safeway.
In August 2025, the City applied to the Federal Aviation Administration (FAA) Alaska Region for
a deed of release to remove FAA restrictions on the parcel, located east of the airport. The FAA
approved the Deed of Release on September 15, 2025, and it was subsequently recorded with
the State of Alaska. The release removed several restrictions and allows the land to be leased for
other than aeronautical uses and also may be sold for fair market value if authorized by the City.
Most of the parcel consists of lowland drainage areas and associated wetlands that are not
suitable for development. However, 18.636 acres of uplands along the eastern edge of the parcel,
adjacent to existing residential neighborhoods, may be suitable for residential development. This
area is described by metes and bounds as: Commencing at the center'/4 corner of Section 33,
Township 6 North, Range 11 West, Seward Meridian as shown on Plat K-1447, Kenai Recording
District, thence SO°05'00"E 660 feet to point No. 1, the TRUE POINT OF BEGINNING; thence
S89055'00"W 410 feet to point No. 2; thence N0005'00"W 1,980 feet to point No. 3; thence
N89055'00"E 410 Feet to point No. 4; thence SO°05'00"E 1,980 feet more or less to point No. 1,
the TRUE POINT OF BEGINNING, containing approximately 18.636 acres. These upland areas
are near existing City utilities located at the corner of Princess Lane and Magic Avenue. Under
the current Conservation zoning, residential development is only allowed through a Conditional
Use Permit.
Rezoning the suitable upland areas to Suburban Residential would align with the adjacent
residential zoning districts and allow low to medium density housing in an area where utilities are
available. The property is currently designated Parks, Recreation, and Open Space in the Imagine
Kenai 2030 Comprehensive Plan. Most of the parcel would remain open space due to the
drainage conditions, while the 18.636 acres of upland area could support residential development,
mostly on the eastern edge has upland portions that would be suitable following subdivision of
the property. A Comprehensive Plan amendment is not required because residential uses are
allowed in the Conservation zone, with a Conditional Use Permit. The City anticipates updating
the Comprehensive Plan in the coming years, which may include a new Land Use Plan.
The Comprehensive Plan supports this rezoning in the following identified goals:
Goal 3 — Land Use: Develop land use strategies to implement a forward -looking
approach to community growth and development.
LU-3: Review existing zoning and subdivision codes to determine if they address current
and future land uses adequately
The City recently conducted a statistically valid community survey that identified housing as a
significant concern. Seventy-four percent of respondents indicated Kenai has a housing
affordability or affordability and availability problem, and 46.7 percent said housing affordability
and availability should be a top priority over the next five years. Portions of this parcel were
identified as one of the few remaining City -owned properties adjacent to existing utilities that could
support residential development without requiring major new infrastructure.
At its February 25, 2026 meeting, the Planning & Zoning Commission considered the
Administration's request to rezone the parcel to Suburban Residential. Several members of the
public spoke, raising concerns about potential impacts including development of wetlands, effects
on nearby wells and septic systems, traffic and road conditions, and the possible extension of
Magic Avenue. Others emphasized the ecological importance of the wetlands and ravine areas
that serve as headwaters to a tributary of the Kenai River and salmon habitat. During discussion,
staff clarified that only 18.636 acres of upland near existing utilities would likely be suitable for
residential development and that wetlands and lowland areas would remain protected.
Development would still require subdivision, platting, and developer -funded infrastructure
improvements.
Following discussion, the Commission amended the proposal to recommend rezoning the
property to Rural Residential 1 (RR-1) rather than Suburban Residential (RS), and the amended
motion passed.
The Administration believes rezoning to RR-1 will likely deter development of this property due to
the required minimum lots size of 20,000 square feet compared to 7,200 square feet in the RS
zone. Development costs, installation of roads and utilities, are significant and requiring lots of at
least 20,000 square feet would make development uneconomical. The RR-1 zone also prohibits
structures with more than five dwelling units and requires a conditional use permit for structures
with more than three dwelling units. Because the property is within walking, biking, or short driving
distance to commercial services, it is an ideal location for higher density development. While the
Page 2 of 3
The City of Kenai I www.kenai.city
application is not yet complete, the Administration is working with a developer who is interested
in constructing a multifamily development in Kenai which may not be permitted in a RR-1 zone.
Additionally, after further consideration, Administration believes that for purposes of future
development of the property, this is an appropriate situation for creating a split zone. Only the
developable uplands portion of the lot would be rezoned, and the lowland wetlands would remain
conservation. This would facilitate a future subdivision for development.
