After sitting vacant for almost three years — spending about half that time on the market — the borough is finally seeing interest from private parties in buying the former hospital property on Bennett Street.
Three parties have expressed interest, said Interim Borough Manager Mason Villarma, adding he anticipated at least one offer by the start of the new year.
Hopefully, the borough could sell off the 1.94-acre parcel by February, he said.
“The value is getting rid of the property,” Villarma said in an interview before Christmas.
The borough has been spending about $100,000 a year to insure and keep the building dry ever since SEARHC moved out of the municipally owned building and into its new $30 million Wrangell Medical Center in early 2021.
Villarma said the assembly likely would go into executive session to review any offers it receives on the property. Any vote on an offer would have to come in public.
Though the appraised value of the building and land is $830,000, the assembly dropped the asking price in 2022 to $470,000 — the value of the land only — after receiving no offers for months.
The assembly in June approved a contract with real estate agent Anchor Properties to try selling the property. That contract expired Dec. 31, and Villarma said the borough would evaluate whether to extend it or let it lapse.
Of the three parties that have expressed interest in the property, he said, one came from the real estate agent, one essentially walked into City Hall, and the other is a property developer who heard about the offering.
Villarma declined to name the three parties, pending a formal offer and assembly consideration.
Any of the three potential buyers would be “a fine option for the borough,” Economic Development Director Kate Thomas reported to the Economic Development Board in December.
“People are especially eager to see it utilized for productive use and get the liability off our books,” she added.
Though the borough is asking $470,000 for the building and land, municipal code allows the sale of borough property at less than fair market value for economic development purposes. Assembly approval would be required of a discounted price, along with reviews by the Economic Development Board and also the Planning and Zoning Commission.
Hazardous materials such as asbestos in parts of the building will make demolishing or developing it a costly endeavor for any new owner.
Reader Comments(0)