City gives airport vendor break due to construction disruption

Mar 12, 2019

As work continues to remodel the Kenai Municipal Airport terminal building, businesses inside are suffering. At last week’s Kenai City Council meeting, the council took steps to relieve the financial burden all the construction is causing.

Introduced by Vice Mayor Tim Navarre, the resolution would give the city manager the power to adjust occupancy fees on a case-by-case basis.

“Reducing the percentage to 5% of gross receipts until the impacts of construction are no longer significant. Something like that. And that would be based at least the way I would look at it would be based on gross receipts," said City Manager Paul Ostrander. "So if I saw their gross receipts go, you know, significantly up in June July. At that point, I would think that the impacts were not that significant. And we could go back to the 10% but again, I think there is language that could be included here that would give me the discretion to make that determination until construction is completed.

Another councilman agreed it would be a good move to provide some relief.

“You can't see the restaurant or you can even get to it or it's a maze or whatever. I don't know how we can charge your money during that time," said Councilman Robert Peterkin. "But I like the idea of Paul having the latitude and I think that's important because there may be other times where they're working in a whole 'nother spot and it's just fine so you can take it up and down or whatever needs to be done.”

The resolution allows Ostrander to reduce the monthly percentage of gross profits the city receives from Brothers Cafe down to five percent from 10, and even further reduce it if need be.

The measure passed unanimously with five council members present.