On March 18, 2026, City Council referred the request back to the Planning & Zoning Commission
to reconsider the Administration's original request to amend the zoning to RS and to consider a
split -zone approach. Under this approach, the upland portion of the parcel suitable for residential
development would be rezoned to IRS, while the larger portion of the property containing
drainages and associated wetlands would remain in the Conservation zoning district. While split
zones are generally not considered best practice, in this case a split zone using metes and bounds
to delineate the portion of the larger parcel that would be considered for rezoning the portion of
the lot suitable for development from what should remain open space and not be developed. A
split zone will also negate the need to rezone the remaining parcel back to Conservation once
subdivision of the developable portion is complete.
This substitute ordinance will document the City Council action on March 18, 2026, as well as
delineate the portion of the larger parcel to be considered by the Planning & Zoning Commission.
The Administration also respectfully requests that you introduce this substitute ordinance and
delay the public hearing until the May 6, 2026 City Council meeting to allow the Planning & Zoning
Commission to hold their public hearing and make recommendation at the their April 29, 2026
meeting.
Thank you for your consideration
Attachments
Location Map
FAA Deed of Release
P&Z Resolution PZ2026-03
Staff Report PZ2026-03
Page 3 of 3
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The City of Kenai I www.kenai.city
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DOCUMENT s.�saon 01:34 vm Pages: 1of.
ELECTRONICALLY IIIIIVIIIIIIIIIIVIIIIIIIIIIVIIIVIIIIIIIIIIIIVIIIIIIVIIIIIIIIIIIIIVIII
RECORDED
DEED OF RELEASE
This instrument, a Deed of Release, made by the United States of America, acting by and through the
Chief, Airports Division, Alaskan Region, Federal Aviation Administration, under and pursuant to the
powers and authority contained in the provisions of Public Law 81-311(63 Stat. 700), as amended, to the
City of Kenai, a body politic under the laws of the State of Alaska, Witnesseth:
-`-' - -`V1/HEREQS; The United States of America, acting by and through the Administrator of General Services
under and pursuant to the powers and authority contained in the provisions of the Federal Property and
Administrative Services Act of 1949 (83 Stat. 377) and the Surplus Property Act of 1944 (58 Stat. 765), as
amended, and regulations and orders promulgated thereunder, by instrument entitled "Quitclaim Deed"
and dated December 1,1963, did remise, release, and forever quitclaim to the City of Kenai, its successors
and assigns, all rights, title and interests of the United States in and to certain real property located near
Kenai, Alaska, under and subject to the reservations, exceptions, restrictions, and conditions contained in
the Deed; and �e, Z-4 44eS 303-3tZ Ki_A "' R400eCI rq N'076/—,
WHEREAS, the City of Kenai has requested the Administrator of the Federal Aviation Administration to
release an area of land hereinafter described from all conditions, reservations, and restrictions contained
in said "Quitclaim Deed" to permit sale or long-term lease of the property for non -airport use, and has by
appropriate resolution No. 70-5 dated March 18, 1970, obligated itself to devote the revenues received
from the lease or sale of the hereinafter described property exclusively for the development,
- — - --- - _ - - —
mprovement;operation, or maintenance of the Kenai Municipal Airport; and
WHEREAS, The Administrator or authorized delegate of the Federal Aviation Administration, under and
pursuant to the powers and authority contained in Public Law 81-311(63 Stat. 700) is authorized to grant
a release from any of the terms, conditions, reservations, and restrictions contained in, and to convey,
quitclaim, or release any right or interest reserved to the United States by, any instrument of disposal
under which surplus airport property was conveyed to a non -Federal public agency pursuant to Section
13 of the Surplus Property Act of 1944 (58 Stat. 765); and
WHEREAS, the Administrator of the Federal Aviation
eRecorded Document
Administration has determined that said land no longer serves the purpose for which it was transferred
and, that such property can be used, leased, sold, or disposed of by the City of Kenai for other than airport
Purposes without materially and adversely affecting the development, improvement, operation, or
maintenance of the Kenai Municipal Airport; and
WHEREAS, the City of Kenai covenants and agrees as follows:.
(1) To .use the revenues received from the sale or lease of the hereinafter -described property,
exclusively for the development, improvement; operation of the Kenai Municipal Airport.
