Kenai Planning Commission recommends rural residential rezone, rejecting city's denser proposal

The Kenai Planning and Zoning Commission voted Wednesday to recommend rezoning part of an 81-acre city parcel to rural residential, rejecting the city administration's preferred suburban residential designation that would have allowed smaller lots and apartment buildings.

Lisa Coates, who lives at 410 Magic Avenue adjacent to the parcel at 10060 Kenai Spur Highway, testified that the area's dirt roads and wetlands cannot support higher-density development. She asked the commission to require 20,000-square-foot lots instead of the 7,200-square-foot minimum the city proposed.

A commissioner proposed the change, citing neighbor concerns about density and infrastructure. The amendment passed and becomes the commission's recommendation to the Kenai City Council.

City Manager Terry Eubank said the larger lot size would make development uneconomical. He cited a fall 2025 survey showing 74 percent of residents believe the city has a housing availability and affordability problem. Eubank said the city is working with a developer interested in building apartments.

The rezone applies to roughly 10 to 15 acres of upland suitable for development. The remainder contains wetlands and drainage areas that will remain undeveloped.

Planning Director Kevin Butner said the city typically negotiates road and utility improvements as part of lease agreements with developers.

The recommendation goes to the Kenai City Council for final consideration. Any future subdivision or lease of the property would return to the commission and council for additional review.