Session 03-12, a Regular Meeting of the Homer City Council was called to order at 7:30 p.m. by Mayor Jack Cushing at the Homer City Hall Council Chambers located at 491 E Pioneer Avenue, Homer, Alaska, and opened with the Pledge of Allegiance.

The Council met as a Committee of the Whole from 4:08 p.m. to 6:00 p.m. This included a Joint session with the Parks and Recreation Commission, Planning Commission, Port/Harbor Commission, and the Library Advisory Board regarding Land Allocation Matters that began at 5:05 p.m. Items discussed were the Large Store Issues, Regular Meeting Agenda Items, and Land Allocation Issues.

PRESENT: COUNCILMEMBERS: BECK, FENSKE, KRANICH, LADD, STARK, YOURKOWSKI.

STAFF: CITY MANAGER WREDE

CITY CLERK CALHOUN

LIBRARY DIRECTOR HILL

AGENDA APPROVAL

(Addition of items to or removing items from the agenda will be by unanimous consent of the Council. HCC 1.24.040.)

The agenda was approved by consensus with the following changes: Memorandum 03-98, from Councilmember Fenske, Re: CUP/Building Standards for Large Retail Stores - attach to Ordinance 03-25 and 03-33(S)(A), Memorandum from Acting City Planner, Recap of Planning Meeting as part of City Manager's Report, Memorandum 03-99, from Acting City Planner, with Findings of Fact from Planning Commission for Ordinance 03-25(S) and Unapproved Planning Commission Minutes of June 4, 2003, Public Emails on Ordinance 03-25, Backup Emails for Resolution 03-48(S), regarding Subdivision Plats finalized for the Forest Glen LID

As suggested/requested by Mayor Cushing, Planning Commission Chair will be giving a report/presentation on Ordinance 03-25(S) as the first speaker under Public Comments.

Councilmember Kranich requested that the approval of the minutes be removed from the agenda.

PUBLIC COMMENTS UPON MATTERS ALREADY ON THE AGENDA

Exclusion of Visitors from the South Peninsula Hospital and Cook Inlet Keepers and Public Hearing Items Ordinance 03-30, City Jurisdiction, Ordinance 03-31, Reimbursement Grant of $6,605.00 for Commercial Vehicle Enforcement, Ordinance 03-32(A), Appropriating $25,000.00 from the Animal Shelter Account to Formalize the Plan for Construction and Ordinance 03-33(S)(A),Extending portions of Ordinance 02-53(S)(A) for a Period of Six Months about the Criteria for Standards for the Site Development, Utilities and Services, Environmental, Community, and Fiscal Impacts used to Assist in the Development and Assessment of Large Retail and Wholesale Structures. Ladd.

Mayor advised that Ordinance 03-25 may be postponed till next meeting

Planning Commission Chair Smith, representing the Planning Commission, presented the Commissions Findings ⁽¹⁾ on Ordinance 03-25, noting that one of the recommendations of the Commission is that the Council move to amend to the substitute Ordinance, 03-25(S). he asked that the Council make this amendment before postponing further for the benefit of more accurate public awareness and review:

Recommendation:

The Homer Advisory Planning Commission (the "Commission" and/or "HAPC") was directed by the Homer City Council to review proposed Ordinance 03-25, hold a public hearing and amend the proposed ordinance after Commission review. The Commission held four work sessions and four Regular Meetings in which the Commission discussed and amended the proposed ordinance. The Commission developed a "Selecting Optimum Maximum Size for Retail Stores in Homer, 2003" matrix with which they studied and graded all aspects of development for buildings from 20,000 to 80,000 square feet in all commercial zones of the city; studied the estimated traffic impacts from data extracted from "Trip Generation, 6^th Edition" (Institute of Traffic Engineers) for grocery stores from 20,000 to 50,000 square feet; discussed and responded to City Council members questions regarding the proposed ordinance amendment; considered data from a "Retail Trade Analysis for Kodiak Island, Alaska" Sponsored by the Kodiak Chamber of Commerce; evaluated the environmental aspects of large retail/wholesale buildings; developed a parking lot size chart from Homer City Code and evaluated the parking requirements for large retail buildings; studied building sizes in Homer from a Commission developed building size study; considered retail sales and square footage information provided by a City Council member, the Kenai Peninsula Borough and the UAA Institute of Social and Economic Research; studied a collection of case studies "Learning from Small Towns" from the Dept of Landscape Architecture, Community Design Studio 503, University of Washington; Commission members attended a Chamber of Commerce community forum to study the Town Center development plans presented by the Community Design Studio 503; considered the "Food Cost Survey" published by the Cooperative Extension Service, UAF; considered the report from the City Council Large Retail and Wholesale Structure Task Force; intensively consulted and took direction from the Homer Comprehensive Plan Update, 1999; studied the purpose of the business district zoning expressed in the Homer City Code Chapter 21 for the CBD, GC-1, GC-2, MC and MI; heard from a total of twenty-five individuals at three Commission meetings, nineteen individuals spoke for a cap of 20,000 s.f., three individuals spoke against a 20,000 s.f. cap and one individual stressed standards and criteria; held a public hearing as required by Homer City Code § 21.69 before the Commission on April 2, 2003; at the May 21, 2003 meeting of the Commission, and the Commission voted to forward Substitute Ordinance 03-25 (S) to the Council.

After due consideration of the broad range of evidence presented the Planning Commission adopted the following findings:

Intent - The Commission wishes to encourage growth and development in Homer. Zoning law provides local authority to regulate buildings and land in order to enhance the public health, safety and welfare. It is through zoning that the citizens may determine the nature of development in their community and thus exert control over the physical and social environment in which they live. The HAPC wishes to implement the policies and guidelines of the Comprehensive Plan in a way that will allow development to occur consistent with the Plan, while preserving those qualities that made Homer what it is today. The Comprehensive Plan calls for supporting those virtues that either brought people to this community or induced them to stay after happenstance of birthplace. The people of Homer want to collectively determine the future of their community.

Findings of public meetings held - Advertisement of April 2, 2003 Public Hearing; A public hearing was scheduled as required by Homer City Code § 21.69 before the Commission on April 2, 2003. Notice of the public hearing was published in a local newspaper. There was no response to the public hearing notice, and no one spoke before the Commission. April 16, 2003 Meeting of the Commission; At the April 16, 2003 meeting of the Commission, the Commission heard from eight individuals, six spoke for a 20,000 s.f. cap, one individual spoke against a 20,000 s.f. cap and one individual stressed using standards. May 7, 2003 Meeting of the Commission; At the May 7, 2003 meeting of the Commission, the Commission heard from ten individuals who spoke for a 20,000 s.f. cap, two individuals spoke against a 20,000 s.f. cap and one individual was neutral. May 21, 2003 Meeting of the Commission; At the May 21, 2003 meeting of the Commission, the Commission heard from three individuals; two who spoke for a 20,000 s.f. cap and one who expressed concerns.

The Commission finds the general population has become well informed of the buildings sizes in Homer, and are their opinions are based on that knowledge; that the citizens are keenly aware what a 21,000 s.f. retail/wholesale building brings to Homer, and do not embrace a proliferation of even larger retail buildings. 30,000 s.f. would be nearly 50% larger and 40,000 s.f. would be almost twice as large; that the citizens are passionate about the course of future development in Homer, and that on balance, they believe other quality of life issues are more important than quality shopping opportunities; that citizens embrace local scale economic development and have no desire to end that development; and that the Public is well aware of and supportive of the goals of the Comprehensive Plan.

Additional findings: After much consideration, it became apparent to the Commission that discerning the difference between developments in 5,000 s.f. increments was not reasonable, because most of the issues are in shades of gray and are better distinguished in 10,000 sq. ft. increments at a minimum. The Commission finds it appropriate to limit its considerations to 10,000 s.f. intervals. Even at 10,000 square foot increments, the difference on some issues was not discernable. What came through in the overall study was an obvious trend that on most issues, smaller was best. This does not mean that larger sizes would not deliver some benefit to the community, indeed the data studied made that point, and on some issues the larger the better. The issue of size cap will need to be revisited in the future to insure that it continues to be appropriate. Ten years should be the maximum and 5 years may be ideal. The Institutional and Commercial buildings of Homer provide a unique appearance and foster a sense of community. The sense of community and attractiveness of Homer have brought many first time visitors, return visitors and new residents to our community. Visitors and residents are the economic engines of our economy.

