HomeMy WebLinkAbout2012-05-09 Planning & Zoning Packet - Work SessionAGENDA
CITY OF KENAI
PLANNING & ZONING COMMISSION
WORK SESSION
May 9,2012
6 — 7 p.m. & continue after the regular meeting.
Work session will adjourn no later than 9 p.m.
1. Call to Order
2. Roll Call
3. Approval of Agenda
4. *Public Comments - Background Report for the Comprehensive Plan
5. Commission Discussion: Background Report for the Comprehensive Plan
a. Review will begin at Section 4.7, Table 12
6. *Additional Public Comments
7. Adjournment
* Public comment limited to three (3) minutes per speaker; thirty (30) minutes
aggregated. The Commission may relax this restriction.
CITY OF KENAI COMPREHENSIVE PLAN - YOUR CITY, YOUR PLAN 1 2012
Imagine Kenai 2030
City of Kenai Comprehensive Plan Revision
Table of Contents
Planning Commission Draft - Updated 5 -4 -12 with Commission Changes through 4 -25 -12
Chapter 1: Introduction 1
1.1 Purpose of Comprehensive Planning
1.2 Goals of the Plan
1.3 How to Use this Plan
2
3
4
Chapter 2: City of Kenai 5
2.1 Powers of the City 5
2.2 Planning and Zoning Commission 6
2.3 Context for Planning 6
Chapter 3: Native Community 10
Chapter 4: Background Information 13
4.1 Settlement History 13
4.2 Setting 14
4.2.1 Climate and Environment 15
4.2.2 Natural Hazards 15
4.3 Population, Education and Housing 17
4.3.1 Population 17
Planning Commission Draft - Amended 5 -4 -12
CITY OF KENAI COMPREHENSIVE PLAN - YOUR CITY, YOUR PLAN l 2012
4.3.2 Education 19
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
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 31
4.5.5 Senior Citizen Facilities and Services 32
4.5.6 Kenai Community Library 35
4.5.7 Other Services 36
4.6 City of Kenai Finances 37
4.6.1 Expenditures 37
4.6.2 Revenues 37
4.7 Forecast of Economy, Population and Housing Demand 37
Chapter 5: Land Use Plan 40
Planning Commission Draft — Amended 4 -5 -12 ii
CITY OF KENAI COMPREHENSIVE PLAN - YOUR CITY, YOUR PLAN l 2012
5.1 Land Use Maps and Classifications 40
5.2 Zoning Status 41
5.3 Existing Land Use and Ownership Patterns 42
5.3.1 Land Ownership 45
5.3.2 Suitability for Development 45
5.3.3 City Center 46
5.3.4 Kenai Townsite Historic District 46
5.3.5 Residential Neighborhoods 47
5.3.6 Commercial Land Use 48
5.3.7 Industrial Land Use 48
5.3.8 Open Space and Habitats 49
Chapter 6: Goals, Objectives, Strategies, and Plan Implementation 52
52
References 53
Appendix A: Public Participation Plan
Appendix B: Economic Indicators
Maps
Map 1: Location Map
Map 2: City of Kenai Water System 2012
Map 3: City of Kenai Sewer System 2012
Planning Commission Draft — Amended 4 -5 -12 iii
CITY OF KENAI COMPREHENSIVE PLAN - YOUR CITY, YOUR PLAN 1 2012
Map 4: City of Kenai Maintained Roads 2012
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
Figures
Figure 1: Past and Future Projected Erosion Rates
Figure 2: Population, City of Kenai 1900 -2010
Figure 3: City of Kenai Distribution of Employment 2009
Figure 4: Kenai Spur Highway Average Daily Traffic 2000 and 2010
Figure 5: Estimated Population City of Kenai, 2010 -2035
Figure 6: Conceptual Design of Dena'ina Wellness Center
Planning Commission Draft — Amended 4 -5 -12 iv
CITY OF KENAI COMPREHENSIVE PLAN - YOUR CITY, YOUR PLAN 2012
Acknowledgements
Kenai City Council
Pat Porter, Mayor
Robert Molloy
Brian Gabriel
Mike Boyle
Student Representatives:
Ryan Marquis, Vice Mayor
Tim Navarre
Terry Bookey
Joe Moore*
Austin Daly Hannah Coffman*
Planning and Zoning Commission
Jeff Twait, Chair
Kenneth Peterson
Phil Bryson
Karen Koester
Tim Navarre*
Consultants
Glenn Gray & Associates
Alaska Map Company
Henry Knackstedt, Vice Chair
Clifford Smith
James Rowell
Kurt Rogers*
Scott Romain*
Bechtol Planning & Development
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 and to Joe Moore
for his review of the fisheries section.
*Former council members, commission members and staff
Planning Commission Draft — Amended 4 -5 -12
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, 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*
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
CITY OF KENAI COMPREHENSIVE PLAN - YOUR CITY, YOUR PLAN
2012
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 Kenai1 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
1 Throughout the plan, the City of Kenai is referred to as Kenai or the City.
Planning Commission Draft — Amended 5 -4 -12
Map 1. Location Map, City of Kenai, 2003
CITY OF KENAI COMPREHENSIVE PLAN - YOUR CITY, YOUR PLAN
2012
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.
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.
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.
Planning Commission Draft - Amended 5 -4 -12
1.2 Goals of the Plan
CITY OF KENAI COMPREHENSIVE PLAN - YOUR CITY, YOUR PLAN 1 2012
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.
Planning Commission Draft - Amended 4 -5 -12
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.
CITY OF KENAI COMPREHENSIVE PLAN - YOUR CITY, YOUR PLAN 1 2012
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
• 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
Notes:
Planning Commission Draft - Amended 4 -5 -12
CITY OF KENAI COMPREHENSIVE PLAN - YOUR CITY, YOUR PLAN 1 2012
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
in1963 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.
Planning Commission Draft — Amended 4 -5 -12
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 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 determination of all
matters of policy, are vested in the City Council. The City of
Kenai provides a variety of service s 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.
