Soldotna weighs two homes on rural lots, and a rezone of three streets whose owners have not been asked

Soldotna's rural residential lots east of the Sterling Highway could hold two homes instead of one under zoning changes Economic Development and Planning Director Linda Mitchell put to the city council at a work session Wednesday, Sept. 23. The council took no action; the session was discussion only. The change would allow two dwelling units per parcel in any layout, on lots of at least 40,000 square feet, ending the non-conforming status of existing detached mother-in-law units.

Vacant residential land sales fell from 30 in 2024 to 13 last year, and only two lots sold since 2024 have been built on. The city has issued three accessory dwelling unit permits.

"We are seeing a lot of unpermitted structures on that side of town," Mitchell said of the area east of Homestead and south of the creek, adding that the city lacks code enforcement capacity to drive the area. Her department plans next year to scan Kenai Peninsula Borough aerial imagery, updated every two years, and send letters to owners of structures with no building permit on file.

"I was told by my neighbor I can build a house, I can build a second house. And so I'm hearing a theme, and I'm getting more inquiries on that side of town of people interested in buying properties. But when they call us, we say no," Mitchell said.

Accessory dwelling units, now capped at 750 square feet and allowed only beside a single-family home, would instead be capped at 50 percent of the main house, to about 1,100 square feet, with duplexes eligible. Multifamily density would become a flat 16 to 22 units per acre. Parking minimums, now 1.5 to two spaces per unit, would drop to one space for affordable one-bedroom units and 1.5 for affordable two- and three-bedroom units, requested by a developer of Alaska Housing Finance Corporation-funded projects.

Staff also named three corridors to rezone for multifamily or limited commercial: South Fireweed Street from Reger Avenue to South Kobuk Street, Foothill Road from Karen Street to Kenai Avenue, and Robin Place. Asked whether affected owners had been told, Mitchell said she had not contacted three of the four Fireweed parcels.

"I would just think before we proceed too far that I'd like to know that the property owners are okay with it, because if they don't like it and want to stay the way things are, then why change it?" Vice Mayor Lisa Parker said. Mitchell said outreach and an open house would precede any rezone.

Any ordinance goes to Planning and Zoning Commission public hearings first. It meets Oct. 7 at 5:30 p.m., 177 N. Birch Street; written comment goes to [email protected].