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: May 20, 2004

SUBJECT: An ordinance 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

The Kenai Peninsula Borough (KPB) owns Lot 1 of Alaska State Land Survey No. 2002- 46, containing 5.86 acres, more or less, according to the survey plat recorded in the Seward Recording District as Plat 2003-6 by virtue of State of Alaska Patent No. 19249. The September 1987 Community Land Use Plan for Borough Lands in Hope recommends that subject Lot 1 be used for a public safety and emergency service area site. The Hope/Sunrise Volunteer Fire Department (HSVFD) has submitted an application for the lease of subject Lot 1 at other than fair market value.

The KPB and HSVFD have entered into a grant agreement, KPB Project No. 03BTG, in the amount of $50,000. The KPB Project No. 03BTG grant funds are designated for wildland fire response, including purchase of wildland fire fighting equipment, or for construction or renovation of facilities to protect equipment used for wildland fire response. The lease will authorize construction of a heated garage facility to house fire department vehicles and equipment. A long-term lease is recommended to support the long-term use of this site for public safety and emergency service purposes.

The subject ordinance asks for exceptions to KPB 17.10.090 requiring classification prior to transfer and KPB 17.10.110 requiring notice of disposition. Classification takes 90 days and once accomplished will not contribute to the decision to lease Lot 1 to HSVFD. The HSVFD needs to commence construction as soon as possible to have the facility ready before winter. Lot 1 is being leased to HSVFD on a non-competitive basis and KPB 17.10.110 notice requirements are for the purpose of advertising competitive disposals. The KPB Planning Commission will consider this ordinance at its regularly scheduled meeting of _____________, and the action taken will be reported to the assembly.