Wrangell could get off to a good start for 2024 if one of the three interested parties makes a reasonable offer to buy the borough-owned former hospital building, which has sat vacant for almost three years.
Most any offer would be reasonable, considering that keeping the building dry and insured is costing the borough tens of thousands of dollars a year. And any offer would be improvement over the no offers that have come in since SEARHC vacated the property for its new medical center in 2021.
“The value is getting rid of the property,” Interim Borough Manager Mason Villarma said of the goal for borough officials and the assembly.
“People are especially eager to see it utilized for productive use and get the liability off our books,” Kate Thomas, the borough’s economic development director, said at a meeting last month.
Villarma reported that three private parties are considering making an offer, and he hopes to receive something in writing soon to present to the assembly.
The borough is asking $470,000 for the building and 1.94 acres, down from the original price of $830,000. However, considering the cost of demolishing the building, which has asbestos in some areas, to make way for new construction on the site, don’t be surprised if an offer comes in below the asking price.
And that’s where the municipal code comes into play. The law allows the assembly to sell borough-owned property at less than market value in the interest of promoting economic development.
There isn’t a better case in town for economic development than turning the Bennett Street parcel into a taxpaying development.
In determining whether a reduced sales price is in the best interests of the borough, the assembly will need to consider potential economic benefits, jobs and tax revenues.
The code requires the assembly to hold a public hearing before any sale, and to gather comments from the port commission, planning and zoning commission and the economic development board before making a decision.
The process is in place; the land is available; the economic benefits of turning over the property to private development could be substantial. All Wrangell needs now is a bona fide offer and then borough officials and the assembly can get to work judging the seriousness and viability of the offer.
This could be a new year’s gift for the community.
— Wrangell Sentinel
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