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2025-09-11 Special MeetingKodiak Island Borough Assembly Special Meeting Agenda Thursday, September 11, 2025, 6:30 p.m. Assembly Chambers This meeting was called by the Mayor and Deputy Presiding Officer. This meeting is open to the public and will be broadcast on the Borough's YouTube Channel. Meeting packets are available online. Please subscribe to get meeting notifications when meeting packets are published. For public hearing and citizens comments, please call (907) 486-3231 or (855) 492-9202. Any public documents related to the agenda that are received and shared with elected officials after the initial agenda packet has been released will be included in the Supplemental Materials section below. The deadline for releasing supplemental materials is noon on the day of the meeting. Page 1. ROLL CALL 2. CITIZENS COMMENTS 3. CONSIDERATION OF MATTER(S) IN THE CALL FOR THE SPECIAL MEETING A. Abbreviated And Informal Hearing Of The State Of Alaska 3 - 19 Alcohol And Marijuana Control Office (AMCO) General Wholesale License (GWL) Renewal Application For Southern Glazer's Wine And Spirits Of Alaska, LLC DBA Southern Glazer's Of AK (License #4860) Agenda Item Report - Pdf B. Mayoral Veto On Contract No. FY2026-06, Kodiak Island 20 - 22 Borough Facilities Contract With MK Enterprise, LLC Agenda Item Report - Pdf C. EXECUTIVE SESSION - Discussion Of Pending Appeal Of The 23 Alutiiq Heritage Foundation Property Tax To The Superior Court Agenda Item Report - Pdf 4. ADJOURNMENT 5. SUPPLEMENTAL MATERIALS A. 3.0 BOE Information from Manager Williams 24 - 137 3.0 Agenda Item - Alutiig Heritage Foundation Information Page 1 of 142 Materials B. 3.13 ADEC Letter to Assembly 2025-09-11 ADEC Letter to KIB Assembly C. Meeting Materials 138 139 - 142 Page 2 of 142 AGENDA ITEM O.A. KODIAK ISLAND BOROUGH STAFF REPORT SEPTEMBER 11, 2025 ,�. ASSEMBLY SPECIAL MEETING SUBJECT: Abbreviated And Informal Hearing Of The State Of Alaska Alcohol And Marijuana Control Office (AMCO) General Wholesale License (GWL) Renewal Application For Southern Glazer's Wine And Spirits Of Alaska, LLC DBA Southern Glazer's Of AK (License #4860) ORIGINATOR: Lina Cruz, Deputy Clerk RECOMMENDATION: After the informal hearing, the Assembly's decision to protest the application shall stand unless a majority of the Assembly votes to withdraw the protest. To withdraw, the Assembly may use the motion "Move to withdraw the motion to voice protest for the renewal application for Southern Glazers of Alaska." DISCUSSION: At the August 21, 2025, Assembly regular meeting, the Assembly voiced protest the renewal application for GWL #4860. As required by 3 AAC 305.085(d) A local governing body that protests an application shall allow the applicant a reasonable opportunity to defend the application before a meeting of the local governing body. The licensee has been advised of the Assembly's decision to protest by mail and email. A copy of the letter has been added in the packet for reference. The complete August 21, 2025, agenda item packet report is attached to this packet for reference. The agenda summary lists the reasons for protest. ALTERNATIVES: Withdraw the protest for license #4860. FISCAL IMPACT: OTHER INFORMATION: KIBC 5.01.030 New license and transfer procedure which states: A. Upon receipt of notice from the Alcoholic Beverage Control Board of the board's receipt of an application or intent to approve the transfer or issuance of a new liquor license: 1. The clerk shall investigate to determine if the borough has an interest which can be protected by protesting the approval of the application for transfer or issuance of a new liquor license; 2. The clerk shall check with the state troopers on the number of trouble reports at the place of business,- 3. The clerk shall duly advertise and place the matter of the application upon the agenda for the next meeting of the assembly in order that citizens may express their desires as to whether or not the assembly should approve or protest the transfer or issuance of the liquor license; and 4. The notice of intent to establish a new liquor license or transfer of location of an existing license shall be mailed to each landowner within 1,500 feet of the proposed Kodiak Island Borough Page 3 of 142 Abbreviated And Informal Hearing Of The State Of Alaska Alcohol And Mari... AGENDA ITEM O.A. KODIAK ISLAND BOROUGH STAFF REPORT SEPTEMBER 11, 2025 ASSEMBLY SPECIAL MEETING D-1 - (�r location by the clerk. A transfer from one person to another of a liquor license, even if the location stays the same, shall be considered a request for a new liquor license by the Kodiak Island Borough. The applicant shall pay a fee based upon the cost of the notice and application processing costs to the borough. B. The assembly, after public hearing, shall determine by motion if a protest to the application is to be lodged with the Alcoholic Beverage Control Board. If a protest is lodged, the manager and attorney are authorized to use any document or evidence necessary to effectively advance the position of the borough at any hearing before the Alcoholic Beverage Control Board. AS O4.11.480 A local governing body may protest the approval of an application(s) by furnishing the director and the applicant with a clear and concise written statement of reasons for the protest within 60 days of receipt of this notice, and by allowing the applicant a reasonable opportunity to defend the application before a meeting of the local governing body, as required by 3 AAC 305.085(d). If a protest is filed, the board will deny the application unless the board finds that the protest is arbitrary, capricious, and unreasonable. To protest the application, responses must be sent to Alcohol Marijuana Control Office (AMCO) for the Alcoholic Beverage Control (ABC) Board within 60 days of receipt. 3 AAC 305.OR5 (d) A local governing body that protests an application shall allow the applicant a reasonable opportunity to defend the application before a meeting of the local governing body. Kodiak Island Borough Page 4 of 142 Abbreviated And Informal Hearing Of The State Of Alaska Alcohol And Mari... AGENDA ITEM O.A. Kodiak Island Borough OFFICE of the BOROUGH CLERK 710 Mill Bay Road Kodiak, Alaska 99615 Phone (907) 486-9310 Fax (907) 486-9391 E-mail: clerks@kodiakak.us August 22, 2025 Also VIA Email:sbecker@sgws.com & tammylove@southernwine.com Steven Becker/Southern Glazer's of AK 1600 NW 163'd Street Miami, FL 33169 RE: Hearing on Protest of General Wholesale License #4860 Renewal Application Dear Mr. Becker This correspondence serves to notify you that the review of the renewal application for General Wholesale liquor license #4860 pertaining to Southern Glazer's of AK was presented to the Kodiak Island Borough Assembly on August 21, 2025. In accordance with Alaska Statutes 04.11.480 and the regulations outlined in 3 AAC 305.085, the local governing authority possesses the right to oppose the renewal of a liquor license based on public policy considerations or issues related to the license itself. Following an investigation by the Clerk's Office, as stipulated in KIBC 5.01.020, it has been determined that factors associated with the license renewal application warrant an objection from the governing body to safeguard the interests of the Borough. Notably, the Borough is concerned about the possible discrepancy in the premise address of the license and the business license on file with the State of Alaska reflects an address in Anchorage, AK. Furthermore, 3 AAC 305.085(d) states that a local governing body that protests an application shall allow the applicant a reasonable opportunity to defend the application before a meeting of the local governing body. This opportunity is now scheduled for the regular Assembly meeting on Thursday, September 4, 2025. We strongly encourage your attendance, as you will have the chance to present your comments regarding the liquor license renewal application during this meeting. Sincerely, OFFICE OF THE BOROUGH CLERK Lina Cruz, Deputy Clerk Page 5 of 142 Abbreviated And Informal Hearing Of The State Of Alaska Alcohol And Mari... AGENDA ITEM O.A. KODIAK ISLAND BOROUGH STAFF REPORT AUGUST 21, 2025 r ASSEMBLY REGULAR MEETING SUBJECT: State Of Alaska Alcohol And Marijuana Control Office, General Wholesale License (GWL) Renewal Application For Southern Glazer's Wine And Spirits Of Alaska, LLC DBA Southern Glazer's Of AK (License #4860 Combined Renewal Notice For 2025-2026 Renewal Cycle) ORIGINATOR: Lina Cruz, Deputy Clerk RECOMMENDATION: The Assembly is to assess the GWL application based on the information contained within the packet, feedback received from staff, and response from local law enforcement. Below are examples of motions that may be used: Motion 1: Move to voice non -protest to the State of Alaska Alcohol and Marijuana Control Office (AMCO) GWL renewal application for Southern Glazer's of AK located at 5152 Tom Stiles Road Bldg. B - Bay 2, Kodiak, AK 99615 and direct the Clerk to notify AMCO of this decision. Motion 2: Move to voice protest to the State of Alaska Alcohol and Marijuana Control Office (AMCO) GWL renewal application for Southern Glazer's of AK located at 5152 Tom Stiles Road Bldg. B - Bay 2, Kodiak, AK 99615 and direct the Clerk to notify the applicant of this intent. Clerk's note: As required by 3 AAC 305.085(d), the local governing body shall allow the applicant a reasonable opportunity to defend the application before the local governing body. The applicant/licensee will be advised if the Assembly decides to protest the GWL application, and the applicant/licensee will be given an opportunity to defend the GWL application at a future meeting. DISCUSSION: On July 18, 2025, the Clerk's Office received a renewal notice from the Alcoholic Beverage Control (ABC) Board for License #4860, held by Southern Glazer's of AK. In accordance with KIBC 5.01.020, the Clerk's Office conducted a review of the application. The review identified several concerns below regarding the accuracy of the application and the operational status of the business, which may warrant an official protest by the Kodiak Island Borough Assembly. Assessing Department: • The business has no active business personal property or real property accounts on record. • The Assessor's Office confirmed with both Southern Glazer's and Odom that the listed address, "Bay 2," does not exist. • Southern Glazer's does not appear to have employees or a physical storefront in Kodiak and is reportedly billed by Odom for local sales. • It remains unclear whether Southern Glazer's is actively wholesaling in Kodiak. Clerk's Office: • The business license details show that the physical address for this specific business Kodiak Island Borough Page 6 of 142 Abbreviated And Informal Hearing Of The State Of Alaska Alcohol And Mari... AGENDA ITEM O.A. KODIAK ISLAND BOROUGH STAFF REPORT AUGUST 21, 2025 ` ASSEMBLY REGULAR MEETING license is located in Anchorage, Alaska. • The actual license states that it "must be posted in a conspicuous place at the business location. It is not transferable or assignable." Under AS O4.11.480, a local governing body may protest a license renewal by submitting a clear and concise written statement of the reasons for protest to both the ABC Board director and the licensee. The protest must be filed within 60 days of receiving the renewal notice. Accordingly, the Borough's deadline to respond is September 16, 2025. ALTERNATIVES: 1. Issue a letter of protest. 2. Issue a letter of non -protest. FISCAL IMPACT: OTHER INFORMATION: Per AS O4.11.480, a local governing body may protest the renewal by sending the AMCO director and the applicant a protest and the reason for the protest in a clear and concise statement within 60 days of the date of the notice of filing of the application. The Borough must also provide evidence of proof of service upon the applicant and proof that the applicant has had the opportunity to defend the application before the local governing body's meeting. In addition to Alaska Statutes 04.11.480, regulations in 3 AAC 305.085 states the local governing body has the authority to protest renewal of a liquor license for public policy reasons or due to license -related issues. Kodiak Island Borough Page 7 of 142 Abbreviated And Informal Hearing Of The State Of Alaska Alcohol And Mari... AGENDA ITEM #3.A. or THE STATE Department of Commerce, Community, and Economic Development OfALASKA ALCOHOL & MARIJUANA CONTROL OFFICE �= GOVERNOR MIKE DUNLEAVY 550 West 7" Avenue, Suite 1600 Anchorage, AK 99501 A r. A5 Main: 907.269.0350 July 17, 2025 From: Alcohol.licensing@alaska.gov; amco.localgovernmentonlv@alaska.gov; Licensee: Southern Glazer's Wine And Spirits Of Alaska, LLC DBA: Southern Glazer's of AK VIA email: tammylove@southernwine.com; sbecker@sgws.com; CC: None Local Government 1: Outside City Limits Local Government 2: Kodiak Island Borough Via Email: Icruz@kodiakak.us; clerks@kodiakak.us; Community Council: n/a Via Email: n/a Re: General Wholesale License #4860 Combined Renewal Notice for 2025-2026 Renewal Cycle License Number: #4860 License Type: General Wholesale Licensee: Southern Glazer's Wine And Spirits Of Alaska, LLC Doing Business As: Southern Glazer's of AK Physical Address: 5152 Tom Stiles Road Bldg B - Bay 2, Kodiak, AK, 99615 Designated Licensee: Steven Becker Phone Number: 305-625-4171; 305-627-1102; 305-627-1261 Email Address: tammylove@southernwine.com; sbecker@sgws.com; ® License Renewal Application Dear Licensee: ❑ Endorsement Renewal Application Our staff has reviewed your application after receiving your application and the required fees. Your renewal documents appear to be in order, and I have determined that your application is complete for purposes of AS O4.11.510, and AS O4.11.520. Your application is now considered complete and will be sent electronically to the local governing body(s), your community council if your proposed premises are in Anchorage or certain locations in the Matanuska- Susitna Borough, and to any non-profit agencies who have requested notification of applications. The local governing body(s) will have 60 days to protest the renewal of your license. Page 8 of 142 Abbreviated And Informal Hearing Of The State Of Alaska Alcohol And Mari... AGENDA ITEM #3.A. Your application will be scheduled for the September 16th, 2025 board meeting for Alcoholic Beverage Control Board consideration. The address and call -in number for the meeting will be posted on our home page. The board will not grant or deny your application at the meeting unless your local government waives its right to protest per AS O4.11.480(a). Please feel free to contact us through the Alcohol.licensine@alaska.gov email address if you have any questions. Dear Local Government: We have received completed renewal applications for the above -listed licenses within your jurisdiction. This is the notice required under AS O4.11.480. A local governing body may protest the issuance, renewal, relocation, or transfer to another person of a license with one or more endorsements, or issuance of an endorsement by sending the director and the applicant a protest and the reasons for the protest in a clear and concise statement within 60 days of the date of the notice of filing of the application. A protest received after the 60-day period may not be accepted by the board, and no event may a protest cause the board to reconsider an approved renewal, relocation, or transfer. To protest any application(s) referenced above, please submit your written protest for each within 60 days to AMCO and provide proof of service upon the applicant and proof that the applicant has had a reasonable opportunity to defend the application before the meeting of the local governing body. If you have any questions, please email amco.localeovernmentonlv@alaska.eov. Dear Community Council (Municipality of Anchorage and Mat -Su Borough only) We have received a completed renewal application for the above -listed license (see attached application documents) within your jurisdiction. This letter serves to provide written notice to the above -referenced entities regarding the above application, as required under AS O4.11.310(b) and AS O4.11.525. Please contact the local governing body with jurisdiction over the proposed premises for information regarding the review of this application. Comments or objections you may have about the application should first be presented to the local governing body. If you have any questions, please email Alcohol. Iicensine@alaska.eov Sincerely, Alysha Pacarro, Licensing Examiner II For Kevin Richard, Director Page 9 of 142 Abbreviated And Informal Hearing Of The State Of Alaska Alcohol And Mari... AGENDA ITEM #3.A. 4 r co o'� Document reference ID : 4818 Renewal Application Summary Application ID: 4818 License No: 4860 License Type applied for Renewal: General Wholesale License (GWL) Licensee Name: Southern Glazer's Wine And Spirits Of Alaska, LIc Application Status: In Review Application Submited On: 12/23/2024 01 :13 PM AKST Entity Information Business Structure: Limited liability company FEIN/SSN Number: Alaska Entity number (CBPL): 118548 Alaska Entity Formed Date: Home State: Entity Contact Information Entity Address: 1600 NW 163rd Street, Attn: Tammy Love, Miami, FL, 33169 Page 10 of 142 Abbreviated And Informal Hearing Of The State Of Alaska Alcohol And Mari... AGENDA ITEM O.A. Renewal Information Are there any changes to your ownership structure that have not been reported to AMCO prior to this application?: No As set forth in AS O4.11.330, how many hours did you operate during the first calendar year for this renewal period?: The license was regularly operated continuously throughout the first calendar year for this renewal period. As set forth in AS O4.11.330, how many hours did you operate during the second calendar year for this renewal period?: The license was regularly operated continuously throughout the second calendar year for this renewal period. Please select the seasonality: Year-round Has any person or entity in this application been convicted or disciplined for a violation of Title 04, 3 AAC 304 or 305, or a local ordinance adopted under AS O4.21.010 in the preceding two calendar years?: No Have any notices of violation or citations been issued for this license during the preceding two years?: No Supplier Information Supplier Count 76 or More Suppliers Supplier Declarations • AK-AB-25 scan 1.pdf • AK-AB-25 Scan 2.pdf Page 11 of 142 Abbreviated And Informal Hearing Of The State Of Alaska Alcohol And Mari... AGENDA ITEM #3.A. Attestations As an applicant for a liquor license renewal, I declare under penalty of perjury that I have read and am familiar with AS 04 and 3 AAC 305, and that this application, including all accompanying schedules and statements, are true, correct, and complete. I agree to provide all information required by the Alcoholic Beverage Control Board or requested by AMCO staff in support of this application and understand that failure to do so by any deadline given to me by AMCO staff will result in this application being returned and the license being potentially expired if I do not comply with statutory or regulatory requirements. I certify that in accordance with AS O4.11.450, no one other than the licensee(s), as defined in AS 04.11.260, has a direct or indirect financial interest in the licensed business. I certify that this entity is in good standing with Corporations, Business and Professional Licensing (CBPL) and that all entity officials and stakeholders are current and I have provided AMCO with all required changes of the ownership structure of the business license and have provided all required documents for any new or changes of officers. I certify that all licensees, agents, and employees who sell or serve alcoholic beverages or check identification of patrons have completed an alcohol server education course approved by the ABC Board and keep current, valid copies of their course completion cards on the licensed premises during all working hours, if applicable for this license type as set forth in AS O4.21.025 and 3 AAC 305.700. I hereby certify that I am the person herein named and subscribing to this application and that I have read the complete application, and I know the full content thereof. I declare that all of the information contained herein, and evidence or other documents submitted are true and correct. I understand that any falsification or misrepresentation of any item or response in this application, or any attachment, or documents to support this application, is sufficient grounds for denying or revoking a license/permit. I further understand that it is a Class A misdemeanor under Alaska Statute 11.56.210 to falsify an application and commit the crime of unsworn falsification. Signature This application was digitally signed by : Steven R Becker on 12/23/2024 01:15 PM AKST Payment Info Payment Type: CC Page 12 of 142 Abbreviated And Informal Hearing Of The State Of Alaska Alcohol And Mari... AGENDA ITEM #3.A. Payment Id: ecd823dd-2ced-415a-bfce-caf43d367d8f Receipt Number: 100997050 Payment Date: 12/23/2024 01:27 PM AKST Documents # File Name Type Added On 1 AK-AB-25 scan 1.pdf Supplier Declarations 12/23/2024 01:14 PM 2 AK-AB-25 Scan 2.pdf Supplier Declarations 12/23/2024 01:14 PM Page 13 of 142 Abbreviated And Informal Hearing Of The State Of Alaska Alcohol And Mari... AGENDA ITEM #3.A. OHO JG jA" O Document reference ID : 4818 Licensing Application Summary Application ID: 4818 Applicant Name: Southern Glazer's Wine And Spirits Of Alaska, LIc License Type applied for: General Wholesale License (GWL) (AS O4.09.100) Application Status: In Review Application Submitted On: 12/23/2024 01:13 PM AKST Entity Information Business Structure: Limited liability company Alaska Entity Number (CBPL): 118548 Entity Contact Information Entity Address: 1600 NW 163rd Street, Attn: Tammy Love, Miami, FL, 33169, USA Ownership / Principal Party Details Principal Parent Entity Principal Party Role %Ownershi P Southern Glazer's Wine And Southern Glazer's Wine & Spirits- Membe 100 Spirits Of Alaska, LIc Pacific Northwest LIc r Premises Address Address: 5152 Tom Stiles Road Bldg B - Bay 2, Kodiak, AK, 99615, USA Page 14 of 142 Abbreviated And Informal Hearing Of The State Of Alaska Alcohol And Mari... AGENDA ITEM O.A. Does the proposed site include a Yes valid street address? Basic Business information Business/Trade Name: Southern Glazer's of AK Local Government and Community Council Details City/Municipality No Local Government Borough Kodiak Island Borough Attestations I certify that all proposed licensees (as defined in AS O4.11.260) and affiliates have been listed on this application. I certify that I understand that providing a false statement on this form or any other form provided by AMCO is grounds for rejection or denial of this application or revocation of any license issued. I certify that all licensees, agents, and employees who sell or serve alcoholic beverages or check the identification of a patron will complete an approved alcohol server education course, if required by AS O4.21.025, and, while selling or serving alcoholic beverages, will carry or have available to show a current course card or a photocopy of the card certifying completion of approved alcohol server education course, if required by 3 AAC 305.700. 1 agree to provide all information required by the Alcoholic Beverage Control Board in support of this application. I hereby certify that I am the person herein named and subscribing to this application and that I have read the complete application, and I know the full content thereof. I declare that all of the information contained herein, and evidence or other documents submitted are true and correct. I understand that any falsification or misrepresentation of any item or response in this application, or any attachment, or documents to support this application, is sufficient grounds for denying or revoking a license/permit. I further understand that it is a Class A misdemeanor under Alaska Statute 11.56.210 to falsify an application and commit the crime of unsworn falsification. I certify that all proposed licensees have been listed with Division of Corporation, Business, and Professional Licensing. I certify that I and any individual identified in the business entity ownership section of this application, has or will read AS 04 and its implementing regulations. Page 15 of 142 Abbreviated And Informal Hearing Of The State Of Alaska Alcohol And Mari... AGENDA ITEM #3.A. Signature This application was digitally signed by : Steven R Becker on 12/23/2024 01:15 PM AKST Payment Info Payment Type : CC Payment Id: ecd823dd-2ced-415a-bfce-caf43d367d8f Receipt Number: 100997050 Payment Date: 12/23/2024 01:27 PM AKST Page 16 of 142 Abbreviated And Informal Hearing Of The State Of Alaska Alcohol And Mari... AGENDA ITEM #3.A. From: Seema Garoutte To: Una Cruz Cc: Aimee Williams; Irk ; Nova Javier Subject: RE: 2025-2026 Renewal Notice LIC#4860 Southern Glazer"s of AK (Bcc"d Staff) Date: Tuesday, July 29, 2025 9:17:37 AM Attachments: imaae001.oif Assessing has no business personal property or real account for Southern Gaze The Assessor's office has verified with Southern Glaze and Odom that there is no such address as Bay 2. Southern Glaze has no employees or storefront in Kodiak but is billed by Odom for sales. Assessing is unclear if Southern Glaze wholesales in Kodiak. Assessing has an interest in protesting this renewal based on those reasons. If Southern Glaze can provide more information and corrects the address with the board, Assessing may retract its protest. Best, seelnla ctaroutte Assessor Certified Level 5 Appraiser, #304 2025 AAACI Board President 710 Mill Bay Road Kodiak, AK. 99615 907-486-9350 ISE From: Una Cruz <Icruz@kodiakak.us> Sent: Tuesday, July 22, 2025 3:13 PM To: Seema Garoutte <saroutte@kodiakak.us> Cc: Aimee Williams <awilliams@kodiakak.us>; Clerks <Clerks@ kodiaka k. us>; Nova Javier <njavier@kodia ka k.us> Subject: RE: 2025-2026 Renewal Notice LIC#4860 Southern Glazer's of AK (Bcc'd Staff) Hi Seema, You may protest this application on the grounds that the business does not appear in our system and has not reported any business personal property taxes. However, the response we received from AMCO indicates that the attached business license matches the information they have on file: Southern Glazer's of AK (DBA), owned by Southern Glazer's Wine and Spirits of Alaska, LLC (Entity Name). Let me know if that answers your questions Page 17 of 142 Abbreviated And Informal Hearing Of The State Of Alaska Alcohol And Mari... AGENDA ITEM #3.A. LICENSE DETAILS License #: 2109532 Print Business License Business Name: Southern Glazer's of AK Status: Active Issue Date: 07/13/2020 Expiration Date: 12/31/2026 Has Telemedicine: No Mailing Address: 1600 NW 163 Street Attn Tammy Love Miami, FL 33169 Physical Address: 6300 Changepoint Drive Anchorage, AK 99518 Owners Entity Owner Name i Entity Status Southern Glazer's Wine and Spirits of Alaska, LLC 118548 Good Standing Activities Line of Professional Business NAICS License # 42 - Wholesale 424820 - WINE AND DISTILLED ALCOHOLIC Trade BEVERAGE MERCHANT WHOLESALERS Endorsements No Endorsements Found License Lapse(s) If this business license lapsed within the last four years the lapsed periods will appear below. Lapsed periods are the unlicensed period between an expiration date and renewal date. No Lapses on record for the last 4 years. Close License Detail - Print Friendly Version Page 18 of 142 Abbreviated And Informal Hearing Of The State Of Alaska Alcohol And Mari... D 07 m sv' m a D 0- 3 v 0) O cc 0 CD to tv m 0 D v D_ C7 O 3 O_ D a iv 0 Y N Alaska Business u.ense u 2109532 Alaska Department of Commerce, Community, and Economic Development Division of Corporations, Business, and Professional Licensing PC Box 110806, Juneau, AK 99811-0806 This is to certify that Southern Glazer's of AK 1600 NW 163 Street, Attn Tammy Love, Miami, FL 33169 owned by Southern Glazer's Wine and Spirits of Alaska, LLC is licensed by the department to conduct business for the period November 7, 2024 to December 31, 2026 for the following line(s) of business: 42 - Wholesale Trade { OF 7, 1 , E This license shall not be taken as permission to do business in the state without having complied with the other requirements of the laws of the State or of the United States. This license must be posted in a conspicuous place at the business location. It is not transferable or assignable. .t� Julie Sande Commissioner AGENDA ITEM O.B. KODIAK ISLAND BOROUGH STAFF REPORT SEPTEMBER 11, 2025 ASSEMBLY SPECIAL MEETING SUBJECT: Mayoral Veto On Contract No. FY2026-06, Kodiak Island Borough Facilities Contract With MK Enterprise, LLC ORIGINATOR: Irene Arellano, Assistant Clerk RECOMMENDATION: Move to override the mayoral veto on Contract No. FY2026-06, Kodiak Island Borough Facilities Contract With MK Enterprise, LLC. DISCUSSION: Contract No. FY2026-06 was approved on August 7, 2025, and the Mayor filed a mayoral veto on Tuesday, August 21, 2025. If the Assembly desires to override the veto, it must make and approve a motion to override by a 2/3 majority (5 affirmative votes) at this meeting. The 2/3 vote required is out of the entire membership (7 members) and not of those who are present. If no one makes the motion, the veto will stand. ALTERNATIVES: FISCAL IMPACT: OTHER INFORMATION: KIBC 2.20.060 Veto A. Except as provided in subsection C of this section, the mayor may veto an ordinance, resolution, motion, or other action of the assembly and may strike or reduce appropriation items except for school budget items. B. A veto must be exercised before the next regular meeting of the assembly and must be accompanied by a written explanation of the reasons for the veto. A veto may be overridden by a vote of two-thirds of the authorized membership of the assembly within 21 days following exercise of the veto, or at the next regular meeting, whichever is later. C. The veto does not extend to: 1. Appropriation items in a school budget resolution/ordinance; 2. Actions of the assembly sitting as the board of adjustment; or 3. Adoption or repeal of a manager plan of government. Additional Documentation: 1. Previous Facilities Contract FY2012-04, Ext. A&B 2. Previous Facilities Contract FY2017-17, Ext. A-C 3. 20250610 Facilities Contract ITB Package 4. MK Enterprises Bid Package 5. Brechan Construction Bid Package 6. AIM Maintenance Bid Package 7. 20250724 Bid Tabulation Sheet Kodiak Island Borough Page 20 of 142 Mayoral Veto On Contract No. FY2026-06, Kodiak Island Borough Facilities... AGENDA ITEM #3.B. KODIAK ISLAND BOROUGH STAFF REPORT SEPTEMBER 11, 2025 ASSEMBLY SPECIAL MEETING D�1 8. 20250724 Ltr to AIM Maintenance for Non -Responsiveness 9. 20250725 MK Enterprises Protest Letter 10. 20250725 Ltr KIB Response to MK Protest Letter 11. 20250808 Notice of Intent to Award to MK Enterprises 12. 20250822 AIM Maintenance Protest Letter Kodiak Island Borough Page 21 of 142 Mayoral Veto On Contract No. FY2026-06, Kodiak Island Borough Facilities... AGENDA ITEM O.B. Kodiak Island Borough Office of the Borough Mayor 710 Mill Bay Road Kodiak, Alaska 99615 Phone (907) 486-9310 Fax (907) 486-9391 DATE: August 21, 2025 FROM: Scott Arndt, Mayor �Gd/�✓ TO: Kodiak Island Borough Mayor and Manager SUBJECT: Veto of Contract No. FY2026-06, Kodiak Island Borough Facilities Contract With MK Enterprise, LLC. Per KIBC 2.20.060 Veto. A. Except as provided in subsection C of this section, the mayor may veto an ordinance, resolution, motion, or other action of the assembly and may strike or reduce appropriation items except for school budget items. B. A veto must be exercised before the next regular meeting of the assembly and must be accompanied by a written explanation of the reasons for the veto. A veto may be overridden by a vote of two-thirds of the authorized membership of the assembly within 21 days following exercise of the veto, or at the next regular meeting, whichever is later. C. The veto does not extend to: 1. Appropriation items in a school budget resolution/ordinance; 2. Actions of the assembly sitting as the board of adjustment; or 3. Adoption or repeal of a manager plan of government. During the Assembly meeting of August 7, 2025, the Assembly approved Contract No. FY2026- 06, Kodiak Island Borough Facilities Contract With MK Enterprise, LLC. I hereby exercise this veto before the next Assembly regular meeting of August 21, 2025. The following are my reasons for the veto: 1. The entire process is flawed, as the staff continually alters their methods of bid analysis. 