With less than a week to go before the online auction ends, bids have been submitted on three-quarters of the 20 lots at the Alder Top Village (Keishangita.’aan) residential subdivision.

The deadline for bids is 3 p.m. Monday, Dec. 1, at publicsurplus.com.

“I think we feel really good about it,” Kate Thomas, Wrangell’s economic development director, said of buyer interest in what may be the borough’s single largest sale of residential lots.

The 20 parcels at Shoemaker Bay are about a half-acre each, with minimum bids ranging from $49,800 to $70,100 per lot, the value set by a private appraiser, depending on size and location on the property on the uphill side of the highway.

As of Monday, Nov. 24, six of the lots still had no bidders, with 20 bids submitted for the other 14 parcels.

Bidding opened July 1.

The borough has worked toward the subdivision development and land sale for several years, looking to open up more lots for single-family home construction.

The borough did not set a deadline for when a winning bidder has to build a home. A building permit would be needed to start actual construction.

Thomas said potential bidders have called with questions about the lots, most recently asking about the ground conditions, such as how deep they would have to dig to reach bedrock. Though the borough cleared and leveled the land, it did not drill core samples or conduct other work to investigate the subsurface, she said.

Bidders have to post a $500 deposit per parcel, Thomas said, which will be refunded if they are unsuccessful.

Winning bidders will have two options: Pay 20% of the purchase price by Dec. 13, with the balance due in 60 days; or finance the purchase with the borough after paying 15% down. Buyers that finance with the borough will be charged a fixed interest rate of prime plus 3% at closing, which if it were today would total 10%.

Their monthly payments would be calculated as if it were a 20-year loan, Thomas said, but the balance would be payable in full after five years, requiring them to cover or refinance the debt and pay off the borough.

The municipality has put more than $4.1 million into clearing the property, putting in streets and underground utilities. If all 20 lots sell at the minimum price, or close, the borough would recover less than half of what it spent, but the parcels would go on the property tax rolls.

Plans are to close on the land sales by Christmas, Thomas said. The new owners would take ownership after the papers are signed and recorded.

Winning bidders who do not complete their purchase will forfeit their $500 deposit, she said.