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HomeMy WebLinkAboutPZ RES2026-007 110 Aialik Street CUP1 Sponsored by: Applicant Public Hearing: July 7, 2026 CITY OF SEWARD, ALASKA PLANNING AND ZONING COMMISSION RESOLUTION 2026-007 A RESOLUTION OF THE PLANNING AND ZONING COMMISSION OF THE CITY OF SEWARD, ALASKA, GRANTING A CONDITIONAL USE PERMIT TO MARATHON RIDGE RETREAT LLC FOR THE DEVELOPMENT OF A RECREATIONAL RESORT, INCLUDING LODGING, RECREATIONAL, AND ACCESSORY USES AT 110 AIALIK STREET WITHIN A RESOURCE MANAGEMENT (RM) ZONING DISTRICT WHEREAS, Marathon Ridge Retreat LLC submitted an application for a Conditional Use Permit (CUP-26-1) to develop a recreational resort on approximately 44.25 acres located at 110 Aialik Street, legally described as a portion of U.S. Survey 931 and identified as Kenai Peninsula Borough Parcel 14823015; and WHEREAS, the subject property is zoned Resource Management (RM); and WHEREAS, the proposed development includes lodging cabins, wellness facilities, community gathering spaces, owner residences, supporting infrastructure, and associated recreational amenities to be constructed in multiple phases; and WHEREAS, the Seward Zoning Code does not specifically define or identify a recreational resort as a permitted use within any zoning district; and WHEREAS, Seward City Code §15.10.130 authorizes the Planning and Zoning Commission to approve unlisted uses when the Commission finds the use is not specifically permitted in another district, is not more appropriately located in another district, and is consistent with the purpose of the zoning district and similar to uses permitted outright; and WHEREAS, Seward City Code 15.10.320 allows the Commission to issue Conditional Use Permits for certain uses which may be compatible with designated principal uses in specific zoning districts provided certain requirements and conditions are met; and WHEREAS, the public notification process was complied with and the appropriate public hearing, as required by Seward City Code § 15.01.040. NOW, THEREFORE, BE IT RESOLVED BY THE PLANNING AND ZONING COMMISSION OF THE CITY OF SEWARD, ALASKA: Section 1. According to SCC 15.10.320 It is recognized that there are some uses which may be compatible with designated principal uses in specific zoning districts provided certain conditions are met. The conditional use permit procedure is intended to allow flexibility in the consideration of the impact of the proposed use on surrounding property, and the application of controls and safeguards to assure that the proposed use will be compatible with the surroundings. The commission shall permit this type of use if the conditions and requirements listed in this chapter PLANNING AND ZONING COMMISSION RESOLUTION 2026-007 Page 2 of 8 are met. According to SCC 15.10.320.D., the Commission shall establish a finding that the use satisfies the following conditions prior to granting a conditional use permit: A. The use is consistent with the purpose of this chapter (the Seward Zoning Code) and the purposes of the zoning district. Finding: The Resource Management (RM) zoning district is intended to provide for lands that are generally undeveloped and cannot be precisely zoned due to uncertainties regarding the extension of public services and utilities, the suitability of the land to support commercial, residential, industrial, or public uses, and other environmental considerations. The proposed recreational resort is designed to utilize a relatively small portion of the 44.25-acre property while preserving the majority of the site as forested open space. The development clusters cabins, community facilities, and supporting infrastructure within designated areas and maintains substantial portions of the existing vegetation and natural landscape. The proposal emphasizes outdoor recreation, visitor accommodations, and stewardship of the property while limiting the overall development footprint. Although a recreational resort is not specifically identified as a permitted use within the Seward Zoning Code, the proposed use shares characteristics with visitor -serving recreational and lodging uses that may be compatible with the purpose of the RM district when appropriately conditioned. The phased nature of the project allows for continued evaluation of infrastructure, environmental impacts, and compatibility as development occurs. Subject to compliance with applicable development standards and any conditions imposed by the Commission, the proposed use appears consistent with the intent of the Seward Zoning Code and the purpose of the Resource Management zoning district. B. The value of adjoining property will not be significantly impaired Finding: The subject property is bordered by State of Alaska Department of Natural Resources lands to the south and west and residentially zoned properties to the east. The property to the north is the Scheffler Creek watershed and viewshed, owned by the City of Seward. The proposed development is situated on a large parcel that provides separation between proposed improvements and adjacent properties. The