MEMORANDUM

TO: Pete Sprague, Assembly President

Kenai Peninsula Borough Assembly Members

THRU: Dale Bagley, Mayor

THRU: Max Best, Planning Director

Paul Ostrander, Land Management Officer

FROM: Roy E. Dudley, Land Management Agent

DATE: June 7, 2004

SUBJECT: Ordinance 2004-18 authorizing the lease of Government Lot 1, ASLS No. 2002-46, according to Plat No. 2003-6 Seward Recording District at other than fair market value to the Hope/Sunrise Volunteer Fire Department

Please add the following new Section 4 to Ordinance 2004-18 and renumber the subsequent sections as appropriate. KPB 17.10.240(E) requiring a conditional contract has not been included in the lease pursuant to KPB 17.10.240(A) because it is inapplicable by its terms as the KPB has a patent to subject Government Lot 1. Please also reference the attached lease for addition to the 7/6/04 assembly packet for Ordinance 2004-18.

SECTION 4. That the Assembly additionally makes exception to KPB 17.10.240(L) requiring removal of improvements and KPB 17.10.240(M) requiring rental for improvements. These exceptions are based on the following findings of fact pursuant to KPB 17.10.230:

1. Special circumstances or conditions exist.

A. The KPB has patent to subject Lot 1.

B. The purpose of this lease is to authorize Lot 1 to be developed and used as a volunteer fire station.

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.

C. A fire station is a valuable asset to the KPB and community. The annual lease rental is $1.00 in consideration of the services provided and the improvements being constructed on KPB land.

D. The KPB may not want the improvements and/or chattels to be removed upon termination or expiration of the lease. The KPB will determine if improvements and/or chattels should be removed or retained at time of termination of the lease depending on the nature of improvements and their condition.

E. The lease provides under Section III. 4 that improvements and/or chattels will revert to the KPB upon termination of this lease. Upon request, the lessee shall convey improvements and or chattels by appropriate instrument to the KPB for the purpose of clearing title.

3. That the granting of the exception will not be detrimental to the public welfare or injurious to other property in the area.

A. These exceptions will facilitate the continued use of the site as a fire station, which will benefit other property in the area.