CITY OF KENAI COMPREHENSIVE PLAN - YOUR CITY, YOUR PLAN 1 2012
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 1984,2 the Kenai Peninsula Borough
delegated zoning powers to the City of Kenai and in May
1990,3 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 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 7- 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
2 Kenai Peninsula Borough Ordinance 84 -40.
3 Kenai Peninsula Borough Ordinance 90 -31.
Planning Commission Draft — Amended 4 -5 -12
• 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
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.
CITY OF KENAI COMPREHENSIVE PLAN - YOUR CITY, YOUR PLAN
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.
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
Planning Commission Draft — Amended 4 -5 -12
2012
"WI
Year
Table 1: Previous Comprehensive Plans
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
(revised
1996)
After the mid -1980s recession, Kenai geared down its growth and development
expectations. This plan assumed a year 2000 population of 8,150 persons.
Reviving the 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.
CITY OF KENAI COMPREHENSIVE PLAN - YOUR CITY, YOUR PLAN 2012
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.
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.
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
Kenai Peninsula Borough Coastal
Management Plano
2008
Kenai Airport Supplemental Planning
Assessment
2007
City of Kenai
Kenai Economic Development Strategy
2006
City of Kenai with
Americorps *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 Plans
1997
City of Kenai
4 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.
5 The Airport Master Plan will be updated in 2012.
Planning Commission Draft — Amended 4 -5 -12
CITY OF KENAI COMPREHENSIVE PLAN - YOUR CITY, YOUR PLAN 1 2012
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
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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.
CITY OF KENAI COMPREHENSIVE PLAN - YOUR CITY, YOUR PLAN ( 2012
Chapter 3: Native Community
Alaska 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.
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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).6 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
6 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).
10
CITY OF KENAI COMPREHENSIVE PLAN - YOUR CITY, YOUR PLAN 1 2012
Kenaitze Tribe operates a subsistence fishing 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,
representatives from the Kenaitze Indian Tribe expressed an
interest in developing maps and signage to reflect traditional
place names. The Kenaitze Indian Tribe is investigating ways
to fund this initiative
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
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corporations established by ANCSA.7 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.8 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.
A 13th corporation exists for Alaska Native people living outside of Alaska
when ANCSA was passed.
8 The Kenai National Moose Range eventually became the Kenai National
Wildlife Refuge.
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CITY OF KENAI COMPREHENSIVE PLAN - YOUR CITY, YOUR PLAN I 2012
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.
CITY OF KENAI COMPREHENSIVE PLAN - YOUR CITY, YOUR PLAN 1 2012
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.
The Dena'ina people lived in the region long before the first
Russian explorers arrived in Alaska in 1741, While they do not
measure their history in years, the Dena'ina consider they
have lived in the area since time immemorial, a period that is
beyond the reach of memory or record.
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When the first Russians arrived, there was a thriving Dena'ina
Athabascan Indian Village on the high bluff overlooking Cook
Inlet near the mouth of the Kenai River. At that time, 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.
The local Dena'ina people originally called themselves
Kahtnuht'ana - "People of the Kenai River" (Kahtnu). The
Russians, however, called them Kenaitze from the Dena'ina
stem "ken," which refers to flat land meaning the wave cut
terrace Kenai is built on, and the Russian "- itze," which means
"people of." So, Kenatize means "people of the flat land." 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
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CITY OF KENAI COMPREHENSIVE PLAN - YOUR CITY, YOUR PLAN 1 2012
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.
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.
Planning Commission Draft — Amended 4 -5 -12
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.
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.
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CITY OF KENAI COMPREHENSIVE PLAN - YOUR CITY, YOUR PLAN
2012
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.
Planning Commission Draft — Amended 4 -5 -12
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 2011.9
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 with low risks include
tsunamis. The plan includes a vulnerability assessment for
City facilities and infrastructure.
Kenai's high -
risk hazards
include: Floods,
wildfire,
earthquakes,
weather, and
erosion.
9 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.
15
CITY OF KENAI COMPREHENSIVE PLAN - YOUR CITY, YOUR PLAN 2012
Figure 1: Past and Future Projected Erosion Rates
Source: U.S. Army Corps of Engineers 2011
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
Planning Commission Draft — Amended 4 -5 -12
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.1° 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.
10 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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CITY OF KENAI COMPREHENSIVE PLAN - YOUR CITY, YOUR PLAN 1 2012
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).
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.
Planning Commission Draft — Amended 4 -5 -12
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 2).
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
17
CITY OF KENAI COMPREHENSIVE PLAN - YOUR CITY, YOUR PLAN 1 2012
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.
Figure 2: Population, City of Kenai 1900 -2010
8000
7000
6000
5000
4000
3000
2000
1000
0
290 250 332 286 303 321
-- -- _
1900 1910 1920 1930 1940 1950 1960 1970 1980 1990 2000 2010
Source: U.S. Census Bureau
Planning Commission Draft — Amended 4 -5 -12
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 34.7 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 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 higher than that of Alaska.
Since 1990, the average household size in Kenai has continued
Table 3. Population Change by Age Group
City of Kenai, 1990 -2010
Age group
1990
2000
2010
Change
1990 -2000
Change
2000 -2010
Under 18 yrs
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 yrs+
259
443
695
+71.0%
+56.9%
Total
6,327
6,942
7,100
+9.7%
+ 2.3%
ource: U.J. [.ensus I ureau
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CITY OF KENAI COMPREHENSIVE PLAN - YOUR CITY, YOUR PLAN l 2012
to decline. As shown in Table 4, Kenai's average household
size in 2010 was smaller than the Alaska and 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.
Table 4. Additional 2010 Demographic Information:
Comparison of City of Kenai, Alaska and the U.S
Subject
Kenai
Alaska
U.S.
Median Age
34.7
33.8
37.2
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%
52%
49.2%
Female
50.4%
48%
50.8%
Household Size
2.51
2.65
2.58
ource: U.S. Census Bureau
Planning Commission Draft - Amended 4 -5 -12
4.3.2 Education
U.S. Census Bureau information for the period 2006 -2010
provides information about educational trends.11 As shown in
Table 5, there has been decreased enrollment in high school
and younger and increased enrollment in college since 2000.
