MEMORANDUM

TO: Pete Sprague, Assembly President

Members, Kenai Peninsula Borough Assembly

THRU: Dale L. Bagley, Mayor

FROM: Max J. Best, Planning Director

Paul Ostrander, Land Management Officer

DATE: February 2, 2004

SUBJECT: Resolution 2004-021, supporting the subdivision of approximately 867 acres of land in the Point Possession area

The borough has sold much of its inventory of lots in the Gray Cliff and Moose Point Subdivisions through an over-the-counter land sale pursuant to Ordinances 97-36, 98-27, 98-43, 99-07, and 2003-33. Strong market demand is indicated for additional land in the Point Possession area. The public continues to express interest in the Borough selling large-acreage tracts of borough-owned land in the Point Possession area.

The North Road Extension project will provide much closer access to Point Possession than is currently available. The alignment of the Southern Intertie Transmission Line may also cross borough owned lands at Point Possession. This could provide electricity to this area.

The borough can respond to current market conditions and the public interest by providing additional acreage in the Point Possession area. McLane Consulting Group provided the borough with three conceptual plans to develop the Point Possession area in 1997.

The administration recommends proceeding with a phased development approach using the McLane Consulting Group Conceptual Plan No. 3. The first phase would be to subdivide approximately 867 acres of the 8,521 acres of borough owned land in the Point Possession area into approximately 70 lots. The design maximizes the value of the bluff land while providing larger lots in the interior. The administration proposes to form local option zoning district Rural Residential (RR) under the provisions of KPB 21.44.030(C) to provide some restriction on development while allowing a variety of land uses for the proposed subdivision area. Appended are Exhibits A and B, which provide an aerial view and project overview map of the subject area and proposed subdivision.