1996-37 Authorizing the Mayor to Negotiate the Acquisition of the MarkAir Terminal Building.KODIAK ISLAND BOROUGH
HESOLUTION NO.
Introduced by: Mayor Selby
Requested by: Mayor Selby
Drafted: Mayor Selby
Introduced: 12/19/96
Adopted: 12/19/96
A RESOLUTION AUTHORIZING THE MAYOR TO NEGOTIATE THE
ACQUISITION OF THE MARKAIR TERMINAL BUILDING
WHEREAS, MarkAir, Inc. stopped providing air service to Kodiak and declared
bankruptcy; and
WHEREAS, the bankruptcy court is interested in disposing of the MarkAir assets as
soon as possible; and
WHEREAS, included in these assets is the MarkAir terminal building at the Kodiak
State Airport; and
WHEREAS, Peninsula Airways (PenAir) is interested in leasing most of the building
from the Kodiak Island Borough to provide the Northern Air Cargo service and
passenger service at the airport; and
WHEREAS, ERA aviation also supports purchase of the building by the Kodiak Island
Borough; and
WHEREAS, the Kodiak Island Borough Airport Advisory Committee has recommended
that the assembly pursue acquisition but identified six concerns to express before a
decision is made; and
WHEREAS, most of the six concerns have been explored by the Kodiak Island
Borough Engineering /Facilities Department director, assessor, resource manager and
environmental engineer, and these reports are assembled; and
WHEREAS, the first and last impressions that all air traffic visitors to Kodiak have is
formed at the terminal facilities at the airport; and
WHEREAS, the present lease for the lot where the terminal is located is good until
July 1, 2014; and
WHEREAS, well maintained and well managed terminal facilities are a major public
concern to assure efficient air travel options for Kodiak citizens; and
WHEREAS, maximizing the use of the MarkAir terminal is critical to both the foreign
trade zone and the development of Kodiak as a regional air traffic hub for the
development of southwest Alaska;
Kodiak Island Borough, Alaska Resolution No. 96 -37
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WHEREAS, putting the Terminal back into usage will provide opportunities for private
enterprise to expand current operations and start new businesses;
NOW, THEREFORE, BE IT RESOLVED BY THE ASSEMBLY OF THE KODIAK ISLAND
BOROUGH that the assembly authorizes the mayor to negotiate with the bankruptcy
court and the Alaska Industrial Development and Export Authority (AIDA) to
determine an acceptable transter value tor the acquisition of the
building and the lease of the lot where the terminal is located; and
BE IT FURTHER RESOLVED BY THE ASSEMBLY OF THE KODIAK ISLAND BOROUGH
that the mayor should negotiate to complete the acquisition within the range of the
estimate of value, completed by the Borough assessor, in a manner to address the
concerns identified by the Airport Advisory Committee and staff review of the facility;
and
BE IT FURTHER RESOLVED BY THE ASSEMBLY OF THE KODIAK ISLAND BOROUGH
that the acquisition will be returned to the assembly for final approval after the
negotiations are complete and the opportunities for private enterprise have been
identified; and
BE IT FURTHER RESOLVED BY THE ASSEMBLY OF THE KODIAK ISLAND BOROUGH
that:
Section 1: That prior to the return of the acquisition to the assembly the mayor will
meet with the Airport Advisory Committee. The Airport Advisory Committee will then
give formal recommendation to the assembly.
Section 2: Prior to the final public hearing of the assembly, a site visit of the
MarkAir terminal building will be provided for the assembly.
Section 3: The assembly will hold a public hearing after which the final decision of
whether or not to purchase the MarkAir terminal building will be made.
ATTEST:
ADOPTED BY THE ASSEMBLY OF THE KODIAK ISLAND BOROUGH
THIS NINETEENTH DAY OF DECEMBER , 1996
onna F. Smith, CMC /AAE, Borough Clerk
Kodiak Island Borough, Alaska
KODIAK ISLAND BOROUGH
Robin Heinrichs, Presiding Officer
Resolution No. 96 -37
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