Commission approves conditional-use permit for retail marijuana store at 6384 Kenai Spur Highway
April 30, 2026 | Kenai, Kenai Peninsula Borough, Alaska
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The Kenai Planning and Zoning Commission voted on April 29 to adopt Resolution PZ2026-06, approving a conditional-use permit for a retail marijuana store proposed at Lot 12, Block B, Beavercreek subdivision (6384 Kenai Spur Highway).
Staff told the commission the proposed retail space would be about 257 square feet within a roughly 3,680-square-foot remodeled building on a 0.95-acre lot and that the project must comply with Kenai Municipal Code standards for commercial marijuana establishments and Alaska statutes and regulations, including Alaska Statute 17.38 and the Alaska Marijuana Control Board requirements. Staff recommended approval subject to conditions: issuance of building permits, landscape and site-plan review by the planning director, submission of a state retail marijuana store license before operation, annual reports to the city by December 31, and on-site inspections when requested.
The applicant (who identified himself on the record but did not give a full name during the staff Q&A) told the commission he intends to use only a small portion of the building for retail and has no plans to add cultivation on site; he said he operates a grow facility elsewhere in the borough. Commissioners asked about parking, buffer distances from schools and educational facilities, and the substance of the annual report and inspection timeline. Staff explained the annual report is a routine compliance tool to confirm a CUP holder remains in business and that inspections are typically coordinated during remodel and building-permit processes.
Several commissioners reported neighbors' concerns—chiefly fear that the site could later host a grow operation rather than retail—which the applicant and staff said would require separate approvals. The commission approved Resolution PZ2026-06 by roll-call vote: Earthly yes; Krauss no; Fikes absent; Woodard yes; Askins yes; Chair Keaton yes; Vice Chair Douthat yes (5–1–1). The chair advised there is a 15-day appeal period.
Staff told the commission the proposed retail space would be about 257 square feet within a roughly 3,680-square-foot remodeled building on a 0.95-acre lot and that the project must comply with Kenai Municipal Code standards for commercial marijuana establishments and Alaska statutes and regulations, including Alaska Statute 17.38 and the Alaska Marijuana Control Board requirements. Staff recommended approval subject to conditions: issuance of building permits, landscape and site-plan review by the planning director, submission of a state retail marijuana store license before operation, annual reports to the city by December 31, and on-site inspections when requested.
The applicant (who identified himself on the record but did not give a full name during the staff Q&A) told the commission he intends to use only a small portion of the building for retail and has no plans to add cultivation on site; he said he operates a grow facility elsewhere in the borough. Commissioners asked about parking, buffer distances from schools and educational facilities, and the substance of the annual report and inspection timeline. Staff explained the annual report is a routine compliance tool to confirm a CUP holder remains in business and that inspections are typically coordinated during remodel and building-permit processes.
Several commissioners reported neighbors' concerns—chiefly fear that the site could later host a grow operation rather than retail—which the applicant and staff said would require separate approvals. The commission approved Resolution PZ2026-06 by roll-call vote: Earthly yes; Krauss no; Fikes absent; Woodard yes; Askins yes; Chair Keaton yes; Vice Chair Douthat yes (5–1–1). The chair advised there is a 15-day appeal period.
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