Kodiak Island Borough Assembly objects to renewal of restaurant license 3293, warns transfer could be affected

The Kodiak Island Borough Assembly on Jan. 16 voted 5-1 to object to the renewal of restaurant and eating place license number 3293 and directed the borough clerk to notify the Alaska Alcoholic Beverage Control (ABC) board.

The objection, offered by Assembly Member Jared and seconded by another assembly member, followed a clerk’s investigation that cited an inaccurate business address in the application packet and evidence the business listed on the application had been inactive for several years. Borough Clerk Lena reported the clerk’s office had not received a response from the licensee after attempts to contact them.

The objection matters because a transfer application for license 3293 is currently pending with the state. Borough Clerk Lena told the assembly that a local protest of the renewal could “ripple” into the transfer review: if the ABC board upholds the borough’s protest or delays action, the transfer could be held over to a later meeting or put on hold while appeals or further investigation take place.

Small business owners and residents addressed the assembly during the public-comment period. Melissa Burns, who said she owns and operates Nunez Cafe downtown and applied last year for a transfer of an RLP permit, described her multi-year efforts to open and operate a restaurant in Kodiak and the economic strain of delays. “I ask for your support in obtaining this RLP — it has been a long journey and part of my business plan since inception,” Burns said. Leanna Harrington, who said she has followed the licensing matters closely, told the assembly she was tired of the drawn-out process and urged officials to press for clearer answers from AMCO, the state Alcohol and Marijuana Control Office. Resident Coral Chernoff urged the assembly to limit its review to criteria the state requires for renewal and not to try to reassign licenses to particular applicants.

Assembly debate focused on two competing concerns: some members said the borough should continue to object because the license listed in the renewal had been inactive for years and that failing to object rewards unfair delays; others said a protest could punish a prospective transferee who had already acted in good faith under the state’s process. Assembly members raised procedural questions about the timing and practical effects; Clerk Lena and staff repeatedly advised that ultimate authority rests with the ABC board and that the borough’s objection is advisory but could delay the transfer process if the board decides to uphold the protest or requests more information.

The roll-call vote on the motion to object recorded Yes from Assembly Members Griffin, Johnson, LeDoux, Smiley and Whiteside; Assembly Member Ames voted No. The motion directs the clerk to notify the ABC board of the borough’s objection.

The ABC board is scheduled to consider the renewal application and related matters on Feb. 4, 2025. The borough has a separate deadline for responding to the transfer notice; Clerk Lena said the borough’s deadline to respond to the transfer application is March 9, 2025. The clerk’s office also told the assembly it will attend the Feb. 4 ABC meeting by phone to answer questions.

Votes at a glance

- Ordinance FY2025-09 (amend KIBC 17.205.055 to require submission of all rezoning requests to the assembly): Adopted (roll-call 6-0). This change makes Planning and Zoning Commission recommendations advisory and gives the assembly final binding action on rezoning approvals and denials.

- Resolution FY2025-12 (authorize general obligation school refunding bond): Adopted (roll-call 6-0). Staff reported estimated potential savings on pricing; latest estimate cited in staff report was approximately $382,000 in aggregate savings, subject to market conditions.

- Resolution FY2025-13 (adopt alternative allocation method for FY25 shared fisheries business tax, FMA 13 Kodiak area): Adopted (roll-call 6-0). Borough share tabulated at $13,855 for FY25 under the proposed method; borough requested the assembly sign the required attachment to the state application.

- Ordinance FY2025-12 (accept and appropriate $53,182.40 in fisheries disaster grant funds): Advanced to public hearing (roll-call 6-0). Funds proposed for the fisheries economic development project fund.

- Ordinance FY2025-13 (write off 9 personal property delinquent tax accounts; total $15,190.98): Advanced to public hearing (roll-call 6-0). Staff said accounts were legally uncollectible after review with borough attorney.

- Ordinance FY2025-14 (redirect/appropriate remaining ARPA SLFRF funds and lock in prior obligations): Advanced to public hearing (roll-call 6-0). Staff provided a prioritized list of proposed projects to obligate remaining funds by Dec. 31 reporting requirements.

- Contract authorization for pool repairs (Contract FY2025-36, Water Technologies Inc., $88,900): No motion was made to place this item on the floor; therefore it did not proceed.

- Appointment to Solid Waste Advisory Board (Dennis Irwin, term to Dec. 31, 2025): Confirmed (roll-call 6-0).

Details and clarifications

- The clerk’s written investigation cited inaccuracies in the license application’s business address and indicated building- and fire-safety concerns because the business had been inactive at that address for several years. The clerk also referenced KIBC 5.01.020 and state regulation 3 AAC 305.085 as relevant to notification and objection procedures.

- Staff and the clerk repeatedly emphasized that the borough’s role is advisory to the state ABC board; the ABC board has the authority to uphold or reject protests, postpone matters to a later meeting, or request further investigation.

- Citizens described economic hardships they said resulted from the drawn-out licensing process; one small-business owner, Melissa Burns, said she submitted fingerprinting, full payment and other required documentation in 2022 and later learned AMCO had told her no new permits were available, delaying her business plan.

What’s next

The borough clerk’s office will transmit the assembly’s written objection to the ABC board. The ABC board’s February meeting packet includes the borough’s earlier protest letters filed Dec. 19, 2024; the borough staff said it will appear at or call into the Feb. 4 board meeting to answer questions. The transfer application tied to license 3293 remains pending with the state; the clerk indicated the borough’s deadline to object to the transfer notice is March 9, 2025.