Assembly hears plan to sell 54 remote-recreation lots; manager outlines lottery, online auction and safeguards

Danny Welch, manager of the Division of Natural Resources for the Fairbanks North Star Borough, presented Ordinance 2026-67 at a March 19 Committee of the Whole meeting, outlining plans to subdivide, finish platting and sell borough-owned lots in the West Chantoneka River Recreational Subdivision.

Welch said the borough appropriated about $552,000 for the subdivision (ordinance referenced as the FY2024 appropriation). He reported the final plat and mylars were in his office and estimated final completion in late March or early April; about $55,000 remained in the project budget. The property includes roughly 54 lots ranging from 5 to 19 acres (5–7 acres most common) zoned Remote Recreation Site District to preserve recreational use rather than allow full residential development.

“The trail is pretty much right in the middle,” Welch said, describing about three miles of constructed trail and approximately 18 acres of dedicated rights-of-way intended for ATV, snowmachine and nonmotorized winter use. He told members the closest point of river is about 550 feet from the subdivision boundary and that the intervening land is state-owned Tanana Valley State Forest.

Sale structure and rules: Welch detailed a three-part initial sale conducted simultaneously for roughly 30 days — sealed bids, an online auction and a lottery restricted to Alaska residents (borough residents emphasized) — followed by a secondary online auction (open to all) for unsold parcels and then traditional over-the-counter sales. He said purchasers must be natural persons (not corporations) and that all sales would be conveyed fee-simple with a customary 10% down payment at signing.

On valuation and lottery mechanics, Welch said initial bidding could start at 90% of fair-market value to encourage participation but that over-the-counter sales revert to 100% fair-market value. He described lottery rules limiting winners to a single lottery lot and providing alternate winners to replace any back-outs; for the online auction the vendor will hold a 5% credit-card-authorized amount to secure bids.

Assembly questions focused on fairness and implementation. Mr. Krass raised a drafting issue about the ineligibility clause — the ordinance currently bars the mayor, mayor’s office staff and division employees from participating in the lottery; Welch agreed the language should clarify that the restriction applies only to the initial sale types and that leftover lots could be sold over the counter to those employees. Assemblymember Guttenberg asked whether monuments and corners are in place; Welch said monuments were installed and setback buffers should mitigate minor locating errors. Ms. Wilson asked about pricing if lots remain unsold; Welch said the borough could return to the assembly to adjust policy for stale parcels, but selling below fair-market value requires specific findings in code.

What’s next: Welch said the intended sale date would be on or about May 26, but he expected the initial auction to likely start closer to June 22 to avoid a holiday conflict; he also said appraisals, advertising and title work remain before recording deeds. Assemblymembers praised the outreach and the trail work shown in photographs and directed staff to refine ordinance language on eligibility and administrative procedures.

No formal vote occurred at the session; the item remained in committee with additional technical clarifications requested.