FIFTH OPENING – The Sitka seine boats Hukilau and Rose Lee pump herring aboard this afternoon at the end of Deep Inlet during the fifth opening in the Sitka Sound sac roe herring fishery. The opening was being held in two locations beginning at 11 a.m. (Sentinel Photo by James Poulson) 

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Daily Sitka Sentinel

Assembly OKs Selling Land for Housing Deal

By SHANNON HAUGLAND

Sentinel Staff Writer

The Assembly voted Tuesday night to sell part of the old city shops property on Halibut Point Road to the Sitka Community Development Corporation for one dollar for development of a six-home affordable housing project.

The Assembly was in general supportive but a few members had some questions before granting unanimous approval for the sale. The planned six-home development at 1306 HPR is intended to be the first of three on the three parcels on the old city shops land. 

In a 2006 municipal election voters approved designation of the three parcels at 1306, 1410 and 1414 HPR for affordable housing.

The ordinance approved on final reading Tuesday says that the two other parcels will be sold or transferred by a similar ordinance “pending clear demonstration by SCDC that they are able to use such parcels consistent with the Oct. 3, 2006, vote.”

Mayor Mim McConnell recused herself because she is the executive director of SCDC.

The affordable home ownership enterprise involves a Community Land Trust, in which the trust retains land ownership and the houses are owned by a qualifying purchaser. The SCDC hopes to offer the one-, two- and three-bedroom homes for prices ranging from $140,000 to $220,000. The buyer would not have title to the land the house was built on.

SCDC Board President Randy Hughey expressed relief at the Assembly’s vote today, and excitement that the project can now go forward.

“I believe the model can work,” he said. “We’ve been talking about affordable housing for 20 years. I’m convinced the CLT model can work in Sitka ... I’m genuinely excited: It’s a funny thing. I feel really, really happy, but now a tremendous burden has been transferred to my shoulders.”

The development corporation plans to apply for a Rasmuson Foundation Tier II grant to pay for infrastructure such as sewer, water and drainage. Hughey said he’s still seeking information about costs before applying for the grant that’s due at the end of February.

Hughey and McConnell expressed some urgency for Assembly approval of the sale because of the grant deadline. McConnell said the structure of the CLT is based on successful models used elsewhere in the U.S.

But Tristan Guevin said he felt it was important for the Assembly to get reassurance that the land would be used in perpetuity for affordable housing. He cited a clause in one of the documents that says that if SCDC transferred the land to a private corporation, there would be no guarantee that it would still be committed to affordable housing.

“It’s an organization we want to support as a city, and the CLT is a model I support,” Guevin said. But he asked for some reassurance from the corporation.

Hughey said the corporation wants to work with the city now and in the future, and is hoping this first project will show that the organization will follow through with the project as presented. A certain amount of trust will be required for both the city and the organization, and it will be up to the organization to make sure the land remains for affordable housing, he said.

“It would be a violation of a trust if we did contrary to that,” Hughey said.

Guevin said he was reassured by Hughey’s comments and voted in favor.

McConnell said today that the SCDC articles of incorporation specify that if the organization dissolves, the assets will be transferred to a nonprofit or government entity. The “ground lease” documents for the homebuyers say that if the land is transferred to a private individual or corporation, the homeowner has the right of first refusal.

Hughey said today the main idea is for the work to continue, even if SCDC dissolves.

“No matter what happens to SCDC, affordable housing is the outcome of this donation of land,” he said.

Steven Eisenbeisz said he also wanted reassurance that SCDC would complete its project, and that the land would be developed. He proposed tabling the item to work on options for more “safeguards” for the public.

“My main concern is this is public land, and I want to make sure there are plenty of safeguards in place,” he said. “What if SCDC is unable to come through with funding?”

Assembly member Ben Miyasato urged the Assembly to vote in favor, and get started on the affordable housing problem in Sitka.

“If we do that we’re doing something,” he said. “I think it’s time we do something. We do need affordable housing in Sitka. ... That property is sitting there doing nothing. I’m fully supportive of (this plan).”

Voting in favor of the land sale were Aaron Swanson, Matthew Hunter, Eisenbeisz, Guevin and Miyasato. Bob Potrzuski was absent.

 

Marijuana Authority

In other business, the Assembly approved making the marijuana advisory committee the Local Regulatory Authority through Feb. 24, while a decision is made on a permanent system.

Committee chair Levi Albertson said the advisory committee is best suited to be the regulatory authority since members have been meeting as often as twice a week on issues related to the legalization of commercial marijuana. Another group would be “starting from square one,” he said.

He said the committee has been working on a number of issues over the past few weeks, most recently those related to testing and clubs.

Also at the meeting, the Assembly appointed Jay Stelzenmuller to the committee after a recent resignation.

 

Other Business

The Assembly voted 6-0 to approve McConnell’s participation in the Island Institute’s town discussion about Alaska’s fiscal future. The event will be held noon to 2 p.m. Dec. 3 at the Sheet’ka Kwaan Naa Kahidi.

City electric utility director Brian Bertacchi reported on the need for upgrades at the Marine Street substation. The 35-year-old substation distributes power to 80 percent of the community.

Bertacchi said up to $200,000 in emergency funding is needed to repair the spare transformer at the substation, since recent testing showed it has failed.

“Data tells us that 100 percent failure will occur by the time we reach 50 years,” he said in an interview after the meeting. 

He said the spare transformer had been out of service for 10 years, and a complex battery of tests conducted recently showed that it needed to be repaired.

If the Marine Street substation goes down, rolling blackouts might be needed for as long as 20 weeks while repairs were made. For example, power would be on for one section of town from 8 a.m. to 10 a.m., and off from 10 a.m. to 2 p.m. 

“It’s one-third on, two-thirds off, depending on the demand,” he said.

In a statement he added today:

“The electric department has been working diligently over the last few months with EPS Engineering to formulate a detailed proposal for a 10-year plan of needed capital improvements to the Sitka electric system.

“Included in this recommendation will be a detailed plan to reduce the overall dependence on the Marine Street substation and to provide for a redundant back-up of the Marine street substation.

“This improvement is needed to mitigate the future risk of extended rolling blackouts in the Sitka community. Additionally, as the unplanned outage of last evening demonstrated, a major overhaul of the 35-year-old Green Lake power plant is also needed. All of these critical capital expenditures will be a crucial part of a discussion of electric rates during the upcoming budget process with the Assembly.”

 

 

 

 

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20 YEARS AGO

March 2004

Matthew C. Hunter of Sitka recently returned from Cuba as part of a St. Olaf College International and Off-Campus Studies program. Hunter, a junior physics major at St. Olaf College, is the son of Robert and Kim Hunter of Sitka.


50 YEARS AGO

March 1974

Eighth graders have returned from a visit to Juneau to see the Legislature. They had worked for it since Christmas vacation ... Clarice Johnson’s idea of a “White Elephant” sales was chosen as the best money-maker; Joe Roth won the political cartoon assignment; highest government test scorers were Ken Armstrong, Joanna Hearn, Linda Montgomery, Lisa Henry, Calvin Taylor and David Licari .....

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