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COUNCIL MEETIN6 DATE: 5'l~~l~'~
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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.
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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)
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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
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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
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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.
KMC 6.05.040 also states the City Council apgouzts the members of the elecfion
boards.
Does CoutaciZ wrsk to appoint these persons as etection board members for the
dctober 2, 20CB~ Crty of Kenaz/Kenai Perzinsula ~orougPe eTection?
107
Following are the people who have agreed to work on the Election Boards for Precinets
1, 2, and 3 in the City of Kenai.
108
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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
( ~'~- <;°-
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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
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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
-,,-~ ~~
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~ 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 $15,d60 for council review.
7/~007 Kenai Municipal Airport Monthly Enplanement Report and Float Plane
Basin Activity Report.
8/2/07 It. Howard memorandum regarding 2007 Foreclosure Saie.
158
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--------------
-
------------- ------______-----
---- OPERpeTIC)I~tS__ -----
___~._ -----
-----
Month 2067 2006 2005 2604 2003
APRIL 0 0 2 0 0
MAY 0 99 114 99 86
JUNE 72 151 317 169 158
JULY 17$ 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
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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
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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.._ ~:'
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~~~`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