HomeMy WebLinkAbout2012-03-28 Planning & Zoning Packet - Work SessionI'V'�laye with a Past, Ci� with a Future'
MEMO*
210 Fidalgo Avenue, Kenai, Alaska 99611 -7794
Telephone: 907 - 283 -7535 i FAX: 907 - 283 -3014 1IIII,
1992
TO: Planning & Zoning Commission
FROM: Marilyn Kebschull, Planning Admin
DATE: March 22, 2012
SUBJECT: Imagine Kenai 2030— Background Report
Changes made to the draft background report thru the March 14th work session, thru
Section 4.3.3 Housing, are attached and on white paper. We are continuing to work
with the consultants to update the statistical tables.
On March 28 ", you will begin working in the blue section, Page 20, Section 4.4
Economy. Chapter 5, Land Use will require reviewing the Proposed Land Use Map.
We have attached a copy of the last map draft dated December 14, 2011 and the Land
Use Classification definitions which should be helpful when we review this section.
CITY OF KENAI COMPREHENSIVE PLAN
YOUR CITY, YOUR PLAN 2012
Imagine Kenai 2030
City of Kenai Comprehensive Plan Revision
Table of Contents
February 1, 2012 (Planning Commission Draft - Amended 3- 14 -12)
Note: "Track changes" feature shows changes to February 1 Draft
Chapter 1: Introduction .............................................................................. ..............................1
1.1 Purpose of Comprehensive Planning .............................................. ..............................2
1.2 Goals of the Plan ............................................................................ ..............................2
1.3 How to Use this Plan ...................................................................... ..............................3
Chapter2: City of Kenai ............................................................................ ..............................5
2.1 Powers of the City ........................................................................... ..............................5
2.2 Planning and Zoning Commission .................................................. ..............................6
2.3 Context for Planning ....................................................................... ..............................7
Chapter3: Native Community .................................................................. .............................10
Chapter 4: Background Information .......................................................... .............................12
4.1 Settlement History ......................................................................... .............................12
4.2 Setting ........................................................................................... .............................14
4.2.1 Climate and Environment ........................................................ .............................14
4.2.2 Natural Hazards ...................................................................... .............................14
4.3 Population, Education and Housing ............................................... .............................16
4.3.1 Population .............................................................................. .............................16
4.3.2 Education ............................................................................... .............................18
4.3.3 Housing .................................................................................. .............................19
4.4 Economy ....................................................................................... .............................20
4.4.1 Employment and Income ........................................................ .............................21
4.4.2 Business Indicators ................................................................. .............................23
4.4.3 Oil and Gas Industry ............................................................... .............................24
4.4.4 Commercial Fisheries and Seafood Processing ...................... .............................25
4.4.5 Visitor Industry ........................................................................ .............................26
4.5 Public Facilities and Services ......................................................... .............................27
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4.5.1 Water and Sewer Systems ..................................................... .............................27
4.5.2 Public Safety ........................................................................... .............................27
4.5.3 Transportation ........................................................................ .............................28
4.5.4 Parks and Recreation ............................................................. .............................29
4.5.5 Senior Citizen Facilities and Services ..................................... .............................31
4.5.6 Kenai Community Library ........................................................ .............................32
4.5.7 Other Services ........................................................................ .............................33
4.6 City of Kenai Finances ................................................................... .............................33
4.6.1 Expenditures .......................................................................... .............................33
4.6.2 Revenues .............................................................................. .............................34
4.7 Forecast of Economy, Population and Housing Demand ............... .............................34
Chapter5: Land Use Plan ........................................................................ .............................37
5.1 Land Use Maps and Classifications ............................................... .............................37
5.2 Zoning Status ................................................................................ .............................39
5.3 Existing Land Use and Ownership Patterns ................................... .............................40
5.3.1 Land Ownership ..................................................................... .............................41
5.3.2 Suitability for Development ..................................................... .............................41
5.3.3 City Center ............................................................................. .............................42
5.3.4 Kenai Townsite Historic District ............................................... .............................42
5.3.5 Residential Neighborhoods ..................................................... .............................43
5.3.6 Commercial Land Use ............................................................ .............................44
5.3.7 Industrial Land Use ................................................................. .............................44
5.3.8 Open Space and Habitats ....................................................... .............................45
Chapter 6: Goals, Objectives, Strategies, and Plan Implementation ......... .............................47
References.................................................................................................. .............................48
Appendix A: Public Participation Plan
Appendix B: Economic Indicators
Map 1: Location Map
Map 2: City of Kenai Water System 2012
Map 3: City of Kenai Sewer System 2012
Map 4: City of Kenai Maintained Roads 2012
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CITY OF KENAI COMPREHENSIVE PLAN 2012
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Map 5: City of Kenai Land Use Plan
Map 6: City of Kenai Existing Zoning 2012
Map 7: City of Kenai Aerial Photograph
Map 8: Wetlands and Floodplains 2012
Map 9: City of Kenai Existing Land Use 2012
Map 10: City of Kenai Land Ownership 2012
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CITY OF KENAI COMPREHENSIVE PLAN "', 2012
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Acknowledgements
Kenai City Council
Pat Porter, Mayor Ryan Marquis, Vice Mayor
Robert Molloy Tim Navarre
Brian Gabriel Terry Bookey
Mike Boyle Joe Moore*
Hannah Coffman (Student Representative)* Austin Daly (Student Representative)
City Administration
Rick Koch, City Manager
Christine Cunningham, Assistant to the City Manager
Marilyn Kebschull, Planning Administrator
Nancy Carver, Planning and Zoning Assistant
Corene Hall, Deputy City Clerk
Krista Stearns, City Attorney
Sean Wedemeyer, Manager Capital Projects, Public Works Director
Terry Eubank, Finance Director
Gus Sandahl, Chief, Police Department
Mike Tilly, Chief, Fire Department
Mary Bondurant, Airport Manager
Mary Jo Joiner, Kenai Community Library
Rachel Craig, Kenai Senior Center
Bob Frates, Parks and Recreation Director
Kevin Lyon, Manager Capital Projects, Public Works Director*
Consultants
Glenn Gray & Associates Bechtol Planning & Development Alaska Map Company
Planning and Zoning Commission
Jeff Twait, Chair Henry Knackstedt, Vice Chair Kenneth Peterson
Clifford Smith Phil Bryson James Rowell
Karen Koester Kurt Rogers* Tim Navarre*
Scott Romain*
Citizens of Kenai
The contribution of Kenai citizens who provided input to this plan at public meetings, by
completing surveys and by submitting comments is gratefully acknowledged. Special thanks to
Dr. Alan Boraas for his additions to the settlement history.
Copies Available from:
City of Kenai Planning Administration, 210 Fidalgo Avenue, Kenai, AK 99611 -7794 Phone:
(907) 283 -8235 Online: http: / /www.ci.kenai.ak.us /plan zone.html
*Former council members, commission members and staff
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CITY OF KENAI COMPREHENSIVE PLAN
YOUR CITY, YOUR PLAN 1!12012
Chapter 1: Introduction
The City of Kenai Comprehensive Plan, revised in 2011 -2012, updates the 2003 plan. The
Comprehensive Plan guides development in the community and provides important information
about the population, environment, economy, transportation, and land use.
The City of Kenai' is located within
the Kenai Peninsula Borough on the
west side of the Kenai Peninsula
(Map 1). The City shares planning
functions with the Borough. While the
Borough retains authority for ultimate
planning powers, it has delegated
authority to the City to adopt land use
plans and to enact and enforce
zoning and land use regulations.
Zoning involves designation of
different types of land use districts
that govern how land can be used.
The comprehensive plan must be
adopted by both the City of Kenai
and the Kenai Peninsula Borough.
The Kenai Peninsula Borough
retained platting authority and record
keeping, which includes approval of
plats that indicate the location,
boundaries and ownership of
individual properties.
The remainder of this introduction explains the purpose of comprehensive planning followed by
a description of how the Comprehensive Plan is organized.
Kenai's Community Identity
The City of Kenai's name and city logo signify a unique and distinctive community with
Dena ina and Russian roots, world -class recreational fishing, offshore energy resources, and
spectacular mountain vistas. Kenai earned status as an All- America City in 1992 and 2011.
Kenai's motto — "Village with a past — City with a future " — affirms the community's
appreciation for its colorful history and its ambitions for tomorrow. (Insert Logo)
' Throughout the plan, the City of Kenai is referred to as Kenai or the City.
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1.1 Purpose of Comprehensive Planning
The Comprehensive Plan provides a general guide for land use decisions in the City of Kenai.
Extensive public participation helped shape the plan to reflect the vision and direction of the
community's residents (see Appendix A). The Comprehensive Plan provides a vision for the
future, and it provides the legal basis for zoning, land use regulations, permitting, and all land
use decisions made by the City.
The introductory and background sections of the plan provide information relevant for managing
land uses in the community. This information describes the current situation regarding
population, economic and land use trends.
Zoning and land use regulations that implement the Comprehensive Plan apply to most
government and private land within the City. Uses within Native allotments, however, are not
subject to zoning and land use regulations. State of Alaska statutes require state agencies to
"comply with local planning and zoning ordinances and other regulations in the same manner
and to the same extent as other landowners" unless the governor gives a specific waiver (AS
35.30.020 -.030). Regarding federal lands, local planning and zoning ordinances may apply
unless specifically preempted. Chapter 2 provides more details about the Planning and Zoning
Commission and the context for planning.
1.2 Goals of the Plan
This section presents the 8 general goals of the plan that implement the community's vision of
how it will look in the future. Chapter 6 includes more information for each goal, including an
issue statement and the related objectives and strategies. Goals are broad statements that
describe long -term desired outcomes. Objectives provide more specific information of what can
be done to achieve a goal, and strategies describe specific steps that will be taken to reach an
objective.
Goal 1 - Quality of Life: Kenai will strive to be a healthy community that provides for
the emotional, physical, economic and spiritual well being of all of its citizens, promotes
the health and well -being for all age groups, provides opportunities for lifelong learning,
and encourages arts and cultural activities.
Goal 2 - Economic Development: Kenai will secure economic vitality by being a
community that has a wide variety of job opportunities and workforce support and
development; by providing a quality of life and financial climate that encourages
businesses to start up, expand or relocate to Kenai and by providing a built environment
based on standards that sustain long -term economic viability and growth and that
promotes affordable residential and commercial development.
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Goal 3 - Land Use: Kenai implements a forward- looking approach to community growth
and development by establishment of several different zoning districts that reflect the
needs of each district; providing commercial, industrial, and residential areas suited to
current and probable future growth.
Goal 4 - Public Improvements and Services: Kenai encourages public involvement in
decision making; has well - planned public and institutional facilities that meet the health,
education, governmental and social service needs of all citizens; has an integrated
efficient and cost - effective network of utilities and public improvements and is a
community where the public feels safe.
Goal 5 — Transportation: Kenai Municipal Airport will continue as a gateway to the
Kenai Peninsula and West Cook Inlet; the roads will be designed, constructed and
maintained for year -round use, and the harbor will function as a vital facility for
commercial and sport fishing industries.
Goal 6 — Parks and Recreation: Kenai will continue to enhance the quality of life for all
citizens through parks and recreational facilities, programs, and community services.
Goal 7 - Natural Hazards and Disasters: Kenai will establish coordinated and proactive
public policies, emergency plans and procedures, and educational programs that
minimize the risk to the community from natural hazards and disasters
Goal 8 — Environmental Resources: Kenai will practice mindful stewardship of the
natural resources and the environment to ensure that they are protected and enhanced
for their viability and values in perpetuity.
1.3 How to Use this Plan
This plan provides a guide for implementation of the City of Kenai's planning and zoning
responsibilities and its role in improving the quality of life for its citizens. Flexibility in
implementation of the plan is necessary to take advantage of new opportunities and unforeseen
circumstances.
While this plan contains a wealth of information, it is not necessary to read the plan from front to
back. Instead, readers may wish to focus on those sections of the plan that meet their interest.
Chapters 1 — 5 provide introductory material and a context for the goals, objectives and
strategies, which are included in Chapter 6 along with a discussion of how the plan will be
implemented. The references at the end of the plan identify studies, reports and other sources
of information, and the appendices provide useful additional information. The chapters of the
plan and appendices are organized as follows:
• Chapter 1: Introduction
• Chapter 2: City of Kenai
• Chapter 3: Native Community
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• Chapter 4: Background Information
• Chapter 5: Land Use Plan
• Chapter 6: Goals, Objectives, and Plan Implementation
• References
• Appendix A: Public Participation Process
• Appendix B: Economic Indicators
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Chapter 2: City of Kenai
Kenai is located at the mouth of the Kenai River on the
west coast of the Kenai Peninsula. Kenai incorporated
as a home rule city in 1960, and it became part of the
Kenai Peninsula Borough when the Borough
incorporated in 1964. The City of Kenai adopted the
council- manager form of government in 1963 and has
been operating under this form since that time. The
Council sets the overall policy for the City. The City
Manager provides day -to -day management. The
Council, which consists of the Mayor and six council
members, is elected at large and on a non - partisan
basis. A Kenai Central High student serves in an
advisory capacity and casts an advisory vote.
City of Kenai Mission
Statement:
To serve the citizens of
Kenai through listening and
leading, to promote growth and
continually improve services by
balancing the wishes of the
community with responsible
management.
