Kenai planning commission approves retail marijuana store permit and West Ward Estates preliminary plat

The Kenai Planning and Zoning Commission on May 28 voted 4–2 to approve a conditional use permit for a retail marijuana store at 7825 Kenai Spur Highway and adopted a resolution recommending approval of the West Ward Estates preliminary plat for a three-lot subdivision in the rural residential zoning district.

Staff told the commission the retail marijuana site, on Cole Homestead Subdivision Tract A, meets the criteria in the Kenai zoning code for a conditional use in the general commercial district and complies with local buffer and operational standards. "Staff finds that the proposed conditional use permit to develop and operate a retail marijuana facility at 7825 Kenai Spur Highway . . . meets the criteria for issuance of [a] conditional use permit," Director Buettner said during the staff report.

The conditional use permit carries five staff conditions: compliance with all applicable federal, state and local regulations; an on-site inspection if requested by staff; prohibition on on-site consumption; no detectable odor outside the establishment; and restricted hours (the establishment "may not conduct business on or allow any customer or consumer to access the license premises between the hours of 5AM and 8AM daily," per the permit conditions and state restrictions reported to the commission).

Applicant Michael Welch told the commission he purchased the building at 7825 Kenai Spur Highway a few years ago and intends to operate a retail store there rather than cultivation. "I bought this building a couple years ago, slowly starting to renovate it now. I do own another retail store on K–Beach Road. Had that one going since 2020," Welch said.

One nearby resident, Reid Knackstead, spoke in opposition during public comment, saying he did not want retail marijuana near his home and expressing concern about proximity to a nearby school. "I don't believe that we should have retail marijuana or marijuana cultivation," Knackstead said, adding that his property is "probably 500 feet" from the site.

Staff measured buffer distances required by the Kenai Municipal Code and reported the nearest elementary school, Mark Mountain View Elementary at 315 Swires Road, is 1,186.7 feet from the subject parcel. Staff also measured the distance to the Seventh-day Adventist Church parcel at approximately 2,001.89 feet and said the site meets the municipal buffer requirements for a commercial marijuana establishment.

The commission recorded votes as follows: Commissioner Fikes — yes; Vice Chair Ersley — yes; Commissioner Krause — yes; Commissioner Woodard — no; Commissioner Reveal — no; Commissioner Petty — yes. The commission chair announced the resolution PZ2025-18 was approved 4 yes, 2 no.

On the subdivision matter, the commission moved to approve resolution PZ2025-20 recommending approval of the preliminary plat titled West Ward Estates (edition 2), which would subdivide Government Lot 16 and portions of the southeast quarter of Section 26, Township 6 North, Range 12 West, Seward Meridian, into three parcels and dedicate an extension of Wells Way.

Director Buettner said the proposed subdivision meets the rural residential minimum lot size (20,000 square feet), and the smallest proposed lot is approximately 145,621 square feet (about 3.343 acres). City water is available along Wells Way and has been installed on the proposed Lot 2; city wastewater is not available, so private septic systems already exist on Lots 1 and 2 and remain subject to Alaska Department of Environmental Conservation requirements. A 15-foot utility easement is shown adjacent to Wells Way. Buettner also noted that the western roughly 35 feet of tideland for proposed Lots 1 and 2 is within FEMA regulatory flood zone VE (coastal high hazard), while the remainder of those lots and all of Lot 3 are designated as nonregulatory flood zone D (undetermined flood risk). Staff recommended approval subject to the standard condition that future development conform to federal, state and local regulations.

Commission discussion on the plat focused on access and the status of Wells Way. Staff said Wells Way is currently an unmaintained right-of-way that functions largely as a driveway and that the plat formalizes existing access but does not immediately require full road improvements. When commissioners asked about signage and snow removal, staff said the city would ensure a sign is present at the intersection and that road improvements would be pursued if development increases beyond the existing two dwellings served there.

The commission approved the preliminary plat by unanimous consent during the meeting.

During reports, Director Buettner said staff plan to conduct three spot traffic counts at the Aspen Creek project in the coming week, including counts during shift changes and random spot checks, to distinguish resident, staff and visitor traffic. Buettner also described the start of a 12-month transportation planning effort to produce a high-level existing-conditions report and to feed project needs into grant applications and the city's comprehensive plan.

The commission was advised of a 15-day appeal period for an aggrieved party to file an appeal with the clerk's office regarding the conditional use permit approval.

Votes at a glance: Resolution PZ2025-18 — conditional use permit for retail marijuana store at 7825 Kenai Spur Highway: approved 4–2 (Fikes, Ersley, Krause, Petty yes; Woodard, Reveal no). Resolution PZ2025-20 — preliminary plat West Ward Estates recommended for approval: approved by unanimous consent.

The commission's next meeting was tentatively moved to June 25; staff reported there were no items currently scheduled for the June 11 meeting.