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Kenai council adopts MOU with Tidewater LLC to guide replatting of Dena'ina Point Estates
Summary
The Kenai City Council voted unanimously July 8 to adopt a memorandum of understanding with Tidewater LLC that creates a framework for replatting and potential development of Dena'ina Point Estates, including a 10‑year first right of refusal and an appraisal requirement; staff estimated infrastructure needs could exceed $15 million.
The Kenai City Council on July 8 adopted a memorandum of understanding (MOU) with Tidewater LLC that lays out how the city and the developer will plan and potentially develop the long‑vacant Dena'ina Point Estates subdivision.
City Manager Eubank told the council the MOU does not guarantee future rezoning or final agreements but does grant Tidewater a 10‑year first right of refusal on city properties in the subdivision and requires an appraisal (paid by the developer) to set current value, with CPI adjustments until a transaction occurs. “I will tell you the engineer's estimate to do installation of roads and utilities under this proposed layout is in excess of $15,000,000,” Eubank said during council discussion.
The action follows enactment of Ordinance 3532, which authorizes the city to share subdivision costs and increases appropriations in the general fund, lands administration by $54,219 to allow the city's participation in replatting work. Vice Mayor Askin moved the ordinance and the council recorded seven yes votes to enact it.
Two members of the public spoke during the hearing. Ryan Tunseth, an adjacent landowner, asked the city to notify neighboring owners about any changes affecting parcel boundaries and said he wanted to stay informed as the project moves forward. Developer representative Eric Downs, speaking for Tidewater LLC, described erosion concerns along the bluff and said engineers estimate the bluff is “losing about 2 feet a year, plus or minus,” a key factor in the project's design and setbacks.
Eubank explained the project's rationale: the original 1984 plat configuration, current suburban residential zoning, and multiple ownership have impeded development. Under the proposed approach the city would participate pro rata (owning roughly two‑thirds of the acreage at present) in resubdivision costs; the layout shown in council materials is preliminary and envisions about 204 lots (128 single‑family, 46 multifamily, 30 commercial), but Eubank stressed the plan does not guarantee future leases, sales, or rezones.
Council members asked about timing and contingencies; Eubank said rezones cannot proceed until a preliminary plat exists and that final infrastructure agreements, installation of roads and utilities, and any land exchanges will require separate future approvals. The council then adopted Resolution 2026‑51 to authorize execution of the MOU.
What happens next: staff and Tidewater will prepare preliminary plat materials, an appraisal will be completed, and the parties will negotiate subsequent subdivision installation agreements or leases if the project proceeds. Final decisions on rezoning, infrastructure installation, and property transfers will return to council for approval.
Votes and formal actions: Ordinance 3532 (authorizing city participation in replatting and appropriating $54,219) was enacted by a 7–0 vote; Resolution 2026‑51 (authorizing the MOU with Tidewater LLC) was adopted by unanimous consent.
