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NOTN- The Assembly debated the future of 155 Heritage Way, the city’s current City Hall, and voted last night to send the ordinance to the full Assembly for public hearing and back to committee for further refinement.

City staff recommended selling the building by sealed bid with a $2.5 million minimum.

“The intent of bringing the disposal of City Hall to you well in advance of moving into the (new) municipal building or the Burns building, is we acknowledge that this conversation could take some time and even a sealed bid process, which is relatively straightforward, will take about nine months.” Said City Manager Katie Koester.

Members were split over whether to require an appraisal before sale, with some arguing an appraisal would provide necessary valuation confidence.

“To me, we have a duty. This project to move City Hall has been very expensive, more expensive than we would have ever wanted, and the public is not happy about it.” Said Christine Woll, “I do feel like we have a responsibility to get at least fair market value for this property. That being said, I don’t think we need to get the highest amount that we could get out of this, because I think that will come at an expense to our other goals. This is our downtown core and our waterfront, and we hear all the time from people who want to make sure this space stays year round in nature. So I think if we don’t design a process that allows us some control, not all the control in the world, but a bit more control to make sure that it goes somewhere that supports other community goals and is more year round in orientation.”

Others said it would add cost and delay.

“I would disagree with getting an appraiser, I think that’s spending money we don’t have to. If Huna Totem dock goes in, this is going to be a really valuable piece of property, and I think 2.5 will be nothing to what we can get for it.” Said Mayor Beth Weldon, “I probably have a couple minor little conditions to put on it, but not major ones. And my minor would be, just to give people food for thought, no jewelry stores, and a portion of the building would have to be year round. But everybody has to keep in mind that we can sell it like this, and then that person who bought it could turn around and sell it and have no conditions on it. So we just want to be careful. And I, like Ms. Woll, would like to get as much money as we can from the building.”

Several members urged sale conditions to protect downtown character, which is most commonly a requirement for year‑round occupancy of some portion of the site.

“Thank you, Mr. Chair. I also would resonate that I’m not particularly interested in doing the assessment, but it’s for a different reason.” said Nano Brooks, “Just a few years ago, we spent a lot of taxpayer money doing a campaign on why we need the new building, and plenty of data and figures came out from that campaign that this building was worth around $3 to $5 million and needed 14 million in deferred maintenance, therefore rendering it worthless. We all know that the land is extremely valuable, extremely desirable, but to say we’re selling a building I think, isn’t the most transparent and upfront, and we already did spend a lot of money figuring that information out that we put out there to the public. We need to find money where it can be found. But doing what’s right by the public takes the precedence too. So as far as the stipulations or requirements, I think, like the others were saying, having a preference for someone interested in year round operations, and then, if possible, having preference for a local purchase or two.”

Staff told the committee the $2.5 million minimum was set after consulting the assessor, and estimated a commercial appraisal would cost roughly $15,000–$20,000 if the Assembly opted for one.

Officials said the city will return with options on sale method, minimums and possible conditions at the next assembly meeting where the issue of City Hall will be brought to the public.