The average estimated percent of high school graduates and
people with a bachelor's degree or higher increased for the
period 2006 -2010. For the same period, the percentage of
high school graduates or higher in the City of Kenai was 91.6%
which was higher than for United States percentage (85.0 %)
and slightly higher than for Alaska as a whole (90.7 %). The
percentage of people with a bachelor's degree or higher in the
City of Kenai was 18 %, lower than that for the United States
(27.9 %) and for Alaska (27.0 %).
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
11 For cities with a population the size of Kenai, the American Community Survey
uses five year averages for some survey data such as education.
19
CITY OF KENAI COMPREHENSIVE PLAN - YOUR CITY, YOUR PLAN 1 2012
and sewage disposal systems and use natural gas. Table 6
provides additional housing information.
Table 5. City of Kenai Educational Statistics 2000 and 2010
Topic
2000
201012
School Enrollment
Number of Vacant Units
357
Nursery /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
295
Total 3 years and older in school
1,901
1,791
Educational Attainment (25 years & older)
Less than 9th Grade
3.3%
1.3%
9th - 12th 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%
10.2%
Bachelor's Degree
11.1%
11.9%
Graduate or Professional Degree
5.0%
6.1%
Population 25 Years and Over
4,212
4,316
Source: U.S. Census Bureau
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
Average Household Size - Renter- occupied
2.29
ource: U.S. Census Bureau
Planning Commission Draft — Amended 4 -5 -12
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).13
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. 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
13 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.
20
CITY OF KENAI COMPREHENSIVE PLAN - YOUR CITY, YOUR PLAN 1 2012
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 Kenai Peninsula Borough has
one of the most diverse economies in Alaska, and this
diversity has softened 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 2006 Kenai Economic Development
Strategy, will provide more current economic information for
the City. The report includes a work plan that addresses five
Planning Commission Draft — Amended 4 -5 -12
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.
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).14 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 placing the
community's residents in a good position for access to the
14 During August 2011, the Lowes Improvement Center closed
unexpectedly.
21
CITY OF KENAI COMPREHENSIVE PLAN - YOUR CITY, YOUR PLAN l 2012
region's job pool. The U.S. Census Bureau's American
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
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.
Planning Commission Draft — Amended 4 -5 -12
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 3).
Government workers included 569 people or 15.8% of the
workforce. Tables 8 and 9 provide information about
occupation by type and by industry.
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.
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.
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CITY OF KENAI COMPREHENSIVE PLAN - YOUR CITY, YOUR PLAN 1 2012
Table 8. City of Kenai Occupation by Type: 2000 and 2009
Occupational Type
2000
2009
Number
Increase
Number
Increase
Management,
Professional & Related
688
24.1%
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
14.2%
541
15.0%
Production,
Transportation &
Material Moving
477
16.7%
413
11.5%
Total Employed 16 Years
and Over
2,858
100%
3,605
100%
Source: U.S. Census Bureau
4.4.2 Business Indicators
This section provides a brief overview of some business
indicators.
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 -
Planning Commission Draft — Amended 4 -5 -12
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.
Figure 3
City of Kenai Distribution of Employment 2009
• Wage & Salaried to Self employed
Government • Unpaid family
1%
Source: U.S. Census Bureau
Building Permits: While the Kenai Peninsula Borough does
not issue building permits, the communities of Kenai, Homer,
Seldovia, Seward, and Soldotna issue permits. 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
23
CITY OF KENAI COMPREHENSIVE PLAN - YOUR CITY, YOUR PLAN j 2012
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
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 regions. 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.
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.
Planning Commission Draft — Amended 4 -5 -12
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 remains active
due to the new oil and gas exploration, and LNG shipments to
Asia.
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.
The refinery produces ultra -low sulfur gasoline and diesel, jet
fuel, heating oil, heavy fuel oils, propane and asphalt.
24
CITY OF KENAI COMPREHENSIVE PLAN - YOUR CITY, YOUR PLAN 1 2012
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
Department of Natural Resources 2011). The study also
emphasized the importance of natural gas storage facilities in
leveling 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 in 2011, Escopeta Oil and Gas
brought a jack -up drilling rig to Cook Inlet, the 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.
Planning Commission Draft — Amended 4 -5 -12
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 6 -acre pad with injection wells for storage of
natural gas during summer months when there is excess
capacity. The stored gas will meet the peak demands for
natural gas during the winter months for the Kenai Peninsula
and Anchorage markets.
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,
while cyclical, are still the foundation of Kenai's economy and
still a driving economic force (Kenai Chamber of Commerce
2012). In addition to some year round and many seasonal
employment opportunities, the local commercial fishing and
processing industry rely upon numerous local vendors to
supply and support their business year round. Seafood
processing continues to contribute to the local economy.
Companies process salmon, herring, halibut, pacific and black
cod and razor clams, including locally caught seafood as well
as fish caught in other areas of the state such as Bristol Bay,
25
CITY OF KENAI COMPREHENSIVE PLAN - YOUR CITY, YOUR PLAN
2012
Prince William Sound and Kodiak. While the seafood industry
in Cook Inlet originally focused on production of high
quantities of canned salmon, Kenai no longer has a true
"salmon cannery." Local seafood processors now focus on
predominantly high quality fresh seafood delivered across the
United States during the salmon and halibut season as well as
fresh frozen products that are distributed to markets
worldwide after the season.
The Alaska Seafood Marketing Institute lists 7 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.
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
ource: Kenai Peninsula Borough 2000, 2009
In 2009, Kenai was ranked as one of the top 50 U.S. ports for
volume of seafood deliveries with a landed value of $11.5
million (DCCED 2011). While not a complete picture, Table 10
Planning Commission Draft — Amended 4 -5 -12
provides a snapshot of salmon and halibut harvests and
permit holders between 2000 and 2008.