applicant proposes to preserve substantial natural vegetation buffers and maintain much of the existing forest canopy, reducing visual impacts and helping the development remain integrated with the surrounding landscape. Parking, access roads, lodging facilities, and recreational amenities are proposed to be located within the property boundaries and are designed to minimize impacts on neighboring properties. Potential impacts associated with traffic, noise, lighting, and event activities can be 1 1 1 PLANNING AND ZONING COMMISSION RESOLUTION 2026-007 Page 3 of 8 mitigated through conditions of approval related to operating hours, event management, parking, lighting design, and preservation of vegetative buffers. With appropriate conditions in place, the proposed development is not expected to significantly impair the value of adjoining properties. C. The proposed use is in harmony with the Seward Comprehensive Plan. Finding: This condition has been met. The proposal is in harmony with the Seward 2030 Comprehensive Plan. Seward Comprehensive Plan (approved by Council, May 30, 2017) Plan statements that are in harmony with this application: Vol 1, Chapter 3.6.1 • "Improve, expand, and diversify year-round parks and recreational opportunities for residents and visitors." Vol 1, Chapter 3.6.1.3 • "Develop and promote winter tourism by expanding opportunities, creating advertisements, and marketing incentives to visit Seward during winter months." • "Support and promote existing back -country activities in cooperation with state and federal park agencies, Seward Parks and Recreation, and Seward Chamber of Commerce, and plan for future opportunities." Vol 1, Chapter 3.9.2.2 • "Seek ways to minimize development impacts on the slopes of Bear Mountain, Mt. Marathon, Mt. Benson, and the Mt. Alice bench utilizing watershed protection measures." D. Public Services and facilities are adequate to serve the proposed use. Finding: Access to the property is provided from Aialik Street, which connects to Bayview Place and Phoenix Road. Improvements to access roads and internal circulation will be required as development proceeds to ensure safe access for residents, visitors, and emergency responders. Electrical utilities are available in the vicinity of the property and can be extended to serve the development. Water and wastewater service will be coordinated with the City of Seward and applicable regulatory agencies. Any alternative utility systems will be required to comply with City and Alaska Department of Environmental Conservation (ADEC) requirements. PLANNING AND ZONING COMMISSION RESOLUTION 2026-007 Page 4 of 8 The applicant has proposed phased development extending over several years, allowing infrastructure improvements to occur concurrently with project expansion. The development will also be served by existing municipal services, including police, fire, and emergency medical response. Subject to compliance with all applicable utility, roadway, fire protection, and building requirements, public services and facilities appear adequate to serve the proposed use. E. The proposed use will not be harmful to the public safety, health or welfare. Finding: The proposed development has been designed to address public health, safety, and welfare through phased construction, infrastructure improvements, and compliance with applicable building, fire, and environmental regulations. The applicant proposes to provide adequate access roads, parking areas, emergency vehicle access, fire protection measures, stormwater management practices, erosion control measures, and utility infrastructure necessary to support the development. The project also includes preservation of vegetation buffers, protection of natural drainage patterns, and measures intended to minimize impacts on surrounding properties and environmental resources. The proposed use is recreational and lodging -oriented in nature and is not anticipated to generate hazardous materials, industrial impacts, or activities that would pose an unreasonable risk to the public. Potential impacts associated with traffic, noise, large gatherings, and future recreational infrastructure can be addressed through conditions of approval and ongoing regulatory review. Based on the information submitted, and subject to compliance with all applicable permits, regulations, and conditions of approval, the proposed use does not appear to be harmful to public health, safety, or welfare. Section 2. Any and all specific conditions deemed necessary by the Commission to fulfill the above -mentioned conditions shall be met by the applicant. Approval of the CUP shall be subject to the following conditions: 1. The applicant shall comply with all applicable provisions of the International Building Code (IBC), International Residential Code (IRC), International Fire Code (IFC), and all other applicable adopted codes and regulations during building permit review and construction. 2. The applicant shall obtain approval from the Public Works Director for any connections, extensions, or improvements to the City water or sewer systems. 