HomeMy WebLinkAboutResolution No. 2009-36ary of
KENAI. ALASKA
CITY OF KENAI
RESOLUTION NO. 2009 -36
Suggested by: Administration
A RESOLUTION OF THE COUNCIL OF THE CITY OF KENAI, ALASKA, AUTHORIZING
KENAI HANGAR, LLC BE GRANTED THE CONTRACTUAL RIGHT FOR A TWENTY (20)
YEAR LEASE RENEWAL FOR A THIRTY -FIVE (35) YEAR LEASE ON LOT 11, BLOCK 1,
F.B.O. SUBDIVISION AND A PORTION OF LOT 10, BLOCK 1, F.B.O. SUBDIVISION,
DESIGNATED AS LOT 11A ACCORDING TO THE PRELIMINARY PLAT.
WHEREAS, KMC 21.10.080(2) authorizes the Council by resolution to grant a lessee
the contractual right to a lease renewal upon such terms and conditions as it
determines are in the best interests of the City; and,
WHEREAS, Kenai Hangar, LLC has applied to lease Lot 11, Block 1, F.B.O.
Subdivision and a portion of Lot 10, Block 1, F.B.O. Subdivision (designated as Lot
1 IA according to the preliminary plat); and,
WHEREAS, Kenai Hangar, LLC will build a 76' 9 by 77' free span metal building, slab
on grade floor and attached 18' by 45' wood framed office; and,
WHEREAS, KMC 21.10.090(d) provides for a maximum term of a new lease of thirty
five (35) years; and,
WHEREAS, Kenai Hangar, LLC needs the contractual right for a lease of fifty -five (55)
years, consisting of an initial thirty -five (35) year lease term and a twenty (20) year
lease renewal in order to adequately re -coup its investment in the property; and,
WHEREAS, the estimated value of the lease improvements will exceed one million
dollars; and,
WHEREAS, it is in the best interest of the City of Kenai to authorize Kenai Hangar,
LLC be granted the contractual right for a twenty (20) year lease extension for its lease
of Lot 11, Block 1, F.B.O. Subdivision and a portion of Lot 10, Block 1, F.B.O.
Subdivision (designated as Lot 11A according to preliminary plat).
NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF KENAI,
ALASKA, pursuant to KMC 21.10.080, Kenai Hangar, LLC is authorized to be granted
the contractual right to a twenty (20) year lease extension for a thirty -five (35) year
lease of Lot 11, Block 1, F.B.O. Subdivision and a portion of Lot 10, Block 1, F.B.O.
Subdivision (designated as Lot 11A according to preliminary plat).
PASSED BY THE COUNCIL OF THE CITY OF K. NAI .ASKA t first day of July,
2009.
NIT ST:
Carol L. Frea City Clerk
PAT PORTER, MAYOR
the aiyaf
KENAI, ALASKA
MEMO:
TO: City Council
FROM: Rick Koch
DATE: July 1, 2009
SUBJECT: Kenai Hangar, LLC Lease
laye with a Past, Cc
210 Fidalgo Avenue, Kenai, Alaska 99611 -7794
Telephone: 907 283 -7535 FAX: 907 283 -3014
with a Future
1 11 11
1992
The purpose of this correspondence is to provide the following background information regarding the
proposed Lease of Airport Land to Kenai Hangar, LLC:
Aaron Murray d /b /a Kenai Hangar, LLC submitted a Lease Application April 20, 2009 requesting a
Lease of Airport Land in order to construct a 76'9" by 75' free span metal hangar and 18' x 45'
wood framed office. The amended Lease Application estimates the value of the proposed
improvements at $1,013,000.00. Construction would begin August 3, 2009 and be completed by
December 20, 2009. The desired lease term is 35 years with an option for a 20 year renewal. The
lease requires a replat of Lots 9, 10, and 11, Block I F.B.O. Subdivision, which are 100' wide, into
two 150' wide parcels.
Planning and Zoning Commission met May 13, 2009 and found that the proposed lease conforms to
the ALP, the Comprehensive Plan and Zoning. The Airport Commission met May 14, 2009. Both
Commissions recommend approval of the lease.
Since Administration's action was not contrary to the Airport Commission and Planning Zoning
Commission recommendations, the Lease was scheduled as an Information Item on the June 3
Council Meeting Agenda.
In amending the approved Lease form, Mr. Murray requested the contractual right for a 20 year lease
renewal be included in the Lease.
Pursuant to the table contained in 21.10.090, the maximum term is 35 years for a $500,000.00
investment value. An extension shall be one year for each $25,000.00 of additional investment.
Kenai Hangar's additional $500,000.00 investment above the maximum tern of 35 years would
determine a twenty year extension.
Administration believes it is in the best interest of the City to authorize Kenai Hangar, LLC be granted the
contractual right for a twenty year lease extension for its lease of Lot 11, Block 1, FBO Subdivision and a
portion of Lot 10, Block 1, FBO Subdivision (designated as Lot 1 IA according to the preliminary plat).
Kenai Hanger, LLC Lease
Lot 11, B1 F.B.O. Subdivision and
a portion of Lot 10, Block 1 F.B.O.
Subdivision (designated as Lot 11A
according to the preliminary).
June 24, 2009