(2) To restrict the height of structures, objects of natural growth and other obstacles on the.
-- -hereinafter-described.realproperty49-a freight of not more than 242 feet -above mean.sea-.level;,--,
(3) To prevent any use of the real property.hereinafter described which would interfere with the
landing or taking off aircraft at. the Kenai Municipal Airport or. otherwise .Constitute an airport
hazard.
NOW, THEREFORE, for and in consideration of the above -expressed recitals and of the benefits to accrue
to the United States: and to civil aviation, the United States of America, upon inclusion by the City of Kenai
in a Lease or Instrument of Transfer conveying title to the hereinafter described real property of provisions
as follows:
(1) That the City of Kenai reserves unto itself, successors, transferees; and assigns, for the use and
benefit of the public a right of flight for the passage of aircraft in the space above the.surface of
the real property hereinafter described, together with the right to cause in said air space such
noise as maybe inherent in the operation of aircraft, now known or hereafter used, for navigation
of or flight in the said airspace; and for use of said airspace for landing on taking off from or
operating on Kenai Municipal Airport;
(2) That the Grantee expressly agrees for itself, heirs, executors, administrators, successors,
transferees, and assigns to restrict the height of structures, objects of natural growth and other
obstructions on the hereinafter described real property to a height of not more than 242 feet
above mean sea level.
(3) That the Grantee expressly agrees for itself, heirs, executors, administrators, transferees, and
assigns to prevent any use of the herein- after described real property which would interfere with
landing or taking off of aircraft at the Kenai Municipal Airport or otherwise constitute an airport
hazard.
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eRecorded Document 302-2025-006725-0
(4) All covenants heretofore stated shall run with the land and shall inure to the benefit of, and be
binding upon the heirs, executors, administrators, successors, transferees, and assigns of the
parties hereto.
Hereby releases the said real property from the conditions, reservations, and restrictions as contained
in the above -mentioned Instrument of Transfer from the United States of America to the City of Kenai
dated December 1,1963, which real property is described as follows:
T6N R11W Section 33 Seward Meridian KN W1/2 lying N of Kenai Spur Highway & East of
Marathon Road excluding all Baron Park Subs & Kenai Industrial Park Sub.
By its acceptance of this Deed of Release the City of Kenai covenants and agrees for itself, successors,
transferees, and assigns, to comply with and observe all of the conditions and limitations hereof, which
are expressly limited to the above- described real property.
IN WITNESS WHEREOF, the United States of America has caused this Deed of Release
to be executed as of the _LLday of Se levy 2025.
UNITED STATES OF AMERICA
By
Accepted:
CITY OF KENAI
By
Ter Eubank
City Manager
Laurie Suttmeier
Division Manager A rrp-orts DDivision
Alaskan Region
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eRecorded Document 302-2025-006725-0
State of Alaska
3rd
ALASKA NOTARY ACKNOWLEDGEMENT
Judicial District of the Municipality of Anchorage
On this 10th day of September in the year 2025 ,,before me, the undersigned
notary public, personally appeared:
Laurie J. Suttmeier
known to me to be the person
whose name is subscribed to the within instrument and acknowledged that she executed the
same for the purposes therein contained.
�. -•enson, Public
200601001
Commission Number
My Commission Expires:
with office
Pie,�wrn -�D'.
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eRecorded Document
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(Seal)
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302-2025-006725-0
CITY OF KENAI
PLANNING AND ZONING COMMISSION
RESOLUTION PZ2026-03
A RESOLUTION RECOMMENDING THE KENAI CITY COUNCIL APPROVE THE REZONE
FROM CONSERVATION (C) TO RURAL RESIDENTIAL 1 (RR-1) ZONING DISTRICT FOR THE
FOLLOWING PROPERTIES AND AS DEPICTED ON THE ATTACHED BOUNDARY MAP.
Parcel No. Address Lot Size Legal Description
T 6N R 11W SEC 33 SEWARD
04501057 10060 Kenai Spur Hwy. 81.0 acres MERIDIAN KN W1/2 LYING N OF
KENAI SPUR HWY & E OF
MARATHON RD EXCL ALL
BARON PARK SUBS & KENAI
INDUSTRIAL PARK SUB
WHEREAS, the property located at 10060 Kenai Spur Highway and known as Kenai Peninsula
Borough Parcel number 04501057, as described above, is currently zoned as Conservation (C);
and,
WHEREAS, Kenai Municipal Code (KMC) 14.20.070 intends the Conservation Zone to apply to
areas which should be preserved primarily as open areas and as watersheds and wildlife reserves.
