The borough assembly was scheduled to hold a special meeting Tuesday evening to consider an agreement for the SouthEast Alaska Regional Health Consortium to make voluntary payments on tax-exempt property it owns in town.
A draft agreement had been on the agenda at the assembly’s May 10 meeting but discussion was postponed.
Mayor Steve Prysunka is leading the negotiations on the borough’s side, Borough Manager Jeff Good said last Thursday.
The borough had started negotiations by asking for $225,000 a year, and SEARHC offered $45,000 per year for 10 years covering all of its property in Wrangell.
SEARHC is not legally required to pay taxes — state law exempts nonprofit religious, charitable, hospital or educational organizations from municipal property taxes.
The tribal nonprofit owns the hospital, clinic and other office and rental housing properties in Wrangell.
The borough has been in negotiations with SEARHC since October 2021, when the finance department said it inherited the issue “as a result of the transition in borough managers” for a voluntary payment in lieu of taxes, according to a May 10 summary statement submitted by Good and Finance Director Mason Villarma to the assembly.
SEARHC paid a $331,287 property tax bill from the borough for the new Wrangell Medical Center in 2021. Though SEARHC at one point had requested a refund of last year’s payment, that has been dropped from the latest proposal discussed by the assembly.
“At a certain point, (property) taxes will be due,” Good said of the negotiations last Thursday. Tax payments to the borough are due by Oct. 15.
“Hopefully, it won’t go that long,” he said.
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