A new development arose in the conversation surrounding the proposed upgrade to the sewer line in the Whistle Hill area during the Soldotna City Council meeting on Wednesday, March 27th.
The resolution (2024-007) centers on an issue that has been addressed for multiple years, but took a new step at Wednesday night’s meeting.
In March 31, 2022, a signed petition was submitted to the City of Soldotna to create a Special Assessment District (SAD). That same year, on September 14, 2022, the Soldotna City Council approved Resolution 2022-027, forming a SAD for Whistle Hill utility improvements.
In a memo from John Czarnezki, Director of Economic Development and Planning, it explains that the Soldotna City Council approved Resolution 2022-027, forming a Special Assessment District (SAD) for Whistle Hill sewer utility improvements. The district included six parcels and called for the extension of the existing sewer main 1500 feet to the Whistle Hill development. Henry and Mary Krull sponsored the petition and district.
The original anticipated cost for the project, including design, construction, contingency, and advertising, was estimated at $814,118.52. Cost of construction alone was estimated at $656,492.
Council approved a split of the project costs, with the City paying 62.5% of the cost of improvements, and the benefitted properties paying 37.5%.
On October 12, 2022, the Council approved Ordinance 2022-033, appropriating $814,200 to design and construct the Whistle Hill improvements. Construction bids were solicited in May and opened on June 6, 2023. Only one bid was received ($940,445) and it exceeded the construction cost estimate by over 40%.
Due to Soldotna Municipal Code (SMC) 3.18.100(G), no contract would be entered since the contract exceeded the estimated cost of the improvement by well-over 10%. In this situation, the Council would be forced only to approve the contract through further discussion and a resolution.
At their meeting on February 28, 2024, the Soldotna City Council directed the Administration to prepare a development agreement in place of the SAD. To facilitate the creation and approval of a development agreement, the Resolution required under SMC 3.18.100(G) should be considered and voted upon by the Council.
If the Council still chooses to pursue the development agreement, then Resolution 2024-007 would be voted down. This action would formally end the SAD process and open the path for the approval of the development agreement.
Mary Krull, creator and owner of Whistle Hill reminded the Council that although it is not the Council’s responsibility to individuals who would like to improve their community, it is the Council’s responsibility and in its best interest to support expansion and growth as recommended by the city administration.
“We are asking this council to reconsider a cost share of $100,000 and reallocate the original approved contribution of $508,000 to a development agreement. This does not benefit just one family. It benefits the 50 families we employ and who are very desirable and specific skill sets. It also benefits hundreds of guests and visitors we serve year-round. In addition, it expands city infrastructure which will ultimately encourage future development. Allow us to be that catalyst for growth. Finally, the council unanimously made a commitment to us by allocating $500,000 to extend its sewer line. I am asking you to keep your word,” said Mary Krull.
Co-Owner Henry Krull also testified before the council. He emphasized that when the bid came in over budget, he met with the Soldotna Public Works Department to try and create a development agreement with the city in support of the $508,000.
However, at last month’s meeting, it was not.
“We are appreciative that the council agreed to offer some support. But it was a far cry from the $508,000 that was approved unanimously by this council previously. We are only asking that the city offer to help support this project with a business development agreement that will allow us to get the project going with support from the city for the $508,000 that was promised previously and agreed upon and allocated,” said Henry Krull.
After discussing how the vote should go to benefit Whistle Hill, a vote was taken. With a final. vote one 1 yes and 5 no, the resolution failed.
However, the failure of the resolution does prove to be beneficial for Henry and Mary Krull.
This means that the administration will work with Whistle Hill’s developers on the development agreement, and be brought back before the council at a future meeting.
