May 07, 2007
Monday PM

Dear Sitnews, Community and Borough Assembly Members,

On the 5/7/07 Agenda, Item 09b is in regard to the ongoing Auction and sale price of the Whitecliff School and property.

The bid process for Borough Surplus Properties has already begun and is currently being advertised and includes the Whitecliff School and property. The auction will take place on Thursday, May 31, 2007 at 10 AM in the Ted Ferry Civic Center.

The minimum bid of $500,000 is below the 2007 assessed value of $568,800 @for the land alone. Add in the building at $533,400 for a total assessed value of $1,122,200. As I understand the assessed value is always below market value.

The initial minimum bid was $20,000. I would still like to know who and how that price was determined. Wiser minds decided it was a giveaway at that price and could become a situation in which an entity or non-profit might be able to purchase it but not improve or build anew. In such an instance an entity or non-profit just might be standing at the podium asking for funding for an expensive project that they couldn ft afford to begin with. It would be nice if the Borough would at least get the cost of upkeep for the last few years and the $98,000 spent on evaluation for the Whitecliff (Schoencliff) Center.

The following is a cut and paste of the body of the Agenda request:

On February 5, 2007, the Assembly approved Resolution No. 2025 which established the minimum bid prices, terms and conditions for the sale of Borough properties scheduled for disposal in the Spring of 2007. Staff has been advertising the properties and received numerous calls regarding most of the properties from interested parties; however, few calls have been received regarding the former White Cliff School Those few calls were generally to inquire on the current zoning (which is public lands and institutions) and to confirm it would need to be rezoned for commercial or residential use.

During the Assembly budget work session on April 23 the potential revenue from the spring sale was discussed and several members expressed concern that the minimum bid price for the former White Cliff School may have been set too high. Staff advised the Assembly that the appropriate method for reducing the minimum bid price would be to approve a subsequent resolution prior to the date of the auction, which is scheduled for May 31. Resolution No. 2035 has been drafted for this purpose.

Resolution No. 2035 also addresses an issue that has recently been raised by the State Attorney General's office in that they have indicated they may file suit to assert a superior claim to one or more parcels which the Borough has foreclosed upon. A copy of the letter from the State is attached. Contrary to the statement in the letter, none of the parcels they address were listed in the sale list attached to Resolution No. 2025 but it is possible that the State may make a similar claim with respect to a parcel which is listed for sale in the auction. While the Borough disputes the position taken by the State and maintains, based upon a recent Superior Court order in another case, that the Borough's tax lien is not extinguished by State action cancelling a sales contract, it would be prudent to allow the Manager the flexibility to respond to any such suit in a manner which does not delay the auction of the remaining parcels. The language in section 3 of Resolution 2035 is in!
tended to provide the Manager with this latitude. (end of Agenda request)

Is that a "scare tactic" about the Sate of Alaska bringing suite or just a way for the Mangers office to get more glatitude h?

Hmmm, how much easier would it be to get the zoning changed if the minimum bid price were reduced? The Borough can change the zoning or an individual can make a request to have it rezoned. OR keep the zoning as is and build Borough Offices on the site. New Borough Offices are a great need NOW. It's going to cost an enormous amount no matter where they get built.

I think it most prudent to stick to the plan already implemented then if it doesn ft sell that would be the time for reconsideration in regard to the Whitecliff School property.

Go to:Assembly Meeting Packet May 07, 2007: Item 09b


Sincerely,

Jackie Williams


Received May 05, 2007 - Published May 07, 2007

 

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