MEMORANDUM

TO: Timothy Navarre, Assembly President

Members, Kenai Peninsula Borough Assembly

THRU: Dale Bagley, Mayor

FROM: Max Best, Borough Surveyor

DATE: May 3, 2001

SUBJECT: Ordinance 2001-16, grazing lease program

Please find following a plan for managing the upcoming grazing lease terminations and renewals for a proposal for the assembly's consideration at the May 15, 2001 meeting.

1. A ten-year renewal will be offered for the seven grazing leases that terminate in July 2001.

2. To the extent possible the lease terms will be standardized for all grazing leases. A one-year land use permit for grazing purposes will be used if necessary where a renewal cannot be negotiated prior to termination.

3. To the extent possible the terms of the current lease and the state regulations applicable to grazing leases will comprise the terms of the lease renewals.

4. If a lessee has engaged in other activities on the parcel, upon application by the lessee and approval by the borough, the lease terms may also include authorization and conditions for those activities.

5. A non-code ordinance provides the following:

A. authorizes ten-year renewals,

B. applies a rural classification,

C. authorizes additional lease negotiations for other uses on the parcels the lessee currently engages in

D. explains that the ten-year renewal is necessitated because it allows the borough to engage in long-term planning for substantial acreage of borough land while still allowing lessees an opportunity to engage in grazing and other acceptable uses for a substantial interim period of time

E. requires lessees pay fair market value for the grazing lease and fair market value for any other uses they are allowed to continue by lease on the property

The attached ordinance in part authorizes and in part implements the above process. A staff report including findings for the classification and a synopsis of the seven leaseholds will be provided at introduction.