The Kenai City Council votes to authorize the City Manager to extend the restaurant concession agreement in the Kenai Municipal Airport for an additional year. Council passed a resolution in August 2018, which authorize the manager to enter into a concession agreement with the Brothers’ Café with an initial term of two years and the opportunity to extend for three successive one-year terms pending Council approval.
City Manager Paul Ostrander discusses the café’s current agreement:
“It was an agreement for two years and then also approval upon mutual consent for three successive one-year terms. This is for the second of those the successive one-year terms. This is year four of the agreement. This would extend it from July 1st of 2021 until July 1st of 2022. It’s under the same contractual agreement that we were the very first time. The thing that changed between the first time that they signed the agreement to now is because of the terminal rehabilitation project, we subsidized their rent for a long period of time and then because of COVID, we forgave their rent for an extended period of time after that. There’s been a long period of time where they’ve been paying either less than the 10% that’s in the contract or zero for the month. As of July 1st, my authorization to provide any sort of subsidized rent that the council has provided me goes away. So as of July 1st, the original contract agreement which is that they pay 10% of gross sales monthly to the city, that will start again.”
The Airport Commission reviewed the request at its June 10, 2021 meeting and unanimously recommended that the Council approve the fourth amendment to the restaurant concession agreement extending the agreement for another year.
Resolution No. 2021-44 unanimously passed the Kenai City Council.