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HomeMy WebLinkAboutResolution No. 2026-51KENAI CITY OF KENAI RESOLUTION NO. 2026-51 Sponsored by: Administration A RESOLUTION AUTHORIZING THE CITY MANAGER TO EXECUTE A MEMORANDUM OF UNDERSTANDING WITH TIDEWATER, LLC REGARDING THE PLANNING, REPLATTING, AND POTENTIAL PHASED DEVELOPMENT OF DENA'INA POINT ESTATES SUBDIVISION. WHEREAS, the City of Kenai owns approximately 80.438 acres within Dena'ina Point Estates Subdivision, including approximately 53.56 acres across thirteen parcels and approximately 26.878 acres of associated rights -of -way; and, WHEREAS, Tidewater, LLC owns and has contracts to acquire additional property within and adjacent to Dena'ina Point Estates Subdivision and has proposed a phased mixed -use development that may include subdivision and replatting activities, roadway and utility infrastructure improvements, residential development, and mixed -use commercial development; and, WHEREAS, the City has determined that portions of Dena'ina Point Estates, as currently configured, are not conducive to efficient development due to existing lot configurations, diverse ownership of property, roadway layouts, and infrastructure limitations; and, WHEREAS, the proposed replat is intended to create developable lots, facilitate roadway and utility infrastructure improvements, support housing development, encourage mixed -use development opportunities, and increase the long-term value and usability of City -owned land; and, WHEREAS, the proposed Memorandum of Understanding establishes a cooperative framework between the City and Tidewater, LLC regarding planning, replatting, phased development, and future lease and sale opportunities associated with Dena'ina Point Estates; and, WHEREAS, the Memorandum of Understanding is intended to establish the parties' understanding regarding the project and, except as expressly provided therein, does not obligate the City to enter into any future lease, sale, conveyance, rezoning, Subdivision Installation Agreement, land exchange, or other transaction, all of which remain subject to separate agreements and any approvals required by law; and, WHEREAS, the City Council finds that granting the Development -Related First Right of Refusal contemplated by the Memorandum of Understanding serves other City purposes by promoting coordinated development, facilitating long-term infrastructure planning, encouraging private investment in housing and mixed -use development, and supporting the efficient use and long-term value of City - owned property; and WHEREAS, execution of the Memorandum of Understanding, including the Development -Related First Right of Refusal, is in the best interest of the City and will facilitate coordinated planning and evaluation of future development opportunities within Dena'ina Point Estates. NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA: Section 1. That the City Manager is authorized to execute a Memorandum of Understanding with Tidewater, LLC, substantially in the form attached to this resolution, regarding the planning, replatting, and potential phased development of Dena'ina Point Estates Subdivision. Section 2. That this Resolution takes effect immediately upon passage. New Text Underlined; [DELETED TEXT BRACKETED] Resolution No. 2026-51 Page 2 of 2 PASSED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, THI ATTEST: e M. M , City Clerk DAY OF J U LY, 2026. Henry,, H. Knackstedt, Mayor New Text Underlined; [DELETED TEXT BRACKETED] • City of Kenai MEMORANDUM 210 Fidalgo Ave, Kenai, AK 99611-7794 1907.283.7535 1 www.6nai.city TO: Mayor Knackstedt and Council Members FROM: Terry Eubank, City Manager DATE: June 23, 2026 SUBJECT: Resolution No. 2026-51 - Authorizing the City Manager to Execute a Memorandum of Understanding with Tidewater, LLC Regarding the Planning, Replatting, and Potential Phased Development of Dena'ina Point Estates Subdivision. This resolution authorizes the City Manager to execute a Memorandum of Understanding (MOU) with Tidewater, LLC, the current lease applicant for Dena'ina Point Estates. The MOU establishes a cooperative framework for evaluating and planning a long-term, phased mixed -use development. The concept includes roadway and utility infrastructure improvements, residential development, and future commercial opportunities. The MOU also includes a Development -Related First Right of Refusal (FROR) for certain City -owned property within the project area. This resolution is related to Ordinance No. 3532-2026, which would appropriate up to $54,219 toward subdivision and replat costs. The ordinance addresses the City's financial participation in the replat process, while the MOU establishes the framework for coordination and future planning. Approval of this resolution does not authorize any future lease, land exchange, conveyance, rezoning, or construction activity. The City's General Fund land management practices are governed by Title 22 of the Kenai Municipal Code. Title 22 was repealed and reenacted in 2019 to encourage responsible growth and development, require development of leased property, and discourage land speculation. In general, City -owned land is managed for commercial and development purposes, and the leasing provisions of Title 22 are structured for projects involving permanent vertical improvements, such as buildings and related site development. Dena'ina Point Estates presents a unique development context, as development is dependent on subdivision