4.4.5 Visitor Industry
The Alaska Department of Commerce, Community and
Economic Development estimates that about 500,000 people
visit the Kenai Peninsula each summer. While tourism has
been one of the fastest growing sectors in the Borough, 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 36,524 in 2007
(for the period June- August of each year) (Kenai Peninsula
Borough 2009). These summer months account for over two -
thirds of annual visits.
26
CITY OF KENAI COMPREHENSIVE PLAN - YOUR CITY, YOUR PLAN 1 2012
The Kenai River provides a major recreation destination for
both residents and visitors. 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 on the Kenai River Professional
Guide Association's membership list have a Kenai address;
although it should be noted that some Kenai addresses are
actually outside the City boundaries (Kenai River Professional
Guide Association 2011).
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 gift shop. 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. The continued provision and expansion of these
services will depend on the willingness of Kenai citizens to
pay for them or through other funding sources.
Planning Commission Draft — Amended 4 -5 -12
4.5.1 Water and Sewer Systems
About 1,680 homes and businesses (4,000 -5,000 users), or
70% of the City's population, 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. 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, flow and pressure.
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. Plan
implementation?
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 within the boundaries of
the community. The fire department is responsible for all fire
27
CITY OF KENAI COMPREHENSIVE PLAN - YOUR CITY, YOUR PLAN 1 2012
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.
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. Limited public transportation is available
through CARTS (Central Area Rural Transit System).
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, 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 is funded with municipal revenue, state - shared
revenue, and by property owners in Local Improvement
Districts (LIDs). Maintenance is funded on an annual basis
Planning Commission Draft — Amended 4 -5 -12
using revenue from sales tax and property taxes. 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.
Traffic at intersections along the Kenai Spur Highway has
increased an average of 15% between 2000 and 2010 (Figure
4). The greatest increase in traffic occurred at the
intersections of Swires Drive (26 %), Main Street (26 %) and
Airport Way (18 %).
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
28
CITY OF KENAI COMPREHENSIVE PLAN - YOUR CITY, YOUR PLAN 1 2012
safety of doing business along parts of the Kenai Spur
Highway corridor.
18000
16000
14000
12000
10000
8000
6000
4000
2000
0
Figure 4: Kenai Spur Highway
Average Daily Traffic 2000 and 2010
MINI MEMEL
oo( ,\A•A e44" Ot
.46 •t� �`tey ego ��o� ep �� a
tea P\�Qo dot �a�o
Source: Alaska Department of Transportation and Public Facilities 2010
Kenai Municipal Airport: The primary
mission of the Kenai Municipal Airport is
to be the commercial air transportation
gateway to the Kenai Peninsula Borough
and West Cook Inlet.
Sena r
Municipal Airport
The City -owned and operated airport is centrally located on
approximately 1,481 acres of land near downtown Kenai. The
airport property encompasses the airfield, a major portion of
central Kenai, and several undeveloped areas.
Planning Commission Draft — Amended 4 -5 -12
The Federal Aviation Administration (FAA) 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 potential for growth.
The Airport is currently developing an 42 acre industrial park
to the northeast along Marathon Road which will provide a
center for future industrial activity. Additionally, the Airport
is developing hangar lease lots with associated taxiways and
roads adjacent to the taxiway /slip area at the southern end of
the water taxiway. These lots will be suitable for commercial
hangers as well as T- hangers.
The Federal Aviation Administration (FAA) classifies the
airport as a Commercial Service- Primary Airport; commercial
service airports are defined as those airports having 2, 500 or
more annual enplanements with primary airports defined as
commercial service airports having 10,000 or more annual
enplanements. The designated role of the Kenai Airport is to
serve short -haul air carrier routes of less than 500 miles. The
airport consists of three runways; grooved 7,830 foot asphalt
runway, 2,000 foot gravel strip, and 4,600 foot water runway,
two landing and takeoff helipads, and numerous taxiways.
The asphalt runway is equipped with an instrument landing
system (ILS). Southwest of the terminal building are 40 long-
term paved tiedowns of which 10 have electricity. At the float
plane basin there are 25 long -term tiedown slips, 10 transient
slips and can accommodate aircraft with up to a 48 -foot wing
span in private slips and a 65 -foot wing span in commercial
slips. Both long -term and transient tiedowns are available at
29
CITY OF KENAI COMPREHENSIVE PLAN - YOUR CITY, YOUR PLAN 1 2012
the gravel strip. Fly -in camp sites are available at the float
plane basin and gravel runway apron. Fuel is available for
both wheeled and float planes with 24 -hour credit card
machines.
Two commuter airlines offer scheduled service between Kenai
and Anchorage. Charter services are also available. The
Regional Flight Service Station is located at the Kenai Airport
and is open 24 hours a day. A control tower is operated at the
Kenai Airport. A restaurant, lounge, car rentals, and taxis are
available in the terminal. Short and long -term vehicle parking
is available at the terminal. Hotel accommodations are located
nearby.
The 1963 deed for the airport requires airport lands to be
managed for use and support of the airport. Airport Land is
identified on the Airport Layout Plan (ALP). Title 21 of the
Kenai Municipal Code provides guidance for lease, sale, and
use of airport -owned properties to ensure there is an
adequate supply of land to support operation of the airport
and to reduce incompatible uses in the airport proper. The
conservation zoning of airport lands does not support this
requirement. The City should consider rezoning these lands
to an industrial zone within the Airport Reserve and as
appropriate elsewhere to provide for development to highest
and best uses for the airport, including support for airport -
related uses, for revenue- generating leases, for other private
development, or for public improvements. The airport leases a
Planning Commission Draft — Amended 4 -5 -12
number of developed parcels including the Alaska Regional
Fire Training Facility, Animal Control Shelter, City shop, the
Flight Service Station, and numerous other properties. These
leases provide funding for airport operations.
