Challenger Center board president says facility will close Nov. 15 as council adopts lease termination; city to assess utilities and facility options

Kenai City Council · November 6, 2025

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Summary

The City Council adopted a resolution to mutually terminate the lease with the Alaska Center for Space Technology (Challenger Center) after board president Tim Dillon said the center will close Nov. 15 due to lack of operating revenue.

Council adopted Resolution 2025‑64 to mutually terminate the lease at 9711 Kenai Spur Highway with the Alaska Center for Space Technology, the organization that operates the Challenger Center. Tim Dillon, president of the board of directors, addressed the council and said the organization must close operations because operational revenue "aren't there" and "we are completely closing down as of November 15." Dillon clarified common misconceptions about external funding, stating that the Challenger Center was not receiving large operating grants from NASA and that the local franchise had operational obligations and recurring expenses.

Multiple council members thanked the Challenger Center leadership for years of service; council members and the student representative recounted personal experiences with the center's programs. Dillon and other board members described steps to preserve assets and curriculum: packaging classroom materials, working with the school district to make curriculum available, and coordinating with Marathon (a local partner) to support program continuity where possible.

Acting City Manager Ross and Chief David Ross said public works and administration will conduct a walk‑through and assess utility costs; the administration expects to bring an appropriation request to council for utilities and to schedule a future work session to discuss options for the facility. The resolution carried by unanimous consent.