installation and horizontal infrastructure improvements rather than immediate vertical construction. However, the lease process remains the most appropriate mechanism to initiate a competitive disposal process while ensuring development occurs before any transfer of City - owned property. Dena'ina Point Estates is a long-standing subdivision, originally platted in 1987 as a subdivision with 29 large tracts intended for residential use with infrastructure development. Over time, the area developed into a mixed ownership pattern with unconstructed roads and limited infrastructure, which has constrained development potential. The City currently owns approximately 80 acres within the subdivision, including approximately 54 acres across 13 parcels and approximately 26 acres in rights -of -way. Tidewater, LLC currently owns approximately 7 acres and is under contract to acquire additional private parcels totaling 53 acres within the proposed development area. The proposed replat would reorganize the subdivision to establish a functional road layout, rights -of -way, utility infrastructure, and developable parcels to support future housing and mixed -use development. The concept includes approximately 46 multi -family lots, 128 single-family residential lots, and 30 lots for commercial development. The MOU outlines a phased approach. The parties would first complete a preliminary plat for the full subdivision, followed by a Subdivision Installation Agreement for Phase I with a term of up to two years. Additional phases may be considered through future Subdivision Installation Agreements, subject to City Council approval and any required code waivers or amendments, and could extend up to ten years. Following completion of platting and infrastructure requirements, the MOU contemplates a potential land exchange designed to ensure the City retains land acreage comparable to its current holdings within the project area. Future agreements may include performance security, such as a deed of trust or other security acceptable to the City, and may allow for phased release of lots as improvements are completed and accepted. The FROR is intended to support Tidewater, LLC's long-term investment in subdivision planning and infrastructure development. In exchange, Tidewater, LLC commits to acquiring the remaining private property, participating in infrastructure planning, and supporting the long-term development of Dena'ina Point Estates. The FROR does not convey ownership or guarantee future leases. If another party seeks to lease eligible City -owned property, Tidewater, LLC would have 60 days to exercise the FROR and 90 days to execute a lease or other document under the terms of the MOU. The MOU does not approve or obligate any future development action. All future leases, land exchanges, conveyances, sales, rezoning actions, plat approvals, or code amendments will require separate City Council consideration and approval. The City also retains full discretion over all legislative, quasi-judicial, and discretionary decisions. No additional expenditures are authorized beyond those already contemplated for the replat effort. Subject to approval of Ordinance No. 3532-2026, the City's contribution toward replat costs is limited to $54,219. Any future project costs will require separate Council authorization. The MOU provides a framework to address longstanding barriers that have limited development of Dena'ina Point Estates for nearly 40 years. These barriers include mixed ownership and inefficient lot layouts that increase development costs associated with installation of roads and utilities. The MOU also represents a public private partnership with Tidewater, LLC to mutually develop both private and public lands in a manner that supports the City's housing needs, encourages responsible growth, and increases the long-term value and utility of the area. Your consideration is appreciated. Page 2 of 2 The City of Kenai I www.kenai.city Exhibit A — Property Subject to First Right of Refusal 1. 2. The proposed replat concept for the development area: 3. he FROR: and FROR: Property boundaries shown for illustrative purposes only, with final lot configuration, acreage, and legal descriptions to be established through the approved replat process. Rights -of -way, easements, public utility tracts, and any other City -owned property not specifically identified in Exhibit A are excluded from the FROR unless otherwise approved by the City Council. MEMORANDUM OF UNDERSTANDING DEVELOPMENT PARTNERSHIP FOR DENA'INA POINT ESTATES The CITY OF KENAI ("City") whose address is 210 Fidalgo Avenue, Kenai, Alaska 99611 and TIDEWATER, LLC. ("Developer") whose address is 38334 Lakewood Road, Sterling Alaska, 99672, hereby enter into the Memorandum of Understanding (MOU) as follows: 1. PURPOSE A. The purpose of this MOU is to establish a framework for cooperation between the City and the Developer regarding the planning, replatting, and potential phased development of property within Dena'ina Point Estates Subdivision and to establish a First Right of Refusal for future lease opportunities on certain City - owned property. B. The parties acknowledge that the proposed project may include subdivision and replatting activities, road construction, utility extensions, residential development, commercial development, and other related improvements. C. The City further recognizes that portions of Dena'ina Point Estates, as currently configured, are not conducive to efficient development due to existing lot configurations, roadway layouts, and infrastructure limitations. The proposed replat is intended to create developable lots, facilitate roadway and utility infrastructure improvements, support significant housing development, encourage mixed -use development opportunities, and increase the long-term taxable value and usability of City -owned land. Accordingly, the City has determined that it is in the public interest to partner with the Developer in advancing the replatting and planning efforts contemplated by this MOU. D. Except as expressly provided in Section 7 of MOU, this MOU is intended to document the parties' understanding and does not obligate either party to enter into any lease, sale, subdivision installation agreement, or other future transaction. 