In addition to the City Manager's office, other departments include Finance, Legal, Clerk, Public
Works, Airport, Police, Fire, Animal Control, Parks and Recreation, Library, Senior Services,
and Planning.
The remainder of this section provides information on City powers, the Planning and Zoning
Commission, and the context for planning. Section 4.5 provides detailed information about City
facilities and services.
2.1 Powers of the City
As a home -rule city, Kenai may exercise all legislative powers not prohibited by law or by
charter as provided by Title 29 of the Alaska Statutes. Except as otherwise provided in the
City's charter, all powers of the City, including the determination of all matters of policy, are
vested in the City Council. The City of Kenai provides a variety of services to its residents,
including road construction and maintenance, port and harbor facilities, police and fire
protection, emergency medical services, water and sewer utilities, airport, parks and recreation,
library, senior services, and animal control.
As a second -class borough under Title 29 of the Alaska Statutes, the Kenai Peninsula Borough
shall provide for planning, platting, and land use regulation. The statute provides that the
Borough may delegate any of its powers and duties to a city. In June 19842, the Kenai
Peninsula Borough delegated zoning powers to the City of Kenai and in May 19903, the
Borough delegated authority to the City to enact land use plan amendments to the
comprehensive plan. With this delegation, the City of Kenai assumed the authority to enact and
2 Kenai Peninsula Borough Ordinance 84 -40.
3 Kenai Peninsula Borough Ordinance 90 -31.
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enforce zoning and land use regulations and to adopt a comprehensive plan. The Borough must
also adopt the comprehensive plan. The Borough retains ultimate planning, land use regulation,
and platting authority (i.e., the approval of land subdivisions) after review by the Planning and
Zoning Commission.
2.2 Planning and Zoning Commission
Title 14 of the Kenai Municipal Code
assigns several key planning functions to
the seven - member Planning and Zoning
Commission. The most important duties of
the Planning and Zoning Commission are
to:
• Approve /disapprove various permit
applications;
• Interpret the Kenai Zoning Code;
• Review the City's Comprehensive
Plan annually; and,
• Propose plans for rehabilitation or
redevelopment of areas within the
City.
The Commission advises the City Council
on:
• Amendments to the Zoning Code
and Map;
• Petitions for lease or sale of City
and airport land; and,
• Capital improvements.
The Commission advises the Kenai
Peninsula Borough Planning Commission
on:
• Proposed subdivision plats;
• Petitions for right -of -way and
easement vacations; and,
• City of Kenai Comprehensive Plan
amendments.
City staff supports the Planning and
Zoning Commission by providing services
in the areas of planning, zoning, historic
KMC14.05.010 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.
(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
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) Propose plans for the rehabilitation or
redevelopment and any area or district within the
City.
(6) Perform historic preservation reviews and duties
as set forth in KMC 14.20.105.
(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 -year period. Such list shall be
arranged in order of preference, with
recommendations as to which projects shall be
constructed in which year.
(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.
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preservation, code enforcement, and geographic information services (GIS). Staff also acts as
liaison to the Planning and Zoning Commission.
2.3 Context for Planning
The City of Kenai has a solid foundation for planning its future development. The first
Comprehensive Plan, developed in 1962, has been updated or revised six times including the
2011 -2012 revision (Table 1). Each plan revision reflects the circumstances and development
priorities at the time of revision.
Table 1: Previous Comprehensive Plans
Year
Main Features of the Plan
1962
Kenai's first plan was prepared shortly after the City incorporated in 1960 with 778
residents. At that time, most development was clustered around Old Kenai. The oil and
gas industry was in its infancy and optimism abounded. The City was growing rapidly,
with its population forecasted to reach 13,350 persons by 1980. The plan stressed land
development and basic infrastructure and proposed Kenai's first planning ordinances.
1965
New opportunities from the transfer of the airport to City ownership in 1963 prompted
this update of the 1962 plan. The plan proposed development of a major new public
office and commercial district on surplus airport property in central Kenai and creation of
a historic district for Old Kenai. The plan also proposed a Kenai River bridge, a new
regional jetport south of the river, and a Northwest Coastal Highway to a Turnagain Arm
Crossing. This plan assumed a scaled -down forecast of 5,275 residents by 1980.
1980
Kenai saw several boom -bust cycles during the 1960s and 1970s. This plan was
prepared after the Trans - Alaska Pipeline System (TAPS) construction boom and after
several offshore oil and gas lease sales in Cook Inlet. It forecast 6,140 residents by
1990, plus another 4,530 persons if there were significant new oil and gas discoveries.
In response to Kenai's sprawling growth, the plan emphasized central business district
development and the emergence of distinctive residential neighborhoods. Reflecting the
spirit of its time, this plan presupposed an activist City government and stressed
environmental considerations.
1992
After the mid -1980s recession, Kenai geared down its growth and development
(revised in
expectations. This plan assumed a year 2000 population of 8,150 persons. Reviving the
1996)
local economy was a major planning goal. Ambitious development projects gave way to
incremental improvements to City infrastructure, better planning administration and
management of the City's land base.
2003
The 2003 plan responded to a changing economy characterized by a period of slow
growth, a diminishing role of commercial fisheries and a declining oil and gas industry.
The plan included provisions to revitalize the City center and develop the Millennium
Square property. The plan included an estimated growth rate of 25% by 2025.
The current plan builds upon previous planning efforts completed by the City of Kenai, the Kenai
Peninsula Borough and other entities referenced in Table 2. A full citation for the plans can be
found in the references at the end of the plan.
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Table 2- Planning Documents Related to the Comprehensive Plan
Planning Document
Year
Entity
Draft Parks and Recreation Study
2011
City of Kenai
Draft City of Kenai Trails Plan
2011
City of Kenai, Casey Planning & Design
City of Kenai Annex to the Kenai Peninsula
Borough Local All Hazard Mitigation Plan
2010
City of Kenai
Kenai Peninsula Borough Comprehensive
Economic Development Strategy
2010
Kenai Peninsula Economic Development
District
Kenai Peninsula Borough Coastal Management
Plan°
2008
Kenai Peninsula Borough
Kenai Airport Supplemental Planning Assessment
2007
City of Kenai
Kenai Economic Development Strategy
2006
City of Kenai with Americor s *VISTA
Kenai Peninsula Borough Comprehensive Plan
2005
Kenai Peninsula Borough
Kenai Wastewater Facility Master Plan
2004
City of Kenai
Kenai Comprehensive Plan
2003
City of Kenai with Kevin Waring Associates
Kenai Peninsula Borough Transportation Plan
2003
HDR Alaska, Inc. in association with
Kittelson & Associates
Kenai Area Plan
2001
Alaska Department of Natural Resources
Kenai Peninsula Borough Trail Plan
1998
Kenai Peninsula Borough
Kenai River Comprehensive Management Plan
1998
Alaska Department of Natural Resources
Kenai Airport Master Plan
1997
City of Kenai
In charting its future course, the City of Kenai benefits from a number of social, economic and
geographic characteristics.
• The City lies within a rich natural setting above the Kenai River overlooking Cook Inlet,
with views of Redoubt and Iliamna volcanoes and the distant Chigmit Mountains.
• Physical development patterns are logical, given physical constraints such as
undevelopable wetlands.
• A variety of land is available for future growth.
• The local economy is diversified, there is a well - qualified work force, and wages are
competitive.
• The City government is in excellent financial condition.
• Residents enjoy a choice of residential neighborhoods and lifestyles.
• Basic public facilities and services are in good condition and provided at levels
acceptable to most residents.
• A variety of world -class outdoor recreation opportunities are available to residents and
visitors, including the Kenai River, Cook Inlet, State lands, and Kenai National Wildlife
Refuge.
° With the sunset of the Alaska Coastal Management Program, the Kenai Peninsula Borough Coastal
Management Plan is no longer enforceable. The document, however, includes useful information.
6 The Airport Master Plan will be updated in 2012.
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As the City of Kenai has matured, its challenges have changed. In the 1960s, 1970s, and early
1980s, Kenai struggled to keep pace with headlong growth as it became the Kenai Peninsula's
most populous city. The development priority then was to develop new subdivisions and basic
infrastructure for new residents.
Today, more moderate growth of the population and economy provides an opportunity for the
City to continue improving the quality of life for its citizens and a positive experience for its
visitors. Following a national trend, the community's demographics have resulted in a decrease
in students and an increase in the numbers of senior citizens. An increase in education
attainment and reasonable wages make Kenai a desirable location for new businesses.
In recent years, the community has continued its role as a center for commerce with the addition
of several large retail stores. While the local economy was affected by the closure of the Agrium
fertilizer plant in 2008 and Lowes in 2011, the City is well - positioned to take advantage of new
opportunities that arise from the significant increases in the estimated reserves for oil and gas in
the region. As well, the City's location and services provide opportunities for growth as a center
for the visitor industry.
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Chapter 3: Native Community
Alaskan Natives have lived on the Kenai Peninsula long before written history. Today, Alaskan
Native people continue to practice their rich cultural traditions and provide considerable
economic and social benefits to the region. The federally- recognized Kenaitze and Salamatof
tribes are governed by separate Tribal Councils, and both Tribes maintain offices in the City of
Kenai. In addition to the Tribes, the Kenai Natives Association and the Salamatof Native
Corporation, organized under the 1971 Alaska Native Claims Settlement Act (ANCSA), operate
in the City.
Both the Salamatof and Kenaitze people are Dena'ina, a branch of Athabascan Indians that
occupy Southcentral Alaska. Unlike other Athabascans, the Dena'ina traditionally lived close to
marine waters, and their name for Cook Inlet is Tikahtnu ( "Big Water River ") or Nuti
( "Saltwater"). The traditional language, also called Dena'ina, is one of eleven Athabascan
languages in Alaska. Today the Kenaitze Tribe is undertaking efforts to revitalize the Dena'ina
language.
Kenaitze Indian Tribe: The Kenaitze Indian Tribe is recognized by the federal government
under the Indian Reorganization Act (IRA) of 1934 (as amended for Alaska in 1936).' Many of
the tribe's 1,236 members live on the Kenai Peninsula. An elected Executive Council governs
the Tribe in accordance with the Tribe's constitution, bylaws, ordinances, and resolutions. As
the tenth largest employer in the region, with over 100 employees, the Tribe generates a
significant part of the local economy. It manages environmental, health, social, cultural, and
educational programs. It manages the Dena'ina Health Clinic, the Dena'ina Dental Clinic and
the Nakenu Family Center in Kenai. During 2012, the Tribe was continuing plans to build a
health and wellness center in Old Town that will consolidate health programs at one site. In
addition to health, educational and cultural programs, the Kenaitze Tribe operates a subsistence
net and distributes salmon among tribal members.
The Kenaitze Indian Tribe operates a Tribal Court under its sovereign and under the oversight
of the elected Tribal Council. The Court consists of a panel of judges appointed by the Tribal
Council, and the Court selects a Chief Judge. The Tribal Court Code outlines the structure and
procedures of the Court.
During meetings on the Comprehensive Plan revision, tribal representatives expressed an
interest in developing maps and signage to reflect traditional place names. The Kenaitze Indian
Tribe is investigating ways to fund this initiative.
7 The Kenaitze Indian Tribe is on the list of federally- recognized tribes which means it is recognized as
having a government -to- government relationship with the United States and that it is eligible to receive
funding and services from the Bureau of Indian Affairs (Bureau of Indian Affairs 2010 and 2012).
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Salamatof Tribe: The Salamatof Tribal Council maintains an office in Kenai. The Council
represents the federally- recognized Salamatof Tribe. The unincorporated village of Salamatof is
located just north of the City of Kenai.
Native Corporations: The Alaska Native Claims Settlement Act (ANCSA) of 1971 established
regional and local Native Corporations which received entitlement to 44 million acres of land
and $963 million. The Cook Inlet Regional Corporation (CIRI) is one of the 12 land -based
regional Native corporations established by ANCSA.8 CIRI has over 7,300 shareholders and has
business operations and investments in energy and resource development, oilfield and
construction services, environmental and remediation services, real estate, tourism,
telecommunications, and private equity and venture capital investments. The Corporation
manages land granted under ANCSA, and it retains subsurface rights for lands granted to local
corporations in the region.
The Kenai Native Association (KNA), designated as an urban Native corporation under ANCSA,
had 560 members in February 2012. KNA received entitlement to 23,000 acres of land which
included 4,000 acres of land at the former Wildwood Air Force Base and land within the Kenai
National Wildlife Refuge. About 400 acres of land were sold to the State of Alaska in 1992 for
the Wildwood Correctional Center. In the late 1990s, KNA received 5 acres in Old Town Kenai
which was the site of the original headquarters for the Kenai National Moose Range.9 Also in
the late 1990s, the Exxon Valdez Oil Spill Trustee Council purchased land along the Kenai River
for protection, and the boundaries of the Kenai Wildlife Refuge were moved to exclude KNA
lands. Amendments to the refuge boundaries allowed KNA land to be developed. Today, KNA
sells sand and gravel and manages its real estate.
The Salamatof Native Corporation is the village corporation for the Salamatof people
established under ANCSA. The majority of shareholders of the corporation reside on the Kenai
Peninsula including in the unincorporated village of Salamatof. The corporation received money
under ANCSA but no land. Today, its business ventures consist of real estate and land
development.