2. The staff decided to reject one of the bids based on what they refer to as differential pricing. 3. 1 perceive this as discounting, which is permissible. 4. According to AS 44.62, any policy change must involve public input; however, the staff did not adhere to this requirement. There was no guidance provided to the bidders during the mandatory pre -bid meeting indicating that borough policy was shifting from previous practices. 5. Policies should be clear and transparent for all contractors, and I believe that all bids should be rejected, necessitating a rebid of the facilities contract with clear instructions for everyone. Page 1 of 1 Rev. 08/13/2025 Page 22 of 142 Mayoral Veto On Contract No. FY2026-06, Kodiak Island Borough Facilities... AGENDA ITEM #3.C. KODIAK ISLAND BOROUGH STAFF REPORT SEPTEMBER 11, 2025 ASSEMBLY SPECIAL MEETING D�1 SUBJECT: EXECUTIVE SESSION - Discussion Of Pending Appeal Of The Alutiiq Heritage Foundation Property Tax To The Superior Court ORIGINATOR: Aimee Williams, Borough Manager RECOMMENDATION: Move to convene into executive session under the authority of KIBC. 2.30.030 (F)(1)(a) to discuss pending litigation to which the Borough is a party and to provide direction to the Borough Manager regarding that litigation. Move to invite the Mayor, Assembly, Borough Attorney, Manager, Assessor, and Clerk into executive session. DISCUSSION: This executive session has been scheduled to permit the Assembly to receive information concerning the pending appeal of the Alutiiq Heritage Foundation property tax to the Superior Court. The Assembly may provide Manager Williams with direction concerning this potential/pending litigation. ALTERNATIVES: FISCAL IMPACT: OTHER INFORMATION: KIB Code Title 2 Administration and Personnel Chapter 2.30 Rules of the Assembly "F. Executive Sessions. The assembly may meet in executive session, at the call of the mayor, deputy presiding officer, or any four members of the assembly, only during a regular or special meeting, to privately discuss matters of confidential concern to the well-being of the borough government. 1. Upon adoption of a motion stating the purpose for an executive session the assembly in closed session may discuss: a. Potential or pending litigation to which the borough may become or is a party;..." Kodiak Island Borough Page 23 of 142 EXECUTIVE SESSION - Discussion Of Pending Appeal Of The Alutiiq Heritage... AGENDA ITEM #5.A. WELCOME TO THE 2025 BOARD OF EQUALIZATION This document is meant to assist you in understanding the hearing process before the board of equalization. It is important to distinguish this process from hearings before governing bodies such as the assembly. This is a quasi-judicial board and any appeal to superior court will be based on the transcript, testimony and evidence presented at this hearing. It is important that you present your case in full, but as in any court case, the testimony is under oath and all information whether written or oral must be factual and truthful. The board is appointed by the borough assembly to hear all properly filed appeals based on their expertise in the field of real estate. Their job is limited to a determination as to whether you the appellant have proven that your assessment is either incorrect, improper or if your assessed value is either too high or low. The board has the authority to adjust the value either up or down, or let it stand based on the evidence presented to them at the hearing. Please respect the board and their decision, as it is a difficult one. One important point is that the board has nothing to do with taxes. The fact that your taxes may increase as a result of an increase in your assessed value is not pertinent to this process. Control over your taxes is by the governing bodies in the form of the setting of the mill levy. THE HEARING PROCESS: All persons testifying, including staff, shall do so under oath as administered by the borough clerk or her designee. Although formal rules of evidence do not apply, any evidence presented should be reliable, factually based and most of all relevant. The chair of the board has control over the pace of the hearing and may limit time if necessary, provided all parties have a reasonable and proportional amount of time to present all relevant and non -repetitive evidence at the hearing. THE HEARING SEQUENCE: 1.) All appeals are introduced by the assessor in order of their Appeal and or Docket number. 2.) The appellant gives their testimony first, including the presentation of any evidence and the testimony of others. The appellant has the right to be represented by counsel or any other designee if they are unable to attend or testify. If no one appears before the board on behalf of the appellant, the board can go ahead with the hearing and the assessor shall read into the record any material provided by the appellant in support of the appeal. 3.) The assessor and the board have the right to question the appellant regarding their testimony and any other relevant issues. 4.) The assessor now gives his testimony along with any supporting evidence. Page] of 2 Page 24 of 142 3.0 BOE Information from Manager Williams AGENDA ITEM #5.A. 5.) The appellant and the board have the right to question the assessor concerning his testimony and any other relevant issues. 6.) The board may now allow the appellant the right to give a rebuttal to the assessor's testimony so long as no new evidence or testimony is introduced. 7.) In the event the appellant introduces new evidence or testimony the chair may allow the assessor the opportunity to give a rebuttal limited to the new evidence or testimony. 8.) The board now has all of the evidence before it. The chair shall close the hearing, and no further evidence or arguments will be considered or heard. If a member of the board feels they have a conflict of interest, then this is the time to present the potential conflict to the chair for a ruling. 9.) The chair now asks for a motion. If no motion is forthcoming, the assessment is upheld, and the hearing moves forward to the next appeal after a reading of the final statement in section 13. 10.) If a motion is made, it must be clear and precise as to what is to be done, and only after being seconded can it be brought to the floor for discussion. Any discussion shall be limited to the board members only and shall pertain to the evidence and testimony presented, except that technical questions of law and procedure may be addressed to staff or legal counsel. 11.) After the discussion is completed the chair calls for the question and a roll call vote is taken on any amendments first and then on the main motion. An affirmative vote of not less than three of the board members is required to approve any change to the assessment. If there are less than three affirmative votes, then the assessment is upheld. 12.) If an adjustment is made, the result will be announced by the chair. It is required that the chair also state in clear and concise terms the basis for the adjustment, including the facts and reasoning relied on in order to facilitate sufficient basis for findings of fact and conclusions of law. 13.) The chair will always end the appeal hearing by stating the following: "You are hereby advised that this is our final decision and according to appellate rule 602, you the appellant or the assessor have the right of appeal to the Superior Court of the state of Alaska from this decision. Should you wish to exercise your right of appeal, you must do so by notifying the borough attorney and filing with the court within 30 days from today. Failure to do so will forever bar you from any appeal of this case. " This ends the appeal process and if there are no more hearings, then the chair can adjourn the meeting. In conjunction with the borough clerk the chair will have prepared findings of fact and conclusions of law, which must be certified by the chairman and submitted to the assessor within 7 days of adjournment. Page 2 of 2 Page 25 of 142 3.0 BOE Information from Manager Williams AGENDA ITEM #5.A. Alaska State Statutes Pertaining to the Board of Equalization Sec. 29.45.110. Full and true value (a) The assessor shall assess property at its full and true value as of January 1 of the assessment year, except as provided in this section, AS 29.45.060, and 29.45.230. The full and true value is the estimated price that the property would bring in an open market and under the then prevailing market conditions in a sale between a willing seller and a willing buyer both conversant with the property and with prevailing general price levels. The assessor shall determine the full and true value as provided in standards adopted by the department under (e) of this section or another set of standards provided by ordinance. (b) Assessment of business inventories may be based on the average monthly method of assessment rather than the value existing on January 1. The method used to assess business inventories shall be prescribed by the governing body. (c) In the case of cessation of business during the tax year, the municipality may provide for reassessment of business inventories using the average monthly method of assessment for the tax year rather than the value existing on January 1 of the tax year, and for reduction and refund of taxes. In enacting an ordinance authorized by this section, the municipality may prescribe procedures, restrictions, and conditions of assessing or reassessing business inventories and of remitting or refunding taxes. (d) The provisions of this subsection apply to determine the full and true value of property that qualifies for a low-income housing credit under 26 U.S.C. 42: (1) when the assessor acts to determine the full and true value of property that qualifies for a low-income housing credit under 26 U.S.C. 42, instead of assessing the property under (a) of this section, the assessor shall base assessment of the value of the property on the actual income derived from the property and may not adjust it based on the amount of any federal income tax credit given for the property; for property the full and true value of which is to be determined under this paragraph, to secure an assessment under this subsection, an owner of property that qualifies for the low-income housing credit shall apply to the assessor before May 15 of each year in which the assessment is desired; the property owner shall submit the application on forms prescribed by the assessor and shall include information that may reasonably be required to determine the entitlement of the applicant; (2) the governing body of the municipality shall determine by ordinance whether the full and true value of all property within the municipality that first qualifies for a low- income housing credit under 26 U.S.C. 42 on and after the effective date of this subsection shall be exempt from the requirement of assessment under (1) of this subsection; thereafter, for property that first qualifies for a low-income housing credit under 26 U.S.C. 42 on and after the effective date of this subsection and that, by ordinance, is exempt from the requirement of mandatory assessment under (1) of this subsection, the governing body (A) may determine, by parcel, whether the property shall be assessed under (a) of this section or on the basis of actual income derived from the property without 1 of 9 Page 26 of 142 3.0 BOE Information from Manager Williams AGENDA ITEM #5.A. adjustment based on the amount of any federal income tax credit given for the property, as authorized by (1) of this subsection; and (B) may not, under (A) of this paragraph, change the manner of assessment of the parcel of property if debt relating to the property incurred in conjunction with the property's qualifying for the low-income housing tax credit remains outstanding. (§ 12 ch 74 SLA 1985; am § 1 ch 79 SLA 2000) Sec. 29.45.110. ALASKA STATUTES Sec. 29.45.130. Page 163 (e) The department shall adopt standards for assessing the full and true value of property under (a) of this section that are not inconsistent with standards adopted by the International Association of Assessing Officers and update the standards when necessary. AS 29.45.170. Assessment Notice (a)The assessor shall give each person named in the assessment roll a notice of assessment showing the assessed value of the person's property that is subject to an ad valorem tax. On each notice is printed a brief summary of the dates when taxes are payable, delinquent, and subject to penalty and interest, and the dates when the board of equalization will sit. (b) Sufficient assessment notice is given if mailed by first class mail 30 days before the equalization hearings. If the address is not known to the assessor, the notice may be addressed to the person at the post office nearest the property. Notice is effective on the date of mailing. (§ 12 ch 74 SLA 1985; am § 7 ch 40 SLA 1995) AS 29.45.180. Corrections (a) A person receiving an assessment notice shall advise the assessor of errors or omissions in the assessment of the person's property. If requested by the person, the assessor or a person designated by the assessor shall meet with the person and answer reasonable questions relating to the methods used to assess the person's property. The meeting required under this subsection may be virtual or telephonic. The assessor may correct errors or omissions in the roll before the board of equalization hearing. (b) If errors found in the preparation of the assessment roll are adjusted, the assessor shall mail a corrected notice allowing 30 days for appeal to the board of equalization. (§ 12 ch 74 SLA 1985)AS 29.45.190. Appeal AS 29.45.190. Appeal (a) A person whose name appears on the assessment roll or the agent or assigns of that person may appeal to the board of equalization for relief from an alleged error in valuation not adjusted by the assessor to the taxpayer's satisfaction. (b) The appellant shall, within 30 days after the date of mailing of notice of assessment, submit to the assessor a written appeal specifying grounds in the form that the board of equalization may require. Otherwise, the right of appeal ceases unless the board of equalization finds that the taxpayer was unable to comply. 2 of 9 Page 27 of 142 3.0 BOE Information from Manager Williams AGENDA ITEM #5.A. (c) The assessor shall notify an appellant by mail of the time and place of hearing. (d) The assessor shall prepare for use by the board of equalization a summary of assessment data relating to each assessment that is appealed. (e) A city in a borough may appeal an assessment to the borough board of equalization in the same manner as a taxpayer. Within five days after receipt of the appeal, the assessor shall notify the person whose property assessment is being appealed by the city. (§ 12 ch 74 SLA 1985) AS 29.45.200. Board of Equalization (a) The governing body shall appoint one or more boards of equalization for the purpose of hearing an appeal from a determination of the assessor. An appointed board shall be composed of not less than three persons, who shall be members of the governing body, municipal residents, or a combination of members of the governing body and residents. The governing body shall by ordinance establish the qualifications for membership. The governing body may by ordinance appoint itself to sit as a board of equalization. (b) The board of equalization is governed in its proceedings by rules adopted by ordinance that are consistent with general rules of administrative procedure. The board may alter an assessment of a lot only pursuant to an appeal filed as to the particular lot. (c) Notwithstanding other provisions in this section, a determination of the assessor as to whether property is taxable under law may be appealed directly to the superior court. (§ 12 ch 74 SLA 1985) AS 29.45.210. Hearing (a) If an appellant fails to appear, the board of equalization may proceed with the hearing in the absence of the appellant. Sec. 29.45.210. ALASKA STATUTES Sec. 29.45.240. Page 166 (b) The appellant bears the burden of proof. The only grounds for adjustment of assessment are proof of unequal, excessive, improper, or under valuation based on facts that are stated in a valid written appeal or proven at the appeal hearing. The board of equalization may not raise the assessment in the current year unless requested to do so by the appellant. (c) If the appellant provides a long form fee appraisal to support the appellant's valuation and the board of equalization does not find in favor of the appellant, the board shall make specific findings on the record to support its decision. (d) An appellant or the assessor may appeal a determination of the board of equalization to the superior court as provided by rules of court applicable to appealsfrom the decisions of administrative agencies. Appeals are heard on the record established at the hearing before the board of equalization. (§ 12 ch 74 SLA 1985) 3 of 9 Page 28 of 142 3.0 BOE Information from Manager Williams AGENDA ITEM #5.A. dG . Kodiak Island Borough Code Pertaining to the Board of Equalization 3.35.050 Board of Equalization. A. Membership — Qualification — Duties — Terms. 1. Members. The board of equalization for hearing valuation appeals shall be composed of five persons, not assembly members, appointed by the assembly. At least two alternate members shall be appointed. 2. Qualifications. Members and alternate members should be appointed on the basis of their expertise in real and personal property appraisal, the real estate market, the personal property market, and other fields related to their functions as board members. Each member shall be a qualified voter of the borough and shall remain a resident of the borough while in office. Borough employees may not be appointed to serve on the board of equalization. 3. Duties. The board may determine equalizations on properties brought before the board by appellants. It shall only hear appeals for relief from an alleged error in valuation on properties before the board by an appellant. 4. Terms of Office. Upon confirmation, members and alternate members shall serve for three years or until their successors are appointed and confirmed. Of the members initially appointed, two shall serve three-year terms, two shall serve two-year terms, and one shall serve a one-year term. 5. Hearing Dates. The board shall commence hearings on the first Monday in May, unless otherwise changed by resolution. Hearings will continue from day to day as established by the board and the borough clerk until all properly filed appeals have been heard. B. Chairperson. The board annually shall elect a member to serve as its chairperson. The chairperson may call meetings of the board, shall exercise such control over meetings as to ensure the fair and orderly resolution of appeals, shall make rulings on the admissibility of evidence, and shall conduct the proceedings of the board in conformity with this chapter. A vice -chairperson shall also be selected to serve in the chairperson's absence. If both are absent, the members present shall select a person to preside. C. Appeals to the Board. 1. A person whose name appears on the assessment roll, or the authorized representative of that person, may appeal to the board for relief for an alleged 4of9 Page 29 of 142 3.0 BOE Information from Manager Williams AGENDA ITEM #5.A. error in valuation not adjusted by the assessor to the taxpayer's satisfaction. The authorized representative shall be named by the property owner in writing to the assessor and board of equalization at the time of filing or no later than three days in advance of hearing. The time requirement for providing a representative in writing may be waived at the determination of the board during the hearing if good cause is shown that may include, but not be limited to, the following: stranded from Kodiak due to inclement weather, serious medical condition, serious family emergency, or death in the family. 2. The appellant shall, within 30 calendar days after the date of mailing of notice of assessment, submit to the assessor a written appeal specifying grounds for such appeal. The board shall prescribe the form in which written notices of appeal shall be made. Otherwise, the right of appeal ceases unless the board of equalization finds that the taxpayer was unable to comply within the 30-day appeal period and grants a hearing to the appellant. 3. The assessor shall notify the appellant by mail, and email if provided, of the time and place for the hearing and assign a docket number of appeal. 4. If parties to whom notice was mailed as provided herein fail to appear, the board may proceed with the hearing in their absence. All parties, their authorized representatives, and witnesses must appear in person at the hearing. 5. The assessor shall prepare for use by the board of equalization a summary of assessment data relating to each assessment that is appealed. This summary shall be provided to the board and the appellant at least 10 calendar days before the hearing. Summary of assessment data for late -filed appeals granted by the board will be provided as soon as practicable. 6. A city in the borough may appeal an assessment to the borough board of equalization in the same manner as a taxpayer. Within five days after receipt of the appeal, the assessor shall notify the person whose property assessment is being appealed by the city. 7. A property owner who seeks to appeal the assessor's valuation, after the 30- day filing period has closed, shall file a letter with the assessor stating the reasons why the property owner was unable to comply with the 30-day appeal period. The deadline to file a late -file request is on April 15th of the current assessment year. Should April 15th fall on a Saturday or Sunday, late filers shall have until 4:30 p.m. on the first Monday following to file their request. On the next business day following the deadline to file a late -file request or as soon as is practicable, the board shall consider each letter and shall only consider reasons the appellant was unable to comply with the 30-day appeal period. It shall not consider evidence regarding property valuation. The appellant may not make an oral presentation at the hearing. The determination shall be based on the letter 5 of 9 Page 30 of 142 3.0 BOE Information from Manager Williams AGENDA ITEM #5.A. and supporting documents. The board shall interpret the term "unable to comply" as meaning that a property owner must demonstrate compelling reasons or circumstances which would prevent a reasonable person under the circumstances from filing an appeal in a timely manner during the 30-day appeal period. If the late -file request is granted, the property owner shall have five calendar days from the decision of the board to file an appeal and submit to the assessor's office all documentary evidence in their possession which they wish to be considered and which is relevant to the resolution of the appeal. If the late -file request is denied, the assessor shall notify the property owner of the board's decision in writing. D. Quorum and Voting. 1. Quorum. A quorum shall consist of four members. 2. Voting. The granting of any appeal or part thereof shall require the concurring vote of at least three board members. Any appeal or part thereof which is not granted by the board shall be considered denied. E. Hearings — Procedures. 1. Record. The clerk is the ex officio clerk of the board and shall prepare the board's minutes. The clerk shall keep electronic recordings of the board's hearings per the borough retention schedule. The board of equalization summary certification will constitute the board's minutes. 2. Counsel. All parties may be represented by counsel during hearings before the board. On procedural matters, the borough attorney may offer legal counsel to the board in the course of its proceedings. Upon the recommendation of the borough attorney, the board may retain legal counsel from another attorney for a particular matter. 3. Appeal Number. Every appeal shall be assigned an appeal number which, along with the name of the appellant, shall be read into the record before hearings on the appeal may commence. 4. Burden of Proof. The burden of proof rests with the appellant, who must convince the board by a preponderance of evidence that the valuation appealed from is unequal, excessive, improper, or undervalued based on the facts stated in a written appeal or roven at the appeal hearing in accordance with subsections E 5 and E 7 of this section. If the valuation is found to be too low, the board may raise the assessment. The borough shall make available to the appellant all reasonably pertinent documents requested for presentation of the appeal, including but not limited to documents presented or requested by the 6of9 Page 31 of 142 3.0 BOE Information from Manager Williams AGENDA ITEM #5.A. board of equalization for presentation of the appeal in accordance with subsection C 5 of this section. 5. Rules of Evidence. Evidence shall only be presented by the appellant and the assessor or their authorized representative. The board shall not be restricted by the formal rules of evidence; however, the board may exclude evidence irrelevant to the issues appealed. Hearsay evidence may be considered, provided there are adequate guarantees of its trustworthiness and that it is more probative on the point for which it is offered than any other evidence which the proponent can procure by reasonable efforts. The appellant must submit to the assessor's office by April 15th all documentary evidence in their possession which they wish to be considered and which is relevant to the resolution of the appeal. Should April 15th fall on a Saturday or Sunday, appellants shall have until 4:30 p.m. on the first Monday following to submit their evidence. This evidence includes but is not limited to purchase and closing documents, appraisal reports, brokers' opinion of value, engineers' reports, estimates to repair, rent rolls, leases, and income and expense information. The board of equalization may in its discretion decline to accept documents offered at the hearing which should have been provided by April 15th. In exercising this discretion, the board shall consider the relevance and probative value of the documents which are under consideration, accepting those documents which in all fairness are necessary to a fair resolution of the appeal. Prior to the board meeting, the appellant and assessor may agree to an extension of time for the production of evidence. 6. Order of Presentation. The order of presentation is as follows: a. The appellant shall present evidence and argument not to exceed five minutes. b. Following the appellant, the assessor shall present the borough's evidence and argument not to exceed five minutes. c. The appellant may make a rebuttal presentation directed solely to the issues raised by the assessor not to exceed two minutes. d. The assessor may address the rebuttal by the appellant not to exceed two minutes. Each party shall be allowed a total of five minutes to present evidence and make oral argument. The time limits allotted include presentations from either the appellant's or assessor's authorized representatives, counsels, or witnesses. Additional time may be permitted by the board depending on the complexity of the case. The members of the board may ask questions, through the chairperson, of either the appellant or the assessor, authorized representatives, counsels, or witnesses at any time during the hearing. After both the appellant and the assessor 7of9 Page 32 of 142 3.0 BOE Information from Manager Williams AGENDA ITEM #5.A. have made their presentations, each may question the other through the chairperson. The chairperson may end the questioning and call for a motion from the other members. 7. Witnesses, Exhibits and Other Evidence. The appellant and the assessor may offer the oral testimony of witnesses and documentary evidence during the hearing. At the request of the appellant, evidence submitted pursuant to subsection E 5 of this section relating to the assessed valuation of property used in an income -producing commercial enterprise shall be confidential. The assessor and the appellant may stipulate to facts to be presented to the board, provided the assessor has received credible and reliable evidence to establish the facts. The only exhibits that shall be admitted into the record at the hearing are those exhibits provided pursuant to subsection E 5 of this section. However, at the hearing, parties may use demonstrative or illustrative exhibits; provided, that all such exhibits are duplicates of exhibits or information provided to the board pursuant to subsection E 5 of this section. Additionally, witnesses may write on a board while orally testifying to illustrate their testimony. The limitation on the use of exhibits in this section shall not preclude the parties from presenting oral testimony at the hearing. 8. Decisions. a. The assessor may recommend changes to the existing value during the hearing. b. After the appellant and assessor have presented their cases, the hearing shall be closed by the chairperson, and no further evidence shall be offered or considered in deliberations unless a member of the board of equalization asks for additional information from either party. Both parties shall be given an equal opportunity to respond to any such requests for additional information. c. The board may decide the appeal after the presentations, or it may defer a decision no later than 30 days after the hearing date. Final board action shall be taken by motions that set out specific findings of fact at the meeting and shall not be reconsidered, amended, or rescinded by the board. Only one motion may be on the floor at a time, and the board shall vote on the motions until its findings are established. The vote must be taken and entered in the permanent record of the proceedings. The motions available for the board are: i. Motion to uphold the assessor's valuation. ii. Motion to reduce the assessment. iii. Motion to increase the assessment. 8 of 9 Page 33 of 142 3.0 BOE Information from Manager Williams AGENDA ITEM #5.A. iv. Motion to dismiss the appeal. v. Motion to defer the decision. vi. Or any other motion set out in Alaska Statutes and regulations governing board of equalization appeals. d. No later than 30 days following the hearing, the board shall render a written decision which includes findings of fact based on evidence presented at the hearing clearly stating the grounds upon which the panel relied to reach its decision and advising all parties of their right to appeal the decision to superior court. 9. Certification. The board shall certify its actions to the assessor within seven days following its adjournment. F. Further Appeals. Any appeal of a decision of the board of equalization on a valuation appeal shall be made to the Superior Court, Third Judicial District, state of Alaska. No appeal of a board's decision to the superior court may be taken unless the action is filed, and the borough attorney is served with notice of such appeal within 30 days of the date of the mailing of the board's written decision. [Ord. FY2024-12 §2, 2024; Ord. FY2024-09 §3, 2023; Ord. FY2023-14 §2, 2023; Ord. FY2015-10 §5, 2015; Ord. FY2015-08 §2, 2014; Ord. FY2014-10 §6, 2014; Ord. FY2012-04 §4, 2011; Ord. FY2011-12 §2, 2011; Ord. 98-03 §2, 1998; Ord. 78-21-0 §1, 1978. Formerly §3.20.050]. 9of9 Page 34 of 142 3.0 BOE Information from Manager Williams AGENDA ITEM #5.A. Kodiak Island Borough Board of Equalization Thursday, July 17, 2025, 6:30 p.m. Assembly Chambers Subscribe here to be notified when aaenda packets are published. Established by Ordinance 78-21-0 The Board of Equalization is comprised of five persons appointed by the assembly on the basis of their expertise in real and personal property appraisal, the real estate market, the personal property market, and other fields related to their functions as board members. The board is charged with ensuring that real and personal property is assessed in a uniform manner and will only hear appeals for relief from an appellant asserting an error in valuation has occurred. 