2. PROPERTY OWNERSHIP A. The City owns approximately 80.438 acres within Dena'ina Point Estates Subdivision, consisting of approximately 53.56 acres across thirteen (13) parcels and approximately 26.878 acres of associated rights -of -way. B. The Developer owns approximately 7.38 acres, consisting of Tract C-4, and represents that it is under contract to acquire the remaining approximately 53.22 acres of adjacent privately -owned property within the proposed development area. Any references in this MOU to property under contract are contingent upon the Developer successfully completing the associated property acquisitions. 3. PROPOSED DEVELOPMENT The Developer has proposed a phased mixed -use development that may include: 1. Replatting and subdivision of City -owned and privately -owned property; 2. Construction of roads and utility infrastructure; 3. Development of approximately forty-six (46) multi -family dwelling units; 4. Development of approximately one hundred twenty-eight (128) single-family residential lots; and 5. Mixed -use commercial and residential development opportunities. The parties acknowledge that all development concepts are preliminary and remain subject to design, engineering, permitting, subdivision approvals, financing, market conditions, and City Council approval as applicable. 4. REPLAT COOPERATION AND COST SHARING A. The parties agree to cooperate in preparing and processing a preliminary replat as necessary to accommodate the proposed development through preliminary plat, agency review, final plat, and recording consistent with City Code. The City will take actions reasonably necessary as a property owner to facilitate the replat consistent with City Code. B. The estimated cost of the replat is $82,150, based upon the engineer's estimate. C. Subject to appropriation by the Kenai City Council through Ordinance 3532- 2026, the City will contribute sixty-six percent (66%) of the replat cost, not to exceed $54,219, in recognition of the public benefits associated with the project, including the creation of developable lots, facilitation of roadway and utility infrastructure improvements, support for housing development, and enhancement of the value and marketability of City -owned land. If Ordinance 3532 is not enacted, the City shall have no obligation to contribute toward replat costs under this MOU. D. The Developer will be responsible for the remaining replat costs and all other pre - development costs associated with the project. E. Unless otherwise approved by the City Council, all costs associated with roadway construction, utility extensions, infrastructure improvements, permitting, and development will be the responsibility of the Developer. F. Any future subdivision development requiring public improvements will be subject to a Subdivision Installation Agreement and compliance with applicable City standards. G. In its capacity as owner and operator of the receiving wastewater collection and treatment system, the City will provide existing system information and documentation required by the KPB pursuant to KPB Code 20.40.070 at no cost to the Developer. H. The City agrees to support the Developer in pursuing any block -length exception that may be required under KPB Code 20.30.170, including providing support as a participating landowner. I. Subject to City Council authorization, the City will initiate and process any rezoning applications necessary to support the proposed development concurrent with the replatting process. The parties anticipate that the rezoning application will propose changing approximately thirty-nine (39) lots from Suburban Residential (RS) to Central Mixed Use (CMU), with the remaining approximately one hundred sixty-five (165) lots retaining the Suburban Residential (RS) designation. The final number, configuration, and zoning designation of lots will be established through the subdivision and rezoning processes. The parties acknowledge that a rezoning application cannot be submitted until a preliminary plat has been prepared and, therefore, rezoning will proceed in coordination with the replatting process to the extent practicable. This does not bind any City discretionary body from exercising its discretionary authority under City Code. 5. FUTURE LEASE FRAMEWORK A. The parties acknowledge that the Developer has submitted an application on January 19, 2026 to lease City -owned property with an option to purchase following completion of required improvements. B. The lease application was publicly advertised in accordance with the Kenai Municipal Code, and no competing lease application was received during the required application period. C. Pursuant to KMC 22.05.035, the application