Native Allotments: The Alaska Native Allotment Act of 1906 provided the ability of Alaska
Natives to obtain title of land up to 160 acres. There are a few Native allotments in the City of
Kenai, and uses within these allotments are generally not subject to the City's land use
regulations and zoning.
8 A 13`h corporation exists for Alaska Native people living outside of Alaska when ANCSA was passed.
9 The Kenai National Moose Range eventually became the Kenai National Wildlife Refuge.
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Chapter 4: Background Information
The information in this chapter section provides background for the land use plan (Chapter 5)
and the goals, objectives and strategies (Chapter 6). The chapter begins with a summary of the
community's history and setting. It continues with information about socioeconomic conditions
and City facilities and services. The chapter concludes with a forecast of future population and
demands for housing and services.
4.1 Settlement History
Kenai's motto, "Village with a past, City with a future," reflects the link between the community's
long and rich history and its opportunities for sustainable growth and development. Kenai's past
has shaped its present. Its settlement history provides a strong cultural foundation and the
physical pattern of growth that remains today.
Long before Russian explorers first arrived in Alaska in 1741, there was a thriving Dena'ina
Athabascan Indian Village on the high bluff overlooking Cook Inlet near the mouth of the Kenai
River. The Kenaitze people do not measure their history in years, but instead consider they
have lived in the area since time immemorial, a period that is beyond the reach of memory or
record. At the time of the arrival of the first Russians, about 1,500 Dena'ina lived in the Kenai
River drainage with several hundred in the village of Shk'ituk't on the bluff above the Kenai
River mouth.
Kenaitze derives from the Dena'ina stem "ken" which refers to flat land meaning the wave cut
terrace Kenai is built on. The Russian " -itze" means "people of so Kenatize means "people of
the flat land." The name for themselves is Kahtnuht'ana - "People of the Kenai River" (Kahtnu).
The Dena'ina called the Russians "Tandna" which means "underwater people" from the image
of their ships coming up Cook Inlet which, viewed from afar, looked like the ship was emerging
from underwater.
The Russians built Fort (Redoubt) St. Nicholas at Kenai in 1791, the fifth Russian post in
Alaska. The fort was an outpost for trading fish and furs. The log wall and blockhouses were
built by the Russians as part of Redoubt St. Nicholas. By the time British explorer Captain
George Vancouver visited in 1794, about 40 Russians occupied the outpost. The Russian
Orthodox religion took root, and Kenai's oldest buildings are Orthodox- related: a log rectory
(1886), the Holy Assumption of the Virgin Mary Orthodox Church (1895), and the nearby log
chapel (1906).
The United States established Fort Kenay in 1869 two years after the Alaska purchase. Most
of the Russian buildings were in disrepair by the time the American Army took over, and the
post was abandoned in 1871.
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Commercial salmon canneries became a significant economic factor in the late 1800s. The first
cannery at Kenai, the Northern Packing Company, was established in 1888. From then on at
least one and often two or three canneries operated at the Kenai River mouth.
As the community evolved, residents constructed new infrastructure and adapted to a changing
economy. A post office was established in 1899. During the 1920s, commercial fishing and fish
processing became important local industries. Opportunities for homesteading in the 1940s led
to further development. The first road connecting Anchorage and Kenai, opened in 1951,
provided access that helped expand the community. The Wildwood Army Base, built north of
Kenai in 1953, was later converted to an Air Force base. During the Cold War, it served as a
communications and Russian surveillance base.
With Alaska's first major oil strike in 1957 at the nearby Swanson River, a new economy took
root. The City of Kenai incorporated in 1960, and offshore oil was discovered in Cook Inlet in
1965. Today's economy reflects the importance of the fishing, oil and gas, tourism, and service
industries.
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4.2 Setting
Kenai is centrally located on the western Kenai Peninsula in Southcentral Alaska, about 65 air
miles (160 miles by road) southwest of Anchorage and 1,350 miles northwest of Seattle. Kenai
is as far west as Hawaii and about the same latitude as Oslo or Stockholm.
The original community has expanded with commercial development along the Kenai Spur
Highway and residential neighborhoods throughout the developable areas of the City. The City's
center is located about 11 miles west of Soldotna and the Sterling Highway, Kenai's overland
link to Anchorage and Homer. Most persons and goods travel to and from Kenai over these two
state - maintained highways. The Kenai Municipal Airport, the Kenai Peninsula's only major
airport, provides regional passenger and air cargo service with connecting service through
Anchorage to other cities in Alaska and beyond.
Kenai's scenic setting amid diverse natural resources is a pervasive part of local daily life and
an important economic and recreational asset. The Kenai River is a world- famous sport fishing
destination that is especially known for its king salmon and river recreation opportunities. The
Kenai River estuary, wetlands, and nearby uplands provide vital habitat for diverse fish and
wildlife. Cook Inlet also supports important recreational and commercial fisheries, abundant
marine life, and important oil and gas resources. The nearby Kenai National Wildlife Refuge
offers year -round recreational opportunities.
4.2.1 Climate and Environment
Kenai's northern climate is tempered by Cook Inlet to the west and the Kenai Mountain Range
to the south and east. Summer temperatures typically range from 46 to 65 degrees Fahrenheit,
and winter temperatures from 4 to 22 degrees Fahrenheit. Average annual precipitation is 20
inches.
A drying trend has accelerated since the 1970's resulting in some drying of wetlands and
muskegs and the disappearance of kettle ponds and lower lake levels. In addition, trees are
growing at higher altitudes.
4.2.2 Natural Hazards
Natural hazards may affect the City of Kenai to various degrees. In 2010, the City of Kenai
completed an Annex to the Kenai Peninsula Borough Local All Hazard Mitigation Plan. This
plan was approved by the Federal Emergency Management Agency in 2011.13 This document,
adopted by the Borough, describes risks of hazards, facilities vulnerable to a disaster and a
mitigation strategy to reduce potential losses. Hazards with high risks include flooding, wildfire,
earthquake, weather, and erosion. Hazards with medium risks include volcanoes, and hazards
13 The Disaster Mitigation Act of 2000 requires local governments to adopt a hazard mitigation plans as a
condition for receiving federal disaster mitigation funds including elevation, acquisition, and relocation of
hazard threatened structures.
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with low risks include tsunamis. The plan includes a vulnerability assessment for City facilities
and infrastructure.
Flooding: With about 2,840 acres of the Kenai River basin considered as a floodplain, low lying
areas within the City are susceptible to flood and erosion hazards. Most of the floodplains are
publicly owned, and few structures have been built there. A 1995 flood resulted in significant
debris flowing in the river, including docks, sheds, tanks, and damaged boats. This flood
resulted in an emergency response coordinated by City personnel. The 2008 Kenai Peninsula
Borough Coastal Management Plan included designations for flooding and erosion -prone areas
in the City of Kenai along the river (Kenai Peninsula Borough 2008a).
Erosion: Eroding bluffs along the Kenai River and Cook Inlet pose the greatest erosion risk to
the community (City of Kenai 2010). Bluff erosion above the Kenai River threatens housing and
facilities such as the Senior Center. An average erosion rate of 3 feet per year has been
estimated after comparing aerial photographs over a 50 -year period.
Erosion damage can be costly; relocation
of the sewer line along Mission Street
cost over $300,000. Erosion has also
resulted in the abandonment of roads
and sewer mains. The 2008 Kenai
Peninsula Borough Coastal Management
Plan included designations for erosion -
prone areas in the City of Kenai along the
river (Kenai Peninsula Borough 2008a).
The City of Kenai has made significant progress towards addressing the bluff erosion along the
Kenai River. As of November 2011, the City secured the full local funding share (35% of the
total project costs) of the estimated $40 million project. 14 The U.S. Army Corps of Engineers is
undertaking a final feasibility study, an environmental impact statement, and a Section 7
consultation with the National Oceanic and Atmospheric Administration.
Natural bank erosion along the Kenai River is aggravated by boat wakes. A 1997 study found
that areas of the river without boat traffic resulted in about 75% less erosion than in areas of the
river with high boat traffic (Dorava and Moore 1997). The Kenai Peninsula Borough Don E.
Gilman River Center (River Center) houses multiple agencies that regulate development along
the Kenai River. Working together, these agencies have made great strides towards addressing
and improving erosion concerns. A 2010 publication by the River Center provides guidance for
shoreline protection (Orson and Smith 2011).
t4 This estimate includes the added costs associated with the 2011 federal designation of the area as
critical habitat for Cook Inlet beluga whale (50 CFR § 226.220). This designation includes the marine
waters in Northern Cook Inlet as well as the waters of the Kenai River below the Warren Ames Bridge.
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Coastal Storms: Storms caused by low pressure systems cause damage to the coastline. Even
when there are no stormy conditions, storm surges undercut the river banks in the City of Kenai
(City of Kenai 2008).
Fire: Wildland fires pose a risk to the community, especially as a result of an increase in dead
spruce trees resulting from the spruce bark beetle infestation (City of Kenai 2010, Parson et al.
2009). This risk was greatly reduced by the City of Kenai's initiative to develop a mitigation plan
to remove dead and dying trees from approximately 800 acres.
Volcanoes: Volcanoes on the west side of Cook Inlet present risks to the City of Kenai through
deposition of ash. In addition, eruptions can cause delays in air service.
Earthquakes: Southcentral Alaska is a high seismic risk zone. Though Kenai was relatively
undamaged in the 1964 earthquake, the potential for seismic events is high. Alaska accounts for
11% of the world's earthquakes, and since 1990 three of the ten largest earthquakes have
occurred in the state (City of Kenai 2008). Kenai is, however, relatively well protected from
earthquake - generated tsunami danger due to the high bluffs, and the relatively shallow depth of
upper Cook Inlet results in a low tsunami risk.
4.3 Population, Education and Housing
The purpose of this section is to provide background about trends that will be useful when
implementing the Comprehensive Plan. After information about population, this section
continues with statistics about education and housing.
4.3.1 Population
For the first half of the 1900s, the community of Kenai's population hovered around 300 people.
After discovery of the Swanson River oil field in 1957, Kenai grew eight -fold from 778 people in
1960 to 6,327 in 1990 becoming the Kenai Peninsula's most populous city (Figure 1).
Since the 1990s, the population has increased at a much slower rate. During the statewide
economic slowdown in the 1990s, Kenai's growth lagged, and it added fewer residents than in
any decade since the 1950s increasing only 9.7 %. The population increased at an even slower
rate over the next decade with a population of 7,100 in 2010, an increase of about 2.3 %.
Between 1990 and 2000, nearby small rural settlements (Cohoe, Clam Gulch, Kasilof, Nikiski,
Ridgeway, and Salamatof) grew by an average of 34 %. This trend may reflect a preference of
many Peninsula residents to work, shop, and recreate in its cities and live in its rural
countryside. This trend was not so dramatic during the period between 2000 and 2010.
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7000
6000
5000
4000
3000
2000
1000
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Figure 1: Population, City of Kenai
1900 -2010
290 250 332 286 303 321
4324
3533
778
0
6327
6942 7100
1900 1910 1920 1930 1940 1950 1960 1970 1980 1990 2000 2010
Source: U.S. Bureau of the Census
Slower economic and population growth and an aging population is changing the make -up of
Kenai's population. Consistent with these trends, the median age of Kenai's residents rose from
28.6 years in 1990 to 32.3 years in 2000 and 33.5 years in 2010. As shown in Table 3, Kenai's
2010 population is somewhat less diverse than Alaska as a whole and the United States and
less diverse than it was in 2000.
The aging of Kenai's population is consistent with national trends as the "baby boomers" reach
retirement age. While the City's population is increasing, Table 3 reveals that there has been a
greater increase in people older than 45 and a decline of people under that age between 2000
and 2010. Kenai's median age in 2010 was lower than the national median age and slightly
lower than the Alaska median age.
Since 1990, the average household size in Kenai has continued to decline. As shown in Table
4, Kenai's average household size in 2010 was smaller than for Alaska as a whole but larger
than the national average.
Over the long run, these trends signify slower population growth, a steadily aging population
with more seniors, a shift in housing demand mix, and a shift in local priorities for public facilities
and services to meet changing needs of a changing population.
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Table 3. Population Change by Age Group
City of Kenai, 1990 -2010
Age group
1990
2000
2010
Chan a
Change
2000-2010
Under 18 rs
2,074
2,277
1,971
+9,8%
- 13.4%
18 -44 yrs
2,989
2,707
2,513
-9.4%
-7.2%
45 to 64 yrs
1,005
1,515
1,921
+50.7%
+26.8%
65 rs+
259
443
695
+71.0%
+56.9%
Total
6,327
6,942
7,100
+9.7%
+2.3%
Source: U.S. Bureau of me Census
Table 4. Additional 2010 Demographic Information:
Comparison of City of Kenai, Alaska and the United States
Subject
Kenai
Alaska
United States
Median Age
33.5
33.8
1 37.4
Race
White
79.9%
66.7%
72.4%
Alaska Native /American Indian
8.9%
14.8%
0.9%
Black/African American
0.7%
3.3%
12.6%
Asian
1.5%
5.4%
4.8%
Native Hawaiian /Pacific Is.
