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Challenger Center to close; council approves lease termination and city to assess facility next steps
Summary
Kenai City Council adopted a resolution Nov. 5 terminating the lease with Alaska Center for Space Technology (Challenger Center) after the board reported revenue losses and staff layoffs; the city will assess the facility, cover near-term utilities as needed and schedule a work session on options.
Kenai' The Kenai City Council on Nov. 5 adopted a resolution to mutually terminate the lease at 9711 Kenai Spur Highway with Alaska Center for Space Technology, Inc., the nonprofit operator of the Challenger Learning Center, after the center's board reported insurmountable operating shortfalls and planned to close Nov. 15.
Tim Dillon, president of the Challenger Center board, told the council the center had experienced years of revenue decline and that, unlike some public impressions, federal agencies did not provide recurring operational funding. He said the organization has been paying national franchise fees and operational costs and that declining revenues forced staff layoffs about six weeks earlier and the board to plan closure.
Community leaders and council members spoke in appreciation for the center's decades-long STEM outreach. Several council members and the student representative recounted school visits and thanked staff for their service.
Acting city administration staff said public works and administration will conduct a facility walkthrough and prepare an assessment, including a short-term review of utility costs; administration indicated it would return to council with a request for appropriation to cover utilities if needed and planned a future work session to consider the facility's future. The council adopted the lease-termination resolution by unanimous consent.
Dillon said the board is preparing materials and programmatic assets for potential transfer or distribution; staff noted some curriculum materials are being coordinated with the school district and that Marathon (a private partner) helped pay for youth mission participation in the past.
Next steps: city staff will inventory facility assets, present utilities cost estimates and propose options for council consideration at a future work session.