1. CALL TO ORDER BY THE CHAIR 2. ROLL CALL 3. APPROVAL OF AGENDA 4. APPROVAL OF MINUTES a. November 21, 2024, Board Of Equalization Meeting 20241121 Minutes DRAFT 5. ITEMS OF BUSINESS a. Appeal No. 2024-01, Exemption Appeal From The Alutiiq Heritage Foundation 6. GENERAL COMMENTS AND QUESTIONS 7. ADJOURNMENT Visit our website at www.facebook.com/Kodiakislandborough @KodiakBorough www.kodiakak.us 93 Page 35 of 142 3.0 BOE Information from Manager Williams AGENDA ITEM #5.A. Kodiak Island Borough Board of Equalization Meeting Thursday, November 21, 2024, 6:30 p.m. Borough Assembly Chambers A meeting of the Kodiak Island Borough Assembly Sitting As The Board of Equalization was held on November 21, 2024, in the Assembly Chambers of the Kodiak Island Borough Building, 710 Mill Bay Road. The meeting was called to order at 6:30 p.m. Present were Chairperson Scott Arndt, Board Members Steve Ames, Jared Griffin, Larry LeDoux, Ryan Sharratt, and Scott Smiley. Staff members present were Borough Assessor Seema Garoutte, Borough Clerk Nova M. Javier, Deputy Clerk Lina Cruz, and Assistant Clerk Irene Arellano. ITEMS OF BUSINESS /_Ae\»�e\>!►[>���YZWIN 4.14=1'JIi11[67►I_1»=rt\>ly:ls]jib 11:l=Ft\1tuldI �7:1�:7��_[e3�7i111►U7e��[�7.■ GRIFFIN moved to grant the request from the Assessor, and based on the non -objection by the appellant, to remand the matter to the Assessor for reconsideration under KIBC 3.35.030(G), with the appellant to provide the formal request and accompanying materials within 10 days. After a decision is made on remand the normal appeal options under KIBC 3.35.030(H) will apply. ROLL CALL VOTE ON THE MOTION CARRIED FOUR TO ONE: Ames, Griffin, LeDoux, and Smiley (AYES); Sharratt (NO). ADJOURNMENT Griffin moved to adjourn the meeting. VOICE VOTE ON MOTION CARRIED UNANIMOUSLY. The meeting adjourned at 7:14 p.m. ATTEST: Scott Arndt, Chairperson Nova M. Javier, Borough Clerk Approved: Kodiak Island Borough November 21, 2024 Board of Equalization Minutes Page 1 3.0 BOE Information from Manager Williams Page 36 of 142 AGENDA ITEM #5.A. KODIAK ISLAND BOROUGH �` ASSESSING DEPARTMENT 710 Mill Bay Road, Rm 227 • Kodiak, AK 99615 Phone: (907) 486-9350 • Fax: (907) 486-9395 A b sgaroutte@kodiakak.us APPEAL NO. 2025- El APPEAL TO: THE KODIAK ISLAND BOROUGH BOARD OF EQUALIZATION-EXEMTPTION APPEALS This form must be completed and filed/faxed or emailled with the Borough Assessors Office by 11:59 R,M. Friday. Feb. 28.2025 KIBC 3.35.030(H) permits the owner of a parcel denied an exemption application to appeal that denial to either the superior court or to the KIB Board of Equalization (BOE). For appeals to the BOE KIBC 3.35.055(B)(2) states The appellant shall, within 30 calendar days after the date of mailing of assessor's determination, submit to the assessor a written appeal specifying grounds for such appeal. The board shall prescribe the form in which written notices of appeal shall be made. This form is for use for appeals to the BOE from the denial of an exemption application. The undersigned petitions the Board of Equalization- Exemption Appeals to reverse the Assessor's determination of exemption on the property described below. PLEASE COMPLETE ALL ITEMS (PLEASE PRINT) 15698 Property Description: 1. Prop. Id # Kodiak Townsite BK 3, Lot 11 A 2. (a) Owner: 2. (b) Name of Authorized April G.L. Counceller, Ph.D Alutiiq Heritage Foundation Agent: Jahna M. Lindemuth (Also fill out Item No. 5) Mailing Address for All Correspondence Relating to The Appeal: 215 Mission Road, suite 101 City Kodiak State AK ZIP 99615 Daytime 844-425-8844 Mobile 907-539-6904 E-Mail april@alutiigmuseu Phone Phone# Address m.org KIBC 3.35.055(B5) states that the Assessor shall prepare for use by the board of equalization a summary of assessment and exemption data relating to each property exemption that is appealed. This summary shall be provided to the board and made available to the appellant at least ten calendar days before the hearing. I request the Assessor's summary be provided to me by: Postal Mail ❑ Email ■ Page 37 of 142 3.0 BOE Information from Manager Williams AGENDA ITEM #5.A. CAG&L CASIIION GIIMORI & 1 INDGMUrti February 27, 2025 Seema Garoutte, Assessor Kodiak Island Borough 710 Mill Bay Rd. Kodiak, AK 99615 sp-aroutte(@kodiakak.us Board of Equalization Kodiak Island Borough 710 Mill Bay Road Kodiak, AK 99615 clerks@kodiakak.us RE: Alutiiq Heritage Foundation Appeal of January 28, 2025 Exemption Reconsideration Dear Board of Equalization and Assessor Garoutte: As you know, I represent the Alutiiq Heritage Foundation ("AHF"). AHF appeals the January 28, 2025 Decision on Reconsideration ("Decision") to the Board of Equalization, as stated in the attached form. AHF is a non-profit charitable museum, and its entire building should be exempt under AS 29.45.030 and KIBC 3,35.030. 1. Findings Related to Construction The Decision now correctly states the legal standard that applies to construction performed by non-profit, charitable organizations: "Where, however, the charitable use of the space is established prior to construction, there is no intervening use, and the intended future use of the space is the same charitable purpose, then the dedication to that charitable use would not be lost due to the intervening lack of any use during construction." Although Natives of Kodiak's lease had ended and they had vacated the building in March 2023, and AHF occupied the entire building as of that date, the Decision errs by finding 925 SF of the basement and the 1184 SF it found was used as a construction office on the second floor did not qualify for the tax exemption. Because AHF had taken occupancy of the entire building in March 2023, and it undertook construction beginning in November 2023 for only its intended use of the entire building, both areas qualify for the tax 510 t. Street, Suite 601 - Anchorage, Alaska 99501 (907) 222-7932 - www.cashiongilmore.com Page 38 of 142 3.0 BOE Information from Manager Williams AGENDA ITEM #5.A. Seema Garoutte & Board of Equalization February 27. 2025 Page 2 of 2 exemption despite the fact that construction was underway and affected both spaces as of January 1, 2024. (The Decision also errs by finding that construction began in May 2023, although it is unclear whether this negatively impacted the final decision of the Assessor.) And even if the space on the second floor used by Cornerstone for a construction office somehow did not qualify for the tax exemption. the Decision erred in the amount of space it found did not qualify as tax exempt. The evidence submitted to the Assessor established that the museum used portions of that office space for storage as of January 1, 2024, and that far less space was used by Cornerstone than found in the Decision. As the floor plans submitted by AHF on January 27, 2025 show, Cornerstone used no more than 347.5 SF. 2. Museum Lobby/Gift Store "The Decision erred by finding 365 SF used by Al IF as a gift store was not tax exempt. The Assessor in her October 10. 2024 decision (p.3) originally found: "The applicant has shown that the museum revenues are reasonably necessary for the accomplishment of museum put -poses and not in excess of the museum operating costs." This finding was correct and the Assessor cannot legally change this finding to the detriment of AHF. Dr. Counceller's November 29, 2024 statement also confirms that the museum store operations are part of the museum's charitable non-profit mission and should be treated as tax exempt. The Decision also erred by excluding the entire 365 SF from the tax exemption, even if the gift store was not entitled to the exemption. As the evidence shows, AIiF uses this space as a reception area/lobby for the museum itself, as it is where museum attendees buy tickets, so even if the gift store operations are not exempt, the part of the space used as a lobby and reception area should be treated as exempt. Given these incorrect factual findings, AHF reserves the right to call witnesses (including Ms. COLrnceller) and present evidence at the BOE meeting where this appeal will be heard. Please let us know when we can schedule the hearing. Sincerely, /s/Jahna A4. Lindemuth Jahna M. Lindemuth, Partner iahna Rwashiongilmore.corn (907) 222-7932 (main) (907) 339-4966 (direct) (907) 222-7938 (fax) Page 39 of 142 3.0 BOE Information from Manager Williams AGENDA ITEM #5.A. Kodiak Island Borough Office of the Borough Clerk 710 Mill Bay Road Kodiak, Alaska 99615 Phone (907) 486-9310 Fax (907) 486 9391 Email: Clcrks@kodiakak.us March 20, 2025 Alutiiq Heritage Foundation Attn: April G.L. Counselled, Ph.D. Jhana M. Lindemuth 215 Mission Road, Suite 101 Kodiak, AK 99615 RE: Appeal No. 2025-E1, Alutiiq Heritage Foundation (AHF) Appeal to the Board of Equalization (BOE) on the Exemption Reconsideration Dear Ms. Counceller and Ms. Lindemuth, The Borough Clerk's Office acknowledges receipt of your appeal to the Board of Equalization dated February 27, 2025. In accordance with KIBC 3.35.030(H), your appeal to the BOE is considered timely for Tax Year 2024 and will be submitted to the BOE for a hearing as outlined in KIBC 3.35.055. Following a consultation with the Borough Mayor, a hearing has been arranged for 6:30 p.m. on Thursday, July 17, 2025, in the Borough Assembly Chambers. Per KIBC 3.35.055 (13)(5), the assessor shall prepare for use by the board of equalization a summary of assessment and exemption data relating to each property exemption that is appealed. This summary shall be provided to the board and the appellant at least 10 calendar days before the hearing. According to the appeal form you submitted, you indicated that your petition is complete and that you have included all the documentary evidence you intended to provide. The information you have submitted will be incorporated into the materials that the Assessor will present to both the Board of Equalization and you by Monday, July 7, 2025. Sincerely, �� Nova Javier, MANIC Borough Clerk q4 Cc: Aimee Williams, KIB Manager Seema Garoutte, Borough Assessor Page 40 of 142 3.0 BOE Information from Manager Williams AGENDA ITEM #5.A. APPEAL2025-E1 KODIAK ISLAND BOROUGH Assessing Department 710 Mill Bay Road • Kodiak, AK 99615 (907) 486-9353 • (907) 486-9353 Fax sgaroutte@kodiakak.us 2024 BOE EXEMPTIONS REPORT APPEAL NO. 2025-E1 SUMMARY: PROPERTY OWNER: Alutiiq Heritage Foundation (AHF) LEGAL DESCRIPTION: Kodiak Townsite, Block 3, Lot 11A COMMON ADDRESS: 215 Mission Road LOCATION: Kodiak, Alaska LAND AREA: 31,470 SF ZONING: B-Business SHAPE: This parcel is square in shape ACCESS: Mission Road or Erskine Road TOPOGRAPHY: Level lot YEAR BUILT: 1998 2024 ASSESSED VALUE: LAND $ 296,800.00 IMPROVEMENTS $1,968,200.00 TOTAL $2,265,000.00 07/17/2025 2024 BOE Exemption Appeal No. 2025-E1 I Page 41 of 142 3.0 BOE Information from Manager Williams AGENDA ITEM #5.A. APPEAL 2025-El 2024 BOE EXEMPTIONS ASSESSOR'S REPORT APPEAL NO. 2025-E1 VALUATION OF REAL PROPERTY Land Improvements TOTAL 2024 Exemption Granted: 92% 82% $1,918,471.00 Appellant's Exemption Estimate: 100% 100% $2,265,000.00 Subject of Appeal: The subject of appeal is a two-story building with a basement that is under construction. The museum includes administrative offices, exhibit gallery, library, collection rooms, general storage, and a retail shop. The site is zoned Business (B) and is a 0.72-acre parcel of land, located in Kodiak. KIBC 17.90.010 B-Business District The B business zoning district is established for the purposes of protecting and encouraging the development of community business core areas that function efficiently as centers of retail business and retail service activities. For the business zoning district, in promoting the general purposes of this title, the specific intentions of this chapter are: A. To encourage the continued use and development of land for retail purposes; B. To discourage the use of business district lands for other than retail purposes; C. To prohibit the use of business district lands for manufacturing and industrial purposes; and D. To encourage the discontinuance of existing uses that are not permitted under the provisions of this chapter. [Ord. FY2016-06 §2, 2015; Ord. 82-40-0 §1, 1982. Formerly §17.21.010]. Appellant's Exhibits: The appellant provides a signed appeal to the Kodiak Island Borough (KIB) 2024 BOE for exemptions, asserting that the exemption should be 100% of the building even though the building is under construction. Within the appeal, the appellant states: "The Alutiiq Heritage Foundation (d.b.a. Alutiiq Museum) should be entitled to 100% exemption under AS 29.45.030 and KIBC 3.35.030. The January 28, 2025, Decision on Reconsideration erred in excluding portions of the AHF building from tax exemption. Please see cover letter from attorney Jahna Lindemuth, explaining points of appeal to be made to the Board of Equalization." 07/17/2025 2024 BOE Exemption Appeal No. 2025-E1 2 Page 42 of 142 3.0 BOE Information from Manager Williams AGENDA ITEM #5.A. The appellant provided an appeal letter, labeled 2025.02.27 Letter to Assessor Garoutte and BOE along with the appeal form for evidence. The appellant indicated on the appeal form that the petition was complete, and no further evidence would be submitted. Assessor's Statement: The exemption application was received by Assessing staff on February 27, 2025, for TY2024 and considered timely filed. The property was inspected in January 2024 as part of the review for the TY2023 exemption that was paid under protest. It should be noted that the 2023 Assessor's decision was not timely appealed by AHF. Changes or alterations were discovered and reported by staff for this property at the time of inspection. The 2024 exemption decision was based on a reconsideration meeting that was held on December 20, 2024, after AHF counsel verbally agreed to reconsideration at the October 2024 BOE exemption hearing and then followed up that decision in writing on December 2, 2024. When applying tax exemption statutes, the Alaska Supreme Court directs that exemptions are narrowly construed. A taxpayer claiming a tax exemption has the burden of showing that the property is eligible for the exemption. This is based on the underlying policy that all property is benefited by the security and protection furnished by the State, and it is only just and equitable that expenses incurred in the operation and maintenance of government should be fairly apportioned upon the property of all. Accordingly, in evaluating the assertion of an exemption for property used exclusively for, in this case, charitable purposes, the Assessor's Office applies the guidance from the Alaska Supreme Court and narrowly construes the charitable exemption. After carefully reviewing all evidence pertaining to this case, Assessing has concluded the following: • Alaska Statute AS 29.45.030 (3) property used exclusively for nonprofit religious, charitable, cemetery, hospital, or educational purposes; (c) Property described in (a)(3) or (4) of this section from which income is derived is exempt only if that income is solely from use of the property by nonprofit religious, charitable, hospital, or educational groups. If used by nonprofit educational groups, the property is exempt only if used exclusively for classroom space. Kodiak Island Borough Code (KIBC) 3.35.030 Real and Personal property exempted from taxation. All property used exclusively for nonprofit religious, charitable, cemetery, hospital, or educational purposes is exempt from taxation for the calendar year in which application is timely filed if the assessor determines that the application demonstrates the property qualifies for exemption as provided by AS 29.45.030. Property used exclusively for religious purposes means that property described in AS 29.45.030(b). Property described in this section from which income is derived is exempt only if that income is solely from the use of the property by nonprofit religious, charitable, hospital, or educational groups. 07/17/2025 2024 BOE Exemption Appeal No. 2025-E1 Page 43 of 142 3.0 BOE Information from Manager Williams AGENDA ITEM #5.A. If used by nonprofit educational groups, the property is exempt only if used exclusively for classroom space. Unimproved or vacant real property of any such organization which is not currently used for religious, hospital, educational, cemetery, or charitable purposes shall be deemed to be property held or used for profit unless by deed restriction or otherwise the real property has been effectually dedicated to future use for religious, educational, or charitable purposes only and cannot be sold or used for any other purposes. Any vacant land which initially qualifies for an exemption under this section, and for which an application is filed, but is not placed in use within two years of January 1st of the first tax year, shall be subject to taxation in each tax year, retroactive to the first tax year for which the exemption was granted. • For TY 2023 the Assessor's Office spatially apportioned the property between the non- exempt retail use space, the non-exempt Natives of Kodiak leased space, common areas used for both exempt and non-exempt purposes, and areas used exclusively for exempt purposes. The portion used exclusively for exempt purposes was 38% in TY2023. • The decision letter for the TY 2023 exemption application (Exhibit #2), in the findings of facts for TY2023 also states "The application does not have a written statement as to the nature and use of the property as it relates to the purpose of the organization. • The 2023 exemption decision was NOT timely appealed by AHF within the 30 daytime period provided for appeals. • Alutiiq Museum staff reported that the third -party lessor, Natives of Kodiak, terminated its lease on February 28, 2023. • In the appeal letter, AHF counsel states, "...the decision errs by finding 925 SF of the basement and the 1184 SF it found was used as a construction office on the second floor did not qualify for the exemption. Because AHF has taken occupancy of the entire building in March 2023, and it undertook construction beginning in November 2023..." • The KIB Community Development Department provided Assessing staff with a zoning compliance permit (Exhibit #13) paid for on April 25, 2023, relating to the renovation and expansion project. • City of Kodiak (COK) Building & Safety (B&S) department provided Assessing staff with a demolition permit dated May 9, 2023 (Exhibit #14). This permit stated it was for the excavation and foundation for the renovation and the addition. B&S Inspector Ted Hansen noted on the permit that "work for foundation is at owners risk, partial plans submitted." According to B&5, no one could occupy the building after this permit was pulled, as foundation work was already happening, but the plans were not approved. • The Alutiiq Museum closed its doors to the public on July 12, 2023. 07/17/2025 2024 BOE Exemption Appeal No. 2025-E1 Page 44 of 142 3.0 BOE Information from Manager Williams AGENDA ITEM #5.A. • AHF did not move museum uses into all the formerly leased space but began undertaking a renovation and expansion project after Natives of Kodiak vacated space in the building, per AHF representative April Counceller's own testimony. • According to B&S personnel, the first inspection for the AHF building did not occur until May 12, 2024, one year later. • Additional permits were provided to Assessing dated October 11, 2023, for demolition of architectural, electrical, mechanical and fire sprinkler systems in preparation of remodel and expansion. This permit was necessary due to the changes that were required by the COK B&S department. • The AHF TY2024 exemption application (Exhibit #1) contains a written statement as to the nature and use of the property as it relates to the purpose of the organization. • As of January 1, 2024, as indicated by B&S, the property was under renovation and should not have been occupied at the time of the application. • The starting point for the TY2024 exemption determination was the use as of January 1, 2024. • Prior to the renovation the building was not 100% exempt as indicated by the TY 2023 decision which was not appealed. • As of January 1, 2024, a portion of the structure was in use for museum staff, and a portion which had previously been used for non -museum purposes or for non-exempt retail purposes was under construction. • The October 10, 2024, exemption decision (Exhibit #3), appealed by AHF, granted an exemption for 47% of the property being used by museum staff, as areas used exclusively for exempt charitable purposes. The remainder was under construction, had not been placed in use for exempt purposes, and did not qualify for an exemption. • The appeal was scheduled to be heard on November 21, 2024. • At the appeal, counsel for AHF asked for additional evidence to be introduced. The BOE determined to postpone the hearing until the Assessor had a chance to review the documents. • The Assessor suggested that AHF request a reconsideration (by the Assessor) allowing AHF to provide additional documentation. The reconsideration allowed AHF to file an appeal to the Board of Equalization (BOE). AHF agreed to a reconsideration in writing on December 2, 2024. 07/17/2025 2024 BOE Exemption Appeal No. 2025-E1 Page 45 of 142 3.0 BOE Information from Manager Williams AGENDA ITEM #5.A. • The reconsideration was scheduled and heard on December 20, 2024. • On December 30, 2024, the Assessor asked AHF for additional documents, including any mission statements that could clarify the relationship between the gift store and museum as well as between the archaeological work and museum. Conversations with the COK B&S department to finalize the reconsideration letter provided information that the AHF allowed Cornerstone General Contractors to use a portion of the building. The B&S director, Ted Hansen, provided staff with a layout of the portion of the building that had not been sealed off and was utilized by Cornerstone for their temporary offices, and included an area well over 1200 SF (Exhibit #4). The area also included access to the ducts that were included in Cornerstones renovation. The rest of the level was sealed off by AHF. The Assessor's Office emailed AHF (Exhibit #5), a request for clarification on January 27, 2025, three days before the determination was due. AHF responded with a drawing and page 2 of 18 (Exhibit #6) of Cornerstone General Contractors' bid, which states "Construction Facilities -We assume space will be available for temporary facilities" but does not state how much space was required. The Assessor determined that 1184 SF was under Cornerstone General Contractors use and at their discretion, not for AHF charitable purposes. This is confirmed by the Cornerstone General Contractors' bid. Of the space under construction a portion is intended for use for retail purposes. AHF's own plans provided in the 2024 application for the existing building show a retail store that was not exempted still existed even as the renovation/construction is continuing. Thus, AHF intends that a mixed use will prevail in the building. • When the renovation began on the museum premises, the AHF moved the gift shop to the KANA marketplace, where it continues to operate. In the building plans dated December 15, 2023 (Exhibit #15), supplied by the COK B&S Department to the KIB Assessors office, a portion on the first floor is clearly labeled "museum store". By the plans, it measures to be approximately 896 SF and includes an office. In a conversation with Alutiiq Museum staff, April Counceller, at the January 4, 2024, inspection, Assessing staff was told that the store area would "probably be smaller." Plans provided by AHF at the reconsideration meeting states that the store will be 291 SF, with the store manager office being 93 SF, totaling 384 SF. This provides evidence to staff that AHF will still be engaged in exempt and nonexempt uses. Assessing staff took into consideration the counter space in that area and reduced the store area from 384 SF to 365 SF. 07/17/2025 2024 BOE Exemption Appeal No. 2025-E1 Page 46 of 142 3.0 BOE Information from Manager Williams AGENDA ITEM #5.A. • The gift shop's relocation and continued operation supports that its use is not directly incidental to and vitally necessary for accomplishment of the charitable purposes. It was determined that it operates as an independent program. • It should also be noted that Assessing staff was alerted to a Facebook post, where AHF allowed retail sales in the entrance to the museum area (Exhibit #7). This area was exempted by Assessing staff, as staff was not made aware by AHF that they allowed retail sales in these areas. • April Counceller's own testimony at the December 20, 2024, reconsideration meeting stated that the basement area which was previously leased by NOK was NOT in use by AHF staff prior to demolition of the basement. This area was determined to be 925 SF by assessing staff. • Alaska court guidance is based on use as of the tax determination date, January 1, not the intend use of the building after completion. Buildings under construction and not yet in use are not treated as exempt until they are placed in use for exempt purposes. • In the Alaska Superior Court decision dated Sept. 6, 2023, Kodiak Area Native Association (KANA) v Kodiak Island Borough (KIB), there was a similar case. An exempt building that was owned by KANA was being used for exempt and nonexempt purposes. The building went through a renovation stage and then a demolition and rebuild stage. The Superior Court decision was that until the building was completed and a use of the building established, the building was not exempt. Findings of Fact #77 (Exhibit #9) states while "KANA's witness credibly testified the new space was necessary for KANA to provide services... Until those spaces are actually being used to satisfy those obligations, the space is not being used for an exempt purpose and does not qualify for an exemption or exception." An Alaska Supreme Court decision, Ketchikan Gateway Borough (KGB) v Ketchikan Indian Corp. (KIC) provides "...in that case, the Court denied a tax exemption to KIC for a portion of its building under construction, but only because KIC engaged in both exempt and nonexempt uses and had not decided on the final use of the newly constructed portion...". This argument is consistent with the court's direction that property under construction is not exempt until the construction is completed, and it is used for exempt purposes. Even if AHF's outside counsel were correct and the rule in Alaska was that property used for exempt purposes remains exempt during reconstruction, AHF counsel does not recognize that the portion used for non-exempt purposes prior to renovation was not put to use for museum purposes before renovation began. Furthermore, they do not acknowledge that AHF will continue to use the building for both exempt and nonexempt uses when renovation is complete. 07/17/2025 2024 BOE Exemption Appeal No. 2025-E1 Page 47 of 142 3.0 BOE Information from Manager Williams AGENDA ITEM #5.A. The construction and renovation permits were pulled (Exhibit #14), and the renovation began just as the third -party lease ended. The charitable use of those areas was never established. • COK B&S personnel confirmed on July 1, 2025, that a Certificate of Occupancy was issued on June 30, 2025. In the Assessor's Exhibits section of this binder, you will find: 1. Alutiiq Museum exemption application for TY2024, dated December 20, 2023 2. Assessor's Exemption letter TY2023, dated January 31, 2024 3. Assessor's Exemption letter TY2024, dated October 10, 2024 4. Assessor's Reconsideration letter TY2024, dated January 28, 2025, with enclosures • B&S defined area for Cornerstone • Leased area with gift shop square footage • Plat 5. Email requesting Cornerstone Contactors information, dated January 27, 2025 6. Email response from AHF, dated January 27, 2025, with enclosures • Cornerstone area • Scope Assumptions page 2 of 18 7. Facebook post dated May 24, 2025, retail sales in areas considered exempt 8. Email regarding additional evidence, dated April 2, 2025 9. Findings of Fact and Conclusions of Law KANA v KIB Case 3KO-21-00057CI pages 1, 18, 19 and 20 of 32 10. KIB property record card for TY2024 for Alutiiq Heritage Foundation, dba Alutiiq Museum & Archaeological Repository 11. KIB TY2024 building improvement sketch 12. AHF interior floor plan submitted with the TY2024 application 13. Zoning Compliance April 25, 2023 14. Building Permit May 26, 2023 15. Plans from COK Building & Safety for renovation/construction dated December 15, 2023 16. Statutory Warranty Deed (SWD) recorded October 6, 2021 17. Quit Claim Deed (QCD) recorded November 1, 2021 Findings: Assessing staff received notice that AHF was appealing their 2024 reconsideration decision after receiving an email from Alutiiq Heritage Foundation counsel Jahna Lindemuth. AHF contacted outside counsel to review the 2024 exemption decision. In that letter, counsel insists that because AHF no longer has a third -party lease, it is 100% exempt. Their counsel does not make any mention of the other nonexempt uses that are located inside the building. 100% ownership does not necessarily constitute 100% charitable 07/17/2025 2024 BOE Exemption Appeal No. 2025-E1 Page 48 of 142 3.0 BOE Information from Manager Williams AGENDA ITEM #5.A. use. In this case, the Alutiiq Museum has consistently used the building for both exempt and nonexempt purposes since it first began occupying it. This includes the period before AHF owned the building. • While the Natives of Kodiak lease ended prior to renovation, AHF never established any charitable use of 925 SF of those third party leased areas before it began renovation and the building became uninhabitable. • The retail use of the gift shop with consignment sales benefitting artists is one of the intended uses for the renovated space. The specific allocation of that space was defined by the applicant in the reconsideration meeting. This use was denied an exemption previously as not an exclusively charitable use. • While the museum use areas observed to be in actual use are technically uninhabitable due to construction and lack of a Certificate of Occupancy, some areas which were used for exempt purposes prior to construction were still used for those exempt purposes as of January 1, 2024. • Other states may consider space which is under construction and intended for use as an exempted purpose to qualify for an exemption prior to completion of construction and commencement of actual use for an exempt purpose, Alaska State Courts guidance states that exemptions are based on actual current use, not intended use, as seen in the KANA v K/B decision on September 6, 2023. • The KIB Assessor's Office used current mandated decisions to apply the exemption to AHF. 2023 Decision: Building SF: 17,792.0 SF Total exempt SF: 6,696.1 SF Total unexempt SF: 11,095.9 SF 6696/17792=38% exempt and 11095/17792= 62% not exempt. 2024 Decision: Building SF: 15,169.0 SF Total exempt SF: 7,104.0 SF Total unexempt SF: 8,065.0 SF 7104/15169=47% exempt and 8065/15169=53% not exempt. 07/17/2025 2024 BOE Exemption Appeal No. 2025-E1 9 Page 49 of 142 3.0 BOE Information from Manager Williams AGENDA ITEM #5.A. APPEAL 2025-El 2024 Reconsideration Decision: Building SF: 15,169.0 SF Total exempt SF: 12,676.0 SF Total unexempt SF: 2,493.0 SF 12676/15169=83.565 (rounded to 83.6%) exempt and 2493/15169=16.43% (rounded to 16.4%) not exempt. Land:2493/31470=7.92% (rounded to 8%). 