The Kenai City Council adopted a resolution executing a grant from the Alaska Department of Commerce, Community, and Economic Development, Division of Community and Regional Affairs for the Kenai Bluff Stabilization Project. In February 2022, the project received $28 million in federal funding, which covers 65% of the total cost of construction of the project.
The city’s match requirement towards the project’s construction is 35% and during the FY22 legislative session, $6.5 million was included in the State capital budget to support the project, according to City Manager Paul Ostrander:
“This resolution does give me the authority to execute a grant from the state of Alaska in the amount of $6.5 million, which is helping support our Kenai Bluff Stabilization Project. This was a grant that was included in this year’s capital budget. We were successful in getting that in during the 2022 legislative session. This is a portion of the match money that the city is going to be responsible for the project. There’s also some additional money from the state from 2012 and 2015 that will be applied towards the match as well as money that’s included in the capital improvement program that makes up the total match that we feel that is going to be necessary for the project.”
In a memo to the council, Ostrander said the city will have secured the necessary money to meet the required match if the project’s total cost, design, and construction, does not exceed $35 million.
Ostrander added:
“We continue to look at other funding opportunities and there’s also some legislation at the federal level that could have a significant positive impact to the city with this project, but this is the first step and, actually, just so council knows, this is similar to what we just had with the light clearing and gate project at the airport in that this resolution authorizes me to sign this grant. As you’ll see, there’s also an ordinance that was introduced tonight that actually appropriates the money. So, there’s two separate pieces of legislation. This one authorizes me to execute the grant and the other one appropriates the money for the project.”
The Kenai Bluff Stabilization Project has been the number one priority for the City of Kenai for over 30 years.