The Kenai City Council passed a resolution that would approve the execution of a lease of airport reserve lands between the city of Kenai and Schilling Rentals. In August, Council approved a temporary application where credit for eligible work activities may be applied towards rent for a maximum of five years.
An application was submitted in July to remodel/expand an existing hangar, upgrade parking apron/pad, to accommodate a fixed base operator and act as a medivac service location. An investment of an estimated $1.5 million that gives a lease term of 45 years, according to the term table in municipal code.
Finance Director Terry Eubank:
“I really think that this lease is kind of a testament to some of the lease changes and incentive changes that were done in the recent years there on the airport. What we have is we had an expiring lease we had a facility that was in need of repair and replenishment and the new leasee has invested a significant amount of monies and also taking of some lease development incentives that we’ve provided. We’re going to get virtually a brand-new hangar with a much better approach to it. They took out a bunch of frost susceptible material, dug it down, backfilled it, they actually expanded the facility. Their intent is to sublease this to Guardian Life Flight so that we will have access to medivacs right here from our own airports. I think it’s a really good example of the city’s land lease programs, especially on the airport there.”
In the Imagine Kenai 2030 Comprehensive Plan, which outlines goals for the city, one pertains to the Kenai Municipal Airport, which states that it will support future development when it supports the mission to make the Kenai Municipal Airport the commercial air transportation to the Kenai Peninsula Borough and Cook Inlet.
Resolution 2021-63 unanimously passed the Kenai City Council.