Airport and related uses have been included in this zone to allow for the reservation of aircraft
approach zones; and,
WHEREAS, the City of Kenai applied to the Federal Aviation Administration (FAA) Alaska Region
for a deed of release to remove FAA restrictions on an 81-acre parcel located east of the airport;
and,
WHEREAS, the Deed of Release was approved by the FAA removing the aforementioned
restrictions and was recorded on September 15, 2025; and,
WHEREAS, the City recognizes that upland portions of the larger parcel may be desirable for new
residential development near existing subdivisions; and,
WHEREAS, the City of Kenai is initiating an amendment to the Kenai Official Zoning Map through
the Kenai Planning & Zoning Commission in accordance with KMC Section 14.20.270(b)(1)(B) -
Amendment procedures; and,
WHEREAS, the area proposed to be rezoned contains a minimum of one (1) acre (excluding street
or alley rights -of -way); and,
WHEREAS, the proposed amendment to the zoning ordinance is not substantially the same as
Resolution No. PZ2026-03
Page 2 of 3
any other unapproved proposed amendment submitted within the previous nine (9) months; and,
WHEREAS, a map has been included of the proposed rezone area; and,
WHEREAS, the City of Kenai Planning and Zoning Department conducted a duly advertised
public hearing, following requirements outlined in Kenai Municipal Code 14.20.280 for public
hearings and notifications.
WHEREAS, the Planning and Zoning Commission finds:
The current zoning district, Conservation (C) is intended to apply to areas which should be
preserved primarily as open areas and as watersheds and wildlife reserves. Airport and
related uses have been included in this zone to allow for the reservation of aircraft approach
zones. The existing Conservation zone is not the preferred land use for this area as there
are no longer FAA restrictions on the property and upland portions of the parcel may be
desirable for new residential development.
2. The rezone to Rural Residential 1 Zone would allow for low -density residential development
adjacent to existing residential neighborhoods within walking, biking, or short driving
distance to commercial services. City utilities are located at the southeast corner of the
parcel.
3. The existing land use classification states that the area is to be Parks, Recreation, and Open
Space. A majority of the parcel will remain as open space, as it lies within a large drainage
area and is not suited for development. Approximately 10-15 acres of the parcel, mostly on
the eastern edge has upland portions that would be suitable for residential development, but
the 81-acre parcel would require subdivision prior to development.
4. The proposed rezone to RR-1 would align with the current low density residential character
of the adjoining neighborhood.
NOW, THEREFORE, BE IT RECOMMENDED BY THE PLANNING AND ZONING COMMISSION
OF THE CITY OF KENAI, ALASKA:
Section 1. That Kenai City Council approve the rezone request for the property located at 10060
Kenai Spur Highway from Conservation (C) to Rural Residential 1 (RR-1) zoning
district.
Section 2. That the Commission will forward its written recommendation to the Kenai City Council,
along with all certified minutes and public records relating to the proposed amendment.
PASSED BY THE PLANNING AND ZONING COMMISSION OF THE CITY OF KENAI, ALASKA,
THIS 25TH DAY OF FEBRUARY, 2026.
..e d
anne Keaton, Chair
Resolution No. PZ2026-03
Page 3 of 3
ATTEST:
C
A, LL
Lo an Parki, Deputy City Clerk
j V 1�
C171V STAFF REPORT
PLANNING &.ZONING DEPARTMENT
KENAI
TO: Planning and Zoning Commission
FROM: Kevin Buettner, Planning Director
DATE: February 17, 2026
SUBJECT: Resolution PZ2026-03 — Rezone One 81-Acre Parcel from Conservation to
Suburban Residential (RS) Zoning District
Request The applicant is requesting a rezone of one (1) parcel from
Conservation to the Suburban Residential (RS) Zoning District.
Staff Adopt Resolution PZ2026-03 recommending approval of a
Recommendation rezone of one (1) parcel from Conservation to the Suburban
Residential (RS) Zoning District.