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 and is expected to be completed in 2012. The 1997
Airport Master Plan developed local noise exposure maps as
of 1995 (actual) and estimated noise exposure by 2015. The
footprint of the projected 2015 65 dB DNL is slightly smaller
than for 1995. This was due to proposed airport
improvements. In 2001, an updated noise exposure map
showed no change to the projected 2015 noise contours. An
updated study is planned with the 2012 master plan.
Figure 5 illustrates the enplanements between 2000 and 2011
with a high of 103,180 enplanements in 2000 and a low of
86,656 in 2002.
A study completed in association with the 2005 Kenai Airport
Master Plan found that the airport had a considerable impact
to the local economy (City of Kenai 2005b). This study
estimated that the airport generated 533 full time jobs in
2004, including 318 direct jobs and 215 indirect and induced
30
CITY OF KENAI COMPREHENSIVE PLAN - YOUR CITY, YOUR PLAN 1 2012
jobs.15 Also during 2004, the airport and generated a payroll
of nearly $25 million and $44 million in business revenue
(direct, indirect and induced payroll and revenue).
120,000
100,000
80,000
60,000
40,000
20,000
0
Figure 5: Enplanements Kenai Airport
2000-2011
'1111111 I I I I
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
Source: City of Kenai
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
15 The jobs, payroll and business revenue figures include those generated
by the airport as well as by visitors who travel to Kenai by plane. Impacts
to aviation - related businesses result in direct economic impacts, re-
spending in the local economy by local airport related business results in
indirect impacts, and re- spending of wages from airport- related income
results in induced economic impacts.
Planning Commission Draft — Amended 4 -5 -12
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, while the
boat launching ramp is one of the area's most popular
launching facilities during the dip net fishery. In addition to
the boat launch ramps, there are public restrooms and fresh
water available. The City leases a fueling facility and gasoline
and diesel are available.
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 2011a).
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 plan includes core principles and priorities
for maintenance, safety upgrades, park development, and
creation of a tent campground (City of Kenai 2011).
31
CITY OF KENAI COMPREHENSIVE PLAN - YOUR CITY, YOUR PLAN 1 2012
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 pedestrian trails
(See Table 11). The City leases 120 acres for an 18 -hole golf
course that is privately operated. Through a partnership with
the City, the Boys and Girls Club operates a 17,700 square foot
recreation center which provides numerous activities for the
citizens of Kenai as listed in Table 11. In addition, the
Department provides support for the annual personal use
fishery, provides an area for community gardens, and
manages volunteer programs, such as the adopt -a -park
program.
A 7- member Parks and Recreation Commission and a 7-
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 7- member
Council on Aging provides advice to the City Council on senior
Planning Commission Draft — Amended 4 -5 -12
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.
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 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.
32
CITY OF KENAI COMPREHENSIVE PLAN - YOUR CITY, YOUR PLAN
2012
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 /a16
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
North Beach Dunes
20.0
2 elevated stairways with post /chain fence to protect dunes and restroom facilities
16 Acreage is not provided for school facilities because they are not managed by the Parks and Recreation Department.
Planning Commission Draft — Amended 5 -4 -12
33
CITY OF KENAI COMPREHENSIVE PLAN - YOUR CITY, YOUR PLAN 1 2012
Table 11: City of Kenai Parks and Open Space
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 grills 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 Acreage
358
Acreage managed by the Parks & Recreation Department
Planning Commission Draft - Amended 4 -5 -12 34
CITY OF KENAI COMPREHENSIVE PLAN - YOUR CITY, YOUR PLAN 1 2012
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
website 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.
Planning Commission Draft — Amended 5 -4 -12
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, and books on tape. 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 (an online language
learning program). 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 7
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.
35
4.5.7 Other Services
CITY OF KENAI COMPREHENSIVE PLAN - YOUR CITY, YOUR PLAN 1 2012
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 is
operated by Kenai Chamber of Commerce and Visitor Center,
LLC through a facilities management agreement with the City.
The Center houses a permanent collection of historic artifacts,
wildlife exhibits and a gift shop.
The City leases land for a nominal fee to support organizations
such as the Kenai Chamber of Commerce and Visitor Center
LLC, 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. The City
supports multiple agencies and public activities through
grants including the Kenai Watershed Forum, Oilers Baseball,
the Chamber, Industry Appreciation Day, Central Area Rural
Transit System (CARTS), Boys & Girls Club, the Economic
Outlook Forum, to name a few. Coordinating services to
ensure cost - effective and efficient delivery will be important
as public dollars decline. Opportunities to combine services or
Planning Commission Draft — Amended 4 -5 -12
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 area wide 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, Beaver Loop Road, Bridge Access Road,
Strawberry Road, and Kalifornsky Beach Road. Other state
facilities include the State of Alaska Courthouse, District
Attorneys' Office, and Public Defender Agency, 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, natural gas, solid
waste collection, telecommunications, and satellite and cable
providers.
36
CITY OF KENAI COMPREHENSIVE PLAN - YOUR CITY, YOUR PLAN 1 2012
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
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. 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. Existing and future business and
residential development will be supported and promoted with
adequate infrastructure when fiscally responsible. Well -
planned community facilities and services improve the quality
of community life.
Planning Commission Draft - Amended 4 -5 -12
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 %). 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 %), 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. (Note: Update with most
recent data prior to publishing).
4.7 Forecast of Economy, Population and
Housing Demand
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
37
CITY OF KENAI COMPREHENSIVE PLAN - YOUR CITY, YOUR PLAN
2012
- 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 that a significant discovery of oil and
gas reserves could improve the economic outlook of 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.
Increased interest in mining and exploration could also
stimulate the local economy.
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). 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.'?
For planning purposes, the estimate of the City of Kenai's
future population and net housing demand uses the 2009
17 In the 2003 Comprehensive Plan, the population of the City of Kenai was
estimated to grow by about 35% between 2000 and 2020.
Planning Commission Draft - Amended 4 -5 -12
estimated annual growth rate of 0.7% through the year 2035.
This growth rate could change with 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
6). If actual growth substantially exceeds or lags estimated
growth, then population -based decisions about City
development priorities can be adjusted accordingly.
