They built on land they didn’t own and now some Kenai business owners who lease airport lands are frustrated with what they consider a change in policy. Recently the City has been reluctant to sell those parcels to the lesees.
During a work session on the issue Monday night, the Kenai City Council heard from several business owners like Don Moffis and Mainstreet Co-owner Annalea Lott.
Don Moffis: “I’m here to represent my mother and father in-law with the Big Dipper Car Wash, we’ve been trying to do something with that for a long time, we’re not going to develop it anymore so it needs to be sold to somebody who will develop it but we can’t sell it. Once they find out it’s on leased property, it’s over with.”
Annalea Lott: “Developed a viable business that was nothing before we walked in there and what are we going to do? Why would we continue to put money into this thing, knowing that like these guys, we’re never going to be able to sell it? We’re going to end up like the bowling alley, Big Dipper, my sister and brother in-law own Ski-Mo’s and walked away from it.”
The City of Kenai had sold parcels of airport lands to business lesees in the past, but since the lease money now funds part of the airport’s operations, reducing the burden on city tax payers, the city says they won’t sell unless the numbers pencil out.
Many of the businesses entered into up to 99-year leases with the belief that once they saved enough money, they would be able to purchase the land where their business resides for close to appraised value.
City Manager Rick Koch said those terms are not written in the lease contracts. He recognized a serious problem since there is no exit strategy once the contracts expire. New leases are being written to address that issue.
No action was taken at the work session, the city council consider the issues and will likely address the situation at a later council meeting.