Homer's diverse, small business focus has provided the Kenai Peninsula's most stable and robust economy, which is more resilient than others in difficult economic times. A national trend exists to bring very large retail stores to small towns, which has the effect of concentrating traffic and increasing vacancy rates. Very large retail stores are found in most corners of America, offering the same products and services, producing a homogenized look and feel across America. A single very large retail store will change the overall small business character and severely limit the prospects for future competition and diversity that have been the hallmark of Homer. Allowing a very large retail store to be constructed is an irrevocable step that will change the very nature of Homer that Citizens strive to preserve. Reasonable measures to contain retail business growth rate are needed for Homer in order to maintain a strong and lasting economic expansion. Many small businesses spread the effect of traffic across the City, instead of creating dangerous and congested traffic in one area. Pedestrian safety is paramount and is helped by limiting traffic congestion. Vehicle safety is aided by limiting traffic congestion. A large retail store demands visibility from high volume traffic, and thus are planned and located in ways that dominate their location, and the adjacent thoroughfare. Large Retail buildings would bring a larger selection of goods available locally. Large Retail buildings would limit the "leakage" of retail sales to other areas and bring in more regional sales.

Large Retail that succeeded in increasing local retail sales would increase tax revenues to the City as well add to the real property tax roll. Local government that becomes dependant on a single large tax-payer is extremely vulnerable to a shifting economic climate. The Commission finds it inappropriate to make zoning law decisions primarily based on revenues that would accrue to the City. Supporting Large Retail is business friendly to one or two businesses, while supporting small retail is business friendly to many businesses. Establishment of a Large Retail store has the potential to limit small retail development for years until population growth enables further expansion. Reasonable measures to contain retail business growth rate are needed for Homer in order to maintain a strong and lasting economic expansion. Many small businesses spread the effect of traffic across the City, instead of creating dangerous and congested traffic in one area. To limit the impact of a very large retail or wholesale structure that will significantly alter the unique character and the sustained community economic growth, it is in the best interest of the City of Homer to regulate maximum Retail and Wholesale building size. The problem of making Homer grocery pricing competitive with Soldotna has been largely solved by recent local competitive developments, while no evidence has been presented that indicates enduring favorable price changes would result from Large Retail development. Consideration was given to conserving and stabilizing the value of property without consideration of who owned the property. The Commission finds it inappropriate to seek to protect or prohibit any particular business, instead, following the guidance of the Comprehensive Plan, the commission sought to assist a category of business that makes Homer unique and has contributed to our success.

Findings from The Homer Comprehensive Plan: 1. The Homer Comprehensive Plan states: Guide growth and development in areas planned or zoned Central Business District (CBD) to provide a centrally located business/commercial area and focal point for the community. The Commission found that a size cap is a critical tool in controlling development, and cannot be replaced by any other standard. The surest way to foster small business, in this era of market dominance by huge business, is to limit building size. 2. The Homer Comprehensive Plan states: Promote a safe, attractive, and easily accessible business/commercial core for pedestrian and vehicular visitors and residents. The Commission found that a retail/wholesale building larger than 20,000 s.f. would not be conducive to promoting a safe, attractive and easily accessible business/commercial core for pedestrians or residents. 3. The Homer Comprehensive Plan states: The City shall work with private business and property owners to insure that the unique cultural identity of locally owned and developed small business is not lost to national marketing and branding identities. The Commission found that a retail/wholesale building over 20,000 s.f. is not compatible with the unique cultural identity of small businesses within the Central Business District. 4. The Homer Comprehensive Plan states: The City shall encourage the beautification and retention of natural vegetation throughout the commercial business core and institute a landscape ordinance, in recognition of climate moderation, noise diffusion, and habitat and aesthetic benefits of natural vegetation. Also stated: Support retention/restoration of natural vegetation and habitat in the Homer area. The Commission found that large-scale development has more than a proportionately greater impact on vegetation and habitat because of the necessarily unbroken large expanse of building and parking required. Whereas small-scale development offers more opportunity to maintain buffers and corridors throughout the area. The Commission found that some environmental impacts of large-scale developments can be mitigated, and some are less amenable to mitigation. Overall the smaller scale the development, the more likely that environmental problems are not created or are easily resolved. The Commission found a retail/wholesale building over the size of 20,000 s.f. with its parking area would require such a large disturbance of natural vegetation that noise diffusion and habitat would be largely disturbed and the aesthetic benefits of natural vegetation lost. The Commission found that buildings above 30,000 s.f. and larger have an excessive impact. 5. The Homer Comprehensive Plan encourages a balance of open space and attractive, retail-oriented development. The Commission found that development loses its ability to maintain these qualities as the project size increases. The Commission found that large retail/wholesale development along the Sterling Highway would result in a typical retail strip development look, regardless of the design of the building. The Commission found that this retail strip development appearance is not supported by the Comprehensive Plan. 6. A Homer Comprehensive Plan Goal is to insure that Homer's development follows a well thought out, coordinated plan, that speaks to the aesthetic qualities of Homer's profile as an arts destination. 7. The Economic Section of the Comprehensive Plan makes these statements: a. Year round employment opportunities for area residents will be enhanced. b. The City shall encourage the private and public development of the Lower Kenai Peninsula for the purpose of increasing tourist revenues. c. The City will aggressively market Homer as a tourist destination.d. The City shall aggressively market Homer as a commercial fishing port. e. Encourage year round employment in the marine services industry. f. The City shall study and implement a plan for a zoned marine industrial area capable of supporting year round service facilities. g. Facilitate the implementation of an economic growth plan. h. The City shall seek ways to form or encourage alliances with other tourism centers on the Kenai Peninsula, especially cultural and science institutions in order to expand the marketing strengths of the City in the tourism segment. i. The City shall work with interested parties to develop an information source and a support system for area citizens involved in small business enterprises. The Commission found that the Comprehensive Plan, when taken as a whole, has made a deliberate choice to support small business and a unique community whose business activities are focused on tourism, arts and the maritime industry. Although Large Retail was a possibility at the time of formulation, the Comprehensive Plan deliberately does not invite large retail stores into Homer. This deliberate choice constitutes instruction of City policy by the City Council to find ways to support small business. 8. The Comprehensive Plan Homer Spit Plan calls for commercial activities which are marine related. The Commission found that Retail/Wholesale buildings which exceed 20,000 s.f. are not required to service the intensive mixed use environment of the Homer Spit, and would unduly add to an existing traffic congestion problem. The Commission found that large Retail/Wholesale buildings are not compatible with the need for multiple mixed uses of the Homer Spit, and would consume a large amount of land, our most limited resource on the Spit. The Commission found that large Retail/Wholesale buildings of 20,000 s.f. or less would be entirely adequate to serve the needs of the Homer Spit in view of the goals established by the Comprehensive Plan.

Conclusion: When it comes to building size, is there a difference between "What is the effect on Homer" and "What kind of town do we want Homer to become"? The Commission finds that there is indeed a difference and recommends that the focus should be as mandated by the Comprehensive Plan: What kind of town do we want in the future. The Commission became convinced that limits are very strongly indicated by the Comprehensive Plan and thus is obliged to recommend adoption of Ordinance 03-25 (S). The Commission recommends that for the Central Business District, large Retail/wholesale buildings 20,000 s.f. or smaller are the most appropriate for the future of Homer. The Commission recommends that for General Commercial 1, and General Commercial 2 that 40,000 s.f. maximum is appropriate away from the city center, and further recommends a 30,000 s.f. maximum for General Commercial 1 south of Beluga Lake due to proximity to the Central Business District.

Councilmember Fenske recognized the extraordinary efforts of the Planning Commission and their work on the Findings of Fact.

George Overpeck, Coordinator for the Kachemak Bay Shellfish Cooperative, spoke in support of Resolution 03-85 and about the shell fish industry project. He shared with the Council that the hope is to bring to Homer a coordinated work to do everything on this side of the Bay and make it possible for the shellfish farmers to grow the product. He reported that the Kachemak Bay shellfish industry is the largest player with regard to oysters and is about one third of the state oyster production. He noted that as a cooperative they bring a high rate of return back to Homer. They would like to build a facility on the Spit that will incorporate a retail section and a wet holding facility. He reported that they believe there is a high retail potential on the Spit based on the one hundred thousand visitors to Homer each year. He advised that if there is a wet storage space on the Spit his job will be much easier and they will be able to realize the efficiencies, which mariculture promises, of being to manage supply and demand effectively. The hope is to associate oysters with Homer, oysters are the main product and there is some mussel production. He informed the Council that oysters are very regional specific, reported on the recognition and popularity of the Kachemak Bay oysters, and that these oysters are marketed as Kachemak Bay oysters in state and out of state, such as Copper River Salmon or a Kenai River Salmon. He emphasized that Kachemak Bay is one of the best bodies of water, in the world, for the production of oysters.

