Often, the best decisions are a compromise. Which is exactly what borough staff is proposing for the sale of 20 lots next year at the Alder Top Village (Keishangita.’aan) subdivision at the site of the former Wrangell Institute boarding school.
Selling the residential lots to the highest bidders would earn the most for the municipal treasury, which would help taxpayers. But it could shut out potential buyers who can’t keep up if the auction drives prices beyond their budget.
Selling the parcels at a fixed price by lottery would give everyone the same odds of winning one of the coveted building lots in a town chronically short of new home sites. It’s not equal, in that not everyone would get a half-acre, but it’s equality because everyone would have a chance regardless of their bank account.
Borough staff has proposed half of the lots go on sale by lottery and half by auction. The pricier, front-row lots with a view of the water would be sold to the highest bidders, while the more affordable back-row parcels would go by lottery. Those 10 back-row parcels could sell for about $45,000 to $55,000 each, depending on their size, based on an appraisal conducted for the borough.
The borough will conduct another public survey on the sales plan — the first survey went out last month to help guide staff in drafting the proposal. Then the Economic Development Board will hold a public hearing on the plan in December before making a recommendation to the assembly, which has final say on selling municipal property.
The intent is to drive construction of new housing, which Wrangell sorely needs.
Getting a piece of buildable land is the essential first step, but would-be homeowners will also need to put together the six-figure cash and financing package to afford new construction from the foundation up. Because that will take some people more time than others, borough staff and members of the Economic Development Board don’t want to put a deadline on when anyone would have to start construction on their new lots.
“Approaching purchasing a piece of property for the first time … it’s a super-expensive undertaking,” said board member Caitlin Cardinell. “It’s probably going to take a while for these people to build up the capital.”
Getting the land into private ownership, giving people time to build, and splitting the lots between high bidders and lucky lottery winners sounds like a good compromise package focused on fairness in the largest sale of residential lots on the island in years.
— Wrangell Sentinel
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