Economic Development Commission recommends approval of Pleasant Valley 2 Rivers volunteer fire group's community-purpose tax exemption

The Fairbanks North Star Borough Economic Development Commission voted 5-0 on April 15 to recommend that the Borough Assembly approve a community-purpose property tax exemption for the Pleasant Valley 2 Rivers Fire Association, also known as 2 Rivers VFD.

The recommendation came after a brief presentation by Ryan Danhauser, deputy assessor, and a period of questions focused on ownership, tax responsibility and the applicant’s operations. Commissioners voted to forward a recommendation of approval to the assembly; the recommendation does not itself change property tax status and an assembly member must sponsor any ordinance or resolution that would implement the exemption.

Danhauser told the commission the applicant, Pleasant Valley 2 Rivers Fire Association (Volunteer Fire Department No. 31382), had paid the nonrefundable $300 application fee, submitted required supporting materials and filed on parcel 0225860 under Fairbanks North Star Borough Code 8.08. He said the association is not the property owner; the parcel is owned by Badger Road Baptist Church. Danhauser also said the applicant had provided a certificate from the State of Alaska recognizing it as a volunteer fire department; the certificate had lapsed on Dec. 31, 2024 but the assessor’s office confirmed a renewed certificate had been filed.

Commissioners pressed for details that were not available because no representative of the applicant attended the special meeting. Commissioner Dean asked whether property taxes on the parcel were current; Danhauser replied that the most recent yearly tax was about $2,700 and that the association had paid that bill on behalf of the church. Commissioners asked whether the lease specifies which party is responsible for property taxes; Danhauser said the borough had reviewed the lease and it did not specify who pays taxes.

Commissioners also asked how the association provides services. Danhauser read the applicant’s description that the Pleasant Valley 2 Rivers Fire Association provides emergency response, fire suppression, public fire-education activities including CPR classes, installs automated external defibrillators, conducts wildland fuel-hazard assessments and runs a 10-month junior firefighter education program with the 2 Rivers School. He said it was unclear to the assessor’s office whether all of those activities operate from the rented location or were part of a broader plan.

Commissioner McGinnis asked whether 911 calls for fire in the 2 Rivers area route to the association; Danhauser said he did not know. Commission members added that the nearby Steeves volunteer fire service area provides emergency medical services but not fire suppression, and that no other agency currently provides regular fire and rescue service to parts of the 2 Rivers area.

Danhauser explained the administrative process for the community-purpose exemption: the applicant must reapply annually with a $150 application fee and provide annual financials confirming continued nonprofit status and use of the property for the exempt purpose. Commissioners noted the lease’s lack of clarity about tax responsibility and discussed urging the applicant to attend any future assembly hearing so members can ask about insurance, operations, the lease terms and how fire response would be routed.

Commissioner Tidwell moved to recommend approval; Commissioner Leginas seconded. The clerk took a roll call: McGinnis—yes; Dean—yes; Leginas—yes; Tidwell—yes; Mayor Hopkins—yes. The clerk announced the tally as 5-0.

The commission discussed scheduling: the application had a 21-day deadline from the assessor’s approval, prompting the special meeting. Staff said, and commissioners agreed, that when the matter is considered at the assembly the applicant should be present to answer questions. The commission’s recommendation will be one of the materials available to the assembly if an assembly member sponsors the exemption for formal consideration.

Clarifying details from the meeting: the applicant does not own the parcel; the owner is Badger Road Baptist Church; applicant paid the most recent property tax (about $2,700); the application fee of $300 was paid; annual reapplication is required with a $150 fee and submission of financials; State of Alaska recognition as a volunteer fire department was in the packet (expired Dec. 31, 2024) and a renewed certificate was later located. The lease provided by the applicant does not specify who pays property taxes. The applicant reportedly received a community-cap grant (one of three applicants in the 2 Rivers area) that split $15,000 among them.

The commission’s recommendation is advisory. If the assembly takes up the exemption, an assembly member must sponsor an ordinance or resolution; the commission and borough staff indicated they expect the applicant to appear at any assembly hearing.

The meeting lasted about 18 minutes for this agenda item; no members of the public had signed up to speak and no applicant representative attended. The commission adjourned after completing the single agenda item.