Petersburg municipal code doesn’t allow the borough to sell its land to private citizens and for-profit businesses at below assessed value. Now the Petersburg Borough Assembly is considering allowing those sales if the land will be used for public good. Petersburg residents will have a chance to weigh in on the change at the Borough Assembly’s next meeting on Monday, March 4.
Assembly member Thomas Fine-Walsh submitted the change. He told the assembly at its last meeting in early February that the proposed ordinance is aimed at removing barriers to the development of reasonably priced housing in Petersburg. A survey last year found that the community needs more than 300 housing units.
“This is a really important issue for our community,” he said. “We really need to do everything we can to support the efforts of developing residential here. You know, we’ve tried again and again, and we’ve run up against the fact of the matter that developing residential property in Alaska is expensive, and it doesn’t always pencil out. But I think we need to change our thinking, because if we stop there, and we just say, ‘Okay, then we’re done,” I mean, all the young people are gonna move to Wrangell. They’re gonna move to Bellingham. You know, we’re gonna have bigger problems as time goes by.”
Fine-Walsh said the value of housing far outweighs the monetary loss to the Borough that would come from selling the land below assessed value. He said the lack of affordable housing makes it hard for the Borough and local businesses to find employees.
Fine-Walsh said that public accountability is important when dealing with a public asset. He said the ordinance is written to make sure the disposal of land incorporates lots of community feedback, as well as hearings with Planning and Zoning and the Borough Assembly.
Assembly member Jeigh Stanton Gregor said he appreciates the transparency that is written into the proposed law.
“In order to undertake such a thing, having many checks and balances in place, and multiple layers of wired-in transparency is key, which should be able to give the borough flexibility when we see things that meet the definition of public benefits” he said.
The Borough Assembly would decide whether each proposed project meets the definition of public benefit.
Assembly member Donna Marsh expressed concern that selling land below assessed value might decrease the value of surrounding properties. She also said she finds the specifics of the ordinance too restrictive.
“I would rather go with a case by case situation where the interested parties present their case, their facts, their proposals, and we go with that way rather than changing the whole ordinance that has such huge ramifications on everybody in the community,” she said.
A change to the land sale law has been in the works since last fall. Skylark LLC was working to develop a subdivision of manufactured homes. The company owns land between Severson’s Subdivision and Skylark Park, and planned to buy more borough-owned land in the area. But owners of the company said that it would be impossible to develop a subdivision of affordable, entry-level homes if they had to buy the borough lots at their assessed value.
Petersburg law allows the Borough to sell land to nonprofits at below assessed value. Last year the assembly voted to allow the borough to sell its land to federally recognized tribes.
The ordinance passed 4-1 its first time before assembly, with Donna Marsh the only ‘no’ vote. The public will be able to weigh in on the issue during the next Petersburg Borough Assembly meeting on Monday, March 4, at noon. The ordinance will be considered a third and final time at 6 p.m. on March 18.
