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Assembly leans toward seeking public‑private partners for rehabilitating two former mental‑health apartment buildings; asks manager to solicit interest
Summary
After hearing environmental abatement and design cost estimates, the assembly directed the manager to seek public‑private partnership interest and return with potential partners and options within roughly 30–60 days rather than immediately committing to a $9–10 million borough renovation or full demolition.
Kodiak Island Borough project staff reported that demolition and hazardous‑materials abatement on two former mental‑health apartment buildings is underway and that the current work will leave two building envelopes with temporary roof underlayment and secured openings.
Staff presented three options: (1) proceed with architectural design and remodel the existing buildings in place (Jensen Yarbrough design proposal estimated at $415,910 for design and construction administration), (2) change scope and obtain a contractor proposal to demolish the buildings entirely, or (3) seek a new design and rebuild on the site. Staff also shared a rough order‑of‑magnitude (ROM) construction estimate (presented in October 2024) of roughly $9.5 million to convert the shells into code‑compliant housing units (12 units across the two buildings). The ROM and design estimate, staff said, would push construction bids into 2026 if the assembly directed design to proceed now.
Assembly members raised a range of concerns: seismic, wind and current building‑code upgrades needed for a 1966 frame; cost per unit and whether the borough should become a landlord; deed restrictions limiting allowable uses (education and healthcare were cited as clearly authorized uses under the deed restrictions); ongoing preservation and vandalism risks while the buildings remain in a temporary condition; and the expense of long‑term shell maintenance. Manager Williams noted the borough has approximately $4,787,173 in ARPA/local assistance tribal consistency funds that do not currently have an expiration date and that could be considered for public‑interest projects, though several assembly members urged fiscal caution before committing ARPA funds to extensive construction.
On balance the assembly expressed reluctance to authorize a $9–10 million borough‑funded renovation at this time. Instead, several members recommended staff pursue interest from strategic partners and public‑private partnership (PPV) arrangements that could preserve the borough's ownership of the land while allowing an external partner to invest in and complete renovations. Assemblymembers asked the manager to solicit a broad set of potential partners (not just previously known interested parties), to present outreach results within 30 days and return to the assembly with findings and recommendations within 60 days. Staff noted abatement for hazardous materials (PCBs and other items) must be removed and, regardless of the ultimate decision, certain PCB materials will need off‑island disposal at an estimated preliminary removal cost of $275,000 for the containers identified.
Why this matters: the buildings sit near Kodiak High School and are visible to neighbors; choices now will determine whether the borough invests significant capital, seeks partners, or demolishes structures. The assembly emphasized preserving the building envelope where feasible and seeking partners rather than immediately demolishing or committing borough capital to a large renovation.
No formal decision to demolish or rebuild was recorded; the assembly gave direction to the manager to begin community outreach for potential partners and return with recommendations.
