MEMORANDUM

TO: Timothy Navarre, Assembly President

Members, Kenai Peninsula Borough Assembly

FROM: Timothy Navarre, Assembly President

Bill Popp, Assembly Member

Gary Superman, Assembly Member

DATE: November 29, 2001

SUBJECT: Ordinance 2001-19-27, appropriating $75,000 to conduct a feasibility study to determine the economic viability of an industrial park in the Nikiski area

In the past year, several businesses have approached the Borough Administration and Assembly Members regarding the possibility of relocating to Kenai Peninsula. Their interest in relocating their business to the Nikiski Industrial Area is due to existing oil and gas development and dock facilities.

The interested businesses include a fabrication facility, equipment repair and salvage operation, and small manufacturing companies. These businesses need to be located near a dock and usable land that an industrial park could provide.

An industrial park feasibility study would identify the site of the facility, the attributes desired by potential tenants, and would aid in locating interested businesses. Some potential sites have been identified; however, a study could reveal other useable parcels.

Potential benefits of an industrial park include:

� Creation of permanent jobs in the private sector

� Establishment of small sustainable businesses

� Diversification of the economy

� An infrastructure that would attract new businesses to the Peninsula

Mr. Bob Poe, the Director of AIDEA, has indicated that the cost of the feasibility study would probably be between $75,000 and $100,000.

If the feasibility study indicates that an industrial park would be economically viable there are several funding sources including EDA and USDA that could fund its development.