Subdivision Update

Follow-Up to Subdivision Inquiry

At its January 2013 Policy Session, the Assembly gave staff direction on three housing related projects:

To develop an RFP for workforce housing
To look at developing a Revilla Road Subdivision totaling 307 acres.
To look at costs and funding mechanisms to construct platted roads, provide power, and install sewer and water into the Mt. Point Subdivision

The first two projects were combined, and an RFP was issued in July 2014. All funding required for the project would be the responsibility of the developer, with the Borough responsible for reducing carrying costs and providing the land. The RFP allowed for further examination of the site and modifications to the selected proposal based on new information regarding the site from said examination. Two proposals were received with the Ward Cove Group’s proposal primarily selected and negotiations for a land sale price began. The RFP was eventually canceled, and a sale was never brought forward for consideration. Among the issues cited by the developer was the high cost of site prep and developing access roads and utilities. Only 60% of the site was determined to be usable due to the topography, further limiting potential project opportunities.

In late 2019/early 2020 a developer contacted the Borough requesting to purchase a 20-acre portion of land on Tract A, Parcel 30-7490-034-000, near the location of the Revilla Road RFP mentioned above. The developer was interested developing the property for housing. The developer was in the process of developing Imahoff Avenue in Wacker City, which could provide access to the 20-acre portion of Tract A that he was interested in. A preliminary survey identified more precisely where the property was located in relation to Slide Ridge, the mountainside in Tract A, and the project was determined to be unfeasible due to the topography resulting in the withdrawal of the property sale.

The third project (Mt. Point Subdivision) had two major issues hinder the development of the subdivision. First, the high cost of road development in the subdivision which was estimated to be $10M in August 2022. Second, despite the large size of the subdivision, over 90 parcels, the access is limited. At the direction of the Assembly, staff has been working with private property owners to obtain access on the western end of the subdivision. Staff is also working with the State of Alaska Department of Natural Resources to obtain ownership of the green parcels in the subdivision and to obtain a smaller DNR parcel that interrupts the right of way from Roosevelt Drive.