4 people standing in a room

Photo: City Manager Melissa Jacobsen, landowner Mike Kennedy, Kachemak Heritage Land Trust Stewardship Manager Amanda Kelly, Community Development Director Julie Engebretsen

Press Release from Kachemak Heritage Land Trust on June 17th, 2026:

The City of Homer, in partnership with the Kachemak Bay National Estuarine Research Reserve (KBNERR) and Kachemak Heritage Land Trust (KHLT), is pleased to announce the permanent protection of 26.5 acres in Homer’s Beluga Wetlands. This marks the first completed acquisition in the City’s “Sponge” peatland project—an effort to strengthen community resilience by conserving the wetlands that naturally absorb and manage stormwater.

Funded through the National Oceanic and Atmospheric Administration’s Habitat Protection and Restoration Fund and awarded to KBNERR at the University of Alaska, this project represents a major step forward in implementing stormwater management priorities identified in the City of Homer’s Hazard Mitigation Plan and Capital Improvement Plan.

The newly protected property, purchased from longtime Homer resident Mike Kennedy, functions as a natural sponge—absorbing, slowing, and filtering stormwater before it reaches Kachemak Bay. These wetlands play a critical role in protecting water quality, reducing coastal erosion, and buffering the impacts of increasingly intense rain and snowmelt events.

“The City is pleased to work with the Kachemak Bay National Estuarine Research Reserve to preserve moose habitat in Homer and support the long-term health of the area’s natural landscape,” said Homer City Manager, Melissa Jacobson.

“Because of the community collaboration and multi-agency support to protect wetlands as natural solutions to stormwater management, we were able to secure a competitive NOAA Bipartisan Infrastructure Law grant to pass through funds to the City of Homer to purchase this and other properties; bringing federal dollars to Homer for supporting coastal livelihoods,” said Kachemak Bay National Estuarine Research Reserve Manager, Katherine Schake.

I really enjoyed working with the Julie Engebretsen from the City of Homer Planning Department, Marie McCarty from Kachemak Heritage Land Trust, Katherine Schake and especially the late Coowe Walker from Kachemak Bay National Estuarine Reserve to make this happen. It took a while, but it was very pleasant experience working with all these talented people. With funding from NOAA, we will add permanently to the undisturbed natural landscape and let this land be as it was intended: as a water sponge. The terms of the deed specify that the City of Homer will not develop or sell this piece of property and instead, they will preserve it as a wetland sponge, in perpetuity. This land borders protected moose habitat and is used by many critters who will continue to use it without being pushed out by development,” said former owner of the 26.5-acre property, Mike Kennedy.

“By protecting these wetlands, we are investing in a natural system that safeguards our community from flooding while also preserving the health of Kachemak Bay for generations to come,” said Marie McCarty, Executive Director of KHLT. McCarty also expressed appreciation to the seller for his commitment to conservation: “We are deeply grateful to Mike Kennedy for his patience and partnership throughout this process. His willingness to work with us over several years made it possible to permanently protect this important piece of Homer’s landscape.”

The broader goal of the “Sponge” project is to acquire and permanently protect key peatland and wetland areas within Homer city limits under public ownership. Additional acquisitions are planned.

For more than a decade, KBNERR has led research and community outreach focused on the importance of wetlands in coastal Alaska. A partnership between the National Oceanic and Atmospheric Administration (NOAA) and the University of Alaska Anchorage’s Alaska Center for Conservation Science, KBNERR has helped guide science-based approaches to local resilience. As part of this effort, the City of Homer explored a green stormwater infrastructure concept for peatlands surrounding Kachemak Drive that would utilize intact wetlands to naturally receive and filter stormwater, while KBNERR has contributed baseline vegetation data and a community-informed monitoring framework for peatlands across the Kenai Lowlands.

As a community-based land trust, KHLT works with willing landowners, partners, and public agencies to conserve lands that protect clean water, wildlife habitat, and the character of the Kenai Peninsula. In this project, KHLT played a key role in facilitating the transaction—helping navigate negotiations, secure funding pathways, and ensure the property will be permanently protected with conservation deed restrictions. This type of partnership-driven conservation is central to KHLT’s mission to conserve the natural heritage of the Kenai Peninsula for future generations.

Beyond their role in erosion mitigation, the Beluga Wetlands provide essential habitat for wildlife. In winter, moose rely on these lowland areas for forage and shelter during deep snow conditions. The newly protected parcel lies near lands conserved by Kachemak Moose Habitat Inc., reinforcing a growing network of protected habitat critical to the region’s moose population.

Photo below: Partners gather to share earlier iterations of Kachemak Sponge project with community members in September 2024.

Crowd of people gather with map at scenic overlook