Emily Ward commented that she has done most of her shopping, over the years, in Homer and strongly urged the Council to approve the twenty thousand square foot cap in the CBD and to consider raising it up to forty thousand in the other business districts. She commented on growing up in a small town that relies heavily on the tourism industry and that town had the foresight to zone and plan in the direction that resulted in a beautiful town. She pointed out that she was not drawn to Homer by its looks and that, in fact, was confused by the obvious lack of planning and zoning. She told the Council that she stayed because of the people and the natural surroundings and that she hopes to live here the rest of her life. She relayed visitor comments about the town not being too much to look at, but that it is in a beautiful area. She commented on the changes that have occurred since she got here, being impressed with the improvements that have been made the last couple of years and there are quite a few a good looking buildings, some with landscaping and attractive designs. She pointed out that if Homer wants to draw in visitors it needs to be figured out how Homer should look. A town center with park and trails or nine acres of concrete in the middle of Homer with rows of RVs surrounding a seventy thousand square foot ugly box. Does Homer want Kachemak Drive to look like Diamond Boulevard in Anchorage, by filling in all the wetlands and letting Walmart, Home Depot, Dominos, Johnson Tires, et cetera come in. She disagreed with the attitude that this is Alaska and that everyone should be able to do what they want, emphasizing that the City of Homer needs to have a clear plan. She encouraged the Council to look at the assessment by the Planning Commission.

Mary Lentfer commented on the number of small businesses in Homer that enhance the quality of life. She said that she is not in favor of a large outside store coming here, but there may be a need for more groceries and a small box store might be appropriate.

Larson Klingel voiced support of the size restriction on stores, noted that there have been several meetings on this issue on the size and architect. He commented on taxes and box stores. He expressed his opinion that the whole issue has really missed the point as far as the basic question, is it economically beneficial to Homer? He advised the Council that he has been to several meetings, asked several questions and that quite frankly some of the answers he has received are quite deploring. He inquired if the City of Homer has done any cost benefit analysis on large retailers that takes into account inflation, population growth and gives the City a time value of money for up front costs that it has to put in for the box store? On utilities, schools, social services, and things of the like? He commented on the data provided to him by the Kenai Peninsula Borough Economist, who told him that her data does not count small businesses since they do not generally take in salaries in the way that Walmart, K-Mart or other large businesses do. He voiced his opinion that this is a fallacy and bet that seventy percent of this City's tax revenue comes from the Mom and Pop small businesses. He asked the Council if there has been any economic study done that takes into account and gives value to the environmental assets that Homer possesses and how those assets add to the tax base? Any study done on the economic multiplier that is lost when comparing a Fred Meyer to a Ulmers? He stated that this is significant and that he has read the Planning Commission web page and that it is generally a good thing; however, noticed that there are all these conditions set out with no consideration given for what happens if the plan that the box store puts out falls short, what is the penalty? He relayed that he has written a lot of contracts and there is always; you do this, I do this and if you don't do this then I'll punch you in the face. He emphasized that there is no penalty and there should be economic penalty for Fred Meyer or any other box store who submits an application to the City and says that these things will happen. He suggested giving five years and then if it does not happen there has to be some kind of economic punishment. Something else that should be considered is a something along the lines of a gross business tax, above a certain level such as five million dollars. That would not affect the small businesses and would kick in and affect businesses that rely on an high volume of low margin. He stated that the would also like to see a one percent for green space similar to the one percent for the arts to provide funds to the City to, perhaps, purchase more park, preserve more land in the City for green space.

Don McNamara thanked the Council, voiced his support for the twenty thousand square feet, that this is plenty big enough and almost the size of football field with set back and parking lots. How many football fields do you want in downtown Homer.

Debbie Poore advised that she has been living in Homer for over twenty five years, long enough to know that it is very difficult for this town to agree on beauty, however, that she also knows that there would be agreement that beauty affects each very profoundly. She emphasized that Homer is in a very beautiful area and that she would like to see the town reflect that beauty more. She shared her memories of Homer, as a child, being a beautiful town, when she lived in Kenai. Kenai is not like that and has not grown that way and has lots of box stores up there, they do not have a book store nearly as nice as Homer's nor a toy store nearly as nice as Homer's. Locally owned small businesses and a central part of Homer built to a human scale with as much gardening and landscaping as is possible is a healthy environment to live in and is a wonderful legacy to give to the future.

Valerie Connor stated that she has lived here for twenty two years and thanked the Council for their recent decision to upgrade the Planning Department, interjecting that this issue (Ordinance 03-25) has clearly shown the need for more planning. She reported that over the past month she has discussed this mega store idea with a number of people and most are really opposed to the idea, but the ones that are in favor sited prices and availability of goods as prime reasons. She voiced her opinion that the size cap will do nothing to prevent other stores from coming here, adding that Homer just does not need a sixty thousand square foot store. One of the most basic laws in nature and economics is that when there is a void something takes advantage of that space. If there is money to be made selling groceries in Homer another store will open its doors. Instead of feeling restricted about what is not readily available here, maybe all that is available should be considered. She stated that she is truly amazed to go to the store and buy bananas from Equador, wine from France, clothes from Thailand and tools from Canada. It is all here in this little town. There are many who believe that a mega store does not fit Homer, Homer really is a special place and it would be a travesty to let it develop into another town. She asked the Council to please vote for a twenty thousand square foot cap in the CBD and continue work on other options such as zoning, architectural standards and to encourage a mandate on new developments to take into consideration such things as flora, fauna, drainages and pedestrians. It isn't that hard to do. It just takes some forethought and a little bit of heart.

Maryclaire Foecke commented on living in the area for eleven years, that she has come before as an individual and that she is an individual tonight and is representing a group that is called Citizen Advocates for Planning with the acronym of CAP. She advised that CAP began as a loosely organized group of individuals from the Homer area who joined together to bring the work of the City Council and of the Planning Commission to the public who do not attend the Council and Commission meetings, to seek their input regarding the cap for large retail and wholesale stores. She reported that CAP wanted to provided a broader forum for other Homer area residents to express their support and to poll, to find out where opinions weighed in and to express support of sustainable local economic development and planning that is in keeping with the City's Comprehensive Plan. She stated that they are enormously grateful for the enumerable hours that the Planning Commission has put into and devoted to the issue of local economic development and recognizing that the size cap is only a preliminary step in the process of more comprehensive planning, that is fairly obvious. She reported that the Homer area local residents have agreed in great number that a such a cap is a critical tool. She said that she was going to hand in the petition, that they have collected about six hundred and sixty signatures, but figuring that this vote may get postponed they will obtain more signatures. Over half of the signatures are from Homer City residents. She briefly advised that there is a cover letter that will get submitted with the petition and that they do all appreciate Council's foresight in setting planning standards that will shape the quality if life for Homer for generations and that she believes the work that the Council is dong now is critical. She thanked the Council for the dedication and for considering many voices. She read from the petition, adding that there are a bunch of whereas clauses: Now, therefore, the undersigned do hereby request the Homer City Council to support a retail and wholesale size cap of twenty thousand square feet inside the CBD and to prohibit all large warehouse box store development within Homer City limits by implementing planning tools that promote small diverse wholesale and retail stores and aesthetic economic development.

Rick Foster, Planning Commissioner, thanked the Council for the opportunity to speak to them and to be on the Planning Commission. He drew their attention to some points regarding the survey, of which some Councilmembers have been using as an indicator that fifty six percent of the residents are in favor of large stores. He elucidated what he considers to be an appropriately worded and processed survey and that he did not agree with the biased phraseology and the processing of the City Wide Survey. He advised the Council regarding statistics, survey testing and some inaccurate information that the National Research Center had provided regarding surveys. He indicated that the survey was unprofessionally approached. He pointed out that the mention of Fred Meyer, in the survey, biased the question and that comments about desiring large franchises may have all come from one person and nobody knows whether this was someone who does not like Safeway or who really likes Fred Meyer.