3. Alternative water supply or wastewater disposal systems may be approved by the Public Works Director only upon demonstration of compliance with all Alaska Department of 1 1 1 1 PLANNING AND ZONING COMMISSION RESOLUTION 2026-007 Page 5 of 8 Environmental Conservation (ADEC) regulations and other applicable agency requirements. 4. The applicant shall obtain approval from the Electric Operations Supervisor for any connections, extensions, or improvements to the City electrical system. 5. If determined necessary by the Electric Operations Supervisor and/or Public Works Director, the applicant shall dedicate and record utility easements for the installation, operation, maintenance, and replacement of City electric, water, or sewer infrastructure, subject to approval by the City. 6. Prior to issuance of a certificate of occupancy for any lodging unit, Aialik Street and Bayview Place shall be improved to applicable City standards and approved by the Public Works Director. 7. All internal access roads serving the development shall be constructed and maintained to standards approved by the Public Works Director and Fire Chief. 8. A fire protection plan shall be submitted to and approved by the Seward Fire Department prior to issuance of building permits for occupied structures. 9. Fire access roads, turnaround areas, water storage facilities, hydrants, and other fire protection infrastructure shall be installed in accordance with the approved fire protection plan and applicable Fire Code requirements. 10. Internal roads, driveways, and parking areas shall provide and maintain adequate access for emergency vehicles at all times. 11. Any gate installed on the property shall provide emergency access approved by the Fire Chief and Police Chief, including but not limited to approved key, code, Knox Box, or other access systems. 12. Prior to completion of each development phase, the permittee shall prepare and submit an Emergency Operations Plan (EOP) for review and approval by the Seward Police Chief and Fire Chief. Depending on the land uses within each phase, the EOP may include: evacuation procedures; wildlife prevention, mitigation, and response measures; emergency access routes and staging areas; chair lift rescue procedures and coordination with emergency responders; emergency contact information for responsible personnel; and communication and coordination procedures with local emergency response agencies. The permittee shall review and update the EOP annually, or as otherwise requested by the Police Chief or Fire Chief, and submit any revisions for review to ensure continued compatibility with local emergency response capabilities. 13. Prior to operation of the chair lift, the permittee shall provide, at the permittee's expense, chair lift rescue equipment for Seward Fire Department personnel sufficient to support emergency rescue operations associated with the chair lift. Any specialized rescue equipment provided shall be maintained in operational condition by the permittee or replaced as necessary for the duration of chair lift operations. 14. Trails providing access to lodging units, saunas, or other occupied structures shall be designed and maintained to standards approved by the Fire Chief to accommodate emergency personnel and patient transport. PLANNING AND ZONING COMMISSION RESOLUTION 2026-007 Page 6 of 8 15. Amplified outdoor music and other amplified sound shall comply with the requirements of Seward City Code Title 9.25. 16. The operator shall maintain a local contact person authorized to respond to complaints regarding noise, traffic, parking, or operational issues. Current contact information shall be provided to the City and updated as necessary. 17. All exterior lighting shall be fully shielded and directed downward to minimize glare and light spillover onto adjacent properties and public rights -of -way. 18. All provided parking, circulation, and accessible parking facilities shall comply with applicable ADA requirements and shall be maintained on -site for the duration of the approved use. 19. Overflow parking associated with the development shall not occur within public rights -of - way, including Aialik Street, Bayview Place, or neighboring residential streets. 20. All refuse and food waste storage facilities shall be maintained in bear -resistant and wildlife -resistant containers. 21. Prior to the issuance of a certificate of occupancy, the operator shall submit a wildlife management plan to Community Development addressing food storage, refuse handling, wildlife attractants, and guest education. The plan shall be maintained and implemented for the duration of the use. 22. A drainage and stormwater management plan shall be submitted to and approved by the Public Works Director for the entire development prior to construction of access roads, utilities, or buildings. 23. No development, grading, vegetation removal, material storage, or other land -disturbing activity shall occur within required stream setbacks or buffers established by applicable City, State, or Federal regulations. 