Borough staff asked the Kodiak Island Borough Assembly on Thursday to consider disposing of a parcel commonly known as the Kodiak Fairgrounds so the manager can negotiate a new long‑term lease with Kodiak Rodeo and State Fair Incorporated.

Manager Amy Williams said the fairgrounds property has been under a 55‑year lease assumed from the state and that the existing lease expires Nov. 3, 2025. The lessee has requested a new lease; to proceed the borough must first consider disposal under borough code. The planning and zoning commission reviewed the properties and found a public need does not exist for the two unredeemed parcels acquired by clerk's deed in 2024.

Staff presented a draft lease for assembly review. The proposed arrangement discussed at the work session was a 25‑year lease with five‑year review steps intended to help the nonprofit access grant funding; the rental rate cited in the staff packet and draft lease is $500 per year. Manager Williams said staff placed a physical copy of the draft lease in front of assembly members for review.

Assembly member Dave supported the lease in principle but asked staff to include a fair‑market valuation and show the in‑kind contribution as part of budget documents so taxpayers can see the value of below‑market rent: "At a minimum, I think a fair market value assessment so that when we approve our budget every year, we're including that as an in kind contribution...so taxpayers know the value of the donation of below market lease terms," he said. Jared supported including the assessment and suggested staff assemble a spreadsheet showing similar nonprofit land values to aid budget transparency.

If the assembly votes in favor of the resolution, the manager will be directed to negotiate the lease; the work session did not include a final assembly vote on the lease terms. The manager noted that the fairgrounds operator requested the longer lease term to improve eligibility for external grant funding and said the operator covers substantial revenue from rentals at the site.

Ending: The assembly heard the request and asked staff for a fair‑market value accounting to be returned during budget discussions; the final lease and any assembly action will come at a subsequent meeting.