MEMORANDUM
KENAI PENINSULA BOROUGH
LEGAL DEPARTMENT
144 N. Binkley Street Tel. (907) 262-8609
Soldotna, Alaska 99669 Fax (907) 262-8686
TO: Timothy Navarre, Assembly President
Members, Kenai Peninsula Borough Assembly
THRU: Dale Bagley, Mayor
FROM: Colette G. Thompson, Borough Attorney
Holly B. Montague, Assistant Borough Attorney
Bob Bright, Planning Director
DATE: June 5, 2001
SUBJECT: Ordinance 2001-16, grazing lease extensions
Upon further research and review of the grazing leases which are subject to the ordinance, the administration recommends that the ordinance be amended to authorize the mayor to offer 27.5-year extensions to the grazing leases identified in the ordinance so long as the lessees are in compliance with all applicable lease and legal requirements under state and borough law and provides the notice required by the terms and conditions of their leases. The following amendments are requested:
Amend the title as follows
AN ORDINANCE [CLASSIFYING SEVEN PARCELS AS RURAL AND] AUTHORIZING [TEN] 27.5-YEAR [TERM] GRAZING LEASE[S] RENEWALS
Amend the fourth Whereas clause as follows:
WHEREAS, the borough is the management authority for these state-issued grazing leases which are facing expiration dates and contain option to renew for 27.5 years subject to certain conditions; and
Amend the eighth Whereas as follows:
WHEREAS, allowing [ten] 27.5-year renewals of the grazing leases allows the borough to engage in long-term planning for this substantial borough asset while allowing the current lessees to continue grazing activities; and
Delete the eleventh Whereas:
[WHEREAS, a rural classification is appropriate since the land consists of large unsubdivided predominantly vacant parcels that are appropriate for a multitude of present and future uses, and such classification is unrestricted and would allow for grazing leaes;]
Amend Section 2 as follows:
SECTION 2. Grazing leases for no more than a [ten] 27.5-year period shall be entered for the grazing leases identified in Section 1 consistent with the provisions of KPB 17.10.140, Lease--Types; 17.10.150, Lease--Terms and conditions; and 17.10.240, General conditions, to the extent applicable, state laws and practices applicable to the grazing leases[, and to the extent practicable the terms of the current leases].
Amend Section 3 as follows:
SECTION 3. Upon the expiration date of the seven leases subject to this ordinance in July 2001, the mayor is authorized to enter a land use permit for a period of no more than a year to allow the lessees an opportunity to make application for and negotiate [ten] 27.5-year grazing leases consistent with the terms of this ordinance.
Change Section 5 to Section 6, Add a new Section 5 as follows:
SECTION 5. Pursuant to KPB 17.10.230 an exception to KPB 17.10.090 requiring classification prior to lease of borough lands is granted based on the following findings:
Standards: 1) That special circumstances or conditions exist; 2) That the exception is necessary for the preservation and enjoyment of a substantial property right and is the most practical manner of complying with the intent of this chapter; 3) That the granting of the exception will not be detrimental to the public welfare or injurious to other property in the area.
Findings: Special circumstances exist in that the lands are already subject to long term leases with the state of Alaska, and the borough's lease would continue a previously authorized use for grazing purposes. There are renewal provisions for the grazing leases which allow leases in good standing to be renewed for an additional term and the original terms expire in July 2001. Therefor granting an exception to classifying the land prior to lease protects the interest of the lessees in their renewals. The granting of the exception is not injurious to the public welfare or other property in the area as the leases allow a use that has been ongoing for a number of years, the land is in large rural parcels and granting the exception to classification at this time will not have an impact on adjacent parcels. The borough intends to bring a classification resolution forward consistent with the requirements of KPB 17.10.080, however, it is in the public's interest to address the issue of lease renewals before the end of the original lease term and there is not adequate time to classify the land prior to adoption of the lease ordinance. The borough intends to work with the lessees regarding their renewals, appraisals, development plans, and term of their lease over the course of the upcoming year during which time the land may be classified. The exception does not injure the public because the proposed classification is "rural" which is consistent with the current uses on the land.