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Home My WebLink AboutOrdinance No. 2355-2008~\ ~_- e~,~~,y~fJ/ KENA~ SKA Suggested by: Administration CITY OF KEPTAI OIZISINAlYCE NO. 2355-2668 AN ORDINANCE OF THE COUNCIL OF THE CITY OF KENAI, ALASKA, AMENDING KMC 21.10.110(b) AND KMC 21.15.130(b) TO ALLOW THE CITY COUNCIL BY RESOLUTION TO AUTHORIZE A DIFFERENT REPAYMENT PLAN FOR REIMBURSEMENT OF CITY CONSTRUCTED IMPROVEMENTS ON LEASED PROPERTY. WHEREAS, KMC 21.10.110 allows the City to include a provision in leases of airport reserve property requiring the lessee to reimburse the City for certain improvement made on the property; and, WHEREAS, KMC 21.10.15.120 allows the City to include a provision in leases of airport property outside of the airport reserve requiring the lessee to reimburse the City for certain improvements made on the property; and, WHEREAS, the reimbursement provisions in KMC 21. l0.1.10(b) and KMC 21.15.130(b) require reimbursement by ten (10) equal annual payments with interest of eight percent (8%) per year on the unpaid balance; and, WHEREAS, the Council should have the flexibility to allow different reimbursement terms if the conditions of the development call for different terms in order for the development of the property to be economical; and, WHEREAS, it is in the best interest of the City of Kenai to allow the Council by resolution to set different reimbursement terms for city constructed improvements under KMC 21.10.110 and KMC 21.15.130. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, that KMC 21.10.110(b) and KMC 21.15.130(b) are hereby amended as follows: SECTION ONE-KMC 21.10.110(b) (b) The lessee shall reimburse the City for the City's cost of constructing the improvements in ten (10) equal annual payments, plus interest at eight percent (8%) per year on the unpaid balance or under such terms and conditions as the Council may set by resolution. [IF THE LEASE IS FOR LESS THAN TEN (10) YEARS, T ]The repayment schedule may not be longer than the term of the lease. The lessee may pay the entire remaining balance to the City at any time during the term of the lease. SECTION TWO-KMC 21.15.130(b) (b) The lessee shall reimburse the City for the City's cost of constructing the improvements in ten (10) equal annual payments, plus interest at eight percent (8%) New Text Underlined; [DELETED TEXT BR4CKETEDj Ordinance No. 2355-2008 Page 2 of 2 per year on the unpaid balance or under such terms and conditions as the Council may set by resolution. [IF THE LEASE IS FOR LESS THAN TEN (10) YEARS, T]The repayment schedule may not be longer than the term of the lease. The lessee may pay the entire remaining balance to the City at any time during the term of the lease. PASSED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, this 15th day of October, 2008. ~~~ ~~ PAT PORTER, MAYOR ATTEST: Carol L. Freas, City Clerk Approved by Finance: Introduced: October 1, 2008 Adopted: October 15, 2008 Effective: November 15, 2008 New Text Underlined; (DELETED TEXT BRACKETED]