9000
8500
8000
7500
7000
6500
6000
7100
1
Figure 6. Estimated Population
City of Kenai, 2010 . - 2035 8485
8188
. 7358
1
7624
7901
a
2010 2015 2020 2025 2030 2035
Source: U.S. Census Bureau
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CITY OF KENAI COMPREHENSIVE PLAN - YOUR CITY, YOUR PLAN 1 2012
Table 12: Estimated Population and Future Housing Needs
City of Kenai, 2010 - 203518
Type of Use
2010
(Actual)
2015
2020
2025
2030
2035
Change
2010 -
2035
Population
7100
7358
7624
7901'
8188
8485
232
Net
Increase
29
258
266
277
287
297
1385
Housing
Units
3166
3090
3202
3318
3439
3564
44
Net
Increase
-76
112
116
121
125
398
Table 13: Current and Future Demand for Commercial,
Industrial, Residential, and Mixed Use Land
Type of Use
2012 Acreage
2030 Estimated Acreage
In Use
Vacant
Additional
Needed
In Use
Vacant
Commercial
214
178
27
241
151
Industrial
232
209
29
262
179
Residential
1,769
2,740
223
1,992
2,518
Mixed Use
44
49
6
50
44
Note: The estimated future demand was calculated assuming an annual
growth rate of 0.7 %. The commercial category includes Central Commercial,
General Commercial, and Central Mixed Use zones. The industrial category
includes Light Industrial and Heavy Industrial. Mixed Use includes Limited
Commercial and Townsite Historic zones. These figures represent developable
land and exclude acreage that cannot be developed, such as wetlands.
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, 285 additional acres will be
needed to accommodate these future uses. This estimate does
not include other private uses or public uses. Table 13
provides a comparison of estimated demand for residential,
commercial, and industrial land uses to the existing zoning
status of vacant land.
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 - Amended 4 -5 -12 39
CITY OF KENAI COMPREHENSIVE PLAN - YOUR CITY, YOUR PLAN 1 2012
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
Planning Commission Draft — Amended 5 -4 -12
the
Cit
y's
tot
al acreage included parcels with private or public
development. About 14,607 acres were undeveloped (i.e.,
acreage of total parcels without development). 19 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
19 For purposes of determining development, parcels with improvements
valued at $10,000 or more were considered developed parcels.
40
CITY OF KENAI COMPREHENSIVE PLAN - YOUR CITY, YOUR PLAN 1 2012
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 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.
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 Commission Draft — Amended 4 -5 -12
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.
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CITY OF KENAI COMPREHENSIVE PLAN - YOUR CITY, YOUR PLAN 1 2012
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:
Planning Commission Draft — Amended 4 -5 -12
• 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.
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CITY OF KENAI COMPREHENSIVE PLAN - YOUR CITY, YOUR PLAN
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Table 14: Land Use Plan Classifications and Zoning Districts20
Suburban Residential Land Use Classification
Zoning Districts
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.
Suburban Residential
Suburban Residential
1 &2
Urban Residential
Rural Residential Land Use Classification
Zoning Districts
The Rural Residential district includes areas that, due to location or site 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.
Rural Residential
Rural Residential 1
Mixed Use Land Use Classification
Zoning Districts
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.
Limited Commercial
Central Mixed Use
Central Commercial
Historic Townsite
Commercial Land Use Classification
Zoning Districts
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.
Central Mixed Use
Central Commercial
General Commercial
Light Industrial
Industrial Land Use Classification
Zoning Districts
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.
Conservation
Heavy Industrial
Light Industrial
Institutional Land Use Classification
Zoning Districts
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.
All Zoning Districts
Parks, Recreation and Open Space Land Use Classification
Zoning Districts
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.
All Zoning Districts
20 Areas may include other zones not listed. The zoning listed is a general guide to land use classifications.
Planning Commission Draft — Amended 5 -4 -12
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CITY OF KENAI COMPREHENSIVE PLAN - YOUR CITY, YOUR PLAN l 2012
Table 15. Existing Zoning Districts
Zoning District
Acreage
Conservation
1,76821
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
Education
170
Split
1
Total
18,231
Source: City of Kenai
Developing residential neighborhoods where underused
facilities (roads, water and sewer, fire stations) are already in
L1 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.
place or nearby makes full use of existing infrastructure and
avoids the cost of new facilities. Similarly, commercial and
industrial uses require supporting infrastructure. 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
Planning Commission Draft — Amended 5 -4 -12 44
CITY OF KENAI COMPREHENSIVE PLAN - YOUR CITY, YOUR PLAN 1 2012
• 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: Alaska MapCo (Kenai Peninsula Borough GIS)
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
Planning Commission Draft - Amended 4 -5 -12
developed.22 Another 3,671 acres - are vacant, approximately
51% in private ownership, outside of wetlands and
floodplains, and may be suitable for development (Map 8).
Access may limit development in some areas.
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.
22 Developed acreage was calculated for entire parcels with development
valued at $10,000 or more.
45
CITY OF KENAI COMPREHENSIVE PLAN - YOUR CITY, YOUR PLAN 1 2012
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.
Planning Commission Draft - Amended 4 -5 -12
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 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.
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CITY OF KENAI COMPREHENSIVE PLAN - YOUR CITY, YOUR PLAN 1 2012
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 (Figure 6).
As the uses in the Townsite Historic District evolve, a review
Figure 6: Conceptual Design of Dena'ina Wellness Center
of the zoning requirements may be useful. New guidelines are
needed to encourage development while protecting the
historic qualities of the district.
Planning Commission Draft — Amended 4 -5 -12
5.3.5 Residential Neighborhoods
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.
Beaver Loop Road is a rural area with scenic vistas, natural
open space, and a low- density residential lifestyle with a short
47
CITY OF KENAI COMPREHENSIVE PLAN - YOUR CITY, YOUR PLAN 1 2012
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.
Planning Commission Draft — Amended 4 -5 -12
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 433 acres,
and another 720 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,
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CITY OF KENAI COMPREHENSIVE PLAN - YOUR CITY, YOUR PLAN 1 2012
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.
