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HomeMy WebLinkAbout2007-08-15 Council PacketMAIC 26 PACKETS COUNCIL PACKET ~ISTRIBUTION COUNCIL MEETIN6 DATE: 5'l~~l~'~ AGEN~A DISTRIBUTION ~ Sewer Trentment Plant ~ ~ Streets ~ ~ Sho Dock Buildinq Maintenance Animal Control ~ Wnter/Sewer ~ ~ Counter I ~ DELIVER Council and Student Representative Packets to Police Department Dispatch desk. The Clarion, KSRM, Mellish & Schmidt's Office will pick their pncket up in my office. The portion of the agenda published by the Clarion should be emailed ns soon as possible on packet day. The cnmern-rendy ngenda c:/myfiles/documents/minutes/agenda form for paper} is emailed to Denise at Peninsulo Clarion (nt emnil folder Work Session/Special Meetings, or Composition in Contacts or IbeIIC'~cacsalaska.net). Home Page documents (agenda, resolutions, ordinances for public hearing, nnd ordinnnces for introduction) nre usunlly emailed to me and I hold them in my HTML filz. Place intormation (meeting e-packet and agenda, resolutions nnd ordinances for public henring, etc. on the city's webpnge as soon ns possible before leaving the office for the weekend. ~ 0 ~ ~ ~ ~ ~ ~ ~ 0 c~ Z F W W ~ e~ z ~ 0 U > ~ .~ ~~~~~ ~ W~ } W~~~ O ~oa~u`~,~ a~~~~~ > rnl ~I I ° Z W W W Z p p ~ ~ ~ ~}~OQpcnJ =md~v~iw~~ > ~ . '~ ~~ ~ zWW~ ~°i ~o =ma~ > ~ ~ C~ w w Z ~ W Z p ~ W ~ ~ - [~>-~oQp~ =ma~c~nw~ > ~ ~ ~W ZWWwZO o ~JF-~~~'f/)_1 ~r~oQO~n~ QOOQ~~00 =m~~cnw~~ > ~ ~ a m ~zWWwzQ o ~ ~ - ~ ~ ~ O Q ~ (n J ` Q O O ~~~ O o ~=ma~cnw~~ AUGUST 15, 200? REGULAR COUNCIL MEETING REQUESTED AMENDMENTS TO AGENDA ADD TO: ITEM B-1, ICMA CityLinks Program Update -- Thank you letter from ICMA International. ADD TO: Item I-6, Planning & Zoning Commission Report -- Justin Broyles application/consideration for appointment to Commission. ADD AS: Information Ytem No. 4-- Lois Massie thank you letter. ADD AS: Information Item No. 5- Kenai Peninsula Soccer Club thank you letter. CONSENT AGENDA No Changes. Notes: ' ~ Leaders at tfte Cor~ af B~tter Cornmunities August 14, 2007 Ciry of Keuai RE: CityLinks Program Dear Mayor and Council: As you know, the CityLinks Alaska-Russian Far East Program in which you have been involved is coming to a close. On behalf of ICMA, I would like to sincerely thank you for your dedicafion and support to the program over Ule past Ywo years. We believe we have made a big difference in our partner cities in Russia, hopefully sowing some seeds that will really grow over the years. Our success is a testament to you and yom• staff who bave given their ~ime fo woxk on this program. We have very much eiljoyed working with Kenai and your staff and local business leaders and have appreciated your patience and flexibiliry througbout the program. It is our hope that we wIll be able to woxk together again in the very near future. You n2ay know that ICMA recently bid on a new program in the Russian Far East thaT we had hoped would be a follow-on to our CityLinks Prograni. Unfortunately, we did not win the award. However, we will look for oYher opportunities in the Russian Far L;asC to build upon what we have started there. Should you have any questions abouf The program or if we at ICMA can do anything for you, please don't hesitate to ask. Again, it has been a pieasure working with you. Sincerely, y~~~~~__---~ Kelly Cullum Program Manager ICMA International Ca Jason Carroll Linda Swarner Dee Gaddis Rick Baldwin 777 North Capitol Street, NE ~ Suite 500 ~ Washington, DC 20002-4201 ~ Z02 284 4262 ~ 202 962 3500 faz ~ icma.org AGENDA KENA% CITY COUNC%L - REGULAR MEETING AUGUST Y 5, 2007 7:00 P.M. KENAY CYTY COUNCIL CHAMBERS http: / /www.ci.kenai.ak.us %TEM A: CALL TO ORDER 1. Pledge of Allegiance 2. Roll Ca11 3. Agenda Approval 4. ConsentAgenda *All items listed with an asterisk (*) are considered to be routine and non- controversial by the council and will be approved by one motion. There will be no separate discussion of these items unless a council member so requests, in which case the item will be removed from the consent agenda and considered in its normal sequence on the agenda as part of the General Orders. ITEM B: SCHEDULEIT PFI~3LFC CONfRRENTS (10 minutes) l. Dee Gaddis, Economic Development District - ICMA CityLinks Program Update ....................................................... ITEM C: UNSCHEDULED PUBLIC COMMENTS (3 minutes) ETEM D: REPORTS OF KPB ASSEMBLY LEGISL/tTOR5 AND COUNCILS ITEM E: PUBLIC HEARINGS (Testimony limited to 3 minutes per speaker.) l. Ordinance No. 2230-2007 -- Amending KMC 21.10.090(d~(1) and (2) by Establishing Different Requirements for Determining the Length of a Lease Extension and Extending the M~imum Term of Lease Including Any Extension from 35 to 55 Years . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (Clerk's Note: Ordinance No. 2230-2007 was approved for reconsideration at the 6/6/0~ council meeting; at 6/6/07 meeting, action postponed to 7/18/07; at 7/ 18/ 07, action postponed to 8/ 15/ 07. The motion to adopt is active.) 2. Ordinanee No. 2248-2007 -- Increasing Estimated Revenues and Appropriations by $27,532 in the Senior Fund for Additional Grants and Donations ..................................................... 3. Ordinanee No. 2249-2007 -- Amending Ordinanee Number 2194-2006 by Amending the Purchase Agreement Authorizing the Sale of Appro~mately 14.784 Acres of land Described as Lot A, Baron Park Subdivision, 2006 Replat to Lowe's Home Improvement Warehouse, Ina (Lowe's) by Adding a"Put Right" for One Year After the Close of the Sale VJhereby at Lowe's Option the City of Kenai Would Repurchase the Property for the Purchase Price Paid by Lowe's Minus Any Real Estate Commission Paid by the City of Kenai . . . . . . . . . . . . . . 1 28 29 a. Substitute Ordinance No. 2249-2007 -- Amending Ordinance Number 2194-2006 by Amending the Purchase Agreernent Authorizing the Sale of Appro~mately 14.784 Acres of Land Described as Lot A, Baron Park Subdivision, 2006 Replat to Lowe's Home Improvement Warehouse, Inc. (Lowe's) by Adding a"Put Right" for One Year After the Close of the Sale Whereby at Lowe's Option, the City of Kenai Would Repurchase the Property for the Purchase Price by Lowe's Minus Any Real Estate Commission Paid by the City of Kenai. ....... 4. *New Liquor License -- Richard D. Mullowney, Jr. d/b/a, Alaska Chinook Lodge, Lodge-Seasonal/License #4726 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ITEM F: MINUTES 64 86 1. *Regular Meeting of August 1, 2007 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 88 _ i'" 2. *August 8, 2007 City Council Work Session Notes . . . . . . . . . . . . . . . . . . . . . . 105 ITEM G: UNFINISHED SUSINESS ITEM fI: NEW BUSINESS 1. Bills to be Ratified . . . . . . . . . . . . . . . . . : . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 106 2. Approval of Purchase Orders Exceeding $15,000 . . . . . . . . . . . . . . . . . . . . . . . - 3. ?approval -- October 2, 2007/Precinct Election Board Members . . . . . . . . . . . . 107 4. Discussion -- Report on Work Session/Council Meeting Broadcasting ....... 108 ITEM Y: COMMISSION/COMMITTEE REPORTS l. Council on Aging 2. AirportCommission ................................. ............ 129 3. Harbor Commission . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 132 4. Library Commission . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 136 5. Parks & Recreation Commission . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . -- 6. Planning 8s Zoning Commission . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 140 7. Miscellaneous Commissions and Committees a. Beaufification Committee . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . -- ... b. Alaska Municipal League Report . . . . . . . . . . . . . . . . . . . . . . -- ........... c. Joint Kenai River Working Group . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . -- d. Mini-Grant Steering Committee . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . -- YTEM J: REPORT OF THE MAYOR ITEM K: L City Manager .................................................. 147 2. City Attorney .................................................. __ 3. City Clerk ..................................................... -- YTEM L: 1. Citizens (five minuees) 2. Council ITEM M: PENDING LEGISLATION (Items listed below are legislation which will be addressed at a later date as noted and are not action items for this meeting.) Ordinance No. 2202-2006 -- Amending KMC 11.05.090 to Limit the Use of the City of Kenai Boat Launch, Located at the Municipal Harbor, to Vessels and Boats Powered by Four-Cycle or Direct Injection 'I`wo-Cycle Engines. (1/l7/07, Tabled, no time certain.) Ordinance No. 2240-2007 - Amending KMC 21.10.070 to Give the Airport Commission More Authority Over Leasing Decisions Within the Airport Reserve. (Tabled, no time certain at 7/ 18/07 council meeting.) -- Annual Evaluation of City Clerk. ITEM N: ADJOURNMENT INFORMATION ITEMS AUGUST 15, 2007 Page No. 1. 8/ 15/07 Purchase Orders Between $2,500 and $15,000 for Council Review. .. 159 2. 7/2007 Kenai Municipal Airport Monthly Enplanement Report and Float Plane Basin Activity Report . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 160 3. 8/2/07 K. Howard memorandum regarding 2007 Foreclosure Sale. ......... 162 Suggested by; City Manager CITY C3F KEIdAI NQ. 2230-20(37 AN ORDINANCE OF THE COUNCIL OF THE CITY OF KENAI, ALASKA, AMENDING FiMC 21:10.090(d}(1) and (2) BY ESTABLISHING DIFFERENT REQUIREMENTS FOR DETERMINING THE LENGTH OF A LEASE EXTENSION AND EXTENDING THE MAXIMUM TERM OF LEASE INCLUDING ANY EXTENSIpN FROM 3~ TO 55 YEARS. ttJHEREAS KMC 2L 10.090(d)(1) provides for a maz~imum lease term of 35 years, and, WHEREAS, KMC 21.10.090(d)(2) provides that lease extansions ma,y be granted for one year for each $25,000 of additional investments in permanent improvements; and, WHEREAS, KMC 21.I0.090(d)(2) also provides that the ma~cimum teim for a lease including any~ lease extension, shall be 35 years; and, WHEREAS, it is in the best interest of the City of Kenai to provide for lease criteria that encourage new permanent improvements on the airport; and, WHEREAS, increasing the possible maximum term of a lease, including any extension, from 35 to 55 years will encourage investment in permanent improvements at the airport. NOW, THEREFORE, BE IT ORDAINED BY THE COUI~rCIL OF TFiE CIT1' OF KENAI, ALASKA, that kMC 21.10.090(d)[1} and (2) are amended as follows: 21.10.090 Leagth of lease term. (a) Unless the City determines a shorter lease term is in the best interest of the City, the length of term for a lease granted for land w9thin the Airport Reserve will be based an the amount of ineestment the applicant proposes to make in the construction of new permanent improvemenis on the prernises during the first twenty- four (24} months following the beginning date of the lease or lease e~tension. (b) tii~Iess the City deterrnines a shorter lease term is in the best interest of the City, the length of terrn for a lease renewal shall be based on a Czty-approved appraisal of the calue of the permanent improvements on the property as set forth in the table in subsection (d)(1) of this section. The appraisal shall be performed by an independent appraiser certified under Alaska Statute 8.87 with experience appraising airport improvernents. The appraisal shall be paid for by the lessee. (c} If the applicant proposes to make less than one hundred thousand dollars (~100,000.00) in new permanent unprovaments on the premises, the m~imurn term of a new lease shail be five (5) years. (d) If the applicant proposes to invest one hundred thousand doIlars ($ lOd,000.00) or more in new permanent improvements on the premises: Ordinance No. 2230-2007 Page 2 of 4 (1) The mahimum terrn of a new Iease or a renewal of an expiring Iease shall be determined according to the following table: ~AP'PLICANT'S INVESTNLENT/ MAXIMUM v~.v~ fzx ~a.s. nor,LARS{ ~rE~xmc oF IS AT LEAST YEARS LESS THA.N $100,00d 5 $100,000-$199,OOd ]. S $2p0,000-$299,000 2d $300,000-$399,000 25 $400,000-$500,000 3p MORE THAN $~O~,p00 35] A~t»licanYs Maximuxn %nvestment/ Term Value fin U.S. Dollars} %nYears Less than $ 100 000 5 $ 100.000 - $ 299.000 10 ~ 200A60 - $ 299.999 15 $ 300.000 - $ 399.999 20 $ 400,004 - $ 499,000 25 ~ 500,000 - $ 599,000 30 $ 600,000 - $ 699_000 35 ~ 700 000 - ~799 000 4Q $ 800,000 - $ 899.000 45 $ 900.000 - ~ 999.Od0 50 More than $1.OOQ,000 55 [(2) THE MAXIMUM TERM EXTENSION FOR AN EXISTING LEASE SHALL BE ONE (1) YEAR FOR EACH TWENTY-FIVE THOL'SAND ($25,000.00) OF ADDITIdNAL PROVIDED THAT THE TdTAL OF THE REMAINING LEASE TERM AND THE EXTENSIOiV SHAI.L NOT EXCEED THIRTY-FIVE (35~ YEARS.j ~2j The maximum terxn for a lease (initial laase plus e~;tension(s1} shall be Fiftv-five vears. The lenpTh of the extension(s) shall be datermuzed accard'uae to the followin~ table: ApnlicanYs TV~assimvm Investment/ Extension Value (in U.S. Doltars~ Term of is at Least Years ~ 75 000 - $100 000 5 2 Ordinance No. 2230-2007 Page 3 of 4 $ lOQ.000 - $199,000 10 ~200,000 - $299,999 15 ~w 300.Q00 - $399.999 20 $ 400,000 - ~w499,000 25 $ SOb,000 - $599,000 30 $ 600,000 - $699,~00 35 $ 700,Od0 - $799,OOU 40 $ 8Ei0,000 - $899,000 4S $ 900.000 - $999.000 Sd (3) A bona fide third party purckaser of airport improvements may get an e~tension for an existing lease acquired with improvements based on a City-approved appraisal of the improvements purchased. Unless the City deterrnines a shorter lease term is in the best interest of the City, the ex~tension shall be based on the table in subsection {d)(I~ of this section provided no extension sha11 extend a lease term past thirty-five (35) years. The appraisal shall be performed by an independent appraiser ceriifed under f~laska Statuie 8.87 w-ith experience appraising airport improvements. The appraisal shall be paid for by the lessee. (e) In the lease granted to the applicant, the City Manager will include a provision requiring tke applicant to substantially complete the proposed permanent improvements within a reasonable periad of time, considering the cost and nature of the impravements. Provided however, that the time allowed shall not ordinarily exceed twenty-faur (24) months after the effective date of the lease. (f) In the lease extension granted to the applicant, the City Manager will include a provision requiring the applicant to complete the additional proposed perxnanent improvements within a reasonable tune period, considering the cost and nature of the improvements provided that the dme period shall not ordinarily exceed twenty-four (24) months after the e~ecfive date of the lease extension. (gj The City Manager will include a provision in a lease or lease extension requiring the lessee to provide a performance bond, deposit, personai guarantee, or other security if the Manager deteriniiies security is necessary or prudent to ensure the applicant's completion of the permanent improvements within the time period set under sttbsections (ej or (fl of this section. The City Manager will determine the form and amaunt of the security according to tl7e best interest of the City, considering the nature and scape of the proposed isnprovernents and the fmancial responsibiiity of the applicant. (h) The appIicant shall, cc~thin thisty (30} days afrer complefion of the permanent improvements, submit to the City Manager written documentafion that the improvemenES have been completed as required under subseclion (e) or (fj of this section. (i) If the applicant shows good cause to the City Manager, and the Manager determines the action is not inconsistent with the City's best interest, the Manager rnay granY an extension that is sufficient to allow for the completion of the permanent improvements or for submission of documentation that the permanent improc~ements have been completed under this section. No extension or combination of extensions e anted will exceed twelve (12) months. 3 Ordinance No. 2230-2007 Page 4 af 4 (j) If, within the time required under subsectian (e) or (f} of this section, including any extensian granted under subsection (i} of tlus section, the applicant fails to complete the requirefl permanent improvements, the City Manager will execute the forfeiture of the performance bond, deposit, personal guarantee, or other security posted by the applicani under subsection (g) of this section to the extent necessasy to reimburse the City for all casts and damages, including administrative and legal costs, arising from the applicant's failure to coxnplete the required improvements, and initiate cancellation of Yhe iease or reduce the term of tYte lease to a period consistent with the portion of the improvements snbstaritially completed in a timely manner according to the best interests of the City. (k) The City Manager shall review rates, charges and the investment/value in the chapter every five (5) years to see if adjustrnents shouId be made. (1) When used in this section, the following terms shall have the meanings given: {1) "Expiring lease" means a lease with less tkan one (lj year of term remaining; (2} "E~sting lease" means a lease with at least one (1) year of eerm remaining; (3) "Permanent improverneni° means a nxed addiiion or change to land that is not temporary or portable; (ij "Permanent improvemenY' includes; (A) A building, building additron, retaining wall, storage tanx, earthwork, fitl material, gravel, and pavemexxt, and (Bj Remediation of contaminatian for which the applicant is not responsible; (u) "Permanent improvement" excludes items of ordinary maintenance, such as glass replacement, paintin~, roof repairs, door repairs, plumbing repairs, Iloor covering replacement, or pavemeni patehii~g. PASSED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, this 1 ~th day of August, 2007. ATTEST: Carol L. FYeas, City Clerk PAT POR'I`ER, MAYOR Introduced: May 2, 2007 Adopted: May 16, ~007 Reconsidered: June 6, 2007 Postponed to: July 18, 2007 Postponed to: August 15, 2007 Adopted: August 15, 2007 Effective: Septesnber 1S, 2007 4 ,l(~'l(a~e w~t,~ a Past, Gi~ u~it~r a~utc~re„ 210 Fidalgo Avenue, Kenai, Alaska 99611-7794 Telephane: (9Q7) 283-7535 ( Fax: (9d7) 283-3Q14 www.ci.kenai.ak.us 1 YlE~~1~~1~~ dJ lYl TO: /Kenai Aisport Cornmission FRQM: Cb2-d Cazy R. Graves, City Att~rney DATE: July 2, 2407 '+: Lease Terms under the E~sting Airport Code Counciior Molloy fhought it wouid be useful to the Airport Commission if I surnrnarized I~MG 2t.10.080-090 which covers lease terms within the Airpon Reserve. This memorandum outlines the existing code nrovisions, not the proposed amendments. :An appIicaztt's lease term is based on the doliaz value of improvements to the property according to the scheduled outliued in KMC 21.10.090(d),(1), unless Yhe City determines a shorter lease ternt is in the best interest of the City. ~ Currentiy, the maximum Iease term is for 35 years.Z investment of mare than $>00,000 i~ improvemenes wouId ordinarily get tlae applicant a 35 year lease.3 The value of fhe irnprovemants must be confirmed by an indepei~dant appraise: paid for by the l,essee.4 The City may require the lessee to provide a performanee bond, deposit, persona( guarantee or other security if the City Manager determnies such securiry is necessary to ensure ehe improve.ments are made.s If the lessee does nat nialce the. ifnprovemants, or invests less than promised, the CiLy's oprions are to execute the forf iYure of the security provided (if applicabie) and either cancel the lease or reduce che term 2o correspond to the appropriate Iength.~ Let's say and appkicant gets a 3~ year lease based on his promise ta make $b00,000 in improvements, but the lessee only makes $250,000 in improvements. The City eQUid execnYe on any security guaranfee provided and reduce the term of lease to 20 yeazs or seek cancellation the lease entirely. ' KNIC 2 L I O.Q40(a). Z KMC 2:.10.090(d)( I ), ' Ibid. " KIv1C 21:10.090{b). ' KMC 21. t 0990(g). 6 KMC 2 t.7 0.090(j ). 5 Leased Iands must be urilized in a manner substantiatiy in coinpliance with the airport master plan and the City's comprehensive plan.7 Leases not in substantia? compliance with the aizport rnastar plan or Yhe comprehensive pian are subject to cancellatiarz.8 Lessees ordinarily have 24 months to com~lete the improvements.9 An exiension of that deadiine can be granzed, but no e~tension ar cambination of extensions can go beyond 12 montlxs so the maximum time period for completion is 36 months.1° A lease extension cazi be granted based on the valu.e of additional im~rovements (one yeaz for every $25,040 of additional improvements).t~ Howaver, any extension cannot extend past 35 years when combined with The remainder of the lease term.'Z If a lessee had 25 yeazs lef? on hislher lease and was added 5500,000 in improvexnents, helshe could only get an extension of ten years on the lease term for the $SQ0,000 worth of improvemants. A bona fide third party purchaser of airport improvemeiits may eet a lease extension based on the appraised value of the improvements unless the City determines a sho7~ter term is in the best interest of the City.13 The extansion and remaining term cannot exceed 35 years.~4 If a lessee had ten years 1eft on hislher lease and sald the improvements for $SOQ,000, the purchaser cauId get an extension far a total Iease tarm of 35 years, unlass flie City detennined a shorter extension was in its best interest. An eaisting lessee may also appl~y for a lease renewal or extension under largelc the same process as the initial appl'acation. ~ Any sueh xequest may be denied if it doas not meet the criteria set forCh in the code or is noY in the best interest of the Cicy.lb Also, a lessee rnay negotiate for a contractual right of renawal not to exceed 20 pears. linder that section a Iessee could g~t a lease term up to 55 yeazs. i~ The CQixncil inust authonze any contractuai zenewal right by resolution with any terms and conditians it deems appropriate. ~s Please fee free to let me know if you haue any further auestions or would Iike any more information. ' KMC 21.10.120. e Ibid. 9 KMC 21. t 0.090(e). '° F:MC ? 1.10.490{i}. t~ F6id. t2 Ibid. " KIv1C 27.10.f190{d)(3), 14 Ibid. ~s KMC 21. i U.086. 16 IiMC 21. f 0.070. " KMC 2110.080(2) ~fi Ibid. 6 .... . ~~~~. 4_~- - ~- - I Eheci~of ~ KENAv SKA „V ~lla~e wi~l~ R P~~t, Gi~ wi~~t a Future" 210 Fidaigo Avenue, Kenei, Alaska 99611-7794 M~,~, Telephone: 907-283-7535 ( FAX: 907-283-3014 ~~(~~~ 7992 E~_'1 • TO: Airport Commission fp~~ FRONI: RickKach ~~~nti DATE: July 5, 2007 SUBJECT: ~ease Term Wi#hin the Airport Reserve The purpose of this conespondence is to dispuss the above referenced subj ect. Through the course of the last several months as adrninistration has attempted to amend flie code to provide for a 55 year leasing schedule I have heard comments from members of the Airport Carnrnission and City Council in support of t6e existing 35 year Ieasing program. T haue attempted to accurately re-state those comments and provide administration's responses below: A 35-year tease will protect the Airport/City from someone securing a lease, not developing the property, and holding onto the properiy far spaculation purposes. KMC 21.20.090(e) states "In the lease granted to the applicant, the City Manager wilt incIude a provision requiring the applicant ta substantially comptete the proposed permaneat improvements within a reasonabte period of time, considering the cost and nature of the improvements. Provided however, that the time ailowed shalI nat ordinariiv exceed 24 months aftee the effecfive date of the lease. The Airgort/City does not want leases granted for land specudation, regardless of whether it is for a term of 3S years or 55 years. HIVIC 21.10.090{e) already provides tha approgriate protection. 5TATEMEl!'T/CQNCERN A 35-year lease will protect the AirportlCity from someone securing a lease and not developing what was agzeed to in the lease agreement. KMC 21.10.12a states, "Lease utllizatSon. Leased lands shall be atitized far purposes within the scope of the applicatian, the terms of the lease and in conformity with the ordinances of the CiYy, and in substantial conformity with the Compa~ehensrve Plan and Airport Master Plan. Utilization nr developmeat for other than the allowed uses shaQ constitute a violation of the lease and subject Y]ie lease ta cancellation at any time. Failure to sabstant'ratly compiete the development pian for the land shall constitute grauuds tar cancetlation." The ATRPORTJCITY does not want leases ntitized for other than the ° purposes agreed upou in the tease regardtess of wheCi~er it is for a teecrc of 35 years or 55 years. KMC 21.10.I20 already provides the appeopriate protection. 3TATEMENT(CONCERN A 35-year lease will proYecE the AirportlCity ~om someone securing a lease and developing something of less value than what was agreed to in ihe lease agreement. K1VIC 21.1Q.120 states, "Lease utilization. Leased lands skall be afilized for purposes within Ehe seape of the application, the terms af the lease and iQ conformify with the ordiaances of the Cit}~, and in substantial conformity with the Comprehensive Plan and Airpart Master Plan. C3tilization or development for other than the allowed uses shall constitute a viotation of the tease and subject the tease to cancetlafion at any time. Failure to snbstantialiy complete the development pian for the land shall constitute grounds for canceitation." The AIRPORT/CITY does not want leases utilized for a deveiopment of less va(ue than what agreed upon in the lease regardiess af whether if is for a term of 35 years or 55 years. KMC 2L1Q.120 already provides the appropriate protection. The City could act to cancet the tease, or based vn the specific conditions negotiatelimpose a lease of a decreased term. g STATEMENT/CtPNCEKN The airport industry norm is a 25 to 35 year lease. Airport ~ ' Max.F~siCial Lease Term Tenaut O tion(s ~ i Total Term ' Anchora e 55 0 5~ Fairbaa~ks 55 0 55 Juneau* 35 0 Determined hy Baard Nonze 55 0 55 $arrow 55' , 0 55 Kotzabue 55 0 55 ~ Sitka 55 0 55 j Ketchikan 55 0 ~ 55 ~ Kodiak ! 55 0 55 Menill ~ Fzeld* 55 0 ' SS ' ' Pendleton* • 20 ~ 0 : Deternuned by Council PulIman 40 ~ ~0~ 46 Walla Wa11aM Negotiated ' Vdenafchee'~ 5 25 30 ' Yakuna* 30 20 50 Palmer* 20 i 20 ( 40 ~ SoFdotna 5 25 NeQoYiafed I Bend 20 ~ 30 50 Bethel 55 I 0 55 billin ham 55 0 55 Birchwood 55 0 55 ' Wasilla* Determined by Council '' i 150+ Alaskan j Airporfs 55 0 I 55 '~~ The indnstry norm is not 25 to 35 years based on my researc6. Cartainly not in the State of Alaska, and not in Alaskan commanities with simitar populations providing similar services. I have spent several hours researching this issae on. the in#ernet and the majarity of airports are in the 45-55 year range, or the term is negotiabte based on the requirements p-aced on the leaseha[der in ordar ta secare finaucing. 