Applicants: City of Kenai
Attn: Planning & Zoning Department/Lands Administration
210 Fidalgo Ave.
Kenai, AK 99611
Parcel No. Address Lot Size
04501057 10060 Kenai Spur Hwy. 81 acres
Legal Description: T 6N R 11W SEC 33 SEWARD MERIDIAN KN W1/2
LYING N OF KENAI SPUR HWY & E OF MARATHON RD
EXCL ALL BARON PARK SUBS & KENAI INDUSTRIAL
PARK SUB
Current Zoning: Conservation (C)
Proposed Zoning: Suburban Residential (RS)
Current Land Use Vacant Land
Land Management Plan: Mixed — Dispose / Retain
Land Use Plan Parks, Recreation, & Open Space
SUMMARY
The City of Kenai is seeking to rezone one 81-acre parcel located at 10060 Kenai Spur Highway
from Conservation to the Suburban Residential (RS) zoning district. The purpose of the rezone is
to allow for low- to medium -density residential development adjacent to existing residential
neighborhoods within walking, biking, or short driving distance to commercial services.
ANALYSIS
Pursuant to KMC Section 14.20.270, the initiation of a Zoning Map Amendment may be initiated
by the Kenai Planning & Zoning Commission. This parcel is wholly owned by the City of Kenai.
The area to be rezoned contains far above the minimum of one (1) acre (excluding street or alley
rights -of -way) unless the amendment enlarges an adjacent district boundary.
Existinq and Proposed Zoning
The existing zoning is Conservation (C) and the intent as outlined in KMC Section 14.20.070
states the following:
The C-Zone is intended to apply to areas which should be preserved primarily as
open areas and as watersheds and wildlife reserves. Airport and related uses have
been included in this zone to allow for the reservation of aircraft approach zones.
It is intended that this zone shall apply mainly to publicly owned land.
FindingR In August 2025, the applied to the Federal Aviation Administration (FAA) Alaska
Regionfor a deed of release to remove FAA restrictions on an 81-acre parcel located east of
the airport. On September 15, 2025, the Deed of Release was approved by the FAA and
recorded with the State of Alaska. This deed of release removed a number of restrictions and
allows this land to be leased for other than aeronautical uses, and also may be sold for fair
market prices, if authorized by the City. Furthermore, the proposed rezone area contains a
large drainage area throughout most of the western sections of the parcel. Upland portions
along the eastern side of the parcel are adjacent to existing residential neighborhoods.
Approximately 10-15 acres of these uplands are suitable for residential development.
Conservation only allows for residential development with a Conditional Use Permit.
The proposed zoning is Suburban Residential and the intent as outlined in KMC Section
14.20.090 states the following:
The RS Zone is intended to provide for medium density residential development in areas
which will be provided with common utility systems. The specific intent in establishing this
zone is:
(1) To separate residential structures to an extent which will allow for adequate
light, air, and privacy;
(2) To prohibit uses which would:
(A) Violate the residential character of the environment,
(8) Generate heavy traffic in predominantly residential areas.
I . _ : The rezone to RS zone would align with the adjacent residential zoning districts.
As mentioned above, approximately 10-15 acres of upland portions of the parcel would be
suitable for residential development. Suburban Residential is appropriate in areas where there
are common utility systems, in this case City utilities are available at the corner of Princess
Resolution No. PZ2026-03
Rezone from Conservation (C) to Suburban Residential (RS)
10060 Kenai Spur Highway
Page 2 of 4
Lane and Magic Avenue. This is on the southeastern corner of one of the upland portions.
Comprehensive Plan — Land Use Classification
The existing land use classification is be Parks, Recreation, and Open Space and the intent as
outlined in the Imagine Kenai 2030 Comprehensive Plan ("Comprehensive Plan") states the
following:
Intended for those public recreation facilities, as well as undeveloped lands that provide for
the conservation of natural or scenic resources. These areas can be used for a variety of
passive and active outdoor and indoor sports and recreational activities. Areas that may be
suitable for future natural resource development may be included in this category.
Findings: The existing land use classification states that the area is to be Parks, Recreation,
and Open Space. A majority of the parcel will remain as open space, as it lies within a large
lowland drainage area and is not suited for development. Approximately 10-15 acres of the
parcel, mostly on the eastern edge has upland portions that would be suitable for residential
development, but the 81-acre parcel would require subdivision prior to development.
An amendment to the land use map in the Comprehensive Plan is not currently required, as
residential uses are allowable in Conservation zone, albeit as conditional uses. The City
anticipates updating the Comprehensive Plan within a couple years, and a new Land Use
Plan may be developed as a part of this process.
