Assembly approves $1.2 million purchase of Seward-area parcel, conditions study review

The Kenai Peninsula Borough Assembly enacted an ordinance authorizing the acquisition of an 80-acre parcel near Seward for $1.2 million and funding a related feasibility study to evaluate road access. The assembly amended the ordinance during debate to require that the completed feasibility study confirming roadway access that meets borough road service-area standards be provided to the assembly prior to final approval by the mayor.

Finance Committee Chair Tom Tunseth described the property as “Blueberry Hill,” saying the parcel would adjoin existing borough lands and could secure higher-ground access out of flood and tsunami zones. The ordinance appropriates funds from the Land Trust Investment Fund and the Land Trust Fund; Tunseth told the committee the borough currently holds about $17 million in the land trust fund.

Key financial terms and study arrangements recorded in the meeting: the borough will spend $1,200,000 to purchase the 80 acres; the ordinance includes $50,000 associated with the purchase, split into a $25,000 borough share for a road-access feasibility study and $25,000 available for closing-related costs. The Alaska Mental Health Trust Authority will contribute $25,000 toward the feasibility study, making the total study cost $50,000. An amendment adopted on the floor conditions the purchase on a satisfactory feasibility study confirming construction of roadway access that meets borough standards; the study must be provided to the assembly prior to final mayoral approval. The feasibility contingency in the purchase contract expires July 1, with a contracting closing date listed as September 15.

Public testimony at the meeting included Seward City Manager Kat Sorensen, who submitted a letter of support arguing the parcel could unlock housing opportunities that Seward’s geography otherwise constrains. Other public speakers and one assembly member opposed the purchase; critic Ed Oberts urged the borough not to buy land that private developers could provide and said the borough should instead sell land rather than expand holdings. Assemblymember Eklund cast the lone no vote on final passage.

Chair Tunseth said potential benefits include expanded evacuation routes, protection from floodplain exposure, and an increased property tax base if the land is later subdivided. Assembly discussion noted possible alternative access via a section-line easement on Nash Road; the ordinance classifies the parcel as “rural” for borough management purposes. Borough staff clarified that classification and borough management classifications do not restrict future private use if the land is later sold; classification is for borough management.

The ordinance passed with an 8–1 tally on the roll call: eight assembly members voting yes and one no (Eklund). The adopted amendment requires the mayor’s final review and allows the assembly to receive the completed feasibility study before final mayoral approval.