24. Erosion and sediment control measures shall be installed and maintained throughout all phases of construction in accordance with approved engineered plans and applicable regulations. 25. At the completion of all approved phases of development, no more than ten percent (10%) of the approximately 44-acre property shall consist of permanent tree canopy removal, as measured from the existing tree canopy on the property at the time this Conditional Use Permit is approved. Temporary clearing necessary for construction is permitted, provided such areas are replanted or otherwise restored to tree canopy upon completion of construction so that the property complies with this condition. 26. Any chairlift or associated structures subject to Federal Aviation Administration (FAA) review shall be constructed, marked, and lighted in accordance with applicable FAA requirements and approvals. 27. The applicant shall obtain all permits and approvals required by applicable Federal, State, and local agencies. Approval of this Conditional Use Permit does not exempt the applicant from compliance with any other applicable permitting requirements. 28. This Conditional Use Permit authorizes only the uses and improvements substantially consistent with the approved site plan and application materials. Any substantial expansion or modification of the approved development, including but not limited to additional 1 1 1 1 1 PLANNING AND ZONING COMMISSION RESOLUTION 2026-007 Page 7 of 8 chairlifts, increased lodging capacity, or other uses, shall require review and approval of a CUP amendment by the Planning and Zoning Commission. 29. Per Seward City Code §15.10.325(f). an approved CUP shall lapse six months from the date of approval if the use for which the permit was issued has not been implemented or a building permit obtained. The Commission may grant a six-month extension upon finding that circumstances have not changed sufficiently since the date of initial permit approval. 30. Modification of final approval of a conditional use permit may, upon application by the permittee, be modified by the Planning and Zoning Commission: a. When changed conditions cause the conditional use to no longer conform to the standards for its approval. b. To implement a different development plan conforming to the standards for its approval. c. The modification plan shall be subject to a public hearing and a filing fee set by City Council Resolution. Section 3. The Planning and Zoning Commission finds that the proposed use, subject to the above conditions satisfies the criteria for granting a conditional use permit provided the conditions listed in Section 2, are met by the applicant, and authorizes the administration to issue a conditional use permit to Marathon Ridge Retreat LLC for the construction of a Recreational Resort, including ten (10) rental cabins, four (4) saunas, a day lodge, an event hall, two (2) private residences, and a ski chair lift, on the property located at 110 Aialik Street, within a Resource Management (RM) zoning district. Section 4. The Planning and Zoning Commission finds that adherence to the conditions of this permit is paramount in maintaining the intent of Seward City Code Section 15.10.320: Conditional Use Permits and authorizes the administration to issue a conditional use permit. Section 5. Administration shall periodically confirm the use conforms to the standards of its approval. Nonconformance to these above stated conditions shall be grounds for revoking the Conditional Use Permit. Section 6. This resolution shall take effect 10 days following its adoption. APPROVED BY THE PLANNING AND ZONING COMMISSION THIS 71H DAY OF JULY, 2026. CI • re Sulliv • i , Chair PLANNING AND ZONING COMMISSION RESOLUTION 2026-007 Page 8 of 8 AYES: Hornseth, Verhey, Hubbard, Siptrott, Sullivan NOES: ABSENT: Charbonneau, Wilder ABSTAIN: VACANT: ATTEST: Kris Peck City Clerk (City Seal) 1 Planning and Zoning Agenda Statement Meeting Date: July 7, 2026 To: Planning and Zoning Commission Through: Daniel Meuninck, Community Development Director From: Courtney Bringhurst, Planner Agenda Item: Resolution 2026-007 of the Planning and Zoning Commission of the City of Seward Alaska, granting a conditional use permit to Marathon Ridge Retreat LLC for the development of a Recreational Resort, including lodging, recreational, and accessory uses, at 110 Aialik Street within the Resource Management (RM) Zoning District Background and justification: Marathon Ridge Retreat LLC has submitted an application for a Conditional Use Permit (CUP) to develop a recreational resort on approximately 44.25 acres located at 110 Aialik Street within the Resource Management (RM) zoning district. The purpose of the RM district is to provide for lands that are generally undeveloped and cannot be precisely zoned due to uncertainties regarding the extension of public services and utilities, the suitability of the land to support commercial, residential, industrial, or public uses, and other environmental considerations. The subject property presents several of these considerations, including the