0.3%
1.0%
0.9%
Other
0.9%
1.6%
6.2%
Two or more races
7.9%
7.3%
2.9%
Sex
Male
49.6%
1 52%
49.2%
Fem ale
50.4%
48%
50.8%
Household Size
2.51
2.65
2.47
Source: U.S. Bureau of the census
4.3.2 Education
The U.S. Census Bureau survey information for the period 2005 -2009 provides initial
information about educational trends until the release of all the Census 2010 data.15 As shown
in Table 5, there has been decreased enrollment in elementary school students and younger
and increased enrollment in high school and college students since 2000. During this period, the
estimated percent of high school graduates and people with a bachelor's degree or higher
increased. For 2010, the percentage of high school graduates or higher in the City of Kenai was
91.6% which was higher than for United States percentage (85.6 %) and slightly higher than for
Alaska as a whole (91 %). The percentage of people with a bachelor's degree or higher in the
City of Kenai was 18 %, lower than the percentage for the United States (28.2 %) and for Alaska
(28.2 %).
15 Census 2010 education data were not yet available at the time this draft was written. The American
Community Survey, completed by the U.S. Census Bureau, provides useful and more current information,
but it is less reliable than the information from the decennial census. For cities with a population the size
of Kenai, the American Community Survey uses five years of survey data to develop the estimates.
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Table 5. City of Kenai Educational Statistics 2000 and 2010
Topic
2000
2010
School Enrollment
Nurser /Preschool
91
60
Kindergarten
78
84
Elementary School (grades 1 -8
1,040
869
High School (grades 9 -12
519
483
College or Graduate School
173
247
Total 3 years and older in school
1,901
1,791
Educational Attainment 25 years & older
Less than 9 Grade
3.3%
1.3%
9 - 12,n Grade, no diploma
8.3%
7.1%
High school Graduate or Equivalency
32.6%
35.3%
Some College, No Degree
33.7%
_28.1%
Associates Degree
6.1 %u
10.2%
Bachelor's Degree
11.1%
11.9%
Graduate or Professional Degree
5.0%
6.69% /6
Population 25 Years and Over
4,212
4,316
Source: V.S. Census Bureau, Census 2000 and 20ub —Z009 American Community Survey
4.3.3 Housing
Although Kenai is one of Alaska's oldest settlements, its housing stock is relatively new and in
good condition because most homes were built after 1980. The 2010 census counted 3,166
housing units in Kenai, an increase of 13 housing units since 2000 and an increase of 335 units
since 1990. In 2010, about 60% of housing units were owner - occupied, single - family homes.
Most new dwellings built since 1990 were single - family homes. Most homes are on public water
supply and sewage disposal systems and use natural gas. Table 6 provides additional housing
information.
Housing costs for both owner - occupied and rentals are lower in Kenai than in most Alaska
localities. In 2010, the average sale price for a single family home in the Kenai Peninsula
Borough was $225,975 compared to the $278,836 statewide average. In 2010, rentals in the
Kenai Peninsula Borough were lower than in all but one of the areas included in the 2010
Annual Rental Market Survey (Alaska Department of Labor and Workforce Development
2010).16
16 The survey includes Anchorage, Fairbanks North Star Borough, City and Borough of Juneau, Kenai
Peninsula Borough, Ketchikan Gateway Borough, Kodiak Island Borough, City and Borough of Sitka,
Valdez- Cordova Census Area, and the Wrangell Borough- Petersburg Census Area.
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Table 6. 2010 Housing Statistics
Number of Housing Units
3166
Number of Occupied Housing Units
2809
Number of Vacant Units
357
Homeowner-occupied Vacancy Rate
2.3%
Renter-occupied Vacancy Rate
9.4%
Average Household Size - Owner-occupied
2.65 persons
Average Household Size - Renter-occupied
2.29 persons
Source: U.S. Census bureau i 1�,�
4.4 Economy
The future of the Kenai's economy is difficult to predict, but recent trends and prospects in
several key industries, suggest Kenai's potential for modest economic growth for the
foreseeable future. Unpredictable events, such as significant new oil and gas discoveries, could
lead to more rapid growth of the economy than estimated.
This section provides a snapshot of the some of the most important sectors of the economy
from information available in September 2011. It includes information from the U.S. Census
Bureau, the Kenai Peninsula Borough and Kenai Peninsula Economic Development District
( KPEDD). The Kenai Peninsula Borough publishes its annual Situation and Prospects economic
report and quarterly reports on key economic indicators. In addition, the KPEDD updated its
Comprehensive Economic Development Strategy and Gap Analysis in 2010. Appendix B
provides more specific information about economic indicators.
Unlike the rest of the country, Alaska did not experience a sharp recession in 2009. The Kenai
Peninsula's resource -based economy, however, has slowly weakened as a result of fewer
tourists, a decline in oil drilling, poor fish prices, and a decrease in consumer confidence (Kenai
Peninsula Economic Development District 2010). The recent closure of the Agrium fertilizer
plant in Nikiski has added to concerns about the local economy. On a positive note, the Kenai
Peninsula Borough has one of the most diverse economies in the state, so this diversity will
soften negative impacts to the regional economy.
The City of Kenai's economic well -being is closely tied to general economic conditions in the
Kenai /Soldotna area. This area continues to be the trade and service center for the western
Kenai Peninsula and a local government center. The area has an industrial base and a healthy
visitor industry centered on the recreational fisheries of the Kenai River and Cook Inlet.
Future updates to the Kenai Economic Development Strategy, completed in 2006, will provide
more current economic information for the City. The strategy includes a work plan that
addresses five topic areas: Education and workforce development, quality of life, business
development, infrastructure, and tourism. For each topic, the work plan identifies goals,
objectives, strategies and who will be responsible to implement the strategies. The work plan
was considered when developing the current comprehensive plan revision.
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Since the 2003 Comprehensive Plan, the City of Kenai has expanded its role as a regional
commercial center. Despite the closure of the Kmart store in 2003, a number of new box stores
opened in Kenai, including Home Depot (2004), Lowes Improvement Center (2008) and
WalMart Supercenter (2010)." In 2008, the 78 -room Aspen Extended Stay Suites opened for
business. In addition to providing local jobs, these businesses generate tax revenue for the City.
The remainder of this section provides more details about economic indicators, including
employment and income, sales, retail trade, retail space, permits, and business licenses.
4.4.1 Employment and Income
The City of Kenai has a diverse economy and an educated and mobile workforce with
competitive wages. This situation positions the community's residents in a good position for
access to the region's job pool. The U.S. Census Bureau's American Community Survey for the
period 2005 -2009 estimates that 69.9% of the City of Kenai's population over the age of 16 is in
the labor force, 62.0% are employed, and there is an 11.2% unemployment rate.
The top employers for community residents include the Borough School District, ASRC Energy
Services, State of Alaska, Central Peninsula Hospital, Walmart, and the Kenaitze Indian Tribe
(Kenai Peninsula Borough 2010). Between 2000 and 2009, there was 26.1% increase in
employment while the population only increased 17.2% (Table 7). During this period,
employment increased in the sales and office, management, construction, service, and farming
categories. Employment decreased, however, in the production category. Table 8 delineates the
number of workers by type of industry.
Table 7. City of Kenai Employment Statistics: 2000 and 2009
Employment Status
Number of People
Increase
2000
2009
2009
Population 16 yrs and over
4,960
5,811
17.2%
In Labor Force
3,275
4,059
23.9%
Employed
2,858
3,605
26.1%
Unemployed
406
454
11.8 %
Not in Labor Force
1,685
1,752
4.0%
Source: U.S. Census Bureau
Using U.S. Census survey data from 2005 -2009, 3,036 people (84.2% of the workforce) were in
the private sector with 2,784 of them in wage and salary positions, 234 self - employed, and 18
unpaid family workers (Figure 2). Government workers included 569 people or 15.8% of the
workforce. Tables 8 and 9 provide information about occupation by type and by industry.
" During August 2011, the Lowes Improvement Center closed unexpectedly.
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Kenai is a relatively low -cost labor area. The estimated 2009 annual income for City of Kenai
households of $54,054 was about 18.8% lower than that for Alaska, and the estimated per
capita income of $27,597 was about 6.1 % lower than that for Alaska.
Table 8. City of Kenai Occupation by Type: 2000 and 2009
Occupational Type
2000
2009
Number
Percent
Number
Percent
Management, Professional & Related
688
24.1 M.
880
24.4%
Service
539
18.9%
652
18.1%
Sales and Office
744
26.0%
1,099
30.5%
Farming, Fishing & Forestry
5
0.2%
20
0.6%
Construction, Extraction, Maintenance & Repair
405
14.29/6
541
15.0%
Production, Transportation & Material Moving
477
16.7%
413
11.5%
Total Employed 16 Years and Over
1 2,858
1 100%
3,605
1 100%
Source: U.S. Census Bureau
Table 9. City of Kenai Occupation by Industry: 2009
Industry
2009
Number
Percent
Agriculture, Forestry, Fishing, Hunting & Mining
347
9.6%
Construction
233
6.5%
Manufacturing
164
4.5 %
Wholesale Trade
91
2.5%
Retail Trade
612
17.0%
Transportation & Warehousing & Utilities
223
6.2%
Information
130
3.6%
Finance & Insurance and real estate renting/leasing renting/leasing
145
4.0%
Professional, Scientific, and Management, and Administrative & Waste
Management Services
178
4.9%
Educational Services, & Health Care & Social Services
660
18.3%
Arts, Entertainment, & Recreation, & Accommodation and Food Services
376
10.4%
Other Services (except Public Administration
220
6.1%
Public Administration
226
6.3%
Total Em to ed 16 Years and Over
3,605
100%
source: u.6. Census Bureau
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Figure 2
City of Kenai Distribution of Employment 2009
■ Wage & Salaried Self employed Government ■ Unpaid family
C
1%
Source: U.S. Census Bureau
Historically, unemployment rates in the Kenai Peninsula Borough have been above statewide
averages. The estimated unemployment rate in the City of Kenai for the period 2005 -2009 was
11.2 %, about 2.5% higher than the unemployment rate for the entire state and 2.1 % higher than
for the Kenai Peninsula Borough.
4.4.2 Business Indicators
This section provides a brief overview of some business indicators. More detailed information
about these indicators is included in Appendix B.
Sales: The amount of annual sales can fluctuate from year -to -year. For 2009, taxable sales
were $175.7 million (Eubank pers. comm. 2012). The sales business category in 2009
represented over 40% of all sales followed by wholesale, services and manufacturing (Kenai
Peninsula Borough 2010). The City of Kenai represented an average of 17.5% of the entire
share of all sales in the Borough for the years 2004 -2009. Retail sales in 2000 totaled $136.3
million, about 48% of total sales.
Retail Space: In 2008, the retail space increased by 41 % from 2000 to 822,853 square feet,
representing 27% of the Borough's retail space and 19% of the number of retail buildings.
Permits: While the Kenai Peninsula Borough does not issue building permits, the communities
of Kenai, Homer, Seldovia, Seward, and Soldotna do. For the five -year period between 2005
and 2009, the average annual value of all types of construction permits issued by the City of
Kenai was $19.0 million with a high of $46.5 million in 2008 (Kenai Peninsula Borough 2010).
Business Licenses: As of July 2011, there were 1,137 licensed businesses with an address in
the City of Kenai (DCCED 2011). A better measure of business activity may be the number of
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businesses reporting sales within the City of Kenai: 1,441 (2010), 1,510 (2009), 1,573 (2008),
1,582 (2007), and 1,556 (2006) (Eubank pers. comm. 2012).
4.4.3 Oil and Gas Industry
The Cook Inlet area has been one of the nation's most productive oil and natural gas provinces.
While considerable challenges exist in the short term, a significant increase in the estimate of
undiscovered reserves in the region provides reason to be optimistic about the future for this
industry. As an example, a new jack -up rig arrived in Cook Inlet in August 2011 and announced
it had drilled a successful gas well in November 2011. Anotherjack -up rig is scheduled to arrive
in Cook Inlet in 2012.
Production to date amounts to 1.3 billion barrels of oil, 7.8 trillion cubic feet of natural gas and
12,000 barrels of natural gas liquids. Oil production peaked in 1970 at 82.4 million barrels, and
has fallen steadily since. Cook Inlet natural gas production remained fairly level in the 1990s,
but it has declined from an annual amount of 222.8 billion cubic feet in 2011 to 138.6 billion
cubic feet in 2009. In 2009, the Alaska Department of Natural Resources estimated there were
109 million barrels of oil and 1.56 trillion cubic feet of gas from known accumulations.
While the easiest to locate and develop oil and gas resources have been found, considerable
resources are estimated to remain in the region. In 2011, new geologic information boosted the
estimates of undiscovered technically recoverable reserves for the Cook Inlet region to include
19 trillion cubic feet of natural gas, 600 million barrels of oil and 46 million barrels of natural gas
liquids (USGS 2011).
Since the 2003 Comprehensive Plan, some changes have occurred in the oil and gas sector. As
a result of a shortage of natural gas supply, Agrium, Inc. closed the ammonia -urea plant at
Nikiski in 2007. In March 2011, ConocoPhillips and Marathon announced plans to place the
Nikiski liquefied natural gas (LNG) in warm storage because of declining natural gas supplies in
Cook Inlet. The plant remained active, however, due to some unexpected shipments to Asia.