Al Waddell commented that he kind of disputes some of the things that Rick Foster is saying. He inquired if the Council thinks that seventy three percent of the people in Homer vote? He said that he wished that many did vote, wished that fifty percent voted. He mentioned trying to move the state capital for years and as such people just don't seem to understand how to vote, he guesses, just seems like it always comes out the same. He said that it sounds like some of the residents are not in favor of another mall in town and guessed that Scott Ulmer has that sewed up. He noted that he has said over and over and over again that a building is a building is a building. He pointed out that a mall is many small businesses, usually with one anchor. He addressed one of Bill Smith's comments that this could be defended in court, adding that he truthfully hopes that it can. He emphasized that the Council has the power, tonight, to declare that this City is tired of its no growth, no business reputation. He encouraged the Council to look ahead and hang out the large welcome sign to new, new and existing business and to the rights of the property owners to help the City grown and prosper with jobs and development for everyone. He voiced objection to any kind of building cap in the CBD and stated that the CBD is zoned for large and small businesses. He asked why is it that Homer has to have any kind of linear length of a building at two hundred feet, citing Mr. Evarts and Mr. Ulmer's buildings. He urged the Council to please have some building lengths for Al Waddell and maybe even Spenard Building Supply and to give them the chance to develop their own property and to not take away from property rights. He commented on Resolution 03-69(S), about many people coming to the Council to protest the Patriot Act and that the Council better take a look at big brother in this town. He named Planning and Zoning, HCC 21.30.070, inspections, right of entry on the new zoning enforcement, a. subject to subsection b. of this section, at any reasonable time the administrative official, planning director or other staff member designated in writing, by either of them, may upon presentation of proper identification, enter upon and inspect any land, any building, or premises where he or she has probable cause, reasonable cause to believe there exists a violation, or enter upon any land, building or premises to perform a duty of a official under this title. He voiced his opinion that this is bordering on some situations called search warrants.

Mayor Cushing called for a recess during public comments at 8:27 p.m. reconvening the meeting at 8:42 p.m.

Jeanne Parker voiced support of small business and the twenty thousand square foot size cap in the CBD. She commented about directing traffic this past weekend for the runners and that on the corner of the Bypass and Main she looked down at the old Inlet and it looks really nice down that direction, up at Main Street it looks really nice and glanced over west it looks really bad and scary and on the corner and there are those available lots with signs. She stated that it is just a scary thing for her to imagine that things could change in a big way right there. She relayed a comment from her parents from when they visit about the availability of things here. Homer has, because the residents require it for their quality of life, an excellent library, excellent museum, locally generated and outside performances and these are the things that are needed in Homer as a community. She voiced her thought that if the Council would encourage consumerism and just availability of goods rather than quality of life, these other things may be lost. Homer needs to treasure what it has and treasure that it has the ability as a small town to really satisfy the cultural and quality of life needs. She encouraged recognition that any rapid, unharnessed development can change that in a big way.

Donna Rae Faulkner commented on being involved in some of the early town square meetings and that she just wanted to make sure that her voiced was heard, adding that she appreciates Council listening to everyone. She voiced support of the wisdom and recommendation of the Planning Commission in supporting the size cap. She stated that she loves Homer a lot and noted the support of the Heritage Land Trust in creating an attractive pedestrian friendly town and hoped that it could stay that way and that Homer would keep its unique quality. She wished the Council good luck and reiterated her thanks to the Council and Commission.

Kevin Hogan commented on the size cap and suggested that this be given a title of unilateral limits on merchandising and economic resources, adding that it has a good acronym. He stated that Homer has a history of meaningless legislation, not welcoming entities into the town. McDonald's came to town and Homer had to have a sign ordinance to keep out the golden arches. Very few other businesses are in compliance with the sign ordinance, a complaint driven ordinance, but Homer showed McDonald's that they are not welcome, but they are still here. The Navy talked about coming to town and Homer had to have Nuclear Free Ordinance. Homer did not have nuclear proliferation, but Homer was going to tell the Navy that they were not welcome. It really does not matter how the community weighs in on this, majority or minority. He commented on the survey, wherein a majority of people did want larger economic opportunity and enterprises in this town. He encouraged the Council to look at, in passing legislation, what are people's rights, adding that it does not matter if ninety nine point five eight percent of the people in this town are opposed to something, if it infringes on someone's rights it is wrong. Freedom of choice. People should be able to shoe wherever they want not businesses that are dictated as being aesthetically pleasing and in concurrence with the cosmic psyche of a group of individuals who want to tailor the town to their prejudices. He emphasized that a lot of this is bout prejudices. He reported that he keeps hearing about the evils of consumerism, corporate culture, big business. When big people's toes are stepped on, all toes are stepped on. This amounts to co defying people's prejudices. He advised that he went to one of the Planning Commission meetings to testify and was one of the few who testified against the box store ordinance and one of the few whose testimony was limited. He related this to a freight train heading down the tracks that is not going to be stopped, going to end up in court, because it amounts to a taking. This is taking people's property values, such as Mr. Waddell's property that will lose value if this ordinance goes into effect and the same with CIRI. Restrictive ordinances, such as this, are not planning and are obstructionism. He likened this to a bus going down the road and out the front window is planning. There are some things regarding site locations, property use that are properly addressed by planning, but with this there is an obvious agenda and a message being sent out. He voiced recognition that this is probably going to go through kicking and screaming is not going to do much good, however, the testimony is not representative of most of the community. He commented on being at a box store in Anchorage a few weeks ago and could not get through the front door of the store, because he was so busy talking to people from Homer. He emphasized that Homer is sending huge amounts of money up the road, because there are not opportunities for commerce in this town. He informed the Council of purchases he made in Anchorage and the pricing he did in Homer of these same products, although of lesser quality, inferior quality. He stated that the business owner in Homer could have gone and bought those items retail in Anchorage, not wholesale, added thirty percent, paid for not just the freight on those items but the entire semi truck to Homer and still had three hundred dollars to spare, bringing the truck load amount to six hundred dollars for freight. Therefore, he noted, there is some justification to the cost of living being that much higher in Homer than in Anchorage. He encouraged the Council to be sure of what they are doing.

Sue Post thanked the Council for the chance to speak and voiced her pleasure with the report that Bill Smith gave and for the work by the Planning Commission on the issue of the large wholesale and retail. She acknowledged that the Commission examined many aspects of the effect that a large store would have on a small community such as Homer and considered traffic, environmental, economic, long term planning and other various things. She noted that the Planning Commission did sit through many hours of testimony just as the Council and voiced her thanks for providing an opportunity to let the citizens speak. She voiced her faith that the Council will consider this issue very carefully. She reaffirmed her support of a size cap of twenty thousand square feet in the CBD and through out all of the districts. She suggested that, perhaps, Homer will see some new businesses that will fill some of the voids that people say exist, but not if there is a looming threat of a large mega corporation opening, adding that no one in the right mind would open a store knowing that it might not succeed. In contrast to what Kevin Hogan said, she relayed that at her store there were multiple Anchorage people running into each other. She voiced her hope that soon there would be some zoning enforced and that she is one citizen of this area who is getting really tired seeing some corporations from out of town really take advantage of some things such as an unnamed box store on the Bypass who can't seem to park its loading trailer in the proper place.

Tom Bartlett commented that he wears many hats; Planning Commissioner, Chamber of Commerce Board of Directors and Small Business Owner. He commented that there are a lot of components to this issue that need to be considered and that they have been considered to a great effect. He emphasized that tonight he is speaking to the Council as a private citizen. He advised that as a Planning Commissioner he was on the ultra end things in his debate aspect and that he wanted the Council to know that he truly conformed to the end that the twenty thousand square foot cap in the CBD is the right square footage to use and that it really all boiled down to what do we want Homer to be like, not only for our generation, but for future generations. That does not preclude the effect that later on other Commissions and Councils and so forth cannot change, even though there is language within the proposed ordinance that restrict that for right now. The recommendations by the Commission are the right ones to make, therefore, he highly recommended that the Council take those very seriously, follow through and adopt those as part of the future ordinance.

Rika Mouw thanked the Council for listening to her, for she did not know how many times. She stated that she did not know what else she could come up with, but now, speaking after Tom, who was not behind the twenty thousand square foot cap has come around, noted that the work of the Planning Commission is so remarkable and so powerful that if they are not listened to that, she feels, there will be some irresponsibility going on. She asked for each Councilmember to really listen to the Planning Commission, because they really did their homework and they care. She stated that she thinks that the Council really cares about this town, this City, about Homer and encouraged the Council to please listen to the Planning Commission, that she backs them up one hundred percent and urged the Council to please listen to all those who have spent time on this issue.

RECONSIDERATION

CONSENT AGENDA

(Items listed below will be enacted by one motion. If separate discussion is desired on an item, that item may be removed from the Consent Agenda and placed on the Regular Meeting Agenda at the request of a Councilmember.)

A. Homer City Council unapproved meeting minutes of May 27, 2003 Regular Meeting. Recommend approval.

Deleted from the agenda.

B. Ordinance 03-34, Of the City Council of Homer, Alaska Amending Ordinance 03-22(S), Grant for Traffic Safety Saturation Patrol and In Car Video Systems. Finance. Clerk. Fiscal Note: Change from Revenue and Expenditure Acct. 151-739, $108,305.00 to Acct. 151-780, $94,851.00. Recommend introduction, Public Hearing and Second Reading June 23, 2003.

