Borough to consider options for former hospital property

After developer Wayne Johnson withdrew his offer last month to purchase the former hospital, the borough now is in the process of deciding how to move forward with the property.

Mayor Patty Gilbert said in an interview July 10 that the assembly will discuss options at its next meeting, scheduled for July 23. The assembly will need to regroup and think about all the options, she said.

Gilbert added that there are a few parties interested in the property, but said to her knowledge there have been no formal offers.

The borough owns the 1.94-acre parcel and the building, which has been empty since 2021 when SEARHC moved into its new Wrangell Medical Center. The borough has been trying to sell the property since 2022 and received no firm offers until Johnson’s.

The borough has said it spends $100,000 a year on maintenance and utilities for the empty building.

Borough Manager Mason Villarma said in an interview July 2 that there may be different avenues for sale of the property. He said the borough will likely take a step back and may consider selling the property for demolition and development, adding that selling it to someone who wants to reuse the existing building is an option as well.

The original building on the property opened in 1967, with additions in 1974, 1988 and 1994.

Johnson had proposed tearing down the building, buying six adjacent lots from the borough, and building as many as 40 condo units on the property, selling at $450,000 to $500,000 each. The Georgia developer withdrew his offer in a letter to the borough on June 28, blaming the Sentinel for its reporting that he wanted the six adjoining lots for free. He said the newspaper reporting was an “unfounded characterization.”

Johnson last month asked for the borough to give him the six lots for free on the condition he would demolish the old hospital at his own expense.

The land-for-demolition deal was not part of his original offer or his public correspondence with the borough going back to January. The assembly in May approved selling Johnson the six lots for their appraised value of $316,800.