9 S'TATENtENT/CONCER'V A 35 year lease wiil pratect the Airport/City frorn someone securing a lease to ba used for somettung other than "avia6on" putposes. KMC 21.10.120 states "Lease utelizatiou. Leased laads shaIl be utilized for parposes within the scope of the application, the terms of the lease and in conformity weth the ord'ruances of the City, and in sabstantial conformit~~ w~ith the Comprehensive Plan and Airport Master Plan. UtiIization or development for other than the allowed uses shall consCitute a viofation of Yhe Iease and subjeet the lease to cancel[ation at any tirne. Failure to substantialEy complefe the development plan for the land shall constitute grounds for caacelFation:' The AIRPOR'i'/CITY does not want leases utilized for a development that is not for an "aviation" purpose regardless of whether it is for a term of 3_5 years or SS qears. KMC 21.1~.120 already provides tlie appropriate protection. The City is prohihited from entering into a long term lease for other than "aviation" nurdrases. A short-t~rm te~ses ~r sne~i~l use p~rnait for "nos-aviat'san" ~ar~esPe could be granted as long as tkere is not a competing aviation use. STAT~MENT/CQNCERN A 3~-year lease period is more than adequate ta support amortization and financing of lessee-constructed improvements. The City Counctl and Airport Commission have heard testimony from professionais iu the banking/t"mance fietds and this statement is simpty nat accurate. STATEMENT/CONCERIV For a 55-year lease period a Ieaseholder shauld provide additional assurances to the Airpart/City for their planned development. I 6ave given this more than a Fittle thought. The appIicat'ron process is fairly thorough, and the amount of information required to be snbmitted can be very detailed, depending on fhe nature of the proposed development. I do recognfrze the risk/benefit of a tease of a SS-year term. Tc~ provide assurance to the City Che development will be constrneted on-sehedQle in eomplianee wffh the fierms of the tease, I suggest requiring a performance bond for the full value of the proposed developrnent for any tease exceeding a 35-year term. 10 STATEMENTtCONCERN By allowing an applicant to request and negotiate an option £or a 20-year extension we do not require a 55-year leasing program. While I agree allow'rng a process for a 2U-year iessee optian does provide some degree of assistance in addressing the issue, it makes it problematic as every applicant w'ril request an option to extend tkeir lease. Adopting a 55 year Leasing schedule based ou develapment provides spec~c performance crieeria identifying lease term. STATERHERITtCONCERN What happens if the city manager doesn't enforce the terms of the lease? The city mauager not enforcing the terms of a tease really isn't germane to this issue, but I did hear t3tas comment in the eontext of the 35/SS year lea~ing pragram discussion. Were this ta happen, the Airport Commission could being it to the attention of the Council and the Council could direct the manager to enforce the terms of the iease. Attached pleasa find the information submitted to the Conncil by the administration in support of a 55-year leasing program for properties within the Kanai Municipal Airport Reserve Boundazy. It is my opinion that a 35-year leasing program wiil sienifieantIy t~inder development at the Kenai Municipal Airport. Even with a past 55 year leasing program the Kenai Vtunicipal Airport has not been successful in aitracting anchor tenants for aviatzon leases. Time and again I have heard members of Yhe airport commission say "wa have Yo look 50 years ii~ the future and ensure we have available land". F agree, bnt really, what would be the problem with having to condemn a lease 35 years from now to construct new infrastructure as a result of the demand far expanded/new/modified lease lots. The conflicts that could occur in the future can only be a by-product of a successful and in- demazid airport. Isn't that what we all want? Zn the case of airport lease properties there has to be a balanee between protection of the asset and availability as a revenue-generating vehicle. We haue strengthened suhstantially our lease requirements relating to developmeni and development scheduIe mitestones. Requiring perfom~auce bonds, as adminisu•ation has suggested, for ali leases in excess of 35 yeazs strengthens these protections even further. Thank you for your attention to this important issne, and I encourage you to recommend the approval of a 55-year leasing program to the City Counoil. 11 „V°~la~e wit~i a,~~xst; Gity wit~r a Fr~tur~e>~ ~~~~, 210 Fidal go Avenue, Kenai, Alaska 99611-77 94 ,~~ _,_ ~_-~ Teiephone: 907-283-7535 ( FAX: 907-283-3414 ~~~~f ~ _' ~ :ssz ~ E~ie city o f KENR~ SKA ~~~ ! • TO: City Council ~ FRQM: Rick Koch DATE: May 31, 2047 SUBJECT: Recansideration Regarding Airport Resenre ~and Lease Term Tlre purpose of this correspondence is to discuss the above raferenced subject. Administratiou recomrnends that the term of leases, meeting required condirions, he for a maximum tarm of 55 years. Attached you will find specific information for each of the following: Ted Stevens International Airoort Term of Lease: Maacimum of SSyears Fairbanks Intemational Aimort Term af Lease: Maxnnwn of 55 years Juneau Mwiicipal Aimort Term of Lease: 35 Years unless otherwise (Ionger tenn) approved by the airport hoard. State of Alaska Airoorts (Over I80 aixports including Noma Barrow Kotzebue Kodiak 5itka, Ketchikan. etc.) Term of Lease: i~faxunusn of 55 years. Includes interesting terms regarfling fhe sate of improvements. Soldotna Air~ort TeiYn of Lease: Maximum of 30 years and renewat may be made thereafter oxi a time basis agreeable to bath city and lessee. 12 W asiila Airoort Term of Lease: In accord with the policy of the Federal Aviation Administration Bend Ore on Airoort Term of Lease: 20 Years witk Tenants oprion to renaw for threa(3) terms of ten yeazs each. I looked at a number of airports outside and generally Yheir leases were for 50-55 years, or built in tena~~t options provided for that tenn. I think it just makes sense to allow for a 55 year tetn for a tenant to more fully amortize significant investments. I'rn sure tilere are better axamples, but please take into account the following when considering a 35 versixs 55 year lease term: L Yon invest $ 2,0OO,OQO in an improvement on airport property. 2. You receive 30 year i'inancing for your improvements at 8% interest. 3. Over the term of the 30 year loan yon will have repaid $ 5,248,00. 4. In the case af a 35 year lease term, onlv sixty months (5 years) after you have made your last loart payment yan must relinquish your lease and waik away from the improvements you have constructed wifh no compensatiou for any residuai value. ' S. In the case of a 55 year lease you have 25 years ta conduct business after making your final ioan payrzi~nt, by which to fuliy amortize the invesUnent in the improvements. In addition to tbe above, the re-sale vaIue of a lease wifh siguficant improvements is significantly diminished by t11e short tefxn of the lease with a 35 year lease term. Anain, aflministration recon~mends the previous council action establishing a 55 year lease period ba re-confirmed. Tt is also admvzistraCion's inten2 to review the SCate of Alaska's regulation as it relates to the lessor receiving compensation for improvements at Che end of the lease period. This appears to be a. fair process that would promote continual investment in leaseholder properties. Thank you for your attention in this matter. attachments 13 i~d ~`~tF.~ s~ m+ t r~r~w~ FR"cflUEN7LY ASKED QUESTIONS Q. What kinds of asfivitees can sirpnR land be used for? A Generally, airport land should only be used for an activity that must be on airport property due io its use and proximity to aviation facilitles. The Alaska Administrative Code, TiJe 17, Chapter 42, Section 890, Definitions, tlescribes laad uses and privifeges as follows: 1. "Aviation Use" means any 6usiness, service, or othe; tunction that directly involves, 4r is necessary (or, the normal operation aS aircraft fhat use an airport. Aviation use includes the following: aircrait toading, unioading, tiedoxm, parking, srorage, sates, sarvices, rentat, maintenance, or repair, sale or sinrege of aviafion fuel and aviafion petrole~m products; pilot training; air chader or air taxi serv;ce; airport terminal buiiding; air carriar operatinns; airoraft ground handling; aircraft parts sales; and air traffic contmi fower, air navigetion aid, and aviation westher instramentaGon. 2. "Auxiliary Use" mans any business, service, or other function that is neither an aviation use nor a nonaviation use and is located and cartied out on an a'vport for the convenience af the air traveling public, aviation businesses on the airpod, or the empioyees necessary ta the maintenance and operation of an airport. Auxiiiary use includes the foliowing: air fteight forwarding; ground transpodetion services not operated by the department, sueh as a tazicab senrice, an airport limousine or shuttla sarvioe, a rental car agancy, or a vahicle parking business; in-flight cetering; hofel accommodatifln; restaurant service; in-Yerminal wnoesaiona. 3. "Nonaviation use" means any husiness, service, or iunction that is (i) not an aviation or auxiliary use; (ii) is not directly or indirec±ly related to avie5on or to the air traveling public; (iii) does not offer a product or service that is specially related to aircrafl operations or fo air transpodalion; or (iv) is Iocated or operated to denve revenue primarily from members of fhe pablic not using air transpodation services. Nonaviation usa inciudes: grocery store, Iiquor store, lumber yard, agneultural activify, goli course, automobile service station, shopping centar, 6owling ailey. Q. What areas on the airport are availa6te to lease't A. We highly encourage potentia! tenants to contact the Leasing & Property Management Office before submiiting a lease application for a padicular parcai ar tarminal bui4ding space sa thaf our staff can work with yau to help you find the right fit for your activity. Q. Is there a list of evaila6le lots and terminal building space far lease7 0. Yes. However, you must visit the Leasing & Pmperty Management INfice to disauss your propased activity and we will work on findinq a space if yaur proposed activity requires being looated nn Airport land or in one of the terrnioai buildings. Q. How is the term of an Airport Lease established? ~""~--. A Generally, an Airpod land lease term is based upon the dollar amount of investment proposed by the lessee and can be issued for up to a maximum of 55 years. A terminal buiiding space lease term is usuaily established based an specifip business criteria and can range from 126 days to 5 yeara 4. May I subiease spaca to someo~e e1se4 A Generaily, yes. If you are subleasing to a wmpany or person for the samre authorized uses in your o6ginal lease with the Airpod, the subfease is controiled by the Airport's iease, and you mast receive tfie AirporPs prior written consent of the sublease agreement. For more detailed information, please review the Alaska Administrative Coda, Titls 17, Chapfer 42, Sec6on 270. Q. Can I assume someone's existing Iease? A Yes, but we highiy recommend you wntact the Leasing & Property Management Office to detsrmine if the lease is in goad standing and if there are any prpblems associatad with the existing fease. Regardiess of any private transactions betwesn individuals, the axisfing lease remains in the onginal owner's name unfil assignment papers are submitted and consented to by the Chief of Leasing & Property Management For more detailed information, please review the Alaska Adminisfrative Code, Title 77, Cfiapter 42, Section 26Q. Q. Can ! Iook at a fease file7 A. Yes, iease files are pub(ic inPormation, but we ask that you cail tha Leasing 8 Properry Management Office (P07-286-2420} in advance so we can have the file availeble for you to revievr. You can request copies of files; the cost is $25 per page (the 5rst 70 pages are free}. 14 Fairbanlcs International Airport, Transportation & Public Facil'xties, State of Alaska Page t of 5 Employee I~irectory DOT&PF Home. Search QC}T&PF! . a ftirport Phonebo~ h FAE Brochure Pti W~ Hirport Fees ai~f ~ Le~asing Airpori , Grauntl Transpo '~ Buslness Permit~ i~ Airline Certifetl i ~ Finence & Statis 6 General Aviatinn ~ Pilats LQUnpe a Aircraft Tiadov, & 7ransfent Aircr z Aircraft Service ~easing Airport Praperty Fakrbanks Intemational Airport occupies approximately 3,55Q acres and is located about 4 miles southwest oi downtown Fairbanks. The Airport is owned and operafed by the State of Alaska and fs administered by the ~epartment of Transportation and Public Facilittes (DOT&PFj. The Leasing Office at the Airport oversees approximately 1&8 land, tertninai 6ui(ding, and other oontracts such as Business Activity ?ermits, Commercial Passenger Vehicle Permiis, and Vehicle Rental Business Permits, and 39& aircraft Siedowns. Frequentiy Asked Quesfions Q. What kinds of activiEies can airpoft larttl be used for? A. Generally, airport land should only pe used for those uses that must ba on airport property due to its use and proximity to aviation facilities. The Alaslta Administrative Code, Title 17, Chapter 42, Section 990, Definitions, describes Ia~d uses and privileges as foliows: 1. "aviation use" means any business, service or other function that directly involves, or is necessary for, the normal operation af aircraft that use an airport; "aviation use" includes the following: aireraft toading, unloading, tiedown, parking, storage, sales, service, rental, maintenance, or repair, saie or starage of aviation fuel and aviation petroleum produots; pi(ot training; air oharter or air taxi service; airport terminal building; air carrier operafions; aircraft ground handling; aircraft parts sales; and air traff~c confroi tower, air navigatlon aid, and aviation weather instrumentation. s Airparh ~ Airline Agreeme~ P FAI Nevas Piease nofe: You must . Reader Eo open any P3 on thie page. If you do koroba# Roader, r.iir,k tr FftEE sofiware.; ~~„~~~li ; Rem httg:/lwww.dot.state.ak.uslfaiiap/leasin,~.s3~im1 l ~ ~/2412007 O6T&Pf > Fairbanks Internaiionai Airport> C7oing 6usiness et FAI > ~easmq Airpart Property ~ ~. - - _ ~~3~~"#~ ~t~]tRf Homo • Abaut FAt ~ Contact tnfarmation ~ P Passenger Info LlOtti~ BUStC12S5 8~ FAI ~boingBusiness: O'eaSEil~ ~ . y Airport Contact i~. • Leasing Airporf Properry • Forms • Frequentiy Asked O,uostinns ~ Links • Le2se .App6catlon Process • Cantacts Fairbanks Tnternarional Airport, Transportation & Public Facilities, State of Alaska Page 2 of 5 ~2, "auxillaty use" means any business, service, or other funotion that is neither an aviation usa nor a nonaviation use and is located and carried out on an airport for the ~ convenience of the air traveling pubiic, aviation business on fhe airporE, or the empioyees necessary to the maintenance and operation of an airport; "auxiliary use" inciudes the folbwing: air height forwarding, ground transportation services not nperated by the department, such as a faxicab service, an airpoR limousina or shuttle service, a rental car agency, or a vehicle parking business; in-flighf caCering; hotei accommodation; restaurant service. 3. "nonaviation use" means any business, service, or function that is (1) not an avfatlon or auxiliary use; Qi) is not directly or indlrecUy relafed to aviation or to fhe alr traveling public; tiii) does not offer a product or seroice thet is speqially retated to aircraft operations or to air transportation; or (iv) is located or operated fo derive revenue primarily from members of the public not using air transportation sewices; and inc(udes a grocery store, liquor store, lumber yard, agricu~YUrai activity, golf course, automobile service station, shopping center, and bowiing 211ey. (a. How do I flnd out what tots or terminal building areas are avaiiable for lease? A. Contacf the Leasing O~ce to discuss your proposed activity and we9f show you whaYs available and work with you to find an appropriate space, provided that your proposed activity requires being bcated on Airport land or in the terzninai building. We highly encourage potentiai tenants Ep contact the Leasing OfFlce before submitting a lease application for a partieular parcel or terminal buiiding space so that our staff can work with you to heip~find ihe nght fit ror the activiry you'd like to da ~ _. .,--,., Q, How is the term of an Airport Lease estabiished? A. Generelly, an Airport iand lease term is base8 upon the dollar amount of investment proposed by the lessee and can be issued for up to a maximum af 55 years. Lease term tables show the maximum term that will be considered for a doilar amount af investment. A terminai building space lease term~ is usualiy esiablished on specific business criteria and may range finm 120 days to 5 years. Mare infoPb~~~.-' Q. May i sublease space to someone else? ~ A. Generelly yes, provided that 1) you sublease to a company or person for the same authorized uses in your ariginat lease with fhe Airport; 2) the sublease is controlied by the Airport's Iease; and 3} you receive the Airport's prior written consenf to the su6iease agreemenf. More infot~trF,~.~. Q. Can i asaume someone's existing lease? A. Yes, but we highly recommend you wntad the ~easing Office to determine if the lease is in good standing and if there are any problems associated with the lease you are interested in assuming. Regardless of any private transactions treiween individuals, the exfsfing Iease remains in the originai lessee's name until assignmant papers have been submitted and consented Yo 6y the Chief oY Leasing. More info~'t~F,~ Q~. What costs associated with leasing land a# the Airport is a lessee responsible foR A. The Iessee is responsible for all costs associated with development of the property, irtcluding a ske survey, bringing ufilities onko the site, driveways, taxilane access, alI costs of construction, as-buiit drawings hrip:/iwww.dot.state.ak.us/faiiaplleasing.shtml 16 5/2~1}I2007 Juneau Munic~pal Airpart {b) Leasing autharized. Land or facility space shatl be leased as provided in chapY~r 53.20, provided that the provisions of section 53.20.02Q relating to a declaration of availabilit and identificaYian iii zhe land man ~ y agement plan shall not apply. Notwithstaa~ding any provision of tlus Code Ieases may be awarded without review by fhe planning cornavssion and by negoYiation, provifled that sixch negotiatiozi is subjecf to he z atd a~raisal minimum rental and othar requirements of cha ter 53 20,,._-----~ Ivotwithstanding any provisioi~ oftY~is Cade, the maximum terni for a~~e at the aa, Qi2 shall l~e 35 vears ufiless atherwise ap xovad by the 8~or~ board, he °atrp~T1 manager shall maintain a master plat of the awpps~ depicting a ease ots and azeas, apd shall have the autlaority to negatiate 1e~s~es sub~ect to a~sproval by the aii3~~it board AgtposG Ieases' shaIl not include a tenn wlaich requues ~~ick purchase or reversion oi leasehold improvements for less than 106 pe~roeni of fair market value No le2~se for real properly shall be offered unless such real property is surveyed and identified on the master plat. All ~easa5 shaIl cai~tain a description oi the leased praperty consistent with the master plat. The master plat shall be cha~zged; ameaded, ar created by a registered land surveyor. Grades for stnzctures shall be consistent with tke `~~trk master plan. Lessees proposing consiruction shaIl bear Yhe responsibility for building to grades specifi~d by tbe ~cari manager. 17 ~tate of Alaska 2006 ~laska Statutes Title 2 Sec. 02.15.090. Operafion and use privileges. {a) In operating an airport or air navigation facility owned or cantrolled by the state, the departmenY may enter into contracts, leases, and other arrangements covering periods not exceeding 55 years with a person, municipality, or the United States, granting the privilege of using or improving an airport or air nevigation facility nr a portion of it ar space in it for commerciai, governmental, or other public purposes, ineiudin~ pri~~te ~~ane tie down, or conferriny the ~rE~~ifege of supplying goods, commodities, services, or facilities at an airporC or air navigation facilify. The department may establish the terms and condifiions and fix the charges, rentals, and fees for the privifeges or services that are reasonabla and uniform for fhe same cfass of privi3ege or service. Charges, rentais, or fees authorized by this subsection may be fixed for the internationa! airports by order of the commissioner or by negotiated or competifiveiy offereci contract. Natwithstanding AS 37.10.050 (a}, the fixing of charges, rentals, or fees as permitted under this subsection is nat subject ta the adaption of regulation provisians of AS 44.62 (Administrative Procedure Act). The terms, conditions, charges, rentals, and fees shall be established with due regard to the property and improvements used and the expense of operation to the state. A charge, rental, or fee impased on a person who is not a lessee or concessionaire of the airport may nat have the effect of charging a percenYage af the gross revenue of the person as a condition of on-site access fo customers who use the airport facilify unfess the charge, rental, or fee was in existence before January 1, 2006, snd fhis exception is not affected if the department amends, increases, or decreases e charge, rental, or fee that was in eifecf befare January 1, 2006. Use of state land and buiidings by the Alaska Wing, Civil Air Patrol and its squadrons 18 shall be permitted without rental charges. !f the department permits space in state-owned or state-controlled airports to be used as lounges for members of the United States armed forces, the Alaska Naiional Guard, the Alaska Naval Militia, or the Aiaska State Defense Force, and if the lounges are operated by persons exempt from taxation under 26 U.S.C. 501 {c)(3)(Internal Revenue Code), rent may noY be charged for Yhe use of the space. The department shall provide for public notice and an oppartunity to comment before a charge, rental, ar fee is fixed by order of the cammissioner as permitted under this subsecfion. The public may not be deprived of its rightful, equai, and uniform uss af fhs airport, air navigation facility, or a portion of them. (b) The department may by contract or other arrangament, upon a consideration fixed by it, 9rant ta a quaiified municipaiity or person for a reasonable period of time fhe privilege of operating, as agent of the state or otherwise, an airport owned or controlled ~y the state. A municipality or person granted that privilage may not operate the airport other than as a public airport or enter into a contract, lease, or other arrangemenf in connection wifh the aperation that the department may not have undertaken under (a} or (c) -(e) of this secfion. ~(c} Notwithstanding the right o# the public to rightfu(, equal, and uniform use under (a) of this section, before the expiration of a land lease, inciuding the termination of a fease in holdover status, entered into under this sention, the lessee may apply for a new lease, or for an extended term under the existing lease, for fhe same land. The commissianer sha(I approve fhe appiicafian for a new land tease or an extended term under this section without offering the land to other persons for leasing if (1) the {essee is in compiiance with the terms and conditions of tFre existing or holdover lease; and 19 (2) the continued use of the leasehofd is consistent with written airport ~ operafion policies and is in the state's best interest. (d) A iand lessee awns fif(e to the psrmanent improvements that the lessee constructed or purchased during the term af the lease, unless the Iease expressly provides that the state is the owner of the permanent improvements. (e) At the expiration, termination, or canceliation of a land lease entered into under this section, (1) a lessee who owns the improvements under (d} of this section sha(I confinue to own the permanent improvements Ehat the Iessee constructed or purchased on a leasehold if the lessee is granted under (c} of this secfion a new lease or an extended term for the same land; (2) a lessee may sell tha permanent improvements owned by the lessee to a succeeding Iessee afthe same land; (3) af the optian ofi the lessee, the permanent improvements awned by ths lessee may be sold by the stafe at pubiic auction with the proceeds from the sale of fhe improvements going to fihe lessee, less administrafive costs of the auction and obiigafions owed under the lease to the state; the successfui bidder has #he same right to enter into a new lease under {c) of this section without the department offering the land to other persons for leasing; (4} after nofice by the department, fihe permanenf improvements owned by the lessee shail ba removed at the lessee's sole expense if (A) the permanent impravements do not comply with written airport operational policies or are not in the state's best interest; {B) the permanent improvements are not sold under (2) or (3} of this subsection; or 20 (C) the department makes written findings that the permanent improvements are a hazard to the public health and safety; (5) title to the permanent improvements vests in the department if fhe state purchases or otherwisa canfracts for the ownership of the pecmanent +mprovements, or if the lessee abandons Yhe permanent improvements. 21 C~~ o-~ ~~b~~-f~~ ~ .~.____. 13.Q4.38D Caenmereiai dots and aviafiar~ service Ieases, Leases for aviation related services may be entered into for a maximum of thirty years, and renewal may be made thereafter on a time basis agreea6le to both city and lessee. The rentai for such a lease shsll be equitabie and comparable to current commercial or business lease rates. Any buiiding or development pfans by the lessee shaii be submitted to the city councii for approval and shall state the intent of such building or development in writing. (Ord. 97 {part), 1976: prior code § 28.07.050). 22 ~V W~bJ~~ Iy 5.32.120 ~e~~~ of ~aii.~parf properEy. A. General. This section applies to the Isase of ajrpoPf praperty, to the exclusion of the provisions of ail other sections of this chapter. Airp.orf property may be l~asetl through an application or seaied bid process, B. App{ication Process. An applicant desiring to ~ease ai,rpatt property shail submit an application to the city. The application shaif contain: 1. Name, address and phone number of applicant; 2. ldentification af area requested; 3. A description af #he activity to be conducted; 4. A scale drawing depicting the proposed development, inciuding but nof limited to iocation, size and height of buiidings, identification of materials fo be instailed an the property, and proposed iocation of ali ufility connecfions. This drawing must show fhe relationship between the devefopmenE, the property lines, and any relevant devefopment on ad}'acen# or other properties; 5. ff the proposed use is commercial, a written business plan for the activity to 6e conducted; and 6. Any and afl additional information which may be requested by fhe city. G. Action On Appiicafiion. The city shali process applicatians dape~ding upon use as follows: 1. For private use, such as a hanger or kie-down, where the building is less than fen thousand (10,000) square feet, and the term of 4he lease is ten (10} years or less, the appiicatian and lease rnay be approved by the mayor after administrative review and evaluation. 2. For a smali commercial use, where the building is less than ten ~housand (10,000) square feet and the term of the I~ase is ten (10) years or less, the appiication and ~ease may be approved by the mayor after administrative review and evaluation. 3. For any other use, the application will be reviewed by administratian, submitfed to the pfanning commission for review and recommendation, and then submitted to the cify 23 counci( for final action. Private or smail commercia[ use may also be submitfad to the planning commission and the city council if, in the opinion af the mayor, such submittal is appropriate under the circumstances. 