C. Ordinance 03-35, Of the City Council of Homer, Alaska Accepting and Appropriating a Reimbursable Grant of $2.500.00 from the U.S. Fish and Wildlife Service for Interpretive Information at Parks and Authorizing the City Manager to Execute the appropriate Documents. Finance. City Clerk. Fiscal Note: Revenue and Expenditure Acct. 151-782, $2,500.00. Recommend introduction, Public Hearing and Second Reading June 23, 2003.

D. Resolution 03-84, Of the City Council Amending the Council's Operating Manual to Include the Tentative Agenda Process. Mayor. City Clerk. Recommend adoption.

E. Resolution 03-85, Of the City Council of Homer, Alaska Recognizing and Supporting the Kachemak Shellfish Industry and its growth in Homer. Mayor. Recommend adoption.

Placed under Resolutions as Item B.

F. Memorandum 03-73, from City Manager, Re: USCG Lease of Lot 20. Fiscal Note: Revenue Acct:$825.83 per month. October 1 - September 30. Recommend approval

G. Memorandum 03-93, from City Manager, Re: MOU with Library. Recommend approval.

H. Memorandum 03-94, from City Manager, Re: CIP List Development/Schedule. Recommend approval.

I. Memorandum 03-95, from Mayor, Re: Establishing the Beach Policy Standing Committee and Appointing Pat Cue, Mary Lentfer and Bill Smith as Committee Members. Recommend approval.

Placed under New Business as Item A.

FENSKE/BECK - MOVED FOR THE ADOPTION AND/OR APPROVAL OF THE RECOMMENDATIONS OF THE CONSENT AGENDA AS READ.

VOTE: (With the exclusion of Item A. E and I. ) YES: NON OBJECTION. UNANIMOUS CONSENT.

Motion carried.

VISITORS

A. Charlie Franz, South Peninsula Hospital Administrator, Re: Hospital Expansion.

David Green Chair of the Hospital Service Area Board made the presentation, elucidating the need for the hospital expansion. The new expansion will included an additional and new emergency room with clinic space for visiting specialists, a nursing wing with eight single occupancy patient rooms to improve patient privacy and comfort, expansion of the diagnostic imaging department, remodeling of the surgery department to improve efficiency and provide a more comfortable space for the day surgery patients, and additional space for support services including laundry, nutrition services and medical materials. The project is estimated at seventeen million dollars, will be funded with four million dollars in retained earnings from tax revenues, ten and one half million dollars in bonds and two and one half million dollars to be generated from hospital operations over the next three years. Bonds will be paid with one mil of the current one point seventy five mil tax levy. The remaining point seventy five mil will be used to maintain the facility and provide funds for equipment improvements. the project was designed to be built within the existing tax levy with no increase to property tax. The mission of the hospital is to promote and improve community mental health and wellness by continually bettering the facility and services. The special election is July 1st and is a by mail election. As soon as ballots are received they need to be sent back to the Borough Clerk. It is expected that this expansion will meet the needs for the next fifteen to twenty years. This project adds approximately twenty five thousand square feet of new space and remodels approximately eleven thousand square feet of exiting space. Construction is scheduled to begin in 2003 with a completion date of December 2005.

B. Cook Inlet Keeper, Bob Shavelson, Re: Coal Bed Methane Drilling

Information was distributed to the Council; A Primer: Coal Bed Methane (CBM) Development and Production in Alaska. Mr. Shavelson apprized the Council of the situation in the Cook Inlet area and that the exploration can have potentially detrimental impacts on riparian and terrestrial ecosystems as well as human and animal health. The gas cannot be extracted without relieving the water pressure or dewatering. CBM has been controversial in the lower forty eight, because of the large quantities of water involved and the implications for surface estate owners. CBM development may affect underground water quantity by diminishing it as dewatering occurs, groundwater may be contaminated by mineral-laden discharged water and local ecosystems may be adversely affected by the surface release of large quantities of water. The first exploratory well in Alaska was drilled in 1994 near Wasilla. The Alaska legislature enacted House Bill 69, which creates additional incentives for CBM development and allows, among other things, the State Department of Natural Resources to preempt local ordinances regulating CBM development if the state makes a finding of "over riding state interest". Three coal basins have been identified North Slope Basin near Wainwright, Alaska and Kenai Peninsulas and the Yukon Flats Basin near Fort Yukon. Shallow Gas Leases give the holder the right to explore for, produce and sell natural gas from any reservoir to a depth of three thousand feet below the ground surfaces. Setback distances apply to gas production near ownership boundaries. He emphasized the concern with the local government ordinances being overridden regarding land use issues. He reported on some problems already in the Cook Inlet Basin, wherein Unocal came in and went through private property and cleared trees, built roads, drilled wells and did not have the surface property owner's consent. He told the Council that he is bringing this to their attention because in Alaska the subsurface estate is dominate to the surface estate and that this implicates property rights, water quantity and quality. Mr. Shavelson advised that he would be leaving a packet of information with the City Manager and that within this packet are the mitigation measures that attach to the Southern Kenai Peninsula leases.

ANNOUNCEMENTS/PRESENTATIONS/BOROUGH REPORT/COMMISSION REPORTS

A. Mayoral Proclamation - Youth Appreciation Week, June 9 - 15, 2003.

B. Mayoral Proclamation - Daisy Lee Bitter Day, June 14th, 2003.

Mayor Cushing recognized Jane Alberts, staffer for Senator Gary Stevens.

PUBLIC HEARING(S)

A. Ordinance 03-30, Of the Homer City Council Amending Homer City Code Section 21.28.010, Title for Citation-- Jurisdiction, to Include Reference to the Bridge Creek Watershed Protection District. Clarifying Ordinance. City Clerk in consultation with City Attorney and Acting City Planner. (First Reading 05/27/03, Public Hearing and Second Reading 06/09/03).

There was no public testimony.

LADD/KRANICH - MOVED TO ADOPT ORDINANCE 03-30 BY READING OF TITLE.

Council recognized that Kenai Peninsula Borough Ordinance 99-47 was in the packet and that it did authorize the City of Homer to exercise extraterritorial jurisdiction in the Bridge Creek Watershed for the purpose of protecting the City's water supply and watershed.

VOTE: YES: NON OBJECTION. UNANIMOUS CONSENT.

Motion carried.

B. Ordinance 03-31, Of the City Council of Homer, Alaska, Accepting and Appropriating a Reimbursement Grant of $6,605.00 from the Alaska Department of Transportation and Public Facilities Division of Measurements and Standards/Commercial Vehicle Enforcement and Authorizing the City Manager to Execute the Appropriate Documents. HPD. City Manager. Fiscal Note: Revenue and Expenditure Acct. 151-731, Commercial Vehicle Inspections. (First Reading 05/27/03, Public Hearing and Second Reading 06/09/03).

There was no public testimony.

FENSKE/KRANICH - MOVED FOR THE ADOPTION OF ORDINANCE 03-31 BY READING OF TITLE FOR SECOND AND FINAL READING.

There was no discussion.

VOTE: YES: NON OBJECTION. UNANIMOUS CONSENT.

Motion carried.

C. Ordinance 03-32(A), Of the City Council of Homer, Appropriating $25,000.00 from the Animal Shelter Account to Formalize the Plan for Construction and Authorizing the City Manager to Execute the Appropriate Documents. Fenske. Fiscal Note: Acct. 151-728, amount not identified. (First Reading 05/27/03, Public Hearing 06/09/03, Second Reading 06/23/03).

There was no public testimony.

D. Ordinance 03-33(S)(A), Of the City of Homer Extending Section 1 (A, B, C, AND D), Section 2 and Section 3 of Ordinance 02-53(S)(A) for a Period of Six Months, and During this Time Frame the Planning Commission will Submit and the City Council will Act Upon a Proposed Ordinance Containing Criteria Standards for the Site Development, Utilities and Services, Environmental, Community, and Fiscal Impacts used to Assist in the Development and Assessment of Large Retail and Wholesale Structures. Ladd. (First Reading 05/27/03, Public Hearing and Second Reading 06/09/03).

Al Waddell testified that his wish is that everyone think very carefully about what is going on. He pointed out that not everything fits and urged the Council to, please, see if they can make it fit for everyone in the community. (To demonstrate this Mr. Waddell put a rubber glove on one of his hands and then tried to put on a small mitten over the rubber gloved hand.)

Memorandum 03-98, from Councilmember Fenske, Re: Conditional Use Permit/Building Standards for Large Retail Stores.

LADD/BECK - MOVED FOR THE ADOPTION OF ORDINANCE 03-33(S)(A).