will expire upon execution of a lease, rejection of the lease application by the City Council, or twelve (12) months after submission of the application. Accordingly, the application will expire on January 19, 2027, unless terminated earlier pursuant to the Kenai Municipal Code. Upon expiration of the application, the First Right of Refusal established by this MOU will govern the Developer's preferential opportunity to lease property subject to the terms and conditions of this MOU. D. Upon completion of the replat, the parties anticipate negotiating one or more leases for City -owned property corresponding to development phases. Any lease is subject to approval by the Kenai City Council. E. The parties intend that the replat preserve the City's ownership position in substantially the same acreage, utility, and value as existed prior to replatting. The City will retain such rights -of -way, easements, and other property interests as necessary to preserve the development potential of City -owned land. To facilitate efficient development, the parties may identify isolated or irregular remnants of City -owned property located within Developer -owned parcels and Developer - owned property located within City -owned parcels that would benefit from an exchange. The anticipated City -owned and Developer -owned lots after the proposed replat are shown on Exhibit A. The parties may prepare conveyance documents to implement such exchanges concurrent with final plat recording; however, any exchange of property interests shall remain subject to City Council approval. F. The parties acknowledge that implementation of the replat may require adjustments to property boundaries, rights -of -way, and ownership interests. Any such adjustments will be structured to preserve the City's ownership position in substantially the same acreage, utility, and value as existed prior to replatting unless otherwise approved by the City Council. G. The parties agree that an appraisal will be completed in 2026, at the Developer's expense, as required by the Kenai Municipal Code. The appraisal shall be performed on an as -is, current -zoning, per -square -foot basis using the existing parcels as configured at the time of appraisal and shall establish values for distinct areas of property based on location and market characteristics, including, but not limited to, highway frontage, visibility, access, and other factors that may affect value. The appraised value may be adjusted annually using the Consumer Price Index for use in future lease and purchase negotiations. The appraisal shall serve as a basis for determining future land values; however, all lease and purchase terms remain subject to approval by the City Council. H. The parties further anticipate that any lease approved pursuant to this MOU may include a right to purchase and may deviate from the City's standard lease form to support the phased development contemplated herein. I. Subject to City Council approval, the parties anticipate that any right to purchase may include the following framework: I . The lessee may purchase leased property only after completion of all improvements required under the applicable lease. 2. The purchase price shall be based upon the fair market value of the land only in accordance with the appraisal framework established in Section 5.G and shall exclude the value of permanent improvements constructed by the lessee. 3. Fair market value shall be established through an appraisal completed in accordance with the appraisal framework established in Section 5.G. 4. Upon satisfaction of all lease conditions and payment of the applicable purchase price, no further City Council authorization shall be required to complete the sale. 5. All proceeds from any sale shall be deposited into the General Fund Land Sale Permanent Fund. 6. The parties further contemplate a development incentive whereby the City may convey all or a portion of the leased property at no cost to the Developer, with the value of such conveyance limited to a maximum of fifty -percent (50%) of the documented cost of permanent improvements installed by the Developer and accepted by the City. The specific terms, eligibility requirements, and maximum conveyance amount must be established in the applicable lease and approved by the City Council. 6. DEVELOPMENT IMPLEMENTATION FRAMEWORK A. PRELIMINARY PLAT AND COMMENCEMENT OF PHASE I 1. The parties agree to cooperate in completing the preliminary plat for the proposed subdivision. 2. Upon approval of the preliminary plat, Phase I of the development process may commence. 3. Subject to City Council approval, the parties may amend this MOU or enter into separate agreements authorizing the Developer to construct roads, utilities, and other improvements located on City -owned property associated with Phase I. 4. Nothing in this section authorizes construction on City -owned property absent all approvals required by law. B. PHASE I SUBDIVISION INSTALLATION AGREEMENTS 1. Following approval of the preliminary plat, the parties anticipate entering into one or more Subdivision Installation Agreements ("SIA") in accordance with the Kenai Municipal Code. 2. The Phase I Subdivision Installation Agreement is anticipated to have a term of two (2) years and will establish the public improvements, construction obligations, performance requirements, timelines, and security requirements applicable to Phase I. 3. Subject to City Council approval and any required amendments to the Kenai Municipal Code, any Subdivision Installation Agreement entered into following the completion of Phase I may have a term of up to ten (10) years and may establish the public improvements, construction obligations, performance requirements, timelines, and security requirements applicable to the associated phase or phases of development. 