ITEM TITLE:
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Authorizing a Gravel Lease for Knik Construction Co. on a 21.3 Acre Portion of Parcel E 1, Tract A, ASLS 79-116, Plat 2002-12 and Tract C-1, ASLS 79-116, Plat 2002-13.
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SUBMITTED BY: Bruce Wall, Senior Planner
FISCAL NOTES:
Expenditure Required: N/A
Unencumbered Balance: N/A
Funding Source: N/A
RECOMMENDATION:
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Approve Resolution #25-XX, authorizing a gravel lease for Knik Construction Co. on a 21.3-acre portion of Parcel E 1, Tract A, ASLS 79-116, Plat 2002-12 and Tract C-1, ASLS 79-116, Plat 2002-13, with the recommended conditions from staff.
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SUMMARY STATEMENT:
Knik Construction Co. has submitted an application for a gravel lease on 35.7 acres located at 1001 Airport Road. For the past 23 years this property was part of a gravel lease to Harris Sand and Gravel. Harris Sand and Gravel has indicated that they do not wish to continue the gravel lease at this location and Knik Construction is in the process of purchasing the assets of Harris Sand and Gravel.
The Planning and Zoning Commission, at their November 12, 2025 meeting, recommended that the city council approve the request to authorize a gravel extraction lease with Knik Construction Co., Inc.
Parcel C-1 has recently been rezoned to Heavy Industrial.
A phase 1 environmental assessment was done on the property in 2022, and Harris Sand and Gravel recently had an additional environmental assessment completed. These assessments revealed some Recognized Environmental Conditions (RECs) on the property; specifically, soil staining associated with above-ground storage containers being used for petroleum products. These RECs are in the process of being remediated and we anticipate getting a remediation completion letter from Alaska Department of Environmental Conservation soon.
Lease Area Information:
Property Owner: City of Valdez
Acreage: Tract C-1 - 14.40 acres, portion of Parcel E 1 - 21.30 acres. 35.70 total acres.
Access: Airport Road via adjacent State land.
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