While the risk of a future closure exists, there is also a possibility that it may be expanded in
response to new gas discoveries.
Despite uncertainties, oil and gas resources continue to be an important economic influence for
the region. Tesoro Alaska's refinery in Nikiski has the capability to process up to 72,000 barrels
per day. The refinery processes oil from Cook Inlet sources as well as oil delivered by tanker
from the TransAlaska Pipeline terminal. It produces ultra low sulfur gasoline and diesel, jet fuel,
heating oil, heavy fuel oils, propane and asphalt.
Cook Inlet gas fuels Southcentral Alaska electric power natural gas utilities. The four largest
fields produce 86% of the gas reserves. A 2011 study found that Cook Inlet is capable of
supplying the gas needs for Southcentral Alaska at a more inexpensive rate than other
alternatives until 2018 -2020 as long as investments in infrastructure continue (Alaska
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Department of Natural Resources 2011). The study also emphasized the importance of natural
gas storage facilities in evening out the supplies.
New drilling projects by smaller independent companies began in 2011 in the area. Buccaneer
Alaska Operations, LLC, a new independent company operating in Alaska, drilled a successful
discovery well at its Kenai Loop project that has led to drilling a second well. Also during the
2011, Escopeta Oil and Gas brought a jack -up drilling rig to Cook Inlet, first exploration project
in deeper waters of the area using a jack -up rig since the 1980s. Buccaneer Alaska Operations,
LLC plans to bring a jack -up rig to Cook Inlet in 2012. Other oil and gas companies have
conducted operations in the region: NordAq drilled a gas well in the Kenai National Wildlife
Refuge in 2011, Linc Energy acquired leases in Cook Inlet in 2010, and Armstrong Cook Inlet
has interests in the North Fork Unit north of Homer.
In July 2011, the Alaska Department of Natural Resources approved a plan for the Cook Inlet
Natural Gas Storage Project. Located in the City of Kenai near the intersection of the Bridge
Access Road and Beaver Loop Road, this project includes a compression gas /gas conditioning
facility on a 40 -acre parcel, and it involves a six -acre pad with injection wells for storage of
natural gas during summer months when there is excess capacity.
Construction of a North Slope natural gas pipeline with a spur pipeline to Cook Inlet, or a stand-
alone pipeline, could revitalize the role of local gas -based industrial facilities. At the time this
Comprehensive Plan was written, plans for a natural gas pipeline were not finalized.
4.4.4 Commercial Fisheries and Seafood Processing
The commercial fishing and the seafood processing industries were the foundation of Kenai's
economy and for many years the driving economic force (Kenai Chamber of Commerce 2012).
In recent years, these industries have been troubled by declining harvests, fishery closures,
weak markets, depressed product prices, and seasonal labor shortages. A decline in revenues
and profits has been accompanied by a reduction in seafood processing employment and
processing capacity.
Despite the closure of the Ward's Cove cannery in 1999, seafood processing continues to
contribute to the local economy. Companies process salmon, herring, halibut, and razor clams,
including locally caught seafood as well as fish caught in other areas of the state such as Bristol
Bay. While the seafood industry in Cook Inlet originally focused on production of high quantities
of canned salmon, the focus has shifted to quality fresh and fresh frozen products.
The Alaska Seafood Marketing Institute lists seven businesses in Kenai that supply seafood,
and the Kenai Peninsula Borough recognized the importance of the area by designating it as
seafood processing area in its 2008 Coastal Management Plan.
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In 2009, Kenai was ranked as one of the top 50 U.S. ports for volume of seafood deliveries with
• landed value of $11.5 million (DCCED 2011). While not a complete picture, Table 10 provides
• snapshot of salmon and halibut harvests and permit holders between 2000 and 2008.
Table 10: Salmon and Halibut Harvests in Kenai
Salmon
2000
2008
Kenai Permit Holders
208 with 155 fished
208 with 154 fished
Pounds Landed in Port
3,583,932
5,310,054
Gross Earnings
$2.1 million
$4.8 million
Halibut
2000
2007
Kenai Permit Holders
49 with 16 fished
35 with 31 fished
Pounds Landed in Port
153,560
351,304
Gross Earnings
* **
$1.5 million
Source: Kenai Peninsula Borough 2000, 2009
4.4.5 Visitor Industry
The Alaska Department of Commerce, Community and Economic Development estimates that
about 500,000 people visited the Kenai Peninsula each summer. While tourism has been one of
the fastest growing sectors in the Borough, as a result of the recession, visits declined from their
peak in 2007. Visitor patterns are highly seasonal with outdoor recreation and sport fishing
representing the major visitor activities, and the historic Kenai old town is an important
attraction. Alaska residents represent the largest group of visitors to the Kenai Peninsula.
The region's visitor industry directly supports a variety of local businesses in Kenai. In 2008,
there were 1,207 visitor - related businesses licensed in the City of Kenai which represented
18.3% of all visitor - related businesses in the borough. Accommodations, food and beverage
sales accounted for an average of $14.2 million per year for the years 2001 -2008 in the City of
Kenai, representing an average of 11.7% of sales within the borough (Kenai Peninsula Borough
2009). Visitors to the City of Kenai have decreased in recent years with a high of 45,769 in 1999
to 46,524 in 2007 (for the period June - August of each year). These summer months account for
over two- thirds of annual visits.
The Kenai River provides a major recreation destination for both residents and visitors. A 2010
Kenai River Recreation Study involved a survey of major users (Whittaker and Shelby 2010).
The study found there were concerns about environmental degradation of the river and a need
for additional launch facilities.
The charter fishing industry provides economic benefits to the City of Kenai through
employment and through local spending by clients. Ten percent of the businesses listed on the
Kenai River Professional Guide Association's membership list had a Kenai address, although it
should be noted that some Kenai addresses are actually outside the City boundaries (Kenai
River Professional Guide Association 2011).
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The Kenai Chamber of Commerce and Visitors Center promotes Kenai as a destination, and it
operates the Kenai Visitors and Cultural Center. The center provides information to visitors and
it includes exhibits and a museum store. The Kenai Peninsula Tourism Marketing Council
markets the peninsula as a tourist destination.
4.5 Public Facilities and Services
The City of Kenai provides a variety of services to its residents, local businesses and industries.
These services include water and sewer, public safety, library, transportation, parks and
recreation, and senior facilities. The areas of Kenai now served by City roads and water and
sewer utilities are shown in Maps 2 and 3.
Most of the developed area and vacant subdivided parcels are served by City utilities with the
exception of the Beaver Loop area and most of east Kenai .18 The low- density rural residential
district along Beaver Loop Road is outside the City utility service area. Under its existing density
and zoning, this district is not apt to require or support public water and sewer utility services in
the foreseeable future other than the planned water extension for Beaver Loop Road.
The continued provision and expansion of these services will depend on the willingness of
Kenai citizens to pay for them and the sources of other funding. The cost of building new roads
and expanding the water and sewer system depends on the distance from existing services and
the distance between lots.
4.5.1 Water and Sewer Systems
About 1,680 homes and businesses (4,000 -5,000 users) are connected to the water and sewer
system. Kenai's chief public water source is ground water from two wells in different aquifers
located near the Kenai Spur Highway and Beaver Loop Road. Seventy percent of the City's
population is served by municipal water. One additional well may be needed to maintain proper
flow and pressure. A new water treatment facility in the Beaver Loop Road area, scheduled to
begin operations in 2012, will improve water quality.
The wastewater treatment plant, constructed in 1982, was designed for a population of 11,650
people and an average wastewater flow of 1.3 million gallons per day, and this plant is operating
at about 70% capacity. The updated 2004 Wastewater Facility Master Plan identified a number
of improvements needed for the system which were included in the 2010 capital improvement
project lists.
4.5.2 Public Safety
The Police, Fire and Emergency Medical Services (EMS) departments are housed in the Public
Safety Building on Main Street Loop and Willow Street. The police department facility was
expanded and renovated in 1984 -85. The fire department serves approximately 7,100 people
18 The Thompson Park Subdivision in East Kenai is served by city utilities.
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within the boundaries of the community. The fire department is responsible for all fire
suppression, airport crash fire rescue, hazardous materials, EMS, fire prevention programs,
enforcement of City and State fire safety and prevention codes, and fire investigations. The City
has a mutual aid and automatic aid agreements with Central Emergency Services and the
Nikiski Fire Department.
Response time and water supply are concerns for fire protection in the Beaver Loop and VIP
subdivision areas.
4.5.3 Transportation
A safe, affordable, accessible, and efficient road, trail, marine, and aviation transportation
system is essential for community development and expansion in Kenai. Coordinated
transportation and land use policies reduce congestion, improve safety, and help move people,
vehicles, and goods more efficiently.
Roads: Of the 99 miles of roads in Kenai, the City of Kenai maintains approximately 60 miles,
including approximately 15 miles of gravel surfaced roads (Map 4). About 31 % of City roadways
are unpaved or in poor condition, and many roads are 20 -30 years old (City of Kenai 2009). The
Public Works Department maintains these roads year -round and is responsible for snow
plowing and road grading, shoulder maintenance, drainage ditches and culverts, and rights -of-
way and easements. City road construction and maintenance is funded with municipal revenue,
state - shared revenue, and by property owners in Local Improvement Districts (LIDs). The City
requires road rights -of -way dedications in new subdivisions.
The construction of the Bridge Access Road, residential growth at Kalifornsky Beach and
employment growth in the vicinity of Willow Street and Main Street Loop have funneled more
traffic into the central area. These trends are positive for the long -term commercial viability of
the city center and for future development of Millennium Square.
The local and state road system plays an important role in the growth and expansion of
residential, commercial and industrial development in Kenai. The proper location of future roads
and trails necessary to meet the demand of residents and commercial developers will be
important to minimize maintenance costs to the City. While Kenai's road system is adequate in
many respects, improvements could be made by paving more streets, constructing sidewalks
and trail linkages and expanding road shoulders. Future road improvements should be designed
to attract and accommodate more traffic within the city center and to improve the convenience
and safety of doing business along parts of the Kenai Spur Highway corridor.
Kenai Municipal Airport: The City -owned and operated airport is centrally located on
approximately 1,200 acres of land near downtown Kenai. The airport property encompasses the
airfield, a major portion of central Kenai and several undeveloped areas. The Federal Aviation
Administration (FAA) classifies the airport as a Commercial Service- Primary Airport.
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The Federal Aviation Administration transferred the original airport tract to the City in 1963.
Today, the Kenai Municipal Airport and related airport properties are a major economic and land
asset for the City. The airport supports a variety of economic activities with some potential for
growth. The convenient location of the airport allows easy access, and there is room for future
runway expansion away from existing town development.
The Kenai Municipal Airport Master Plan was developed in 1997, and a Supplemental Planning
Assessment was completed in 2007. Funding for new master plan was secured in 2010.
Issues related to the airport include potential noise and land use conflicts. The 1997 master plan
developed local noise exposure maps as of 1995 and estimated noise exposure by 2015. The
footprint of the projected 2015 65 dB DNL is slightly smaller than for 1995, due to proposed
airport improvements.
The downtown location of the airport has the potential for future conflicts with other uses if air
traffic increases significantly. The airport leases a number of developed parcels, including the
Alaska Regional Fire Training Facility, Animal Control Shelter, City shop, and the Flight Service
Station. These leases provide funding for airport operations.
The 1963 deed for the airport requires airport lands to be managed for use and support of the
airport. The current zoning of lands adjacent to the airport as a conservation district may not
support this requirement, and these lands should be rezoned to highest and best uses for the
airport, including support for airport- related uses, for revenue - generating leases for other private
development or public improvements.
Kenai Boating Facility: The City has authority to plan for waterfront development; own, lease
or manage waterfront property; raise funds; and exercise financial control over the port. The
Department of Public Works operates the Kenai Boating Facility and coordinates its use by fish
processors /leaseholders, independent fish processors, public users, and commercial,
recreational and dip net fishermen. The dock is mainly leased for commercial fishing vessel use.
The boat launching ramp is one of the area's most popular launching facilities during the dip net
fishery.
4.5.4 Parks and Recreation
The Parks and Recreation Department manages over 358 acres in its park and open space
system (City of Kenai 2011 a). Other than the neighborhood parks category, the City far exceeds
the National Recreation and Park Association guidelines for parks and open space acreage.
The mission of the Parks and Recreation Department is: To make Kenai a more attractive place
to live and play for all population regardless of sex, cultural backgrounds, income levels, and
mental or physical abilities. The Department's goals and objectives are outlined in the 2010 5-
year plan which was prepared with assistance from the Parks and Recreation Commission. The
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plan includes core principles and priorities for maintenance, safety upgrades, park development,
and creation of a tent campground (City of Kenai 2011).
The Parks and Recreation Department provides a wide array of services, including seasonal
recreation programs, City parks, beautification of City streets and parks, 3.2 miles of groomed
Nordic ski trails and 2.5 miles of trails (See Table 11). The City leases 120 acres for an 18 -hole
golf course that is privately operated. Through a partnership with the Department, the Boys and
Girls Club operates a 17,700 square foot recreation center. In addition, the department provides
support for the annual personal use fishery, it provides an area for community gardens, and it
manages volunteer programs, such as the adopt -a -park program.