4. For alf uses, the city may accept re}ect or p#ace conditions on the acceptance of any applicafion to ~ease ~arpo#t property. The city may also require the prepayment by applicant of certain necessary costs such as administrative costs, surveying, subdividing, utility instalfation, soi}s tesYing, etc. Ll. Sealed Bid Process. The city council may make specific areas of the ai~po~t available for ~~ase for general ar specific deve(opment fhrough a sealed bid procedure under conditions to be specified by the city cauncil. In this process, the city reserves the right to take into consideration factors other than i~~se rate, and may award the property to any bidder whose proposal is deemed to be in the best interests of the city, regardiess of lease rate proposed. In addition, the city reserves fhe right to reject any and ail bids or proposals. E. Lease Form. A~e~s~ for a~~pcrrC properEy shall include certain provisions, as falfows: 1. A requirement that the use of the property be in accord with the ~~~po,i-~ deve(opment plan, and that the use of#he properEy shall not viofate any condition or requiremant placed on the property or the a~rp,o,rt itseif by the city, the state of Alaska, or the Faderal Aviation Administrafion; Z. Lease rate, term, rental adjustment and other provisions 5.32 120 ~;sase of ~-~o~ property. A. General. This section applies to the fess~e, of ~~~a,r~ property, to the exclusion of fhe pravisions of al! other sections of fhis chapter. AirpQr~ property may be Ie~~ed through an application or seafed bid process. B. App[ication Pracess. An applicant desiring ta l~ase ~~r,p~~~~ property shail submit an appiication to the city. The application shail contain: 1. Name, address and phone number of appiicant; 2. fdentification of area requested; 3. A description of the activity to be conducted; 4. A scale drawing depicting the proposed development, including but nat limited to locafian, size and height of buildings, identification of materials to be instai(ed an the property, and propased location of afi utifity connections. This drawing must show the relationship between the development, 24 the property lines, and any relevant development on adjacent ar other properties; 5. if the proposed use is commercial, a written busi~ess plen for the activity to be conducted; and 6. Any and alI addifionai information which may be requested lay the city. G. Action On Application. The city shall process applications depending upon use as foliows: 1. For private use, such as a hanger or tie-down, where the building is less than ten thousand {10,000) square fest, and fhe term af the leas~ is ten (10) years or less, the appiication ar~d lease may be approved by the mayor after administrative review and evaiuation. 2. Far a smail commerciai use, where the building is less than ten thousand (10,Q00) square feet and the term of 4he lea`se is ten (1p} years or less, the application and ,I,ease may be appraved by the mayor after adminisfrative review and evaIuation. 3. Far any other use, the application will be reviewed by administration, submitted to the planning commission for review and recommendation, and then submitted tp the city council far final action. Private or small commerciai use may atso be submi#ted to the planning commission and the city council if, in the opinion of the mayor, such submittal is appropriate underthe circumstances. 4. For ail uses, the city may accept, reject or place conditions on the acceptance of any appficafiion to 1e~se ~~~an~f praperty. The city may also require the prepayment by applicant of certain necessary costs such as administrative costs, surveying, subdividing, utility installation, soils testing, etc. D. Seafed Bid Process. 7he city councii may make specific areas of the a~~pq~ availatale for f~~se for general or specific developmenf through a sealed bid procedure under canditions to be specified by the city council. In this process, the ciiy reserves the right to take into consideration factars other than ~e~s~ rate, and may aw~rd the property to any bidder whasa proposal 4is deemed to be in the best interests of the city, regardless of le~§e rate proposed. In addition, the city reserves the right to reject any and all bids or proposais. E. Lease Form. A~eass for ai~~oi~ property shall include certain provisions, as follows: 1. A requirement that the use af the praperty be in accord with the e~~r~ development plan, and that the use of the property 25 shall not violate any candition or requirement pfaced on the property ar the air.pnrf itself by the city, the state of Alaska, or the Federal Aviation Administration; 2 Leas;~' rate, term, ranta! adjustment and other prpvisions that are in accord with the requirements and poficy of the Federaf Aviation Admi~istration; 3. R provision prahibiting assignment or sublease without the approvai of fhe city; and 4. A provision authorizing the granting of a security interest by the fessee in the Ieasehold inferest for fhe purpose of securing financing far the construction of improvements on the praperty. F, No Warra~ties. By classifying or ~easr~ng airpo{t property, the city expressiy does not warrant that the land is suited for the use proposed or authorized under the classification or 1~Se, and no express ar impfied warranty or guaranty is given as to the present or any future condition of the property or that it shali be prafitable to empioy the land for the proposed or authorized use. (Prior code § 7.16.125} that are in accord with the requirements and poSicy of the Federal Aviation Administration; 3. A provisian prohibiting assignment or sublease withouf the approvai of the city; and 4. A provisio~ autharizing the granting of a security interest by the lessee in the leasehold interest far the purpose ot securing financing for the construction of improvements o~ the property. -y::'~.«^u,.. F. No Warranties. By classifying or ~eas,~~ts~ ~~~p~~# property, the city expressiy does not warrant that the land is sufted for the use proposed or authorized under the classificafion ar 1~ase, and na express or impfied warranty or guaranty is given as to the present or any tuture ca~dition of the property or that it shall be profitable to employ the land for the proposed or authorized use. (Prior code § 7.16.125) 26 G~~~ ~ r~ o~ i.3.10 T`l~e sole right to determine the level, methods and schedules of any mainYenance or improvements at the Airpart; and shall have the right to close flte Airport whenever Landlord deerns it necessary for reasons of public safety or convenience. 1.4 No Limitation on Landlord's Authority: Nothing stated herein shall be construed as to linut in any way the general power and righY of Landlorfl to exarcise ite governmental or proprietaiy powere in any way, including such as may affect the Airport, the Premises, the Common Areas, or any ather azea under the jurisdictaan of Landlord. 1.5 Reetrictions on Use. 'E~ccept as necessary and incidental to the use spacifically authorszed £or the Premises pursuant to Section t.2 of this Lease, and wiThout limiting Yhe generality of the restriction on the use set forth in SecYion 1.2 of this Lease, no ase may be made of; on, or from the Premises ralating Yo the use, handling, genaration, storage, disposal, transportation, or discharge af Hazazdous Substauces as defined itt Article 6 af this Lease. Under no circumstaztces shall any use be made of, or conducf occnr on, the Premises which would cause the Preinises, ar any part thereof, or the improvements constructed on the Prem.ises, to be deemed a hazardous waste treatment; storage, or disposal facility requiring a permt4, interim status; or auy other speciaY authorization under any Environrnental Law as defined in Article 6 of this Lease. 1.6 Access to Premises Landlord shall at al1 times during ordinary business hours have the right Yo enter upon the Premiaes and Impmvements for the pusposes oP: (i) inspecting the sarne; (ii} confirming the par£o~manae by Tenant aF its abligations under thi~ Lease; (iii) doing any other act which Landlord may be abligated or have the right to perform under this Lease, or reasonably raiated thereto; and (iv) for any other lawful pu~pose. Such inspections shall be made only on 48 haur advance notica except in cases of emergancy. Sudi natice shall be sufficient if prominently posted on ehe prirnary huilding for 48 hours prior to the inspection. _ ~ ArticEe 2. Term 2.1 Term. The term of this lease is for a period o£ 20 years, commencing May l, 2005, and continuing through Apri130, 2025, unless sooner terminated under the provisions of Chis Lease. 2.2 Ogtions ta Renew. 2.2.1 Subject to the terms of this Section 2.2, Tenant shall have the option to renew the Cerm of this Lease for Three (3) terms of ten years each, to run concutrent with the e~iration of the Primary Term, and each renewal terrn. 3- BBST, LLC Ground Lease 27 Suggested by: Administration CITY OF RENAY ar~nudrnxcE nro. 2za~s-2ao°r AN ORDINANCE OF THE COUNCIL OF THE CITY OF KENAT, ALASKA IiVCREASING ESTIMATED REVENUES AND APPROPRTATIOiVS BY $27,532 IN THE SENIOR FliND FOR ADDTTIONAL GRANTS AND DONATIONS. WHEREAS, the City of Kenai has received notification from the Kenai Peninsula Borough, The Senior Connecdon, and United Way that funding levels have increased for the Senior Citizen Prograzn; and, WHEREAS, it is in the best interest of the City of Kenai to utilize this additional funding. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA that estimated revenues and appropriations be increased as follows: Senior Citizen Fund Increase Esiiinated Revenues: Kenai Penirzsula Borough Grant $9,532 United Way I5,000 Donaflons 3,000 27 532 Increase Apprapriations: Office Supplies $1,000 Operating Supplies 13,812 Travel and Transportation 1,220 Repair and Maintenance 4,000 Professional Services 7.500 27 ~~2 PASSED BY THE COUNCFL OF fiHE CITX OF KENAI, ALASKA, thrs Z 5~ day of August, 2007. ATTEST: PAT PORTER, MAYOR Carol L. Rreas, City Clerk Approaed by Finance: -tL ' (07/25/2007} hl Introduced: Augast 1, 2007 Adopted: Augtzst 15, 2007 Effective: August 15, 20d7 28 Suggested by: City Manager CITY OF KEPfAI ORDINANCE 2d~. 2249-20ti7 AN ORDINANCE OF THE COUNCTL OF THE CITY OF KENAI, ALASKA, AiVIENDING ORDINANCE NUMBER 2194-20d6 BY AMENDTNG THE PURCHASE AGREEMENT AUTHORIZING THE SALE OF APPROXIMATELY 14.784 ACRES OF LAND DESCRIBED AS LOT A, BARON PARK SLtBL1IVISION, 2006 REPLAT TO LOWE'S HOME IMPROVEMEI~TT WAREHOUSE, INC. (LOWE'S) BY ADDING A"PUT RIGHT" FOR ONE YEAR AFTER THE CLOSE OF THE SALE WHEREBY AT LOWE'S OPTION THE CITY OF IiENAI WOULD REPURCHA9E THE PROPERTY FOR THE PURCHASE PRICE PAID BY LOWE'S MINUS ANT' REAL ESTATE COMMISSION PAID BY THE CITY OF KENAI. WHEREAS, when it is found that encouragement af a new commercial enterprise would be beneficial to the City of Kenai, KMC 21.15.170 allows the sale of City land to be autY:orized by ordirance u~o.^. such terms as to price, conditions of co.^.veyance ar.d other canditions of sale as may be set forth in the ordinarcce; and, WHEREAS, on November l; 2d06 the Council enacted Ordinance No. 21.94-2006 that authorized the terms and conditions for the sale of property described as Lot A, Baron Park Subdivision, 2006 Replat consisung of approximately 14984 acres to Lowe's for $1,650,000 for the construction of a home improvement warehouse; and, WHEREAS, because of uncertainties in the costs of construction Lowe's has requested a"Put" Right for a period af one year from the date of closing whereby at Lowe's option the City of Kenai would repurchase the property from Lawe's for the sale price paid by i,owe's minus any real estate commission paid by the City on the original sate of the property; and, WHEREAS, should Lowe's exercise the Put Right, anp money or income earned on the purchase money while in the Airport Land Sale Persnanent Fund shall be retained by the airport. NOW, THEREFORE, BE IT ORDAINEL} BY THE COUNCIL OF THE CFfiY OF KENAI, ALASKA, that flrdinance Number 2194-2006 is amended to authorize the Purchase and Sale Agreement include the Fourth Amendment to Purchase and Sa3s Agreement as shown on Attachment "A." PASSED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, this 15th day of August, 2007. PAT PORTER, MAYOR 29 Ordinance No. 2249-2007 Page 2 of 2 ATTEST: Carol L. Freas, City Glerk Introduced: August 1, 2p07 Adopted: August 15, 2007 Effective: September 15, 2007 30 FOUIZTFI AMENI)MEhTT TC1 PURCHASE AND SALE AGRE~MENT THIS FOURTH AMBNBMBNT TO PURCHASE AND SALF AGR~EMENT (this "Agreement' j is entered into as of , 2007, by azid between THF CITY C)F KENAI, ("Seller" a hom~rule municipal corporatian nf Alaska {"Sellex"}, and LOWE'~ HIW, INC., a Washington corporation ('Buyer") (referred eo in this Agreemei~i individual}y as a"Party" and collectively as the "Parties"). RBCITALS WI3EREAS, the Seller and Buyer are p~arties io that a certain Purchase Agreement dated Decernber 1, 2006 (the "Parehase Agreement") with respect to cersain real property located in the City of Kanai, Alaska; and Gt/FfEREAS, Seller and Buyer entered into a: ~`irst A.mendment to Purchase An eement dated as of February 15, 2007 (the "First AniendxnenP'} whereh~~ certa~n deadlines set forth in the agreement were exYended; and ~H~32EAS, Seller and $uyer entered inta a Second Amendment to Purc~ase Agreement dated as af ApriI 2, 200'7 (The "Second Amendment" whereby certain deadlines set forth in the ageement were extended; and WKEREAS, SelIer and Buyer entered into a Third Amendment to Purchase Agreeinent as of June 2$, ~007 whareby certaia deadlines set:Eorth iiz the Purchase and Sale Agreament were extended; and VIHEREAS, Che parties desire to amend Yhe Purchase AgreemenC to pxovide for a "Put" right; and NOW TI-IEREFORE, for ~ood and valuable cansideratian; the receipt and sufficiency of which are hereby aeknomvledged, Buyer and Seller agree as follows: "Pat"' Riaht. If $uyer elects to close this transaction, theil, on or before ona yeaz• after the Closing, Buyer may elect, in its sole discretion; to give a written no2ice to Seller (the "Put Notice") of Bnyer's eleation to cause Se11er to i~purchase the Property by paying tcr Buyer a payment equal to the Purchase Price minus any real estate sales fee or commission paid by the Sellex und~ Paragraph 12.1 of Che Purchase and Sale Agreemant (tI~e "Put"}. tn the event Buyer elects to exercise the Put, the transactian shall clase within i~inety (90) days af the Puf notice, and be condueted in Yhe manner set for in flze Section 11.5 of fhe Purchase and Sale AgreemenC. 1"ke Put shall automatically terminate in the event the Buyer does not provide Seller w~ith timely nofice of its intantion to exercise tlae Put. The provision of this Section shall survive Closing. This A~ eement shal] not be recorded; however a memorandum of ths Put righis afforded under tliis 1,owe's Pure6ase and Sale Agree. - 4tli aznrntlment - Pli'I" RI(iHT.DOC I,awe's Kenai Peninsula: Ci[y of Kenei Parcel Page 1 of 3 3uty 27, 2007 31 Section shall be recorded against fhe Property at Closing in the form and contents set forth as Exh'sbit `.A" hereto. 2. The purchase price in Paza~~;raph 2 af the Ptu~chase and Sale Agreement, entitled "Purchase Priee" s11a11 remain dne MilIion Six ~Ira~idred Fi£ty Thousand Dollars ($1,650,000.00). 3. Land Sale Pmceeds. Proceeds from the sale of this property shall be deposited in the Airpori La~id Sate Permanent Fund (the Fund) according to K~MIC 7.30.01 d and invesfed according to the criteria set forth in KMC. 7.22.O~Q. Shouid thc Put Right ba exercised, the repurehase price as set forth in Paragraph l of this amendment wiil be paid out of the Fund. Any interest or iticome earned from the purchase price money whil.e ixx the Fund is and s1~a11 remain propert}r of fhe City of Kenai. 4. Miscellaneous. a. Confirmafion of Purehase Aaxeement. The Parties hereby affirm and agree to be oound b}r ail oi ihe terms af the Purchase Agreement, as amended hereby. b. Non-Zm~airmei~t. Except as expressly provided herein, nothing in this Agreement shall alter ~r affect any proviso, conditian, or covenant contained in the Purchase Agreement or affeot or impair any rights, powers, or remadies of the Parties thereunder, ibbeing the rntant of the Parties fhat; exoept as amended hereby, ail of the terms, covenants and condil~ons of the Purchase Agreement shali remain in full force and effect. c. ~ntire A¢reeinent. This Agxeement constituYes the enTire agreement with respect to the subject matter hereof. d. Governing Law• This Agreement sha11 be govezned hy and construed in accordance with the laws of the State of Alaska. e. Countemarts. This A~,~reement may be executed in any uumber af counterparCS, each of which shalI be deemed an oxiginal and alf of which together shalI constitute one and the same ins[nunent. Facsimile Transmissions. This Ab eeman# shall be effective upon eo~rmation of receipt of facsimile iransmission. g. Attornev's Fees. In fhe event a party commences Iega1 proceedings to enforce any terms oi this Agreement, the prevaiIing Party shall have the right to recover reasonaUle attorney's fees and Lowe's Purchase sind 5nie AgreE. - 4ih amendmeni - PtJ't R(Gl~i 7'.UOC Low^e's Kenai~ Yeninsula: Citp of Kenti Parcol Page 2 of3 ~ 7uiq 27, 2007 32 costs from fhe other ParCy, includin~ reasonable attornay's faes and costs on appeal, to be fixed by the court in the same action. SELLER: BUYER: CITY OP KENAI, ALASKA a home-rule mwiicipal corporation of Alaska By: Nama: Tit1e: LOWE'S: I owe's I~II~VJ, Inc, a Waskington corporaiion By: Name: Tit1e: 4.owe`s Purchaua and Sxle Agrec. - 4th a~nendment - POT RIGHT.DOC ;,owe s Kenxi Peieins~uie: City af C~enai Parcel Page 3 of 3 July 2 i, 2007 33 NOT BINDFNG UIvTTIL E.Z'ECCTTEB BY ALL PARTIES EXI IIBIT A Form of Memorandwn of Agreement Recording Requested By And When Recorded, Return To: Pau] M. Harman Jones Waldo HolUrook & McDonough 170 South Main Street, Suite 15O0 Salt Lake City, UT 8410I-1644 MEMORANDUM OF AGRF•,BMENT TASS MEMORANDUM OF AURF.,EMENT (this "M. emorandixm") is made and entered iizfo as of the day of , 200_, oy and beiween THi; CITY OF KENAI, ALASKA, a home-rule munieipal corpora#ios~ of Alaska ("Seller"}, and LOWE'S HTW, INC., a Washington corporation, (`Buyer"} (individually, a"ParCy" and collectively, the "Parties"j. WHEREAS, Buyer and Seller have entered into that certain Purchase and'Sale Agreement of aven date herewith (the "AgreenienP'); u~HEREAS, the Agreemenf pertains to the "Subjecf Property" located in the City Kenai, Kenai Peninsula Borough, Aiaska and more particulazly described on Schedule I attached hereto; and WI-IEREAS, the Agreement provides for notice of its terms to be reeorded against the Subjeat Property in the offieial reeords of Kenai Peninsuia Borou~h, Alaska; NOW, THBREPOI21~, the Parties hereby give notiee as foIlows: Section 11 of the Agreement provides to Seller certain rights to repurchase the Subject Praperty, on terms and conditions more fulty sat forth in the 9greement. The right to repurchase the Subject Property shall tenninate on tha date three (3} years and ane (1) day~ after The date on which Buyer acquires fee title to the Subject Propetiy unless tke Completion I)ate has been estended pursuant to Section i i.l of the Purchase and Sale 9greement. Any extension of the campletion date under SecYion 11.1 shall add the equivalent amount of time to the Termination Date of the Right of Repurchase. Upan expiration of the termination date, Seller will record at Buyer's request an appropriate clocument acknawledging terminatxon of the Right of Repurchase. I~F Lowe's Kec!ai Peniusula; CityofKenai Parwl .fuly 26, 2007 34 NOT BINDING UNTTL EXECU'1"ED BY ALL PART'IES 2. Secfion l of the Fonrth Amendment of the Purchase and Sale Agreenxent provides to the Buyer ceriain riahts ("I'ut" Right} whereby the- Buyar mn5r elecC to have the Selter repurchase the property, on terms and eanditioi~s more fully set fordi in the amendrnent. Tlie F'ut Right shall terminate one year after the Closing Date on fhe property. T'he Put Right shail automaricatly terminate ii~ the event the Buyer does not exercise the Put RSght. Upon expiration of the Put Right, Buyer wi11 record at Seller's expense an apprc~priate document acknowledging termination of the Fut Ri~it. ~. ~J Lowe's Reoai Pani~~su(a City of ICenai Percel ~ July 26, 2U0? 35 NC7T BINDING UNTIL EXECUTED BY ALL PAP~TI~S Signatuce Page far Seller: IN WITNESS WHEREOF, the parties hereto have executed this Agreement under seal as of the date first above written. SELLEI2.: ClTY OF KL;NAI, ALASKA A home-rule municipal corporation of Alaska ~ By: STATE OF BOROUGH OF ) ) ss. ) Name: T'itle: ON THTS day af , 200_, before me, tbe undersigned, a Notary Public in auid for said BorougU and State, persanally appeared , to me personally lawwn tc~ be the parson described 'u~ and who executed the faregoin~ ii7strumen2, who, being by me first swom, stated that helslze is the of , a , and that he/she ehecufed such instrument on behalf of said comoration bv authority af its board af directors, asid said person acknowledged to me that helshe executed such instr~unent as the act and deed of said corparation. IN WITNESS WHEREOF, I have hereunto set my huid and affixed my~ officiai seat tha day and year last above writzen. Notary Public Printed Name: My Commission ~xpires: ~~l Lowe's Kenui Per.instGia: City of Kee~ai Parcet 7uly 26, 20Q7 36 NdT BTNDING liNTIL BXECUTED BY AIrL PARTIES Sia ature Page for Buyer: LO~'E' S: Lowe's HIW, Inc., A Washington corporation g},; STATE OF cc~tn.iT~~ or ) ) ss. ) Name: Title: ON THIS day of , 2fl0__,'b~fore me, the undersigned, a Notary Public in a~7d for said County and State, personally appeared , to me personally known to be the ~ersan descrit~ed in and who executed the foregoing instrument, who, being by ~ne fixst sworn, stated that he%she is the of LOWE'S HIR~, INC., a Washington corporation, a~id that he/she executed such instrument on behalf of said corporafion by authority of its board of direccors, and said person acknow}edged to me that he/she executed such instrument as the acf and deed of said corparatian. IN WITNESS ~jHEREdF, T have hereunto set my hand and affixad my official seal the day and yeaz last above writteii. Notary Pubtic Printed Name: My Commission Expires: 1 ~ Lowe's I<enai Peninsula Citv oPKealai Parcel luty 2b, 2007 37 ~ "f/ilfa~e wc't~r a Past, Gi~ wit~i a Futu~°e„ ,~;%~~ ~ 210 Fidalgo Avenue, Kenai, Alaska 99811-7794 ~~ -- -, ~-~ Telephone:907-283-7535/FAX:9Q7-283-3014 I~Iw~i ' - - .." 9992 ~ f~re aiz~ o~ , KENA~ SItQ ~~!'~~~~• TO: City Council ~~, FROM: Riak Kach DATE: Juty 27, 2007 5UBJECT: Lawes Purchase Agreement The purpose of this correspondence is to discuss Amendment Number Four Yo the Pi~rchase and Sale Agreemeni between LOWES HIW, INC., and the CITY OF I~NAI, and to recommend its approval. Amendment number faur madifies the terms of purchase by the inclusion of a"Put Riglrt" clause nearly identical to what is included in the Wal-Mart purchase agreement. This clause allows the buyer (Lowes) to purchase the property and within one-yeaz from closing can elect Co exercise the "Put RighY' clause causing the Seller (City) ta re- purchase the property far an amount equai to the purchase price less any real estate fee or commission paid by the setler (City}. The "Put RighY' clause is anly effective for a period of one-year from clasing and does not affect existing language in tha agreement regarding the three-year development period for the property. In the event the `Put Right" clause was exercised by I,owes after one-year, the City would have in its possession the proceeds from the sale azid be entitled to any eaanings from tkat money. For example the sale price is $ 1,650,000 and the present average rate of return on the City's investments is five percent ($ 1.,650,000 x.OS =$ 82,500). City Code requires the sale price be established by an appraisal dated no earlier than one- year from the date af closing. The prerious appraisal establishing a market price of $ 1,650,Od0 expired on February 16, 2007. The City contracted with Derry B. Associates for an update of the appraisal and tbe update was received on Juize 5, 2007. The appraisal concluded the market price for the property had risen 9.09% ro$ 1,800,006. Attached is an e-mail from Bart Hollander of Lowes questioning tl~e increase in the appraised value. I spoke with t}~e appraiser abont Yhese c}uestioi~s, and also about the discovery of geotechnical issuas; wl~ich significantly increased constnzetion costs above what could have been reasonabty estimated prior to geoteclu~ical investigation. Attached is my letter to the appraiser disenssing fhe increased cost of canstruction to address tl~e geotechnical condiYion. Derry & Associates did not feel that Mr. Hollazlder's comments, or my discussion of increased construction costs due to the previously unknown geatechnical condition should affect the updated appraisal (attached letters dated June 18, & June 23, 2007}. I did not agree az~d contracted with MacSwain & Associates to provide a second opinion. Based on the llmited comparable sales and considerin~ the increased casts of construction for this type of development on this site, the MacSwain R, Associates appraisad market value rernains unchanged from the pravious appraisal of $ t,656;000. This accounfs far some appreciation of the value of the property while recognizing the increasad costs of const~-uction as a result of addressing what had previously been an unknown geotechnical condition. I believe the MacSwain & Associates appraisal to be an accurate representation of the market value of the property. In fact I was concerned ihe market value might be reduced from the appraisal that expired on February 16, 2007 as a result of the information available at this fime. Administration recommands approval of Amendment Nurnber Four to the Purchase and Sale Agreement in the amount of $ 1,656,OOQ. 39 Page 1 of l. Rick Koch From: Bart Holiander [barthoilander@yahoo.com] Sent: Monday, June 11, 2007 3:12 PM To: Rick Koch Ce: Greg Johnson Subject: Kenai, AK - Appraisal Update Rick, per our conversation earlier, I would Iike to reiterate my concern regu~din~ the appraisal update by Derry & Associates which iizcreased b5~ appraxirnatelq 10% the purohase prioe of Lots A-1 and A-2, Baron Park No. 6, totaling approxumateiy 14.78 ac. According to the update, four Comparables are listed, only one of which is azi actual ~ra~isaction. The other three are either listings or a pending purekase. Of the four comparables, the only one which would seern to ha~~e any relevance is Camparable 2, the R'almart parcel, whieh is a pending sale. Like the pending Lowe's parcel, it is a large tract (38.2 ac} and the price is $2.15lsf. This price is $0.65lsf lower than flie $2.SOJsf price#he ~LSM valuation o£the Lowe's property would eouate to. Of the other three, the only parcal that was actually a sale was Comparable 1, and that is only a L26 ac pazcel or $6.31{s£ There reaIly is no relevanca between a 1.26 ac sale and a 14.78 acra sale. Of the remaining two parcels, Comparble 3 is the Stanley property which is only a listin; and at 3.34 acres again really has no relevance to the Lowe's acquisi2ion. Additionally, it is the potenrial development nf the Lowe's property that will increase the value of the Stanley property. Lastly, Comparable 4 is only a 5.05 aere parcel wluch is Iisted at $2,14/sf, which is actually $0.661sf LOWER per sf than the $2.80/sf valuation of the Lowe`s property. It is also stated in the appraisal that the list price of Compazable 4 has been lowered $25,000. Given this data, I fail to see the justification for any increase in the appraisal price for the subject property. Please let me know your thoughts. Thank you a~id I apologize for not sending this through Lowe's email system. I am having