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HomeMy WebLinkAboutOrdinance No. 2149-2006SUBSTITUTE Suggested by: Councilor Ross CITY OF KENAI ORDINANCE NO. 2149-2006 AN ORDINANCE OF THE COUNCIL OF THE CITY OF KENAI, ALASKA, AMENDING KMC 21.10.040 BY PROVIDING THAT LEASE APPLICATIONS SHALL EXPIRE AF`TER ONE YEAR AND MAY BE EXTENDED FOR SIX (6) ADDITIONAL MONTHS FOR GOOD CAUSE AND PROVIDING THAT LEASE APPLICATION APPRAISALS ARE GOOD FOR TWELVE (12) MONTHS. WHEREAS, KMC 21.10.040 provides that lease applications expire after su~ months unless a lease is entered into; and, WHEREAS, KMC 21.10.040 provides that an appraisal to determine the lease rate is valid for only six months; and, WHEREAS, the language including the above two provisions in KMC 21.10.040 was added in 1978; and, WHEREAS, it has been nearly twenty-eight years since those provisions were added to the city code; and, WHEREAS, the regulatory requirements regarding such items as wetlands permits, highway access, landscaping and site plans have dramatically increased the amount of time it takes for a developer to get approval of the permits necessary to know if the project can be built; and, WHEREAS, while a six-month application period was practical tcventy-five years ago, it is no longer practical or reasonable for large developments; and, WHEREAS, requiring the City to approve a lease within six months of an application can mean the City Council must make a decision on lease approval before it has the necessary information on the projects' wetlands permitting, highway access plans, landscaping/site plans; and, WHEREAS, requiring the lease to be signed within suc months after the application can mean that a developer must agree to a long term and costly lease without knowing whether the project will ever get the necessary permits to be built; and, WHEREAS, such leasing policies can deter developers from applying for leases of city property; and, WHEREAS, requiring a lease applicant to file a new Iease application after siY months because of regulatory delays in permitting is unfair to the lease applicant; and, WHEREAS, allowing one year for a lease application approval will allow for increased lease processing time due to increased permitting requirements; and, Ordinance No. 2149-2006 Page 2 of 3 WHEREAS, allowing the City Council to extend the application period for an additional suc months for good cause, such as site plan/landscaping, highway access and wedands permitting will allow for orderly planned development and improved decision making by both the city and the developer; and, WHEREAS, the appraisal period should match the time period for normal lease approval in the KMC 21.10.040; and, WHEREAS, when the amendments to KMC 21.10.040 become effective they should apply to e~sting lease applications; and, WHEREAS, it is in the best interest of the City of Kenai to amend KMC 21.10.040 to allow the City Council to grant additional time to decide whether to enter into a lease with an applicant. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA that KMC 21.10.040 and 21.10.090 are amended as follows: SECTION I 21.10.040 Rights prior to leasing The filing of an application for a lease shall give the applicant no right to lease or to the use of the land for which they have applied. The applicafion shall expire within [SIX (6)] twelve (12) months after the application has been made if a lease has not been entered into between the City and the applicant by that time unless the Citv Council for ~ood cause ~rants an extension. No extension mav be ~ranted for a period lon~er than six (6) additional months. Lease rates are subject to change on the basis of an appraisal done every [SIX (6)] tweive (12) months on the property applied for. SECTYON II 21.10.090 Appraisal. No land shall be leased, or a renewal lease issued, unless the same has been appraised within a(SIX (6)] twelve (12) month period prior to the date fixed for beginning of the term of the lease or renewal lease. No land shall be leased for less than the approved appraised annual rental. Appraisals shall reflect the number and value of City services rendered the iand in question. SECTION III This ordinance is applicable to lease applications that are pending on the effective date of this ordinance. Ordinance No. 2149-2006 Page 3 of 3 PASSED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, this 15th day of March, 2006. ~ ~ r- - AT PORTE , MAYOR ATTEST: C~~l/~"tn /I7 -°C/~~'~~ 'i Carol L. Freas, City Clerk Introduced: March l, 2006 Adopted: March 15, 2006 EffecCive: April 15, 2006 /~~~l~~~~ Lfllt~ ~ t GG~ Irtltt~ ~~LUtGGI"e rr 210 Fidalgo Avenue, Kenai, Alaska 99611-7794 Telephone: (907) 283-7535 / Fax: (907) 283-3014 www.ci.kenai.ak.us Mli~~~~l~l ~ lJ ~ TO: Mayor I'ortei~ and Keizai City Council FROM: ~~~ Cary I2. Graves, City Attorney DATE: Februaiy 24, 2006 RI:: Summary of Changes in Substitute Ordinance No. 2149-2006 Following is a suminary of the changes in the substitute ordinance fi'oxn the origii~ial Ordinance No. 21~49-2006. ~ ~ The original Ordinance No. 2149-2006 added the possibility of an extension of siz months to the existiug six-month lcasc applic~ation period-for a maximum of twelve months. The substitute ordinanc~e pxovides for a one-year lease application period with a possible extension of six snonths-for a maximum of eighteen months. The reason for Ordinance No. 2149-2006 and the substitute is that permitting requirements have inade the six-month time 1'nnit obsolete. As the code now reads, bot]i the lease applicant and d~e City may have Lo malce a decision whether Co approve a lease before they k~7ow how the permitting and siee design process have ended up. It also means thc public might not have information on permitting and site desig~ prior to a decision whether Co approve a lease. It can be very difficult for the public to make an informed opinion on a ptojeet without that information. The idea belund the ordinance (and the subsCitute) is that extending the time period would allow the public, the City and the appficanC all Co have better information prior to the final decision on whether to enter into a icase. I3oth the original and substitute would extend the time peiiod an appraisal is valid from six months to one year. The new Seceion II of the ordinance was added Lo reflect that the six-month tana period is set ouL in two different places in the code, so both would need to be changed to fi~om six months to one year. Let me know if you have qnestions or need further information.