Table 11: City of Kenai Parks and Open Space
Community Parks & Schools
Acres
Description
Kenai Municipal Park
45.7
Picnic tables, 2 large shelters, BBQ grills, basketball &
volleyball courts, ball fields, picnic shelter, observation
deck, beach access trail, and restroom facilities
Kenai Park Strip
18.9
4 sports fields with bleachers, dugouts, concession,
playground, shelter, picnic tables, BBQ grills, volleyball
court, community garden area, and restroom facilities
Beaver Creek Park
5.2
Shelter, picnic table, BBQ grill, basketball court, playground
ball field, and restroom facilities
Daubenspeck Family Park
7.5
Beach /swimming area, 2 shelters, picnic tables, trails,
horseshoe pit, winter ice skating, dog retrieval area, and
restroom facilities
Kenai Middle School
n/a
Kenai Central High School
n/a
Subtotal
77.3
Neighborhood Parks & Schools
Acres
Description
Elson Rest Stop
0.7
Picnic area and rest stop donated to the City in 2005
Old Town Park
0.4
Playground, shelter, basketball court, turf areas & BBQ grill
Fourth Avenue Park
3.8
Playground, basketball court, shelter, baseball field, & BBQ
Aurora Borealis Charter School
n/a
Kaleidoscope School
n/a
Mt. View Elementary School
n/a
Subtotal
4.9
Open Space and Natural Areas
Acres
Description
Blue Star Memorial Greenstrip
1.0
Picnic table and memorial
Airport Triangle Greenstrip
0.8
Vintage Air Force jet and flag poles
Benco Building Greenstrip
0.3
Open space natural area
Scenic Bluff Overlook
1.0
Gazebo and picnic tables
Millennium Square FAA Fields
6.3
2 soccer fields
Bernie Huss Trail
3.8
Wooded area with 0.4 mile trail, footbridge & 9 -hole disc
golf course
Kenai Flats Wildlife Viewing Area
17.9
Boardwalk, viewing scope and interpretive display adjacent
to the Bridge Access Road
Bird Viewing Platform Area
4.8
Elevated viewing platform off of Boat Launch Road
19 Acreage is not provided for school facilities because they are not managed by the Parks and
Recreation Department.
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Table 11: City of Kenai Parks and Open Space
North Beach Dunes
20.0
2 elevated stairways with post/chain (fence to protect dunes
and restroom facilities
South Beach Dunes
20.0
Post -chain fence to protect dunes on south side of River
Subtotal
75.8
Special Purpose Areas
Acres
Description
East Kenai Park Trails
15.5
18 -hole disc golf course. 0.75 mile trails, bench
Leif Hansen Memorial Park
3.5
Community memorial park with a gazebo, benches, water
fountain, veteran's and mariner's memorial, town clock,
gardens, and picnic tables
Erik Hansen Scout Park.
6.4
Benches, viewing scope, memorial & interpretive displays
Kenai Sports Complex
24.0
Picnic tables, BBQ 2rills and 4 regulation size soccer fields
Kenai Cemetery
3.5
Gazebo and benches
Multi- Purpose Facility
7.3
Bleachers, vendor space, 5 warming shacks, ice (October -
March ), & ice resurfacer
Kenai Recreation Center
1.7
Gymnasium, bleacher, 3 racquetball courts & teen center
(operated by the Boys and Girls Club
Cunningham Park
2.2
Bank fishing, boardwalk, benches, picnic table and
restroom facilities
Kenai Golf Course
119.7
Full service 18 -hole golf course (privately operated)
Oiler Baseball Field
10.0
Baseball field and complex leased from the City
Public Dock
12.1
170' dock, gangways, float, 4 launch ramps, cranes, and
restroom facilities and showers
Subtotal
200.0
Total Acrea a
358
Acreage managed by the Parks & Recreation Department
Source: City of Kenai 2011
A seven - member Parks and Recreation Commission and a seven - member Beautification
Committee provides advice to the Department. The Department also maintains landscaping for
street and highway right -of -ways.
4.5.5 Senior Citizen Facilities and Services
In response to a growing senior population, the City has actively sought to address the needs of
its older residents. The Senior Citizens Department provides senior services, including
congregate meals, transportation, personal advocacy, activities, and housing assistance. A
seven - member Council on Aging provides advice to the City Council on senior issues. The
Congregate Housing Facility complex comprises the core of an emergent "area of opportunity"
for more senior - oriented facilities and services.
The City owns and operates the very successful and popular Senior Center and Kenai Senior
Congregate Housing complex. The 40 -unit 40,450 square foot facility was built in 1992 with
additions in 1996. The City established an enterprise fund to account for the financing of the
Congregate Housing Facility. The complex comprises the core of an emergent "area of
opportunity" for more senior - oriented facilities and services.
Meeting the needs of seniors is a matter of community concern so long -term residents can
continue to retire and live comfortably in Kenai. Seniors have a broad range of housing and
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service needs. Some need ready access to health care and some cope with mobility limitations.
Of particular interest to Kenai's senior population is improved pedestrian circulation (safer walk
signals, separated walking paths, snow - cleared walkways) in the central area of town. While the
City itself has limited resources to dedicate to programs for seniors, it can, play a decisive role
by advocating and facilitating initiatives by other public and private entities.
4.5.6 Kenai Community Library
The Kenai Community Library has continually responded to public needs since its humble
beginnings in the halls of the Territorial School Building in 1949. The construction of a new
5,000 square foot facility located on Main Street Loop in 1976 made the library more visible,
easier to use and a more pleasant place to visit. In 1986, an additional, 5,000 square foot
addition added four sound proof rooms, a closed stack area and activity room. The library
catalog and circulation system were automated in 1987, and in 2000 the library web site was
created allowing users to access the library catalog from home (http: / /www.kenailibary.org). The
June 2011 completion of the library expansion doubled the size of the building to approximately
20,000 square feet. The new facility includes more seating for adults, a fireplace, a separate
children's room, and study rooms. It also includes a conference room and two meeting rooms.
With two entrances, the library now provides access to more parking spaces and better access
to City Hall.
Library staff and volunteers provide a variety of programs of interest to patrons of all ages. Of
interest to adults with children are the weekly story times, summer reading program, and
monthly Tween Book Club meetings. The library now has a dedicated area with teen - oriented
activities. Adult programming includes a Book Club, the Writer's Group, and the Totem Tracers
Genealogical Society group.
The library collection includes approximately 80,000 books, periodicals, video, audiotapes,
music CDs, DVDs and reference materials. Several special collections located in the library
include Alaskana, Alaska State documents, genealogy, core collections of mental health and
consumer health information, large print books, books on tape, music CD's and DVD's. Several
Alaska newspapers are received on a daily basis at the library as well as the Wall Street
Journal, and Sunday editions of the New York Times and the Seattle Times. The Alaska Digital
Pipeline link provides access to full -text newspapers, journal articles, TV and radio transcripts,
reference materials, live homework help and access to Mango Languages. The library provides
access to the Listen Alaska Plus program allowing patrons to download audio books, music and
e- books.
The library is open 60 hours per week with 5 full -time and five part-time employees that assist
the 14,000 registered users. Eight computers are available for patrons to access the internet,
electronic databases, the City of Kenai municipal code and government sites. A grant from the
Rasmuson Foundation enabled the library to offer in -house lending of laptops to reduce waiting
time for computer use and provide more flexibility. The library is a dedicated Rosetta Stone
station for the study of foreign languages.
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4.5.7 Other Services
The City's Building Department maintains City buildings and performs several administrative
functions, including plan review, inspection, record keeping, and permit issuance.
The City built a visitor and cultural center in 1992 to encourage tourism in Kenai. The 10,000
square foot facility, operated by Kenai Convention and Visitors Bureau, houses a permanent
collection of historic artifacts, wildlife exhibits and a museum store.
The City leases land for a nominal fee to support organizations such as the Kenai Chamber of
Commerce, the Peninsula Art Guild, the Kenai Historic Society, Peninsula Oilers Baseball Club,
Inc., Women's Resource and Crisis Center, and the Alaska Challenger Center.
The City, along with state and federal agencies and nonprofit organizations, provide many
community services. Coordinating services to ensure cost - effective and efficient delivery will be
important as public dollars decline. Opportunities to combine services or otherwise improve
efficiency, cost - effectiveness, and quality should be identified, explored, and implemented with
the appropriate providers.
By state law, the Kenai Peninsula Borough is responsible for local education and property tax
assessment and tax collection. The Borough also provides areawide solid waste disposal,
emergency management services, and economic development planning.
The State of Alaska operates and maintains a number of facilities in Kenai. State roads within
the City include the Kenai Spur Highway and Beaver Loop and Bridge Access roads. Other
state facilities include the State District Court and District Attorneys' Office, Army National
Guard Armory, the Kenai Health Center, other social services and employment offices, and,
abutting the City, the Wildwood Correctional Facility. There are numerous public recreational
lands and facilities owned and operated by the borough, state and federal governments in and
near Kenai. Non -city public and private utilities provide electric power (Homer Electric
Association), natural gas (Enstar), solid waste collection (Alaska Waste), and
telecommunications (ACS and GCI).
4.6 City of Kenai Finances
The City of Kenai continues to maintain an excellent financial condition. The current (FY12)
budget projects year -end balances of $12.0 million (general fund) and $30.5 million (other
governmental funds). Kenai's per capita bonded debt ($271.13 as of June 30, 2011) is one of
the lowest of all Alaskan cities with debt, and well below the statewide municipal average
($3,957). Kenai's low bonded indebtedness partly reflects a long- standing reluctance to bond
for local capital improvements, relying instead on local tax revenues and federal and state
grants to fund capital projects.
4.6.1 Expenditures
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Development, expansion and maintenance of community facilities and services are fundamental
to Kenai's quality of life and to assure positive future growth and a healthy economy. Logical
and cost - effective growth requires adequate infrastructure. Existing and future business and
residential development will be supported and promoted with adequate infrastructure when
fiscally responsible.
The budget planning tool for providing facilities and services, the Capital Improvements Plan
(CIP), is one tool to implement the Comprehensive Plan's goals, objectives and strategies.
Well- planned community facilities and services improve the quality of community life.
For FY 2012, the City's general fund operating expenditures of $13.6 million were allocated as
follows: Public safety (46.9 %), general government (21.7 %), public works (17.1 %), and parks,
recreation and cultural services (14.3°/x). Special revenue funds of $6.8 million went for the
Airport Fund (39.4 %), Water and Sewer Fund (32.1 %), Airport Land Sales Permanent Fund
(15.2°/x), the Senior Citizen Fund (11.5 %), and General Land Sales Permanent Fund (1.8 %).
4.6.2 Revenues
Kenai levies a sales tax (3% in FY 2012) and property tax (3.85 mills in FY 2012). In FY 2011,
sales taxes accounted for 70.4% of City - levied revenues, and property taxes for 29.6 %. Several
City services (water and sewer, airport) are funded wholly or partly by user revenues.
4.7 Forecast of Economy, Population and Housing Demand
While it is not possible to predict future trends, based on the previous two decades, modest
future growth of the City's population and economy can be expected. After the preceding
decades of rapid growth, the City of Kenai's population growth rate slowed to less than one
percent yearly after 1990.
Similar to population trends, the region's basic economic sectors — energy industry, fishing /fish
processing, and tourism — have experienced moderate growth. As the region grows, Kenai can
be expected to continue its role as a trade and services center for the western Kenai Peninsula.
Consistent with these economic assumptions, the modest population growth that the City of
Kenai has seen in recent years will most likely continue for the foreseeable future.
It should be recognized, however, that unforeseen circumstances could change the economic
outlook. For example, a significant discovery of new oil and gas reserves could significantly
improve the economic outlook for the region. This prospect is possible considering the increase
in estimated oil and gas reserves in the Cook Inlet Basin and recent gas development wells
within the City boundaries.
The population of the Kenai Peninsula Borough is estimated to grow by 19.5% between 2009
and 2034, or 0.7% annually (Alaska Department of Labor and Workforce Development 2010).
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Assuming the same rate of growth for the City of Kenai, the population would be 8,484 in 2030.
This growth rate is significantly less than what was estimated in the 2003 comprehensive plan .20
Figure 3. Estimated Population
City of Kenai, 2010 — 2035
Source: U.S. Census Bureau
For planning purposes, the estimate of the City of Kenai's future population and net housing
demand uses the 2009 estimated annual growth rate of 0.7% through the year 2035. This
growth rate could change if there were new economic opportunities such as significant
discoveries of oil and gas in the area.
Specifically, it is estimated that Kenai will add about 1,088 new residents by the year 2035 for a
total of 8,485 residents, and about 965 additional dwelling units (Table 12 and Figure 3). If
actual growth substantially exceeds or lags estimated growth, then population -based decisions
about City development priorities can be adjusted accordingly.
20 In the 2003 Comprehensive Plan, the population of the City of Kenai was estimated to grow by about
35% between 2000 and 2020.
21 The figures in this table reflect and assumption that the average annual population growth of 0.7 %; 2.5
persons per household; and a 5% vacancy rate for new dwelling units.