92% of the land will be exempt. Conclusions: For the 2024 exemption decision: During the 2024 application review, Assessing staff noticed the difference in SF from what the AHF reported, what Assessing staff had measured, and what AHF is being assessed for. In the reconsideration letter staff pointed out this difference and used Assessing staff's property measurements for the review. • The total square footage of the Alutiiq Museum building is reported by the applicant as 17,792 square feet. • The total square footage of the Alutiiq Museum building is reported at 15,169 square feet with KIB records. For the purpose of this determination, KIB's square footage is used. At the time of the reconsideration, Ms. Counceller's testimony stated that 925 SF of the basement level, which was previously occupied by NOK, went immediately into demolition phase before AHF used it for any exempt purpose. AHF admits to not informing the KIB Assessor's Office about the area occupied by Cornerstone Contractors at the reconsideration meeting. The December 4, 2023, scope documents from AHF show that AHF intended to allow Cornerstone use of areas during construction as part of their contract. The area highlighted on the plans was given to Assessing staff by COK B&S staff who conducted inspections during the remodel/demolition of the building. The exemption was based on apportionment between the portion of the building which was being used by AHF staff exclusively for charitable purposes and treated as exempt, and the portion which was still under construction and could not be used for any purpose, charitable or otherwise. The gift shop area is clearly defined in the plans for the museum. They continue to operate the store in both the marketplace and in the museum (Exhibit #14). Additionally, they are now offering space for retail sales in areas that were considered exempt by staff. Since Assessing staff wasn't made aware of this until after the reconsideration was completed, we are not requesting the BOE to refigure any space. This information provides additional evidence that the gift shop is not directly incidental or vitally necessary to the museums charitable use. The COK B&S department stated on July 1, 2025, that the museum was authorized for use by both staff and the public on May 19, 2025, and a Certificate of Occupancy was granted to AHF on June 30, 2025. 07/17/2025 2024 BOE Exemption Appeal No. 2025-E1 10 Page 50 of 142 3.0 BOE Information from Manager Williams AGENDA ITEM #5.A. Assessing used the KANA v KIB Superior Court decision when reviewing the exemption amount. Motions: Assessing is asking the BOE to follow the rule applied in the Alaska Superior Court decision provided to KIB on September 6, 2023, and to uphold the Assessor's reconsideration decision on the exemption from 2024. 07/17/2025 2024 BOE Exemption Appeal No. 2025-E1 11 Page 51 of 142 3.0 BOE Information from Manager Williams AGENDA ITEM #5.A. PROPERTY TAX EXEMPTION APPLICATION _7. 'M KODIAK ISLAND:.•. ROAD,710 MILL BAY .. 99615 PROPERTY INFORMATION LEGAL DESCRIPTION: PROPERTYID: ADDRESS: CURRENT USE: PROPOSED USE: AQUISITION DATE: ACQUISTION COST: FINANCING: OWNER INFORMATION CURRENT OWNER: MAILING ADDRESS: PHONE: E-MAIL: FAX: CONTACT NAME: POSITION: ORGANIZATION NAME: EXEMPTION INFORMATION TYPE OF EXEMPTION REQUESTED: RELIGIOUS CHARITABLE EDUCATIONAL HOSPITAL CEMETERY COMMUNITY PURPOSE DOES YOUR ORGANIZATION CURRENTLY RECEIVE TAX EXEMPT STATUS UNDER IRS CODE 501.C? IF NOT, WHAT PORTION IS TO BE USED IS THE PROPERTY TO BE USED EXCLUSIVELY DOES/WILL THE PROPERTY RECEIVE RENTS FROM FOR NON-PROFIT OR COMMUNITY FOR NON-PROFIT OR COMMUNITY PURPOSES? OTHER ENTITIES? PURPOSES? DESCRIBE THE NATURE AND USE OF THE PROPERTY AS IT RELATES TO THE PURPOSE OF THE ORGANIZATION. PROVIDE DOCUMENTATION THAT DESCRIBES THE EXEMPT ACTIVITIES SUCH AS BROCURES, PAMPHLETS, WEBSITES, ETC. INCOME INFORMATION LIST THE AMOUNT AND SOURCE OF ALL RENTS OR OTHER INCOMES CURRENTLY OR ANTICIPATED TO BE RECEIVED ANNUALLY FROM THE PARCEL TO INCLUDE FUNDING SOURCES TO SUPPORT THE PROPERTY AND USE(S): CERTIFICATION I HEREBY APPLY FOR EXEMPTION ON THE ABOVE DESCRIBED PROPERTY AS PROVIDED IN AS 2945.030(3). I FURTHER CERTIFY THAT THE ANSWERS GIVEN ARE TRUE AND CORRECT TO THE BEST OF MY KNOWLEDGE AND I AM AN AUTHORIZED SIGNER FOR THE ORGANIZATION. I UNDERSTAND THAT WILLFUL MISSTATEMENT IS PUNISHABLE BY FINE OR IMPRISONMENT UNDER AS 11.56.210. SIGNATURE DATE PRINTED NAME POSITION: EMAIL: PHONE NO. PLEASE READ THE ATTACHED INFORMATION CAREFULLY BEFORE COMPLETING THIS APPLICATION. Page 52 of 142 3.0 BOE Information from Manager Williams AGENDA ITEM #5.A. Alaska Statutes dictate what mandatory exemptions from property tax are: AS. 29.45.030. Required exemptions. (a) The following property is exempt from general taxation: (a) (3) property used exclusively for nonprofit religious, charitable, cemetery, hospital, or educational purposes; (b) In (a) of this section, "property used exclusively for religious purposes" includes the following property owned by a religious organization: (1) the residence of an educator in a private religious or parochial school or a bishop, pastor, priest, rabbi, minister, or religious order of a recognized religious organization; for purposes of this paragraph, "minister" means an individual who is (A) ordained, commissioned, or licensed as a minister according to standards of the religious organization for its ministers; and (B) employed by the religious organization to carry out a ministry of that religious organization; (2) a structure, its furniture, and its fixtures used solely for public worship, charitable purposes, religious administrative offices, religious education, or a nonprofit hospital; (3) lots required by local ordinance for parking near a structure defined in (2) of this subsection. (c) Property described in (a)(3) or (4) of this section from which income is derived is exempt only if that income is solely from use of the property by nonprofit religious, charitable, hospital, or educational groups. If used by nonprofit educational groups, the property is exempt only if used exclusively for classroom space. (d) Laws exempting certain property from execution under AS 09 (Code of Civil Procedure) do not exempt the property from taxes levied and collected by municipalities. The Alaska State Supreme Court has made many decisions concerning property tax exemptions and two important findings of the court that are often repeated in property tax cases are: 1. A taxpayer claiming a tax exemption has the burden of showing that the property is eligible for the exemption. (Greater Anchorage Area Borough vs Sisters of Charity, Sup. Ct. No 1299) 2. "Exemptions are strictly construed against the taxpayer and in favor of the taxing authority." (Sisters of Providence in Washington, Inc. v. Municipality of Anchorage) Real Prop Exempt App - Directions Page 53 of 142 3.0 BOE Information from Manager Williams AGENDA ITEM #5.A. PROPERTYREAL APPLICATION•• • The following information is necessary to process an exemption request • A copy of the organization's Articles of Incorporation. A church should give their national affiliate, if any, and if local, list when they were organized. Charter information should be included with the exemption request. • A copy of the most up to date constitution and by-laws. • A copy of your federal tax-exempt status (IRS 501(c)(3)). • State of Alaska business license if applicable. • A detailed statement regarding the nature of the organization and current use of the property including a floor plan with details of use by room or area. • An operating statement showing income and operating expenses. o Income should be broken down into categories such as ■ Charitable donations ■ Federal monies designated for particular purposes • Corporate contributions • State whether or not any income will be received as a result of the use of the property. • Include the date on which the property will commence to be used for an exempt purpose, if the date is different from the purchase date. • In order to qualify for an Educational exemption, there must be: o Delineated classroom space o A developed curriculum o Systematic instruction must be in place • Documentation supporting/describing the activities of the organization. o Brochures, pamphlets and web pages are acceptable forms of documentation. Real Prop Exempt App - Directions 2 Page 54 of 142 3.0 BOE Information from Manager Williams AGENDA ITEM #5.A. Kodiak Island Borough Assessing Department 710 Mill Bay Road • Kodiak, Alaska 99615 Phone (907) 486-9353 • Fax (907) 486-9395 January 31, 2024 Alutiiq Heritage Foundation 215 Mission Rd Kodiak, AK 99615 Ref: Exemption from Real Property Taxes (corrected) KODIAK TWNST BK 3 LT 11A Dear Alutiiq Heritage Foundation, Your request for exemption from property taxes for the property referenced above has been reviewed and a final decision made. The details surrounding the request for exemption and final administrative decision are provided below. Statement of the Case Alutiiq Heritage Foundation; DBA Alutiiq Museum & Archaeological Repository, a nonprofit corporation; owner of Real Property at the above referenced location has requested an exemption from property taxes based on Alaska Statute 29.45.030 (a) (3). AS 29.45.030(a) (3) provides that the following is exempt from taxation: (3) property used exclusively for nonprofit religious, charitable, cemetery, hospital, or educational purposes. The application dated January 10, 2023, requested an exemption based on exclusive use for charitable purposes. Because the timely application sought an exemption solely based on an asserted non-profit charitable purpose the application will not be reviewed for other potential exempt purposes. Relevant Statutes KIBC 3.35.030(3): All property used exclusively for nonprofit religious, charitable, cemetery, hospital, or educational purposes (classroom space only), is exempt from taxation for the calendar year in which application is timely filed if the assessor determines that the application demonstrates the property qualifies for exemption as provided by AS 29.45.030. For Charitable use property, AS 29.45.030(2) further defines (c) Property described in (a)(3) or (4) of this section from which income is derived is exempt only if that income is solely from use of the property by nonprofit religious, charitable, hospital, or educational groups. If used by nonprofit educational groups, the property is exempt only if used exclusively for classroom space. Page 55 of 142 3.0 BOE Information from Manager Williams AGENDA ITEM #5.A. (1) a structure, its furniture, and its fixtures used solely for public worship, charitable purposes, religious administrative offices, religious education, or a nonprofit hospital; (2) lots required by local ordinance for parking near a structure defined in (2) of this section." When applying tax exemption statutes, "Charitable" is to be narrowly construed. Findings of Fact • Alutiiq Heritage Museum acquired the property by deeds dated October 10, 2021 & November 1, 2021. • The property's use prior to purchase was a museum and office space that was co- shared, and a portion of that office space was leased. This building was co -owned until 11/1/2021, but the lease agreement was through March 31, 2023. • The deeds transferring the property did not restrict the use of the property to exempt purposes. • The assessor received the application for an exemption for 2023 on January 10, 2023, making the application for an exemption for charitable purposes timely. • The following documents were included with the application: o A copy of IRS 501(c)(3) documentation dated January 07,2004 and August 27, 1997. o Bylaws of the Alutiiq Heritage Foundation o A copy of Alutiiq Heritage Foundation business license from the State of Alaska, expiring 12/31 /24 shows Alutiiq Heritage Foundation is the owner of the Alutiiq Heritage Foundation. o Several printouts from the internet focused on the Alutiiq Museum is included with the application. o A copy of Alutiiq Heritage Foundation Articles of Incorporation. o A copy of Alutiiq Heritage Foundation Basic Financial Statements with an Independent auditors report thereon. o The correspondence from the Alutiiq Museum included a floor plan diagram depicting the areas leased by NOK, areas used for museum purposes, areas used for the museum gift shop, and the common and undesignated areas. • On the application dated 1/10/23, Alutiiq Heritage Foundation has not provided a written statement of the use of the property. • The owner, Alutiiq Heritage Foundation has applied for an exemption for 2023 for all of the property except for the portion leased to Natives of Kodiak (NO{) for their separate purposes through March 31, 2023, based on the Alutiiq Heritage Foundation's use of the remainder of the property exclusively for charitable purposes. • On the application dated 1/10/23, the owner states "that the property receives rents from other entities." One of the previous owners leased offices and shared space of the building until Feb 28, 2023, when they moved out. The existing lease had a clause that the Alutiiq Museum was to honor as per the donation (of the building) agreement. • An inspection of the Alutiiq Museum was completed by the Assessor's Office in January 2024. The building is undergoing and expansion and interior remodel. The upper floor (2"d floor) consists of offices to accommodate the Alutiiq Museum support staff and for January & February of 2023 a section of office suites was occupied by another entity. The second level (1st floor) is the previous retail space, collections, and classroom space. At time of inspection most of the 2nd level has been demolished in preparation for remodel. The lower level (basement) interior has been demolished in Page 56 of 142 3.0 BOE Information from Manager Williams AGENDA ITEM #5.A. preparation for remodel. • The Alutiiq Heritage Foundation closed their doors to the public on July 12, 2023 • Construction began October 2023. • The Alutiiq Heritage Foundation staff remains working on the 2"d floor of the building. • The application does not have a written statement as to the nature and use of the property as it relates to the purpose of the organization. • The application asserts entitlement to an exemption as a charitable organization. • When the museum is open and operating the museum display portion of the property provides exhibits, cultural education, care and preservation of artifacts and collections of archaeological materials, photographs, film & audio recordings. • The Alutiiq Heritage Foundation uses collections to illustrate exhibits and educational programs. Staff also collaborate with other museums. • The Alutiiq Heritage Foundation is governed by a board of directors. No compensation is given to any board member. • The Alutiiq Heritage Foundation's retail store retains 25% of the proceeds from items that sell. Items are sold on consignment, with the remainder of the proceeds going to the seller/artist. The money generated by the retail store helps pay utilities. The retail store accepts items for sale from anyone as long as the items are within the scope and mission of the museum. • The applicant has shown that the museum revenues are reasonably necessary for the accomplishment of museum purposes and not in excess of the museum operating costs. • The Alutiiq Heritage Foundation operates an archeological depository DBA Alutiiq Museum Archaeological Repository. • The total square footage of the Alutiiq Museum building is reported by the applicant as 17,792 square feet. • NOK leased storage in the basement though March 31, 2023. Lease storage area was 943 square feet. • NOK leased office suite and conference room. Leased area was 2257 square feet. • The total square footage per the application by the Alutiiq Museum is 17,792. The total area of lease by NOK was 3200 square feet. • The retail space of the Alutiiq Museum was 291 square feet. The retail store manager's office is 93 square feet. The 384 square feet of retail use space is not exempt because it is used to generate income for private artists as well as some revenue for the museum. • Alutiiq museum use space for galleries, closets, offices and areas identified by the applicant as exclusively use for museum purposes total 1,939.1 sq ft of the basement, 3,820 sq. ft. on the first floor and 937 sq. ft on the second floor for a total of 6,696.1 square feet. • The remainder of the building is restroom, elevator, mechanical, electrical and circulation space which is not exclusive to the museum use but is common area serving the non-exempt NOK leased space and gift shop space, and undesignated space. This non-exclusive use common area is 2,869.06 sq ft of the basement, 1,814 sq ft of the first floor and 2,828.46 sq ft of the 2nd floor for a total of 7,511.52 sq ft. • NOK had a lease agreement from January 1- March 31, 2023; NOK did vacate the premises on February 28, 2023. The lease was terminated on that date. • The entry fee to access the Alutiiq Museum is not in excess of the costs to maintain the museum. Page 57 of 142 3.0 BOE Information from Manager Williams AGENDA ITEM #5.A. Cnnclusinns Statutes granting exemptions are to be narrowly construed. Applicants for property tax exemptions have the burden of demonstrating that the subject property qualifies for an exemption. The applicant has presented evidence of charitable use of the property. Approximately 6,696.1 square feet used for charitable museum purposes. The remaining space is lease to NOK, retail use space, and common areas used by NOK tenants and retail space and is not used exclusively for charitable purposes and therefore does not meet the requirement for a charitable exemption. Approximately 11,095.9 square feet (62 %) does not meet the requirement as charitable use and does not qualify for an exemption. Decision The property which is the subject of the application does qualify for a partial exemption for property used exclusively for charitable purposes. The application for exemption for this property is hereby granted a partial exemption for tax year 2023. It is determined that the total square footage is 17,792 square feet and the nonexempt portion is 11,095.9 square feet. The exempt portion is 6,696.1 square feet (38%). If you feel this determination is incorrect, you may either appeal to the Board of Equalization under AS 20.45.200(a) and KIBC 3.35.055 or the Alaska Superior Court in accordance with Alaska Rule of Appellate Procedure 602 and AS 29.45.200(c) or may request reconsideration by the Assessor under KIBC 3.35.030(G). If you request reconsideration, you will have 30 days from the date of mailing of the decision on the reconsideration request to appeal to either the Board of Equalization or the Alaska Superior Court. If you timely request reconsideration you will be contacted to set up a meeting at our earliest convenience, at which time you will have the opportunity to present any information or documentation that you feel will impact this decision. If you fail to either appeal or seek reconsideration within 30 days of the mailing of this letter your right to seek review or appeal will cease. If you have any questions regarding this matter, contact Seema Garoutte, Borough Assessor by email sgaroutte(aDkodiakak.us or by phone at (907) 486-9350. Respectfully, Jea* v,e,, F,4eL Jeanne Friel Appraiser Kodiak Island Borough 907-486-9354 Page 58 of 142 3.0 BOE Information from Manager Williams AGENDA ITEM #5.A. Kodiak Island Borough Assessing Department 710 Mill Bay Road • Kodiak, Alaska 99615 Phone (907) 486-9353 • Fax (907) 486-9395 October 10, 2024 Alutiiq Heritage Foundation 215 Mission Rd Kodiak, AK 99615 Ref: Exemption from Real Property Taxes KODIAK TWNST BK 3 LT 11A Dear Alutiiq Heritage Foundation, Your request for exemption from property taxes for the property referenced above has been reviewed and a final decision made. The details surrounding the request for exemption and final administrative decision are provided below. Statement of the Case Alutiiq Heritage Foundation; DBA Alutiiq Museum & Archaeological Repository, a nonprofit corporation; owner of Real Property at the above referenced location has requested an exemption from property taxes based on Alaska Statute 29.45.030 (a) (3). AS 29.45.030(a) (3) provides that the following is exempt from taxation: (3) property used exclusively for nonprofit religious, charitable, cemetery, hospital, or educational purposes. The application dated January 02,2024, requested an exemption based on exclusive use for charitable purposes. Because the timely application sought an exemption solely based on an asserted non-profit charitable purpose the application will not be reviewed for other potential exempt purposes. Relevant Statutes KIBC 3.35.030(3): All property used exclusively for nonprofit religious, charitable, cemetery, hospital, or educational purposes (classroom space only), is exempt from taxation for the calendar year in which application is timely filed if the assessor determines that the application demonstrates the property qualifies for exemption as provided by AS 29.45.030. For Charitable use property, AS 29.45.030(2) further defines (c) Property described in (a)(3) or (4) of this section from which income is derived is exempt only if that income is solely from use of the property by nonprofit religious, charitable, hospital, or educational groups. If used by nonprofit educational groups, the property is exempt only if used exclusively for classroom space. Page 59 of 142 3.0 BOE Information from Manager Williams AGENDA ITEM #5.A. (1) a structure, its furniture, and its fixtures used solely for public worship, charitable purposes, religious administrative offices, religious education, or a nonprofit hospital; (2) lots required by local ordinance for parking near a structure defined in (2) of this section." When applying tax exemption statutes, "Charitable" is to be narrowly construed. Findings of Fact • Alutiiq Heritage Museum acquired the property by deeds dated October 10, 2021 & November 1, 2021. • The property's use prior to purchase was a museum and office space that was co- shared, and a portion of that office space was leased. The lease agreement was through March 31, 2023. • The deeds transferring the property did not restrict the use of the property to exempt purposes. • The assessor received the application for an exemption for 2024 on January 02, 2024, making the application for an exemption for charitable purposes timely. • The following documents were included with the application: o A copy of IRS 501(c)(3) documentation dated January 07,2004 and August 27, 1997. o Bylaws of the Alutiiq Heritage Foundation o A copy of Alutiiq Heritage Foundation business license from the State of Alaska, expiring 12/31 /24 shows Alutiiq Heritage Foundation is the owner of the Alutiiq Heritage Foundation. o Several printouts from the internet focused on the Alutiiq Museum is included with the application. o A copy of Alutiiq Heritage Foundation Articles of Incorporation. o A copy of Alutiiq Heritage Foundation Basic Financial Statements with an Independent auditors report thereon. o An interior floor plan was submitted with the application dated 1/02/24. • On the application dated 1/02/24, Alutiiq Heritage Foundation has provided a written statement of the use of the property. • The owner, Alutiiq Heritage Foundation has applied for an exemption for 2024 for all of the property except for the portion under construction. • On the application dated 1/2/24, the owner states "that the property does not receive rents from other entities." • An inspection of the Alutiiq Museum was completed by the Assessor's Office on January 4, 2024. The building is undergoing an expansion and interior remodel. The upper floor (2"d floor) consists of offices to accommodate the Alutiiq Museum support staff .The second level (1stfloor) is the previous retail space, collections, and classroom space. At time of inspection most of the 2nd level has been demolished in preparation for remodel. The lower level (basement) interior has been demolished in preparation for remodel. • The Alutiiq Heritage Foundation closed their doors to the public on July 12, 2023 • Construction began October 2023. • The Alutiiq Heritage Foundation staff is now utilizing the entire office area (the 2"d floor) of the building and a portion that wasn't under construction on the 1 st floor. • The application has a written statement as to the nature and use of the property as it relates to the 2 Page 60 of 142 3.0 BOE Information from Manager Williams AGENDA ITEM #5.A. purpose of the organization. • The application asserts entitlement to an exemption as a charitable organization. • When the museum is open and operating the museum display portion of the property provides exhibits, cultural education, care and preservation of artifacts and collections of archaeological materials, photographs, film & audio recordings. • The Alutiiq Heritage Foundation uses collections to illustrate exhibits and educational programs. Staff also collaborate with other museums. • The Alutiiq Heritage Foundation is governed by a board of directors. No compensation is given to any board member. • The Alutiiq Heritage Foundation's retail store retains 25% of the proceeds from items that sell. Items are sold on consignment, with the remainder of the proceeds going to the seller/artist. The money generated by the retail store helps pay utilities. The retail store accepts items for sale from anyone as long as the items are within the scope and mission of the museum. While the building is under construction, the retail store has been temporarily relocated to 111 W. Rezanof. • The applicant has shown that the museum revenues are reasonably necessary for the accomplishment of museum purposes and not in excess of the museum operating costs. • The Alutiiq Heritage Foundation operates an archeological depository DBA Alutiiq Museum Archaeological Repository. • The total square footage of the Alutiiq Museum building is reported by the applicant as 17,792 square feet. • The total square footage of the Alutiiq Museum building is reported at 15,169 square feet with KIB records. For the purpose of this determination, the KIB square footage is used. • The basement area of the Alutiiq Museum was under construction in January 2024 when the site visit was conducted. • The second floor Repository and Lab were not under construction at time of visit. The Repository and the Lab are vital to the work that is conducted at the Museum. • The square footage is 1145 sq ft for the Repository and 828 sq ft for the Lab. Total second floor square footage used for museum related Repository and Lab purpose is 1973 sq ft. • The entry fee to access the Alutiiq Museum is not in excess of the costs to maintain the museum. Conclusions Statutes granting exemptions are to be narrowly construed. Applicants for property tax exemptions have the burden of demonstrating that the subject property qualifies for an exemption. The applicant has presented evidence of charitable use of the property. Approximately 7104 square feet (47%) is used for charitable museum purposes. The remaining space of 8065 square feet (53%) is under construction as of January 1, 2024, and does not meet the requirement for a charitable exemption and does not qualify. Page 61 of 142 3.0 BOE Information from Manager Williams AGENDA ITEM #5.A. ni-risinn The property which is the subject of the application does qualify for a partial exemption for property used exclusively for charitable purposes. The application for exemption for this property is hereby granted a partial exemption for tax year 2024. It is determined that the total building square footage is 15,169 square feet and the nonexempt portion is 8065 square feet. The exempt portion is 7104 square feet (47%). If you feel this determination is incorrect, you may either appeal to the Board of Equalization under AS 20.45.200(a) and KIBC 3.35.055 or the Alaska Superior Court in accordance with Alaska Rule of Appellate Procedure 602 and AS 29.45.200(c) or may request reconsideration by the Assessor under KIBC 3.35.030(G). If you request reconsideration, you will have 30 days from the date of mailing of the decision on the reconsideration request to appeal to either the Board of Equalization or the Alaska Superior Court. If you timely request reconsideration you will be contacted to set up a meeting at our earliest convenience, at which time you will have the opportunity to present any information or documentation that you feel will impact this decision. If you fail to either appeal or seek reconsideration within 30 days of the mailing of this letter your right to seek review or appeal will cease. If you have any questions regarding this matter, contact Seema Garoutte, Borough Assessor by email sgaroutteC@-kodiakak.us or by phone at (907) 486-9350. Respectfully, Jea* we, Fr -Le , Jeanne Friel Appraiser Kodiak Island Borough 907-486-9354 Page 62 of 142 3.0 BOE Information from Manager Williams AGENDA ITEM #5.A. KODIAK ISLAND BOROUGH ASSESSING DEPARTMENT 710 Mill Bay Road Kodiak, AK 99615 (907) 486-9350 Phone (907) 486-9353 Fax spEoutteLa kodiakak.us January 28, 2025 April Counceller Executive Director Alutiiq Heritage Foundation 215 Mission Road Kodiak, Alaska 99615 RE: AHF exemption reconsideration Ms. Counceller, i AHF applied for a charitable exemption for the Alutiiq Museum and Archaeological Repository, (PID 15698) for 2024. AHF requested that the property be considered 100% exempt, before construction, citing that the NOK lease area had been vacated in 2023 and was used by AHF staff prior to construction, and reasoning that therefore no apportionment was applicable. On October 10, 2024, the Borough Assessor's Office provided a decision on AHF's application for exemption for PID 15698 for 2024. That decision identified 47% of the building as exempt. On October 23, 2024, AHF requested an appeal to the BOE of the October 10, 2024, decision pursuant to KIBC 3.35.055 and provided written narrative and attorney letters in support of the appeal. A BOE appeal letter was filed with the KIB Clerk and a hearing with the BOE was set for November 19, 2024. At the BOE hearing, AHF requested additional documentation be considered. After BOE consideration it was determined to postpone the hearing. At that time Assessor Garoutte suggested a reconsideration, to which AHF agreed to. On Dec. 2, 2024. AHF and its counsel informed the Assessor's office in writing of the agreement and provided additional documentation to be included in the reconsideration meeting. The reconsideration was scheduled for December 20, 2024. Ira 2024 Exemption Application Decision on Reconsideration Page 63 of 142 3.0 BOE Information from Manager Williams AGENDA ITEM #5.A. At the appeal hearing on November 19, 2024, and again in the letter dated Dec. 2, 2024, AHF counsel wanted to ensure that the following statement was on the record. "...as a threshold matter, we do object as procedurally improper the Assessor amending the findings after AHF filed an appeal. By submitting additional evidence, we do not waive our arguments, that legally, the findings in your October 10, 2024, Decision cannot be amended against AHF after the appeal is filed." During the reconsideration meeting, AHF sent additional documentation for the record and on December 23, 2024, AHF provided a layout of areas with notation of which area was being used by AHF in support of the requested reconsideration. On January 15, 2025, AHF provided documents requested by KIB after agreeing to a one -week extension for the KIB to provide a final decision, so that KIB could adequately review the additional information. At the appeal hearing on November 19, 2024, and again in the at the December 20, 2024, reconsideration meeting, AHF explained that the construction began on the museum in May 2023 and certain rooms that were in use by NOK up through March 1, 2023, per the lease, began being used by AHF staff as early as April 2023. AHF asserted that it believes AHF did establish a charitable use for that area before construction commenced. At the close of the reconsideration meeting, KIB stated that if the Assessor had questions as she was preparing her decision on reconsideration or follow up questions relating to the use of the property or how the space is being measured, AHF would be asked to provide additional information. On December 30, 2024, AHF was asked to provide additional documents for review. The request asked for the following: 1. "A copy of the lease that AHF had with NOK 2. Financials broken out by programs for income and expense. 3. Copies of any contracts for archeological review work for 2022, 2023 and 2024 by year, including revenue and expense to provide the services under those contracts. 4. The space in the building used for work in fulfillment of those contracts; and 5. Whether that work continued during the museum closure 6. Any mission statement that could clarify the relationship between the gift shop and the museum purpose and the relationship between the archeological work and museum purpose. The testimony addressed that they were related, but if you had some sort of mission statement or purpose statement for pursuing that work, I would appreciate a copy for my files and where on your website you have that." 3 2024 Exemption Application Decision on Reconsideration 3.0 BOE Information from Manager Williams Page 64 of 142 AGENDA ITEM #5.A. AHF provided documentation to the KIB Assessors office on January 15, 2025. 