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Commission endorses airport land lease with Schilling Rentals; no competing applications received

5077417 · June 26, 2025
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Summary

The commission recommended council approve a lease of airport reserve land to Schilling Rentals after public notice produced no competing applications; staff said the lease carries an annual fee adjusted by CPI and the airport commission had conditioned approval on no competing applications.

The Kenai Planning and Zoning Commission on June 25 recommended that city council approve a lease of airport reserve land (Lot 3, Block 2 — General Aviation Apron; Plat No. 73‑68) to Schilling Rentals.

Staff said the lease had been publicly noticed and no competing land‑lease applications were received during the 30‑day window. The airport commission reviewed the application earlier in June and recommended approval contingent on no competing applications. Staff described the arrangement as effectively a new lease because the previous lease would expire before council meets; the city retains ownership of airport land and charges an annual lease fee adjusted by CPI, with appraisals every five years to set rates.

Commissioners asked about subleasing and whether there had been complaints. Staff said there were no complaints filed during the notice period, that the lessee had invested in hangars and existing development, and that subleases (for example, to aviation operators such as Guardian Flight) are common; the city retains revenue and oversight. With no objection, the commission approved the recommendation by unanimous consent and forwarded it to council.