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Table 12: Estimated Population and Future Housing Needs
City of Kenai, 2010 — 203521
2010 (Actual)
2015
2020
2025
2030
2035
Net Change
2010-2035
Population
7100
7358
7624
7901'
8188
8485
Net Increase
258
266
277
287
297
1385
Housing Units
3166
3090
3202
3318
3439
3564
20 In the 2003 Comprehensive Plan, the population of the City of Kenai was estimated to grow by about
35% between 2000 and 2020.
21 The figures in this table reflect and assumption that the average annual population growth of 0.7 %; 2.5
persons per household; and a 5% vacancy rate for new dwelling units.
Planning Commission Draft - February 2012 - Amended 3 -14 -12 35
CITY OF KENAI COMPREHENSIVE PLAN 2012
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Net Increase T 1 -76 1 112 1 116 1 121 125 1 398
Future demand for additional private land development for residential, commercial, and
industrial purposes was estimated, based on Kenai's current population and current land use
patterns. By this method, about 700 900 additional acres will be needed to accommodate
these future uses. This estimate does not include other private uses or public uses. To offer
reasonable choice within the marketplace, the available supply of land is expected to exceed
estimated demand by 25 to 50 %. Table 13 provides a comparison of estimated demand for
residential, commercial, and industrial land uses to the existing zoning status of vacant land.
Note: The estimated future demand was calculated assuming an annual growth rate of 0.7 %.
The City's land use plan in the next chapter and its Planning and Zoning Code will help promote
an orderly overall pattern of land that offers a reasonable choice of suitable locations for uses,
separates incompatible uses, maintains the quality of existing development, provides a
consistent level of series, and creates a stable, predictable setting for future investment.
Planning Commission Draft - February 2012 - Amended 3 -14 -12 36
Table 13: Estimated Demand for Residential, Commercial and
Industrial Land by 2030
Type of Use
Total Acreage
In Use
Vacant by Zone
Estimated
Demand by 2030
Residential
14,155
1
4T&426
Commercial
470
2$46
+0-2099
Industrial
1,146
442
400
Mixed Use
178
Note: The estimated future demand was calculated assuming an annual growth rate of 0.7 %.
The City's land use plan in the next chapter and its Planning and Zoning Code will help promote
an orderly overall pattern of land that offers a reasonable choice of suitable locations for uses,
separates incompatible uses, maintains the quality of existing development, provides a
consistent level of series, and creates a stable, predictable setting for future investment.
Planning Commission Draft - February 2012 - Amended 3 -14 -12 36
Blank Map Land Use Plan Classifications
Suburban Residential
The Suburban Residential district consists of single-family and multi family residential areas that are urban or
suburban in character. The area is higher density, lots are typically smaller and public water and sewer services
are required or planned. Streets should be developed to a paved standard and larger subdivisions should
provide sidewalks and public areas.
Rural Residential
The Rural Residential district includes areas that due to location orsite conditions, are best suited for large -lot
single - family low- density residential development. Homes in this district typically rely on individual on -site
water supply and wastewater disposal systems. Streets typically are gravel and subdivisions do not include
sidewalks.
Mixed Use
The Mixed Use district fosters a compatible mix of retail, service, office, public, institutional, recreational and
multi family residential uses. The district does not prescribe specific proportions for these uses, only that all
these uses are desirable within the district. The Mixed Use classification should accommodate existing similarly
developed areas and areas along corridors to provide transitions between the corridor and residential zones.
Commercial
The Commercial district is intended to create a concentrated, vibrant, and attractive downtown business
district which is convenient to both motorists and pedestrians. The district is designed to attract commerce
from within and beyond the community itself.
Industrial
This classification includes areas used for production, manufacturing, processing, packaging, distribution, and
other similar activities. The noise levels, odors and emissions typically generated are higher than other land
uses and may adversely affect neighboring properties.
Institutional
The institutional district provides an area in which government and tax exempt institutions can offer social and
cultural amenities to the citizens of the community. The primary use is public, non - profit and quasi - public uses
including government offices and facilities, schools, churches, and other community- service oriented facilities.
Parks, Recreation and Open Space
This classification includes public recreation facilities, as well as undeveloped lands intended to provide for
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 provide future natural resource development
should be included in this category.
Proposed Land Use Map
Updated December 14th 2011
Land Use Plan Classifications
Suburban Residential
The Suburban Residential chanct consists of single - family and multi - family residential areas that are urban or
suburban in character The area is higher density, lots are typically smaller and public waterand sewer services
are required or planned Streets should be developed to a paved standard and largersubdivihous should
provide sidewalks and public areas.
Rural Residential
The Rural Residential distant includes areas that, due to location or site conditions are best suited for large -lot
single - family lowwansity residential development Homes in this district typically rely on individual on -site water
supply and wastewater disposal systems. Streets typically are gravel and subdivisions do not include sidewalks.
Mixed Use _
The Mixed Use district fasters a compatible mix girdled, service, office, public, institutional, recreational and
multi- family residential uses. The district does not prescribe specific proportions for these uses, only that all
these uses are desirable within the distant. The Mixed Use classification should accommodate existing similarly
developed areas and areas along corridors to provide transitions between the corridor and residential zones.
Commercial 0
The Commercial district is intended to create a concentrated, vibrant, and attractive downtown business district
which is convenient to both motorists and pedestrians. The distant is designed to atus ct commerce from within
and beyond the community itself
Industrial =
This classification includes areas used forproduction, manufacturing, processing, packaging, disMbution, and
other similar activities. The noise levels, odors and emissions typically generated are higher than other land
uses and may adversely affect neighboring properties.
Institutional
The institutional district provides an amain which government and tax exempt institutions can offer social
'rid cultural amenities to the citizens of the community The primary use is public, non - profit, and quasi - public uses
,lading government offices and facilities, schools, churches, and other community- service oriented facilities.
Parks, Recreation and Open Space =
This classification includes public recreation facilities, as well as undeveloped lands intended to provide for
un somation of natural orscenic resources. These areas can be used fora venety ofpassive and active
cutdoorand miloorspons and recreational activities. Areas that may pmvide future natural resource
development should be included in this category.
CITY OF KENAI COMPREHENSIVE PLAN 2012
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Chapter 5: Land Use Plan
As a mature, slow - growing community, Kenai has the opportunity to develop a strategic
approach to adjust its zoning districts and consider land use ordinances that will improve public
amenities and services. The land use plan provides background information about current
issues and land uses that will be useful to frame future planning choices. As a subset of the
comprehensive plan, this land use plan includes land use maps, a description of the land use
classifications, and a summary of major land uses in the City of Kenai. The land use plan
provides background to the goals, objectives and strategies in Chapter 6.
Kenai is a mature community with a forecast for continuing modest growth. Much of the current
infrastructure and City layout is expected to remain in place in 2030 although some new growth
will occur. The land use plan provides information that will be useful to the City as it develops
plans to accommodate new growth and improve the quality of the already built community.
The City of Kenai encompasses 18,231 acres of land and water or about 28.5 square miles. As
of 2011, 20% (3,624 acres) of the City's total acreage included parcels with private or public
development. About 14,607 acres were undeveloped (i.e., acreage of total parcels without
development) .22 However, much of this vacant land is unsuitable for development or in public
ownership and thus not available for private development.
Kenai is fortunate to have an ample inventory of privately owned, vacant land suited for its
future demands. The City of Kenai and State of Alaska also own extensive public land in Kenai,
much of it wetlands and floodplains. These public lands have significant habitat, scenic,
recreational and natural open space values. With sound land use planning, Kenai can meet the
needs of settlement without compromising its natural setting.
5.1 Land Use Maps and Classifications
One of the most important purposes of the comprehensive plan is to guide development through
creation of maps that delineate land use classifications. In 2011, the Planning and Zoning
Commission reviewed the land use classifications for all areas in the City of Kenai and a revised
land use map will be included in the final Comprehensive Plan. The intent of these maps is to
guide future changes to the existing zoning districts, and for that reason they do not exactly
mirror the zoning districts in place when this plan was written. Table 14 describes the land use
classifications and which zoning districts relate to each land use classification, and Map 5
depicts the proposed land use plan.
The land use plan map complements the goals, objectives and strategies of the comprehensive
plan and provide guidance for land use decisions. Specifically, the map designates land use
classifications for major land uses. The land use plan map is generalized; the exact definition of
22 For purposes of determining development, parcels with improvements valued at $10,000 or more were
considered developed parcels.
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CITY OF KENAI COMPREHENSIVE PLAN ' 2012
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land uses by parcel is to be determined by revisions to the zoning map (Map 6). Areas at or
near the boundaries may be analyzed under either or both major land use classifications using
the goals and development policies in the comprehensive plan to clarify intent. It is anticipated
that once the revised comprehensive plan has been implemented through rezoning, the land
use classifications will be consistent with the zoning districts.
Table 14: Land Use Plan Classifications and Relationship to Zoning Districts23
Suburban Residential Land Use Classification
Zoning Districts
The Suburban Residential district consists of single - family and multi - family
Suburban Residential
residential areas that are urban or suburban in character. The area is higher
Suburban Residential
density, lots are typically smaller and public water and sewer services are
1&2
required or planned. Streets should be developed to a paved standard and
Urban Residential
larger subdivisions should provide sidewalks and public areas.
Rural Residential Land Use Classification
Zoning Districts
The Rural Residential district includes areas that, due to location or site
Rural Residential
conditions, are best suited for large -lot single - family low- density residential
Rural Residential 1
development. Homes in this district typically rely on individual on -site water
supply and wastewater disposal systems. Streets typically are gravel and
subdivisions do not include sidewalks.
Mixed Use Land Use Classification
Zoning Districts
The Mixed Use district fosters a compatible mix of retail, service, office,
Limited Commercial
public, institutional, recreational and multi - family residential uses. The district
Central Mixed Use
does not prescribe specific proportions for these uses, only that all these uses
Central Commercial
are desirable within the district. The Mixed Use classification should
Historic Townsite
accommodate existing similarly developed areas and areas along corridors to
provide transitions between the corridor and residential zones.
Commercial Land Use Classification
Zoning Districts
The Commercial district is intended to create a concentrated, vibrant, and
Central Mixed Use
attractive downtown business district which is convenient to both motorists
Central Commercial
and pedestrians. The district is designed to attract commerce from within and
General Commercial
beyond the community itself.
Light Industrial
Industrial Land Use Classification
Zoning Districts
This classification includes areas used for production, manufacturing,
Conservation
processing, packaging, distribution, and other similar activities. The noise
Heavy Industrial
levels, odors and emissions typically generated are higher than other land
Light Industrial
uses and may adversely affect neighboring ro erties.
Institutional Land Use Classification
Zoning Districts
The institutional district provides an area in which government and tax exempt
All Zoning Districts
institutions can offer social and cultural amenities to the citizens of the
community. The primary use is public, non- profit, and quasi - public uses
including government offices and facilities, schools, churches, and other
community-service oriented facilities.
Parks, Recreation and Open Space Land Use Classification
Zoning Districts
This classification includes public recreation facilities, as well as undeveloped
All Zoning Districts
lands intended to provide for 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 provide future
natural resource development should be included in this category.
23 Areas may include other zones not listed. The zoning listed is a general guide to land use
classifications.
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Source: City of Kenai
Kenai's land use plan and related goals, objectives and strategies are a decision - making tool
that provides a "blueprint" for growth and change in the community. The Planning & Zoning
Commission, the City Council, City staff, and private developers will rely on the plan as they
make the decisions that shape Kenai's future. The Proposed Land Use Plan and polices are
tools Kenai can use to implement a vision for how the community should evolve over the next
20 years.
Although the land use plan includes an analysis of land use, it does not regulate land use. That
is the task of the planning and zoning ordinances, including the zoning map. The
comprehensive plan, however, provides the public policy basis for defining the zoning districts
and related development standards that guide what happens in a specific zoning district. The
land use map should be used with the goals, objectives and strategies to guide growth.
5.2 Zoning Status
Zoning provides the City with its most important tool for determining what types of land uses are
allowed in different areas of the City. The City of Kenai Planning and Zoning Code include 16
different types of zoning districts, and the code includes a land use table that specifies what
types of land uses are allowed in each zoning district. A review of current zoning should include
consideration of opportunities to combine or remove some of the types of zoning districts. Table
15 provides the number of acres in each type of zoning district.
Table 15. Existing Zoning Districts
Zoning District
Acreage
Conservation
1,768
Rural Residential
12,669
Rural Residential 1
155
Suburban Residential
1,260
Suburban Residential 1
5
Suburban Residential 2
41
Urban Residential
16
Central Commercial
61
Central Mixed Use
178
General Commercial
353
Limited Commercial
56
Light Industrial
472
Heavy Industrial
681
Recreational
299
Townsite Historic
48
24 Ten (10) acres of land zoned Conservation is not included in this total because there is no Kenai
Peninsula Borough Parcel number associated with the land.
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Education
170
split
1
Total
18,231
Source: City or Kenai
5.3 Existing Land Use and Ownership Patterns
This section describes the major land uses in the City and some of the opportunities and
challenges for these areas. This discussion provides background for the issues, goals and
objectives in Chapter 6.
