MEMORANDUM

TO:                Ron Long, Assembly President

Members of the Kenai Peninsula Borough Assembly

THRU:           John J. Williams, Borough Mayor

Craig Chapman, Finance Director

Max Best, Planning Director

FROM:          Bonnie L. Golden, Grants Manager

COPY:           Marcus Mueller, KPB Land Manager

                        Cliff Calkins, President, Kachemak Gun Club

DATE:           August 3, 2006

SUBJECT:    Ordinance No. 2006-19-13: Acceptance and appropriation of a State grant in the amount of $20,000 on behalf of Kachemak Gun Club, Inc.

            Kachemak Gun Club, Inc. (“KGC”) currently leases property from the Borough for operating a shooting range. KGC has expressed a desire to purchase the property. KPB Ordinance 2005-39 authorizes the Borough to sell Tract C, ITC Anchor Point Subdivision to KGC for $27,200, which is less than fair market value. Consideration was given in the price amount because of a deed restriction that limits the use of the property for “uses consistent with the construction and operation of shooting range facilities and associated public purposes.”

            The Borough recently received notification from the Alaska Department of Commerce, Community and Economic Development of a grant award in the amount of $20,000. The purpose of the grant is for “Kachemak Gun Club Shooting Range Improvements.” (See attached notification from DCCED.) In a letter to the Borough dated July 17, 2006, Representative Paul Seaton indicated that it was his intention to help KGC with funding to acquire the land or make any improvements KGC deemed necessary. (Letter attached)

            The attached ordinance authorizes the acceptance and appropriation of the $20,000 grant. When the ordinance is enacted, the grant funds will be appropriated to a general grant account on behalf of KGC. When KGC is ready to finalize the land purchase, the funds will be applied towards the $27,200 purchase price. KGC will be responsible for providing any additional funds needed for the purchase.