MEMORANDUM
TO: Tim Navarre, Assembly President
Kenai Peninsula Borough Assembly Members
THRU: Dale Bagley, Mayor
Robert Bright, Planning Director
Max Best, Borough Surveyor
FROM: Richard K. Atuk, Land Management Agent
DATE: January 10, 2002
SUBJECT: Ordinance 2002-04, authorizing a negotiated long-term grazing lease with Mr. Don Johnson
Petitioner, Don Johnson has requested the subject land to be leased for grazing livestock.
The Kenai Peninsula Borough has received State Patent for subject parcel. This parcel is described as Government Lot 3, Section 1, T5N, R9W, Seward Meridian, containing 40.00 acres more or less. (See attached map.)
Subject parcel was formerly the Sterling special waste site. It is now closed and will not be used for future waste handling or waste disposal activities. Resolution 2000-038 classified the parcel as Waste Handling with a Resource Management overlay. The Waste Handling classification is a formality to address the continuation of the post-closing activities and site monitoring of the former waste facility. The Resource Management overlay classification is to address the proposed grazing lease. The KPB Solid Waste Department made several recommendations in regard to the proposed grazing lease. See attached memorandum of January 23, 2001 from Lanie Hughes.
Appropriate classification to address the proposed livestock grazing was reviewed by staff. KPB17.10.250 (A) "Agriculture" allows for the grazing of livestock as well as harvesting crops. However, the definition of the Agriculture classification is all-inclusive and does not separate grazing from agriculture. Grazing and agriculture leases typically have separate "bundle of rights" and are therefore assessed and valued at different rates. Grazing leases generally involve very limited lease rights, lower rates than agriculture, no harvesting of crops, and short-term commitment. For this reason, an agriculture classification may imply more rights to the land than what is necessary for grazing livestock. For this lease, KPB staff proposes to address livestock grazing with a classification of Resource Management and leasing pursuant to Title 17.10.140(B) Long Term Lease.
It should be noted that the assembly will be presented with an ordinance that would define "grazing." However, Mr. Johnson is anxious to secure the lease in order to timely prepare for its use this spring. As the allowed use can be adequately described in this ordinance and the land has been appropriately classified under the existing code, the administration requests that the assembly authorize this lease without waiting for the code definition to be changed. If desired, the classification may be amended later to include grazing.
The lease rental rate is $300 per year, which is other than fair market value. Borough Assessing personnel reviewed the request for appraisal and determined the cost would be considerably more than any revenue that could be derived from the lease. See attached May 9, 2000 memorandum from Mr. Fandel.