Kodiak Community Health Center asks borough for land to secure construction grant

Kodiak Community Health Center CEO Oliver Wilson told the Kodiak Island Borough Assembly on Sept. 11 that the health center needs borough help securing a site so it can use a federal construction grant to expand services for Kodiak Island residents.

Wilson said the center received roughly $7,800,000 in 2023 for construction but cannot use the award to purchase land or an existing building. "We cannot use that funding to purchase an existing building. We cannot use it to purchase land," Wilson said. She said the center must have a site and architectural plans before it can pursue additional funding and that the grant must be obligated within the next year or the funding will be lost.

The request prompted questions from assembly members about whether the borough should donate land, provide a long-term lease, or identify an already-developed parcel with utilities. Assembly member Bo said the borough should consider a long-term lease rather than permanently disposing of public land. "A long term lease that offsets some of that, I think, would be a good use of taxpayer resources and, borough land," he said. Assembly member Steve raised concerns that the $7.8 million alone is unlikely to cover development costs in Kodiak and asked whether the grant requires land ownership; Wilson said the grant does not require ownership but does require a site "that we can build on." She also said she has requested a minimum of $15 million from a rural health transformation fund and that other funders have signaled interest if the center can show a plan.

Assembly and staff discussion identified several borough-owned options to investigate quickly because of the short timeline. Assembly members and staff pointed to a flat, utility-served parcel at the intersection of Mill Bay Road and Benny Benson Drive as a practical near-term location, and they discussed former college/university property and the North Star site as possibilities. Assembly member Jared noted the borough also owns other large parcels but warned development costs can vary widely depending on access to utilities. Manager Amy Williams said staff will follow up with the college, the city and borough departments about available, utility-served sites and report back to the assembly.

Wilson described expected service expansions from a larger facility: more exam rooms to reduce waits, behavioral-health capacity, a recently launched pharmacy, and continued care for uninsured patients as a federally qualified health center. "We see everyone. Everyone that walks through our door, we will see them regardless of their ability to pay," she said.

There was no formal motion or vote during the Sept. 11 work session. Assembly members expressed broad support for exploring options, asked staff to investigate lease versus donation arrangements, and requested regular updates from the health center on site and funding progress. Wilson said she is conducting outreach to the city, the college and potential funders and will keep the assembly informed.

For now, the health center is seeking either a donated borough site or a long-term lease so it can finalize architectural plans and pursue additional construction funding before its existing grant obligation window closes.