4. The parties acknowledge that execution of any Subdivision Installation Agreement remains subject to all approvals required by law. 5. The Developer's obligation to enter into a Subdivision Installation Agreement shall be limited to development phases that include privately owned property controlled by the Developer or City -owned property subject to an executed lease with the Developer. The Developer shall not be required, solely as a condition of final plat approval, to enter into a Subdivision Installation Agreement for development phases consisting exclusively of City -owned property that the Developer neither owns nor leases. The existence of a First Right of Refusal established under this MOU shall not, by itself, obligate the Developer to enter into a Subdivision Installation Agreement for City -owned property prior to execution of a lease for such property. C. FINAL PLAT AND LAND EXCHANGE I . Following execution of the applicable Subdivision Installation Agreements and satisfaction of all applicable platting requirements, the parties anticipate pursuing final plat approval for the entire subdivision in accordance with applicable law and approval processes. 2. The parties anticipate that the land exchange contemplated by this MOU will be completed concurrently with recording of the final plat in order to align ownership boundaries and facilitate efficient development patterns. 3. Any land exchange shall be structured to preserve the City's ownership position in substantially the same acreage, utility, and value as existed prior to replatting unless otherwise approved by the City Council. 4. Any land exchange shall remain subject to City Council approval and all applicable legal requirements. D. DEVELOPMENT PHASING AND SECURITY 1. The parties anticipate that development will proceed in multiple phases over the term of the project in accordance with the timelines and performance requirements established in the applicable Subdivision Installation Agreement(s) and other project agreements approved by the City. 2. Subject to the terms of the applicable Subdivision Installation Agreement(s), development phases may proceed concurrently or sequentially as approved through the applicable agreements and City approval processes. 3. The parties anticipate the applicable Subdivision Installation Agreement(s) will require security, which may include a Deed of Trust or other security required by Kenai Municipal Code. 4. Subject to the terms of the applicable Subdivision Installation Agreement(s), the Deed of Trust shall provide for the partial release of properties as individual phases are completed by the Developer and accepted by the City. 5. The specific terms, conditions, and release provisions of any Deed of Trust shall be established in the applicable agreement and remain subject to City Council approval. E. ANTICIPATED ORDINANCE 1. The parties acknowledge that implementation of a long-term Subdivision Installation Agreement for one or more phases and any related land exchange may require amendments to the Kenai Municipal Code or other legislative action by the City Council. 2. Following execution of this MOU, the City anticipates preparing an ordinance for City Council consideration that would amend or otherwise authorize alternative procedures under the Kenai Municipal Code necessary to implement the phased development structure contemplated by this MOU, including consideration of a Subdivision Installation Agreement term exceeding two (2) years. 3. The parties anticipate that such ordinance may be introduced for City Council consideration as early as August 5, 2026. 4. Nothing in this MOU obligates the City Council to adopt any ordinance or approve any legislative action. 5. The parties acknowledge that the development sequence described in this Section is intended to establish a general framework for implementation of the project and may be modified by mutual written agreement of the parties. 7. DEVELOPMENT -RELATED FIRST RIGHT OF REFUSAL A. GRANT OF RIGHT 1. In consideration of the Developer's participation in the replat process, contribution toward project planning and development, and commitment to pursue the proposed development, the City grants the Developer a First Right of Refusal ("FROR") for the City -owned property identified in Exhibit A that is not subject to an existing lease. The FROR shall apply to City -owned parcels and successor City -owned parcels created through the approved replat that are specifically identified in Exhibit A. The City -owned property subject to the FROR shall consist of all City -owned parcels shown in Exhibit A, Image 3, which the parties anticipate will total approximately 57.80 acres following the replat. 2. The parties acknowledge that the FROR established by this MOU is separate from and independent of the Developer's lease application submitted pursuant to KMC 22.05.035 and shall remain in effect in accordance with Section 7.E. The expiration or termination of the lease application shall not, by itself, terminate the FROR. B. PURPOSE 1. The purpose of the FROR is to provide development certainty while the Developer advances the phased development contemplated by this MOU. 2. The FROR is intended to encourage timely development and must not be interpreted as creating a right to hold property for speculative purposes. C. EXERCISE OF FIRST RIGHT OF REFUSAL 1. If the City receives an application, proposal, or inquiry (collectively, "Proposal") from another party to lease City -owned property subject to this FROR, the City will provide written notice to the Developer. 