MEMORANDUM

TO: Timothy Navarre, Assembly President

Members, Kenai Peninsula Borough Assembly

FROM: Mark Powell, Assembly Member

DATE: September 27, 2001

SUBJECT: Ordinance 2001-36 authorizing the sale for less than fair market value to Cook Inlet Aquaculture Association of certain real property

This ordinance is introduced at the request of Cook Inlet Aquaculture Association ("CIAA"), which is a nonprofit corporation funded through the 2 percent tax on commercial salmon fishing. Since the recent sharp decline in the commercial salmon industry, CIAA has suffered severe financial hardship and is actively seeking additional sources of revenue in order to continue its research and enhancement efforts on behalf of commercial, sport, personal use, and subsistence salmon fisheries.

CIAA has leased the land upon which its building is located from the borough for 16 years and to date has paid a total of $52,387 in annual installments beginning in 1985. The fair market value of the land as currently assessed is $139,100, and the building is assessed at $286,300. The borough did not pay for the building. Continued operation of this corporation is important for the sustainability of the salmon resource in the Kenai Peninsula Borough. This organization has provided significant assistance to this resource by protecting and rehabilitating self-perpetuating salmon stocks and salmon habitat, and maximizing the value of the salmon resource by applying science and enhancement technology to its development.

In introducing this ordinance, it is my intent to enable CIAA to use this property to continue to fulfill its mission, in order that it may further its efforts to improve the local economy.