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 Approves CLT Housing Plat

By SHANNON HAUGLAND

Sentinel Staff Writer

The Assembly gave its approval Tuesday night to the plat of a planned unit development adding seven more Community Land Trust homes on Halibut Point Road.

The 7-0 vote clears the way for the land trust to double its inventory of one-, two- and three-bedroom houses on the former site of the old city shops.

Most of the discussion at the two-hour Assembly meeting was related to the land trust plat and a first reading of an ordinance to appropriate $600,000 to replace and install heat pumps at Blatchley Middle School. 

Land Trust PUD

The planned unit development up for consideration Tuesday night is at 1410 and 1414 Halibut Point Road, next to the Community Land Trust’s seven-lot development in the 1300 block of HPR. On the first project, three houses have been completed and sold, and two more are under construction. 

AFFORDABLE HOUSING – Sitka Community Land Trust Co-Executive Directors Mim McConnell and Randy Hughey, at right, and CLT board members Will Peterson and Sarah Allison, at left, give a tour of the land trust’s Halibut Point Road property to Alaska governor candidate Bill Walker, at center, this afternoon. The Assembly approved a development plan for more houses on land granted to the trust by the city to build affordable houses. (Sentinel Photo by James Poulson)

In 2006 Sitka voters approved a proposition to develop the surplus city property to use as affordable housing. A project by an Anchorage-based developer to build multi-family affordable housing on the property failed when the project didn’t win approval for federal financing.

The Assembly in 2015 and 2021 approved the transfer of all three lots to the Sitka Community Land Trust to create affordable homes. Under the land trust model, the trust retains ownership of the land, which brings down the overall cost to the buyer, who pays only for the house, plus other expenses (insurance, utilities, taxes).

As a planned unit development “some relaxation” from subdivision and zoning regulations is allowed, Planning Director Amy Ainslie said.

In this case, lots are smaller, setbacks are reduced and a structure can cover a greater proportion of the lot area. Also, access and utility easements within the PUD are maintained by the land trust, not the city, Ainslie said.

Randy Hughey, one of the executive directors of the Sitka Land Trust, said the model is trying to address some trends in the American housing market, including the corporate buy-up of homes as investments, and the increasing costs to buyers. He said while the houses are not affordable to all, a two-bedroom model would be within the reach of a single person or couple making $25 an hour, and a $35 per hour income would make a three-bedroom house affordable.

“People can buy homes for less than they could rent in the market,” he said. “We believe Sitka needs more homes for people to live in.”

Current prices for the houses are  $225,000 to $300,000, Hughey said today.

Co-director Mim McConnell said Sitka’s land trust is attracting queries from around the state and the rest of the U.S. from communities facing similar challenges that would like to start their own land trusts. 

Hughey said today the success of the project so far is causing them to look for other possibilities for housing development.

Speaking from the public at Tuesday’s Assembly meeting, Richard Wein questioned whether the asking prices are actually affordable, when the buyer doesn’t own the land. He also commented that the project could have been designed better, with multi-family units, instead of detached houses.

Another speaker, Ryan Herbert, said higher density housing would make more use of the limited available land. He said there is a need for housing for those making as little as $15 and $18 per hour.

Carol Voisin, a land trust board member, said the success of CLT “is a remarkable statement about Sitka.”

“To me it says you care about those who live here by providing an opportunity to live affordably in Sitka, to also ensure the diversity of folks who can live here while safeguarding the land,” she said. She thanked the Assembly for transferring the land to the trust in the first place. “Without the Assembly this project wouldn’t have gotten off the ground.”

“It’s been interesting to watch,” Assembly member Thor Christianson said, adding that he appreciated the work that went into the planning. He noted the designation of an area with a slide risk for possible use for storing boats. “They worked hard to be flexible and help as many people (as they could). ... It’s nice to see them figure out how to make it work, and I’m more enthusiastic about it.”

Kevin Mosher said this project doesn’t solve all of Sitka’s housing needs, such as houses affordable to those making under $25 an hour. “It’s just a piece of the puzzle,” he said. “It’s not huge but they are new, clean homes. ... I see nothing but good.”

Heat Pump

The ordinance to replace the heat pumps at the middle school passed on first reading and will be up for final reading on August 23.

“All heat pumps at the Blatchley Middle School have failed and need to be replaced,” the ordinance states. “This appropriation will cover the full cost to purchase, install, and make any required facility upgrades.”

City Administrator John Leach said he was informed of the “massive failure” of the heating system a few weeks ago.

“There is essentially no heat in the buildings for when the kids go to school this coming winter in Blatchley,” he said. “I would consider this an emergency appropriation. We are making our best estimates, doing our best analysis and there’s a lot of contingencies built in ...”

The funds will come out of the city’s FY2022 general fund surplus.

“The fact that we have to move fast, we don’t have a lot of time to get in-depth assessments – we have some good assessments,” Leach said. He told city staff: “The mission in front of us is to ‘get heat in the building before wintertime.’ That’s what we’re operating under right now.”

Though the final figures are not yet available, the administrator’s memo estimates a $2.5 million surplus in the general fund as of June 30, the end of the 2022 fiscal year, instead of the $3.7 million deficit that was predicted.

The city owns the school buildings, and contributes up to $150,000 a year toward maintenance. Amounts above that is covered by the schools, city staff said.

The heating system that failed was installed 11 years ago and there was some discussion at the meeting about what went wrong, and steps to prevent similar situations in the future.

The FY2023 budget includes funding for condition assessments for city buildings, with some $200,000 added this year to include school buildings. Leach stressed the importance of knowing the condition of buildings, and planning and budgeting for their repair, upgrades and replacement.

Other Business

The Assembly also:

– passed on final reading a $60,000 appropriation from the central garage sinking fund to purchase a replacement cylinder for the scrapyard baler. The baler, purchased in 2003, consolidates 2 million pounds of scrap metal a year, which is sold for $80,000 to $300,000. The staff recommendation was to purchase and install the cylinder and continue monitoring –- for possible replacement in 2024.

– approved an ordinance on final reading to spend $29,854 to purchase and install an ADA accessible bus stop shelter at Crescent Harbor.

– appointed Peter Jurczak to the Building Department Appeals Board, and reappointed Tyler Green to the Port and Harbors Commission.

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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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