By SHANNON HAUGLAND
Sentinel Staff Writer
The Assembly Tuesday rejected the only response to a proposal to purchase a four-acre tract in the Whitcomb Heights subdivision, along Kramer Avenue, above Halibut Point Road.
The vote was 2-4 on a motion to sell the tract to Pioneer Land Development LLC for the proposed price of $17,500. In favor were Kevin Mosher and Thor Christianson; Kevin Knox, Crystal Duncan, Rebecca Himschoot and Mayor Steven Eisenbeisz voted against.
The Assembly spent most of the three and a half-hour meeting on COVID-related issues (see Wednesday’s Sentinel), but had a number of other pressing items on the table as well.
RFP Whitcomb Heights
Jill Hirai, project manager for Pioneer Land Development, outlined her plan to develop three to four lots on the east parcel (building on at least one and offering the others for sale). As for the west parcel, she said, the initial review of the property is that it would be cost prohibitive to develop. In her letter to the city she said the costs of extending utilities to the west tract, “and given a majority of the tract is identified with characteristics/limitations prohibitive to development,” Pioneer offered $17,500, which she said translates to 40 cents per-square-foot “per acre for the Tract A11 land that is proposed to be developed.”
During the meeting and at a Planning Commission meeting, Hirai said her main goal has been to develop a small lot for a 500- to 900-square-foot home for her father, and make other lots available for sale at an affordable price.
City staff recommended rejecting the proposal, saying Pioneer did not meet three conditions in the request for proposals, including identifying a mix of housing types. Hirai disagreed with some of the city’s findings, but the majority on the Assembly either wanted to follow city staff’s recommendations, or in general felt $17,500 was not a fair price given the amount of land under consideration.
Hirai reviewed some of the challenges of creating affordable housing in that area, given the high development costs, even for the lots that are easiest to develop.
“It’s crazy expensive, rock is really expensive and putting in utilities is really expensive,” she said. “Those numbers add up ... It’s not going to be as affordable as I want it to be and that’s just being realistic.”
Christianson said he felt the price was probably fair, given the amount of work and money that needed to go into the property for development; and that the sale would result in future economic benefits for the community, including property tax, construction jobs and housing for Sitkans.
The Assembly had authorized an RFP on August 5 for the four-acre tract, although the Planning Commission favored putting the property up for auction, which has few controls and requirements for development.
Hirai said today she would continue looking for opportunities for her father’s home, and other lots.
Sewer Rehab
In other action Tuesday, the Assembly approved $400,000 in funding for the Brady lift station rehabilitation project, .
“This is our most highest priority project in the public works department,” Public Works Director Michael Harmon said. “It’s a pump station that is very far downstream in our sewage collection system. It essentially collects all wastewater north of Brady Street.”
He cited the outdated equipment and excessive maintenance required, and the failure of an essential piece of equipment, “making it impossible to isolate one of the three pumps for maintenance,” he said in his memo to the Assembly. “It’s important that this project be completed as soon as possible due to the risk and implications of lift station failure. However, it is equally important that the project be completed in the most cost-effective manner.”
From the public, Richard Wein suggested keeping a running total of appropriations as they come up, for the Assembly as well as the public.
“The city needs to keep that running score as to how much is being spent,” he said.
The $400,000 item passed on first reading.
Also passing on first reading on a 6-0 vote was approval of a $50,000 pass-through grant from the state, through the federal Department of Homeland Security. The purpose of the funds is for a police department secure access upgrade.
Both the lift repair and police department grant will be up for second and final reading December 8.
In other business the Assembly approved a liquor license renewal application for Ernie’s Bar Inc. dba Ernie’s Bar at 130 Lincoln Street; OK’d an acting administrator list for 2021, including Melissa Haley, Michael Harmon, Scott Elder, and Sara Peterson; and passed an ordinance related to required committees.