Council discussed the pros and cons of the extension. Concerns were expressed that the criteria for standards for site development, utilities and services and the environmental, community and fiscal impacts need to be in place to assist in the development and assessment of these large stores. There were concerns expressed that extensions can continue and this issue could go on forever. It was expressed that conditional use processes already in place may sufficiently address the concerns.

VOTE: YES: NON OBJECTION. UNANIMOUS CONSENT.

Motion carried.

Mayor Cushing called for a recess at 9:50 p.m. reconvening the meeting at 10:08 p.m.

ORDINANCE(S)

A. Ordinance 03-23(A), Amending Homer City Code Chapter 21.30 to Make Provisions for Enforcement of Zoning Code Violations. Planning Commission. (First Reading 04/28/03, Public Hearings 05/12/03 and 05/27/03, Second Reading for 06/09/03.).

BECK/YOURKOWSKI - MOVED TO ADOPT ORDINANCE 03-23(A) BY READING OF TITLE.

There was a brief discussion in favor of the Ordinance with some concerns regarding verbiage within the ordinance and a desire to have legal advice from the City Attorney or an opinion.

YOURKOWSKI/LADD - MOVED TO POSTPONE AND SCHEDULE/PUT ON THE COMMITTEE OF THE WHOLE FOR NEXT MEETING AND ON MAIN AGENDA FOR FINAL READING.

Council discussed postponing to enable them the opportunity to forward questions for the City Attorney to the City Manager as soon as possible so that the City Attorney may submit a response by packet deadline on Wednesday, June 18, 2003, 11 a.m. Council will decide if they need to conduct a teleconference with the City Attorney, which, if needed will be held at 5 p.m. during the Committee of the Whole. The City Clerk will notify the City Attorney regarding teleconference. City Manager will forward the questions to the City Attorney and advise him of the packet deadline for any written response.

VOTE:(postponement) YES: NON OBJECTION. UNANIMOUS CONSENT.

Motion carried.

B. Ordinance 03-25, Amending the Homer Zoning Code to Limit the Size and Dimensions of Buildings Used Primarily For Retail or Wholesale Business. City Council. Planning Commission..(First Reading 04/28/03, Public Hearings 05/12/03 and 05/27/03, Second Reading for 06/09/03 will be postponed if there is not a full Council.).

Substitute from Planning Commission

Memorandum 03-96, from Ladd, Informational.

Memorandum 03-97, from Port/Harbor Commission, Input.

Memorandum 03-98, from Councilmember Fenske, Re: Conditional Use Permit/Building Standards for Large Retail Stores.

Memorandum 03-99, from Acting City Planner, Re: Planning Commission Findings of Fact and Decision with Unapproved Planning Commission Minutes of June 4, 2003

FENSKE/LADD - MOVED TO ADOPT ORDINANCE 03-25 BY READING OF TITLE FOR SECOND AND FINAL READING.

FENSKE/LADD - MOVED TO SUBSTITUTE ORDINANCE 03-25(S).

VOTE: (primary amendment 1.) YES: NON OBJECTION. UNANIMOUS CONSENT.

Motion carried.

FENSKE/BECK - MOVED TO POSTPONE ACTION TILL NEXT REGULAR MEETING SO EVERYONE HAS AN OPPORTUNITY. (Will still require full Council)

Motion withdrawn before recognized.

LADD/KRANICH - MOVED TO AMEND TO REPLACE SUBSECTIONS ENTITLED BUILDING AREA AND DIMENSIONS - RETAIL AND WHOLE SALE IN SECTIONS ONE, TWO, THREE, FOUR AND FIVE WITH THE FOLLOWING, AND I'LL PASS THIS OUT TO EVERYBODY: IT SAYS, ONE. ANY BUILDING THE MAIN USE OF WHICH IS RETAIL BUSINESS, WHOLESALE BUSINESS, OR A COMBINATION OF THE TWO SHALL NOT EXCEED 40,000 SQUARE FEET OF FLOOR AREA. NUMBER TWO. BUILDINGS SITUATED UPON A SINGLE TRACT UNDER THE SAME OWNERSHIP SHALL BE COMBINED FOR PURPOSES OF THIS LIMITATION. NUMBER THREE. A CONDITIONAL USE PERMIT OR VARIANCE MAY BE GRANTED THAT WOULD ALLOW A BUILDING TO EXCEED THE LIMIT OF THIS SUBPARAGRAPH BY THE PLANNING COMMISSION PROVIDED THAT ALL CONDITIONS, IMPACT STANDARDS AND PROCEDURES SET BY THE CITY OF HOMER AS APPLY TO THE INTENDED DEVELOPMENT ARE MET. (Does not apply to sections six and seven.)

Council comments included:

• History of the ordinance

• Mission of the Large Store Impact Task Force

• Mission of the Planning Commission.

• There are several stores currently existing that are over the proposed twenty thousand square foot cap and that are closer to forty thousand square feet of floor area.

• The economic data supports the forty thousand in terms of the well being of the community, and the larger stores generate more tax revenue.

• Emphasis needs to be placed on standards and conditions rather than on setting a size cap.

• There is an existing conditional use process for anything over eight thousand square feet.

• The amendment addresses and balances all concerns of the area including current store owners.

• Provides consideration of other tools.

• If there is a smaller cap in the CBD there is a good chance of causing some of the future business to locate in the outlying areas of the City.

• No one wants to see the business area of Homer spread out any farther than it is right now. Even if there were trails in Homer, it would be difficult to park in the middle of town and do shopping.

• Wrong to purposefully push business several miles further separated than right now. This would exasperate the situation.

• Same cap all across the board and expand and enhance the conditional use permitting process.

• The community can be maintained with design criteria for buildings, parking areas, green belts, lighting and etcetera. Still have the quality of life and products that the community need.

• Dissatisfaction was expressed with the forty thousand square feet.

• Did those of the Council who voted in favor of the amendment listen, at all, to the public testimony, comments and input.

• A properly designed building taking into account its surrounding can be a great asset regardless of its size.

• Concern expressed that with a smaller than forty thousand square foot cap, such as the twenty thousand square foot cap, Fred Meyer would locate someplace like Anchor Point and pull business away from Homer.

• A forty thousand square foot cap may promote Fred Meyer to locate in Homer with a grocery store and increase the business to the other businesses in town by drawing business into Homer.

• Information the Council has and has had before them supports twenty thousand square feet.

• Forty thousand square feet is not monumental in the overall picture, nor is it any where near the references to those stores well over one hundred thousand square feet.

• There has not been enough time to digest the Planning Commission Findings of Fact and Decision.

YOURKOWSKI/BECK - MOVED TO POSTPONE TO NEXT REGULAR MEETING WITH THE CONDITION OF A FULL COUNCIL FOR FINAL ACTION.

There was some discussion regarding postponement.

Mayor Cushing passed the gavel a couple of times.

VOTE: (postponement) YES: YOURKOWSKI, BECK.

NO: STARK, KRANICH, FENSKE, LADD.

Motion failed.

Council discussed voting on the amendment before any postponement. Public input in person and the survey results were reiterated. There were pros and cons expressed regarding the amendment particularly with item 3. A conditional use permit or variance may be granted that would allow a building to exceed the limit of this subparagraph by the Planning Commission provided that all conditions, impact standards and procedures set by the City of Homer as apply to the intended development are met :

• The conditional use permit and variance grant greater flexibility.

• The conditional use permit and variance are very open ended.

• Conditional User Permits are not denied.

• Could end up with a huge, huge building much greater than forty thousand square feet, with no control where it goes.

• Item 3 is scary and does away with all the work by the Council, Large Store Impact Task Force and the Planning Commission and their findings.

• There needs to be a safety valve so that things happen according to the conditions that Council is not able to foresee on June 9, 2003.

• Already have conditional use process for anything over eight thousand square feet and just extended for six months that anything over thirty thousand square feet has a list of criteria to follow.

• During this six month period the conditional use process needs to be expanded or broadened.

• The development standards will carry more weight than the square footage.

• There are sufficient tools in the tool box, in addition to the forty thousand square foot cap.

VOTE:(primary amendment 2 - forty thousand square feet) YES: STARK, KRANICH, FENSKE, LADD

NO: BECK, YOURKOWSKI.

Motion carried.

FENSKE/LADD - MOVED TO POSTPONED ACTION ON THE MAIN MOTION AS AMENDED TILL NEXT MEETING WITH ALL THE COUNCIL PRESENT.

FRIENDLY AMENDMENT - TO CONDUCT ANOTHER PUBLIC HEARING AT THE NEXT MEETING.

There was a comment about postponing until the next election.

VOTE: (postponement ) YES: NON OBJECTION. UNANIMOUS CONSENT.

Motion carried.