feasibility of extending utilities, the suitability of the site for the proposed development, and the preservation of natural resources and environmental features. These issues are addressed throughout the application and supporting materials. Seward City Code (SCC) §15.10.125(A) provides that the express authorization of a use within a zoning district shall be deemed a prohibition of that use in all other districts unless otherwise specified. The Seward City Code does not expressly identify or define a "recreational resort" in any zoning district. Similar uses defined by other municipalities generally describe a recreational resort as a development that may include a cohesive and complementary mixture of land uses, including commercial, residential, recreational, and/or business park uses, along with more primitive settings. Uses should focus on developments for tourists, recreationists, visitors and the local community. Since a recreational resort is not specifically listed within the City's land use regulations, the Commission may consider the proposal under SCC §15.10.130(A), which allows unlisted uses upon written determination by the Commission when the following findings can be made: 1. The use is not specifically permitted in another zoning district; 2. The use is not more appropriately located in another zoning district; and 3. The use is consistent with the purpose of the zoning district and is similar to uses permitted outright. 8 The subject property is currently vacant and located on the lower slopes of Mount Marathon east of Bayview Place and Aialik Street. The proposed development is planned in multiple phases and includes: • Ten guest lodging cabins; • Four sauna and wellness structures; • A 2,480-square-foot day lodge; • A 6,000-square-foot event hall; • A 3,500-square-foot maintenance facility; • Two single-family residences; • Associated parking areas, access roads, and trails; and • Future recreational infrastructure, including a low -capacity chairlift and additional parking facilities. Construction is proposed to occur in phases between approximately 2026 and 2034. According to the applicant, the project is intended to function as a low -intensity recreational lodging and outdoor recreation destination that supports year-round tourism, recreation opportunities, and economic activity while preserving the majority of the property as forested open space. The applicant has also identified mitigation measures intended to address public health and safety, emergency access, stormwater management, wildlife habitat preservation, traffic circulation, and infrastructure development. The proposed design maintains substantial natural buffers and preserves existing vegetation to minimize visual impacts and maintain compatibility with the surrounding landscape. The public notification process was complied with and the appropriate public hearing, as required by Seward City Code § 15.01.040. Regarding conditional uses, Seward city code § 15.10.320 states, "it is recognized that there are some uses which may be compatible with designated principal uses in specific zoning districts provided certain conditions are met. The conditional use permit procedure is intended to allow flexibility in the consideration of the impact of the proposed use on surrounding property, and the application of controls and safeguards to assure that the proposed use will be compatible with the surroundings. The commission shall permit this type of use if the conditions and requirements listed in this chapter (Title 15) are met." Prior to granting a conditional use permit, the Commission shall establish that the use satisfies the following conditions as listed in SCC § 15.10.320(D): 1. The use is consistent with the purpose of this chapter and the purposes of the zoning district; 2. The value of the adjoining property will not be significantly impaired; 3. The proposed use is in harmony with the comprehensive plan; 4. Public services and facilities are adequate to serve the proposed use; 5. The proposed use will not be harmful to the public safety, health or welfare; 6. Any and all specific conditions deemed necessary by the commission to fulfill the above - mentioned conditions shall be met by the applicant. These may include but are not limited to measures relative to access, screening, site development, building design, operation of 9 the use and other similar aspects related to the proposed use. Surrounding Land Use and Zoning: Development Requirements: Although the renderings submitted with the application are conceptual and subject to change during final design, the proposed site plan meets the Zoning Code Development Requirements (Table 15.10.220) for maximum lot coverage (30 percent) and required setbacks (20 feet front, 10 feet rear, and 10 feet on both sides). The maximum building height allowed is 38 feet and accessory buildings must be 20 feet or less in height. Final compliance with setback, height, and other development standards will be verified during site plan and building permit review. Surrounding Land Use: The subject property