A preliminary plat for the first phase of developing the former Wrangell Institute property into residential and commercial lots, known as Shoemaker Bay Subdivision II, was approved by the planning and zoning commission Tuesday afternoon.
There is still a lot of work to do, but this is a significant step in the development process, said Wrangell Economic Development Director Carol Rushmore. It may be optimistic, she said, but site work could begin sometime next year.
Final plat approval by the commission could be several months away, Rushmore said, with consideration by the borough assembly the final step.
Developing the land has been a longstanding project for the borough, with the effort only recently starting up again. The city plans to subdivide the property into lots for residential and some commercial development. The preliminary plat brought before the planning and zoning commission showed the first half of the proposed development.
The property is upland from Shoemaker Bay. The U.S. Bureau of Indian Affairs operated a boarding school at the site from 1932 to 1975.
An Anchorage-based regional Native corporation, Cook Inlet Region Inc., took title to the 134-acre school site in the late 1970s, but development plans never went anywhere and the corporation returned the land to the federal government — which transferred the property to Wrangell in 1996.
“In April, a preliminary plat of a full subdivision of the northern portion of the Institute consisting of 40 lots was approved by the Commission,” Rushmore wrote in the backup for Tuesday’s meeting. “Due to the cost of development, the subdivision has now been broken down into two phases to manage the development costs. This preliminary plat represents Phase 1 development.”
The first phase represents 22 of the proposed 40 lots. Rushmore said cost estimates are still ongoing, however a rough number puts development costs between $1.4 million and $2 million.
The money would pay for clearing the property, putting in sewer and water lines, building gravel roads and culverts. It could potentially also include paved roads and sidewalks, Rushmore said, adding there is still a lot that needs to be done to more accurately determine costs and potential future revenue from selling the lots.
“I would expect that within the next month or so the estimated development costs will be as close as they can be for now,” Rushmore wrote in an email. “We are waiting on the (Army) Corps of Engineers permit for fill for the roads/utilities to be approved,” she said, adding that the permit application is out for public notice.
Since the project would include filling in some wetlands, the borough is waiting for the Army Corps to determine the required compensation for that action.
A Corps of Engineers permit is required for development on wetlands, which includes the land developer compensating for filling in the wetland by paying into a mitigation bank. The amount depends on a variety of factors, Rushmore said, such as value of the wetland and how much land is being filled.
The eventual sales prices for the lots will depend on a professional appraisal of the property’s value. “We are getting the lots appraised, but that may not be done before the end of July,” Rushmore said.
The lots vary in size between 17,000 to 41,000 square feet, and would all be zoned for residential construction. Commercial zoning is being kept to the southern end of the property.
The Wrangell Cooperative Association, the local tribal organization, is working on a new name for the subdivision “as part of the healing process of past memories and the cooperative effort to develop the land,” according to the material presented to the planning and zoning commission.
There was little discussion at Tuesday’s meeting on this item. Following a summary by Rushmore, the commissioners unanimously voted to accept the preliminary plat. Commissioners Don McConachie and Apryl Hutchinson were absent.
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