C. Ordinance 03-29(A), Of the Homer City Council Amending Homer City Code Section 17.04.030, Improvement Districts--Formation and Assessment. Directed by Mayor and Council. City Clerk (First Reading 05/12/03, Public Hearing 05/27/03, Second Reading 06/09/03).

C.1. Ordinance 03-29(S), Same title. Includes the amendment and elucidative language has been added regarding the project cost estimate and assessment estimate.

Memorandum 03-89, from City Clerk as backup.

KRANICH/YOURKOWSKI - MOVED FOR THE ADOPTION OF ORDINANCE 03-29(A) BY READING OF TITLE.

KRANICH/LADD - MOVED TO AMEND TO ADOPT ORDINANCE 03-29(S).

It was noted that the HARP (Homer Accelerated Roads Program) is addressed in the substitute.

VOTE: (primary amendment 1.) YES: NON OBJECTION UNANIMOUS CONSENT.

Motion carried.

VOTE:(main amended motion) YES: NON OBJECTION UNANIMOUS CONSENT.

Motion carried.

D. Ordinance 03-36, Of the City of Homer Prohibiting Smoking in Public Buildings, on Identified Public Properties and in Vehicles and Watercraft Owned by the City of Homer. Ladd. Kranich. (First Reading 06/09/03, Public Hearing 06/23/03, Second Reading 07/14/03.)

STARK/BECK - MOVED TO ADOPTION ORDINANCE 03-36 BY READING OF TITLE FOR FIRST READING AND INTRODUCTION.

There was a general discussion. It was noted that the City departments already are smoke free, that non entryway designated smoking areas need to be assigned, that there should be no smoking in the City vehicles or watercraft and that signage may be necessary.

VOTE: YES: NON OBJECTION. UNANIMOUS CONSENT.

Motion carried.

CITY MANAGER'S REPORT

A. City Manager's Report (Updates/Follow-up, Employee Anniversaries (Bob Painter HVFD 12 years, Laurie Moore Finance 7 years, Audrey Mullen Admin. 2 years, Nathan Hull HPD 1 year and Levi Stradling PWD 1 year.), Carol Swarts Consortium Libraries, Fred Meyer/Thank you letter, Habitat for Humanity action for next meeting, Homer Foundation Grant Award, Fred Meyer Email/Economic Leakage, Letter to Senator Gary Stevens from DMV, Letter fo Commendation Harbor Officer Bryan Hawkins, Scenic Byways Trip Report Anne Marie Holen, Homer Foundation March 2003 and Public Works/Old Timber Dock.)

1. Memorandum from Acting City Planner, Re-cap of Planning Commission meeting of June 4, 2003.

B. Bid Report

There was lengthy a comments regarding the report. Much concern was expressed regarding the closure of DMV with reluctance for the City to take on this endeavor, notation that this is a State responsibility and suggestion was made that the Borough could do this service. The commendation to Harbor Officer Hawkins was specifically mentioned, emphasizing the importance of twenty four hour coverage at the harbor. Governor Murkowski's budget cuts were noted with chagrin. Concern was expressed for the stability of the Scenic Byways money and the Water and Sewer Master Plan money. Support was expressed for donation of Lot 28, Bear Creek Heights to Habitat for Humanities, which is adjacent to Lot 27, already donated. This will be on the June 23rd meeting unless research by the City Clerk reveals that Council already approved donation of both lots. Ocean Drive Loop Bluff Erosion Control project was mentioned. City Manager Wrede reported that staff has some questions that they are getting answers to and advice from the City Attorney. The City Manager will report back to the Council either through Executive Session or written report at the next meeting regarding the Ocean Drive Loop Bluff Erosion Control Project. It was reported that Kirk McGee, CIRI, continually expresses interest in the Town Square Project and that CIRI is interested in partnerships and land trades to assist with bringing the Town Square Project ideas to fruition. Access easements for the Bridge Creek Land Purchase are being addressed, there are requirements that were on the deed when the land was transferred to the University and has therefore been transferred to the City. The concern with the access easement is the unknowns regarding motorized vehicles, which is addressed through the City's Ordinance. The skateboard park equipment has been delivered, Yoshidas have donated some money toward the equipment. Council suggested that the Manager follow up on the action they took regarding rules needing to be in place for use of the skateboard park etcetera, adding that this is timely for the development of rules. The skateboard equipment company person that is coming to assist with the assembly of the equipment will be here July 13th, therefore the Skateboard Association has until July 13th to come up with the final four thousand dollars as previously agreed upon with the City.

COMMITTEE REPORT

PENDING BUSINESS

NEW BUSINESS

A. Consent Agenda Item I. Memorandum 03-95, from Mayor, Re: Establishing the Beach Policy Standing Committee and Appointing Pat Cue, Mary Lentfer and Bill Smith as Committee Members. Recommend approval.

KRANICH/BECK - MOVED TO APPROVE THE RECOMMENDATION OF MEMORANDUM 03-95.

KRANICH/LADD - MOVED TO AMEND MEMORANDUM 03-95 BY ADDING THE NAME OF GORDON BERG, ALSO PLACED ON THAT COMMITTEE.

VOTE:(primary amendment) YES: NON OBJECTION. UNANIMOUS CONSENT.

Motion carried.

VOTE:(main amended motion.) YES: NON OBJECTION. UNANIMOUS CONSENT.

Motion carried.

RESOLUTIONS

A. Resolution 03-48(S), Of the City Council of Homer, Alaska Noting Public Works Acceptance of the Forest Glen Water and Sewer Improvement Project, Accepting this Project for City Maintenance and Forwarding the Assessment District to the Final Assessment Roll and Payment Process and Setting a Public Hearing Date of April 28, 2003. Public Works. City Clerk. Fiscal Note: HAWSP and Property Owners 50% each, project cost is $612,407.77. Postponed on March 24, 2003 to April 14, 2003. Main motion for adoption is on the floor, Postponed on April 14, 2003 to June 9, 2003. Requires an amendment to the Public Hearing Date to July 14, 2003. Page 303

Backup Emails for Resolution 03-48(S), regarding Subdivision Plats finalized for the Forest Glen LID

Main Motion on the floor as postponed on April 14, 2003. FENSKE/LADD - MOVE FOR THE ADOPTION OF RESOLUTION 03-48(S) BY READING OF TITLE.

FENSKE/YOURKOWSKI - MOVED TO AMEND TO SET HEARING DATE TO JULY 14, 2003.

There was no discussion.

VOTE: (primary amendment) YES: NON OBJECTION. UNANIMOUS CONSENT.

Motion carried.

There was no discussion.

VOTE:(main amended motion) YES: NON OBJECTION. UNANIMOUS CONSENT.

Motion carried.

B. Consent Agenda Item E. Resolution 03-85, Of the City Council of Homer, Alaska Recognizing and Supporting the Kachemak Shellfish Industry and its growth in Homer. Mayor. Recommend adoption.

FENSKE/LADD - MOVED TO ADOPT RESOLUTION 03-85 BY READING OF TITLE.

FENSKE/KRANICH - MOVED TO SUBSTITUTE RESOLUTION 03-85 WITH RESOLUTION 03-85(S).

It was stated that the oysters are tasty.

VOTE: (primary amendment) YES: NON OBJECTION. UNANIMOUS CONSENT.

Motion carried.

VOTE:(main amended motion) YES: NON OBJECTION. UNANIMOUS CONSENT.

Motion carried.

COMMENTS OF THE AUDIENCE

Audience comments upon any matter.

Steve Gibson voiced disappointment that the majority, Councilmembers Ladd, Fenske, Stark and Kranich, voted for this forty thousand square foot cap, that it seemed representative of ignoring not only the Planning Commission, which they praised so freely during the evening, but eighty to ninety percent of the public testimony. He shared his hope that the Council will hear more about this and that this is an ineffective decision in terms of the long term potential in the City of Homer and that they will be persuaded to reconsider.

Jeanne Parker commented that she too really feels the need to express extreme disappointment and that it just feels like they did not listen to the public. She asked what the deal is with public testimony, why do people come here, who were they listening to, and are people secretly talking to the Council. She said that she thought that public testimony was supposed to mean something and that the Council has had so much public testimony and then across the board the Council just says, "Okay, well you know we don't want to push them outside of Homer." She queried, so why not just go with twenty thousand across the board, that might fit some of the public testimony. She stated that some people like herself were trying to be a little bit political and a little bit compromising and not standing on the twenty thousand across the board and saying that if something bigger is needed don't put it in down town Homer. She said that she did not know who the Council is listening to and if this is the public process, there is going to be a lot of disappointment. She voiced her hope that people will return and talk to the Council about this again. She emphasized the word 'leakage' , stating that leakage occurs through a corporation that takes its money out of Homer and sends it off to someplace across the country. She told the Council to think about that leakage, noting that it is not the only leakage and then the costs. She pointed out that the Council has heard all of this and then turns around and just kind of slips it in here when people have gone home, because they didn't think Council was even going to vote on this tonight. Ms. Parker stated that this seems really unethical to her and that she is really discouraged, adding that she was feeling pretty good about the public process. She emphasized that she has carved a lot of time out of her life to come down here and speak, that she knows Council has as has the Planning Commission to work out this whole report that they can now use in their outhouse.