problems today with recipients receiving my ernails. Respectfully, Bart J. Hollander Lowe's HIW, Inc. Get_the £iec Yalioo~ toolbar and rest assured wifh the added security of spywaze protectzon. ~i26izoo~ 40 ~~~~~ Juna18.2007 2 1 2ti01 c; ~= Rick Koch, City Manager City of Kenai 210 Fideigo Avenue, Sufte 200 Kenai, AK 99611 RE: Vafue Conciusion - Appraisai Update Restricted Use Appraisal Report Lot A, Baron Park 2006 Replat Propased ~owe's Site Kenai, AK Dear Mr. Koch: This letter is a foliaw-up to our meefing last Thursday and a letter from Bart J. Holiander af Lowe's regarding the value conciusion in the abave referenced appraisal update. lf ~ the Appraisal Update had been prepared in a Summary Appraisai farmat both you and Mr. Ho{Iander wouid have been able to better understand the appraisai process and analysis made in concluding current Market Velue. Four "new" comparables are listed in fhe Appraisai Updafe but as stated in the Restricted Report, Market Value was concluded based on a current analysis of the comparables also induded in the originei appraisal in February 2006. In his email of June 11 Mr. Hallander contends that the price fior the proposed 38.2 acre Wal-Marf purchase (Camparab(e 2) is 5.65/sf {ower than the value conclusion for this 14.78 acre tract. One needs to remember thet the Wai-Mart site contains a narrow band of wetiands/peat soils extending through the middie of the site which requires a permit from the US Army Gorps of Enginears. More importantly; uti(ity of 15-20°l0 of the total acreage is impaired by the 10-20'+/- high mounds along the Marathon Rd. frontage. According ta,the City Pub(ic Warks Department the mounds consist of dirtloverburden removed during construction at the Airport and floatplane basin and may aiso include some trees: stumps, and concrete from road construction debris which wiii complicats and increase the cost of removal prior #o being able to use this portion of the acreage. Mr. Holiander states that he sees no relevance between a recent 1.26 acre sake (Comparable 1 in the appraisai update) and the value conclusion for the (arger, 14J8 acre site appraised. As you weA know there are few large acreage transactions that can be analyzed as direc# comparables and therefore as appraisers we heve to rely on sales and iistings of smaller iots and acreage to provide importanf indicators of changes in 41 market conditionslvalue, demand, etc. When comparing this recent comparable to a August 1999 lot sale at the comer of Marathon Rd, and the Spur Highway an increase in value at 5- 7%lyear, compounded monfhly is indicated after accounting far small differences in topography and location. Based on this and other paired transactions it is Gearly evident that market conditions for vacant commerciai la~d have nat remained flat over the past 12+ months. Therefore, an upward market conditions adjustment has consisfently been applied over the past year, including the appraisaE update of the Wal- Mart sife. Bath Comparables 3 and 4 in the Appraisal Updete are current listings, presented to inform the reader of current market acfivity and trends within the business district. Typical(y listings are considered to se# the upper range of value prior to buyedselier negotiations. in comparison to the subject property Comparable 4 requiras an upward adjustrnent for its inferior location. Since completing Yhe Appraisai Update I recentfy confirmed a May 2007 sale of a 2+ acre lot franfing the south side of the Kenai Spur Highway: southwest from the Airport Wey intersection. Unadjusted the sale is in the range of Comparabie 1 in the Appraisal Update, however after accounting for limited utility within a shared accesslparking area the saie indicates within the range of ~7.38 to ~8.00+/- per square foot. The value conciusian in this Appraisal Update is the result of a current analysis of tweive comparabfes. Recognizing the upward trend occurring within the Kenai CBD it is not market supported that the value of the proposed Lowe's site has remained unchenged since February 2006. Respectfully submitted, L>~~`~`-~' ~~~~~` Julie A. Derry //~1fl~tf~$~,t ~ DEttItY & ASSOC, _ IATES, Inr. 7~~Z- ~G~ ~ ~ ~~ r ~,~`" y ~_.' ~ ' PNCLL~Of ~ KENA~ SKII Jui~,e 20, 2007 7ulie A. Derry Derry & Associates, I~~c Box 2b82 Kenai. AK 99G11 „~°~(~~e wc't1~ ~ Pa~t G~° y r~~t~a ~ F~r~tr~~e„ 210 Fidaiga Avenue, Kenai, Alaska 99611-7794 Telephone: (907) 283-7535 / Fax: (907) 283-3014 www.ci.kenai.ak.us Subject: Appraisal, Lot A Baron Park 2006 Replat, Proposed Lowe's Site Dear Ms. Derry: The purpose af this conespondence is to respond to your request for information regarding fhe geoYechnical condifions found below the bailding footpzint for the proposed Lowe's Aome Improvement Cenfer. Approximately 30 feet belaw the building ~ ade is a layer of sand that is not consolidated, and has high moisture content. This layer during a seismic event consistent with the 19G4 earthquake (100 yeaz event) would liquefy. In turn, ehere may be differentzal settlement in the soals above this layer resulting differential settlement of a slab-on-grade. There are severa] inethods by which to address this geotechnical condition. I,owe's looked at a grocess of dynarnic compaction. This would result in the layer being made co~npact, wo~1d eliminaie niueh of the risk of difFerential setYle~~ent in the building slab, and would cosi approximately $ i,000,000. Another method to address the issue is to aanstruet a strucYural slab with significantly more rein£orcing steel. This would construcY a slab able to better withstand some amount of differential settlement and would cost approximately $ 250,000. As we have discussed, I do not believe this geotechnicaI condition to be unique to the proposed Lowe's site. I believe this condition is discantinuous throughout the central City of Kenai. That bein$ said, it is only my opinion since I do not have access to geotechnicat data for other sites within the City of Kenai. 43 This has not been an issue in the pasf as this level of defailed geotecnnical anaiysis has not been performed and the ma}ority of buildings constructad in Kenai ocoupy a significantly smatler footprint than I,owe's and are therefore less susceptible to differential settlement during a seismio event. Thank you for your attentian in this matter. Sincerely, ~„ ~TY OF KENAI rA r~~l~ t Rick . Koch C,ity Manager 44 ! ~ ~ DERAY & A850CLATES, Inc. ~ ~ Real Bmtete Appeaieera dc Crnmaelaes (967) 260-8434 • decry@alaska.com ~ ~Box2882'Kenai,AK99b11 June 23,2007 Rick Kach, City Manager City of Kenai 210 Fidalgo Avenue, Suite 204 Kenai, AK 88611 RE, Veiue Condusion - Appraisal Update Restricted Usa Appraisal Report lat A, Barort Park 2~06 Replat Proposed ~owe's Site Kenai, AK Dear Mr. Koch: This Istter is a follow-up to our discussions regarding the value concfusian in the above refsrenced Appraisai Update that was prepared effect~ve June 5, 2007. i~ our previous response letter of June 18 we did nat specificatly address that in fsct we had eonsidered new information conceming soiis on-site thai has come to light in the past year. in your letter of June 20 you confirmed that the "geotechnicai condition" is not unique to this loc~tion which is an important issue to considar in the valuation. If a property own~r considering construction on this sita were to relocate to another location in the Kenai Business District they likely would he faced with the same soii conditions. You indicate tF~at the large footpdnt for the proposed Lowe's buiiding requires additianal reinforcemen4 dua to the soil conditions that has not been required to date fnr smaSfer buildinga canstructed within fhe Kenai CBD. This assentiafly then can be viewed as a cost of conatruetion for buildings af this size cansidering the soiis in Kenai raiher than an added cost af building on this specific aite. If as an eppraisar we start applyi~g sub}ective adjustments related to a buiider's costfor specific conetruction pians we are no longer cansidering tvlarket V81ue. We always address featuras that our unique ta a site but it is our understanding that ths undertying seiia on ~ot A, Baron Park 2006 Rep(at are no ditferent than on the othe~ Iofs that haVe said or are pending sales in the Ke~ai CBD. As a result it wauld be purely su4jedive to reduce the S~Aarket Vatue of this site hy the added cast of construction for the pro~osed building. Respectfully submitted, ~ Q( /i~ Julie A. Darry i 45 A 1~ 1I~E A l~ T 4409 Business Park Bou(evard, Suite 22, Ancborage, Alaska 99503 RESTRICTED USE APPf~AISAL 14.78-Acres of Vacant Lend (Lot A, Baron Park 2006 Replat) ~ d ~ ~ ~ ~ "'" . , " aw,. .~ . a~.... W , w d ~4°~ , ~ wssee.¢a .~.o...,, ~....,.. , ... ~, ,...,~..,~,.w .. ~ M ~1 ~~~ ~ ;+,~~y ~~~:_ , ~e~ PiuvxY /c~wt2mtr~G96C~kmn~~ ! +s +Py ~~ . ~ I ~i.,m^a. f9~x~af e .ft".".5rn. '~ o ~` fNPmn 4rn411~RtlAUu I °~. -.. ,.1 l ~ ~ c ~ ;' ' / ~^~, I .~ c~ Ar p 68~ S': ~'$ , ~ ~l e`; / ~ a ! a~ l ~k ~G~v ~, J f~~ ~ ; Lot A m. ~ ~ ~ 4 4.,~,tir~~ i,R~b~~ =„u.~. ~.. ro.R:~~ i: ~,,~~~~ ;~.~f_ / tJ~~ T :~u~u.f ~'~'~ n~ t z~. ... ~,.~ Laff ~ pvenue ~;;~ ~ t _ _ ;y~ x j ~~' p @ ~ ~' ~~m' -~ ;a M I N~L C ~ ~I I ~~ ~ ~ ~ ' ~ dn~.nla'n++ea ~ + l ~ F rrommmw Psa.~ u"aa ~ ~ .,. Valuation Date: Ju(y 23, 2D67 Report Date: July 27, 2d07 File No: 07-1613 Submitted To: Rich Koch, City Manager City ofi Kenai 210 Fida}go Avenue Kenai, Alaska 99611-7794 46 ~ 44~I Businass Park Blvd., ,4uite ~2 ~ ~ Anclaorage, Adaska 99503 Te[ephone:907-567-1965 . ~ Facsimile:409-561-1955 ~ ~ ~ ~ ~' s.neacsw¢in@macswaiir. com Juty 27, 2U47 Rich Koch, City Mauager Ciry of Kenai 2i0 Fidalgo Avenue Kenai, Alaska 99611-7794 Re: Appraisal of 14.78-acres of vacant Iand located at 2S1 Manthon Road, Kenai, Alaska {Lot A, Baron Park 2006 RepIat) Dear Mr. Koch: We prepaze a Restricted Use appraisal report analyzes the abave-referenced Iand. The appraised properiy represenis a vacant tract of Iand containing 14.7$-acres (643,726 square feet} located in Kenai, Alaska. The purpose of the appraisal is to estimate the market value of the fee simple estate. This regort is prepared to comply with the Uniform Standards of Professional Appraisal Practice (USPAP) pertaining to restricted use appraisals. Sased on the data, reasoning, anfl analysas relied upon in the appraisa3 pxocess, we estimate the market value af the appraised tand, as of TaIy 23, 2007, is as follows. 1Vlarket Vatue af Saiiject I.and : $3,GSO,OQO . Your attention is directed to the Assumptions and Limiting Conditions of this report. We hope the appraisal report assists your evaluarion of the subject property. If you kave any question, regarding this report, please contact our office. Sincerely, Steve MacSwain, MAI State of Alaska Certificate No. 42 07-9613: Lot A, Baran Park, 2006 Repiat 47 ARaraisal Reacsrt This is a Restricfed Use appraisal report that is intended to comply with t1~e requixemenfs set forth under Stazidard Rule 2-2(c} of USPAP. Thns, tl~e data, reasoning, and analyses that are uszd co develop an opinion of value are retained on fle. Descrippve data contained in this report ia for the specific needs of the client; and the appxaisers are not respottsible £or t7ae unauthorized use of this report. Ciient: Rick Koch, City Manager City of Kenai 3210 Fidalgo Avenue Kenai, Alaska 446 1 1-7794 Appraisers: Steve MacSwain, MAI and Trevox Lund Tntended User: City of Kenai Intended Use af Beport: The client wi11 use the report to assist with nagotiaiing a sale of the sukaject property. Property Inspeckion 3}aCe: July 23, 2007 Date of VaFue: July 23, 2007 Date af Report: July 27, 200'7 Property R.ights Appraised: Fee simple estate LeaaC Description: Lot A, Baron Park 2006 Replat (Plat No. 2006-25) Property Owner: City of Kenai per Kenai Peninsula Borough records Property Type sud Location: Vacant tract of land located on west side of Marathan Road, just narth of the Kenai Spur Highway in Kenai, Alaska. This location is twa lots north of Kenai's primary commercial corridor. Purpose of the Appraisalo Estimate the market value of the appraised property as defined by I35PAF. The most prnbable price which a property should bring in a comperitive and open market under atl conditions reguisite to a fair sale, the buyer and seller each acting prudently and knowdedgeab7y, and assuming the price is laot affected by undue stzmulus. ~mplictt zn this dafinition is the consummation of a sale as of a speci,fied date and the passing of tztle from selZer to buyer under conditions whereby: a. buyer ¢nd seller are typically motzvated; p7-1613: Lof A, Baron Park, 2006 Replat 48 b. both pm2ies are well informed or wedl advised, and acting i~a what they consider tn be their own fiest interests; c. ¢ reasonable time is ¢flowed.for exposure in fhe open market; d payntent is made in 6erms of easli in United St¢tes dotdars or in ternzs af fznatzcial arrangerraents comp¢r¢b1e thereto; and e. the price represenCs the rzarmal co:zsideration for t12e property sold unaffected ny special or• creative,finmzcing or sales concessions granted by anyone ¢ssoczated with fhe sale.~ Appraisal Methadology and Scope: We empioy the sales comparison approach to estimate the market value of the appra'tsed land. Neither the cost nor the income capita3i~ation approach reflects market behavior for land in Kenai. Our oomparative market analysis uses qualitarive techniques to measure differences between the comparable sales and the subject. Known as a relative comparison analysis, we rate varioas featutes of the comparable sales that affect market behavior as superior, inferior, or similaz to the subject. The report rs a recapitutation of the appraisers' data and conclusions with supporfing documentation retained an fii_e. 5tatement of Competency: We have completed numerous appraisals of simitar property types in the Kenai market. A summary of the appraisers' experience and professional qualifications are located in the addenda. Steve MacSwain and Trevor Lund have the I:nowladge and experience required by the competency provisiou of USPAP to complete this appraisal assigrament. 1 Uniform Standardr ofProfessional Appraisal Practice, by the Appra9sal Foundation, 2006 Edition, p. 194. 07-4613: LotA, Baron Park, 20D6 Replat 49 ~MacSwain Associates Pareel Location: Laaation Map Pfat Map ~ ~~ ~ .~~~~~„~d~,,,( ( utta. ~ ~ .........~.........r.,.~..-. ~y '~ ,~ ~ ~ uWwurnauum~.. ~ j~ `~ ,.,~ i~°,~,~.° •~r ._.. .._... ~ .~ v„~ .,a;;.;. ..._ ............. /2',,~' ' : . , r = - cFwnr ...~.. ~.,.._. -. .. ~ ~% ~~f f h ~ t ~ { A ~k ~t ~°r~~«Q"'Yi ~~A, ~~f f J; ~ik r) ~ +~ " , ~. ~..I. ~ + ^ ~' ~ ~ ~ ' ~ f ~ ~` ~ , ~ ~` / i _ r~ f ~ ~.. ~ ~ ~ 3~. ~. _ _ ~-.~~~~ ~`~ - ~ ~ ~ ,, ~° ~ "~' ,. ~~ (- - - ~~~~ K ~,~ ~'~: !~ ~ ~,..~~.~ : cz.. ~ s `r ~j,:~„e~. i . 07-1693: Lot A, Baron Park, 2006 Replaf 4 50 ~rapertv E3escription and Ana[vsis We summarize the property characteristics of the pazcel as follows. Location: The appraised property is located at the southwest corner of Marathon Road and HEA Accass Road, Kenaz, Alaska. This location is two lots north of Kenai's primary commercial corridor, the Kenai Sp¢r Highway. Property Typet7oning: 2067 Assessed Valuation and R1E T~xes; Three-Year Sale History: Neighborhood: Site Description: Vacant land; zoning is (CG) Generat Commercial Zone Tax ID No: 043-360-44; Assessed value: land- $260,400; RE taxes- $2,864.40. Market evidence suggests the subject is substantially under- There is a pending transaction of the subject property between the City of Kenai {setler} and LOVJE'S HIW, Inc. (buyer) for $1,650,600; cash to seller upon closing. After review, this appears to be an arm's length transacfion. There are no other knov/n sales of the subject properry over the pasY three years. The sixl~}ect pzoperty is lacated at the eastein periphery of Kenai's primary commercial corridor. The -neighborhood is expanding with new hotel and retail developments. Proposed development include a Wal*Mart, Lowe's Audware (subject properly), a new Aspen ExCended Stay Suites is currentiy under construction. Land use in the area primarily commercial along primary arterials wiCh residentiallocated on secondaryroads. The aubject ts a Crapezoicial-shaped Cract containing a 14.78-acres or 643,720 square fee. Topography is level si#e is level and near grade; the parcel is heavily wooded with spzuce trees. Public utiIities available inciude water, sewer, natural gas, electricity, and telephone. It has frontage on Marathon Road (paved secondary road), EiEA Aecess Road (gravel road), and Baran Park Lane, wtuch is glatted, buY not impraved. The plat nzap indicates a 1Q-foot uYility easement along the perimeter Qf the parcal. 07-7613: Lot A, 8aron Park, 2006 Replat $ 51 Em~ironmental Assessment Highest and Best Use: 47-1693: Lof A, Baron Park, 2006 Rep/af Shannon & Wilson, Inc, prepaxed a Phase I Environmentat Site Assessrnent of the snbject in October 20~6. According ta the assessment, a petroleum hydrocarbon odor was noted at a depth of 10- to 12-feet below ground surface, but the soil sample did not contain deYectable concentrations of diesel range organics or aromatic volatile organics. The report concludes that the poLential contarn~uation enconntered is a limited localized release or was the result of cantamination from the drilling or sample transgort activities; no additional investigation is recommended. The value crnaclusian assumes the property is free of environmental and hazardous contaminants. ^vzotechnicai Report Shannon & Wilson, Inc. prepared a Geotechnical Report of the suhject in Novernber 2006. According to the report, soil conditions are six- to 12-inohes of ,organic maC material ovar siIt. Beneath the apper silty/organic layars, there was Ioose to medium dense sand with azeas of silt and gravaL The report indicates that the laose to meclium dense sands beneath the water table aze susceptible to liquefaction under seismic loading. The report further suggest that if considering developing the parcel, that the developer accept the risk of future liquefaction induced, differentia] settlement, or wnsider foundatian design alternatives or do no pxoceed with devetopment. Informafion provided to the appraisers from the Ciry of Kenai indicates addirional site preparation coutd exceed $Z,000,000, or additional foundarion reinforcement of $250,000. 'Fhe parcel is well lacated and benefits from its proximity fo Kenai's commercial core and the Kenai Spur Highway. The only adverse condition affecting the subject is soil stabiliry. Overall, the subjact is suited for commercial development. Commercial 52 MacSwain Assoczates • Suhject Photos (July 23, 2007): Northwest view of subject's southern Southeast view of subjecYs soutltern bocuidary boundarv (subiect on nthtl fsubiect on leftl 07-1613: Lot A, Baron Park, 2006 Replat 7 53 v iew oi sua~ecc aom t~rt Esccess icoaa i~onn ~new or rviaracnon N.oaa rroncage {subject on left) Northwest view of HEA Access Koad frontage (subjsct on laft} Sales Comnarison Apnroaah The transactions tisted below in Tab2e 1 wexe given primary reliance in our comparative analysis. Addirional land sales ware reviewed for comparative purposes, but are reIegated as supportive data, The transacrions analyzed were negotiated on a price per square foot basis. T`herefoze, we use this per unit indicator as a comparative Uase. Details of these transactions are retained on file. Table 1: Summary of Comparable Land Sales ?do Location/Legal 7.~ning Sale SatePrice Size(S~} FricelS I3nte F 1 S side of Kenai Spur f-Twy., just west CG 5/07 $60Q000 93,673 $6.41 of WaIker Lane (Lot 5, Sprucewood (2.15 ac.} Glenn Subd. No. 9) 2 SWC of Kanai Spur Hwy. and S CG 3/07 $175,000 219,107 $0.80 Farest Brive (L~t 53, Sik 1, Redo¢bt (S.Q3 ac.) Terrace Subd.) 3 N side of Kenai Spur Hwy., just E of IL 9/06 $3,5$0,000 1,b65,037 $215 Marathon Road (TracC 1 Baron ~Park (pending} ~ (38f ac.) 2005 Replat 4 NEC o€Kenai Spur Hwy. and Swires CG 4/06 $133,OOfJ 225.640 $0.59 Road, approximately two miles east (5.18 ac.) of Kenai 5 SEC of Main Street Loop and IL 7107 $470,000 214,47$ $2.14 Barnacle Avenue (Lot7A EYOIin ~~'~"g~ (5.05 ac.} 1998 Addition) 6 Intezsection of Stariing Hwy. and C 7/07 $4,490,000 579,345 $7.75 Kenai Spur Hwy. in Soldatna (Tracts pisting) A& E, Muilen Homastead #S} (13.30 ac.) 7 SubjectParcel CG 3/07 ~1,G50,000 643,720 $2.56 (n~~'~~ {14.78 ac. j 07-16i3: LotA, Beron Park, 2006 RepJat 8 54 ~ac5~vain ~ssociates ~and Sales Map Presented below ui Table 2 is a raring grid and analysis of the comparable Iand saIes. Table 2; Comnarable Ratine G`rid Sale ~o. $/5F Cumparafive Analysis Net 1 $6.4T Superiorlocation, siz.e differential, andphysicai cl~aracter {cleared, filled, aaid level lot}; inferior shape (proposed hotel site) 6 $7.75 Saperior locataon (this ]isting is used for znformation purposes onty} 7 (Subject) $2.56 -- -- -- -- 3 $2.15 Inferior size dift'erential (proposed Wal*Mart site) S $2.14 Supexior size differential; inferior locafron {this listing is used t'or inEorn~arion purpoaes only) 2 $0.80 Superior size differential; cleazly infedor location 4 $0.59 Superior size differential; inferior locarion 07-1613: Lof A, Baron Psrk, 200& Replat Adjustme~zt y N/A 'C` N(A T T 9 55 Sefore adjustment, the comparable land sales indicate a wide value range from $0.59 to $6.41 square foot. Land Sale Nos. 2 and 3 aze inferior indicating a value greater than $0.80 per square foot. Comparable Sale No. 1 is the May 2067 sale of a 2.15-acre parcel that is being developed with a new hotel. This sale is clearly superior due to Kanai Spur Highway frontage, size differential, aud site preparation, indicating a substantial downward adjustment. GomparaUle Sale No. 4 is similar in most respects, however, it requires an upward adjustment due to size differential. Land Sale Nos. 5 and G are current listings that are used for information purposas only. Comparable No. 7, the pending snbject sale, is given primary emphasis in our analysis. Other data considered were the four (4) lots located southerly adjacent to the subject. Thesa are smaller 30,000~ lots that are currently listed for $16.50 per sqnare Foot. Due to their smallar size and magnitude af adjustrnents, these comparables are disregarded. After making the necessary adjusTments and considering the subject's location and physical character, a land value range of ~2.50 to $2.60 per squaze foot is estimated, which develops the following. 643,720 SF @ $2.50/SP = $1,G09,300 643,720 SF @ $2.60/SF = $1,673,672 Based on the preceding analysis, it is our opinion that the fee simple market value af the appraised land as of July 23, 2007, is $1,6~O,OdO. 1Vlarkat Value of Sntiject Property f$I,fi50,ODQ Exposure/Marketing Time: One to two yeazs 07-?613: LotA, Baron Park. 2006 Replat 10 56 MacSwsi~ AssocRates Appraiser Certification, The undersigned certifies that to the best of their knowledge and belief: ^ The statements of fact contained in this report are true and correct. ^ The reported analyses, opinions, and conclusions are limited only hy the reported assump6ons and limitil~g conditions, and are our personal, impartial, aud unbiased }~rofessional analyses, opinions, and conclusions. ^ We have no present or prospective interest in the praperry that is the subject of this report, and no personal interest with respect to the parties involved. C1 We have no bias with respect to the property that is tl~e subject of this report or to the parties involved with ihis assi~nment. ^ Our engagemant in this assignment was not conHngent upon developing or repoirting predeTermined results. ^ Our compensation for completing this assignxnent is not contingent upon the development or reporting of a predetermined value or direction in value that favors the cause of Ehe client, tdie amount of the valne opinion, the attainment of a stipulated result, or ihe oceurrence af a subsequent event directly related to Yhe intended use of Chis appraisaI. ^ To the best of our knowledge and beIief, the reported analyses, opinions and conclixsions were developed, and this repart has been prepared, in conformity with the requirements of ' the Code of Professional EYhics and the Standards of Professionat Appraisal Practice of the Appraisal Institute. ^ The use of this report is subject to the requirements of ihe Appraisal Institute retating to review by its duty autharized xepresentatives. ^ Trevor Lund of MacS~vain Associatesinspected the appraised property on Juky 23, 2007. Steve MacSwain is familiu with the property from previous assignments. ^ Trevor Lund provided significant real praperiy appraisal assistance to tt~e persons signing this cerfi~ication. ^ As of Che date of tfiis report, Steve MaaSwain, MAI; has compTeted t~e courinuing education pmgram of the Appraisal Institute. Steve MacSwain, No. 42 is a certified General Real Estate Appraisers in the State of Alaska. ^ The appraisal assignmant was not based on a requested minimum valuafron, a specific valuation, or the approval of a loan; and the appraisers are competent and qualified to perforn7 this appraisal. Steva MacSwain, MAI Date 3tate of Alaska Certificate No. 42 07-7673: Lot A, Baron Park, 2006 Reptat ir 57 Assurv€ptians and Limifinc~ Conditions Q This is a Restric~ed lise appraisal report Yhat compIies with the requirerrsenfs set forth nnder Staiidard Rule 2-2(c) of USPAP. Discussions and supporting documentation pertaining to the data, reasoning, and analyses used io develop an opinion of value are retained on fite. The information contained in this report addresses the specific needs of the ciient; and the appraiser is not responsibla far unauthorized use of this report. ^ No responsibility is assumed for the legal descnp6on provided or for matters pertaining to legal or title considerations. Title to the properiy is assumed marketable unless otherwise stated. ^ The property is appraised free and clear of all liens or encumbrances unless otherwise stated. ^ The information furnished by others is believed to be reliable, but we do not guarantee its accuracy. ^ All maps, land use plans, and aYher illnstrative matarial are believed to be accurate, but are inclufled only to help the reader visualize the property. ^ It is assumed there are no hidden or unapparent conditions of the property, subsoil, or structures that render it more or less valuable. No responsibility is assumed for such conditions or for obtaining the engineering studies that may be required to discover thern. ^ It is assumed the appraised property is in fufl complrance with all appticable federal, stata, and local environmental regulations and laws unless the lack of compliance is stated, described, and considered in the appraisal report. ^ It is assumed the appraised properry conforms to al1 applicable zoning, land use regulations, and platting restrictions unless the nonconfoimity is identified, described, and considered in the appraisal report. 0 It is assumed that ihe use of the land and improvemants is within the property boundazies and tl~at there is no encroachxnent or trespass unless nated in the report. ^ The appraisers are not required to ~ive cansuttation, tesrimony, or to attend court proceeding pertaining to the appraised property without prior arrangements. ^ Neither all nor any part of tha contents of tlais report shall be disseminated to the public through advertising, public relations, news, sates; or other media without the prior written consent and approval of the appraisers. The appra9sers are not aware of any hazardous materials or other type af environrnen2al contamination on the appraised properiy ather than discussed in fhis report. The value conclusion assumes the properiy is free of environrnantal and hazardous contaminants. 