The Kenai City Council adopted a resolution that approves amendments to the standard lease form for the lease of airport reserve lands between the City of Kenai and the Alaska Department of Transportation and Public Facilities Division of Facility Services. The council in March, through a previous resolution, approved a lease of Airport reserve lands between the city and the Division of Forestry using the Standard Lease Form. The lease was signed and recorded on April 27, 2022.
The city has been notified that the Division of Forestry didn’t have the authority to enter into the lease with the city and that the state will not sign the city’s Standard Lease Form. City Attorney, Scott Bloom, recommended the city to approve an amended lease form.
City Manager Paul Ostrander:
“We’re amending our Standard Lease Form here, but Mr. Bloom does provide some solid justification, particularly considering the existing fire season they’re in, this lease is a lease that supports fire suppression efforts in our area. We’re in a strong financial position with the state and there’s a clear public benefit to this lease. He has also stated that he would like to go through the exercise of actually adopt an amended lease form that would be used for future state contracts, which is probably something that you’ll see coming forward. For this summer and for this lease, it’s certainly his recommendation, and I agree with that, that this is in the city’s best interest moving forward.”
According to Bloom, the leased land is used by the state as an airtanker reload base for wildland fire protection and suppression. After the lease was executed and recorded, the person who signed the lease on behalf of the state didn’t have the authority to sign and that there are provisions in the city’s form that the state can’t agree to.
In accepting the recommended changes, the city changes the contracting agency to the Alaska Department of Transportation and removes the indemnification language. Additionally, the city and state, in case of condemnation, will try and mediate any dispute prior to submitting to binding arbitration.
Click here for more information (note: look for Resolution 2022-56)