is bordered by State of Alaska Department of Natural Resources lands to the south and west and residentially zoned properties to the east. The property to the north is the Scheffler Creek watershed and viewshed, owned by the City of Seward. The surrounding area is characterized by undeveloped forested land, recreational opportunities, and low -density residential development. Floodplain Status: According to the Kenai Peninsula Borough Floodplain Map, the property is not located within a Special Flood Hazard Area (SFHA). Utilities: Primary access to the property will be provided from Aialik Street. Improvements to Aialik Street may be required to meet applicable right-of-way and access standards. Aialik Street connects to Bayview Place, which has recently been improved as a public right-of-way and provides direct access to Phoenix Road. Electrical utilities are located adjacent to the property and can be extended to serve the proposed development. The applicant will coordinate with the City regarding the provision of water and wastewater services. Any approved exceptions to municipal water and sewer requirements must be approved by the Public Works Director and comply with State of Alaska regulations. Pursuant to SCC Chapter 14.05, all buildings and building sites must provide suitable refuse collection facilities. Refuse containers shall be watertight and equipped with animal -resistant lids. Access roads, parking areas, and pedestrian pathways will be required to provide adequate access for emergency vehicles and emergency personnel. Parking: Under SCC §15.10.215, off-street parking may be provided at the discretion of the property owner or developer, provided applicable design and dimensional standards are met. Single-family residences require two off-street parking spaces per dwelling unit. The applicant proposes the following parking accommodations: • Cabins: Two parking spaces per cabin (20 spaces total); • Saunas: Four parking spaces per sauna (16 spaces total); • Day Lodge: 40 parking spaces initially, with an additional 160 spaces proposed in conjunction with future chairlift development; • Event Hall: 40 parking spaces adjacent to the facility, supplemented by shuttle service from the Day Lodge parking area during larger events. Typical parking demand estimates for assembly uses such as event halls range from approximately 10 one parking space per 100 to 200 square feet of usable floor area. Based on this standard, the proposed 6,000-square-foot event hall would typically require approximately 30 to 60 parking spaces. Similarly, the proposed 2,480-square-foot day lodge would generally require approximately 13 to 25 parking spaces. The parking proposed by the applicant appears adequate to accommodate the anticipated demand for these facilities. Comprehensive and Strategic Plan Consistency Information This legislation is consistent with (citation listed): Comprehensive Vol 1, Chapter 3.6.1 Plan: • "Improve, expand, and diversify year-round parks and recreational opportunities for residents and visitors." Vol 1, Chapter 3.6.1.3 • "Develop and promote winter tourism by expanding opportunities, creating advertisements, and marketing incentives to visit Seward during winter months." • "Support and promote existing back -country activities in cooperation with state and federal park agencies, Seward Parks and Recreation, and Seward Chamber of Commerce, and plan for future opportunities." Vol 1, Chapter 3.9.2.2 • "Seek ways to minimize development impacts on the slopes of Bear Mountain, Mt. Marathon, Mt. Benson, and the Mt. Alice bench utilizing watershed protection measures." Strategic Plan: N/A Staff Comments Department Comments No Comment N/A Building Department Structures must be engineered and comply with IBC, IRC, and IFC codes. Fire Department Emergency Operations Plan, Chair lift rescue equipment, Fire Protection Plan, adequate emergency access (trail and road development) Public Works Department Alternative water and sewer systems must comply with ADEC Harbor Department X Police Department Provide adequate emergency access Electric Department Applicant must comply with electric requirements Telecommunications X 11 Public Comment Property owners within three hundred (300) feet of the proposed land use amendment were notified of this public hearing. Public notice signs were posted on the property and all other public hearing requirements of Seward City Code § 15.01.040 were complied with. At the time of this publication the Community Development Department has received public inquiries and comments, which have been included in the packet. If any correspondence is received after publication of this agenda statement, it will be submitted to the Commissioners for their review. Recommendation The proposed use is permittable through the Conditional Use Permit process, which allows the Commission the opportunity to ensure that the use is consistent with the purpose of the zoning district and surrounding land uses, is in harmony with the Comprehensive Plan, and will not be harmful to the public safety, health, or welfare. 12