07-1693: Lof A, Ssron Park, 2606 Reptat iz 58 Appraiser (3uaFi~catio~s - Trevar Lund Appraiser Trevor Lund Real estats appraiser of all property types throughout Aiaska including commercial, industrial, residential, subdivisions and special parpose. Appraisal se~vices have been performed for a variery of purposes incIuding financing, leasing, investnient, anfl buy-sell decisions. Professionat 1993 to Present MacSwain Associates - Staff Appraiser Experience Educafion Bachelor of Bnsiness Administration in Finanee (199'1), University of Alaska, Anchorage Snccessfully completed the following appraisal coursas/seminars. Appraisal Educa6on 2Qa6 - Business Prac#ice and Ethics by the Appraisal Institute in Seattle, Washington 2046 - USPAP 15-Hour National Course by the Appraisal Institute in Anchorage, Alaska 2002 - Land Valuation and Assignments Workshop by the Appraisal Tiistitute in Anchorage, Alaska 20Q2 - Highest and Best Use and ~iarket Analysis by the Appraisal Instiiuta in San Diega, California 2002 - Advanced Sales Comparison and Cost Approaches hy 4he Appraisal Institute in San Diego, CaIifornia 2000 - Sasio Capitaliza4ion by the Appraisal Institute in 8eattle, Washington 2000 -'USPAP (Parf G) by the Appraisal Institute in Ancharage, Alaska 1996 - Dynamics of OFfice $uiiding VaIuation by the Appraisal Institute in Anchorage, Alaska 1996 - Appraisal of Retail Properties by the Appraisal Institute in Anchorage, Alaska 1994 - Appraisal Princ9ples at the Unzversity of Colorado Boulder, Boulder, Colorado 59 s Appraiser Qualifications - Steve MacSwain Appraiser Steve TvlacSwain, ivlAl Memher of Appraisal Institute - No. 5700 State of Alaska, Certified General Real Estate Appraiser - No. 42 Chaircnan of the State Boacd of Certified Appraisers Rea1 estate appraiser and consultant of all property types throughout Alaska. Appraisal and consulring services have been performed for a variety of putposes including financing, leasing, insurance, condemnation, taYation, buy-sell decisions and property damages. Considerable appraisal experieiice in analyzing and valning remote land and environmentally impaired properties. Special cansulting expertise in litigation support. Professional e~perience totals 37 years. Professianal ~gg6 to Preseni MacSwain Associates-Owner Esperience 1975 - 1986 Appraisal Company of Alaska-President 19'10 - 1975 Real Estate Services Corporarion- Appraiser 1969 - 1470 State of Alaska Department of Highways-Right of w'ay Agent Education Bacheior of Business Administration (1969), University of Alaska, Fairbanks Appraisal Education 2Q05 - Unifarm Sfandards of Prafessianai Appraisal Practice 2002 - Uniform Standards for Federal Land Acquisitions: Pracflcal Applications for Fee Appraisers by the Appraisal Institute 2002 - Legal Aspects of Easements by the Intemational Right af u'ay Associarioa 2602 - Land Titles by the IntemationaI Right of Way Association 2001 -Partial Interest Valuation Undivided by the Appraisal Insritute 60 MacSw~;ta ~st~~~~t~~; . ~z ~ ~.,~. ..~..~~~ . 2401- Partiat Interest V aluation Divided by the Appraisal Institute 1999 - Valualion of Contaminated Properties by the InteL~national Right of Wap Association 1999 - Enunent I?omain and Condemnatian Appraising by the Appraisal Institute 1999 - Valaation of Detrimental Conditions in Rea1 Estate hv the Appraisal InstiYUte 1999 - Special-Purpose Praperties by the Apprdisal Insritute t49'7 - Exterual Influences on Rea1 Eetate Va1ue by the Appraisal Insritute 1997 - Pulalic Interest Vatue: The Debate by the Appraisal Institute i 996 - Statrdnrus of Frofessional Pracfiee by the Appraisai institute 1996 - Dynamics of Office Building Valuation by the Appraisal Institute 1496 - Appraisai af Retail Properties by the Appraisal Institute I995 - Appraisal Pracfices for Lifigation by the Appraisal Instituta 1995 - The Appraiser as Expert WiYneas by the Appraisal InstituYe Professional Member of NationaI Experience Reviaw Coccunittee of the t~ppraisa] Organizations Institute Member of the Regional Ethics and Counseling Panel of the Appraisal Institute wlember of the Intemational Right of Way Association, Sourdough Chapter 49 President of Alaska Chapter 57 of the Appraisal Institute Community Service Board of Equalization, Municipality of Ancharage Appraisal Projects of Principal real estate cansultant and experf vritness for all lands affected SigniScance by the Exxon 1~aldez oil spill. Projacf involved over 2;000;000 acres of remote land and nearly 2,000 private property owners. 61 Appointed as a represantative of a three-member panel that analyzed and valued over 2,00~,040 acres and 8,000 parcels for the Mental IIealth Lands Settlement. Contract assessor for the North Siope Borough, Kodiak Tsland Borough, City of Nome, and the City of Valdez. Represented Seibu Alaska,I~ia (Alyeska Resort and Alyeska Prince Hotel) in preparing of their properry tax appeai with tha MunicipaIity of Anchorage that resulted in a$65 mi2lion reducrion in assessed value. Appraised 37 properties affected by the Business Boulevard Road Improvement ProjecY located in Eagle River, Alaska that estimated the market value of the property rights acquired. The right-of-way project involved fee sirnple cakings, public access easements, and temporary construction permits. Appraised submezged tideland parcels and wetlands parcels located in Womens Bay on Kodiak Island for the purpose af an exchange between Koniag, Inc. and U.S. Pish and Wildlife Service Appraised Comrnon Carrier Pipeline right-of-ways leased and operated by BP Transportation Alaska and ConocoPl~illips Alaska. Appraised Nikiski P'tpeline right-of-way operated by Tesoro that extends from the Tesoro Refinery in Nikiski to Anohorage Intemationai Airport. Appraised K.T{PL natural gas pipeline right-of- way operated by NORSTAR Pipeline C.ompany right-of-way that extends from Soldotna to Ninitchik. Appraised 27 paccels o£ land totalin~; 3,600 acres consisting of the former Adak Naval Air 5tation and Submarine Base conveyed to the City of Adak and the State of Alaska. Land parcels inoluded marine industriai, commercial, residenGal, utility infrastructure, road right-of- ways and conservation easement. Expert WiMess Steve MacSwain is quali&ed as an expert wimess in both the United Experience States Federal Court and the State of AIaska Superior Court. He has testified as an expert witness in State and Federal courts. In addition, ha has testifed as expert witness in numerous Alaskan municipal tax 62 courts, pubiic hearings, and depositions on matters related to real property. Arbitrator Appointed a Mas[er by the Superior Court of Alaska and Municipality Experience of Anchornge to serve as an azbitrator in deternuning just: compensation. 63 SUBSTITUTE Suggested by: City Manager CITY C8F KENAI ORDINliNCE NO. 2249-20d9 AN ORDIlQANCE OF THE COUNCIL OF THE CITY OF ItiENAI, ALASKA, AMENDING ORDINANCE NL7MBER 2194-2006 BY AMENDING THE PURCHASE AGREENtE?VT AUfiHORIZTNG THE SALE OF APPROXIMATELY 14.784 ACRES OF LAND DESCRIBED AS LOT A, BARON PARK SUBDIVISION, 2006 REPLAT Td LO~E'S HQIvIE IMPROVEMENT WAREHOCISE, INC. {LOWE'S) BY ADDINC~ A"PUT RTGHT" FOR ONE YEAR AFTER THE CLOSE OF THE SALE WHEREBY AT LOUJ~'S OPTION THE CITY OF KENAI WOULD REPURCHASE THE PROPERTY FOR THE PURCHASE PRICE BY LOWE'S MINUS ANY REAL ESTATE COMMISSION PAID BY THE CITY OF KENAI. WHEREAS, c~~hen it is found that encouragement o£ a new commercial enterprise would be beneficial to the Citq of Kenai, KMC ~1.15.1'70 ailows fhe sale of City land to be authoriaed by ordinance upon such terms as to price, conditions of conveyance and other conditians of saie as may be set forth in the ordinance; and, WHEREAS, on November 1, 2006 the Council enacted Ordinance No. 2194-2006 that authorized the terms a~1d conditions for the sale of property described as Lot A, Baran Park Subdivision; 2606 Replat consisting of approximately 14.784 acres to Lowe's for $1,650,000 for the canstruction of a home improvement warehouse; and, WHEREAS, because of uncertainties in the eosts of construcfion Lowe's has requested a"Put" Right for a period of one year from the date of closing whereby at Lowe's option the City of Kenai would repurchase the property from Lowe's for ehe sale price paid by Lowe's minus any real estate commissian paid by the City on the original sale of the praperty; and, WHEREAS, should Lowe's exercise the Put Right, any mone~~ or income earned on the purchase money while in the Airport Land Sale Permanent b`und sha11 be retained by the airport. NOU~7, THEREFORE, BE IT ORDATNED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, that Ordinance Number 22942006 is amended to authorize the Purchase and Sale Agreement include the Fifth Amendxneni to Purchase and Sale Agreement as shoum on Attachment "A." PASSED BY THE COUNCIL OF THE CI7'1' OF KENAI, ALASKA, this 15th day of August; 2007. PAT PORTER, NIAYQR 64 Substitute Ordinance 'Vo. 2249-2067 Page 2 of 2 ATTEST: Carai L. Freas, City Clerk InTroduced: August 1, 2007 Adopted: August 15, 2007 Effective: September 15, 2607 65 FTFTTi AMENDNLENT'I'O PURCIiASE AND SAT.E AGREEMENT THTS FIFTF3 AMENDMEIv'T TO PURCIiASE AND SALE AGREEMENT (this "Agreement') is enterad into as of tius _ day of , 2007, by and between THE CITY OF KENAi; ("Seller" a horne-rule municipal corporation of Alaska ("Seller"}, and LOWE'S FITW, ING, a Washington corporafion ("Buyer") (referred to in this Agreement individnalty as a"Party" and collectively as the "Parties"). REC1T'ALS WHEREAS, the Sei3er and Buyer aze parties to that a certain Purchase and Sale Agraement dated December 1, 2006 (the "Purchase AgreemenY') with respect to certain real property located in the City of Kenai, Alaska; WHEREAS, Seller and Bnyer entered into a First Amendmeni to Purchase Agreement dated as of February I 5, 200~ whereby ce: Eain deadlines set forth in the Purchase Agreement were extended; WT-IEREAS, Seiler and Buyer entereci into a Second Amendment to Purchase Agreement dated as of April 2, 2007 whereby certain deadlines set forth in the Pvrchase Agreement ware extended; WHEREAS, Seller and Buyer entered into a`Fhixd Amendment to Purakase Agreement as of June 28, 2007 whereby certain deadlines set forth in fihe Purchase Agreement were extended; and WHEREAS, Se11er and Buyer entered into a Fourkh lunendment to Purchase Agreement as of , 2007, whereby certain deadiines set forth in the Purchasa Agree~nent were extended; and WHEREAS; the Partias desire to amend the Purchase Agreement to provide for a "Put" right; and 2dQW THEREFORE, for goad and valuable consideration; tne receipt and sufficiency ofwhich are hereby aclrnowledged, Buyer and Seller agree as follovrs: "Put" Rieht. I€ Buyer elecis to close this transaction, then, on or befare one (1) year afier the Closing, Buyex may elect, in its soFe discretion, to give a written notice to Seller (the "Put Nofice") of Buyer's eleetion to cause Seller to repurchase the Progerty by paying to Buyer a payment eqna7 to the Purchase Price minus any real estate sales fee or commission paid by the Seller under Paragraph 12.1 of the Purchase and Sate Agreement (the "PuY'). In the event Buyer elects to exercise fhe Put, the repurchase transaction shall close within ninety (90) days of fhe Put Noiice, and be conducted in the same manner set r"orth in the Section : LS of the Purchase Agreement. The Put shall automatically terminate in the ~~~ 7952363 Anoc t nFR ATTEIGHMEPIT ~~q,~ Lowe's Kenai Peninsv]s: City of Kenai Parcet July 7 ], 206? 66 event Buyer does not provide Seller with notice within the requisite time reqnirements of its intention to exercise the Put, The provision of this Section 1 shall susvive Closing. This Agreement shaii not be : ecorded; however a"Memo: andum of Put Right shaIl be recorded against the Property at Closing in the form and contents set forth as ~xhibit "A" hereto. 2. Land Sale Proceeds. Proceeds from the sale of this property shall be deposited in the A'rrpart Land Sale Permanent Fund (the "Fund") according to KMC 7.30.010 and invested in government securities accorcling to the criteria set forth in KMC ZZ2.030 and shall remain in the Fund untiI Buyer either exercises or waives the Put Ri~ht set forth herein. Should the Put Right be exercised, tha repurchase price as setforth in Paragraph i of tfiis amendment will be pazd out of the Fund. Any interest or income earned nom the Purchase Price maney while in the Fund is and shall remain property of fhe City of Kenai. 3. Miscelianeous. a. Confirmation oi Purchase A~reement. The Parties hereby affirm and agree to be bound by all of tha terms of the Purchase Agreement, as amended hereby. b. Non-Tmpairment. Bxcept as expressly provided herein, nothing in this Agreement shail alter or affect any proviso, condifion, or covenanT contained in the Puxchase Agreemeni or affect or impair any rights, powers, or remedies of the Parties thereunder, it being the intent of the Parties that, e~ccept as amended hereby, a11 of the terms, covenants and eonditions of the Purchasa Agreement shall remain in full force and effect. c. Entire Aareemenf. This Agreement constitutes the entira agreemenf with respect to the subject mattes hereof. d. Govarnin~ Law. This Agreement shall be govemed by and constn;ed in aceordance with the laws of the State of Alaska. e. Counterp_arts. This Agreement may be executed in any number of countetparts, each of which shall be dee~ned an original and al] oi whioh together shall consfitute one and the same instrument. £ Facsimile Tzansmissions. This Agreement shall be effective upon confirmation of receipt of facsimile transmission. g. Attomev's Pees. Tn the event a party commences legal proceedings to enforce any terms of tlus Agreement, the prevailing 795236.3 Lowe's Kmai Pe~insula: City of Kmai Parcel ~ Page 2 af 7 JWy 7I, 2067 67 Party shall have the right to recover reasonable attorney's fees and costs from the other Party, including reasonable artomey's fees and costs on appeal; to ba fixed by the caurt in the sarne acrion. TN WTTNESS HEREOF, the Parties have executed this Agreement as of the first date written above. SELLER: CITY QF REIvAT, ALASKA a home-rule municipal corporation of Alaska By: Name: Tide: BUYER: LOWE'S: i,owe's HTW, Tnc., a Washington corparation By: Name: Title; Lowe's Kenai Penmsula: City oFKenei Parcet Page 3 of 7 ~ Iuty 31, 2009 79523G.3 68 `1 U NOT T3INDING UNTIL TXECUTED $Y ALL PARTIES ~XHTBIT A Forn~ of Memorandum of Agreement Recording Requested Bq And V/l~en Recorded, Return To: Paul M. Harman Jones Waldo T-Iolbrook & MeDonough 170 South Main 3treeC, Suite I500 Salt Lake City~ UT 8A 101-1644 ~PMORANDUM OI' AGR~~MENT TI-IIS MEMORANDUM OF ACrREEMENT (flus "Memorandwn") is made and entered info as Qf the day of , 200~, by u1d 'between THE CITY QF KENAI, ALASKA, a house-rule municipal corporation of Alaska ("Seller"), and LOW~'S HIW, INC., a Wasl~ington corporation, (`Buyer"} (individually, a"Party" and ct~llectively, the "Pariies"}. WHEREAS, Buyer and Seller have entered ii~to that certain Ptuchase aiid Saie Agreement of even daYe herewith (tI~e "Agreement"); WFI~REAS, the Agreement pertains eo the "Sub,jecc Pxoperty" IooaCed zn the City Kenai, ICenai Feninsula Borough; AlasIca and more partieularly deseribed on Schedule I attached hereto; and ~ WFIEREAS, the Agreement ~rovides far notice of iis terms to be recorded against the Sub,}ecc Property in the official recards of Kenai Peninsula Barough, Alaska; NOW, TH~REFORE, the I'arlies heceby give noeiee as foll~ws: SecY'ron 1 i of the Agreement provides to Seller certain rights to repuxohase the SuUject Property, on terms and conditions more fully set forth in the Agreemeixt. The righC to repurchase the Subject Property sha11 terminaYe on tIze @ate three (3} years and onc (1) day after the date on which Buyer acqiures fee title to the Subjecti Property unless the ConzpleTion Date has been extended pursuant to Seetion 11.1 of the Pw-chase aiad Sa1e Agraement. Any extensioi~ ot~ the completion date under Section 11.1 sl~all add the equivalent an2ount of time fo the Tern2ination Date af the Righf of Repucchase. Upoz~ expisation of'~ the tennination date, Seller will reeord at Buy~r's request an appropriet~ docament acknc~wtedgiiig teimination of the Right oF Ke}aurchase. Pnoe I of4 I,.owe's Kc~ai Peninpula: Ctty oi"Kena~i Parcei Au~usf8.2007 69 NOT BINDIIvG Ul~TTIL EXECUTED BY ALL PAR"ITES 2. Section I of the Fifth Amendment of The Purchase and Sale Agreement pcovides to fhe T3uper cerYa;n ri~hts ("PuP' Right} ~~hereby the Buyer may elect Yo have the Selier repurchase the property, on terms uid aonditions more ftrl]}r seT fc~i~fh in the amendment. The Put Right shall ternzinate one year after fhe Clasiug Date on the property. The Puf Ri.ght shail antamatically terminat~ in the event the Buyer does not exercise the Put Ri~ht. Upon expiration of the Put RighY, T3uyer will reeord at S~:ller's expense an appropridte documenT acknowiedging tenninatian of the Pnt Right. Pxge 2 of 4 Lowe's Kenai Peninsula: CiCy of Kcnai Parcel Angust R, 2007 70 NOT BP~dDIN'G UNTIL ~~ECUTE'D BY ALL PARTtES S'sgnature Page for Seller: IN WI`1°NESS W~IEREOF, ths parties lzereYo have executed th,is Agreeinent under seal as of the date first above written. SELLER: CITY OF ILENAI, /~LASKA A home-xule mutuc'spaf corparaYion of Ataslca Bv: Nune: Title; STATE OF BOROUGH OF } j ss. ) ON TI-IIS day ofi , 200 , before me, flie undersi~zed, a Notary Public in and for said Borough and State, persoz~ally appeared , to me parsanally kn~wn to be the person described in and v/ho executed tha foreg~~ing instrument, who, ueit2g by me first sworn, stated that helshe is the ~ ~ of~ . a ~ , and that helshe exeeuted such instrument on behalz of said cozporation by aatharity of iEs board oPdireetors, and said person acknowledged to m~ lhat he/she executed sueli insirument as the act and deed of saad coiporation. IN WITNESS ~~jH~P~E)F, I]zave heretulto set my hand and affixed my officia] seal the day and year last abova written. Notary Public Peinted Name: My Commission Expires: PE~pe 3 of 4 Lowe's Kenai Penicvuta: CiCy ofi Kanai Parcel Aupust $ 20J7 71 NOT BINDING U\TTIL BX~CLTED BY ALL PARTI~S Si~nature Page for BuyeP: LOWG'S: LoiWe's HIW, I,nc., A Washingtoi~ cotporation By: STA'I'E OF COU1vTY OF } } ss. ) Name: Titte: ON THIS day of , 200 , be~Eore me, the undersibned, a Notary Public in and for said County and State, personally appeared , to me personally la~own to be the person described in aud who executcd the foregoing znstruinent, who,'being by me first swor~, stated fhat he/she is the of LOWE'S I~TW, INC., a Wasbiugton corporation, and that hefshe executed such insenzment on bel~alf of said eorporation by authority of its board of direetors, and said peison aclrnowledged to me that helshe executed such instrument as the act and deed of said corporation. Siv' WITN~SS WFI~F2EOF, I have hereunto set my hand and affixed my of:ficial seal the day and ,year tast above written. Notazy Public Printed Name: My Commission Eapires: Pegc 4 of4 l,.owc°s Kenai Peaiins'atn' City afKenei I'arcel August R.2(i(19 72 SCHEDULEI Legal Description LOT A, BAR4N PARK, 2006 REPLAT, ACCORDING TO TF-IE OFFICIAL PLAT TT-IEREOF, FILED LTNDER PLA`1' NUA~BER 2006-25, RECORDB OF I{ENAI 1ZECORDII3G DISTRICT, THIRD NDICTAL DTSTRIGT, STATE OF ALASKA TAX PARCEL NUMBER: 043-360-44 Lowe's Kenai Peninsula: CiTy of Kenai Paccet Page 7 of 7 3uty 3 L, 2007 795236.3 73 orV tt~~~ Wl~'~ !~ ~G~S~ ~l~/ ~Jl~~ ~ ~f~£~'fi~d"~rP 210 Fidalgo Avenue, Kenai; Alaska 9961 i-7794 Telephone: (907) 283-7535 / Fax: (9077 283-3014 www.ci.kenai.ak.us ~~'r~~ l~ ~ lJ 1W1 TO: Mayor Porter and Yhe Kenai City Council FROM: C{~ Cary R, Graves, City Attc~rney DATE: Auguse 9, 2007 RP,: Changes in 5nbstitute Ordinance 2249-2007 This memorandum is to sat out the changes in tbe amendmenT to Che Purchase aud Sale Agreement in Substitute Ordinance 2249-2007. After Ordina~lce 2249-2007 was introduced, the Lowe's corporate af~ce in Nortll Carolina requested some changes in the amendnient to the purchase aud sale agreemexlt. The adnzinisG~ation does not believe tl~e F~equcstcd chaalges make any substantive changes in the proposed amendment. The chanbes are shown in le~islative format i~ the attachment to this memorandum. The fixst chan~e is that fhe amendment is re'fcn~ed to as the rifdi Aniendment ratller than the FoutKh. There have been three earlier amendments. They all exCended the Governmental Approval Period. 1'hey esseutially extended the deadline i'`or closing. ParagrapC~ ~ of the original agreement providad a mechanism for those extensious to be done. The third extensioi~ moved the deadline ta Augast 3Q, 2067. If this ordinance passes, 'tt will l~e effective on September 15. 'I'haY means a f'aurth extei~sion of the Governmental Approval P~riod will be naeded before Augusf 30, 2007 . Because of that we decided fo refer to the next extension as the fourth and change 2he a~~ieniiment adding the "Put Right" in Qrdinance 2249-2007 to the fifth. Ivlost of the other changes are slylisCie ehangee requestec3 by the Lowe's corparate oFtice. Sinee they did noC affect The subsfance of the agreemeue, we did not object to Chc changes. Para~n~aph 2 of the Fifti; Amendment deals with how Che land sate proceec~s are to be deposited in the Aitport Land Salc `I'rust ~und under h:MC 7.30.01Q. Lowe's corporate office wanted langua~e thaf the proceeds of the sale wouid remain in tlie fund until the put right was used or expired (i.e. one year). Since the code already requixes the proeeeds to remain in the fiuid and ouly ailows tha eity to spend the interest reaenue, the administration did uot objzef to Chat request. See KNEC 7.30.010(c). This change was the dx•iviszg force bel~ind the s~~bstituee ord'anance. 74 It shouid be noted that neither Che originat ox substitute oxdinance ait~rs the original purchasa price o'f $1,650,000. That is because the adminish'ation feels the reeent appraisal by McSwain and Associates pl~cing the value of che land at $1;650~000 is the most accurate valuation of the propert}~. If the Council wishes to increa~e the purchase pi•ice fo reflecC tlie June 5, 2Q07 appraisal of $ l,$00,000 by Derry and Associates a change to the Fifth Amendment Yo Purchasc and Sa1e A~reeinent would be needed. Piease let me kno~% if you have any qaestions regazding Ordinance 2249-2007 or die subsritute. 75 ~~~:~~:?8~=~'~~~'~&X~ r4VIENDMEl~iT TO PTJRCHASE ANi) SALE AGR~ENI~NT THIS :~3t:tx~ ~=1 ~:1..~ I~'T'I3 AMENDMENT TO PURCHASE AND SALE AGREEMFNT' (Chis "Agreenzent') is entered into as of_ ~ c3av of , 2007, by and Uetv/eeu THE CITY OF K~NAI, ("Seller" a home-rule inunicipal carparatiQn of Alaska ("SeLler"), and LOVJE'S HIW, INC, a Washingtou coiporation ("Buyer") (re£ened to ii~ this A~z~ement indivifluaIly as a"Party" aild collecYively as tl~e "Parties"). RECITALS ~1~HEREAS, Che Seller and Buyer are parties to that a certaan Purchase a.~ci_5a.l.e Ag~eement dazed December 1, 2006 (the "f'urehase Agreeinent") with respeet to certain real praperty ]ocated in the City Qf Kenai, A2aska; a~sc~ WHEREAS, Seller and Buyer entered iuto a Pirsf Amendment to Purchase AgreemenC-dated as of Fe6ruary 15, 200? (ti~-"I~~:~'E-a~'r~c~s~c~e~a~x'=)-whereby certain deadlines set forth in the Y~;~~=~~~~,~~ux~chase_Ae~~eement were extended; ea~~er \~IHEREAS, Seller and Bnyer entered into a Second Amend~nent to Pw~ch~e Agreement dated as of April 2, 2007 ~~=~a~-` ;-~~~E~~ :~a~9r~cnrrtie~h="--whereby eertain deadIines set forth in the ;~ va~c~r,~uPurcia~se_~4~recmer~t were extended; ~ WHEREAS, Seller and Buyer entered into a Third Arnendinent to Purchase Agreement as oPJune 28, 2007 whereUycertain deadlines set £ortl~ iv tfle Ptiirchase:+~~~,~~ ~~Sa.dffi-Au~-eement were extended; and WHEREAS, t-Ec~ -i~ri-i~^~,Sei~er,a~d Bc~y~r ent~red mt~ a~~c~t~rth+t meX~dment,tS~ ____=4y_HEft~,A~ ,t.he...Paa~CiesS desire to amend ttle Purchase Agreement to provide for a --- -- - --=J-S-- "Put"~ right; and ~ NOV/ THEP.~FORE, for good and valuable consideration; tbe receipt and sufficiency of which are hereby acknowledged, Buyer and Seller agree as follows: "R~t" Ri~ht. If Buyer elects to ciose this transactian, then, on or before one ~,~,yearafter the Closing, Buyer may elect; in its sole discretion, to ~iva a written notice to Sellet (the "Put Notice") of Buyer's election 10 cause Seiler to repurcha~e the Property by paying eo Buyer a paymenf equal to the Purchase Price minus any xoal estate sales fee or comixiission paid by the Seller under Paragraph 12.1 of Y~ie Purehase and Sale Agreemene (tlae "Put"). In the evenC Buyer elecYs to exercise the Put, the re _urn chase hansaction shail close within ninety (90) days of the Put r~~~riet~~~l~, and be conducted in the s~n7e_.manner set #+~~=forth in the Section 1 LS of the Puichase ar~£~a~-Agreeii~ent. The Put shall :'}g,;,;~;g,->. Lawe's i:enui Peninwla: Ciry of Kenzi Parcel ..... Pa~e 1 oPll£~ July 3l, 2607 76 autamafical3y terminate in the event 4~ie-Buyer does not provide Seller with tt.-~~,~- natice withzn_ti~e~c~c it~,5zte ti~z~s,_requuc~11,~~?ts of its intention to exercise the Put. The provision o€ this Section 1_shall survive Ctosing. This Agreement shall not be recorded; however a f~a+e~x~~~€~,frt;iira-<;f=E~~E.:~~r~~ ~~ rr't-~=r~(-ca~xti~=~,-~-~3~°`Ivtemorandum of,Put Rig~at shall be recorded against the Praperty at Closing in the fonn and contents set forth as Exhibit "A" I~ereto. 2. Lai~d Sale Proceeds. Proceeds from the sale of this property shall be deposited in tIie Aixport Laiid Sale Permanent Fund (the `;Fund_'} according to KMC 7.30.010 and invested in governrnent secm~ities according to the criteria set forth in KMC ;=,3~:Ef~rit--2_,?,2,~030_a~id ~h=a1.1.,Ye???a~~_%n~11~ Fl#r~cl.uzlGi.J_S~,UY~r e~~h~r ex~icis.,~,.9x Walvec t,hc. PuY ~i~yi~t ~ee fc~x~tti_her~i~,`Shouid the Put Right be exercised, the repurchase priee as set forth in Paragraph 1 of this amendment will be paid out of flze Fund. Any interest or income eamed from the ~,~2;=~~t~€s ~~.ssc---~~.xc_hase 1'ri;;e mcr.ey white :n the Fun~ is and s',~z'.I remain property of the City af Kenai. 3. Miscellaneous. a. Confirmarion of Purchase Agreement. The Parties hereUy affirm arzd agree to be Uound by all of the tenns of the Fuxchase Agreen7ent, as amended hereby. b. Non-Impairment. Except as expressly provided herein, nothing in this Agreement shall alter or affect any proviso, condition, or eovenant contained in the Purehase Agreement or affeet. or impair any rights, powers, or remedies of the Parties thereunder, it being the intent of the Parties diat, axcept as amended hereby, all of the terms, covenants and conditioivs of the Purchase Agxeement shall re~iain in ful] force and effeot. a Eiifire A2reement. This Agreement constituYes the entire ag~eement with respect to the subject mafter hereof. d. Governin~ Law. This Agreement shall be govemed Uy and construed zn accordance with the Taws of the StaCe of Alaska. e. Cauntetparts. This Agreeinent may be executed in ai~y number of counterparts, each of wlvch shall be deemed an ongiiial and ali of whieii tagether shall constitute one and the same instrumeut. '74§.;(n?:,a. Lowe's Kenai Peninsula: City of Kenai 1'aroei Page 2 of ~j{ inty 31, 2007 77 f. Facsimile Trazismissions. This Agreement shafl be effective upon confirmation of receipt af faesimila tra~ismission. g. Attomey's Fees. In the event a party commences legai proceedings to enforce any ternis of this Agreemant, the prevaiting Party sliall have the right to racover reasonable attorney's fees and costs from the other Party, including reasonable attomey's fees and costs on appeal, to he fixed by the caurt in the same action. _.