HomeMy WebLinkAboutOrdinance No. 3532-2026KENAI
CITY OF KENAI
ORDINANCE NO. 3532-2026
Sponsored by: Administration
AN ORDINANCE DETERMINING THAT THE PROPOSED SUBDIVISION OF DENA'INA POINT
ESTATES SERVES OTHER CITY PURPOSES, AUTHORIZING THE CITY TO SHARE IN
SUBDIVISION COSTS, AND INCREASING ESTIMATED REVENUES AND APPROPRIATIONS IN THE
GENERAL FUND - LANDS ADMINISTRATION IN THE AMOUNT OF $54,219.
WHEREAS, Kenai Municipal Code 22.05.025(c) provides that lease applicants proposing a subdivision
are responsible for subdivision costs unless the City Council determines that the subdivision serves other
City purposes; and,
WHEREAS, if the Council determines that other City purposes are served, the Council may, in its sole
discretion, share in subdivision costs in an amount it determines is reasonable given the benefit to the
City; and,
WHEREAS, the proposed subdivision of Dena'ina Point Estates will facilitate the development and
disposition of City -owned property and therefore serves other City purposes; and,
WHEREAS, the City Council finds that sharing in subdivision costs in an amount not to exceed $54,219
is reasonable given the benefit to the City.
NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, AS
FOLLOWS:
Section 1. The City Council determines, pursuant to KMC 22.05.025(c), that the proposed
subdivision of Dena'ina Point Estates serves other City purposes and authorizes the City Manager to
share in subdivision costs in an amount not to exceed $54,219.
Section 2. That estimated revenues and appropriations in the General Fund — Lands Administration
are hereby increased as follows:
General Fund:
Increase Estimated Revenues:
Appropriation of Fund Balance $54 21
Increase Appropriations:
Land Administration — Professional Services $54,219
Section 3. 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 4. Effective Date: That pursuant to KMC 1.15.070(f), this ordinance shall take effect
immediately upon enactment.
New Text Underlined; [DELETED TEXT BRACKETED]
Ordinance No. 3532-2026
Page 2 of 2
ENACTED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, T
ATTEST:
S C, City Clerk
Approved by Finance:
ry H. Kn
Introduced:
Enacted:
Effective:
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T" DAY F J U LY, 2026.
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i avor"
June 17, 2026
July 8, 2026
July 8, 2026
K I
City of Kenai 1 210 Ficiaigo Ave, Kenai, AK 99611-7794 1907.283.7535 1 www.kenai.city
MEMORANDUM
TO: Mayor Knackstedt and Council Members
FROM: Terry Eubank, City Manager
DATE: June 8, 2026
SUBJECT: Ordinance No. 3532-2026 - Determining that the Proposed Subdivision of
Dena'ina Point Estates Serves Other City Purposes, Authorizing the City to
Share in Subdivision Costs, and Increasing Estimated Revenues and
Appropriations in the General Fund — Lands Administration in the Amount of
$54,219.
The proposed ordinance would determine that the subdivision of Dena'ina Point Estates serves
other City purposes and authorize the City to share in subdivision costs in an amount not to
exceed $54,219.
Kenai Municipal Code 22.05.025(c) requires applicants proposing a subdivision to bear all
subdivision -related costs unless the City Council determines that the subdivision serves other City
purposes. If such a determination is made, the Council may, in its sole discretion, share in
subdivision costs in an amount it determines is reasonable given the benefit to the City.
The proposed subdivision would reconfigure City -owned property into developable lots and
establish the rights -of -way and utility corridors necessary to support future development, including
residential development opportunities. The subdivision advances the City's land management
objectives, supports additional housing opportunities, and increases the utility, marketability, and
development potential of City -owned land.
The proposed cost sharing is contemplated in a Memorandum of Understanding (MOU) between
the City and Tidewater, LLC, which is being presented for Council consideration under separate
resolution. The MOU establishes a framework for replatting and potential future development but
does not obligate either party to enter into a lease, sale, or other transaction.
The estimated subdivision cost is $82,150. The proposed City contribution is limited to $54,219,
with the Developer responsible for the remaining subdivision costs and all other project -related
costs unless otherwise approved by the City Council.
Staff recommends that the Council determine the subdivision serves other City purposes and
authorize cost sharing in an amount not to exceed $54,219.
Your consideration is appreciated
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