Bill Smith commented on the variances and conditional uses that the ability to zone is passed to "us" by the state and that part of what they passed is the ability to give variances under their conditions and not under the conditions that we might imagine that we would might like to grant variances. This is there to give some flex in the joints of zoning laws so that we don't take away all of someone's property rights or their ability to develop something. It is not there because Jo Blow's got fifty thousand so we have to give this guy fifty thousand, which is not at all a valid basis for offering a variance. He stated that the conditions that he sees written down for offering a variance creates for the City a lose/lose situation. If the Planning Commission were to grant a variance under that someone could quite likely sue the City for granting that variance because it counters state law, but if the City did not grant a variance then someone else could sue and it could go the other way. He emphasized that this really puts "us" in a very difficult position. The word "variance" means real specific things under state laws, was not in that it would be a much better condition. He advised that he had some problems with the fact that attorney put in that a variance cannot be granted under the original ordinance that he proposed. Being that it was the attorney and that not granting a variance is kind of a safer thing then saying that a variance may be granted under certain conditions. Mr. Smith stated that a variance creates complexities that he did not feel should exist. Regarding conditional uses, he stated that basically they could say that someone can't have a conditional use, but more usually conditional uses are like over eight thousand square feet, which there has been no occasion to address, has to meet a certain set of conditions. These conditions are no different than building a second principal building on a lot. The concept that there would be an upper limit to the building size is absolute or depends on conditions. The way this is written seems like there may as well not even be an ordinance to limit building size whatsoever. It reads that if it is over forty thousand and meets these conditions you get the permit, which means a person could have any building size if the conditions are met. He stated that if that is Council's intent that's fine, but on the other hand he wondered why, if that is Council's intent, "we" had to go through the last few months that we did. In speaking to the logic of different square footages in different areas, Mr. Smith voiced his desire to hear some logic that defends why more than twenty thousand square foot building on the Spit, for instance. Saying that having the different building size there than down town is going to detract from down town does not apply if that is twenty thousand on the Spit and forth thousand down town. He voiced his opinion that it is incumbent upon the Council to come up with some pretty good reasons, because the Commission looked at this pretty carefully and he does not think there are many defensible reasons for having large retail on the Spit.

Sue Post commented that she is also one of those that is quite disappointed. She personally thanked Councilmembers Yourkowski and Beck and Mayor Cushing for obviously listening to what the Planning Commission reported tonight and for listening to hours of testimony. To the rest of the Council, she said she believed they listened, but does not see this argument that forty thousand is needed across the whole table. She acknowledged that there are many towns out there that manage to have a really nice shopping part of town, with smaller buildings and larger buildings allowed out of a certain area. There is no reason why this would not work for Homer. There are clauses that can be put in that say an existing building of thirty thousand or whatever square foot could still enlarge by ten percent or fifteen percent. That could satisfy the need of some of the stores in town, if that is what the Council is trying to do, protect those who would like to enlarge right now. Forty thousand square feet plus forty thousand square feet of parking is a huge area. There is no way, even with architectural standards, that this can be attractive in the heart of Homer. She voiced her hope that the Council would consider some of this a bit more carefully and review some of the findings that the Planning Commission gave. She voiced appreciation for the Council opening the next meeting up for a public hearing and suggested planning on a long night.

Tom Bartlett thanked the Council for listening to all the testimony, conversation and input acknowledging that this is not an easy issue. What it boils down to is what do you want Homer to look like. As the amendment states, right now, Council is going to allow something a lot more than what you initially intended to do. If this amendment stands there can be a building over forty thousand square feet in the CBD. As a contractor, he pointed out that there is a difference between ten thousand, twenty thousand, thirty thousand and forty thousand square feet in how it impacts the town and areas of down town. The remaining land allowable in the CBD district and what Council wants this town to look like will have a great deal of effect upon the nature of the down town area businesses and the future. He acknowledged that the City is at a cross roads with the efforts to put in the important standards, but the cap issue, that Council initiated, is also such a strong important tool to planning for the town. Noting the public testimony tonight and the survey signed by six hundred and forty eight people, he pointed out that this is not just a few people saying this is bad and that there have been hundreds of people that have contacted Planning. There is overwhelming support to try to keep Homer as a small business district. Mr. Bartlett told the Council that he agrees that concerns about loses, they'll move outside of town, interruption to the tax flows and other matters are legitimate concerns. However, these concerns are not defensible arguments and encouraged the Council to take the Planning Commission's suggestions and findings of facts and think about these over the next two weeks. He voiced his belief that the Council would come to the same conclusions and probably several other conclusions about what they want this town to be, for themselves and their family. He emphasized that this is why he and the rest of the Planning Commissioners concluded that the suggested standards are the best, therefore, Council's amendment to forty thousand square feet far exceeds any measurement of what the rest of the population of this town's expects as a final decision. He emphasized and urged the Council to adopt an absolute cap whether that be twenty thousand, thirty thousand or forty thousand and to not leave it open for the Commission to allow someone to develop a sixty or eighty thousand square foot building. He stated that he did not think that the Council wants this as their anchor or as the center of town. He noted that Council has some hard questions to review and voiced appreciation of their time.

Al Waddell commented on the public seat being warm.

YOURKOWSKI/FENSKE - MOVED TO SUSPEND THE RULES TO GO PAST MIDNIGHT.

VOTE: NO: STARK, KRANICH, BECK, FENSKE.

Mayor interrupted the vote and stated "Motion failed."

Al Waddell continued his comments that he is happy that the Council was listening, this evening, to property owners' rights for forty thousand square foot buildings. He noted that lots of people did not testify and that there are lots of people that probably should have testified, but did not. He suggested that the Council go to the post office, talk to the clerks who listen to this quite frequently. He suggested that if the Sterling Highway is designated as a Scenic Highway that he would like to see the Bypass name changed to either Sterling Way or Sterling Highway. He reported that people thoroughly enjoyed the Homer Carnival Days and that he plans on making this a yearly event.

COMMENTS OF THE CITY ATTORNEY

City Attorney Tans was not present.

COMMENTS OF THE CITY CLERK

City Clerk Calhoun had no comment.

COMMENTS OF THE CITY MANAGER

City Manager Wrede had no comment

COMMENTS OF THE MAYOR

Mayor Cushing voiced his disappointment with the vote as it went tonight. He challenged this Council to put out a one page flyer in the two newspapers and get it out to the public where the public has to sign their name. He commented that there would be a majority of people weigh in on the way this group was going up until tonight. The way the worksession, work force and Planning Commission.

YOURKOWSKI/STARK - MOVED TO SUSPEND THE RULES TO GO TO 12:05 A.M.

VOTE: YES: NON OBJECTION UNANIMOUS CONSENT.

Motion carried.

Mayor continued to comment: He voiced disagreement with Councilmember Stark's comments. There is a large retailer on record saying that they do not want to go to Anchor Point because they do not have police and do not have sewer. Homer is a good place to do business. People want to be in down town Homer. Homer is busting at the seams, people want to be here. They will be here on our terms they do not want to be fifty miles away, they want a business generated here. He voiced his hope that this is an election issue, when one of the Councilmembers is accosted angrily at the Post Office by a person saying this is an election issue. He voiced his belief that the being accosted angrily should not happen, but agreed that this should be an election issue.

COMMENTS OF THE CITY COUNCIL

Councilmember Kranich commented on the building cap size and that while he supported the forty thousand square feet there are a lot of ways that this should be across the board and should not just apply to retail and wholesale buildings. If a box is a box in one application, a box is a box in another application.

ADJOURNMENT

There being no further business to come before the Council the meeting was adjourned at 12:03 a.m. The next Regular Meeting is scheduled for Monday, June23, 2003 at 7:30 p.m. The Committee of the Whole is scheduled for Monday. June 23, 2003 at 4 p.m. The first thirty minutes is a session with the City's Auditor, Mikunda Cottrell and Company, John M. Bost, Partner on the 2002 Annual Comprehensive Financial Report and associated letters.

____________________________________

MARY L. CALHOUN, CMC, CITY CLERK

Approved: _________________________

1. Clerk's note: All of the Findings of Fact and Decision are included herein for the record.