___.,__..---..--- ~~-,~t~!_I~~iF~~S~~~?ES~~', the Parties haveV~~e~~aie~ this A~~~eeinent a4 pt the first date ti~n-itten aMove. S~iLL}_JR_ _..__ CITY OF KE~'_A~,_{4I~S.IiA ~_~j4ltac ruie mumcn~al r~.~tzataat~,, of _ ... ,... __. Al.~~~C~ _-._~ -,_ _. ........._ ~ __. -.._ _.. _ ~.._._ _...__.-- ~~------ _._ _.__>_- --- .---= ~_. Nanie ...._.. ._,._,_.._. .._~_~_---- ___.` __,._._'~.ttle; ~.LJ;4.'I;_3,Z;__ LOt~~F'S: : _.. _ , _.. - ,- _ L4~5 e ~ II1W , I~3c,, - ~ a Was~~~ton corp~ratjor~ T3v_....:_ , , __.. . _.~-.-, -:-_.... . _... _._- ~ .. Nzmc:. -~.__.._._...:.:...-- -- __ _.~G :. :---- _..___.__._.--_._.---,-----_._.,._..__._......,_,___._.,..._._.__._.__~_----_`~tle:. ~/A~Nvi{J)~•.v, iowe's Kenai Pcninsuln: CiCy of Kcnui Pareel Page 3 of?i.$ luly 31, 2GU7 78 S i ~iature_P~~c~~r,.~3~a~~er; €~ t:'~-l`-~~~ : LOWfi'S: Lowe's ffiW, Inc., a Washington corporatioiz By: Name: Title: STATT OF --------~_,::.~:~` _,__.~. ,_.. ~:_. _ .:,,._: _-_._.:.._ _._.=._{..,:SS;, ~ 4~1~`?_.~' OI~_ _ . _ ----__~ -- ....,.._, ----.... ...----__ t~.>...me psxsusaltY kn~~_St!,'a.~ ti~e~~-san desc.r~be~_in and wlia e~ecut: s311~e fore~oif~g rttstn~sneut wlzo. tien~g, ~ne ~~~drt~~~!oEn ~~ted C az ,}~~,Igl7c, is tl?c._ ------ --- pf.-S O1WF.~` E~,IW.,._INC. 2'Washin~+tg~ 4-'___,_ i,c)r~Uration anc4_ th~tY h~~she, ~ee_uted ;,uch ~nstivmeni qr~„ beizarf p,f,;sa7d e~r~qrat~P7a~:~?y_ authurity_of iis b~~~rd ot'_directpr5,. _anci~5ai~t~,SAp_ack~7au?I~~i~~~_~g m_e t[~at helsl;~c ex~,cuted buch instrrtn?ent as_the ae~nd d~~~ nf' a~d~omoralipi~. _,_,Ih_tVIT~C~"~ ~uFf~,fZ~(~r~ I li~v~ hz~4u:ilta set,my_h~~d,a,nc~_ affihe<i m~ offi~~at s~,<ti the dav~, and y~ar l~st.~~~ve v~~~tten,, _--._...,.. ---__._~_ _-_h91a1v Pi~bli4.--.,------..._-._ ------......----------- _. _..--~-- _ : _. ,___ i'nilted N ame:. ~ConXlnl~~i43? Ei~~ires: ??~:`s:++};~ Lowe's LCe~iai Pcninsula: Ciry ~f Kenai Pazoel Page b of 4~~ July 31, 3007 79 SG[_t_.~:ptJL~ i; Lenal I3es~riz~tigr~ r c? r~~~~~;~~ ~_A~~.K,~ 2t~ct~ ~?rn~T,~~,c~2zp~r~er.'ro Tfr~ c~HrICFaL„i~~,aT ~'fik [tl~nF., F~~~8__L"VL~~R_t?Gt~ ~ NU,M7~b12 2flUf ~5 I,LL;~'(7RDS,~?l KfiNAl' RC CC7RL~,2'~,G ~I)ISTRICT T'IIIRL? N~ICLAL DISTPIC~'_~`It1TE Or ALA~I~,A TAX PARCBL N`C?ME~R: ~43-360-44 JA~4~34Y~~,? Lowe's Kenxi Feniuaule: City oFKooei Parcel Pa~e 7 af A$ Xu4y 31, ?007 8~ SC I TF:I7l~TL.~: I I,"~al i)~scrig1~4~1 [ U1 A BAI;O~? f'r?itK, 20QC,Rl YLfl:I, AC C().ItUtlv<1 t'O I ITE n}?PTC IAI,,PI,AT. , . _._. _ - _ - = t f INRi Ol 1 i~ ~,~~_[;~L?L'R I'LA1 ~LMI3F R 2006 25, RGC OEZI~S (~T I~C n`Al I:t C,f)~2:DIN(, DIS'( RiC I'w PITIRT) 1[JI7I< It~I T3IS I RIC 1~,_.S I A[T OI ALnS__K_,f~, [;AX YAkCf'.I, N~MI31~,P. 043-360-44. ,x,,n,.>;,~,.G~...a t,owe'a Kenai [eninsnis~. CYty oPlCenai Parcel I?a~e 8 of N~~ luly 31, 2007 8 1 NOT BIND'P~SG LNTTL EX~CLJTED BY ALL I'ARTIES EXHIBIT A Form of Memorandum of A~;reement P`ecordin~ Requasted By And ~G'hen Recorded, Return To: Paul M. Harman Janes ~~raldo IIolbrook & VlcDonou~;h 170 South Main Screet, Suite 150Q Salt Lake City, UT 84101-1b44 ME~![ORANI~UM OF AGREBMENT THIS MEMORANDUM OF AGREEM~NT' (this "Memorandum"j is made and entered iixto as of the day of , 200_, by and between THF' CITY Or KENAI, ALASKA, a home-rule munieipal corporation of Alaska ("Seller"}, and LOWE'S HIW, WC., a WashingEOn corporation, ("Buyer"} (iudividually, a"ParCy" and colleoCively, the "Parties"}. WHEK~A~, Buyer and Seller have eiitered into fhat cez~Yain Purchase aF1d Sale ~~~ Agreement c~f even date herewith (the "A~reement"); W~-IEREAS, the Agreement pextains to the "SubjecC Property" IocaYed in the City lCenai, Renai Peninsula Burough, Alaska and more particularly descr'rbed on Schedule I attached hareto; and WIFEIZ~AS, the Agreement provides for notice of its te,rxns to be recorded against the Subject Propetly in tihe offic'sa1 records of Kenai Peninsula Boroug~; Alaska; NOW, THEREPORE, the Pai~ties hereby give notice as follows: Sec,Hion l 1 of the Agreeinent provides to Seller certain righfs to repurchase tlle 5ubj ect T'ropercy, an terms and oonditions more fully set forCh in the Apreement. `Che right to repurchase the Subject Property shall terminaCe on the date d~ree (31 years and one (1) day aftex the dafe on which Buyer acquzres fee title to tlze Subject Property unless the CompleYioii Date I~as been extended pursuant to Sectian 11.1 of the Purchase and Sale Agreement. Any extension of the completion date under Section 1 L I slaalI adcl ttte equivaIent amount of tnne to tl~e Termination Date af the Right of Repurchase. Upon expiration of the tenninafion data, Sel,ter will reeord at Buyer's requsst an appropz•iate document acknowladging tern~inaCion c~P the Right Rf Repurchase. P2ge t of 4 L.owe's Kenai peninsuia: Ciry ~f Kraiai f'aroci August 8, ?06? 82 NOT BINDING UNT1L EXECUTED BY ALL PARTIES 2. Sectior~ 1 of the ~FOURTH] I~ifCh Amendment of the Piu~chase aud Sale Agreement provides to the Buyer certain rights ("PuY' Ri~ht) whereby the Buyer may elect to have i17e Sefler rapurchase the property, oiz terrtts and conditions more fully set fortl~ in the aznendment. 'i'he Put Right shall texminace one yaar after the Clasing I~aTe on the properCy. The Pat Right shall autoinalically terminate in the event the F3uyer does not exercise fl~e. Put Right. Upou expiratian of the Pat Right, Buyer wi11 record at Seller's expeuse an appropriate document aclcnowledgixlg texmination of the Put RighC. Pagc 2 oP4 L,owe's Kenai i>eninsida'. Ciry of Kensi Puccel Augusz 8.20q7 83 NOT BINDING UNTIL EXECIJ'P~D BY ALL PARTtES Signatare Pa~e for Selicr: fN WI'f"NESS WHERF,OP, the parties hereta have execufed this Agreensent under seal as uf the date first above written_ SELLI:R: CITY OF K~NAI, ALASKA ta hom~-rule municipal caiporation of Aiaska By: ~ ~ Name: Tit1e: STA'I'E OF ) } ss. BOROUGH OF'~ } ON TF3TS day of . 200 , before ma, ehc undersigned, a Notary Public in and for said Borouch uid State, pzrsonally appearecl , io ine peraonally Irnown t'o be the person described in and ~~ho executed the foregoing i~istrument, who, bein~; by me first swarn, statecl tIiat ~ helshe is th~ of , a ~ , and that helshe executed such instrument on behalf of said corporation by authority of its board of directors, ax2d said pexson ~cknowledged to me that he/she execated such instrument as the act and deed of said corporation. IltiT WITNESS WHEREOF, I have hereunto set my hanci ~iid a4'fzxed my off~eiel seal the day and year last above written. Notarv Public Printed Name; M}~ Coirunission Expires: Page 3 of4 I_owe's I<enai Peaiinsuin~. City of ICc~ai Pnrcel Auenst 8, 2007 84 NOT BINDING LTNTIL EXECUTED BY ALL PARTIES Signature Page for Buyer: LOWG'S: Lowe's HItri%, Inc., A Washington corporation $y: STATE OF COliNTY OF ) ) ss. } Nazne: Title: ON TH15 day of ~, 200_, befoxe ine, the undersigned, a Nofary Public in and for said Co~,inty and State, personally appeared , to me personally known to be the person descriUed in and who executed the foregoing instrument, who, being by me first sworn, stated tl~at he/she is the ofLOWE'S HIW, INC., a Washnigton corpoxation, and tliat l~e(she execuYed such insirmn~nC on behalf o'E said corporation by autholYty of its board of directors, and said }~eison acknowledged to me tliat he/she executad such uistrument as the act aud deed of said corporation. IN WITNESS WHEREOF, I have l~ereunto sef my hand and affcxed my official seal the day and year last above written. Notary Public Printed Name: My Con~mission ~xpires: Page A of 4 Lnwk s Kenai Per.in5nlit: 4:iTy ofKenai Pareel ~ August R, 206? 85 AUG02-2007 THU 09:31 AM KENAI PENN BOROUGH GLERK 'i• . '~~. August 2, 2007 Ivls. D~,wn Holland-Williaws Records & Licenaing Sup~rvisor Alcohol T3everage Contrfll Baard 5848 E. Tud.ar R.d„ Aa~chorage, AIC 94507-tz86 Ke: Lic~nse'Type - Ladge Seasonal Linense # 4726 Dcaz Ms, Holland-Williams: SHERRY B6GG5, C[u~C BOROUGH CLERK Please ba advised tliat the Kenai Peninsula ~orough has no objeetion ta the approval af the new license ap,plication for the following csstablishment, located in tlie Ciry of Kenai, Alaska: Lod~e-Sea,sanal Ricl7ard D. Muilowney Jr, dl~a Alaslra Clixnootc I.adge # 4726 TheTCenai T'ertinsctlaBoroughFinance Departmenthas reviewed-its files and has raised, no objection based on unpaid. or delincluent taxos. Sincerely, ~ 5harry Big MC ~~ Boraugh Ciark cc: tipplicant City ofICenai KPB Financo Department File 5;\WVWRJI~ATAUflC ~ouN1ABC Lanm\NOMNaw - WUAm Clry Lim'uswpd FAX N0~ 907 262 $615 P, O1/01 I~EI\lAI PE{\I11'~~ULA ~~t~C~UGH 1 t+q N. BINKLEY ST • SOLDOTNA, ALASKA • 99669-752~ ~'HON~: (907} ?14-2160 • FHX: {g07) 714•2~88 Toti•free withiathe Borough~ 1-BftO•478-4441, Ext. 216D EMAIL: ass~m6lyclerk@6oraugh.kenai.ak.us r~ ~~ C~~~ ~ 8V JUI.-3Q-2007 NfON 11:21 RP1 KENAI PENN BOROUGH CLERK FAX N0, 907 262 8615 5tace ofAlaska Alcoholic I§everage eo~rtrat Baard ~FC~~~ Date of N'otice: 7uly 26, 2007 Application Typa: IdEW X Goveming 33ody: Kenai PeninsttIa Borougli 4441~' Bfnk3ey St SnldoCna AK 94669 coxi~unity counci~s: Liaense #: Liccnse Type: A.H.A.*: ~,ioea~sea/AgplicanC; phystam.l LocsiiQn: Mail Address; Telephone #: RThF• 4726 T.odge - Seasaual Alaska Cl~imaouLodge Richard D. Mullowney ~r. 154~ Anglar Dr PO Box 950 T~enai AI~. 94611 90'7-283-4333 n~.~aa~~99 r1z.4.NSr~ CiwnerShip La~~n Name Change 2t~7 JUL 2 6 Pf1 2~ 1 B ~~~ CLEt~K'S OFFICE ra; '`.~ n~r~~f r~o~ Plannfng Depatlment bATE; ~ -~~"' a841CM IA6 ~YPR 1 ~t' ,~Ilik N~1h ~omments by: "~" Fa Assemhiy Meeling'q . { ^ The ~ 9epadment hes na ubjectinn to the rssuance af lhis license. oate: By: P, OS/Ol CorplLT~C Ag~nt: Address Phane DaCe and State of Or anized C+ ttti~Ev Goad ecand'rng? N/A PCease nnte: the Members/OfficerslDirectors/SharehoZtlers (principaCs) Cisterf belnw are tlre primmcipa! members. There n:ay be adriitinnal members that we are not aware of becalese P~ey are twt pri+nary -nemhers, We have t,!~rnd ali nrineiaal nternSers ar:d tkase whn hotri at Least 20% shuwe,s. ------ -- -- - _ _ MemberlO~cer/Diraetor: bOB Addreae Pt~oae Titte/38ares (%) N1A Tf trunsfer appticatian; currenC license infoizna4iott: Licease #: Gutrent D.B..A.: Ci~nent Liccnsec; Cturent I:,acatiun: Alcohalic Tievera~e, Control Baard 5&4S E. Tudor Rd Ancharage, ~K 9956'~ Noice (907) 269-~350 - F+~x (907} Z72-9412 dlCaE~3T3A KENAI CYTY COVNCIL - RECxULAR MEETING AiTGUST i, 20Q37 7:00 P.M. KENAI GI1'Y COYTNCFL CIiAME httv: I 1 www.ci.kenai.ak.us ax~NC r~: cA~,L ro o~~aa 1. Piedge of Allegiance 2. Roll Catl 3. Agenda Approval 4. ConsentAgenda *All items listed with an asterisk (*) are cansidered to be routine and non- cantroversial by the council and will be approved b~r one motion. There will be no eeparate discussion af these items unless a council member so requests, in which case the item will be removed from the consent agenda and considered in its normal sequence on the agenda as part of the General Orders. ITEA~S B: SCHEDULED PiTBLIC COMMENTS (10 minutesJ ITEM C: L7NSCKEI7LTLED PUSLIC CdMMENTS (3 minutes) ITEM D: REPORTS t3F' IfPB ASSEMSLY LEGISLATOY85 ~4I3D ~OUNCILS ITEM E: 1'i7BLIC IiEARIriiGS (Testiznony Iimited to 3 minutes per speaker.) l. Ord3~anee No. 2242-200? -- Increasing Estimated Revenues and Appropriations by ~2,798.25 in the General Funfl Fire Deparrinent for a Bonation From the Firefighters Association. 2. Ordinance P3o. 2243-2607 - Inereasing Estimated Revenues and Appropriations by $2,500,00 in the General FYxnd for Police Training. 3. Qrdinance No. 2244-200? -- Increasing Estimated Revenues and Appropriations by $2,000 in the General Fund for a Library Award. 4. Qrdinance No. 2245-20Q4 - Amending KMC 1420. i25(a) by Deleting the Requirement that Canflicts Bei~c~een Residential and Business lises in the Central Mixed Use Zone Will Be Resolved in Favor of Business. 5. Ordiaaaiee No. 2246-2C107 -- Amending the Land Use Table In KMC 14.22A 10 For the Centrai Commercial Zone (CC Zone) by Changing "Warehouses°, "Cemeteries" and "Surface E~ctraction or Natural Resources" (i.e. Gravel Pits) From a"C" (ATlawed by Conditionai Use) to an "N" (Not Permitted) and Changing "Wholesate Business" From a"P" (Principal Pernutted Use) to an "N" (Not Permitted). 8$ t~rdinaace Pdo. 224~-2(307 -- Amending the Official Kenai Zoning Map by Rezoning Approximately 180.92 Acres in the City af Kenai to the Central Mixed Use Zone. The Area Includes Parcels Currently Zoned Generai Commerciai, Light Industrial and Suburban Residential and is Generally Lacated North and South of the Kenai Spur Highway and Includes Properties Between Bridge Access Road and Coral Street and Properties A1ong Main Street Loop, North Willow Street and Airport Way. 7. Resoflution No. 2007-52 -- Declaring Equipment, Supplies, and Materiais Surplus or Obsolete. Resolution No. 2007-53 -- Awarding the Bids for an Animal Control 1/2 -Ton Van for the Total Amount af $20,984.00 to Stanley Ford, Inc. and a Building Maintenance 3/4 -Ton Van for the Total Amount of $23,~32.00 to HixYchings Chevrolet Cadillac, Ine. Resolutian Ra. 2007-54 - Transferring $8,250 in the Generat Fund to Pay for Abatement of Structures Declared Unsafe or Dilapidated Under tl~e International Properiy Maintenance Code as Adopted by the City of Kenai in KMC 4.I0.010-020. 10. Resolution No. 2007-55 -- Designating the State of Alaska, Depariment of Environmental Conservation (ADEC) Crrant Funds far the Project Entitled "City of Kenai New Municipal Water System Producfioi~ Wells, Arsenic Removai Equipment, a Transmission Main, and Related Improaements," as the Number One Local State Funding Priarity for Fiscal Year 2009. ITEM F: MINUTES *Regular Meeting of July 18, 200'7. ITEM £`r: ITEM H: NEW BU3INESB Bills to be Ratified Approval of Purchase Orders Exceeding $15,Q00 *6Jrdinance NEo. 2248-20a7 -- Iizcreasing Estimated Revenues and Appropriations by $27,532 in the Senior E`und for Additional Grants and Donations. 4. ~Ordinanee Na. 2249-2007 -- Amending Ordinance Number 2194-2006 by Amending the Purchase Agreement Authorizing tYte Sale of Approximately 14.784 Acres of land Described as Lot A, Baron Park Subdivision, 20p6 Replat to Lowe's Home Improvement Warehouse, Inc. (L.owe's) by Adding a"Put Right" for One Year After the Close of the Sale Whereby at Lowe's Opfiian the City of Kenai Would Repurekase the 89 Property for the Purchase Price Paid by Lowe's Minus Any Rea1 Estate Commission Paid by the City of Kenai. 5. Discussson -- Scheduling Work Sessian(s) a. Council Meeting Broadcasting b. City of Kenai Bear Fopulation and Related Topics 6. 1~pproval -- Vacation of the West 132-Feet of the 33-Foot Right-of-Way Access Easement WitYiin the North 33' of Government Lot 33 Recorded in Book 1~, Page 40, Kenai Recording District, All Wittiin Section 34, Township 6 North, Range 11 West, Seward TvFeridian, Alaska, the city of Kenai and ihe Kenai Peninsula Borough. KPB File No. 2004-251. Location: City of Kenai. ITEM I: COMMISSIONIGG1NiNII'fTEE REPC}RTS 1. Council on Aging 2. Airport Commission 3. Harbor Commission 4. Library Commission 5. Parks & Recrearaon Commission 6. Pianning & Zoning Commission 7. Miscellaneous Cornmissions and Committees a. Beautification Committee b. P.laska Municipal League Report c. Joint Kenai River Worldng Group d. Mini-Grant Steering Committee ITEM J: REPORT OF THE MAYOR IT~A2 Ii.: City :VIanagar Attorney City Clerk ITE~[ L: DISCU35IOPf L Citizens (five niinutes) 2. Council ITEM M: FENDING LEt'irISLATION (This item lists tegislaiian which wilt be addressed at a taCer date as noTed.) Ordiuance No. 2202-20Q6 -- Amending KMC 11.05.090 ta Lisnit the Use of the City of Kenai Boat Launch, Located at the Municipat Harbor, to Vessals and Boats Powered by Four-G~cle or Direct Injection'Pcvo-Cycle Engines. (1/17/Q7, Tabled, no time certain. j 90 Ordinance No. 2220-20{I7 -- Amending the Official Kenai Zaning Map by Rezoning Approximately 241.4 Acres in the City of Kenai to the Central Muted Use Zone, Including Parcels Carrently Zoned General Commercial, Central Commercial, Light Industrial and Suburban Residential and is GeneraJly Located North and South af the Kenai Spur Highway and Includes Properties Between Bridge Access Road and Upland Street and Properties Along Main Street Loop, North Wiltaw Sn~eet and fvrport Way. (4/4/2007, Tal~ted, no time cerlain.J C2rdinance No. 2230-200? -- Amending KMC 21.10.090(d)(1) and (2) by Establishing L?ifferent Requirements for Determining the Length of a Lease Extension and Extending the Ma~imum Term of Lease Including Any Extension from 35 to S5 Years. (6/ 6/ 07, approued for reconsideration; 6/ 6/ 0'7 postponed acfion to 7/ 18/ 07; 7/ 18/ 07, postponed action untit 8/IS/07.J Ordinance No. 2240-Z00'7 -- Amending ILMC 21.10.070 to Give the Airport Commission More Authority Over Leasing Decisions Within tha Airport Reserve. (7/IS/07, Tabled, no fime certain.j EXECUTIVE SESSION -- Evaluation of City Attorney IT`EM M: ADJOL7RNMENT 91 I{ENAI CITY COLJNCIL - RECrULAR MEET%NCa AUG,I7ST 1, 20U7 7:00 P.M. KENAE CITY~GOUNCIL CH.ElMBERS http: J 1 www.ci.ken.ai.ak.us MAYOR PAT PORTER, PRESTDriVG NtINiSTES YTEM A: CALL T'O C/RDER Mayor Porter callefl the meeting to order at appro~:imately 7:00 p.m. in the Councii Chambers in the Kenai Ciiy Hall Building. A-1. PLEI}GE OF ALLEGYANCE Mayor Porter led those assembled. in the Pledge of Allegiance. A-2. ROLL CALL Absent was: Joe Moore, Vice Mayor A quorum was present. Also present: Brittany Harding, Student Represantative A-3. AGENI3A APPROVAL Mayor Poner noted the following items to be added to Lhe packet: ADD AS: Item E-5a., Substitute Ordinance No. 2246-2007 ADD 3'O: ftem E-10, Cost estimates for wells at Angler Road jSeaver Loop and Strawberry Road. R~lOTION: Council Member Eldridge MOVEY3 to approve the agenda with the lay down items presented at the begnn;ng of the meeting. Council Member Swarner SECONDED the modon and requested ITISANIMOU6 CONSENT`. Council Member Ross requested to hear Item H-Sb at Ttem B-1. tzp'fE: 92 The Deputy City Clerk took ro11. Present were: IiENAI CITY COUNCIL MEETING AUGUBT 1, 2007 PAGE 2 There were no objections. SO ORDEItEL1. A-4. CONSENT ACsEIdDA MOTYON: Council ii~Iember Ross 1SIZ0~"ED to approve the consent agenda. Council Member EIdridge SECONDED the motion and requested UP7ANIMOUS CONSENT. There were no objections. SO OR&3ERED. *All items listed with an asterisk (A) are considered to be routine and nan- controversiai by the council and wiil be approved by one motion. There will be no separate discussion of these items uriless a council member so requests, in which case the item wi]1 be rernoved from the consent agenda and considered in its normal sequence on the agenda as part of the General Orders. ITEM B: 5CHEDULED PUBLTC GONiMENTS H-5b. Larsp Lewis, Alaska Department of E`ish and Crame, 43961 K-Beach Road, 3aldotna -- Scheduling Work Session -- City of Kenai Bear Population and Reiated Topics. Lewis suggested a Department af Fish and Game laiologist and a representative of Alaska Waste to be invited to attend. Dates were discussed. The work session was scheduled for Wednesday, October 3, 2007 in the City Council Chaxnbers beginning at 5:45 p.m. ITEM C: UNSCHEDUZED PUSLIC CGIMMEATS G-1. Ken Tarbox, Sox 3507 ^~olHotna -- Kenai Peninsula Wildlife Viewing Trail Guide Tarbox reported the Kenai Peninsula Wildlife Viewing Guides were complete and available at the Visitor's Center anfl the WildLife Refuge for sale; a$110,000 grant from ConocoPhillips will be used to extend the trails and add a ldosk promoting them at the Kenai Visitor's Center; and, presented everyone in attendance with a copy of the guide. YTEM D: REPORTS OF KP'B ASSEM~LY LEGISLt~.T~R5 AND COUNCIL -- None. ITEM E: PUSLIC HEARINGS E-1. drdinance No. 2242-20414 - Increasing Estrmated Revenues and Approprzations by $2,998.25 in the General Fund Fire Departrnent far a Bonation From the Firefighters Association. 93 KENAI CITY COUNCIL MEETTNG AUGtJST l, 2007 PAGE 3 MOTYOIV: Council Member Mollay A20VE73 ta enact Ordinance No. 2242-2007 and Council Member Eldridge SECaPTI3ED the motion. There were no public or council comments. VOTE: MOTIE2N F°ASSED UNANIMOUSLY. E-2. C3rdinance No. 2243-2007 -- Increasing Estimated Revenues and Appropriations by $2,500.00 in the General Fund foz Police Traixiing. MOTIOIV: Council Member Eldridge MOVED to adopt Ordii2ance No. 2243-2007 and Council Member Swarner SE;GON73ED the motion. There were no public ar council comruents. VOTE: MmTION PA38EY) UNAS3YMOUSLY. E-3. Ordinance No. 2244-2~07 -- Increasing Estimated Revenues and Appropriations by $1,000 in the General Fund for a Librasy Award. MOTIOPI: Councii Member Swarner 1VZOi7ED to aflopt Ordinance No. 2244-2007 and Council Member Molloy SECONI3ED the motion. 94 Student Representative Harding: Yes Student Representative Harding: Yes KENAI CITY COUIVCIL MEETING AUGUST 1, 2007 PAGE 4 There were no public or council comments. VOTE: 8tudent Representative Harding: Yes Porter Yes ~ Moore ' Absent Swarner Yes ~ Eldrid e Yes Ross Yes ~ Mollo Yes I Boyle Yes ! ~ MOfiIQN PASSEID UNANSMf)USLY. E-4. Ordiaastce No. 2245-2007 -- Amending KMC 14.20.125(a) by Deleting the Requirement that Confliets Between Residential and Business Uses i53 the Central ivT~eei Use Zane Wi11 Be Rasolved in Favor oi Business. MOTION: Councii Member Eldridge D1iOVED to adapt Ordinance No. 2245-2007 and Conncil Member MoI1oy SECONDESJ the motion. There were no public coxnments. Council comments included: • Equal consideraYion shauld be given to businesses. • Residents wiYhin the zone have concerns. • Business owners supported the original ordinance. V(7TE: MOTIpN PA"sBEB ZSNANLMOUSLY. E-5. brdix~ance No. 224fs-2O07 -- Amending the Land Use Table In KMC 14.22.010 far the Centrai Commercial Zone (CC Zone) by Changing "Warehouses", "Cemeteries" and "Surface Ea-traction or Natural Resources" (i.e. Gravel Pits) From a"C' (Allowed by Conditional Use} to an "N° (Not Permitted) and Changing `°Vi~holesaie Business" From a"P" (Principal Pexmitted Use) to an"N" (Not Pernutted). 1VI~TI~ft: 95 Student Representative Harding: Yes KENAI CTTY COUNCIL MEETING AtJGUST l, 20d7 PAGE 5 Council Member Molioy &IOVEII to enaet the Substitute Ordinance Na. 224b-2007 and Council Member Eldridge SECGINDED the motion. There were no public cornments. M(3TION TO ANiEND: Council Member Eldridge MOVED to amend the Land Use Tahle, page 1, column CC Warehouse to C-- Conditional Use. Council Member Molloy SECCDNDED the motior.. VCP'CE QN AMENDMEDIT: MOTIibN PASSED UN1§1~TIMOUSLY. VOTE ON MOTICPN AS AMENDEI3: MOTIOId PASSED UI6ANIll20FTSLY. E-6. Osd'anance Na. 2247-2007 -- Amending the Official Kenai Zoning Mag by Rezoning Approximately 180.92 Acres in the City of Kenai to the Central ?Vti~;ed Use Zone. The Area Includes Parcels Currently Zoned General Commerciai, Light Industrial and Suburban Residantial an.d is Generally Located North and South of the Kenai Spur I-3ighway and Includes Properties Between Bridge Access Road and Coral Street and Properties Along Main Street Loop, North Willow Street and Airport Way. SvItBTION: Council Member Eldridge Nl0~7ED to adopt Ordinanee No. 2247-2009 and Counci7 Member Bayle $ECC3NDED the motion. There were no public comments. 96 Student Representative Harding: Yes Student Representafive Harding: Yes KENAI CI't'Y COUNCIL MEETING AUGUST l, 2007 PAGE 6 ` Molloy commended the Planning 8s Zoning Cornmissian for its hard work on the ordinance and noted the Commission listened to many comments and took all comments into cansideration. VGBTE: D/iOTION FASSED UNANIMOUSLY. E-7. Resolutiou PIo. 2007-52 - Deciaring Equipment, SuppIies, and Materials Surpius or Obsolete. MOTION: Councii Member Swanzer Md'VED to adopt Resolution No. 2007-52 and requested UNANIMOUS CONSEP7T. Council Member Eldridge SEC4NDED the motion. There were no public comments. VOTE: There were no objections. SO ~RDERED. E-8. Resolntiosa No. 2007-53 -- Awarding the BiBs for an Atvmal Control 1(2 Ton Van for the Total Amount of $20,954.00 to Staniey Ford, Inc. and a Building Maintenance 3/4 -Ton Van for the Total Amount of $23,832.d0 to Hutchings ChevroIet Cadillac, Inc. Mt}TION: Council Member Swarner MOVED to adopt Resolution No. 2007-53 and requested UNANTMtBU3 CON$EPiT`. Council Member Eldridge SECONDED the motion. There were no public comments. Swarner thanked Adzniiiistration for inciucting the bids from both companies in the arctinance. VOT~: There were no objections. SQ ORDEEtED. 97 Student Representative Harding: Yes KENAI CITY COUNCIL MEETING AUGUST 1, 2007 PAGE 7 E-9. Resolutioa No. 2007-54 -- Transferring ~8,250 in the General Fund to Pay for Abatement of Structures Declared Unsafe or Dilapidated LTnder the International Froperty Maintenance Code as Adopted by the Citp of Kenai in KMC 4.10A10-020. M~TIOIV: Council Member Eldridge MQVED to adopt Resolution No. 2007-54 and requested UNANIMOUS CONSENT. Council Member Ross SECONDED the motion. There were no public comments. Council comments included: • Specific buildings were safet5~ hazards. • Liens upon the property would recoup costs. • Owners were notifed and u~zll be notitied again. VQ3TE: There were na objecrions. $O ORDERED. E-1Q. Resolution No. 2D07-55 -- Designating the State of Alaska, Dep~rtinent of Envn•anmental Conservation (ADEC) Grant Ftznds for the Pr-oject Entitled "City of Kenai New MunicipaI Water System Praduction Wells, Arsenic Removal Equipment, a Transmission Main, and Related Improvements," as the Nurnber One Local State F~inding Priority for Fiscal Year 2009. MOTT~Zd: Council Member Molloy MCiVED to enact Resolution No. 2d07-S5. Councit Member Swarner SECONDED the motion and requested UNANTMC}US CONSENT. There were no public comments. City Manager Koch reviewed the lay down items added at the beginning of the meeting. VOTE: There were no objections. SO ORDERED. ETEM F: MINTJTES F-1. Regular Meeting of Jnly 18, 2007 -- Approved by consent agenda ITEM 4`.,: BFPdFENISHED BUSIY~IESS -- None. 98 KENAI CITY GOUNCIL MEETING AUGUST 1, 2007 ~ ~ ~ PAGE 8 I'FEM H: PiEW BTTSFNESS H-I. BikPs to be Ratif'aed MOTYON: Council Member Molloy MQVEI7 to ratify bills and Council Member Eidridge SEGONY?ED the mation. VOTE: MOTION PASBED UNANIMOUSLY. Ii-2. .l~ppronal of Pnrchase Qrders Exceeding ~15,00~ M4'3TIdN: Counc.il iVtember Eldridge MOVED for approval of purchase orders exceeding $15,000 and Council Member Molloy SECONDED the motion. VOTE: Student Representatave Harding: Yes ~ Porter Yes ~ Moore Absent ~ Swarner Yes Eidridge Yes ; Ross Yes i~vloIlov Yes ~ -:- i Bovle I Yes i ~ MOTYON PAS~ED UNAPTIMOVSLY. H-3. Orctinanee No. 2248-2009 -- Increasing Estimated Revenues and Appropriations by $27,532 in the Senior Fund for Additional Grants and Donations. Introduced by approval of eonsent agenda. H-4. Ordiaance No. 2248-2007 -- Amending Ordinance Number 2194-2006 b,y Amending the Purchase Agreement Authorizing the Sale of Approxisnately 14.784 Acres of land Described as Lc~t A, Baron Park 99 Student Representative Harding: Yes KENAI GITY COUNCIL MEETING AUGUST l, 2007 PAGE 9 Subdivision, 2006 Replat to Lowe's Home Improvement Warehause, Inc. (Lowe'sJ by Adding a"Put Right" for One Year After the Close of the Sale VJhereby at Lowe's Option Yhe City of Kenai Would Repurchase the Froperty far the Purchase Price Paid by L.owe's Minus Any Real Estate Commission Paid by the City of Kenai. Introduced by approval of consent agenda. H•6. Discussion -- ScheduIing Wark Sessian(s) H-5a. Council Meet'sng Baoadcasting Dates and times were discussed. The work session was scheduled for 5:30 p.m. on Wednesday, August 8, 2007 in the City Cauncil Chambers. H-5ia. City of Kenai Sear Pagulation and Related Topics Discussed at Item B. H-6. ApgrovaP -- Vacation of the West 132-Feet of the 33-Foat R'tght-of-LGay Access Easement VJithin tne North 33' of Government Lat 33 Recorded in Book 12, Page 40, Kenai Recorfling District, A11 W'sthin Section 34, Tocvnship 6 North, Range 11 West, Seward Meridian, Alaska, the cit,y of Kenai and the Kenai Peninsula Borough. KPB File No. 2004-251. Location: Citv of Kenai. MO?'EODT; Council Member Eldridge M4,VED to approve the vacatian and Council Member Ross SECQNDED the motion. It was noted that no action woulfl approce the vacation. WITHDR.4.WAL OF MOTION: Council Member Eldridge, with approval of Council Member Ross wiChdrew the motion. No action was taken. ITEM I: COMMTS6f~N/COMMITTEE REPORTS I-1. Cauncil on Ag'tug -- Coixncil Member Boyle noted the August meeting was cacicetefl. 