MEMORANDUM

TO: Pete Sprague, Assembly President

Kenai Peninsula Borough Assembly Members

THRU: Dale L. Bagley, Mayor

THRU: Max Best, Planning Director

Paul Ostrander, Land Management Officer

FROM: Roy E. Dudley, Land Management Agent

DATE: February 5, 2003

SUBJECT: Ordinance 2003-06, An Ordinance Authorizing the Negotiated Lease of a 30 Acre� Parcel Located within the Buffer Property of the Central Peninsula Landfill to Aardvark Pumping

Jerry Holland, d.b.a. Aardvark Pumping, has submitted an application for the negotiated lease at fair market rental value for a �30 acre parcel located within the buffer property of the Central Peninsula Landfill. The 30 acres are described as the N�NE�NE�, SE�NE�NE�, Section 14, T4N, R11W, S.M., Alaska and shown on the attached map.

The Economic Development District and the Kenai Peninsula Borough have discussed the issue of septic waste disposal. Jerry Holland appeared before the Assembly Lands Committee on June 4, 2002 and was encouraged to submit an application for the subject site.

Mr. Holland's application provides a comprehensive overview of the land use and competitive sale issues. Cathy Mayer's October 16, 2002 memo addresses compatibility with the landfill and buffer.

Leasing the subject site to Aardvark Pumping is a sound business decision. The Borough will receive a market value rental from land that would otherwise not generate an income stream. At the end of the lease the Borough will still own the land, and it can continue to function as a buffer for the landfill. Aardvark Pumping's development plan, required environmental liability insurance, and ADEC permitting and monitoring will minimize environmental liability to the Borough.

This non-competitive real property sale to a local business is justified because it will benefit the public health and safety. Should the non-competitive lease be challenged by another entity that wants the same opportunity, then the KPB can offer the lease in a competitive manner.