2. If the City receives such a Proposal prior to recording of the final plat, the City will defer consideration until after the recording of the final plat and will coordinate in good faith with the Developer during active platting. 3. If the City receives such a Proposal any time after recording of the final plat, the City shall provide the required notice to Developer but, in its discretion, may defer consideration of the Proposal for a reasonable period. 4. Within sixty (60) days of receipt of such notice, the Developer must notify the City in writing of its intent to exercise the FROR. If the Developer timely exercises the FROR, the Developer shall have an additional ninety (90) days to execute a lease or other agreement approved by the City Council for the applicable property. Failure to provide written notice within the sixty (60) day period or to execute a lease or other agreement within the ninety (90) day period shall constitute a waiver of the FROR with respect to the subject property, and the City may proceed to consider other applications or proposals. 5. The FROR shall be exercised on a parcel -by -parcel basis. Any waiver, expiration, or termination of the FROR shall apply only to the subject property identified in the City's notice and shall not affect the Developer's rights with respect to any other property identified in Exhibit A. D. PHASED DEVELOPMENT STRUCTURE 1. The parties anticipate that future leases may be structured in phases. 2. The City and Developer may establish separate lease areas corresponding to development phases. 3. The parties further anticipate that the ability to obtain leases for future phases may be conditioned upon substantial completion of improvements required for preceding phases. 4. This subsection describes anticipated lease structuring only and shall not expand, limit, or otherwise modify the scope or exercise of the FROR. E. DURATION AND TERMINATION 1. The FROR will commence upon execution of this MOU and remain in effect until the earliest o£ a. Ten (10) years from the effective date of this MOU; or b. Written relinquishment of the FROR by the Developer; or c. Termination by the City Council if the Developer discontinues the project, abandons development efforts, or is in default of a requirement of any lease, subdivision installation agreement, or other agreement related to the project and fails to cure the default as specified in the applicable agreement, or if no cure period is specified, within sixty (60) days of written notice of the default. 2. Prior to termination under subsection (c), the City will provide written notice to the Developer and a reasonable opportunity to respond. F. NO OBLIGATION TO LEASE 1. Nothing contained herein obligates the City to enter into a lease or convey property. 2. Any lease remains subject to City Council approval and compliance with applicable law. G. ASSIGNMENT The FROR may not be assigned or transferred without prior approval of the City Council. The City's consent will not be unreasonably withheld. 8. MULTIPLE LEASE PHASES The parties acknowledge that the project may proceed in phases. Subject to City Council approval, the City and Developer may enter into one lease or multiple leases corresponding to development phases. 9. NO BINDING OBLIGATION A. Except for the parties' commitment to cooperate in good faith regarding the matters described herein, this MOU does not obligate either party to approve, any lease, sale, conveyance, subdivision, rezoning, or other legislative, discretionary, or quasi-judicial action. B. Any lease, purchase option, subdivision agreement, or other binding obligation is subject to separate written agreements and all approvals required by law. 10. TERM This MOU will commence upon execution by both parties and remain in effect for ten (10) years, unless extended by mutual written agreement or terminated earlier by either party upon written notice. Termination or expiration of this MOU shall not affect any lease, conveyance, or other agreement executed pursuant to this MOU. Notwithstanding the foregoing, Section 7 (Development -Related First Right of Refusal) shall survive any termination or expiration of this MOU and shall remain in effect for the duration and subject to the terms and termination provisions set forth in section 7. CITY OF KENAI By: Terry Eubank Date City Manager TIDEWATER, LLC Dennis Downs Date President ACKNOWLEDGMENTS STATE OF ALASKA ) )ss THIRD JUDICIAL DISTRICT ) THIS IS TO CERTIFY that on this day of , 2026, the foregoing instrument was acknowledged before me by Terry Eubank, City Manager of the City of Kenai, Alaska, an Alaska home rule municipality, on behalf of the City. Notary Public for Alaska My Commission Expires: STATE OF ALASKA ) )ss THIRD JUDICIAL DISTRICT ) The foregoing instrument was acknowledged before me this day of , 2026, by Dennis Downs, President, Tidewater, LLC, an Alaska limited liability company, on behalf of the company. Notary Public for Alaska My Commission Expires: ATTEST: City Clerk SEAL: APPROVED AS TO FORM: Scott M. Bloom, City Attorney