100 I~ENAI CITY G<3UNCIL MEETING AUGUST l, 20Q7 PAGE 10 Y-2. Airport Commissian -- Council Member Molloy stated the next meeting would be heid August S. I-3. T3arbor Commiss'son -- Council Mamber Boyle stated the next meeting was scheduled for August 6 and would include a tour of tne facility. fi-4. Library Commission - Council Membea Swarner reported the next meeting would be heid August 7. She, Library I}irector Mary Jo Joiner and Cauncil Member Molloy appeared on "Sound Off' regard3ng the IiUrary expansion; and, most calls were favorable towards the Library expansion bond issue. d-5. Parks & Reereation Comrnissian -- Parks 8v Recreation Director Frates noted the next meeting would be held on October 4. t-&. Plaaning & Zotting Commissioxi -- Councll Member Ross gave a brief Pe~iort of actions tal~en during tne July 25 Cornmission meeting. Ii was also noted Planning 8v Zoning Commission Member Fullinck resigned. I-7. Miscellaneous Commiesions and Committees Y-?a. BeauEifieation Committee -- Council Member St~arner reported the next meeting would be held on September 11 and requested the timeline for sprinklers in Leif Hanson Memorial Park. Koch reported the headers would be instatled this year. I-7b. Alaska Municipal League Report -- Council Member Swarner she would be attending the Summer Legisiative ivIeeting in Heaty August 9- 11. I-9c. Joint Keuai Riner Working Graug -- No report. Y-7d. NTini-Grant Stearsng Cammittee -- No report. dTEM 3: REPORT O&` THE MAYOR -- No report, TTEM K: ADNLYNI~uTRA'fIOId REPORTS &C-1. City Marsager -- City Manager Koch noted the following: • The wetIands permii for Wal-Mart has all but one signature. • Dip Net revenues were just over $200,Qd0, compared to ~173,000 in 2005. • 'i`he Soccer Park had been seeded on two oi the four fields. Fencing would be installed. • Interviews were being conducted for the position of Airport Manager. • Koch would be out of tocvn August 5- 19. 101 KENAI CITY COUNCIL MEETSIVG AUGUST 1, 20~7 PAGE 11 K-B. Attornay -- Attorney Graves reported he would add the definiflon of "wholesale business" fo the Kenai Zoning Code and waulfl be attending the Airport Commission meetingsxegarding the 35/55-year lease ordinance. K-3. City Clerk -- Deputy City Clerk Ha11 norsunating petitions were availabie for the o~ces of mayor and two City Council seats. Three citizens had picked up packets. ITENt L: L-Y. Cit'saens -- None L-2. Oouatcil Svaarnez -- Askad Kach about City sidewalk maintenance and repair. Koch reported daiiy sweeping was the responsibility of the business and craclc repair or replacement was the City's responsibility. Eldridge -- Wis2aed Koch a good trip. Hard'aug -- August 25 would be the first day of school. Russ -- No comments Molloy -- No comxnenis Soyle -- No comments ITEM M: PENDINCr LEGISLATIOI4 (This item lisfs Tegislation which wilt be addressed at a later date as noted.) C3rdinaace Na. 2202-2006 -- Amending KMC 11.05.090 to Limit the Use of the City of Kenai Soat Launch, Located at the Municipal Harbor, to Vessels and Boats Powered by Faur-Cycie or Direct Injection Two-Cycle Engines. (1/ I 7/07, Tabted, no time certain.) Ordinanee No. 2220-2007 -- Amending the Officiat Kenai Zoning Map by Reaoning Approximately 241.4 Acres in the City of Kenai to the Central Mixed Use Zone, Tncluding Parceis Currently Zoned Czeneral Commercial, CentraI Comrnercial, Light Industrial and Suburban Resiflential and is C~enerally Located North and South of the Kenai Spur Highway and Includes Properties Between Bridge Access Road and Upland 9treet and Properties AIong Pltain Street Loop, North Willow Street and Airport Way. (4/4J2007, Tabled, no time certain.l 102 KENAI CITY COUNCIL MEETING At1GliST 1. 2007 PAGE I2 Ordinance No. 2230-2d07 -- Amending KMC 21.10.090(d)(1) and (2} by Estabiishing Different Requirements for Determining the Length of a Lease E~tension and Extending the Maximum Term of Lease Including Any Extension from 3~ ta 55 Years. (6/ 6/ 07, approved for reconsideration; 6J 6/ 07 postponed acti.on to 7/ 1&/ 07; 7/ I S/ D~ postponed action unfil 8/15/07.) - Ordinance No. 2240-2007 -- Amending KMC 21.10.070 to Give the Airport Commissian More Authority Over Leasing Decisions Within the Airport Reserve. (7/1$/07, Tabled, rto time certain.J -- Evaluation of City Attorney MOTION: Cauncil Member Molloy M47VED to convene in an executive session of the Cauncil of the City of Kenai, concerning matters that conld prejudice the reputation and character of another, specifically the annual evaluation of the City Attorney. Counci] Member Eldridge SECONDED the motion. VOTE: Student Representative Harding: ~ Porter i YES Moore ABSENT Swarner YES j Eldrid e j YES ' Ross YES Mollo YES Bayle ! YES I i I Mr3TTdN P~4S3ED UNAlVIMOUSLY. EXECiYTIVE SESSIdI~t CONVENEI?: 8:10 P.M. BACK TO ORDER: 9:30 P.M. Council Member Nfolloy reported the council met in e~:ecutive session to confluct an evaluation of the city attorney. The city attorney received a positive evaluation. ZTEM M: There being no further business before the Council, the meeting adjourned at approximately 9:33 p.m. Niinutes submitted by: Corene Hall, Acting City Clerk 103 KENAI CIfiY COUNCIL MEETING AUGUST I, 2007 PAGE 13 "The student may casf advisory uotes o~i ttll matters except those subject to executive session discussion. Advisory votes shatl be cast pnor to the officiai councit vote and shall aot affect the outcome of the vote. Advisory votes shalt be recorded in th.e minutes. Studenf representaYives may not move or second items during a counci( meeting. 104 IS~NAS ~YTY CCIUNCIL WC}RK SESSIOPS AUCrUST $, 2007 KERiAT CIfi"Y Ct3UNCIL CEiEi:MBERS 5:3Q P.M. 1VLAYCIR P,4T PORTEi2, PRESIDING ~OTES Council present: P. Porter, R. Molloy, M. Boyle, B. Eldridge, R. Ross (arrived approximateiq 5:45 p.m.) Council absent: J. Moore, L. Swarner Staf£ present: City Clerk Freas, City Attorney Graves, and Acting City Manager Semmens Also present: Student Representative B. Harding and Molloy Law Office Representative L. Krusen The work session opened at approximately 5:30 p.m. Council Member Moilo,y reported he had provided a copy of his report (included in the packet} to several members of the public and received some positive comments. Mr. Krusen reviewed the report included in the packet and a summary sheet prat>ided as a lay dawn to the discussion, noting recommendations and a.pproximated costs of optioLZS/supplemental options. They were noted as: • Deiayed cable televisian (council approved investigating the wncept, t~orking with Kenai Central High School for taping). • Online archival (planned with 2006 purchase of softcvare/computer, etc. ~vith possible costs for internet/we6site hosting) • Live webcast (Krusen f Molloy - recommended supplemental aption with purchase oF additional software and cost for internet/website hasting). 4 Radio (KrusenJMolloy -- not recommended due to costs inaolved). • Live Cable TV (Krusen/Molloy -- not recommended due to costs involved), • Live Network Camera (Krusen/Molloy - recommended altemative supplemental option). A brieP question and answer period took place. It was noted, the 2fl06 purchased software wnuld allow digital recordings of couneil meetings and wauld also allow those recordings ta be uploaded to the city's webpage. Additionally, council included $1,SOU in the Clerk budget for purchase of additional software to incorporate Iive webcasting to the city webpage if council chooses to inwrporate that funetion (cvith e~ra costs £or internet and website hosUng). The wark session ended at 6:25 p.m. Notes prepared and submitted by: Carol L. Nreas, City Clerk 105 ~ ~ t 0, O ~ ~ h• Q V~J N LtJ U ~ ~ N w z z ~ o ~ ~ z ~ ¢ ~ W ~ ~ ~ ~ ~ o. o > > ~ U 2 ~ ~ ~ ~ R ~ ~ ~ O C N Q. J ~ ~ U ~ ~'^ U ~° ~ 0 ~ w ~ ~ ~ 4 t9 ~ 4 ~ O t7 ~ Z V ~ z ~ w ~ ~ ~ c i. z ~ ~ q ~ o ~ ~ u ~ ~ R ~ ~ ~ r z w ~ u~i z 106 o~~c"f~a~e r~~~~r ~ ~a,~t G~~r r~~~~r ~ ~~t~~~,~ 210 Fidalgo Avenue, Kenai, Alaska 99611-7794 Telephone: (907) 283-7535 / Fax: (907) 283-3Q1G www.ci.kenai,ak.us M '~°e~~RA~~~~ TO: Mayor and Council Members FROM: Carol L. Freas, City Cle~ DATE: August 9, 2007 RE: OCTOBER 2, 20Li9 CITY' GENERAL ELECTYON Precsnet Election 8o¢rd ApprovaF As requixed by KMC 6.05.040, all the persons listed are qualified voters of tke City. 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E= ~ ~ ~ ~ ~ .« ~ o 'c~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ -° c~ ~' ,~ v .. a ~ ° ~ . ~ :~ ~` cU ~ ~ °~ -~ ~ - ~ Q CU ~ ' ~ . ~ ~ "-~ ~ t~7.~ L3 ~ Ctx '%~ > ~ ~ ~ ~ . ~ ~ '~~' C~ a C~ .~3 ~ ~ C 7 ~ ~~ ~ ~ ~ ~ C~7 i~'_ °~ ~ C_7 e e m ~ d _ F ~ . r ' ~~ ~ ~~~~~ ~ ~ ~ ~ i ~ S ):' ,y .n fi' Yx ` ,.~~ ~ . . - .. '~~,y ~ . ..~ ~ ~~ F :Y2.tA ~ ~ . y , f 'R l~~ i y k ,. ..~ E'Y ; : ~ 5 . ~ . : . . W ~~ ~~ ~vltlio _ ~ a~y . ;:)J i~i' . . . ~ r \ . v i . "e nn 1 , h, ~ "~ '~e f ~ ~;' ~--. h F ~-"y" f px(y ~I ~ s~ ~.. _ . ~ ` ~ r~ ~ i ~ . ~/ ~ ~ jwti- . . ~ Y ~ ~ ~ H 5 ~"J/ 7 ~ ~ ..~,' Y~ - ~~ ~ ~' I'1 . ~ . > 11 M"l { .s .v5 ~' L ~ y . " .. p ~ ~ d .%~ ) ''~ c ~ ,i . Vf ~. . ., ~ j ,. '" ~~ ^ ~* , ' ~` . ~.: ~. ~ . . .. . ' _ 4i . ~' . ~ ~ ` .. . [ ~ ~ V ~ ~ ~ ~~ ~ ~ ~ ~ r r . ~ ~ 2 wp°~ ~ ~ ~ ~ U: ~ ~ ~ pq~„ ~e~ : ~ ~ °k~ S ai ~ ~ ~ ~ ~t~ F ~ ~ ~ a ~ r? 4 ~ ~.g~ ~ a `." ~„ . p~ @ 6~ ~ ~ ~ ~ ~ ~ ~ KE1~AI AYRPQRT COMMISSION AITGUST 9, 2407 KEPdE4I CITY COUN~IL CHAMBERS 7:00 F.1Vi. AGENDA ITEM 1: CA&L TO ORDEli AND RO&L CALL ITEM 2: ~GEYdDA RPPRCDt7RL ITEM 3: APPROVAL OF MEETING Si3NiMp.RY -- July 12, 20d7 LTEM 4: PER30N5 SCfiEDULEII TO BE IiEARI3 ITEM 5: C1L13 SY7SINESS a. Diseussion -- Update on Runway Safety Improvement Project b. Discussion -- Taxiway Designations c. Discussioa/Recommen3atioa -- Ordinance 2230-2007 ITEM 6: NEW BUSINE3S a. Discussion/Recommandation -- Composition of Airport Commission IfiE1Vi 7: REP012T a. Cornmission Chair b, Airport Manager c. City Council Liaison iTEM 8: COMNSISSIONER ~OMMENT6 AND pUESTIONS ITEM 9: PERSONS I~tf3T SCHEDULE3} TO SE HEARD ITEM I0: IPdFORMATION ITEMS a. Kenai City Council Meeting Action Agendas for July 18 and August 1, 2007. ITEAS 11: 129 KE1~AI AIRPf3A2T CCtMMISSICIN AUGI7ST 9, 2a0? ~x~a ca~rY cov~caL c~avcsERs ~:oo P.~s. CFIAIR HENRY KNACKSTEB3T, PRESlI3INCr MEETYNG SUNdMARY ITEIV[ 1: CALL TO pRDER AND ROLL CALL Chair Knackstedt called the meeting to order at approximately 7:00 p.m. Roll was confirmed as follows: Commissioners present: J. Bielefeld, H. Knackstedt, and L. Porter Commissioners absent: J. Zirul, C. Versaw. E. Mayer, D. Haralson Others present: Acting Airpart Manager M. Bondurant, Council Member R. Mo11oy, City Attorney C. Graves No quorum, ITEM 2: AGE~TDA APP'AOVAL ITEM 3: APPROVAL OF MLETING SUMMARY -- July 12, 2007 Y'TEhY 4: PERSONS SCHLI3ULEY? TO BE IiEARD PTEM 5: OL~ SUSINEBS a. Diseussion -- Update on Runway Safety Impro~~ement Project b. Discussion -- Taz~iway Designations c. D'ascussionJRecammendation -- Ordinance 2230-2007 faEM ~: a. Discussion/Recommendation - Composition of Aupart Commission ITEM 7: REPOIZT a. Commission Chair b. Airpart Manager a City Councii Liaison ETEM 8: COMMiSSIONEFZ COMMEIdT5 f9PiE3 OUESTYQNS ITEM 9: PERSt9N8 NdT SCHEDITLED T4 BE HEARD YTEM 10: INF°ORMATION I2'EMS 130 a. Kenai City Council Meeting Action Agendas for July 18 and August l, 2007. ITEM 11: ADJOURRME2iT Due to the Iack af quorum, the meeting adjourned at approximately 7:OS p.m. Meeting summary prepared and submitted by~: Carol L. Freas, City Cierk AIRPORT CdMMISSION MEEZ'ING AUGUST 9, 20U7 PAGE 2 131 KENAT KARBOR COMMISSIQN MEETING AUGU6T b, 2007 FCENAI COUDTCTL CHfAMSERS 7:OQ P.~1I. AGERY3A ITEM 1: CALL TO ORIIE32 8c I20LL CALL ITEM 2: AGENDA APPROVAL ITEM 3: APEaROVAY. OF ~2EETYNG SUYVFMARY -- 3uly 9, 2007. YTE~I 4: PER30Id3 SCFfEDULED Tff BE IiEARD ITEM S: OLT3 BUSYNESS a. Discussion -- Meeting Schedule b. D'aseussion -- Dip Net Fishery c. D'sscnssion -- New Drift Boat Haul-Out d. Discussioxi -- Kenai River Bluff Erosion Project ITEM 6: NtEW BUSINE58 ITENf 7: REPORTS a. Director b. City Council Liaison ITEM S: CC1MriITSSIORtE12 Ci7MMENT6l4UESTIONS ITEM 9: PERSONS NOT SCHEDIILED TO SE FIEARD ITEM 1Q: INFOR.I6RATION a. Kenai City Council Action Agendas of July 3 and July 18, 2007. b. Public Notice of Application far Permit TTEM 11: 132 KENAI HARBtbR COIViMISSION MEETING AUGUST 6, 2007 KEIVAI COLTNGYL CHAD/IBERS 7:00 P.P9. CHAIR '£dM THOMSSON, PRE5IDING MEETYNG SUMMAE2% ITEM 1: CALL TO ~RDER 8s ROLL CALL Chair Thompson called t canfirmed as follows: Commissioners present: Commissioners absent: Qtners present: he rneeting to arder at approximatelp 7:00 p.m. Roli was P. Morin, G. Foster, A. Poynor, T, Thompson, R. Peters R. Canady Parks & Recreation Director R. Frates, Council Member M Boyle A quorum was present. ITEM 2: AGENI}A APPROVAL The agenda was approved as presented. YTEM 3: APFR4VAL OF MEETING SUMMLARY -- July 9, 2007 The meeting summary of 3uly 9, 2007 was approved as presented. TTEM 4: PERSONS SCIiEDYTLED T~ BE HEARD -- None ITEM 5: OLD BUSINESS 5-a. D'xscuasion -- Meeting Schedule Chair Thompson reiterated the Harbar Commission meets on the fu-st Monday after the first Council meeting of each month and requested a motion be made to tnat effect. MOTION: Commissioner Morin MflVED Harbor Commission meet the first Monday after the first Council meeting of the month. Commissioner Poynor SECONDED the motion. There were no objections. SO ORDEREU. 5-b. Discussioa - Dip Net Fishery Thompson noted Administration provides a Dip Net Report for the Comrnission's review in October, Suggestions included ramp attendanis during peak tirnes and pamphlets that explain ramp procedures. Further suggestions will be withheld until the report can be reviewed. 133 5-c. Discuasfaa - New Drift Boat Haul-Out Director Frates referrefl to the property ownersnip map provided. Discussion included: • Pras and cons bf various properties. . There needs to be a lower river pullout. • Possible use of easements bordering Lofstedt and former Cone property. Commission recommended Frates bring more information related to the easements possibilit~~. 5-d. Discussioa -- Kenai River Bluff Erosion Project Frates reviewed the Bluff Erosion Project Summary from the packet. Discussion included: s Administration does not agree with economic loss figures. 4 Some irtformation from the State of Alaska was not yet availalale. • Concerns about groundwater well results. F`rates will provide information regarding groundwater well results if available. ITEM 6: ITEM 9: 7-a. Report. -- None REFORTS Director -- Frates noted the staff would be working on the Dip Net 7-b. City CounciY Lia9son -- Boyle suggested, when considering the lower river drift boat puilout, consider the flow of traffic thraugh the community anfl how it could benefit the City. YTEM 8: COMMYSSTONER COMMENTS/4UE^~TIdNS -- None ITEM 9: PERSONS NOT SCHEDULED TO SE HE14RD -- None ITEM iQ; 1CS-m. Kenai City Council Action Agendas of July 3 and July 18, 20Q7. 2~-b. Public Natice of Application for Permit iTEM il: ADJOURNMENT MOTTON: Commissioner NYOVED to adjourn and Commissioner Peters SE~CINLYED the motion. There were no objections. SO ORDERED. HARBOR CdMMISSIC?N MEETING AUGUST 6, 2007 PAGE 2 134 There being no further businessbefore the Commission, the meeting adjournedat approximately 7:50 pm. Meeting summary prepared and submitted by: Corene Hall, Deputy City Clerk HARBOR COMMISSION MEETING AUGUST 6, 2067 PAGE 3 135 KENt1I LYSRARY CQMMYSSYON ISEPiAY Cf7UNCIL CHAMSERS E~UGiTST 7, 2007 ?:00 P.M. ACrENI3A YTE&I 1: I3'EM 2: ITEM 3: YTEM 4: ITEM 5: a. LTEM 6: a. b. YTEM 7: a. b. c. CALL TO QRDER & ROLL CALL ACaEN13A APF'RdVAL APPROVI~I. OF MEETIPIG SUMMARY -- June 5, 2007 PERSONS SCHEDULEU TCf BE HEAf2D OLI} BUSINESS Discussioxs -- Goals and Objectives NE~6 BUSI111E6S Discussion -- Library Bond Issue Discussiott -- Law Lihrary/Courthouse REP4RT5 Director Friends of the Library City Council Liaison I'd`EM $: COMMISSIdN ~OMMEN'CSlpUE3T'IONB ITEM 9: PERSONS NCiT SGYiEDULED TQ BE kIEA12D ITEM ld: IPdFQRMATION a. Kenai City Council Action Agendas of July 3 and Ju1y I8; 2009 LT'EM 1Z: ADJOURNMEPiT 136 KENAI LIBRARY CON#MI5S%f7AT KENAI COiFNGIL CIiAMBERS FiUGLJST 7~ 2007 7:40 P.M. CFIATR BQB PETERS, PRESTTJIN~ ~~ETax~ suNem~~~ ITENL 1: CfiLL TO ORDER & ROLL CALL Chair Peters cailed the meeting to arder at approximately 7:00 p.m. Ro11 was confirmed as follows: Commissioners present: K. Heus, E. DeForest, R. Peters, C. Brenckle, C. Cook, R. Gilman Commissioners absent: E. Bryson Others present: Library Director M. Joaner, Council Member L. Swarner A quorum was present. ITEM 2: AGENDA APPROVAL MOTLON: Commissioner Brenckle MtDVEb to approve the agenda as presented and Commissioner Cook SECORIDED the motion. There were no objections. SO ORBEREI}. ITEM 3: FiPPROVAL OF MEETYNG SUMMARY -- June 5, 20d7 MOTIOiV: Commissioner Cook MOVED to approve the meeting summary of June 5, 2007 as presented. Commissioner Gilman SEC(}NIIED the motion. There were no objections. 80 ~RDERED. YTEM 4: PERS~NS SCHEDULE~ TO BE HEARD -- Nane. BTEM 5: OLD TiUSINES~ 5-a. Discussion - Goals and Objectives Director Joiner reviewed the draft goals and abjectives. Commission comments included: • Esplore reinstating Sunday summer hours. o Did not like the new layout of goals and objectives • Encourage hiring summer temporary staff. £TE1Vt 6: NEW BUSIN~~S 137 6-a. Discuss'son -- Library Bond Issue Joiner provided a copy of Resolution No. 2007-43 to commission members. Commission comments included: • Council Members 9warner and Robert Molloy were on "Sound Off with Jainer regarding the resolution. + Find out how Legislators feel about the bond issne. • Commissioners would like to knaw what they can say publicl}- regarding the bond issue from the City Attorney. . WiL Administration have information for the public regarding the bond issue? Commission recommended the Borough Clerk be contacted regarding the voter pamphlet. 6-6. Discnssion -- Law LibrasyJCourthouse Commissioner comments included: • Local attorneys are unhappy tne Courthouse no ionger has the Iaw fibrary, • Possibility of adding the law librasy to the expansion praject. ~ City Attorney and City Manager are not in favor of adding the la~u library to the expansion projeet. ITEM 7: REPORT$ `7-a. Dasector -- Joiner reported on her attendance at tne American Library Assaciafion conference and summarized the meetings she attended on transforsning libraries. She noted Mary White had been hired as chiidren's librarian. 4-b. &'xiemds of the Library -- Heus reported on the upcoming boak sale. fihe organization has legally changed its name from Kenai Community Library, ine. to Friends of the Kenai Community Library. 7-c. L'itg Couneil Liaisan -- Swarner announced the twa positions open for city council as well as the mayor position. She stated she would miss the October meeting. ITEM 8: CCPM~iISBIOI+I COMNiENTS/QUEST%~NS Peters reported he had heard a radio announcement s"or the book sale and flid not feel the change in location was important to the success of the sale. Heus reported book donations for the sale were good. Brexcekle asked when raffle tickets wouid be available. LIBRARY COMMISSION MEETING AtJGUST 7, 2007 PAGE 2 138 DeForest stated she would like the goals and objectives to be less lengthy. Cook reported she would miss the October rneeting du e to elections. C:ilman stated she felt things were good and moving forward. ITEM 3: PERSONS NOT 6CEiEDULEY3 TO BE HEARD -- None. ITEM 10: IIVFORMATICDN 10-a. Kenai City Council Action Agendas of Ju2y 3 and Ju1y 28, 2p07 ITEM lI: ADJC9URNMENT MOTYOflt: Commissioner Brenckle MOVED to adjourn and Commissioner Gilman SECONI3ED the motion. There were no objections. SO ORDERED. There being no further business before the Commission, the ineetzng adjourned at approximately 8:19 p.m. Meet'sng Sumrnary prepared and submitted by: Corene Hall, Deputy City Clerk LIBRARY COMMISSION MEETING AUGUST 7, 2007 PAGE 3 139 CITY OF KENAI PLANidIIV~ & ZQI'~ING CdMMISSIC/1V AGENDA CITY COUNCIL CHAMBERS Angust S, 200'7 - 7:04 p.m. I. CALL TO ORDER: a. Rotl Call b. Agenda Approval c. Consent!~genda d. ~~xcused Absenees ~ Tony I,ewis (Req~ested via email) Consent Agenda *Atl items listed with an asferisk (~ ) are considered to be routine and non- caniroaersial by the Commission and will be approvad by one motion. There wi11 be no separate discussion of these items unless a Commission Member so requests, in whieh c~se the item wiil be removed from the Consent Agenda and considered in its normal sequence on the,agenda as part o'FChe. General Orders. 2. xAPPROVAL O~F MTNFJI'~S: - a. *JnIy 25, 2007 3. SCHEDUT,ED P[TSLIC COMMENT: 4. CONSIDET2ATIf3~v f?F PLATS: 5. PUBLYC ~lEA1tT~*VGS: a. PZQ7-40 - An applicafion for a Conditional Use Permit for a 18U-foot microwave- repeating tower f'ar the property known as Tract B, Alaska Land Survey 79-57 (2415 RedonbY Avenue} Kenai, Alaska. ftipplication submitted by GCI, 2550 Denali Street, Suite 1000, Anchorage, Alaska. b. PZO'7-42 - An appIication for an Encroachsnent Permit for a 6-foot front setback for the properry knawn as Lof 4, Block 14 Origutal Townsite of Kenai (1011 Alaska Ave.} Keuai, Alaska. Application submitted by Iiazxf P. Cherrier, T24 East 3`d Ave., Suite 311, Anchorage, Alaska. 6. dLD BDSI?~~ESS: a. P706-75 - Conditional Use Pennit - Bed & Breakfast - Lot Z, Btock 2, IlIiamna View Subds~~ision (A 520 i~enaitze Gourt) - MeKenzie - Status. 7. NEW BUSINESS: a. PZ07-43 - An application fox devefopment 'sn The Townsite Historic zone for a storage shed for the properfy Irnowu as Lof 4, Block 14, Original Tov.~site af ICenai (1Q11 Alaska Avenue). AppIicatron submitted by I~ani P. Chei7ier, i24 East 3rd Avenue, Suite 27, l, Anchorage, Alaska. 6. Residantiat usein the CG - General Commercial Zone - Discussian. 140 ~. rEr~~zNC ~r~MS: a. PZ07-24 - A resaluflon of the Planning and Zaning Commission of the City of Kenai, Alaska, recommendin5 to the Council that KMC I4.20.200 (.Accessory Structuras) be amended by adding a section prohibiting the use of connex-type metal shipping containers for storage in residential zones. (Posiponed 7/i l/d7 - no time certain.) b. PZ07-25 - A Resolution of the Planning And Zoning Commission of the City Of Kenai, Alaska, recommending to the Council to enact KMC 9.10.OI5 requiring dumpsfers to be screened on at least three sides. (Postpoiied 7l11/07 - no time certain.) c. PZ07-28 - A resolution of the Planning and Zoning Commission of the City of l:enai, Alaska, recammending to the Council that KMC 12.20.d36 be amended by better describing and defining what constitutes prohibited storage of ".Tunk" "Garbage" and "Litter" under the City code. (Po-stponed 7/? 5/07 - no Eime certain.) 4. REPORTS: a. City Council b. Boraugh Plannin~; c. AdminisCration I.O. PERSONS PRESENT NOT SCHEDULEI3: 11. INFORMATICYN ITEMS: a. PZO?-41 - I.andscape/Site Pla~i - GCI Communications - 2415 Redout~t Avesiue b. PZ07-39 - Laudscapel5ite Plan - Itogers Maintenance - 6543 Kenai Spur Highway c. "Zoning Bulletin" - Jnly l, 2007 d. Code Enforcement Reports - Jw~e & July 2007 12. COMM3SSION COMMENT6 & QL~;STTONS: 13. ADJOURN1t~I~I!"C: 141 CITY OF KENAY 1PLANNIlVG & ZONING COM AU~II5T 8, 2007 a:oa P.~. CI2`Y COUN~IL CFIAMI CHAIR 3EFF TWAIT, PttESIDIISCs N6IlVt7'fES ITEM 1: CALL TO ORI3ER Chais'Itvait called the meeting to order at approximately 7:00 p.m. 1-a. Roit Call The ro11 was taken and confirmed as fallows: Cammissioners present: R. W ells, J. 'I~vait, P. Brgson, R. Smagge, S. Romain Commissioners absent: T. L,ewis (excused) C~thers present: City Planner M. Kebschull, Couneil Member R. Ross A quorum was present. I-b. Agenda P,pproval MOTION: Commissioner Wells MOVEII to approve the agenda as presented. Commissioner Brvson SECOIQDED the motion. There were no objections. SO OI2DERED. 1-a Cousent L4genda MOTYOAt: Commissioner Smagge N[OVED to approve the consent agenda as presented and Commissioner Wells SECONDED the motion. There were no objections. SQ3 ORDERED. ~-d. Eazcused Ahseaaces Tony Lewis (Requested via email) ~lpproved by consent agenda. Consent .o.geuda *Atl itexns listed with an asterisk (") are considered to be routine and non-controversial by the Commission and will be approved by one motion. There will be no separate discussion of these items unIess a Commission Member so requests, in which case the item will be removed from the Consent Agenda and cansidered in its normal sequence on the agenda as part of the General Orders. F'~EM 2: APEyRQ957PdL OF NLINIITES - July 25, 2007 142 Approved by consent agenda. ITEM 3: SCHEDULED PLTSLIC COM~ENT -- Nane ITE11Z 4: CON3IDERA.TtON C)F PLATS -- None ITEM 6: PLTBLIC EiEP.I2%NGS 5-a. PZ07-40 - An applicadon for a Gondition,al Use Permit for a 180-foot microwave-repeating tower for the properiy knawn as Tract B, Alaska Land Sun~ey 79-57 (2415 Redaubt Avenuej Kenai, Aiaska. Application submitted by GCI, 2550 Denali Street, Suite 1000, Anchorage, Alaska. City Planner Kebschull reviewed the informatian presented in the packet; noted, due to the tower height, FAA approval was required and was received; and, the o1d tower will be removed after the new one has been successfully installed. 1t~vait read Che rules for public hearing, and opened the meeting to public hearing. lhere being no comments, the public hearing was closed. MdTIQN: Commissioner Bryson MOVED for approval of PZ07-40 incorporating all staff comments and Commissioner Smagge SECfSbtI3EU the motion. Ken Car2sog, GCd Communications -- Procided the Commission with a copy of the FCC requirements for removal and replacement of the tower. Coinmissioner cornments included: • Bryson noted he believed the application met tl2e intent of the zone and the current tower was placed prior to the city assusning zoning powers. VOTE: Excused MOTIOPt PASSELI UNAATIMCDUSLY. Twait read the appeals proeess requirements, 5-b. PZ07-42 - An application for an Encroachment Permit for a 6-foot £ront setback for the property knoum as Lot 4, Block 14 Original Townsite of Kenai (1011 Alaska Ave.) Kenai, Alaska. Application submitted by Kent P. Cherrier, 124 East 3=d Ave., Suite 211, Anchorage, Alaska. PLANNING & 20NING COMMISSIOAT MEETING AUGUST 8, 2007 Pt1GE 2 143 I{ebschull reviewed the packet information and Chair Twait opened the public hearing, Dan ~aker, 1010 Ataska Avenue - Supports the petition. Site is well maintained. Cornmissioner comments included: . Bry~son reported he visited the site and noted the site pIan included in the packet did not indicate the paved parking, 1awn, and telephoile pole on one side of the shed that would restrict development to the site. He added, he wouid support the motion because the site was well developed and relocation of the shed would require placement eiTher into the paved area or lawn. There being no further comments, the publie hearing was closed. MQTION: Commissioner Bryson NiOVED for approval of PZd7-42 with staff coinments and Commissioner Smagge SEC~NDED the motion. VOTE: ~ Wells ~ Yes j Twait ~ Yes I Bryson _ I Yes ~ , Smae~e Yes I Lewis ' Excused ,: Romain ~ Yes ~LOTION Pt~SSED LTDIANFMOUSLY. 