The borough has gone out to the public for a second time to survey their opinions on how to sell the first 20 lots of the Alder Top Village (Keishangita.’aan) subdivision, in advance of a decision by the Economic Development Board at its meeting set for 5:30 p.m. Wednesday, Dec. 20, at City Hall.
The board is scheduled to make a recommendation to the assembly for how the lots should be sold, with the assembly expected to take up the issue in January.
According to the Economic Development Department’s proposed schedule, the borough would hold an online auction in April and May to sell 10 lots to the highest bidders, while 10 other lots would be sold at fixed prices by lottery in July.
The schedule calls for the borough to complete road and utility installation in September, turning over full access to the parcels to the new owners in October.
The subdivision is at the site of the former Bureau of Indian Affairs Wrangell Institute boarding school. The borough took ownership of the property overlooking Shoemaker Beach in 1996.
The Economic Development Board reviewed the land sales plan at its meeting in November after conducting an online survey to gather public input. Almost 200 people responded to that survey, with most reporting that affordability would drive their decision whether to purchase a lot.
A second survey was posted last week, asking people their opinions on the plan to split the sale half by auction and half by lottery.
The 10 lots with unobstructed views of the water would be sold to the highest bidders starting at fair market value, ranging from about $53,000 to $70,000 for the parcels, all of which are close to half an acre. “There are no additional requirements to be eligible, other than the bidder must be 18 years of age or older,” according to the borough.
All of the applications for the 10 back-row lots at the subdivision to be sold by lottery would be combined, with the winners drawn one at a time. The first lottery winner would get the first choice of lots, with the next nine winners selecting their lot from those still available.
The lottery lots would range from about $45,000 to $60,000 for the roughly half-acre parcels.
All 20 parcels are zoned for single-family residences.
There would be no limit on how many lots any one person could win and purchase in the lottery or at the auction.
The survey and a map of the subdivision are available under the Economic Development Department tab on the borough website wrangell.com.
A second phase of development, which includes an additional 20 lots, has not been scheduled.
By the time the roads and utilities are finished for the first phase, the borough will have spent an estimated $2.4 million to clear the land, fill to grade and prepare the area for development.
“We will allow the Phase 1 sales to fill our coffers back up,” before taking on Phase 2 development, Kate Thomas, economic development director, explained last week. The borough also will look at demand for the first 20 lots before deciding whether to proceed with a Phase 2 development.
That $2.4 million includes $255,000 added to the budget to cover more excavation to get down to stable soil and additional shot rock to build embankments. The assembly on Dec. 12 approved the change order for the contractor, Ketchikan Ready-Mix & Quarry.
The borough would collect about $1.13 million if it sells all 20 lots in the first phase at their appraised value. “The borough has subsidized this project,” Thomas said.
The contractor anticipates finishing clearing, grubbing and base road construction by the end of the year. Final roadwork and utility installations are planned for next year.
The borough will not provide financing for the land sale but is planning to assemble potential lenders and contractors for an “educational symposium,” Thomas said, offering potential buyers an opportunity to learn more about financing and construction options.
That public event is planned for February.
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