1. Dimensions of the various spaces. The first issue is a factual issue regarding the total square foot of each floor. According to AHF, the footprint is as follows: Basement S,751 SF, First Floor-6,018 SF and second floor- 6,022.46 SF, for a total of 17,792 SF. The City of Kodiak Building Official provided plans for the renovation and calls out the footprint as follows: Basement 5,812 SF, First Floor-6,026 SF and Second floor-6,294 SF for a total of 18,182 SF, and Assessing, in 2024 calls out the footprint as follows: Basement- S,490.8 SF, First Floor-4,547.3 SF and Second Floor as 5,130.6 SF for a total of 15,169 (rounded) SF. When assessing sketched this property, areas, such as "open to below" were not included and areas such as stairs were only added to one floor. Additionally, when the "condo" units were combined, Assessing did not recalculate the floor space. We believe this accounts for much of the differences in square foot and for the purposes of this reconsideration, we will be using Assessing's calculations, as those were used for Notice of Value and taxable area calculations. The most recently submitted and reviewed building plans provide the most reliable dimensions. It should be noted that the Assessing Department will use the new SF calculations provided by Building and Safety, that includes the new construction beginning in 2025. The footprint for the building beginning in 2025 and going forward will be as follows: Basement-7,511 SF, First Floor-7,704 SF and Second Floor 6,294 SF. The building official provided the official plans to the Assessor for measurement, and the measurements identified and depicted were verified by the KIB Projects Manager. Based on those plans the most accurate calculation of square footage of spaces is depicted on the various appended diagrams. The square footage of each floor on exterior and interior measurements on the building plans was calculated by Assessing staff. I find the various spaces and areas at issue in this case are as follows: Lot area: 31,470 SF per Plat 87-36 Heated first floor area total: 4,547.3 SF Heated second floor area total: 5,130 SF 4 2024 Exemption Application Decision on Reconsideration 3.0 BOE Information from Manager Williams Page 65 of 142 AGENDA ITEM #5.A. Useable, finished Basement total: 5,490.8 SF Total SF in this reconsideration: 15,169 (rounded). 2. Use on January 1 The use as of January 1 of the tax year looks not just at the use on that date but evaluates and determines the use to which the space is committed as of that date. This may take into account the use of the space prior to and after that date in evaluating consistency and commitment to a particular use. Courts in other states have discussed this in the context of agricultural use property which did not have crops planted on the specific day, but which was nonetheless dedicated to agricultural use,' and to university properties which were used for university storage but were temporarily vacant.z Accordingly, the use of the property on January 1 will not be determined based on incidental use or non-use on that date, but considers whether the space has been committed to a particular use and purposes for which the space is both actually used, and the use for which it is intended to be used, at that point in time. Following these authorities for guidance, where the intended future use is different from the use in 2023 or as of January 2024, the property may not be exempt until that potential future use for a charitable purpose is established. Where, however, the charitable use of the space is established prior to construction, there is no intervening use, and the intended future use of the space is the same charitable purpose, then the dedication to that charitable use would not be lost due to the intervening lack of any use during construction. Assessing staff inspected the property on January 4, 2024. According to Assessing staff, no AHF staff was present, and demolition/construction was in full swing. At the reconsideration meeting Ms. Counceller indicted that museum staff occupied parts of the second floor formerly leased by NOK until March 2024. There is a factual conflict between the testimony of Ms. Counsellor and the observations of assessing staff. However, this factual conflict need not be ' See for example Mason County v. Lenoir, 695 So. 2d 596 (Miss. 1997). z See, for example District of Columbia v. Catholic University, 397 A2d 915, 922 D.C. 1979)("The crux is not the incidental use or nonuse of the property but what is the primary use...."). The Alaska Supreme Court cited to this reasoning in its decision in Ketchikon Gateway Borough v. Ketchikon Indian Corp., 75 P.3d 1042, 1048, n. 27 (Alaska 2003). In KGB v. KlCthe Supreme Court also held space in a building that is not used for and has not been committed for use for an exempt purpose is not exempt under the implied federal preemption doctrine. Similarly, in a September 6, 2023, decision in KANA v. KIB, 3 KO-21-57CI, the Superior Court held that in the case of a building undergoing renovation, until the construction was completed and an exempt use established in the new space the building was not exempt. 5 2024 Exemption Application Decision on Reconsideration Page 66 of 142 3.0 BOE Information from Manager Williams AGENDA ITEM #5.A. resolved. As discussed below, whether AHF was using the former NOK space on the second floor on January 1, 2024, or not does not alter the analysis of that former NOK second floor space for this decision. At the reconsideration meeting, Ms. Counceller indicated that AHF staff had moved into some of the areas that were previously leased to NOK on the second floor and followed up with a floor plan, showing by name who moved where. Additionally, AHF sent pictures that were dated by file name, but no dates were on the pictures themselves. Ms. Counceller also indicated that the basement area leased by NOK was not used by AHF staff prior to demolition of the basement area. Lastly, during the reconsideration, Ms. Counceller stated that the water to the building was turned off in March 2024 and that AHF staff vacated the building. When reviewing that tenant lease provided by AHF, "a certain space known as suite 212 containing approximately 2,744 SF and an approximately 925 SF basement area" were contracted as leasable to NOK. The first diagram that AHF provided shows that only 1712 SF of the second floor was in use by NOK. "Leased area, shown in blue". For purposes of the 2024 exemption review the NOK lease provides the clearest statement of the area previously leased by NOK. Therefore, the NOK leased area will be treated as including 925 SF of the basement and 2,744 SF of the second floor. The Building Official advised the Assessing staff that demolition and renovation began on the property no later than May 2023, and some construction/demolition had begun "at the owners risk" prior to the pulling of the permit. The Building Official stated that, at that time, museum staff had moved artifacts to the first floor. While that foundation and demolition was going on, staff was asked to vacate the building. The Building Official stated that Cornerstone construction was using a portion of the building for their "Construction office" before and during the renovation of the basement area, and that the rest of the 2"d floor was dedicated to storage for items that were on the first floor that had to be removed. The space used by Cornerstone construction beginning in 2023 included approximately 1,184 SF of the 2nd floor, as indicated on the diagram attached. The testimony at the reconsideration meeting indicated that AHF personnel previously in that space moved into the former NOK space. AHF made no mention of the Cornerstone use at the reconsideration meeting. Subsequently, AHF confirmed that Cornerstone used a portion of the building for its construction offices. The use of a portion of the space as of January 1, 2024, by Cornerstone was under Cornerstone's control and at their discretion for their purposes, not for AHF charitable purposes. 6 2024 Exemption Application Decision on Reconsideration Page 67 of 142 3.0 BOE Information from Manager Williams AGENDA ITEM #5.A. The gift shop space in 2023 included the 291 SF gift shop and 93 SF for the Store Manager office. Other space may have been used for the gift shop but based on the floor plan diagrams provided only this 384 SF area appears to have been dedicated to the gift shop use. The gift shop moved to the Marketplace building prior to January 1, 2024. The evidence provided did not identify any other AHF use of this space in 2024. The 384 SF of gift shop space, as well as additional area, was identified as intended to once again become gift shop space after the remodel. I find that as of January 1, 2024, the various spaces and areas at issue in this case were used as follows: Former NOK lease area on Second Floor: 2,744 SF not in use.3 Former NOK lease area on Basement Floor: 925 SF not in use. Former Gift Shop area on First Floor: 384 SF not in use. Cornerstone Construction office space on Second Floor: 1,184 SF in use for construction offices. Balance of space in building: 9,932 SF not in use. Total SF: 15,169 (rounded). 3. Dedicated and intended use For the former NOK leased space on the second floor and in the basement, the vacated gift shop space, and the balance of the space in the building, Assessing is trying to establish whether the space was used for exempt purposes prior to the remodel, whether it was used for any other purposes in the interim, and whether the intended use after the remodel is consistent with the use prior to the remodel, In other words, for formerly NOK leased space, whether AHF established charitable use in that area before construction began. The 2,744 SF on the second floor involved in the NOK lease is identified by AHF as intended for AHF use after the remodel is completed. AHF presented evidence stating that in February 2023, NOK and AHF terminated the lease and AHF staff moved into the second -floor areas formerly leased by NOK. AHF presented testimony and evidence that the staff using the areas vacated by NOK were using those areas for AHF museum and archeological functions. 3 As noted above this is a disputed fact, but as explained below this factual dispute is not material. 7 2024 Exempt on Application Decision on Reconsideration Page 68 of 142 3.0 BOE Information from Manager Williams AGENDA ITEM #5.A. The testimony and evidence provided indicated that the 925 SF area formerly leased by NOK in the basement was not occupied by AHF for AHF purposes prior to demolition for the remodel. No AHF use of that space was established after vacation by NOK and prior to January 1, 2024. An AHF use of that space has not yet been established. The former gift shop space was used for gift shop purposes prior to the remodel. That use was suspended prior to January 1, 2024. The testimony and evidence indicated that the 384 SF formerly used for gift shop purposes is intended for use for those same purposes after re - occupancy when construction is completed. The evidence does not show use for any other purposes in the interim. Regarding the remainder of the building, the Building Official indicated that after construction began in May 2023 Cornerstone construction was using space on the second floor for offices. AHF has confirmed that his is the case. The Building Official indicated that after May 2023 the rest of the 2nd floor, including the area in former NOK lease, was all closed off and AHF staff was not permitted in the building. The Building Official believed that was in April 2023, when AHF received their zoning compliance and before May 2023 before they were awarded a permit. The other areas on the first floor and in the basement did not experience any change in use or interim use during construction. These areas were used by AHF for museum and archeological purposes prior to construction, and are intended for those same uses following completion of construction. I find that as the dedicated use, taking into account prior and intended future use, of the of the various spaces and areas at issue in this case January 1, 2024, were as follows: Former NOK lease area on Second Floor: 2,744 SF not in use. Use for museum and archeological purposes established in 2023 and intended following remodel. Former NOK lease area on Basement Floor: 925 SF not in use. No AHF use established prior to remodel. No new use established as of January 1, 2024. Former Gift Shop area on First Floor: 384 SF not in use. In use for gift shop prior to remodel. Intended for gift shop use after remodel. Cornerstone Construction office space on Second Floor: 1,184 SF in use for construction offices as of January 1, 2024. Future use not established as of January 1, 2024. Balance of space in building: 9,932 SF not in use. Use for museum and archeological purposes established in prior to remodel and intended following remodel. Total. SF: 15,169 (rounded). 8 2024 Exemption Application Decision on Reconsideration 3.0 BOE Information from Manager Williams Page 69 of 142 AGENDA ITEM #5.A. Is the Use exempt The next step is to look at each of the uses of the property and determine whether the use is exempt. The uses include museum use, archeological repository and survey use, gift shop use, use by others, and undesignated use. As a starting point, "all property is benefitted by the security and protection furnished by the State, and it is onlyjust and equitable that expenses incurred in the operation and maintenance of government should be fairly apportioned upon the property of all."4 "A taxpayer claiming a tax exemption has the burden of showing that the property is eligible for the exemption. Furthermore, the courts must narrowly construe statutes granting such exemptions."' Exclusivity of use is strictly construed under Catholic Bishop, and the court has recognized only two narrow exceptions: 1) where the non-exempt use is de minimis, or 2) where the use, while not exempt on its own, is directly incidental to and vitally necessary for the exempt use of other property.' Where an owning entity engages in some exempt charitable programs or activities, a question for each property is whether the use of that property is exclusively for charitable purposes. The exempt use must be exclusive, subject to only de minimis non-exempt use. Any non-exempt portions must be spatially apportioned. If the non-exempt use is more than de minimis, then there is no exemption. If the non-exempt use cannot be spatially apportioned, then there is no exemption. Not every use of property by a charitable institution is automatically entitled to an exemption merely because it can be characterized as either primarily or generally promoting or supporting the institution's exempt purpose in some way. For example, in Catholic bishop the court found that housing for seminary students and church volunteers was not exempt, even though such housing benefited the church. It was not directly incidental to and vitally necessary for accomplishment of the charitable purposes. Other courts have made similar findings with respect to programs or facilities which, while convenient or beneficial to an exempt use, are not part of the core charitable purpose. Were it otherwise, exemptions would extend to anything owned or used in some way by a non-profit entity which engages in some exempt activities. n Ketchikan Indian Community v. Ketchikan Gateway Borough, 75 P.3d 1042 1045 (Alaska 2003). Citing City of Nome v. Catholic Bishop of N. Alaska, 707 P.2d 870, 879 (Alaska 1985) (quoting Animal Rescue League v. Bourne's Assessors, 310 Mass. 330, 37 N.E.2d 1019, 1021 (1941)). S Fairbanks North Star Borough v. Dena Nena Henash, 88 P.3d 124, 145 (2004), citing Greater Anchorage Area Borough v. Sisters of Charity of House of Providence, 553 P.2d 467, 469 (Alaska 1976); McKee v. Evans, 490 P.2d 1226, 1230 (Alaska 1971). ' City of Nome at 880. ' City of Nome at 885. 2024 Exemption Application Decision on Reconsideration Page 70 of 142 3.0 BOE Information from Manager Williams AGENDA ITEM #5.A. The only limit would be the creativity of the entity in asserting how a use benefits their charitable activities. Where the use of property generates rents or other revenues the three-part Kings Lake Camp' test applies. The assessor, and the court, must look at Whether (1) the property is used exclusively for exempt purposes; (2) the payment is not sought as a result of a dominant profit motive; and (3) the payment is both incidental to and reasonably necessary for the accomplishment of the exempt activity and does not exceed operating costs.' In Catholic Bishop the Court recognized that a church program to provide reasonably priced clothing to the poor may be charitable. However, where the thrift shop raised money which was unnecessary to the shop's operation and charitable purpose of providing low-cost clothing, but instead was diverted to pay for other programs, then it's use was for fundraising, not charitable purposes, and that operation would not be exempt. A. Museum programs The museum operation provides cultural history and educational services which are properly characterized as charitable. The 2022 and 2023 audits reflect programs of museum, education and archeology. The audits show some revenues from museum admissions. Applying the Kings Lake Camp test, the revenues for admission fees meet the three criteria. The bulk of the museum funding is from grants and donations, and the fees charged are a very small portion of the total revenues required to offer the programs, and thus are not charged as part of a dominant profit motive. The initial decision on October 10, 2024, had found that the museum revenues met the third prong of the King's Lake test because they were reasonably necessary for the accomplishment of museum purposes, and not in excess of the museum operating costs. I concur. The museum admission revenues are also used only to fund museum programs. I find that the museum use, and space used exclusively for that museum use, qualifies as an exempt charitable purpose. B. Archeological Programs The archeological program offers a number of services including: a repository for artifacts; expertise for review or preparation of archeological reports to assist with development project permitting and construction; identification of archeologically significant finds; and archeological research and education. These purposes may be characterized as charitable. Therefore I find that the archeological function is properly characterized as a charitable program. ' Matanuska Susitna Borough v. King's Lake Camp, 439 P.2d 441 (Alaska 1968). 9 Fairbanks North Star Borough v. Dena Nena Henash, 88 P.3d 124, 137 (2004) io 2024 Exemption Application Decision on Reconsideration 3.0 BOE Information from Manager Williams Page 71 of 142 AGENDA ITEM #5.A. The AHF has archeological contracts with various governmental and non -governmental agencies which provide revenues to pay for services through grants and through contracts for services. The testimony indicated that the archeological function does not produce revenues in excess of costs. Revenues from grants and contracts are used to support the archeological program function. AHF provided statements and documents that support that any income derived from archeological digs other than grants. The majority of the funding is from governmental entities, with a small amount of private work performed infrequently. The fees charged for archeological services to private entities are not clearly in excess of the costs to provide the services private entities which require that work, and so, on the evidence provided, these archeological services do not appear to be the result of a dominant profit motive. Applying the Kings lake Camp test, the revenues for archeological services meet the three criteria. find that the archeological program, and space used exclusively for that program, qualifies for a charitable use exemption. C. Gift Shop The AHF operates a gift shop. According to the testimony and materials provide by AHF, the gift shop on site closed in July 2023 and was moved to the Marketplace site. The intention is that it move back into the museum building in 2025. The gift shop continued to operate on-line and off site during the remodel. The testimony indicated that in addition to the sale of goods, the gift shop also acts as a greeting point for the museum, answering phones and handling admissions. It is intended to do so when it relocates back into the museum building. The gift shop provides an outlet for the sales of culturally themed items crafted by native and non-native artists and other items compatible with the museum mission. The testimony indicated that the gift shop carries art which is consistent with the museum mission, and the gift shop program helps teach about Alutiiq art. The explanation was that sale of non -mission related purposes could jeopardize the tax-exempt status. This reason identifies a motivation for the choice of products to carry in the shop which is not for a charitable purpose. The gift shop sells private art works on a consignment basis and also purchases items for sale. Some items are museum logo items like mugs, shirts, and the like. The testimony was that consignment sales are marked up about 25% on average, and purchased items for sale are marked up about 50%. The sale of goods on consignment in a gift shop, with revenues shared with private party artists whose artwork could just as readily be sold in galleries or on-line directly rather than selling on consignment in the gift shop, provides an individual financial benefit to the artists based on the use as a retail sales shop. The financial benefit of individual artists is not a charitable purpose. The sale of art on consignment is more than de minimis. The gift shop space is not used exclusively for charitable purposes. The fact that the gift shop continued to operate in a different location separate from the museum supports the conclusion that while it primarily and generally supports the museum mission, it is not directly incidental to and vitally necessary for accomplishment of the charitable 11 2024 Exemption Application Decision on Reconsideration 3.0 BOE Information from Manager Williams Page 72 of 142 AGENDA ITEM #5.A. purposes.10 During the museum closure it continued to operate providing a market for artists to promote and sell their creations. I find the gift shop is not dependent on the museum and operates as an independent program. Even if the gift shop were charitable in itself or were incidental to and vitally necessary for the operation of the museum and archeological repository, the gift shop generates revenues. This requires analysis under the Kings Lake Camp test. The first prong looks at whether the use is exclusively for exempt purposes. As noted, with private parties marketing their art on consignment the purpose is not exclusively charitable. Regarding dominant profit motive, the gift shop operation subsidizes some museum functions through employees serving dual purposes. The expenses of the gift shop are not isolated from the museum function, and based on the evidence provided, even if the gift shop were for a charitable purpose on its own, the applicant has not demonstrated that the revenues for the gift shop are necessary for the accomplishment of gift shop purposes. The audits provided show revenues from store net of cost of goods sold are reported in the 2022 audit as $68,386 and $55,494 for 2021. The 2023 audit reported revenues net of cost of goods sold of $41,824, despite the relocation and museum closure. The verbal testimony indicated that the gift shop does not make a profit when you consider staff time and software costs. However, the expenses were not shown separating out gift shop versus museum, and any excess revenues from sales appear to be comingled with museum revenues. The testimony and argument on reconsideration discussed how the initial decision on October 10, 2024, had found that the museum revenues met the third prong of the King's Lake test because they were reasonably necessary for the accomplishment of museum purposes, and not in excess of the museum operating costs. AHF apparently argues that this finding was binding as to the gift shop and could not be altered. This finding was in relation to the museum operations, not gift shop operations. Even if the gift shop were operated for exclusively an exempt purpose, the applicant has failed to establish that the gift shop operation meets the Kings Lake Camp test and is not part of a dominant profit motive. On the evidence shown the gift shop operates as a separate program whose revenues are used to subsidize the museum operations. This is not a charitable purpose. Accordingly, the gift shop space does not qualify as exempt space used exclusively for charitable purposes. The non-exempt use of that space in 2023 would remain in that status until it is placed in use for exclusively for exempt purposes. D. Use by Others The 1184 SF area of the second floor in use by Cornerstone Construction for construction office purposes was used by a third party in 2024. That third party is not a non-profit entity. This use does not qualify as exempt. 10 City of Nome at 885. 11 2024 Exemption Application Decision on Reconsideration 3.0 BOE Information from Manager Williams Page 73 of 142 AGENDA ITEM #5.A. E. Non-use The 925 SF area in the basement previously leased by NOK was not exempt in 2023 because it was leased to a third party not used for exempt purposes. This area was not placed in use for any charitable purpose after the NOK vacated the space. The space has not yet been placed in use for any charitable purpose. Based on prior superior court decisions, and the best guidance available from the Alaska Supreme Court, this space is not exempt until placed in use for exempt purposes. Therefore, this space is not exempt. 5. AHF reservation on Assessor amending findings of facts. The Assessor did not amend the finding of facts in the original letter. The finding of facts in the Assessors report were based on the assessor's report dated 11/21/2024 for the appeal. Decision: • None of the 925 SF of the NOK lease was presented as being used for a charitable purpose before demolition/construction began. 925 SF of the basement will not be exempt. • The AHF gift shop was moved and operated in another location. This gift shop operation is independent of the museum and is not operated exclusively for charitable purposes. The gifts shop space, 384 SF, is not exempt. • The AHF provided space for Cornerstone Construction for non-exempt use for construction offices. That area is estimated to be approximately 1184 SF and will not be exempt. • The 2,744 SF former NOK space on the second floor was placed in use for museum and archeological purposes prior to vacation for construction. Museum and archeological programs are exempt. This space is exempt. • The remaining 9,932 space was used exclusively for exempt museum and archeological programs and is therefore exempt. • Land: 925+384+1184= 2493. 2493/31470= 7.92% ( round to 8%). Total 92% exempt. • 2493/15169= 16.43 % (round to 16.4%). 83.6% of the building will be considered exempt. If you feel this determination is incorrect, you may either appeal to the Board of Equalization under AS 20.45.200(a) and KIBC 3.35.030(H)(1), or the Alaska Superior Court in accordance with Alaska Rule of Appellate Procedure 602, KIBC 3.35.030(H)(1) and AS 29.45.200(c). If you fail to appeal within 30 days of the mailing of this letter your right to seek review or appeal will cease. 13 2024 Exemption Application Decision on Reconsideration 3.0 BOE Information from Manager Williams Page 74 of 142 AGENDA ITEM #5.A. If you have any questions regarding this matter, contact me at the address or email referenced above or by phone at (907) 486-9350. Sincerely, seevua c,aroutte Kodiak Island Borough Assessor Certified Level V Appraiser, #304 Enc: Plat AHF Diagram Building Official Diagram 14 2024 Exemption Application Decision on Reconsideration 3.0 BOE Information from Manager Williams Page 75 of 142 AGENDA ITEM #5.A. T.1.IF J V w= e d IO. 1p. I Nw Iltl C ® C MN __ low mw�l C ( Ir III/ C o I NN/ sI..... L.. Ilk. I W-3 I.w --- I c olm lee. lee. J ` ... IpV IIOId. = { ktl 14I. CI� ,.ka 001 1 1 — UNII w.r e„ It IltlNw It w w. I.e. TOf�. za ao SCALE IN FEET `` 2nd Floor Ll�) uuew.w.Eecm. Wfl PNII110 uY6 �Wwrn GEIOUr10w MpRO:. IFNOM uy Ive prww a rn ,w.lavm.Ms1®ven e.vvw nr A ly 171R 11 1caa.taD C.pPfA FPtP �OIIF�IF IAr p IYl �/N1Q ,1 T.ilY rCp0. 101C C0..O11Mw9Lm Nl Y IY1011(.j Il ].1 tCdO SOIDCOPPHtIIIL98D® I1a I r.n rcao :aln cropel uYv�n rr Page 76 of 142 3.0 BOE Information from Manager Williams AGENDA ITEM #5.A. •IY61/6•. .]Ot 0•. .20'-0'--20'.0•. .20•-0•. -10'.07716 P CoKnnom IIYA( aav111 Gallery 4&q a0iq h Existing can; r 411,11 First Floor Coll.lions ReOosdory cam requires staNacces3 WAC 11a5,q 11 1.0,611 'lae Pretlad ;, N naQer Oppalgn, AlUliiq 93,Q h 93sq.11 = b Museum , Store Galle'v 191,Qh 51a1 sta h. t Collections t,b 9S,q fr 142,QA 816WR Col /F.Ivb Rotunda Fk.ma [W1Exhb. Enlran<e Cwla of 758W 11 Slays y° pr1 S1Kub,l Oe,A a<h,eob9✓+Oess •178716'•-144114'• •21'15V'• •101015.16'• -34 6'. • 9r•a m6•. Existing Second Floor NOK Conference Room Sa5>Q h rE, Aluliiq Museum Offices 750tu 1i 7j SIa.S Mcbxt/K — ..1Mock 0utl r� 00en [tertlar Srrs r , to below I ILI Icascd a7eas shown in blue Page 77 of 142 3.0 BOE Information from Manager Williams AGENDA ITEM #5.A. \ A rc or �i u n 4 d a, B •c � t a a r&°oLO n �o Op 1 C'4�nG� y N r o\ n off, 4� f2 D T, 9� 16 Kf ` e-�` 7� Kpn. d ,f ~ �a Page 78 of 142 3.0 BOE Information from Manager Williams AGENDA ITEM #5.A. Seema Garoutte From: Seema Garoutte Sent: Monday, January 27, 2025 11:58 AM To: April Counceller Cc: Jahna Lindemuth; Scott Brandt Erichsen Subject: Reconsideration information needed Importance: High Ms. Counceller, It just came to Assessing attention that during the construction period beginning in May 2023 or thereabouts, control over a portion of the 2nd floor was given to Cornerstone Construction, and used by Cornerstone for their construction offices. This was not mentioned in the reconsideration meeting, and I was just wondering if you could give me any information on this. If you could confirm any information that includes, but not limited to... the area that was in use by them, when it started, when it will end (or when it did end) , if there was a lease involved or if it was part of the bid. With the due date off this letter being January 29, any information you have being sent to me by the end of the day would be appreciated. Best, 50o��+.R Assessor Certified Level V Appraiser, #304 710 Mill Bay Road Kodiak, AK. 99615 907-4W9350 Page 79 of 142 3.0 BOE Information from Manager Williams AGENDA ITEM #5.A. Seema Garoutte From: April Counceller <april@alutiiqmuseum.org> Sent: Monday, January 27, 2025 4:32 PM To: Seema Garoutte Cc: Jahna Lindemuth; Scott Brandt-Erichsen Subject: Re: Reconsideration information needed Attachments: Cornerstonedesks.png; Contract.Assumptions.pdf Importance: High Ms. Garoutte, You are correct; I had forgotten during our reconsideration hearing that we provided two desks to Cornerstone to use during the construction. To the best of my knowledge, Cornerstone moved into the area shown on the attached floor plan in the middle of October 2023, before demolition of the basement began in November 2023. As of January 1, 2024, the museum staff still had access to those areas and we had materials stored there in areas around those desks. Of course, we later moved out of the building in March 2024 as I stated at the reconsideration hearing. Cornerstone vacated the office space between December 18 and December 23, 2024, when we got our Conditional Certificate of Occupancy. There was no lease. I've attached the page from our contract with Cornerstone that mentions that they could use space in the museum. I understand that this is standard language in construction contracts for major renovation projects. Thank you, April Counceller AlutIIC1 MUSEUM ARCHAEOLOGICAL REEDS TORY April G.L. Counceller, Ph.D Executive Director Alutiiq Museum & Archaeological Repository ph: 844.425.8844 fx: 866.335.7767 http://alutiigmuseum.org ---- On Mon, 27 Jan 2025 11:58:04 -0900 Seema Garoutte <sgaroutte@kodiakak.us> wrote --- Ms. Counceller, It just came to Assessing attention that during the construction period beginning in May 2023 or thereabouts, control over a portion of the 2nd floor was given to Cornerstone Construction, and used by Cornerstone for their construction offices. Page 80 of 142 3.0 BOE Information from Manager Williams AGENDA ITEM #5.A. � G D 1 , WA OFFr-E RESEARCH RM A � 214A n yl RESEARCH LRPA B OFFICE RAL 220E WIMRINIA O;mwRARY ® 214 1NORKRM OFFK F Q Ap prox F OFFI -z used by 214C 22M 110 Cornerstone n -' -- E - - OFFICE �� 220C NOOK RECE➢T 220A 220 _ JAN 208 21 � iR07� U 81 — o 207 CONFERENCE LOBBY ROOM Q �° 208 208 BREAK RM . . 