'I~vait read the appeals process requirements. ITEM 6: OLD BUSIPTESS 6-a. PZ06-75 - Conditional Use Permit - Bed & Breakfast - Lot 2, Block 2, Illianuza View Subdivision (4520 Kenaitze CourtJ - McKenzie - Status. Kebschull reported the permit had not been issued because the app£icant had not met the conditions and therefore would need no review by the Commission. ETEM 7: NEW SUSINE3S ?-a. P207-43 - An application for development in the Townsife Historic aone for a storage shed far the property l~own as Lot 4, Block 14, Original Townsite of Kenai (1011 Alaska Avenue). Application submitted by Kent P. Chenier, 124 East 3*d Avenue, Suite 21 l, Anchorage, Alaska. Kebschull reviewed the staff report in.cluded in the packet. MOTIOPF: PLANNING & ZONING COMMISSION MEETING AUGliST 8, 2007 PAGE 3 144 Cornmissioner Wells MOVED to approve the application az1d Commissioner Bryson SECpN~EF3 the motion. VOTE: Wells Yes Smaeee Yes MOTYCIN PASSEIf UNANIMOUSLY. 7-b. Discussion -- Residential use in the CG - General Commercial Zone Kehschull reviewed an August 2, 2007 memorandum sent to the Commission noting Adsninistration requested Commission's assistance in reviewing residential use in the General Commercial zone. The Commission requested addiYional information be pronided from the City Attorney for their ne~t meeting. There was no further disc~zssion. ITEM 8: PEI~DING ITEMS 8-a. PZ07-24 - A resolution o£ the Plazu-ung and Zarung Commission of the City of Kenai, Alaska, recommending to the Council that KMC 14.20.200 (Accessory Structures) be amended by adding a section prahibiting the use of connex-type metal shipping wntainers for storage in residential zones. (Postponed 7J 11 /fl7 - no time certain.j 8-b. PZ04-25 - A Resolution of the Planning And Zoning Commission of the City Of Kenai, Alaska, recommending to the Council to enact KMC 9.10.015 requiring dumpsters to be screened on at Ieast three sides. (Postponed 7/ I 2/07 - na time certain.) 8-e. PZO~-28 - A resolution of the Planrung and Zoning Cornmissian of the City of Kenai, Alaska, recommending to the Council that KMC 12.2Q.030 be amended by bettez describzng and defining what canst,itutes prohibited storage of "3unk," "Garbage" and `Zitter" under the City code. (Postponed 7/25/07 - no time certaui.) ITED2 4: REP(3RT5 9-a. City Conncil -- Ross explained the change in Ordinance No. 2246-2007 regarding wholesale businesses. 9-h. Baraugh Pianning - No report. PLANNING & ZONING COlVEMISSION PvIEETING AtIGUST 8, 2007 PAGE 4 145 4-c. Atlmixtistratioa - Kebschull reported the Commission should consider rezoizing in the Angler Acres Subdivision and added, the State now requires seasonat lodge liquor licenses for places currently providing free alcohol to their guests. ITEM 10: PERSQANS PRESENT NOT ~SCEiEDVLED -- None. ITEI~i 21: I13FORMATIOlV ITEMS 11-a. P20'7-41 - Landscape/Site Plan - GCI Communications - 2415 Redoubt Avenue. T 1-b. PZ07-39 - Landscape/ Site Plan - Rogers Maintenance - 6543 Kenai Spur Highway. I1-c. "Zoning Sulletim" -- Ju1y 1, 2007. l I-d. Cade En£orcement I2egorts -- June 8v July 2007. ITEM !2: COMMISSTON COMIY~NfiS & QUES'TIONS - None. %TEM 13: ADJ4?URNMENT MOTION: Comrnissioner Romain MOVEI7 to afljourn and Commissioner Bryson SECONDE&3 the motion. Tfiere were na objections. SO ORDERED. There being no further business before the Comrnission, the meeting was adjaurned at approicimately 7:40 p.m Minutes prepared and submitted by: Corene Hall, Deputy City C1erk PLANNING & ZONING COMMISSION MEETING AUGUST 8, 2009 PAGE 5 146 CITY OF I~:ENAI % ~~~ \ tlreufyof'/ I~N ~ IIA DATE: O ~ 3 "-t~-? NAME: ` i!/~-~t ~ `~ "Village with a past - City with ¢ future. " BACKGROUND AND PERSONAL DATA - CANDIDATES FOR APPOINTMENT COMMITTEES AND ( ~'~- <;°- r ~ dry,M"~'~° ~-, ~ -~~, t ~ ~;t,l~ ~ ~ F { .wp F ., ; ""w-..,....,n ,; ~:.~r ~~~'~~a =e..a RETURN TO: KENAI CITY CLERIi 210 FIDALCsO AVENfTE KENAY,AK 99611 PHONE: 283-9535, EXT. 23`1 FAR: 288-5068 Resideat of the City oF Kenai? Vi C S How loag? ~~ /S Resideace Address w~ Mailing Address I~.~~ ~`~~h ~~s`7 Home Telephone No. Y~"7 3Y%S d Home Faac No. Business Telephone No ~`ca7~ a- ~~- sb ~S ~ ~ x~ C Business Fax No. 2L b- S I~ i Email Addresx ~ w~r (e ~. c a~ May we include your contact information on our web page? ALL If not all, wh t information may we include? EMPLOYER: ~~~~5 ~+-~'tio '/ ~i-S~ ve GSS ~Jan~~ia-.~ Job Title nJuSin~SS ~e%Go~. S~ear° ~~/t ~"bS~sfww`t ~ u.~r~.s , ~e+af~ NAME OF SPOUSE: ~w ~~ i V~ a,r ~ f Curreat membership in osgan9aatioas: Past argaaizational memberahips: COMMITTEES OR COMMISSIONS YN WHICH YOU ARE INTERESTED: ~~G,h n~~., ~ Zpn i w~, ~ WHY DO YOU WA9~N~T TO BE INVOLVED WITH THIS COMMISSION OR COMMITT~EE? ~" w~h(~ 1~W~ ta ~z.1GC n11 a~-~~~',oKw~ rGSNoks~ b~l>d1~c-s wRO~rih !'+~-, ~'~erLU.,,~l~l WHAT BACKGROUND, EXPERIENCE, OR CREDENT7ALS DO YOU POSSESS TO BRING TO THE BOARD, ~~~o~avnUM Ta: rrotn: City Council Larry Semmens, Finance Director ~ Date: August 8, Z00'7 Subject: Credit cards City water a~id sewei- customers are now able tc~ pay their utility bills witl~ a credit card throngh Offieial Payments Coip. Customers using this option will 6e eharged $3.50 per transaefia~l up to $400. Payments in excess of $400 ~n~ill require more than one transaetion. The service is available via telephone or internet, but technically not at C'sty Hal1. If someone coines to Ciry Hall u~anting to use this method of payment we inten.d to aIlow him or her to use a telephotle to call Offioial Payment Coip. The internet option is quite attractive because a customer can establish an account and automate their payment. Official Payinents Corp. is used by a number of municipalities and Enstar. expect there wi11 be some complai~ats about the $3.50 convenience fee, but for people who want to pay wifl7 a credit eard tl~is is a viable option. '~re wzll begin using our City of Kenai corporate purchasing cards this month. The program will start with a small number of einployees until we becoine proficient with Yhe sy~stein. I expeet tlle use of purchasin~ eards to t~e more ef£icient aa~d provide greater control than our current fnethod of purchasing. 147 MEMORANDUM To: Rick Koch, City 1VIanager I+rom: Kathy Romain, Kenai Senior Center Date: August 7, 20U7 Subject: July Monthly Repart Total number of days rented in July 2007: 8 We had 1031 volunteer hours for 7uly. Total Meal Count for July 2007 Congregate March Meals: 1,136 Home Deiivered M'eals: 2170 Total 3,3d6 Totat Meal Couext for JnYy 2002: Congregate Meals: 1,134 T3ome Delivered Meals: 1.138 ToYal 2,2'1~ JuIy began u~ith our 4th of July Am~ua1 Fundraiser. We were able to raise ovar $~,000 selling hotdogs, pies and tickets for our Quilt Raffle, Countless volunteers helped make dlis one of our most successful years everi Our I~enai Line Daucers have been performing ali over the State, including the Bear Paw Festival in Eagle River and the Saturday Mar}cet in Anchorage, as we11 as ma~zy locaI events. They wi11 be perfornung at both Fairs coming up in AugusY. Our office has been very busy with the new Senior Benefits Program. We have been contacted by many seiuors in and out of our area and consrstently see neW faces. Kathy had 24 individual appoizxtments regaz•ding 5ocial Security, Medicare, Medicaid and the iiew Benefits Program. The Kenai $ell Ringers have perfoimed 3 Cimes in Uie month of 3uly and will be performing at the Ninilcluk Pair. This group's average age is 81 and they are most amazing! 148 Kenai Cammanity Library Month[y Reparf August2007 July Ci~•culation Figures AduiC I'iction 2296 Internet Access T627 Adult Non-Fiction i^84 Music I19 Periodicals 79 Puzzles 7 3uve~ile Pietion 6&8 Videos 783 iuvenile Nan-FicCion 223 DVDs 1571 Easy Fictton 134? Audio Uooks 150 Easy Non-Piction 259 Miscellaneous 7 Interlibrary Loan 12 Computer Programs 29 Total Prinf 6,148 Total Nc~n-Print 4,293 Tofal Circulation 10,441 Internet Express Use 1,204 Tofat Catalog Searches 5,249 Librnry Visits....... IQ,520 In-House cireulatian I3S Downloadabte Audio 60 Circulation figures for July were 2°,% higher than those for Jniy 2006. The number of people who waited for computers this month was 540. Please note that our Internet use is artificia(ly low, because we have had a hardwaa~e maifiznetion and the T~iternet az1d our website have been intermitteiztlv down throughout the month while our `com uter u s' h to ~x +hP P g Y 'Y problem. Income rines and Rental Books $ 1,144.05 3ierox 299.SQ Lost/TJamaged 153.90 Total income 07/07 $ 1,59~.45 Additions ta collecfion 478 Withdrawals from collection 0 Fntertibrary Loans I3ooks Ordered 17 Raceived 14 Returned 17 Loaned Uy us 18 Volunteers 5 Hours 7] Library Cards Issued Jnly 20Q7 Kasilc~f 8 Kenai 51 Nikiski & i~zinilchik ? Soldatna 9 Sterfing 8 Non-Residen4 31 Organization & Other 9 Internet use onlv 22 'I'otat 148 Adalt Programs .......... 4 Persons .............. 13 Children's & Family Pro~rams.... 10 Participants ................................. 322 Fun Fact: We are curretzHy sharu~g 1,878 electronic audio bQOk titles wifh the ofiher participating libtBries in Alasl<a. The retail value ofthis coltection is $77,057. Ninety {40) Kenai library card halders reg'tstered to use this service since sCart up wiYh 417 clieck outs of maYerial since Ja~7uaxy. 149 Airport fVianager's Monthly Report August 15, Z047 Runway lmprovement Project: The contractor has completed the northern e~tension of taxiway A, all the excavation and fili for the runway widening and' extension, milied and paved 162 feet of the 200 foot new runway widfh, and about 5d% of the electrical work. Runway paving and grooving should be completed by August 24 then the runway painting begins. The NAVAIdS together with the FAA flight checks should occur the last part af August and be completed around the middle of September compieting the pro}ect. The water runway opened for operations on July 25. The excavation crew has moved to the water rur~way fcr the widenir~g part c# t"e prcject and should be compleied by November 1, 20Q7. The water control valve wiN be closed to aliow winter and spring refiil. Approximately $8.7 million of fhe $10.6 million contract has been compieted. Enplanements: Enplanements were significantiy up for July which continues to be the airlines busiest month for passengers. Era attribuYed their inerease to capacity, ofFering meny mare flights than years past. Grant Aviatian had a record month since coming fo the Kenai airport. Fish Haul: The fish haul flights are continuing through the end of August by Northern Air Cargo, Lyndon Transport, and Universal Aic Airport Projects: The new automated sprinkier system has been instailed in the airport triangie. This system will allow for a more efficient watering ofi the grass and flowers. 150 nnunGcipa~ sairporrc K~nai Po1i~e Otepa t I r ~~u To: Riclc Kach, City Manager From: Chuck I~opp, Chief of Palice ~ Daze: 08/0812007 Re: 3uly Activity Report - Police & Commumcarians f3verview 7une saw 918 calls for service, 103 ofthose being reported by 9-1-1. This represents an 11% increase over July 2007. JuIy is a predictably hnsy month due to the State Persana7 Use Dipnet Fishery, recreational activity, commercial fishing operations, construction, and touzism. Officers wrote 55 speed citations, 39 seatbeft citations, and 32 citations for other driving infractions. 137 warnings were issued for motorist traffic violations. Officers wrote 298 reports, and rnade 72 arrests. 1 I motor vehicle crashes were investigatad, 2 of which were caused hy drunk drivers. Signifieant Creses, Training8c DepartmentAetivities July 10 - 31 the department was busy with management of the Dipnet Fishery. Tha department's goal is to manage tha fishery participants and process in a manner that promotas the health and safety af City residents and fishery participants. Annuai After Action Reviews (t1ARs) by City deparCment leadership continues to imprave this fishery each year. The Annual Dipnet Report will be brought beFore the Council in late September. The department had ane ~xtensive case of juvenile crizninal activity involving the throwing of potatoes at vehicles on the Kenai Spur FIi~hway adjacent to Tanaga; pushing lawn items off the bFuff on Toyon, and lobbing objects at vetucles from 5. Forest municipal park. 2 adults, and multip2e juvenile offenders were idenrified and interviewed. Criminal charges are pending. Officer Kelly George attended Che Nafronal D.A.R.E. Officers Association Conference in Nashville, Tennessee. Lieutenant Wam~a.maker and Officer Mitler attended a one-day Stata & Looal Anti-Terrorism Training (SLATT) seminar in Anchorage. Officers Ross and Langham attended a 40-hour bloodstain pattern analysis class in Anchorage. a~ Page 1 ~ 151 Oi~cer Tarnage and canine partner Chevron completed their Canine Academy training in Pairbanks on July Z0. df~icer Turnage and Chevrnn were the class valedictorians. Chevron has already made two successful drug interdictians on traffic staps, resutting in a significant quantity of marijuana being taken off the streets anfl drug traffickers going to jail. Canine Clievron brings ta the department a broad skill set including general patrol work support, search and rescue, tracking and drug interdiction. Dispatcl~er Erica Shinn atteuded the American Heart Association Basic I.ife Support (BLS) CPRJAFD certificatian class at Central Peninsula Haspital on Suly 17. Oflicer Miller aLtended two v~~aeks of Special Emergency Response Team training. e Page 2 152 AldII19~AL CONTROL LM1iTAI~E REPORT atn.Y zao~ TN'I'AKE DISPO~ITIO"N ST'R.A.Y: 105 ADOPTED: 64 Dags 71 bogs 35 Cats 34 Cats 28 Other Animals 0 Qther Animals: 1 RELEAS~D BY OWNLR: 60 CLAIMED: 41 Dags 28 Dogs 29 Cats 31 Cats IZ Other Animals 1 Other Animals 0 D.Q.A.: 9 EUTHf~IVIZED: 60 Dogs 4 Dogs 35 Cats 4 Cats 25 Other Auimals i Other 0 WILDLIFL REL~ASE 0 BORO ANLMAL.S 49 Tt?TAL DOCrS 103 TOTAL CATS 69 TOTAL OTHER ANiMALS 2 Field Invesfigations 85 Volunteer hours 125 Total phone calls 456 153 Code Enfarceynent Offi~er Sammary I2epart Period: July 2007 New Cases ---~ ~~ Trash/Debr'ts 0 ~ ~ Junk Vehicle I I 8 ~ Commercial B1dg. Maintenance j Abandalled E i Vehiolelproperty ~ 5 i Cam~iizg ~ Of~her: ; ~ ~ Tara~ ~ 13 ~I Pendine Cases 4~ ' Trask~/Debris ~ ~ i 7 Junk~ i. ] 3 ' Conunercial Bldg. Mainienance , i 2 ~ Abandpned Vehicle( rp ~ ~ Other: HTP - 16 i ~ Woodlands - 2 18 Monitoring Only; fo~° continued oom Iiance ~I ~ i Total ~Q i Closed Cases ~~ TrashlDebris ; 4 4 ~ Junic Vehicle 7 Cominercial $ldg. m Mainte~ance 0 , Abandoned Vehiclelproperty I 5 I dflier: HTP x 9 1 Crrass/weeds x i I O ' To~- z~ Cifations Written: 1- Junk Vehicles 2- Trash Debris Court Appearances: 0 Imnounds: 1 1V'otes: Jason Steen, K40 ~'.enai Gode Enforcement dfficer 154 ~ N ~ ~ •~ z ~ ~ o ~ (~~n. °~ o ~ ~ ~ ~ Z ~ ^ Q m ' ° a I " d s o y .,' ` , a a~ n o a ~ ' fl ' ~ O W O O C ~ W O 0 N O O C 'I G~ O T ~ ~ ~ O I M O M en r~ (~ c q e- W 1t} < ~• 'a j ~,. U 6~ r`n ra <'a m` m = q~ d~0 2 I a`+ ~ ~ d I i F ~ o d a o n n n ~ r~ N ,~o o 0 o rn ~ ~ o y~ r y I m i C c> ~ ~ ~ ~v I a~ N m r v ~ m i a7 c V d ~ C G C .~ ~ p~ ^ p" ~ ~- a I p C ~ ~ C O ~ O 0 O ~~ i 6. W U y ~ m~j t~U m~ ~ ~ ~ ~ ~ o$ 5 m~ _ m ~ c ~ ~ > > 2 .D Y N ~ V d ~ C C E U'O 10 + O ~ 4 d 0 ~c ~ i d p' o 0 c o~ v Q 2 -o W U Z U } Q 2 m L ~ (~ 01 i p ' d ~ N .~~. N ~, 'L~ ~ = i m c0 NS ~ s j !4 L' i L O ( j a = ~ (A L N O N a: I ~ ~ U U Zw Z°' i~ a p O ~ Y ~ ~N ~'U ~ U i ,, I ~ p c~ ~ c E ° E m , c d ~ W ~ U i c~, ~ ~ ~ -"~ ~ ~ n ~Q l5Q ~ o m i i m i d o o y , 0 0 ~ w I Q' ~ ( ~ v u~ c v 4 ~ I ~'n m t~t ~n N ~ ~ ~ : I ~ ~ ~ m ~ ' @} ~ ~ ~ ~ I a o ~~ o 0 0~ o ° 0 :~ a m ' rnE~~~ ~d °E ~Q ~a ~nE c NE I(t1 O ~ n m ei. ~ .- c~ .u> a cn <v c~ ev .r a ~ d o 0 o ~ o i E ~ o ~ i I ~ a d N o. ~ 4 d c°~v ~~n. E ~"p~ E 4 d~ Z ~!1 N Z Z [~ M t9 N V' V f6 Z i I ; N N O t0 O O O h h~ t~ G ~ ~ R N ~, - O W ~ p ! ,p. ~ ~. - O O O ~ O 6 ~ ~ ' ~ . ( ) I C N V' . cn i ~i N M ~ f+~ ~` ~ C ~ t N OI ~ - .' ~. m ri+ O C I _ `O O~ O C UJ ~ J N = LL i I C p N O C m ~ ~ ^ ~ a m Z ~ ~ C ~ t~j m 0. ~ I ` - ( (n O. ~ ~ O y y C ~ ~ ¢ E ~ ~ m p ~ a ~ ~ m rn ~ o > ~,~~ I a; ~ ~ ~ ~ ~Up ~ ^~ 4 «~ ~ I ~U ~ N ~ t6 ~ ~ W G 1° W N ' tJ T. ° ~ H ~ ~ o ~ O C '° ~ ++ o E E a ~ ~ N2 ~ i ~ U c . y ady ~y u. y wo ~m'o d 3 ro..°' . o L LLaN i a~ ' o ~ ° i o~o rv m cc YU ~ o>U a 2 4 ao ' =c ` 4 . lZ~ 4 QQ t ~~ ~ N N S 4 z 155 Ih1TERO~FICE ME(VICI~ANDUM ll 1 r~l ~l ~~ ~ ~ Date; Au~ust 8, 2007 To: City Manager From: Pire Chief Tiliy Subject: Midmonth Report Runs for the timeframe of 7-17 ta 8-8: Run totaf for fhe year 738 runs Total last year at this fime 778 runs Last 30 days 102 runs Summary of activifiies for last month: 1} Hosted Safe Kids Car seat Check up 2} Conducted stafion tour 3) Attended Kenai Peninsula EMS Meeting 4} Prepped aii city fire hydrants for painting 5) Continued to work with the Kenai Peninsuia school disYrict to schedule C.E.R.T training for alI teachers in local schools 6) Assisted the new PRISM Management Team from the State Fire Marshai's Office with their transition into the new training facility. 7. Helped with the preparafion and coardinatia~ with Alaska State Soccer Tournament hasted in the City of Kenai 156 % "(~i~f~e wGt~r a Pr~st, ~ity ufs~~r ~ Fr~t~re•, f ` 210 Fidal~a Avenue, Kenai, Alaska 99611-7794 --.r~%, Tetephone: 907-283-3(92 i FAX: 407-283-3693 -,,-~ ~~ _ ::;~ ~ ~ tl~e ci y o f ~ KENQ~ ~KA M~MOxariTnuM To: C,any Semmens, Acting City Manager From: Ro6eri 7. Frates, Parks & Recreation Director I~ate: 8/7/07 RE: i~fid-moath Report - Suly July was particularly busy for the Parks & Recreation Department. Activities included two Iocal softhall tournaments, 4~~' 3uly activities, the dip net fishery aiid performaz~ce of other non-routii~e and routine maintenance acrivities. July was particularly wet relative eo prior years, which assisted gceatly with respect ta turf watering. Consequently, we were able to suspend our night watering at the and of 3u1y a~id redireet atCcntion to other Yasks. Installation of the airport iriaugl~ spxinl~ler system was compleCed early August and will be a welcomed addition The department removed an additionat G beetle kill trees from Municipal Paxk. The remainin~ BBQ ~its have arrived and will be scheduled for installation. Other significant work included ~lannin~ and on-site preparation for the dise golf course expansian. T71e dock's well ~ump became inoperaCive July 22nd and required installatiou of a tezuporary pump to Iceep water flowing at the dock facility. A rep(acement pump has been ordered and is pending replacement. Creurs completed renovation of a secand flowerbed located at Leif Hansen Park and is ready tor additional ~erennial flowers to be instialled next season. 157 %NFORMI~TIt3AS ITEMS KEIdAI CITY CCYUNCLL MEETING ALiGLTST 15, 2007 8/ 15/2009 Purchase Orders Between ~2,500 and $15,d60 for council review. 7/~007 Kenai Municipal Airport Monthly Enplanement Report and Float Plane Basin Activity Report. 8/2/07 It. Howard memorandum regarding 2007 Foreclosure Saie. 158 o °o °o o `rw o d d oi ~ c°~ m °o `S> a6 <' cyi c+i wi ~`~r~ ~i ~ ~l U Z ~ t~S O ~ O O O ~ ~ 0 z a~ °o 0 o ~ ~ T N~ F" ~ Z ~ Q ~ ~ at u. ttt d W ~ a ° ~ t- ~ W N ~ ~ .......~'T U ~a o. U a ~ W U W U ~ ,4 . Z Z a ,, W tn W tA ~ ~ ~ I;- ~ ~ ~ ~ ~ a a ~ Q ~ 0 w z ~ ~ ~ C~ ~ ~ ~ a ~ ~ q, ~ m U U . UJ q ~ Y O ~ N ~ V` O S ~ ~ ~ ~ ~ ~ 0 g ~ ~ `~~' W ~ -~ W ~ W ~ W ~ U ~ U a Z a Z ~ ~ z 0 ~ cs 4 V a O W J ~ U ~ ~ ~ ¢ U ~ ~ ~ w = ~ N O g Z a X o 159 ~ ~ ~~g k! ~` ~. ~'. k f~ ~ Z ~ ~ . ,^ T V ~ ~ ~ ~ ~ C ~ Q _ ~ `~ .~ a-s ~ O ~ ti ~ ~ c+t 160 a w ~ o C ~ a ,~ O ~ U ~ ~ Z O Y> Q t0 O N w z o c = LL n U m O r ~~ za ~a ca ¢ z 0 ~a y ¢ _ G O ~ rn ti ~ ~ ~ ~ ~ h- n N (D ~ h- ~ co rn v v m r~ c~ co _ co r ~ ~ N YO N O M CO ~ N N N N M M M f0 M W O) .- M ~ V' ~ M o'J SO (O M O W I~ [t' M 1~ uJ ' M t0 ~.A ~ ~y- o3 r p c!? n1 n ) O O M co m co m r` r- ~ ai r- n- r- r. tD N V' O ~N 6Ni ~ O) r" o]. M N N I~- a- I~ ~ ~t1 ~ V' "" V ° CP `S' V °" M "' W ~ a o o o o r~~ co co co t~ ~ '- ~ ° t0 ~ n iv r c o m ~ ~ ~ ~ ~ ~ ~ w o r~ ~n v 4l V N N [Y M h O "-~ 9 I`- N W tf1 tli ~ 4n N c0 O) C ~ C _ m Q u > ° U -f0, °u' ~ a ~ = ~ ¢ in o z a 7 ~ ] ~ n C N ~ d ~ ~ C ~ o V ~ R ~ ~ R ,~,;> id i~ c a d T Y r '~} C ~ '_ i ~ ~ y e.+ ~ L R n V '~`a ~a n~ ~ ~ M ~ d ~ ,~ U N ~ i ~ o ".. ,~ i c N ~ ~r ~ ~ c ~ N ~ ic !II ~ F~oar P~s~~ ~~srN a~r~v~rv zoo~-~~07 -------------- - ------------- ------______----- ---- OPERpeTIC)I~tS__ ----- ___~._ ----- ----- Month 2067 2006 2005 2604 2003 APRIL 0 0 2 0 0 MAY 0 99 114 99 86 JUNE 72 151 317 169 158 JULY 17$ 265 327 428 259 AUGUST 251 238 342 287 SEPTEM6ER ~36 227 134 215 OCTOBER 51 160 40 63 NOVEMBER Ciosed Closed Ciosed Ciosed _~------------ -------------- ----------------- FUEL SALES ----------------- ---- ---- ----_ ----_ MontB 2407 2606 20~5 2Q04 2003 MAY $0 $0 $1,035 $452 $835 JUNE $988 ~509 $3,101 $2,2Q9 $1,391 JULY $2.660 $3,138 $3,461 $2,095 $1,773 AUGUST ~2,023 $3,365 $2,p41 $2,513 SEPTEMBER $2,~51 $2,811 ~792 $2,219 OCTOBER 3297 $693 $26 5263 Sfips Renfsd Private 8 Commericai 0 Rev 812003 161 ~ ~~~__ f~eufyof // KENA~ SKA ~r~e~~G~~e Lf1l~~r G€ pG~St Gl~ r~lGt~i tz ~~~~Y'e~/ 210 Fidalgo Avenue, Kenai, Alaska 99611-T794 Telephone: (907) 283-7535 / Fax: (907} 283-3014 www.ci.kenai.ak.us ~1~1~~°~.l~.C~.Lll1~ Daie: August 2, 2007 ~ To: Rick Koch, City Manager From: Kim Howard, Assistant to il~e City Manager ~ ~« I2E: 2007 Foreciosure Sa6e Six of sixty lots were sold by sealed competitive bid at the 2007 La~7d Foreclasure Sale on Ju1y 9fh. A11 wera cash sales foz a total of $20;61 1. Sale costs of $200 w~re included in the ininimum bid. Tat:es owed ko the Sorough in the ainouxit of ~3,958.58 wilt be paid from the proeeeds ot~ the sale. 'Che propertias that sold aze as fbilows: I ParcellD h sica! Address orough Taxes iYy Specia[ Assessment it cost i id ~ I ~ Remeining Proceeds 3903319 ~ 2821 Windflower Dr ~270.25 $200.00 $577.OOI $106751 i 1390332Q 2823 Windfower Dr $270.25 $200,00 i $577.00 ~106.751 I3905317 2605 Windfiower Dr $356.67 $200.00 $577.00 $20.33i ~3905318 2807 Windflower Dr $264.55 $2D0.00 $577.D0 $112.45 3910110 1119 First St $2,796.86 $1,64925 $2D0.00 $4,650.00 $3.89 4901253 1917 Inlet Woods ~r $0.00 $39,6Q429 $20~.00 ~13,653.00 $0.00 Totais $3,968.58 $41,253.54 $1,2D~.06 520,611.p0 $350.17 162 ~ . ~ T-,r1E r ,. ~ F.s ~ 4 ~. .-~ '.~: `t!G ~ ~~lG I 3 ~~~1 ~ ~.. ~ ~.~ t~~°~~ ~L~E''~ ~~i'~-.a~~-s"'.: / Gi Gc.c%~i ~~~~ ~.~.~~,~ ~~--C~ .E_~~-.2./ G/%f~. G~ ~`-~'~~.C.~.. U G~G/ ~'~°-~-~-~~ ~.~r~ ,~' ~~~~-: ~r~~~--~ =` ~~ ~~.~~ ~'`, ~~'~f:~'-- ~~~.~ C~-~c~! ~%~~~.r-~~ ,C~`,:,,~.~~_~ ~ ,,~-~ ~r'~'~~.~.~ ~,~ ~'~--~' ~~ St;/ /'/ ~~ /~'~L~j,fL%-~t~j 2 ~-~-'c«=~, ~;~~~J,. ~ i /y~ ~_.~ _ , ~y ~~ ~~~~~ ~~c./ ~~ , Kenai Peninsula Soeeer Club Post Office Box 393 Kenai. AK 99b 11 http://www.kpsc.us August 15, 2007 Rick Koch, City Manager City of Kenai 210 Fidaigo Street, Ste 200 Kenai AK 99611 _ ~ ~~ ~ ~.,w.._ ~:' C r. ' , ~t~G ~ ~ ~ :;; ~~~`W`~'~`"9,~ ~,~~--_..._ ~ _~ ~ t~ RE: Thank You Dear Mr. Koch, On behalf of the Kenai Peninsula Soccer Club, i would like to thank the City of Kenai for the overwhelming support we received during our endeavor to host the Alaska State Cup Tournament. The efforts and services we received from the Parks and Recreation Department were exceptionaL Mr. Bob Frates has been a great help to us ali season, ~ot oniy wifh the hosting of the tournament but with the use of fields during our league play. The support from the City of Kenai and its citizens was overwhelming and without it, we could not have had such a positive result. We are proud to have successfully brought the US Youth Soccer Alaska State Cup to the Kenai Peninsula District, and hope to do so again in future years. Since its inception in 1996, the Kenai Peninsula Soccer Club has grown tremendously from oniy two teams to our current membership of over 250 young athietes competing in tournaments across the State. This year our ciub was selected to host the State Tournament. This was a wonderFul opportunity to introduce the soccer clubs from around the State to our area. it was also a welcomed advantage for our local athletes to participate in a tournament without having to travel away from their homes. We were host to 85 teams, members of the Alaska Youth Soccer Association and US Youth Soccer. Many commented that this was the best State Cup Tournament they had attended. This was only possible because of the combined efforts from City Departments, local businesses, and numerous volunteer hours from the citizens of this fine community. We have been asked to consider hosting this tournament agai~ in 2009, or possibly begin an annual Twin Cities Tournament. As our club continues to grow, and young athletes develop, we hope for your continued support in the future. Once again thank you for your support of our club and the youth of our community. Sincerely, J ~~~~~ Charles Woodcock, Chairman KPSC State Cup Committee Kenai Peninsula Soccer Club is an Alaskan non-profit corporation AK Corp # 59304 EIN 81-0577369 501(c)(3) DLN: 17053360005022 AGENDA ENA1 CITY COUNCIL-REGULAR MEETING AUGUST15,2007 ' - 7:00 P.M. ~ KENAI CITY COUNCIL CHAMBERS xex~~~xn htto7lwww.cLkenai.ak.us ITEM B: SCHEDULED PUBLIC COMMENTS (10 minutes) 1. Dee Gaddis, Economic Development District -- ICMA CityLinks Program Update. ITEM E: PUBLIC HEARINGS (Testimony limited to 3 minutes per speaker) t. Ordinance No. 2230-2007 --Amending KMC 21.10.090(d)(1) and (2) by Establishing Different Requirements for Determining the Length of a Lease Extension and Extending the Maximum Term of Lease Including Any Extension from 35 to 55 Years. (Clerk's Note: Ordinance No. 2230-2007 was approved for reconsideration at the 6/6/07 council meeting~, at 6/6/07 meeting, action postponed to 7/18/07; at 7/78/07, action pos¢poned to 8/15/07. The motion to adop¢ is active.) 2. Ordinance No. 2248-2007 -- Increasing Estimated Revenues and Appropriations by $27,532 in the Senior Fund forAdditional Grants and Donations. 3. Ordinance No. 2249-2007 -- Amending Ordinance Number 2194-2006 by Amending the Purchase Agreement Authorizing the Saie of Approximately 14.784 Acres of land Described as lot A, Baron Park Subdivision, 2006 Replat to Lowe's Home Impmvement Warehouse, Inc (Lowe's) by Atlding a"Put RighY' for One Year After the Close of the Sale Whereby at Lowe's Option the Ciry of Kenai Would Repurchase the Property for the Purchase Price Paid by Lowe's Minus Any Real Estate Commission Paid by the City of Kenai. a. SukstituYe Ordinance No. 2249-2007 -- Amending Ordinar,ce Number 2194-2006 by Amending the Purchase Agreement Authorizing the Sale of Approximately 14.784 Acres of Land Described as Lot A, Baron Park Subdivision, 2006 Replat to Lowe's Home Improvement Warehouse, Ina (Lowe's) by Adding a"Put RighY' for One Year After the Close of the Sale Whereby at Lowe's Option, the City of Kenai Would Repurchase the Property for the Purchase Price by Lowe's Minus Any Real Estate Commission Paid by the City of Kenai. 4. *New Liquor License -- Richard D. Mullowney, Jr. d/b/a, Alaska Chinook Lodge, ~odge-SeasonaVLicense #4726. ITEM G: UNFINISHED BUSINESS ITEM H: NEW BUSINESS i. Bills to be Ratifed 2. Approval of Purchase Orders Exceeding $15,000 3. Approval -- October 2, 2007/Precinct Election Board Members 4. Discussion - Report on Work Session/Council Meeting Broadcasting EXECUTNE SESSION -- Annual Evaluation of City Clerk. ITEM N: ADJOURNMENT The public is invited to attend and participate. Additional information is available through the City Clerk's offce at 210 Fidalgo Avenue, or visit our website at http'//www.ci.kenai.ak.us. Carol L Freas, City Clerk D663l211