Kodiak Community Health Center asks borough for land to secure $7.8 million construction grant

Kodiak Community Health Center CEO Oliver Wilson told the Kodiak Island Borough Assembly on Sept. 11 that the clinic has "outgrown our space" and needs a site where it can build new facilities to reduce patient wait times and expand behavioral-health and pharmacy services.

Wilson said the center received a construction grant of about $7,800,000 in 2023 but "we cannot use that funding to purchase an existing building. We cannot use it to purchase land. The way the grant was awarded ... we can only use it to build and construct on an existing space." She said the grant must be obligated by 2026 and that the center needs a parcel and architectural plans to leverage additional funders.

Why it matters: Assembly members and staff framed the request as time-sensitive and potentially high‑impact for local health access. Without a buildable site—either donated borough land or a long-term lease—the health center said it cannot apply for complementary funding or finalize designs needed to move forward.

Discussion and options: Borough manager Amy Williams summarized the request as a land disposition question. Assembly members suggested alternatives that would preserve public value while supporting the center: a long-term ground lease rather than an outright donation, locating the facility on borough land with existing utilities, or pursuing university-owned property near Kodiak College. Assembly member Bo raised concerns about permanently removing land suited for residential development and whether the grant amount would be sufficient to complete construction even if land were donated. Wilson acknowledged $7.8 million alone "is not enough money to build anything really in Kodiak," and said other funders have signaled willingness to contribute if KCHC can show a site and plans.

Potential sites and logistics noted by members included the corner of Mill Bay Road and Benny Benson (near the Kodiak College parcel) where water and sewer are available, a flat lot across from KANA (the borough-identified site), and property the city may hold. Several assembly members expressed preference for a long-term lease to protect public-tax interests; others favored reserving land and leasing the site, as the borough has done previously with the hospital.

Services the center proposed to expand: Wilson said KCHC would increase primary medical appointments, behavioral-health services and a recently opened pharmacy, and continue community programs such as free sports physicals at the high school. She also noted KCHC is a federally qualified health center that provides care regardless of ability to pay.

Next steps: Assembly members urged staff to continue conversations with Kodiak College, the city and KCHC and to identify borough parcels with utilities that could meet the center’s short timeline. No formal action or vote was taken; the item remained a discussion of potential paths (lease vs. land donation) and logistical constraints tied to utility availability and development cost.

Ending: Assembly members and the manager emphasized continued coordination with KCHC and other local landholders to try to identify a near-term, buildable option before the grant obligation deadline.