204 STAFF STAFF OFFICE OFFICE 0 E� O 2os 2os BECaW o � o Page 81 of 142 3.0 BOE Information from Manager Williams AGENDA ITEM #5.A. CORNMZMNE 1111"GMU"CORMACTON Alutiiq Museum Renovations Scope Assumptions & Clarifications • Temporary scaffolding; • Temporary fencing; • Temporary safety railings; • SWPPP engineering, setup, & maintenance; • Product storage and handling ; • Cleaning and waste management; • Snow removal (for access to Contractor's facilities only); • Protecting installed construction; • Closeout procedures; • Closeout submittals; • Demonstration & training; • Warranty; Specific Exclusions • All cost for testing and inspection services; • Cost of temporary utility usage, except on a limited basis for heating fuel when needed during building services interruptions; • Temporary partitions; • Temporary office trailers; • Videotaping of training (none requested); • Commissioning Authority • Snow removal for parking lot; • All else not listed as inclusions. General Clarifications • We have assumed the Commissioning Authority will be procured by the Owner at Owner's expense. • Schedule of Values will be prepared using Cornerstone General Contractors standard Schedule of Values. • Progress payment applications to be submitted on Cornerstone General Contractors standard Payment Application. • We have assumed there will be space provided within the Museum as a jobsite office to Contractor's on site staff for suitable construction management; • Contractor will coordinate with Owner's inspection and/or testing agency for required inspections and tests. • Temporary Utilities - We anticipate no cost usage of existing power and utilities for the duration of our activities on site; • Construction Facilities — We assume space will be available for temporary facilities • Temporary Barriers and Enclosures — Existing doors to/from common ways into tenant space will serve as barrier • ALLOWANCES: o None. 0131 PERMITTING Specific Inclusions • None. Specific Exclusions • See Clarifications. December 04, 2023 Page 2 of 18 3.0 BOE Information from Manager Williams Page 82 of 142 AGENDA ITEM #5.A. a Cannal Kodiak Mariah Stapleton M3y24at11$7AM Come check out the Alutlrq Museum Art Market today!! From 12-5! Weavtng Traditions Crafts by Mariah Stapleton May 24ar1151AM �L1 0T0 DAY! 0 Come stop by the Alutuq Museum Art Market on your way to enjoy this beautiful sunny day' I have my artwork as well as Cassey Rowland s art available at m r tab and there are some more amazing artists here as well! ®Open from 12pm - 5pm® r+alutitq Ralublgmuseum Asugplaq Aalubigeverywhefe 01ocalartist Vcrabfest2025 Page 83 of 142 3.0 BOE Information from Manager Williams AGENDA ITEM #5.A. KODIAK ISLAND BOROUGH OFFICE OF THE ASSESSOR 710 Mill Bay Road Kodiak, AK 99615 (907) 486-9350 Phone (907) 486-9353 Fax sgarouttegkodiakak.us April 2, 2025 Alutiiq Heritage Foundation Attn: April G.L. Counceller, Ph.D. Jhana M. Lindemuth 215 Mission Road, Suite 101 Kodiak, AK 99615 RE: Appeal No. 2025-E1, Evidence Submission Dear Ms. Counceller and Ms. Lindemuth, This letter is regarding the submission of additional evidence to the Board of Equalization (BOE). KIBC 3.35.055 (D)(5) states the following: 5. Rules of Evidence. Evidence shall only be presented by the appellant and the assessor or their authorized representative. The board shall not be restricted by the formal rules of evidence; however, the board may exclude evidence irrelevant to the issues appealed. Hearsay evidence may be considered, provided there are adequate guarantees of its trustworthiness and that it is more probative on the point for which it is offered than any other evidence which the proponent can procure by reasonable efforts. The appellant must submit to the assessor's office, within 10 days of filing their request for appeal, all documentary evidence in their possession which they wish to be considered, and which is relevant to the resolution of the appeal. You filed your appeal on February 27. While the code indicates that all documentary evidence should have been provided by March 9, the appeal packets for this appeal will not be released and made available to the BOE until July 7. If you have additional evidence, please submit your documentary evidence by 4 p.m. on June 25 to ensure that your information is included in the appeal packet. Page 84 of 142 3.0 BOE Information from Manager Williams AGENDA ITEM #5.A. IN THE SUPERIOR COURT FOR THE STATE OF ALASKA THIRD JUDICIAL DISTRICT AT KODIAK Kodiak Area Native Association, Appellant, ) vs. ) Case No. 3KC-21-00057C1 Kodiak Island Borough, ) Appellee. ) FINDINGS OF FACT AND CONCLUSIONS OF LAW Kodiak Area Native Association (hereinafter "KANA") appealed the Kodiak Island Borough's (hereinafter "the Borough" or "Kl B") decision denying tax exemption status for ten of KANA's properties. The court granted a trial de novo, which was held January 31, 2023 to February 3, 2023 In Kodiak. KANA was represented by Richard Monkman and K. Amanda Saunders; KIB was represented by Scott Brandt Edchsen. The court heard testimony from witnesses and has reviewed the exhibits admitted into evidence. The parties submitted written closing arguments on March 2 and March 6, 2023. PROCEDURAL HISTORY 1. On January 15, 2020, KANA applied for property tax exemptions for parcels it owns in the Borough. 2. On October 6, 2020. the Borough Assessor's office granted two exemptions, partially granted three exemptions, denled the remaining exemptions, and assessed taxes accordingly. 3. On October 15, 2020 KANA paid the tax bill under protest and gave notice of appeal of the decisions for the ten parcels at issue here, asserting that the parcels were Findings of Fact and Conclusions of Law KANA % KiS Case No. 3KO-21-00057CI 1 of 32 Page 85 of 142 3.0 BOE Information from Manager Williams AGENDA ITEM #5.A. E 69. Property used for a nonprofit charitable purpose is exempt from taxation As Neither the state Constitutlon nor state statute defines the term "charitable purpose." However, the Alaska Supreme Cou has provided a bread definition of the term. Property is used o a charitable ur ose w tri the ro ram's activity is "done out of good will and i forp p p g ty a desire to add to the improvement I f the moral, mental, and physical welfare of the public generally."49 70. As previously decide, activities that satisfy P.L. 93-638 contracts satisfy the charitable purpose criteria of AS 29.45.030(a)(3).50 P.L. 93-638 contracts are the backbone of KANA's programs. BL t KANA's programs and services have evolved over time, so the court must look at each property to determine whether it engages in activities that are not a P.L. 93-638 program and if not, whether that activity is charitable. 71. The court will addres each property separately to determine whether the property serves a charitable purpos . If the property does not serve a charitable purpose, the court must further find whethe the non-exempt purpose falls under an established exception. Former AC Store/Shipping and S'(orage Facility/Marketplace (P1D 15507): 72. KANA purchased the former AC store in 2014. On the first floor of the building, a small space (2.5% of tha entire building) housed a postal substation that was leased to the United States Postal 4rvlice for $65,000 per year. The remaining portions 48 As 29.40.030(a)(3). A9 Catholic Bishop, 707 P.2d at 890(( 439 P.2d 441, 445 (Alaska 1968)). 50 Order Denying KANA's Second Mc Findings of Fact and Conclusions of La KANA v. KIB Case No. 30-21-0057C1 1t3 of 32 ng Matanuska-Susitna Borough v. King's Lake Camp, ror Partial Summary Judgment p. 9 (Oct. 5, 2022). 3.0 BOE Information from Manager Williams Page 86 of 142 AGENDA ITEM #5.A. of the first floor was used for ship�ing, receiving, warehousing, and storage to support KANA's programs. KANA stored medical supplies and equipment for its medical programs, including its specialty cl nics. It also used the space for records storage, food delivery assembly and maintenance storage. While the maintenance storage supported all of KANA's programs, the space was predominantly used to support KANA's IHS programs. With the exception of tale postal substation, the first floor served a charitable purpose. 73. In 2019, the second loor was unusable space and was taken down to Its studs because of asbestos. Durin& each of the relevant tax years, the second floor was not used for any purpose, €ncludin a charitable purpose, because it was uninhabitable due to the contamination, 74, In August 2021, thbuilding was demolished. The building will be reconstructed into the "Kodiak Ma ketplace" with a possible opening in the summer of 2023. KANA will use a portion of I he first floor for storage, shipping and receiving; the remaining space on the first floor will generate income from commercial leases, including a lease with USPS. The second and training programs. 75. The purpose of the additional space for KANA's wo will he used for KANA's P,L. 93-638 employment and reconstruction project is to provide for The second floor will provide approximately 20,000 square feet which will be u' ed by KANA's P.L. 93-83$ employment and training programs, Revenue from the comri erclal leases will be used to help finance the project. However, from the demolition in Auc, ust 2021 until the building Is In use again, the property has not served any purpose, includ ng a charitable one. Findings of Fact and Concluslons of La KANA v. KIB Case No. 3KO-21-00057CI 19 of 32 Page 87 of 142 3.0 BOE Information from Manager Williams AGENDA ITEM #5.A. 76. In summary, in the to years 2020 and 2021, 88.75% of the first floor served a charitable purpose (which is 48 5% of the entire building). The second floor did not serve a charitable purpose and w s unusable space. In the tax year 2022, the building has been under construction and not in use, therefore it has not served a charitable purpose. 77. KANKs, witness r KANA to provide services purse being used to satisfy those oblig and does not qualify for an exec Ibly testified that the new space was necessary for to its B1A programs. Until those spaces are actually ns, the space is not being used for an exempt purpose on or an exception. i I Findings a Fact and Conclusions of Lai v KANA v. KIB Case No. 3KO-21-O0057Ct 20 of 32 Page 88 of 142 3.0 BOE Information from Manager Williams W n 0 m O 3 Sv O Z3 O 3 ZZ v v CD �C Sv 3 fn ERTY 15698 R OWNER ID Description DBA ALUTIIQ MUSEUM &ARCHAELO 158029 kK TWNST BK 3 LT 11A OWNERSHIP 100.00% 1011111119111111 215 MISSION ROAD KODIAK, AK 99615 GENERAL IES ALL LASTAPPR. JF 3RAPHY LEVEL LAST APPR.YR 2024 ACCESS MISSION - PAVEELAST INSP. DATE 09/14/2023 G B NEXT INSP. DATE REASON 2024 UPDATED EFF YEAR; ADD PAVED PARKING 2023 - COMBINED UNIT 1 & 2 WITH BASEMENT - THIS PROPERTY IS NO LONGERA COMMERCIAL CONDO.-dr 2021: CORRECTED BUILDING PERMITS ISSUEDT PERMITTYPE PERMITAREA ST PERMITVAL 10/11/2023 DEMO 0 A 120000 05/09/2023 CADN 0 A 129:548 SALE DT PRICE GRANTOR DEED INFO 11/01/2021 ***** KONIAG INC QC / 2021-2112 / 10/06/2021 ***** NOK BENEFITS TRU SWD 12/28/2020 ***** NATIVES OF KODIA QC / / PROPERTY APPRAISAL INFORMATION ALUTIIQ HERITAGE FOUNDATION 215 MISSION RD KODIAK, AK 99615 ACRES: .7200 APPR VAL METHOD: Cost 1 100% IMPROVEMENTS 1,968,200 100 100% LAND MARKET + 296,800 201 100% 300 100% MARKET VALUE = 2,265,000 469 469 100% 100/ PRODUCTIVITY LOSS 0 CITY 100% APPRAISED VALUE = 2,265,000 OVER 100% HS CAP LOSS 0 ASSESSED VALUE = 2,265,000 EXEMPTIONS CHR Charitable PICTURE SUBD: KODK 100.00% NBHD:KOD 100.00% IMPROVEMENT INFORMATION I IMPROVEMENT FEATURES I# TYPE DESCRIPTION MTHD CLASS/SUBCL AREA UNIT PRICEUNITS BUILT EFF YR COND. VALUE DEPR PHYS ECON FUNC COMP ADJ ADJ VALUE PAVED PARKING 116MPHALT 69,744 OFC OFFICE D 05/ 5,130.6 134.92 1 1998 2010 AVE 762,000 93% 100% 100% 100% 100% 0.93 708,600 Construction Style SITE BUILT 0 BAS2 BASEAREA2N COMM */ 4,547.3 134.92 1 1996 2010 613,500 93% 100% 100% 100% 100% 0.93 570,600 Roof Covering SHINGLE 0 BAS3 BASEAREA3R COMM */ 5,490.8 134.92 1 1996 2010 740,800 93% 100% 100% 100% 100% 0.93 689,000 Foundation 1 AWW 0 1. MUSEUM & OFFICES STCD: BUS 15,168.7 Homesite: N 27,116,300 1,968,200 Roof Style 1 FLAT 0 3 STORY CONDOMINIUM OFFICE BLDG. UPPER LEVEL OCCUPANCY IS OFFICE; BAS2 IS LIMITED COMMON ELEMENTASSIGNED TO THIS UNIT (#2); BAS3 IS UNDIVIDED Windows Vinyl Frame 0 - - 50%INTEREST IN THE GENERAL COMMON ELEMENTS FOR UNIT #1 & #2 VALUED BY 50% OF SQ.FT. OVERRIDDEN - SEE FLOOR PLAN IN IMAGES . ............ ------------------------------------------- 69,744 SUBD: KODK 100.00% NBHD:KOD 100.00% LAND INFORMATION IRR Wells: 0 Capacity: 0 IRRAcres: 0 Oil Wells: 0 L# DESCRIPTION CLS TABLE SC HS METH DIMENSIONS UNIT PRICE GROSS VALUE ADJ MASSADJ VAL SRC MKT VAL AG APPLY AG CLASS AG TABLE AG UNIT PRC AG VALUE 1. BUS SHELIKOF Al N SQ 31,470.0000 SQ 9.43 296,800 1.00 -1.00 A 296,800 NO 0.00 0 BUILDING IS COMMERCIAL CONDO. LAND VALUE IS SPLIT BETWEEN TWO PROPERTY OWNERS; SEE LAND ADJUSTMENTS. 296,800 0 Page 1 of 1 Effective Date of Appraisal: January 1 Date Printed: 11/08/2024 02:57:20PM by KAILEY True Automation, Inc. W n O m D 0 3 v 0 D 0 3 v v m v� 3 cn CD 0 0 N AGENDA ITEM #5.A. 17'-6 1/4' Existing II Gal ev f First Floor I! Rotunda /}lljl EnLarxc 2%M/1 •17'A 7/6i - Existing Second Floor =i.bl- 1�= 20,0'. . 2W-6• Gallery 4Shglt Alulilq 11 9M "" 1E Opeatio" Museum Sloe 191u1ft V-1. 14 41/4-- 20.0• . . 20•-0• - •10'0716'• 0 ((Ine<Irw1S IwAC 44v1 rl • P Cbsel 40y111 .� Collections Repository G4Me reCuves stall access O scars J Meth `•s GAI Collections lab 9519 rt 1.11s7.h alas43l Chus .."' onk.Con /E.f.b Cwato'of Rke s1m 97sr1It SoetulRl Desk Ar<MeotepY's peck •11'13/4'• -10 1015/I6'• •34 .6'- . 97'•8 7/16' - Page 91 of 142 3.0 BOE Information from Manager Williams AGENDA ITEM #5.A. l i I ;ry Kodiak Island Borough Community /°gdFa Development Department 710 Mill Bay Rd. Rm 205 p Kodiak AK 99615 A�uo Ph. (907) 486 - 9363 Fax (907) 486 - 9396 Zoning Compliance Permit Permit No. The following information is to be supplied by the Applicant: Property Owner/ Applicant: Alutllq Heritage Foundation Mailing Address: 215 Mission Road, Kodiak, AK, 99615 Phone Number. 844.425.8844 Other Contact email, etc.: April G.L. Counceller: april@alutiiqmuseum.org Legal Description: Subdv: Kodiak Townsite Uni b ?. Block: 3 Lot: 11 A Street Address: 215 Mission Road, Kodiak, AK, 99615 Use & Size of Existing Structures: Museum: Historic artifact storage, display, and associated business operations. Existing building square footage totals 18,035sf spread out over 3 floors: Basement: 5 790sf, 1st floor: 5,967sf, 2nd floor: 6 278sf 4 s Description of Proposed Action: Museum is planning to expand the building footprint on -site. Per Zoning code, the number of parkin -1: 13 spaces required will increase from 44 to 55. Museum applied for a variance from nd recieved approval; Case 22-012 Request Variance from parking requirements. See attached approval letter: Exhibit A. Site plan drawing included as Exhibit B. Site Plan to include lot boundaries and existing easements, existing buildings, proposed location of new construction, access points, and vehicular parking areas, As Built required with all improvement changes. Staff Compliance Review: Current Zoning: }�_ I �q/l PROP_ID fs� Lot Area: — Lot Width: j� V Building Height: Front Yard: (/> Rear Yard: N' — Side YarO L Parking plan? a Of Req 'd Spaces: y As Built: Staff Compliance Review Notes and Specific Plat / Subdivision Requirements: V6C inure In4y- m a rray► w+ a f-V nab See Va.r� tzn t`, c:asc 77, a Subd Case No. Plat No. Building PermitNo. Page 92 of 142 3.0 BOE Information from Manager Williams AGENDA ITEM #5.A. Does the project involve an EPA defined facility? _ -commercial buildings, ins tioWl'"'jlitaryaasesf„ t, institutions (schools, pdals) and residences with more than f* (4)dwelling units. Driveway Permit? Septic Plan Approval: Fire Marshall: Proof of EPA notification provided (if required)? `Required for all demolitions, for renovations disturbing at least UO square _ _ _ _ _ feet, 2601inearfeet, or35 cubicfeet of Regulated Asbestos Containing Material (RACM), and for renovations that remove a load-supportingstructurel member er, No permit will be Issued for such oroiects without oroof of EPA notification AoolicantCertification: /hereby certify that lwillcomptywiththe provisions oftheKodiak lslandBoroughCode and that t have the authority to certify this as the propertyowner, oras a representative ofthe property owner. I agree to have identifiable comer markers in place for verification of building setback (yard) requirements. Attachments? Yes List Other: Exhibit A: Variance Approval, Exhibit B: Site Plan Date: April 3, 2023 Print Name: Date: April 3, 2023 Signature: April G.L. Counceller This permit is only for the proposed project as described by the applicant If there are any changes to the proposed project, including its intended use, prior to or during its siting, construction, operation, contact this office immediately to determine if further review and approval of the revised project is necessary. THIS FORM DOES NOT AUTHORIZE CONSTRUCTION WHEN A BUILDING PERMIT IS REQUIRED. "EXPIRATION. Anyzoning compliancepermitissuedis subject to thesameexpiradon, suspension, andrevocation provisions as a building permit issued for the same construction permit ** COD Staff Certification Date: 2 `� / CDD Staff: Payment Verification Zoning Compliance Permit Fee Payable in Cashier's Office Room It 104 - Main floor of Borough Building After -the -Fact 2X the published amount Not App licable $0.00 $0.00 Less than 1.75 acres: �$30.00 $60.00 1.76 to S.00 acres: El $60.00 $120.00 5.01 to 40.00 acres: El $90.00 $180.00 40.01 acresor more: Ei $120.00 $240.00 Page 93 of 142 3.0 BOE Information from Manager Williams AGENDA ITEM #5.A. EXHIBIT B Alutiiq Museum Variance Request 44 Total Parking Spaces Provided 3Z 29EXISTIING 8 2 3635- �rC`t 27 " 9 80 /- - ---- 40 39 - 1 24 41', - � 8 43 4 �. 7 `rc.e -- 44 �-------- 6- — 5 .. ` 4__ _ EC. �- y� • I ' Mm 21 13/^ 14- - -----. --•—S 537WIS' W S2' NEW MANHOLE,, FbR SURFACE DRAINAGE f. w A A /• SAWCBTEXISTING SIDEWALK AND CURB do GUTTER AT NEAREST CONTRACTION JOINT EAST! TRAIIER", SEE NOTE I ti i 1 \ 1 1 O - �., ns IRV E�11 —�--NEW 4' CMP STORM ADn Outline of Proposed Building Addition Outline of Existing Building 3.0 BIDE Information from Manager Williams Page 94 of 142 AGENDA ITEM #5.A. BA515 Or BEARING Alley - undeveloped PLAT 67-3C -� LOT 3 F Blk 1T KDd � I -^ N 54.16' 15" E 150.13' i I I F I I i 1 LOT 11A LIU 3 Kodiak TD Site ARE Bf-JB TNYDWTOAT �_I uETAt FRAME � MRILASEME �e o yy '` 'gUs srOp ^'--5 STOB'20" W15034' MISSION�"'1 `�l�aur` :, EXHIBIT B AS -BUILT SURVEY va2PAaco I 1 Q f1 y ALUTIIO HERITAGE FOUNDATION NN src nw.aaax a- avA JLP SCC}2,t2T5,RIGW,SEW • SCAIf 1--20• UNG ALUPIO-MSAIASBLT_1.10.21 A?1_11-2023 _ 1G NEMESEnTS AS-8— SURVEY PREPARED IN ACCORDANCE WITH THE ASPLS NORTGADE 10CA1. SURNEY THISNS�IR 1 IS A REMESENTAMON W THE CONDInONS THAT -^ I WEPf FOUND Al ME NE Of SURNEY AND DOES NOT "CMST A SWNOMY S1 An0 .S -CT TO ANY NAOES TNAT A SUESE—I BWNDMY GURNEY NAY _ D'SCLOSE. ADDITONAL EISENENTS. RESTRICTIONS OR ENWM6RANMS NAY LIST UPON OR EFFECT TES PROPERTY ADDRESS. Y215 MISSION R0. p WATER: CLD OF NODIAN SEWER: LTY Di NOOIAN � l ELECTRIC: NfA - UNORC: HD -- ACCESS: P UB - My�[ ISSIp1 RDAO N N ZONE: BIIaNE<c N Io q 2D ..�- ... TAT FOB yyy Blk 3 W 11IT 1141 XOd. TT T'-2p• I HEREBY CERTIFY THAT AN ACCURATE SURVEY N�1 A OF THE FOLLOWING DESCRIBED PROPERTY: TnT IFA RI rY`N1 A/mil- WAS MADE ON 1.e3022 ANO THAT THE STRUCTURES THEREON ARE MTHIN THE x / PROPERTY LINES AND THE INPROWMENTS ARE .,A.. AS SHOWN. � P F =�ryi"� / l(j � �P.O ..... pp Pz/es» a Lond Suneltlr D T. Regl WAI, NMmb- LSL070! Oh o ...................:.. -1N1 o Dote. 4OG •:.� JN PURDY j- Q LS Ion, NOD— ppp0 Pmi.awTaTwo� (ww) 'WNS-Eies {{ pU440®o0� :F�� _ ..._..3:�r kaREMiwFurwlw�e.u.e 3.0 BIDE Information from Manager Williams Page 95 of 142 AGENDA ITEM #5.A. APPLICATION FOR BUILDING PERMIT lit A; AND PLAN REVIEW CITY OF KODIAK or KODIAK ISLAND BOROUGH DEPARTMENT OF BUILDING SAFETY 710 Mill Bay Road, Room 208, Kodiak, Alaska, 99615 Telephone: 907-486-8070 or 907-486-8072 Email: thansen(rzcity.kodiak.ak.us or psoro�on r„�city.kodiak.akAl Street Address of Property to be built on: 215 Mission Road Legal Address: Lot: 11A Block or Tract: 3 Subdivision or USS: Kodiak Townsite Owner Name: Alutiiq Heritage Foundation Email address: april@alutiigmuseum.org —=r _' Mailing address: 215 Mission Road City: Kodiak State: AK Zip: 99615 Telephone: Horne: 844.425.8844 Work: Cell: Architect Name: David Popiel, KPB Architects Email address: dpopiel@kpbarchitects.com Mailing address: 500 L Street, Suite 400 City: Anchorage State: AK Zip: 99501 Telephone: 907,274.7443 Architect State License Number: 106084 Engineer Name: Ellen Hamel (Reid Middleton) / Luke d Email address: ehamel@rgidmiddleton.com /6 Mailing address: 4300 B St, Suite 302 / 11301 City: Anchorage State: AK Zip: 9960 Telephone: 907.562.3439 / 907.222.1085 Engineer State License Number: T13259 / CE14384 Contractor Name: Cornerstone General Contractors Email address: mkinne@cornerstoneak.com Mailing address: 1049 W 5th Ave, #200 City: Anchorage State: AK Zip: 99501 907.561.1993 CONG35216 Telephone: Business: Cell: Contractor State License Number: Scope of Work: New Construction 0 Alteration 0 Addition 0 Demolition 0 Repair ❑ Move Grad ing-l?xcavat on or Fill or both 0 Woodstove or Fireplace ❑ Change of Occupancy Deck Provide a brief description of work to include dimensions of structure, number of stones, intended use of structure R other pertinent information for your project Application is for footing and foundation permit for the renovation and addition to the Alutliq Museum and Archeaological Repository. Project will include the construction of new footings/foundations for the addition to the existing facility, refer to attached stamped and signed construction drawings. or �vC f o""AJtaal l 5 (jLt V)9 5 L t5i— AVlS S�bwlti� e $1 zza.as —15— dg Dept Permit `-t`�" zoz;-o oleo's Alin Sutton r .14 Ant PLEASE NOTE: SUBMISSIUN OF CUMPLETE PLANS ARE REQUIRED. Page 1 of 2 Suild rrg Department Perrnttz 3.0 BOE Information from Manager Williams Page 96 of 142 AGENDA ITEM #5.A. to the c'enswcudn of the structure this application is being made for Signature -Owner or Owner s authorized agent � April Counceller, Executive Director REQU�RED INSPECTIONS Construction or work for which a permit is required shall be subject to inspection and such construction or work shell remain accessible and exposed for inspection purposes until approved For inspection cal! 486-8070, provide 24 hours notice EXCAVATION UN4ERGROUND UTILITIES WA'['ER(SEWER/ELECTRCAL FOOTING �c FOUNDATION SETBACKS ROUGH FRAMING ROUGH PLUMBMG ROUGH ELECTRICAL INSULATION VAPOR RETARDER FINAL OTHER SPECIAL INSPECTIONS/COMMERCIAL SEE CHAPTER 17, [BC Building Safety Office Use Only cndeEdurnn; 2021 IBC Dale of.Qpplrcaunn 5/912023 %oning Compliance Number CZ-2023-40 Building Permit Number 2023-175 Date /ssn d I'abrn7iun $129,548.00 Building Permit Fee 744.50 Plan Review Fee 483.93 Total Fee. 1228.43 Use and Occupancy ClasslJlcarlon Ast¢uublvGroups .4-1 ❑ A-2 ❑ A-3 0 A•4 ❑ A-5 ❑ Business Group B 0 Educational Grou11 p E 11 Building Officiat, Page 2 of 2 I hereby acknowledge that the mfarmation provided on this apphcauon is correct and I agree to oomph with ell budding codes and regulations pertaining El to Lrdustrial Groups Page 97 of 142 3.0 BOE Information from Manager Williams ALUTIIQ HERITAGE FOUNDATION ALUTIIQ MUSEUM RENOVATIONS 215 MISSION ROAD, KODIAK, AK 99615 PN: 22063.01 CONSTRUCTION DOCUMENTS -T 1 2.15.2023 ALUT110 6NSe M : KAM efM PEFSPECiNE OWNER Al . MMTUQ ME AQX POLM rOM ,�I Alutn9 21S MIEELON ROAD MlISL10• 'Coo"". ALA3KA. 90015 Pr&4&A20.00W ARCHITECT 1p9 ARCNrTECTa 000 L STRErT, aLATE 400 ANCMOPAOL AL^SKA 2 W't C}"IfTECTS rlr. Y07-274.74 3 CIVIL ENGINEER moc amoow-mNa 113M OLNC LANE ANCMDRAaE. ALASK/L ON16 WL wr.222.14= STRUCTURAL ENGINEER REM HnOL.E'TON 00o a or. surm 302 • t t 1 ANu10RA0E. r" WM � 3430 an am.s�soa MECHANICAL ENGINEER RZA E"CaM1/0No c 670 W► WWEM LANE SWE 200 ANCHORAGE. ALAWLA. 00003 v fthemin ba, Ale IM27LOO21 ELECTRICAL ENGINEER ELc eNaolma aQn OLD $SWARD SUITE 200 M ACIIQNAGLI. AIAIRA, 106t0 Ajb rx ao7.340.vrT2 COST ESTIMATOR P®co-w—mc>n L c Alt! CONSMTRq GROUP 4= 20TH AVE W. aEATnp-M/ n[ 2me a.72>2 W n O m D 0 3 v 0 D 0 3 v v CS 3 cn i I I rffi� � O r � b b '� f_LO�OR PlJ1N LEVEL 2 O%IMA l Op A I I O O 00 0 N ii«b�ALT)7 M1At ti imAV tl •.�..-dry-HMV �. -- ----- - --- 47E � 11Al ItMO �/ l.ti (AmAtl t� . `t.Ar `+IPI 1 FLOOR PUN - LEA L 1 OVERALL +--�==vOri m tAtaaaopr>, O FLOOR PLAN - SASELOC OVERALL �EA7100 AGENDA ITEM #5.A. A 20�7 =nnI QQQ—o A 5� A Recording Dist: 303 - Kodiak s 10/6/2021 10:03 AM Pages:l of 6 STATUTORY W e TH, E GRANTOR NOK BENEFITS TRUST, a Trust organized under the laws of Alaska, 2700 Gambell St, Suite 401, Anchorage, Alaska 99-103, Ur a~.d in co;.sideratiou of $1.00 and other good and valuable consideration, in lla1,LL yaru, ttta .U6rLyL MILL auur1.ro►u y of which are a%krauwiedged by ZiRAI1TvR, does hereby convey and warrant to the GRANTEE KONIAG, INCORPORATED, 3800 Centerpoint Drive, Suite 502, Anchorage, AK 99501, all of the following described real property (the "Real Property"): shown on floor plans As -Built Plat thereof filed in the office of the Recorder for the Kodiak Recording District, Third Judicial District, State of Alaska on May 12, 1995 in Book 136 at Page 742— and -Addendum thereto recorded May 22, 1995 in book 136"age 889 as amended by Consent of Members to Amendment of Bylaws recorded March 24, 2004 under Serial No. 2004-000652-0; TOGET'HEER WITH M at portion of flie basement thatas been designated as a limited common element assigned to Unit No. 2 in said Declaration; TOGETHER Wrill an ua v> interest in the genera common elements and the facilities appurtenant to said Unit No. 2 as describes in the Declaration; Said condominiums are situate on: Lot I IA, Block 3, Kodiak Townsite, according to Plat No. 87- 36. located in the Kodiak Recordine District. Third Judicial eRecorded Document Page 100 of 142 3.0 BOE Information from Manager Williams AGENDA ITEM #5.A. e Real Property conveyed hereunder is expressly conveyed by Grantor and acceptedl by Grantee in its present condition, AS -IS, WHERE -IS AND WITH ALL FAULTS, KNOWN AND UNKNOWN. Grantor makes no representation or warranty, express or implied, as to -fi_tness, use, mer_chnntahility, quality of constnirtinn, workmanship, nr otherwise except as to the warranty of title expressly set forth in this Deeri, The conveya4ce by Grantor under this Deed is also expressly made subject to all matters described in this Deed, whether or not such matters were created by, through or under Grantor, as follows: The -provisions and reservations contain Americ�Inpatented (2) mining claims; reservations or exceptions n patents -o in Acts authoriz' g the issuance thereof; water rights, water claims, and r '-t- of use, limitations o right use, or of title, as to water and/or tidelands; (4� atters set forth on, or disclosed by Plat 87-36, Kodiak Recording District, Third juuWAM Dis—­Ct' State of Alaska. (3) atters set forth on, or disclosed by Plat Number 95-10, Kodiak Recording District, Third Jud cial District, State of Alaska. Taxes or assessments or (n)-that accrue or arise In any fashion after L le date U1 `L1118 Deed or that are payable after the Date of this Deed. (5) Any rights and easements for commerce, navigation and fishery. (6) Limitations, conditions, provisions, restrictions, terms and effects of Revised Statutes 2477 including without limitation, any right or claim of right of the state or federal government and/or the public in and to the Property for right of way (whether or not such r1g12tS are s own y recor o maps in pu is recordsy e o s owing e general o on or these rig o way). (7) Any assessments relative to the NOK/KANA Commercial Condominium soda (8) Limitations, conditions, provisions, restrictions, terms and effects of the Uniform Common Interest Ownership Act, AS 34.08.010 et seq., including any liens for common expense as essments created pursuant to AS 34.08.470. (9) That Page 314. certain Basement set forth in the document recorded July 2,1996, at Book 144, (10) Lim tations, conditions, provisions, restrictions, terms and effects of that certain Condominj am Declaration reco a May 12, 1995 at Book 136, Page 742 and Addendum 2of6 2021-001988-0 eRecorded Document Page 101 of 142 3.0 BOE Information from Manager Williams AGENDA ITEM #5.A. therein rArnrrieri May 22, 1995, at Book 136, Page 889, as amended by Consent of Members to Amenhment of Bylaws recorded March 24, 2004, under serial number 2004-000652-0, includin I any assessment that may be levied pursuant to the adopted Bylaws contained in said Declaration and Addendum; thereto. -Attached hereto as Exhibit A is copy -of a letter from Kodiak Area Native Association ('KANA) wa nng certain rights set forth -in -such Declaration with regard to the transfer of the Real Property from Grantor to Grantee- (DATED this J day of Oaf . 