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,
Planning Commission Draft — Amended 4 -5 -12
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 1,042 acres owned by
49
CITY OF KENAI COMPREHENSIVE PLAN - YOUR CITY, YOUR PLAN 1 2012
the airport currently zoned as conservation 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 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
Planning Commission Draft — Amended 4 -5 -12
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.
50
CITY OF KENAI COMPREHENSIVE PLAN - YOUR CITY, YOUR PLAN 1 2012
Planning Commission Draft — Amended 5 -4 -12
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CITY OF KENAI COMPREHENSIVE PLAN - YOUR CITY, YOUR PLAN 1 2012
Chapter 6: Goals, Objectives, Strategies, and Plan
Implementation
Note: This chapter will be provided for review at a later date.
Planning Commission Draft — Amended 4 -5 -12 52
References
CITY OF KENAI COMPREHENSIVE PLAN - YOUR CITY, YOUR PLAN 1 2012
Adalgeirsdottir, G. 1997. Elevation and volume changes on the Harding Icefield, Southcentral Alaska. University of Alaska- Fairbanks. M.S.
Thesis, 128p.
Alaska Center for Climate Assessment and Policy. 2012. http : / /ine.uaf.edu /accap /index.htm Accessed 14 February 2012.
Alaska Department of Commerce, Community and Economic Development. 2012. Alaska climate change impact mitigation program.
http: // commerce. alaska. gov /dca /planning /accimp /ACCIMP.htm Accessed 14 February 2012
. 2011a. Business License Search. http: / /www. commerce. state. ak.us /occ /bussearch /BusMain.cfm Accessed 18 July 2011.
. 2011b. 2009. Alaska Economic Performance Report. Division of Economic Development. 44 pp.
Alaska Department of Labor and Workforce Development. 2010. Alaska economic trends. December 2010.
Alaska Department of Natural Resources. 2011. Cook Inlet natural gas production cost study. Alaska Division of Oil and Gas. 24 pp.
. 2009a. Cook Inlet areawide oil and gas lease sale: Final finding of the director. Division of Oil and Gas.
. 2009b. Alaska oil and gas report. Division of Oil and Gas.
. 2001. Kenai area plan. Division of Mining, Land & Water.
. 1998. Kenai River comprehensive management plan. Division of Parks & Outdoor Recreation. 122 pp.
Alaska Department of Transportation and Public Facilities. 2011. Annual traffic volume report central region: 2008, 2009, 2010.
http: / /www. dot. state.ak.us /stwdping/ mapping /trafficmaps /trafficdata reports cen /2010 ATVR FINAL All Posted.pdf Accessed
3 April 2012.
Planning Commission Draft — Amended 4 -5 -12 53
CITY OF KENAI COMPREHENSIVE PLAN - YOUR CITY, YOUR PLAN 1 2012
Alaska Seafood Marketing Institute. 2011. Suppliers directory. www.alaskaseafood.org /industry /suppliers /index.cfm Accessed 18 July
2011
Berg, E. 2010. Climate change on the Kenai Peninsula. Kachemak Bay Climate Change Conference. February 2010.
http: / /www.adfg.alaska.gov/ static / lands/ habitatresearch/ kbrr/ pdfs/ ClimateChangeConferenceFeb2010 .pdf Accessed 14
February 2012.
Bureau of Indian Affairs. 2012. http: / /www.bia.gov/ Accessed 13 February 2012.
. 2010. Indian entities recognized and eligible to receive services from the United States Bureau of Indian Affairs. Federal Register.
Vol. 75, No. 190, Friday, October 1, 2010.
CH2MHill. 2011. City of Kenai Water and Sewer Rate Study. Prepared for the City of Kenai. 26 pp.
City of Kenai. 2011. City of Kenai, Alaska parks & open space draft study. City of Kenai Parks & Recreation Department. 69 pp.
. 2010a. Capital Improvements Program Priorities. http: // weblink .ci.kenai.ak.us /WebLink8 /0 /doc /56209 /Page40.aspx Accessed 21
August 2011.
. 2009. Kenai Roadway condition survey. Unpublished spreadsheet.
. 2006. Kenai economic development strategy. 30 pp.
. 2005. Kenai municipal airport economic impacts. Kenai Municipal Airport. Brochure. 2 pp.
Czarnezki, J. and J. Yaeger. 2007. On the river: A Guide to Owning and Managing Waterfront Property on the Kenai Peninsula. Kenai River
Center.
Dorava, J. and G. Moore (1997). Effects of boatwakes on steambank erosion Kenai River, Alaska. U.S. Geological Survey. Water Resources
Investigations Report 97- 4105.84 pp.
Eubank, T. 2012. Personal communication 17, January 2012. City of Kenai Finance Department Director.
Planning Commission Draft — Amended 4 -5 -12 54
CITY OF KENAI COMPREHENSIVE PLAN - YOUR CITY, YOUR PLAN 1 2012
HDR Alaska. 2003. Kenai Peninsula Borough transportation plan. Prepared by HDR Alaska, Inc. in association with Kittelson & Associates.
Kenai Chamber of Commerce. 2012. http: // kenaichamber .org /aboutKenai /workHere.htm Accessed 14 February 2012.
Kenai Peninsula Borough. 2010. Kenai Peninsula Borough quarterly report of key economic indicators for fiscal quarter ending March 31,
2010. Published June 2010.
2009. Kenai Peninsula Borough situations and prospects Economic trends for year ending December 31, 2008.
http: / /www2.borough.kenai.ak.us /Econ/ 2008 /S &P2008 /2008 %208 &P %20pdf.pdf Accessed 5 April 2012.
. 2008a. Kenai Peninsula Borough Coastal Management Plan. 298 pp. 87 pp.
. 2008b. Kenai Peninsula Borough Resolution 2007 -069 A resolution committing to the development of a local climate change impact
plan. http: / /www2. borough. kenai.ak.us /AssemblyClerk /assembly /Resolutions /2007/R2007- 069.pdf Adopted by the Assembly
on January 8, 2008.