The Comprehensive Plan supports this rezoning in the following identified goal:
Goal 3 — Land Use: Develop land use strategies to implement a forward -looking
approach to community growth and development.
• LU-3: Review existing zoning and subdivision codes to determine if they
address current and future land uses adequately.
Findings: The proposed rezone to RS would align largely with the intent of keeping a majority
of the lowland drainage areas protected, as the parcel would be subdivided and with the City
of Kenai retaining ownership. This would also align with supporting Workforce Development
by allowing for new low to medium density residential development in appropriate areas
served by City utilities.
Existing Use
In the proposed rezone area, the land is vacant.
Findings: The proposed rezone to RS zone would allow for upland portions of the parcel,
largely on the eastern side, would allow for low- to medium density residential development
adjoining and existing residential neighborhood, which has been identified as a crucial need
for the City.
Resolution No. PZ2026-03
Rezone from Conservation (C) to Suburban Residential (RS)
10060 Kenai Spur Highway
Page 3 of 4
PUBLIC NOTICE
Pursuant to Kenai Municipal Code 14.20.280 notices of the public hearing for the rezone were
mailed to property owners within a three hundred -foot (300') periphery of the subject properties.
City staff published notice of the public hearing in the Peninsula Clarion, and notification was
posted.
No public comments have been received as -of -date.
7AFF RECOMMENDATION
Based on the findings and analysis in this staff report, Staff recommends the Planning & Zoning
Commission recommend approval of the rezone request for the property located at 10060 Kenai
Spur Highway from Conservation (C) to Suburban Residential (RS) zoning district. Planning &
Zoning Commission's recommendation will be forwarded to City Council for consideration.
ATTACHMENTS
Zoning Map — Existing and Proposed
Application
Aerial Map
Deed of Release
Resolution No. PZ2026-03
Rezone from Conservation (C) to Suburban Residential (RS)
10060 Kenai Spur Highway
Page 4 of 4
L
I000,
City of Kenai
MEMORANDUM
K E N 4
210 Fidalgo Ave, Kenai, AK 99611-7794 1907.283.75351 www.kenai.city
TO: Mayor Knackstedt and Council Members
THROUGH: Terry Eubank, City Manager
FROM: Kevin Buettner, Planning Director
DATE: April 30, 2026
SUBJECT: Ordinance 3510-2026 Requested Amendment
This memo requests an amendment to Ordinance 3510-2026 Substitute which will amend the
official zoning map by rezoning a portion of the property at 10060 Kenai Spur Highway from
Conservation to Suburban Residential Zoning District.
At the regularly scheduled Planning & Zoning Commission meeting of April 29, 2026, the
Commission voted to recommend that City Council enact Ordinance 3510-2026 Substitute with
an amendment.
The following amendment is respectfully requested.
Motion
Amend the thirteenth WHEREAS by filling in the blank with "that the City Council rezone the
portion of the property at 10060 Kenai Spur Highway from Conservation to Rural Residential".
The amended WHEREAS, after amendment will read:
WHEREAS, at their regularly scheduled meeting held on April 29, 2026, the Planning &
Zoning Commission recommended that the City Council rezone the portion of the property at
10060 Kenai Spur Highway from Conservation to Rural Residential.
Thank you for your consideration.
L
I000,
City of Kenai
MEMORANDUM
K E N 4
210 Fidalgo Ave, Kenai, AK 99611-7794 1907.283.75351 www.kenai.city
TO: Mayor Knackstedt and Council Members
THROUGH: Terry Eubank, City Manager
FROM: Kevin Buettner, Planning Director
DATE: May 28, 2026
SUBJECT: Ordinance 3510-2026 Substitute - Requested Amendment.
This memo requests an amendment to Ordinance 3510-2026 Substitute which will amend the
official zoning map by rezoning a portion of the property at 10060 Kenai Spur Highway from
Conservation to Suburban Residential Zoning District.
At the regularly scheduled Planning & Zoning Commission meeting of May 27, 2026, the
Commission voted to recommend that City Council enact Ordinance 3510-2026 Substitute with
an amendment.
The following amendment is respectfully requested.
Motion
Add a fourteenth WHEREAS statement. The new WHEREAS, will read:
WHEREAS, at their regularly scheduled meeting held on May 27, 2026, the Planning &
Zoning Commission recommended that the City Council rezone the portion of the property at
10060 Kenai Sour Hiahwav from Conservation to Rural Residential.
Thank you for your consideration.