2021. of <r -- President 1l%e rreslaent i uasuaui � � IS TO CHIMFY tha on " is�day of lX/fj Trust, a Trust organized and existing under the laws of the State of Alaska, to me known and known to Fe to be the Vice President of said Trust, and acknowledged to me that he signed the foregoing instrument freely and voluntarily for and on behalf of said Trust by authority of its organic documents for the uses and purposes therein menUoned. elFTICCIAL SEAL Elvda Steenbergen Notary Public. Stale of Alaska Iry c11111111AU141" Ap— I�j..I G When Recorded, Return To: Shane Ka>i ady, Esq. Koniag, Incorporated 3800 Cenierpoint Drive, Suite 502 Anchorage', AK 99503 1 eRecorded III 111,11l 111111111111111111 1l llllilllll l l l 3of6 2021_001988_0 3.0 BOE Information from Manager Williams Page 102 of 142 AGENDA ITEM #5.A. Re:anof July 26, 20211 Dayld Al lderW 11, V Lce Presiderll I NOK 6eneTlLs II rust 215 Mission Rd., Ste. 101 Kodiak, AK 99615 to exercise right to match offer for the purchase of HOK/KAN commercial lium Unit In response toI your July 12, 2021 notice and offer to sell Unit 2 and interest in related property i NOK/KANA Commercial Condominium pursuant to Section 19.1 of the Condominium Declaretic..._. NOK/ICANA Commercial Condominium_ I write on behalf of the Kodiak Area Native Association f KANoI to inform you that KANA will not exercise its right to match offer. If the Trust elects not to complete the sale to th"fferor, or does not close the sale within 270 days after t e�offer was made, please pry KA�urther notice. Mike Pfeffer, Acting CEO (odtak Area Native Association r ;TATE OF ALASKA J ) ss. rHIRD JUDICIAL DISTRICT i the foregoing document was acknowledged before me ;his .2In I day of July 2021 by 40tar41Public ik'and for Alaska U .Ay commission expires: 0,oe,I 2io, 7023 'W26 200 OA-4LASY,N III Ifl�l I �� 111111111 II Ill 406 2021_001988_0 Page 103 of 142 3.0 BOE Information from Manager Williams AGENDA ITEM #5.A. ASSIGNMENT For and in c eraMro-n- of the payment of $1.00 and other good and valuadbl-e-c-onside-m6w, receipt of whic Koniag, Incorpl is hereby acknowledged, NOK Benefits Trust ("NOKBT"1 does hereby quitclaim to rated ("Koniag') any and all rights and interest of NOKBT-m and to the NOK/KANA mrnerc It"mimum ssocia on, hic. Capitalized terms used erem and not o ervme defined g set forthin that c am a and Sare Agreemen a een an ag have a meanil y 12,2 as amended"). Da 1 and a First Amendment ffiereto dated September 9, e e Agreement, �er 5, . NOK BENEFITS TRUST By: David An erson, Vice President Nl�fl� i iiii 5of6 2021-001988-0 eRecorded Document Page 104 of 142 3.0 BOE Information from Manager Williams AGENDA ITEM #5.A. GENERAL ASSIGNMENT For and in consideration of the payment of $1.00 and other good and valuable consideration, is hereby acknowledged, NOK Benefits Trust ("NOKBT"} does hereby quitclaim to receipt of whi Koniag, In oeated "K nia _ " and all rights and interest of NOKBT in and to (0 all personal roe belon ing to NOKBT located upon the Real Property belonging to NOKBT • ii an development rights, entitlements utility capacity, ovennmental approvals, licenses ermits or similar documents rels ting to the Real Pro iii any warranties ties indemnities and claims related to the Real Property; (iv) all plans, drawings, specifications, operating manuals, instructions, books and records with r I pect to the existing, current or planned development, design and construction of the Real Property; and (v) all other items of intangible personal property that relate in any way to the ownership, development, construction or operation of the Real Property (collectively, the "Intangible Property"); provided, however, NOKBT makes no representation or warranty that any Intangible Property exists, or to the extent that any Intangible Property exists, that NOKBT owns such Intangible Property or that NOKBT can transfer its rights in such Intangible Property to NOKBT, it being agreed that any assignment of Intangible Property shall be made on a quitclaim basis. Capitalized terms used herein and not otherwise defined have the meaning set forth in that certain Purchase and Sale Agreement between NOKI T and Koniag dated July 12, 2021 and a First Amendment thereto dated September 9, 2021 (the "Purchase Agreement, as amended"). Dated October 5, 2021. NOK BENEFITS TRUST By: David An erson, Vice President m rtum mr u�runu i m III Illllllllll Illlllllllllll &offs eRewrded Moument 2021-001988-0 �I i Page 105 of 142 3.0 BOE Information from Manager Williams AGENDA ITEM #5.A. 1 n 20 00 — ording Dist: 303 - Kodiak s 11/1/2021 02:14 PM Pages: 1 of 6 K , n Illllll IIII IIIIIIIIIIIIIIIIIIIIIIIIflllllilllllllllllll QUITCLAIM DEED THE GRANTOR KONIAG, INCORPORATED, an Alaska corporation 3800 Centerpoint Drive, Suite 502, Anchorage, AK 99503, as a gift, hereby conveys and quitclaims to the GRANTEE ALUTIIQ HERITAGE FOUNDATION, an Alaska nonprofit corporation, 215 Mission Road, Kodiak, AK 99615, and to the Grantee's successors and assigns, forever, all of the Grantor's right, title, interest, estate, and claim in and to all of the following described real property (the "ReatFrope it being intended that after4his gib conveyance, Grantee shall own a full one hundred percent (100%) interest in and to the following described real property located `h- ""-'-'' udieial District, State of askai subject only to the reservations stated herein: Unit No. A Commercial Condominium, as shown on oor p As-BuiifPlat thereof, filed in the office of the Recorder for the Kodiak Recording District, Third Judicial District, State of Alaska, on May 12, 1995, under Plat No. 95-10 ("Plat % and identified in the Declaration recorded May 12i 1995 in book 136 at page 742 e'Declarationl and Addendum thereto recorded May 22,1995 in book 136 at page 889 as amended by Consent of Members to Amendment of RvIaws recorded March 24. 2004 under Serial No_ 2004 000652-0; TOGETHER WITH that portion of the basement that has been designated as llniitcd %uiiuiAurl cieciiciit aSSi�ricA t0 . 2 in said Declaration; TOGETHER WITH an un iv o i—nterest is time general common elements and tlie aci i -es appurtenant o said ni o. 2 as described in the Declaration; Said condominiums are situate on: eRecorded Document Page 106 of 142 3.0 BOE Information from Manager Williams AGENDA ITEM #5.A. Lot 11A,131ock 3, Kndinl- Tnxvncite, nre-nrding to P1atNo. 87- 36, located in the Kodiak Recording District, Third Judicial ri;L.+,;^+ a+.,+o,.fnr^�v., LfAUlI. L, l)LLLLV Vl AIGJL�0.. SUBJECT TO ALL reservations, easements, exceptions, restrictions, covenants, conditions, . L r and rights -of -way of record, if any. privileges thereunto belonging or in anyway appertaining, and all the right, title, interest, estate and claim,whatsoever of the said GRANTOR to use and benefit the GRANTEE, its successors and assigns forever. The Real FAULTS, KNOWN AND UNKNOWN. Grantor makes no representation or warranty, express or implied, aS to fitness, use, merchantability, quality of -construction, wodan ship or otherwise except as to the warranty of title expressly set forth in this Deed. The co.^.veyance by Grantor under this Deed is also expressly made subject to all matters described in this Deed, whether-or�not such matters were created by, through or under Grantor, as follows: (1) The provisions and reservations contained in the Patent from the United States of (2) Unpatented mining claims; reservations or exceptions in patents or in Acts authorizing the issuance thereof; water rights, water claims, and rights of use, limitations on right use, or of title, as to water and/or tidelands; District, State of Alaska. (3) Matters set forth on, or disclosed by Plat Number 95-10, Kodiak Recording District, - Third Judicial Distri^t State of Alaska. (4) Taxes or assessments or (ii) that accrue or arise in any fashion after the date of this Deed or that are payable after the Date of this$eed. (6) Limitations, conditions, provisions, restrictions, terms and effects of Revised Statutes 2477 including without `limitation, any right or claim of right of the state or federal government and/or the public in and to the Property for right of way (whether or not such rights are shown by recordings of maps in public records by the State of Alaska showing the general location of these rights of way). eRecorded Documer t 2of6 2021-002112-0 3.0 BOE Information from Manager Williams Page 107 of 142 AGENDA ITEM #5.A. assessments relative to the NOKfICANA Commercial Condominium Association, (8y-Lin itations, conditions, provisions, restrictions, terms and effects of the Uniform (9) That certain Easement set forth in the document recorded July 2, 1996, at Book 144, Page 314. (10) Limitations, conditions, provisions, restrictions, terms and effects of that certain Condominium Declaration recorded May 12, 1995 at Book 136, Page.742 and Addendum thereto recorded May 22, 1995_ at Book 136, page 889, as amended by Consent of Members to Amendment of Bylaws recorded March 24, 2004, under serial number 2004-000652-0. including any assessment that may be levied pursuant to the adopted Bylaws contained �^ said Declaration and Addendum thereto. By: / !. gh—auna : He na, President State of Alaska ) 1� Third Judicial District THIS IS TO CERTIFY that on this � day of a., 20A, before me, the undersigned, a Notary Public inland for the State of Alaska, duly commissioned and sworn, personally appeared SHAUNAZ—HEONA,-he—President ef- -Koniag, Inc., a co' j,oration organized and existing under the laws of the State of Alaska, to-mE ;',own and known to me to be the President of said Corporation, and acknowledged to me that she signed the foregoing instrument freely and voluntarily on behalf of said Corporation for the uses and purposes expressed pursuant to its bylaws or a resolution of its Board of Directors. STACEY SiMMONS Notety Public State of Alaska My Commission Expires cciober 04, 2023 eRecorded Document 1 Notary Public My Commission Expires: t/ 11111111111,i111111!11E 1111 3 or 6 2021-002112-0 Page 108 of 142 3.0 BOE Information from Manager Williams AGENDA ITEM #5.A. THE GIFT DESCRIBED ABOVE IS ACCEPTED BY ALUTIIQ HERITAGE FOUNDATION. ALUTIIQ HERITAGE FOUNDATION By: et Roberts, Boaru Cnarr fate of Alaska ss. Third Judicial District ) • THIS IS TO CERTIFY that on this day of 1f. 20_, before me, the undersigned, a Notary Public in and for the State of Alaska, duly commissioned and sworn, personally appeared , the � of Alutiiq Heritage Foundation, a nonprofit corporatiA organized and enisting under the laws of the State of Alaska, to me known and known to me to be the � ;�; of said nonprofit corporation, and acknowledged to me that she signed the foregoing instrument freely and voluntarily on behalf of said nonprofit corporation for the uses and purposes expressed pursuant to its bylaws or a resolution of its Board of Directors. c - Notary Public Y My Commission Expires: o� When Recorded, Rehirn To: STACEY SIMMONS Shane Kanady, Esq. Notaty.Publla Koniag Incorporated g r stato of Aiaeica u., r..Mwnlaalnn wn�lfwA � 3800 Centerpoint Drive, Suite 502 October04, 202:..•an•.v� Anchorage, AK 99503 i uwununm 4of6 eRecorded Document 2021-002112-0 Page 109 of 142 3.0 BOE Information from Manager Williams AGENDA ITEM #5.A. GENERAL ASSIGNMENT As a gift, Koniag, Inc. ("Konia '¢ " does hereby quitclaim to Alutiiq Heritage Foundation " liny and all rights and interest of Koniag in and to (i) all Personal Property -and Improvements belonlug to Koniag Located upon the Real Propertya onging to Ko-m-ag; an a Intangible rop re a to the Real Property, Personal Property, and Improvements; provided, however, Koniag makes no representation or warranty that any Personal Propert34 Improvements, or Intangible Property exists, or to the extent that any Personal Property, Improvements, or Intangible Property exists, that Koniag owns S11ch Personal P . erty, Improvements, or Intangible Property or that oWag can transfer its rights in su h Personal p-o—p--. ,TImpmvements,-or- Intangible Prop' to HF, "ei .g agreed -that any assignment of Personal Property, Improvements, or uitclaim basis. Capitalized terms used herein and not otherwise defined have the meaning set forth in that certain Donation Agreement between Koniag and AHF dated 06tober2 ,% 2021. Dated October27, 2021. KONIAG, C. ---ByI a �n Tieona- Presiclent -Dated:—n f- 2' 7 Q?f THE GIFT DESCRIBED ABOVE IS ACCEPTED BY ALUTIIQ HERITAGE FOUNDATION. ALUTIIQ HERITAGE FOUNDATION By. �. M aret erts, Board Chair Dated: to �IIIIIIIIIII �If�l�ll!I 5of6 eRecorded Document 2021-002112-0 Page 110 of 142 3.0 BOE Information from Manager Williams AGENDA ITEM #5.A. ASSIGNMENT Inc. { " does herebby quitclaim to Alutiiq Heritage Foundation interest of Koniag in and to the NOIUKANA Commercial Condominium KONIA.G, INC._ By: n rana PrPsiAenf —Dated: THE GIFT DESCRIBED ABOVE IS ACCEPTED BY ALUTIIQ HERITAGE FOUNDATION. ALUTIIQ HERITAGE FOUNDATION Dated: (p eRecorded Document Iii I I 6of6 2021-002112-0 Page 111 of 142 3.0 BOE Information from Manager Williams AGENDA ITEM #5.A. CG&IL CASHION GILMORE & LINDEMUTH January 15, 2025 Seema Garoutte, Assessor Kodiak Island Borough 710 Mill Bay Rd. Kodiak, AK 99615 sp,aroutte@kodiakak.us RE: Alutiiq Heritage Foundation Property Tax Exemption - 2024 Motion for Reconsideration — Response to Information Request Dear Assessor Garoutte: This letter and its attachments are in response to your email of December 30, 2024 requesting additional information after the Alutiiq Heritage Foundation reconsideration hearing. Please consider Dr. Counceller's attached statement as evidence, supplementing her testimony at that hearing. We are also sending you a Dropbox link to additional documents in response to your request. Sincerely, /s/Jahna M. Lindemuth Jahna M. Lindemuth, Partner iahna(& .cashioneilmore.com (907) 222-7932 (main) (907) 339-4966 (direct) (907) 222-7938 (fax) Attachments cc: Dr. April Counceller 510 L Street, Suite 601 • Anchorage, Alaska 99501 (907) 222-7932 • www.cashiongilmore.com Page 112 of 142 3.0 BOE Information from Manager Williams AGENDA ITEM #5.A. Statement of Dr. April Counceller in Response to KIB Assessor December 30, 2024 Request For Additional Information Re Tax Exemption for Alutiiq Heritage Foundation January 15, 2025 1. A copy of the lease that AHF had with NOK Please see provided documents: Koniag and NOK lease and lease assumption by the AHF. Financials broken out by programs for income and expense. Audited financials for 2022 and 2023 as well as Interim unaudited 2024 financials are provided. Out of the 2022-2024 years requested by the assessor, our organization had an overall net loss in 2022 and 2024 (i.e., a "negative profit margin"). FY 2023 shows a net financial gain, primarily due to restricted grant revenues tied exclusively to the renovation project. Despite 2023 showing a financial net gain for the organization, contract expenses exceeded revenues by an estimated 15%. As described in our reconsideration meeting, the museum does not do its accounting by "program." Our small staff works across all "programs." Our projects similarly span what you might call "programs," and C we perform archaeology work associated with our mission that is funded by both grants and contracts. The program revenue showing in our audited financials is from contracts. Please note that these contract revenues typically are generated by multiple topic areas (archaeology, education, exhibits, collections care, language revitalization, arts) and include pass -through grants (see later description of pass -through grants). We record revenues for each project separately and those are accounted for generally in "contracts." Without completely redoing our accounting for the last three years, we cannot break out revenues by each topic area, such as archeology contracts. AHF uses a respected outside bookkeeping firm and a contract CFO to ensure our financials are accurate. Additionally, we undergo an outside financial audit annually. A professional, accredited museum is expensive to run, and we are proud to have met the standards for national accreditation as well as state certification as a repository. As explained in the attachment, archeology work is critical to why AHF was created and is central to our mission. We only take on archeology contracts in this region that are central to our mission and these funds help subsidize and keep open the museum and repository. If an individual project has a positive net margin, these funds help to pay for other mission -related projects or operational costs. For example, if an individual project earns more than the direct plus indirect costs of completing the project, those funds help to pay for things like: Answering public questions about Alutiiq history or language, responding to a borough department to provide guidance on an inadvertent discovery of human remains, electricity for collections climate control, free public presentations, helping researchers study our collections, sharing policy documents with other local and state museums, and completing grant activities and reporting on the many grants that do not pay for administrative staff time. Sadly, the majority of projects don't pay Page 113 of 142 3.0 BOE Information from Manager Williams AGENDA ITEM #5.A. C for their own full costs, so we subsidize both grants and contracts with other sources of revenue such as donations, investment income, and earnings from some contracts. Our federally -negotiated indirect rate (also known as overhead) is currently 39.77%. An individual project has a positive net margin if the total direct costs plus the indirect rate is less than the income. For example, if a contract had direct costs of $100, the total real cost of the project to our organization is $139.77. Income on the project would need to exceed $139.77 to have a positive net margin. Our federally -negotiated indirect rate signed agreements are provided. Our 2024 agreement is still in negotiation. 1. Copies of any contracts for archeological review work for 2022, 2023 and 2024 by year, including revenue and expense to provide the services under those contracts. After a reasonable due diligence search for archeology -related contracts from 2022-24, contracts that are available are provided. Provided audited financials show "program" income —these are revenues from various contracts —but are not limited to archeology contracts. Please note that program expenses in the audited financials include combined grants and contracts. Our auditors combine these expenses in reporting, as both grants and contracts are valid and legal income sources for our mission -related work. C Many of our contracts are pass -through grants with tribes. Pass -through projects (permitted by federal funding by agencies like the BIA) are grants to tribes, who then contract the entire project to the Alutiiq Museum. These pass -through projects have grant agreements typically limiting our overhead billing to 10%. This is only a portion of the actual cost to our organization, meaning that these projects lose up to 29% of project cost per contract rather than generating positive net revenues. "Open" contracts for as -needed services often do not have official contracts but are done at cost on an as -needed basis. Most of these are reimbursed at cost, generating no earnings or loss. Some of our contracts are signed and completed within a year. Many others are multi -year projects, making it inaccurate to consider profitability by year. Under nonprofit GAAP accounting, for some contracts we must recognize all income in the year awarded. Work completed in subsequent years is funded by savings. Other contracts recognize revenue as work is completed. Our contract CFO, who is also an auditor and auditor trainer, identifies the revenue recognition requirements for each project. We are providing audited financials for 2022 and 2023, as well as Jan -Nov 2024 interim financials which is the best most recent information available but please note that it is unaudited and therefore subject to adjustment. 2. The space in the building used for work in fulfillment of those contracts As described in our reconsideration meeting, archaeology work is not conducted within the facility, but out on the land. It is inaccurate to say that income is generated by our facility for archaeology work. The Page 114 of 142 3.0 BOE Information from Manager Williams AGENDA ITEM #5.A. C income is generated by our employees' labor, not by the space they occupy when working in office. As such, use of KIB 3.35.030 A 3. a , excerpted in the assessor's email, to try to establish taxable revenue for archaeology work would be inappropriate, and could be used to say that any income the museum receives while occupying our facility would make us taxable, making the definition of a non-profit impossible to achieve. Also as described in our hearing, no individual staff member works 100% on archaeology, and because only some archaeology is done by contract, and because all archaeological contracts involve other types of mission -related work such as collections care, development and delivery of educational materials about scientific discoveries (in conjunction with previously gathered archaeological evidence), the apportionment of square footage designated only to archaeology is negligible. Molly Odell and Patrick Saltonstall are the staff members who work the most on archaeological contracts, but they do not spend 100% of their time on contracts or on archaeology. Due to the museum's diverse workload, supported by a variety of contracts worked on by multiple staff, it is difficult if not impossible to develop a computation that would accurately identify archaeology revenues attributable to specific square footage. In 2024, 1 estimate about 16% of all staff time was spent on contracts, and under 10% of all staff time was on archaeology -focused contracts. In 2023, 1 estimate 20% of all staff time was on contracts, and under 10% of that staff time was archaeology -focused. C3. Whether that work continued during the museum closure Yes, contract work continued during the renovation closure. 4. Any mission statement that could clarify the relationship between the gift shop and the museum purpose and the relationship between the archeological work and museum purpose. The testimony addressed that they were related, but if you had some sort of mission statement or purpose statement for pursuing that work, I would appreciate a copy for my files and where on your website you have that. The Alutiiq Museum's mission is to preserve and share Alutiiq/Sugpiaq heritage and living culture. This applies to the culture and history of our people at all times over than past 7500 years. Our organization's name is Alutiiq Museum & Archaeological Repository, a direct indication that archaeology is a core and long-standing part of our work to preserve and share Alutiiq heritage and living culture. Please see the separate document entitled "Archaeology Ties to Mission" for additional history and explanation. Any work done by our non-profit is related to our mission. We do not have the mandate from our board, desire, or capacity to do non -mission -related work. That would be contrary to our organizational goal and threaten our accredited status. Additionally, any contract work must be mission -related, as if not it Page 115 of 142 3.0 BOE Information from Manager Williams AGENDA ITEM #5.A. l would be considered subject to Unrelated Business Income Tax (UBIT) in the same way that our store sales would be if our merchandise was not mission -related. We continue to be designated as a 501(c)(3) nonprofit by the IRS, and by the State of Alaska, as well as the City of Kodiak. • See page 8 of the 2022 Audit provided in the original application for a general discussion of the museum's mission. • See the programs PDF excerpt from our 2024 application (previously provided, but attached here again). Page 1 is a description of our archaeology and collections work. The top section in italics explains the importance of our archaeology work for our Alutiiq/Sugpiaq culture and Kodiak community. Subsequent pages outline other aspects of our nonprofit mission work. Page 2 "Alutiiq Arts and Artists" shares information about our store, including the arts authentication "Alutiiq Seal" certification work. The top section in italics describes nicely how critical our store is in supporting Alutiiq cultural survival. Please see the previously provided statement about the store and its mission -related work. • To find information supporting these statements and documents on our website, visit http://Alutiigmuseum.org. On the top menu under Museum, select About to see our mission. Select Archaeology to learn about archaeology. Regarding the store's programs — please refer to C the "Alutiiq Arts and Artists" handout provided in our 2024 application, and previous testimony and materials submitted about the store. Additionally you can view the artist services page of our website at https://alutiigmuseum.org/museum/artist-services/for-artists/. Page 116 of 142 3.0 BOE Information from Manager Williams AGENDA ITEM #5.A. Archaeological Research at the Alutiiq Museum & Archaeological Repository 1. A Foundation in Archaeology In the spring of 1995, eight Kodiak Alutiiq organizations joined to establish the Alutiiq Museum and Archaeological Repository (AMAR). The Kodiak region has one of Alaska's richest archaeological records. A cool wet climate and large prehistoric populations combined to preserve more than two thousand ancestral sites. These cultural resources represent over 8% of Alaska's currently recorded sites in an area that makes up less than 1% of Alaska's land mass. Importantly, many of these sites are well preserved. They hold the remains of sod homes, smokehouses, ceremonial buildings, and burials, as well as tools made of stone, bone, and even wood. Tragically, clean-up efforts following the EXXON-Valdez Oil Spill (EVOS) irreversibly damaged over a hundred sites. Some were oiled. Others were vandalized —looted by beach crews who dug holes in deposits and stole artifacts during and after the clean-up. To mitigate this damage, the Kodiak Area Native Association received a $1.5M grant from the EVOS Trustee Council to create an archaeological repository. Their project was "dedicated to the preservation of cultural resources, traditional Native culture, and the education of the public" (KANA 1993). The new repository would serve as a home for artifacts from the spill area, support archaeological surveys and excavations to document sites, and educate the public about Alutiiq heritage and the importance of preserving cultural resources. AMAR grew from this effort. Archaeological programs were a cornerstone, fundamental to the founding of the non-profit museum. This focus is expressed in our name and founding documents. These were adopted by its governing organization, the Alutiiq Heritage Foundation Board of Directors (AHF), on April 6, 1995 (AHF 1995) as follows: Name: Alutiiq Museum & Archaeological Repository Mission Statement: The mission of this organization is to preserve the prehistoric and historic traditions of the Alutiiq people and to promote a greater public awareness of the rich cultural legacy which the Indigenous peoples of the greater Gulf of Alaska region —the Alutiiq, Aleut and Indian —have bequeathed to all. In pursuit of these goals, this organization will collect archaeological, ethnological, and archival materials from the Alutiiq culture area, and preserve these collections in a repository which will be open to the public. This organization will also encourage research on Alutiiq culture history, and disseminate the results of this research to the public through museum exhibits, publications and scholarly presentations. Articles of Incorporation: The Alutiiq Heritage Foundation will govern the Alutiiq Museum and Archaeological Repository, dedicated to preserving the prehistoric and historic traditions of the ( Alutiiq; to encourage research on Alutiiq culture history, and to disseminating the results of the Prepared by the Alutiiq Museum and Archaeological Repository, January 1015 Page 117 of 142 3.0 BOE Information from Manager Williams AGENDA ITEM #5.A. f Archaeological Research l at the Alutiiq Museum & Archaeological Repository l research to the public. The Alutiiq Museum seeks to promote public awareness of the rich cultural legacy which the Indigenous peoples of the Gulf of Alaska region —the Alutiiq, Aleut, and Indian —have bequeathed to all who visit or reside among them. The Corporation is organized for the purposes of public edification and is operated exclusively for charitable, educational, scientific, and literary purposes, within the meaning of Section 501(c)(3) of the Internal Revenue Code of 1954 (or corresponding provisions of any subsequent Federal tax laws). Prepared by the Alutiiq Museum and Archaeological Repository, January 2025 Page 118 of 142 3.0 BOE Information from Manager Williams AGENDA ITEM #5.A. Archaeological Research at the Alutiiq Museum & Archaeological Repository 2. Archaeology Programs In nearly thirty years of operations, AMAR has closely followed its board -established mandate to preserve the deep history of the Alutiiq people by conducting and supporting archaeological research, caring for archaeological collections, and sharing Kodiak archaeology and Alutiiq history with the public. Native people have lived in the Kodiak region for about seventy-five hundred years. People from other cultures began settling here about 260 years ago. This means that 7,240 years of Kodiak's human history, 96.5%, belongs exclusively to the Alutiiq people. It also means that much of Alutiiq history is unwritten. The record of the Alutiiq past lies in Kodiak's archaeological sites. The Alutiiq Museum preserves and shares this history through its programs. Surveys and Excavations To enrich the documentation of Alutiiq history, the museum conducts archaeological research and supports visiting researchers. As cultural resources belong to the owners of the lands on which they occur, this work is always done in partnership with federal, state, municipal, Native, and private landowners. All Alutiiq Museum archaeology is question -based and tied to historic preservation. We design research to test hypotheses about the Alutiiq past and to record information threatened by coastal erosion, digging bears, looting, or development. Although Kodiak has a rich archaeological record, this record is widely impacted by natural and human forces. In 1995, much of Kodiak's coastline had never been visited by an archaeologist. Thirty years later our research has documented over a thousand sites and given land managers valuable information to protect Alutiiq history buried in the ground. It has also significantly expanded our understanding of the Alutiiq past —filling gaps in the ancestral timeline, documenting the development of ingenious technologies, recording interactions with neighbors, illustrating the evolution of our artistic traditions, and dispelling hurtful stereotypes about the origins and abilities of our people. Collections Care & Research The collections that result from archaeological research are large and varied. AMAR currently cares for more than 162,000 artifacts as well as tens of thousands of photographs, maps, and videos documenting archaeological finds. These materials are the Alutiiq library and they are available for study by anyone. With an appointment, any student, researcher, artist, educator, or member of the public can receive individualized support from one of our staff members to access these collections. This happens regularly. Importantly, our holdings include rare collections with unique scientific and spiritual value —a large set of 500-year-old wooden objects preserved in a waterlogged site; tools left by some of Kodiak's first settlers 7,300 years Prepared by the Alutiiq Museum and Archaeological Repository, January 2025 Page 119 of 142 3.0 BOE Information from Manager Williams AGENDA ITEM #5.A. Archaeological Research at the Alutiiq Museum & Archaeological Repository ago; images and maps of rare rock art sites. Most of these collections don't belong to the Alutiiq Museum but are loans entrusted to our care. Additionally, every major landowner in the Kodiak region signed has an agreement that allows AMAR to accept artifact donations of uncertain origin and use them for public education. In short, we are a community repository. Education Archaeological research and collections fuel the museum's ability to tell the Alutiiq story. Every archaeological project is an opportunity to learn about the Alutiiq past and every project includes public outreach. The museum does not conduct archaeological research independently of its educational mission. We share the results of surveys and excavations on our website (https://alutiigmuseum.org/museum/archaeology/) and through social media posts, email broadcasts, and newsletter articles that reach hundreds. Additionally, free public lectures connect our audience with scientists, and conference presentations, technical reports, and journal articles help the scholarly community learn about Alutiiq history. We create a record of Alutiiq history with every project and use that knowledge to grow public awareness. From a broader perspective, the finds from ancestral sites provide unique objects for C displays and publications. The exhibits planned for our new exhibit hall will include hundreds of artifacts and interpretations gained from our research. Our mobile museum display travels around the archipelago to schools, camps, and events, with artifacts from our teaching collection. Our publications make artifacts accessible for study and enjoyment, and they expand understanding of Kodiak's past. A 2024 book published by the museum features a summary of Alutiiq history that begins with archaeological finds. Two chapters explore deep Alutiiq history based on the museum's research and share many photos and illustrations. This professionally produced book was distributed for free to Kodiak schools and libraries and can be downloaded for free from our website (https://aIutiigmuseum.org/museum/publications/#imaken). This publication is an example of how the museum transforms archaeological research into publicly accessible information, and it is it one of many examples. Finally, our public outreach always includes messaging about historic preservation (https://alutiigmuseum.org/museum/archaeology/historic-preservation/). When people understand that recreational digging is illegal and disrespectful, and when they know that artifacts are not curious but ancestral tools that can teach lessons, they become advocates for preserving the past. This benefits people of every heritage in our community. 3. References Alutiiq Heritage Foundation (AHF) Prepared by the Alutiiq Museum and Archaeological Repository, January 2025 Page 120 of 142 3.0 BOE Information from Manager Williams AGENDA ITEM #5.A. Archaeological Research at the Alutiiq Museum & Archaeological Repository 1995a 1995.4.6 Agenda. On file Alutiiq Museum and Archaeological Repository, Kodiak Board Archive, AM 1039. 