Assembly tentatively approves disposing Island Lake lots with owner‑occupancy and build covenants discussed

Community Development Director Chris briefed the assembly on proposed disposal of Island Lake parcels subdivided into four R2 lots and asked whether the assembly wishes to move forward with a resolution setting sale method and terms.

Assembly members voiced strong support for prioritizing local, owner‑occupied housing. Suggestions included starting with sealed bids at assessed or market value limited to owner occupants, a five‑year development covenant that lets the borough repurchase undeveloped lots at purchase price, owner‑occupancy requirements and a prohibition on short‑term rentals. Some members urged code changes or clear definitions ("primary residence" and what constitutes "developed") and discussed whether to use a lottery or sealed bids to reduce litigation risk. Several members emphasized that borough revenue will likely accrue through future property taxes rather than upfront lot sale price and urged flexible approaches to encourage construction without speculative purchase.

Members also asked staff to check sewer, water and drainage capacity and flagged studies and prior committee work on Beaver Lake and other parcels; staff said survey and subdivision work on Island Lake is mostly complete and that rezoning to R2 was the lands committee recommendation. The assembly directed staff to prepare a draft disposal resolution with the discussed terms and cross‑check code to determine whether ordinance changes are needed to support the preferred disposal method.