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Assembly weighs options for two abated Signal Hill mental‑health buildings; KCHC reuse floated
Summary
After $1.9 million in abatement and demolition work left two building shells at Signal Hill, the assembly discussed renovating in place, full demolition, or leasing to Kodiak Community Health Center for behavioral‑health space; deed restrictions and long‑term maintenance obligations were flagged.
Borough staff told the assembly that demolition and abatement of two Signal Hill mental‑health buildings are complete, leaving two stripped building shells, and that the abatement phase cost $1.9 million versus an earlier rough estimate of $1.35 million.
Manager Amy reported a Reconstruction‑In‑Place rough order of magnitude (ROM) estimate of about $8.1 million for future work. With the abatement phase finished, staff asked the assembly to direct next steps: commission updated renovation proposals, demolish the shells entirely, or hold and pursue partnerships.
Several assembly members urged staff to pursue talks with Kodiak Community Health Center, which is actively seeking renovation‑eligible space for its expansion. Assembly members said the buildings could provide 16–20 parking stalls, address KCHC’s parking concerns, and expand behavioral‑health capacity. Manager Amy and staff cautioned that deed restrictions placed on the properties impose use limitations, and any sale or conveyance would need federal review in some cases. Staff said KCHC’s planned renovation would likely fit the site’s community‑use covenants but that lease and long‑term maintenance details would require negotiation.
Members noted structural uncertainties (cut beams and stairway alterations from past work) and said KCHC’s architects would need to verify floor loads and other structural constraints before any occupancy decision. The assembly gave staff direction to pursue engagement with KCHC to explore a lease or favorable terms, and to return with assessments of deed restrictions and long‑term maintenance liabilities.