1995b 1995.4.6 BOD Meeting Minutes. On file Alutiiq Museum and Archaeological Repository, Kodiak Board Archive, Kodiak Area Native Association (KANA) 1993 Alutiiq Archaeological Repository Center (93066), Detailed Project Description. Submitted to the EXXON-Valdez Oil Spill Trustee Council, September 21, 1993. On file Alutiiq Museum and Archaeological Repository, Kodiak, Board Archive, AM1039. Prepared by the Alutiiq Museum and Archaeological Repository, January 2025 Page 121 of 142 3.0 BOE Information from Manager Williams AGENDA ITEM #5.A. A1UtIIC� MUSEUM_I ARCHAEOLOGICAL REPOSITORY number of archaeological sites in the regin Archaeological sites are the Alutiiq library. They represent the only record, for all time, of deep ancestral traditions. Each time a site is vandalized or destroyed, our history is lost. Caring for ancestral sites is as important as caring for artifacts in our tribal repository. The Alutiiq Museum works to locate, describe, and monitor sites, care for archaeological collections, study Alutiiq history, and develop A A educational resources that promote historic preservation. d percent of all sites fraction of Kodiak in Alaska found in sites that are _fhe_.ancestral Alutliq Archaeological Collections • 162,282 historic and prehistoric artifacts spanning 7500 years • 37i archaeological collections, representing over 400 sites • Teaching collection with 2574 hands-on artifacts • Since 1995, the size of our archaeological collections has tripled Site Stewardship Since 1998 our professional archaeologists have monitored sites throughout the archipelago with the help of volunteers. Program statistics include: • 1659 site visits • 12 program newsletters • 812 unique sites studied • Educational videos & brochures • 547 new sites documented • Mailings to fisheries permit holders • 68 volunteers and harbormasters Research We have active archaeological research and cultural resource management programs. Since i995, we have completed: • 88 archaeological surveys • Research collaborations with • 20 site excavations agencies, businesses, and tribes • 5 books . Repatriation of hundreds of ancestral • i3 journal articles and essays remains . 57 technical reports • Field and laboratory support for • 2 video series numerous researchers alutiigmuseum.org • 215 Mission Rd., ist Floor, Kodiak, AK 99615.844-425-8844 Page 122 of 142 3.0 BOE Information from Manager Williams AGENDA ITEM #5.A. Alutilq MUSEUM ARCHAEOLOGICAL REPOSITORY By supporting artists of all ages and skills, the Alutiiq Museum helps Alutiiq people live their culture. Our programs grow knowledge of the arts through access to ancestral objects, mentorship, and hands on learning. Our museum store helps artists make a living through their creations and continue to create. An online store compliments our gallery store, sharing Alutiiq arts with patrons worldwide. h ftp://alutiigmuseumsfore. org. Left: Golden -crowned sparrow mask by Lena Amason Berns Au iq Museu' ore Facts . Premier outlet for Artists selling 8 Producf nspired Kodiak Alutiiq artwork consi,nin,g,annually Alutiiq heritage Arts Education • Arts workshops for all ages —online and in -person • Artist demonstrations for locals, tourists, and online audiences • Craft Saturday & First Friday art and culture events • Training and resources to help educators add arts to curricula • Opportunities to study ancestral collections at home and aboard Museum Store Artists put many hours and materials into their creations, but it's not enough to make beautiful pieces. To continue creating, they must sell their works. The Alutiiq Museum Store helps artists navigate the arts market with the resources, knowledge, and connections to move from the studio to the marketplace —contributing to local economic development. I `A T Alutiiq Seal Certification QJ oe%p Only Alutiiq artists registered with the museum can label their artwork with the Alutiiq Seal logo. The emblem is a mark of oauthenticity. When you see the Alutiiq Seal attached to a piece of artwork, you can be certain that it was crafted by an Alutiiq artist. q NATIVE�PO Launched in 2020 this program now supports 39 Alutiiq artists. ShopLocal #ShopAlutiiq alutiigmuseum.org • 215 Mission Rd., ist Floor, Kodiak, AK 99615.844-425-8844 Page 123 of 142 3.0 BOE Information from Manager Williams AGENDA ITEM #5.A. v4t � AUtilq MUSEUM ARLHAWLUGICAL REPOSITORY The Alutiiq Museum & Archaeological Repository cares for objects that reflect the Alutiiq experience —from the history of ancestors to modern expressions of heritage in contemporary art. These collections are from across the Alutiiq world, with a focus on the Kodiak region. Our secure, climate controlled facility, built with EVOS Trustee Council support, provides space to care for, study, and share objects that reveal the Alutiiq story. 8 items in the Average number of Projected 25 year Museum's Care objects added annually growth in objects Other 3.2% Overview • Rare assemblages of bone and wood objects from archaeological sites spanning 7,500 years of Alutiiq history • Photographs of the Alutiiq world from 1872 to the present • A contemporary art collection of 146 pieces developed with funding from Rasmuson Foundation • Collections loaned by Alaska Native Corporations, federal , agencies, State of Alaska, Kodiak municipalities, and individuals Accreditation Collections care is the cornerstone of our work. Our program is formally certified at both the state and national level and recognized as an example for others. • Accredited by the American Alliance of Museums since 2011. We are one of 7 accredited museums in Alaska and the second accredited tribal repository in America. • Recognized by the State of Alaska as an official Natural and Cultural History Repository since 2oi5. • Winner of a Guardians of Heritage award from the Association of Tribal Archives, Libraries, and Museums, 2016. alutiiqmuseum.org • 215 Mission Rd., ist Floor, Kodiak, AK 99615.844-425-8844 Page 124 of 142 3.0 BOE Information from Manager Williams AGENDA ITEM #5.A. AOtiiq MUSEUM ARCHAEOLOGICAL REPOSITORY l The Alutiiq Museum welcomes all people to its accessible facility to explore and celebrate the cultural traditions of the Alutiiq people. Through public education we enhance awareness of Kodiak's X�� �-A t q remarkable cultural heritage, promote understanding of Alutiiq ��. sA( traditions, and create a stronger community. Partnerships with tribes, FIle educators, agencies, and the media help us reach many people. Social media extends our impact across Alaska and beyond. Alutiiq 1111111MIUMbim Audience Facts Residents of 7 K-ia Students Federally Recognized Island Communities in 12 schools Tribes with over -...,jgjl&4,000 members Programs & Events • Document and teach the Alutiiq languages in partnership with Elder speakers and an island -wide language advisory committee • Partner with educators to teach Alutiiq culture in schools • Pair experienced and developing artists to study Alutiiq arts • Involve community members in archaeological research Exhibits • Explore Alutiiq history from the distant past to the present with ancestral tools, historic photographs, and artwork • Teach about the Alutiiq language, technology, subsistence, family life, spirituality, and art to in -person and online audiences • Share ancestral objects returned to Kodiak for study • Provide hands-on activities for all ages Books & Resources • Books that tell Alutiiq stories, share museum collections, teach the Alutiiq language, and feature artwork & artifacts • An extensive website with resources for cultural research • Nine traveling education boxes available for free checkout • A weekly cultural lesson shared via radio, newspaper, and Internet • A mobile museum that brings artifacts to community members alutiigmuseum.org • 215 Mission Rd., ist Floor, Kodiak, AK 99615.844-425-8844 Page 125 of 142 3.0 BOE Information from Manager Williams AGENDA ITEM #5.A. AIUtllq MUSEUM ARCHAEOLOGICAL REPOSITORY P°"" The Alutiiq Museum infuses all of its programs, exhibits, and (CJd r Wa publications with Alutiitstun, the traditional language of the Alutiiq d people. We work with Elder Alutiiq speakers to document the language, support community efforts to preserve and share Alutiitstun, ° created resources for language eduction, and maintain a large archive tan8�� r'� of Alutiiq language recordings. a Niuwacirpet Silukarpet.—We are proud of our language. mill La uage t .jen Ways of Speaking gs of tgua9 Kodiak Alutiitstun Alutiiq Speech Alutiiq Speakers f Documentation Through regular meetings and special projects, we work with Elder 4 a� Alutiiq speakers to record Alutiiq vocabulary, add Alutiiq phrases to museum resources, answer translation requests, develop new words, write language learning lessons, and create publications that feature Alutiiq terms. Education We support language instruction at many levels, from assisting with materials development for an Alutiiq culture daycare to working with students on an occupational endorsement in Alutiiq language offered at Kodiak College. With our help, Alutiitstun learners meet weekly to practice speaking. Resources • Online language learning resources - www.alutiigIanuage.org • Print and digital publications with Alutiiq vocabulary • Traveling language education box • Interactive language gallery and online language exhibit • Weekly language podcast, radio broadcast, and newspaper feature • Website with hundreds of recordings of Alutiiq speech alutiiqmuseum.org • 215 Mission Rd., ist Floor, Kodiak, AK 99615.844-425-8844 Page 126 of 142 3.0 BOE Information from Manager Williams AGENDA ITEM #5.A. vT Alutllq MUSEUM ARCHAEOLOGICAL REPOSITORY This city park in downtown Kodiak honors the Alutiiq people, Alutii-q Kodiak'sfirst residents. It introduces visitors to Native history and Atribal efforts to repatriate the remains of ancestors. It was developed (� Ancestoin 2019 by the Alutiiq Museum in partnership with the City of Kodiak Memorial with guidance from a community advisory committee and over $200,000 in support from hundreds of community members. Alutiiq Ancestors' Memorial Facts VA :. acres in Park Supporters o Repatriated downtown Kodiak ail heritages ancestors honored Park Development • Land provided by the City of Kodiak • Designed and developed by the Alutiiq Museum • Built with support from individuals, businesses, and tribes • Features a memorial planter, benches, educational signs, a walkway with engraved bricks, and an archway Community Messages People of all heritages expressed their support for the park by purchasing engraved bricks. Community members, tribes, businesses, and organizations added their names to the memorial, remembered loved ones, and shared personal messages. Repatriation Signs in the park explain Alutiiq history and efforts to repatriate the remains of ancestors taken by researchers and collectors. An archway over the park walkway features 1239 salmon cutouts. Each fish represents the remains of an ancestor returned to Kodiak for reburial. Fish are added to the archway as repatriations continue. alutiiqmuseum.org • 215 Mission Rd., ist Floor, Kodiak, AK 99615.844-425-8844 *� Page 127 of 142 3.0 BOE Information from Manager Williams AGENDA ITEM #5.A. CG&L CASHION GILMORE & LINDEMUTH December 2, 2024 Seema Garoutte, Assessor Kodiak Island Borough 710 Mill Bay Rd. Kodiak, AK 99615 sgaroutteAkodiakak.us RE: Alutiiq Heritage Foundation Property Tax Exemption - 2024 Motion for Reconsideration Dear Assessor Garoutte: On the record at the November 24, 2024 Board of Equalization (`BOE") hearing, you asked the BOE to remand the Alutiiq Heritage Foundation's ("AHF") tax appeal back to your office for reconsideration. We did not oppose that request at the hearing in order to allow time for AHF to submit additional evidence not considered by you before you amended your findings in the November 14, 2024 Report to the BOE, from those you made in your October 10, 2024 Decision. However, as a threshold matter, we do object as procedurally improper the Assessor amending the findings after AHF filed an appeal. By submitting additional evidence, we do not waive our arguments that, legally, the findings in your October 10, 2024 Decision cannot be amended against AHF after the appeal is filed. That being said, we do appreciate the opportunity to clear up the record, as a number of your findings, including those in your October 10, 2024 letter, are erroneous. Please find attached the three exhibits we had proposed to submit to the BOE, along with a copy of a new statement concerning the museum store. Dr. Counceller is prepared to testify to the veracity of these statements and these exhibits. We understand that you intend to schedule a hearing (that we can attend by Zoom) to allow the opportunity for additional evidence. To summarize, consistent with your findings, the museum is a non-profit charitable entity that is tax exempt under federal law and unquestionably qualifies for a property tax exemption. Natives of Kodiak ("NOK") had ended their lease and vacated the property by the end of February 2023. By late spring 2023, and certainly by January 1, 2024, the operative date, AHF had fully occupied the property, including those portions previously used by NOK. Your findings to the contrary are incorrect. 510 L Street, Suite 601 • Anchorage, Alaska 99501 (907) 222-7932 • www.cashiongilmore.com Page 128 of 142 3.0 BOE Information from Manager Williams AGENDA ITEM #5.A. Seema Garoutte December 2, 2024 Page 2 of 2 The museum store portion of the property also qualifies for the property tax exemption. It is also part of the museum's programming and, as found in your October 10, 2024, Decision, the museum sells only merchandise that supports its mission, and the revenues are reasonably necessary for the accomplishment of museum purposes not in excess of museum operating costs. Even if you were correct (in your later findings) that some portion of the store is taxable, most of the space in the museum store is used as a reception area for the rest of the museum. Finally, the finding that 53% of the property was under construction and did not qualify for the exemption is wrong. It is unclear how you arrived at this number. At most, only the basement was under construction on January 1, 2024. Dr. Counceller will testify that both the first and second floors were still being used, even though the museum was closed to the public and the museum store had been moved off -site in preparation for construction. As noted in my letter attached to AHF's appeal, it is black letter law that property that is used by a non-profit charitable entity that is exempt from property tax does not become subject to tax simply because there is a renovation or remodel of the space. Your finding that property under construction does not qualify for a tax exemption is not legally sound. In addition to the cases I previously cited, we also point your attention to J. Paul Getty Museum v. County of Los Angeles, 195 Cal. Rptr. 916 (Cal. App. Ct. 1983). I am happy to discuss these legal authorities further with Mr. Brandt-Erichsen. This case is easily distinguishable from the KANA case you included in the BOE report, as well as the KIC case he and I were both involved in years ago. We look forward to working through these issues with you on reconsideration. Sincerely, /s/Jahna M. Lindemuth Jahna M. Lindemuth, Partner jahnancashiongilmore.com (907) 222-7932 (main) (907) 339-4966 (direct) (907) 222-7938 (fax) Attachments cc: Dr. April Counceller Page 129 of 142 3.0 BOE Information from Manager Williams AGENDA ITEM #5.A. Alutiiq Heritage Foundation Facility use in building pre -renovation April Counceller 11/21/24 History: After NOK moveout Feb 28" 2023, staff began moving up to the NOK office suite in spring/summer of that year May -July. Before NOK left, staff had been crowded and had even been using lab and library space that was not intended for office use. Museum closed to public in July 2023 anticipating construction start that month but construction was delayed due to cost and design completion until Nov. 2023. The first few months of construction were demolition in the basement. When the Assessor toured in early 2024, demolition had occurred in the basement but not yet on the first floor, and staff were still in their workspaces, including the staff who has moved into the NOK office suite. Store closed in July 2023 and opened off -site in November2023, when we opened the off -site store at the KANA Marketplace. Museum staff who moved to the suite previously used by NOK used their new office spaces in our building from Spring 2023 until March 2024 when we learned we needed to move out of the facility due to water and mechanical work cutting off utilities. We moved to our rental office with some staff working from home the final week of March, and plan to move back into the building as soon as the Building Department issues us a CCO (Conditional Certificate of Occupancy). We anticipate getting our final Certificate of Occupancy in May 2025 when some delayed paving work can be completed. Specific Staff moves: Amanda moved from lab darkroom to 212.6 (NOK Suite: all rooms in this suite begin with 212). Alex moved from 15Y floor open Lab area to 212.5 (NOK Suite). Patrick moved from basement library to 207 conference room before demolition (fall 2023). The conference room was also used as a temp lab space and intern office in Summer of 2023. Leda moved from 213.4 (upper Library: All rooms in this area begin with 213) to 212.8 NOK Suite. Dehrich and moved from 213.3 to 212.4. Molly moved from 213.2 library to 212.3 office. After staff moved out of upper library space it was used for meetings and workshop space as c well as storage of books and education supplies, collections supplies, and other supplies. EXHIBIT 1 Page 1 of 2 Page 130 of 142 3.0 BOE Information from Manager Williams AGENDA ITEM #5.A. Store staff moved from 1St floor Store, 118 and 119 to Marketplace offsite store in Nov 2023. Intern and Museum assistant used 212.2 for office space in summer 2023. STAIR 2 193 SF STAFF OFFICE 212.8 OFFICE 213.2 221 SF �� 176 SF 212.10 STAFF LIBRARY OFFICE 213.3 212.5 OPEN OFF E 165 OPEN OFFICE' 212 8 213.1 549 SF -,45 SF 212.1 1595F 215 SF Wr STAFF OFFICE 13SF 1206SF I O EN 21122.13 OFFICE STOR RECEPT 2122 rol .212C12 211 i 122 SF d F 190 SF 000 i2 BAN P9Y 214 O0 210 P / igLETCONFERENCE ROOM 208 D J� 207 559 SF LOBBY 201 — STAIR 1 215 162 SF KITCHEN I�l 436 SF 2. RECEPTION 6S 296 SF kiIII�C204 STAFF OFFICE 226 SF 2" floor floorplan EXHIBIT 1 Page 2 of 2 Page 131 of 142 3.0 BOE Information from Manager Williams AGENDA ITEM #5.A. From: April Counceller <april@alutiigmuseum.org> To: "Jeanne Friel"<jfriel@kodiakak.us> Date: Wed, 09 Oct 2024 16:12:21 -0800 Subject: RE: info needed Forwarded message Dear Jeanne, On January 1st, 2024 we had staff offices/occupancy on all three floors of the building. Thank you, April <image001.jpg> April G.L. Counceller, Ph.D Executive Director Alutiiq Museum & Archaeological Repository ph: 844.425.8844 fx: 866.335.7767 http://alutiigmuseum.org C ---- On Wed, 09 Oct 2024 10:08:42 -0800 Jeanne Friel <jfriel@kodiakak.us> wrote --- Thank you, Yes, NOK, that was what I did mean. Sorry about that. Did the employees occupy the entire floors as of January 1, 2024? If not what month did the employees begin to occupy the remainder of the building? Thank you, Jeanne Friel 907-486-9354 From: April Counceller <april@alutiigmuseum.org> Cnn*• \AInAnnerimw r)rhnknr Q ')O')d Q•Z7 AM EXHIBIT 2 Page 1 of 3 Page 132 of 142 3.0 BOE Information from Manager Williams AGENDA ITEM #5.A. To: Jeanne Friel <jfriel@kodiakak.us> Subject: Re: info needed Dear Ms Friel, The construction is nearing completion and we are hoping to get the CO from the city by December. Employees occupy all three floors. I think when you say Koniag offices you are referring to the offices formerly leased by NOK? Employees occupy the offices formerly leased by NOK and use them as offices. Thank you, April <image001.jpg> April G.L. Counceller, Ph.D Executive Director Alutiiq Museum & Archaeological Repository ph: 844.425.8844 fx: 866.335.7767 http://alutiiq museum. org ---- On Wed, 09 Oct 2024 08:53:17 -0800 Jeanne Friel <jfriel@kodiakak.us> wrote --- Good morning, Can you please give me an update on the construction status? I also need to know what floors the employees occupy. I assume you have fully taken over the offices that Koniag was using? What are the offices now used for? Any information on changes of use? Meaning: if offices were used for storage instead of used for active work. I appreciate your time. Respectfully, <image002.ipq> EXHIBIT 2 Page 2 of 3 Page 133 of 142 3.0 BOE Information from Manager Williams AGENDA ITEM #5.A. Jeanne Friel Appraiser Kodiak Island Borough 710 Mill Bay Road Rm 228 Kodiak AK 99615 Phone:907-486-9354 Fax: 907-486-9395 PUBLIC RECORDS LAW DISCLOSURE: This e-mail and responses to this email are subject to provisions of the Alaska Statutes and may be made available to the public upon request. EXHIBIT 2 Page 3 of 3 Page 134 of 142 3.0 BOE Information from Manager Williams AGENDA ITEM #5.A. RE: [EXT] Store area Cancer icTroy Nesset <tnesset@kpbarchitects.com> Fri, 15 Nov 2024 2:29:10 PM -0900 7o "Amy Steffian" <amy@alutiigmuseum.org>, "Jae Shin" <jshin@kpbarchitects.com> C% "April Counceller° <april@alutiiqmuseum.org> Hi Amy, See the sketch below. The sales counter area is 130 sf, and the remaining store area is 510sf with a total area of 640sf. If you neE anything else, let me know. c� ioa m I a IAIOI STAIR t = i IF s1 3°X3' 5iEEL POST TYP a � A3s A I A 0 _ -14 b I LEV i E000 i I I Q i�A MUSEUM s STORE Ago 102 510S1' FOCUS GALLERY I 1-01-1 i Troy Nesset Ar ' K .CHITECTS 500 L Street Suite 400 1 Anchorage AK 99501 v 907.274.7443 1 d 907.770.4302 EXHIBIT 3 Page 1 of 1 Page 135 of 142 3.0 BOE Information from Manager Williams AGENDA ITEM #5.A. Alutiiq Heritage Foundation Statement Regarding Museum Store Dr. April Counceller 11/29/24 The museum store pre -renovation was 365 square feet with a portion of that amount being the reception area (I'm not sure of the exact sf of the reception desk but it was probably under 100 sf). The store is increasing in size due to our renovation, and our plans show it to be 640 sf after the renovation, although 130 sf of that number is the reception desk. Earlier renovation plans had the store becoming larger than that but due to cost, we are unable to expand it more than the 640 sf. The Alutiiq Museum store includes the museum's front desk. This is where staff answer the main telephone line to answer questions or direct callers to other staff. This is also where we take admissions and donations, and share information about the museum with in -person visitors. When guests arrive to meet with museum staff, they check in at the front desk before being escorted to staff offices or other areas. And, it is where people check in for tours and events. Thus, although the reception desk itself is 130 sf, much of Cthe rest of the store is used as the lobby and entrance to the rest of the museum. The ultimate purpose of the store is that we use it to sell mission -related arts and merchandise to help support the costs of running our organization. Museum stores are a customary and well-known means for nonprofit museums to generate earned revenue. Museum stores under IRS law must only sell items related to the museum's mission, or else the income is classified as unrelated business income and subject to UBIT income tax. This means all objects in the store are related to Alutiiq culture and/or the natural environment of Kodiak. We have always taken this requirement seriously and have never had our IRS nonprofit standing questioned by the IRS. We are classified as both a 5 (c)(3) nonprofit organization and a 509(a)(2) public charity. The 509(a)(2) designation means that in addition to being nonprofit, the majority of our revenues come from a combination of contributions, membership fees, and gross receipts from mission - related activities. The museum store is a classic example of mission -related income. Our store serves to support our mission because as a public facing part of our organization, we are able to further educate the public about traditional arts and extend our mission to preserve and share Autiiq heritage and living culture. For example, to help perpetuate Alutiiq/Sugpiaq art forms, we offer workshops in Kodiak and the surrounding villages to teach things like beaded headdress making. To expend the individuals able to EXHIBIT 4 Page 1 of 2 Page 136 of 142 3.0 BOE Information from Manager Williams AGENDA ITEM #5.A. access the knowledge, we usually pair workshops with videos and printed/PDF materials. Community members who learn via our workshops or learning materials often sell their art though the Alutiiq Museum store, which helps encourage that art form to be continued and taught to others in furtherance of the museum's mission. Patrons also deepen their connection to Alutiiq heritage when they purchase in our store, as they gain a deeper appreciation for the talent and hard work of culture bearers and artists. We also conduct public information sharing through our store - such as educating visitors about the importance of supporting authentic Native arts over fakes made overseas. In addition to admissions, memberships, and donations received through the store, our sales break down into a few categories. We sell museum branded merchandise such as mugs and tee shirts that bear our logo. We also sell consigned art and purchased arts (paintings, baskets, jewelry, carvings, etc) and cultural merchandise (such as books on Native foods or archaeology). It is important to note that our store typically does not make a profit. While our store revenues have increased over the years along with our reputation, we have a negative net margin for the store after factoring in staff time and supplies. This is acceptable to our organization because we see the store as a program to help further our mission to preserve and share Alutiiq heritage and living culture. EXHIBIT 4 Page 2 of 2 Page 137 of 142 3.0 BOE Information from Manager Williams AGENDA ITEM #5.B. THE STATE °fALASKA GOVERNOR MIKE DUNLEAVY September 11, 2025 Kodiak Island Borough Assembly 710 Mill Bay Rd Kodiak, AK 99615 Department of Environmental Conservation DIVISION OF ENVIRONMENTAL HEALTH Solid Waste Program 555 Cordova Street Anchorage, AK 99501 Phone: 907.269.7626 Fax: 907.269.7510 www.dec.alaska.gov Delivered Electronically RE: September 11, 2025, Kodiak Island Borough Assembly Special Meeting, Agenda Item 3.13, Bears in the Kodiak Island Borough Landfill, ADEC Solid Waste Permit SW1A005-28a Dear Assembly Members: The Alaska Department of Environmental Conservation (ADEC) Solid Waste Group is requesting that funding be provided for addressing the bear issue at the Kodiak Island Borough (KIB) Landfill. The KIB Landfill is a Class I landfill that is permitted by ADEC. Alaska Solid Waste Regulation 18 AAC 60.230(a)(2) states that "The owner or operator of a facility subject to the permit requirements of AS 46.03.100 and this chapter shall manage the facility so that wildlife and domestic animals do not endanger public health, safety, or welfare; become harmed by contact with the waste; or become a nuisance..." The current situation at the KIB Landfill is out of compliance with ADEC's requirement that bears be kept out of the landfill. Biologists with the Alaska Department of Fish and Game (AF&G) have conducted inspections of the electric bear fence at the landfill and have provided suggestions for its repair and reinforcement. ADEC strongly supports their conclusions and suggestions. It is ADEC's understanding that landfill staff have been responsive to the situation, and that further work to repair and strengthen the electric bear fence is beyond their scope and requires outside contractor help. Funding is crucial so that the landfill can be immediately secured against bears for landfill staff and public safety, for bear safety, to safeguard landfill infrastructure from damage, and to bring landfill operations back into compliance with ADEC Solid Waste regulations. Thank you for your attention to this matter. Please feel free to contact me at annemieke.powers e alaska.gov or (907) 269-2676 with any questions you may have. Sincerely, J ,2, Annemieke Powers Environmental Program Specialist III Page 138 of 142 3.13 ADEC Letter to Assembly AGENDA ITEM #5.C. Speu,zck r�eeF►� � rechan�_ MIA Construction, LLC Alaska Business License # 1016083 Alaska Contractors License # 39993 907-486-3215 DATE: September 3, 2025 FROM: Jascha Zbitnoff TO: Kodiak Island Borough Mayor and Manger SUBJECT: Contract No. FY2026-06 Kodiak Island Borough Facilities Dear Mr. Mayor and KIB Assembly, Over the past couple weeks there has been much discussion regarding the referenced contract above and which company to award to. As one of the contractors that bid on the project we would like to express our frustration with the process. It seems that through the attempt to make the bidding process more transparent and streamlined it has caused unforeseen complications and made the bid review process unclear. We feel that adding approximate historical quantities to be used on the bid items it would make the review process easier to interpretate. Using an average of different rate tables makes it very difficult to compare total bids. Case in point with this contract AIM Maintenance was the clear low bidder when using the average of the five tables in the base bid, it would be in the best financial interest of the KIB to award to AIM over MK or Brechan Construction. While we appreciate the effort by the engineer department to make the process more transparent and streamlined, we feel that certain aspects of the bid process need to be readdressed for future bids. As always, we appreciate the KIB's effort to include the contractors in this changing process. Best regards, Jascha Zbitnoff VP of Operations Brechan Construction 2705 Mill Bay Road, Kodiak, Alaska 99615 (907) 486-3215 Page 139 of 142 T 2) QQ m 0 0 N Regular Special Convened: KODIAK ISLAND BOROUGH ASSEMBLY ROLL CALL SHEET Date:2 "- 2S/ Recessed: " pq 9 Reconvened: Adjourned: /' BY: SECOND: BY: SECOND: (�� 1 UjL BY: V v SECOND: l`J� ,Q BY: '16 SECOND: �j ' l4L BY: 3�5 SECOND: do YES NO YES NO YES NO YES NO YES NO Mr. Ames Mr. Ames Mr. Ames Mr. Ames Mr. Ames Mr. Griffin �/ Mr. Griffin Mr. Griffin * Mr. Griffin Mr. Griffin Mr. Johnson Mr. Johnson ✓ Mr. Johnson Mr. Johnson )t Mr. Johnson Mr. LeDoux v1 Mr. LeDoux Mr. LeDoux Mr. LeDoux Mr. LeDoux Mr. Sharraft Mr. Sha tt Mr. Sharratt Mr qh:;rrsgft Mr. Smiley Mr. Smiley Mr. Smiley ✓ Mr. Smiley Mr. Smiley Mr. Whiteside Mr. Whiteside Mr. Whiteside Mr. Whiteside Mr. Whiteside WOULD ANYONE LIKE TO CHANGE THEIR VOTE? WOULD ANYONE LIKE TO CHANGE THEIR VOTE? TOTAL: O 1 TOTAL: TOTAL: v TOTAL: TOTAL: The mayor may not vote except in the case where only six members of the assembly are present and there is a three/three tie vote of the assembly. Mayor Arndt Mayor Arndt Mayor Arndt Mayor Arndt Mayor Arndt AGENDA ITEM #5. C. KODIAK ISLAND BOROUGH Meeting Type: Assembly Special Meeting Date: September 11, 2025 rivazou rr-un-4i yvul nanrt: lu iui rnvne numuer o-,�- a&2-l1�, -.2; Page 141 of 142 AGENDA ITEM #5.C. Kodiak Island Borough Assembly Newsletter Vol. FY2026, No. 05 September 12, 2025 At Its Special Meeting Of September 11, 2025, The Kodiak Island Borough Assembly Took The Following Actions. The Next Regular Meeting Of The Borough Assembly Is Scheduled On Thursday, September 18, 2025, At 6:30 p.m. In The Borough Assembly Chambers. NO MOTION WAS PRESENTED TO WITHDRAW THE PROTEST To The State Of Alaska Alcohol And Marijuana Control Office (AMCO) General Wholesale License (GWL) Renewal Application For Southern Glazer's Wine And Spirits Of Alaska, LLC DBA Southern Glazer's Of AK (License #4860) FAILED TO OVERRIDE THE MAYORAL VETO On Contract No. FY2026-06, Kodiak Island Borough Facilities Contract With MK Enterprise, LLC CONVENED INTO EXECUTIVE SESSION Under The Authority Of KIBC. 2.30.030 (F)(1)(A) To Discuss Pending Litigation Of The Alutiiq Heritage Foundation Property Tax To The Superior Court To Which The Borough Is A Party And To Provide Direction To The Borough Manager Regarding That Litigation. INVITED The Mayor, Assembly, Manager, Assessor, And Borough Clerk Into Executive Session. DIRECTION WAS GIVEN To The Manager On How To Proceed With The Litigation. View our website: Visit our Facebook page: www.kodiakak.us In www.facebook.com/KodiakislandBorough Page 142 of 142