KENAI PENINSULA BOROUGH
144 N. Binkley Street Tel. (907) 262-8609
Soldotna, Alaska 99669 Fax (907) 262-8686
TO: Bill Popp, Assembly President
Kenai Peninsula Borough Assembly Members
FROM: Mike Navarre, Borough Mayor
DATE: November 4, 1999
SUBJECT: Ordinance 99-67, An Ordinance Authorizing Payment for the Kenai River Center Parcel to the City of Soldotna at half of fair market value if Soldotna does not take title to the Soldotna DOT/PF Maintenance Site, and Appropriating Funds from the Land Management Trust Fund for the same.
The borough has been engaged in ongoing negotiations to exchange the Soldotna DOT/PF site for the site upon which the Kenai River Center facility is being constructed. In exchange for a debit to the borough's municipal entitlement the state will convey the Soldotna DOT/PF site to the city of Soldotna for park purposes. In exchange the city of Soldotna is willing to convey to the borough the Kenai River Center parcel. Both parcels are approximately 8 acres in size.
There is contamination on the DOT/PF site which is being monitored. If the contamination is not adequately remediated within 3 years, Soldotna may opt out of taking title to the parcel. If this occurs the borough's municipal entitlement will not be debited for the property, and the borough will have received the KRC site without compensation being paid to the city of Soldotna. This ordinance provides for the appropriation of $92,500.00 from the Land Management Trust Fund for the sole purpose of compensating the city for half the present fair market value of the property in the event the city does not take title to the DOT/PF site. If the borough had not negotiated conveyance of the KRC site with the city of Soldotna, another parcel from the borough's land bank would have been offered as the site for the KRC facility. The money appropriated is to be used only in the event the city of Soldotna does not take title to the DOT/PF site, and only for the purpose of compensating the city of Soldotna. If Soldotna does take title as the original agreement anticipates the appropriated funds will be returned to the Land Management Trust Fund.