Planning commission recommends conveying five borough parcels to Homer for Kachemak sponge stormwater project

The Kenai Peninsula Borough Planning Commission voted April 27 to recommend that the assembly convey five borough parcels to the City of Homer at less than fair‑market value to support a City of Homer stormwater management project colloquially described in staff materials as part of the 'Kachemak sponge.'

Director Ruffner told commissioners the five parcels are primarily wetlands near the Homer boatyard and airport and that the city previously identified the properties for stormwater management. He said the city obtained a NOAA grant that will reimburse a portion of the parcels’ value and that the transfer is a municipal‑to‑municipal conveyance. Staff described prior work that reduced an original set of parcels down to the five now proposed for transfer.

Commissioners asked what protections exist to prevent resale if the city does not complete the project, noting the conveyance is for less than fair‑market value. Staff responded that conveyance language in the transfer agreement addresses the concern and that federal grant conditions create additional constraints — staff said federal funding mechanisms provide a stronger enforcement hook should the parcels be used for other purposes.

A commissioner representing the area described the parcels as wetlands with deep peat deposits that make building impractical, which staff and others said reduces the risk the parcels would be repurposed for development.

The commission moved and seconded the recommendation to forward the municipal conveyance to the assembly; the motion passed on a roll‑call vote. The assembly will consider the ordinance authorizing the conveyance in its legislative process.