The borough assembly approved the sale of the former medical center and six adjacent lots to property developer Wayne Johnson on April 9.
Johnson is a Georgia-based real estate developer hoping to build a 48-unit condo-style housing development with covered parking on the property.
The borough sold the two acres of the former hospital property to Johnson for $200,000, which required approval from the economic development board and the planning and zoning commission as it was below the property’s appraised value of $830,00.
Municipal code allows the sale of borough property at less than appraised value if officials determine it would benefit the town’s economy.
The six lots behind the hospital property, totaling about 1.3 acres, sold for their appraised value of $316,000.
At the public hearing April 9, a couple community members voiced concern over Johnson’s plans.
Alice Rooney expressed her desire to downsize into condo-like housing yet was discouraged by the cost of the condos, which Johnson said in an interview in early March could be as much as $500,000 for the largest units.
The Sentinel was unable to contact Johnson last week for any additional information on his plans.
In March, Johnson estimated construction of the 48 units could total $12.5 million to $15 million, after almost $1 million to demolish and remove the old hospital building.
Christina Florschutz expressed her concerns to the assembly over the engineering of the new construction. Florschutz’s home was destroyed in the Nov. 20 landslide and she credits her life to the engineering of her home. She noted how soft the ground is on the island and the strength of the wind that blows off the Stikine River.
Borough Manager Mason Villarma noted that the sale of the property does not include any requirements to demolish or build anything on the land. Johnson will have to follow municipal building code and zoning regulations, he said. Since the property is currently zoned for open space, it will have to be rezoned if Johnson wants to build anything.
The sale is expected to close by May 30.
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