. 2003. Kenai Peninsula Borough transportation plan. Prepared by HDR Alaska, Inc.
in association with Kittelson & Associates.
. 1998. Kenai Peninsula Borough trail plan.
Kenai Peninsula Economic Development District. 2010. Kenai Peninsula comprehensive economic development strategy. 188 pp.
. 1997. Rural Alaska Tourism Infrastructure Needs Assessment. A joint project of the Kenai Peninsula. Borough Economic Development
District and the Alaska Department of Commerce and Economic Development Divisions of Trade and Development and Tourism.
Kenai River Professional Guide Association. 2011. http: / /www.krpga.org /guide.php. Website accessed 13 September 2011.
NOAA. 2012. Arctic report card: 2011. http: / /www. climate. gov / #understandingClimate /assessmentReports Accessed 14 February
2012.
Parson, E., Carter, L., Anderson, P., Wang, B. and G. Weller. 2009. Potential consequences of climate variability and change for Alaska. In
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Global Climate Change Impacts in the United States. U.S Global Change Research Program.,
R &M Consultants, Inc. 2008. Groundwater monitoring report: Kenai River bluff erosion. Prepared for U.S. Army Engineers. 10 pp.
Salomon, A., Huntington, H. and N. Tanape Sr. Imam cimiucia: Our challenging sea. Alaska Sea Grant College Program.
Scenarios Network for Alaska and Arctic Planning. 2012. http: / /www.snap.uaf.edu/ Accessed 14 February 2012
Smith, Orson and Gary Williams. 2010. On the coast: A guide promoting an understanding of coastal processes and good stewardship of
coastal property on the Kenai Peninsula. Kenai River Center. 72 pp.
State of Alaska. 2012. Climate change in Alaska. http: / /www.climatechange .alaska.gov /cc- ak.htm Accessed 14 February 2012.
U.S. Army Corps of Engineers. 2011. Kenai River Bluff Limited Economic, Cultural and Historic Property Evaluation — February 2011. Report
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. 2012b. http: / /alaska.fws.gov /climate /pdf /FactSheet Kenai NWR.pdf Accessed 14 February 2012
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Survey.
Whittaker, D. and B. Shelby. 2010. Kenai River recreation study: Major findings and implications. Prepared for the Alaska Department of
Natural Resources, Division of parks and Outdoor Recreation. 149 pp.
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CITY OF KENAI COMPREHENSIVE PLAN - YOUR CITY, YOUR PLAN l 2012
Imagine Kenai 2030
City of Kenai Comprehensive Plan Revision
Appendix A: Public Participation Process
Note: The final participation plan will be inserted later
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CITY OF KENAI COMPREHENSIVE PLAN - YOUR CITY, YOUR PLAN 1 2012
Imagine Kenai 2030
City of Kenai Comprehensive Plan Revision
Appendix B - Economic Indicators
Income: The estimated annual income for households in the City of Kenai in 2009 ($54,054) was about 18.8% lower than that for
Alaska, and the estimated per capita income ($27,597) was about 6.1% lower than that for Alaska.
The median household income was estimated to be $51,875 with 3,004 households. Of these households:
• 21.1% earned less than $25,000,
• 27.5% earned between $25,000 and $49,999,
• 29.2% earned between $50,000 and $999,999, and
• 22.0% earned above $100,000.
Per capital income in 2009 was estimated to be $27,597, an increase over 2000 ($20,789).
Families whose income fell below the poverty line in that past 12 months of the survey equaled 5.4 %, and 8.1% of all people earned
income below the poverty level
Sales: For the five -year period between 2005 and 2009, the City of Kenai's average annual total gross sales was $488.3 million with
a high of $607.7 million in 2007 (Kenai Peninsula Borough 2010). Sales in 2009 - $74.8 million - represent a 35.7% decrease from
2008.
Gross sales in 2009 by line of business in order of volume were: Sales (40.1 %), construction (13.7 %), wholesale (10.5 %), services
(6.2 %), manufacturing (5.5 %), utility (4.9 %), resource production (4.7%), property (4.5 %), transportation and warehousing
(3.9 %), professional (3.1 %), tourism (1.9 %), and government (1.0 %).
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CITY OF KENAI COMPREHENSIVE PLAN - YOUR CITY, YOUR PLAN 1 2012
In 1990, the City of Kenai had 20.6% of the Kenai Peninsula Borough's gross sales, in 2000 19.2% and an average of 17.5% for the
years 2004 -2009. However, the City's share of borough sales dropped to 14.5% in 2009.
Retail trade: The retail industry in the City of Kenai is relatively mature. Retail sales in 2000 totaled $136.3 million, about 48% of
total sales. In 2008, retail sales totaled $139.7 million, and about 23% of total sales. Annual retail sales growth has fluctuated
between 2000 and 2008 with an average annual increase of only 1.0 %. Per capita gross retail sales in the City of Kenai ($20,406) in
2007 were nearly 63% higher than the borough -wide per capita sales ($12,527), and about 50% higher than for Alaska ($13,635).
Retail Space: In 2000, the City of Kenai had 582,318 square feet of retail space which represented 27.1% of the retail space in the
borough and 12% of the number of retail buildings. In 2008, the retail space increased by 41% 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,
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. In 2009, the value of construction permits was $7.7
million, a 67% decrease from the previous year and the lowest value for the five -year period. Table 8 provides additional permit
information for selected years.
Permit Information for Selected Years
2000
2005
2009
Total Value of City of Kenai Construction
$17.3 million
$8.2 million
$7.7 million
Percent Value of all Permits issued in
Borough
33%
18.3%
15%
Total Number of Permits
93
90
83
Percent of all Permits Issued in Borough
32.0%
26.6%
29.0%
ource: Kenai Peninsula Borough 2000, 2005, 2010
Business Licenses: As of July 2011, there were 1,137 licensed businesses with an address in the City of Kenai (DCCED 2011).
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