Kenai council grants Tidewater LLC 10-year first right of refusal on Denina Point Estate

The Kenai City Council voted unanimously Wednesday to approve a memorandum of understanding with Tidewater LLC, granting the developer a 10-year first right of refusal on the city-owned Dena'ina Point Estates parcel and appropriating $54,219 for the city's share of subdivision costs.

The Kenai City Council voted unanimously Wednesday to approve a memorandum of understanding with Tidewater LLC, giving the developer a 10-year first right of refusal on city-owned land at Denina Point Estate Subdivision and setting a framework for a public-private partnership that could require more than $15 million in roads, water, and sewer work.

The council also approved an ordinance appropriating $54,219 to cover the city's pro-rata share of subdivision costs tied to the project.

The bluff-top parcel has sat undeveloped for decades. A speaker at the meeting said previous developers had looked at the property and walked away. "Running the water, sewer, and roads was a difficulty, and it just never happened," the speaker said. "So now we've got a developer that's going to have some skin in the game."

Under the agreement, an appraisal conducted now at Tidewater's cost will set the land value for future transactions, adjusted by the Consumer Price Index, rather than a new appraisal at the time of sale. If another developer inquires about any portion of the property, Tidewater has 60 days to exercise its first right of refusal and 90 days to finalize a lease or subsequent agreement. The MOU does not guarantee rezoning, final plat approval, or any future agreement. Those remain discretionary decisions by the Kenai Planning and Zoning Commission and the council.

Council Member Phil Daniel said he supported the deal. "I'm a really big fan of public-private partnerships, and this is a great example of another one," Daniel said.

City Manager Eubank said rezoning cannot proceed until a preliminary plat exists, and that a final plat recording is required before individual lots become sellable.