History, natural features, land ownership, and transportation improvements have shaped
Kenai's development and land use patterns. The historic townsite was constructed in a strategic
area overlooking the mouth of the Kenai River. As the town developed, wetland and floodplain
conditions strongly influenced the location of road corridors and settlement areas. War -time
construction of the airport just north of the original townsite limited opportunities to expand what
would be a logical expansion of the city center. As a result, Kenai's core business area
developed east and west along the Kenai Spur Highway. Later construction of the Warren Ames
Memorial Bridge /Bridge Access Road gave the Kalifornsky Beach area south of the Kenai River
a road connection to the rest of the City and spurred its development. Maps 7 through 9
(Wetlands and Floodplains, Aerial Photo, Existing Land Use) illustrate the land use patterns that
have resulted from the interplay of Kenai's site characteristics and development history.
Some key features of Kenai's development pattern are:
• The main road routes (Kenai Spur Highway, Beaver Loop Road) follow well- drained
developable upland corridors.
• Residential development is dispersed along the main road routes in several urban and
semi - suburban neighborhoods defined by natural features and transportation access.
• Most commercial development is located along the major transportation corridors, with
the largest concentration clustered near the intersection of the Kenai Spur Highway and
the Bridge Access Road.
• Neighborhood- oriented commercial development has emerged at several spots along
the highway and secondary state roads.
• The configuration of developable land and road corridors has produced a linear city form
with a very high ratio of highway road frontage to settled area.
• Most undeveloped land in the City is wetlands or floodplains, with low development
potential, but high value as habitat, natural area, or open space.
Developing residential neighborhoods where underused facilities (roads, water and sewer, fire
stations) are already in place or nearby makes full use of existing infrastructure and avoids the
cost of new facilities. Similarly, commercial and industrial uses require supporting infrastructure.
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Where feasible, infill and reuse of vacant or underused commercial and industrial properties
with existing infrastructure is generally more economical than development that requires new
infrastructure and services. Contiguous development costs less to serve than dispersed
development. For example, utility costs increase as the separation between developments
increases. Costs likewise increase as the distance from the existing service hook -ups increases.
Contiguous development near existing services makes best use of public development
expenditures. Depending on the particular financing arrangement, residents in compact, more
contiguous developments may subsidize sewer and water service for those in more sprawling
patterns. Where feasible, infill of existing buildings and land already served by these City
services will in the long run yield savings to the citizens of Kenai.
The broad purpose of the land use plan is to ensure an adequate supply of land that is:
• Suitable for development,
• In an ownership status that will allow development,
• Appropriately zoned,
• Located near needed utilities and services, and
• Located in desirable locations for various types of development.
5.3.1 Land Ownership
Over 66% of the land in the City of Kenai is government owned, about 30% is in private
ownership and 4.5% is in Native ownership. Table 16 and Map 10 illustrate land ownership
patterns in the City.
Table 16. Land Ownership
Owner
Acres
Percent
Private
5,485
30.4
State
6,424
35.3
city
4,829
26.2
Borough
852
4.7
Federal
3
0.0
Native
458
2.5
Native Allotments
180
2.0
Total
18,231
100.0
Source: Kenai Peninsula Borough Ci s
5.3.2 Suitability for Development
Local natural features have greatly influenced the settlement patterns in the community with
most development occurring on well- drained sites along highway corridors. Kenai has a variety
of lands that are appropriate for development. Of Kenai's 18,231 acres, about 3,624 acres are
already developed.25 Another 3,671 acres - are vacant, largely in private ownership, outside of
wetlands and floodplains, and may be suitable for development (Map 8). Access may limit
development in some areas.
25 Developed acreage was calculated for entire parcels with development valued at $10,000 or more.
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Much of Kenai's land base, about 10,600 acres, is publicly owned and classified as wetlands or
floodplains. The wetlands are concentrated north of the developed Kenai Spur Highway
corridor, north and south of Beaver Loop Road and along the Kenai River. The floodplains are
situated along the Kenai River. Minimal development has occurred in these areas, and while
they have limited potential for future development, they have a high value as natural areas and
may support some low- impact, low density uses.
Based on existing residential, commercial and industrial land use patterns and estimated
demand for land for those uses through 2020, the gross supply of privately owned, developable,
appropriately -zoned sites appears to be more than adequate for development needs in the
foreseeable future.
5.3.3 City Center
The city center encompasses an area of commercial development along the Kenai Spur
Highway and the mostly undeveloped area adjacent to the Bridge Access Road and the Spur
Highway known as Millennium Square. The City's dominant spatial pattern - linear growth along
the Kenai Spur Highway - suits local ground conditions, but it results in a weak, poorly defined
city center. The commercial areas in the city center include aging businesses as well as large,
new retail outlets. Although there is a public perception that there are many vacant buildings,
there are actually very few buildings that are vacant in the city center.
The development of the Millennium Square would be an integral part of redefining the city
center. This area, formerly known as the Daubenspeck Tract, encompasses several irregularly
shaped parcels totaling over 21 acres. The 2003 comprehensive plan contains useful
information about the ownership, history, and site characteristics as well as a development
strategy. Potential uses of the area identified in the 2003 plan from public planning workshops
include a convention /conference/visitor center complex; commercial lodgings; cultural,
educational, recreational, and entertainment facilities; marketplace of small shops; businesses
and professional offices; medium density and senior housing; health care facilities; open space,
and an interpretive site for historic Shk'ituk't village site.
5.3.4 Kenai Townsite Historic District
The City of Kenai created the Kenai Townsite Historic District in 1993, comprising 34 properties
in the traditional townsite. While locally significant, the townsite does not meet the standards for
a National Register Historic District. The Church of the Assumption of the Virgin Mary, however,
is listed on the National Register of Historic Places, and other properties in the Historic District
may qualify for listing.
The district's buildings span Kenai's evolution from its origin as a Dena'ina village through the
Russian settlement period to today's mix of old and new buildings. Unfortunately, many of the
district's oldest, most historic buildings were lost before the City created a special zoning district
and ordinance to conserve the old townsite. The purpose of the historic district is to manage
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CITY OF KENAI COMPREHENSIVE PLAN 2012
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new development and building alterations to protect and enhance the district's historic
character. All construction in the district must be compatible with development criteria.
Residential and business uses are regarded as desirable and compatible mixed uses.
During development of the revision to this Comprehensive Plan, the Kenaitze Tribe expressed
an interest in developing a program to document the Dena'ina place names in the Historic
District and other areas of the community. Such an initiative would provide a valuable addition to
the Historic District.
At the time this Comprehensive Plan revision
was written, the Kenaitze Tribe plans to
break ground on a new healthcare facility in
the historic townsite during spring 2012. The
52,000 square foot Dena'ina Health and
Wellness Center will be located on
approximately four acres of land owned by
the Tribe.
As the uses in the Townsite Historic District
evolve, a review of the zoning requirements
may be useful. New guidelines are needed to
encourage development while protecting the
historic qualities of the district.
5.3.5 Residential Neighborhoods
Figure 4: Dena'ina Health and Wellness Center
The natural terrain, early settlement, and highway route shaped the pattern of residential
development in Kenai. Residential development is concentrated in the original townsite area,
adjacent to the Kenai Spur Highway, along Beaver Loop Road, and on the south side of the
Kenai River adjacent to Kalifornsky Beach Road.
Kenai has a large inventory of vacant residential -zoned tracts that provides an opportunity to
plan for their proper subdivision and development. Many of these tracts are already served with
improved roads and water and service. Unfortunately, some of the residential lots have gone
undeveloped because they are smaller than today's homebuyers prefer. It may be possible to
consolidate and replat some of the smaller lots to make them more marketable. In addition,
promoting infill development on vacant improved lots is a desirable goal to achieve efficient land
use and optimal use of City infrastructure.
Some of Kenai's residential subdivisions lack desired amenities such as landscaped buffers
from incompatible uses and traffic, neighborhood parks, better neighborhood access by foot to
local schools and play areas, and street lighting.
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Beaver Loop Road is a rural area with scenic vistas, natural open space, and a low- density
residential lifestyle with a short drive to City services. The City is seeking funding to widen the
road shoulders and develop bike paths in this area. This proposed development and the phased
expansion of the water and sewer infrastructure, including expansion of the water treatment
facility, may encourage growth in this area. Much of the vacant property in the Beaver Loop
area is affected by wetland or floodplain conditions, and may not be suitable for uses more
intense than rural residential development.
Construction of the Bridge Access Road and the Warren Ames Memorial Bridge opened the
Kalifornsky Beach Road area for semi -urban settlement. Better access has fostered
development of attractive, low- density housing with onsite water and sewer facilities.
Kenai residents place a high value on residential neighborhoods that are safe for all ages and
located near important community facilities such as schools, the youth center, the library, parks,
government services, and commercial areas.
5.3.6 Commercial Land Use
Kenai's role as a major trade and services center for the Kenai Peninsula generates local
investment, employment, and sales tax revenue. In addition to providing local citizens a varied
mix of shopping opportunities, much of the market base lives outside Kenai.
Commercial development has occurred in several places in the community with the major
development corridor along the Kenai Spur Highway. Businesses prefer to locate in areas
where they will be highly visible to motorists. Other commercial areas include areas near the
airport and along the Bridge Access Road.
Some of Kenai's older business areas are showing signs of economic obsolescence. Retail
marketing trends, particularly the trend towards big -box retail stores, have weakened
established businesses. This trend poses challenges to the success of Kenai's business sector
and the community's appearance. Local residents have expressed a strong desire for
improvements to the appearance of older commercial buildings.
5.3.7 Industrial Land Use
Existing industrial land uses in Kenai total about 110 acres, and another 872 acres are vacant
and zoned for industrial uses. While the current economic outlook does not indicate a demand
for large industrial sites in the near future, maintaining the viability of existing industry is a land
use and economic priority.
Currently, the chief industrial uses are marine - oriented (e.g., fish processing, upland storage,
fuel storage, marine repair, recreational fishing), aviation - related (e.g., aviation support services,
cargo storage and transfer), oil field support services, and gravel extraction. The decline of the
commercial fishing industry has negatively affected operations of some fish processing plants.
Some processors have adapted by producing fresh fish products rather than canned fish.
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In 2011, the City of Kenai received a legislative appropriation of $761,650 to pursue an
industrial park adjacent to Marathon Road. An engineering firm developed a conceptual layout
for the 37 -acre industrial park which will encompass 20 -25 lots. During January 2012, platting
was completed for the site and construction is expected to begin during the spring of 2012. The
majority of companies expressing interest in the facility represent the oil and gas industry which
demonstrates a revitalization of this industry on the Kenai Peninsula.
While industry is expected to remain a minor land use, Kenai should reserve its best - located
industrial -zoned tracts for future industrial uses that would not be suitable for residential or
commercial zones. Such a strategic outlook to the future will allow Kenai to take advantage of
opportunities for future development.
The availability of local gravel sources plays an important role in encouragement of
development. Historically, gravel extraction has been allowed as a conditional use in rural
areas, particularly off Beaver Loop Road. Local sources of gravel and fill materials are
economically advantageous, but there is potential for conflicts between gravel extraction and
transport and other nearby uses, particularly residential neighborhoods. The City's conditional
use and subdivision review processes can be effective tools to require site reclamation and
minimize negative impacts from gravel operations. Mitigation plans that accompany permits
address impacts such as dust, noise, road safety hazards, drainage, groundwater degradation,
and other impacts.
5.3.8 Open Space and Habitats
Open space includes areas managed for parks and recreation, areas zoned for conservation,
and undevelopable areas. The City's 358 acres designated for parks, recreation and open
space far exceeds the National Recreation and Park Association guidelines for parks and open
space acreage, other than the neighborhood parks category (see Section 4.5.4 for a description
of areas managed by the Kenai Parks and Recreation Department). In addition, state and
federal lands in and nearby the City have also been designated for these purposes, including
areas adjacent to the Kenai River.
The City has zoned approximately 1,778 acres for conservation where uses are restricted,
although some of this acreage may be more suitable for development (e.g., lands adjacent to
the airport). Approximately _ acres owned by the airport currently zoned as a conservation
district may should be considered for rezoning for commercial or industrial uses.
In addition to areas designated for recreation and open space, some areas provide de facto
open space because of incompatibility with other uses. For example, wetlands, stream
corridors, and utility corridors are not suitable for development.
Open space areas provide outdoor recreation opportunities, visual and sound buffers and
habitats for fish and wildlife. In addition to its habitat functions, wetlands provide flood control
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and they act as a natural water purification system. Establishing corridors between designated
open space areas is important for wildlife migration and to retain options for future trail
expansion. In addition to other values, open space can enhance nearby property values.
A strategic evaluation of zoning districts may be merited to determine what areas zoned for
conservation would be more suitable for other uses and what areas might be more appropriate
for a zoning as conservation. For instance, some of the areas around the airport currently zoned
for conservation may be more suitable for development. The Angler Acres subdivision is
another example of an area where zoning should be changed to match the use. The area is
currently zoned Rural Residential, however, through the Conditional Use process the majority of
developed properties operate summer businesses (guides, cabin rentals, and lodges). Bringing
the zoning into agreement with expected use would remove an administrative obstacle to
acceptable development on airport property and properties such as the Angler Acres
subdivision. Areas zoned for other purposes may be more appropriately zoned for conservation.
As an example, about 4,600 acres north of the airport, mostly State Mental Health Trust lands,
are classified as wetlands, and some acreage in the Kenai River floodplain is zoned as rural
residential. These public lands may be suitable for rezoning for conservation because they have
negligible development potential and are surplus to Kenai's future development needs.
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