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Sitka assembly opens policy work to allow disposal of municipal land for defined public benefits such as affordable housing
Summary
The assembly directed staff to draft an ordinance allowing municipal land to be sold or leased below appraised value for projects that deliver defined public benefits (for example, affordable housing), including safeguards, eligibility criteria and monitoring of permanent affordability; members asked for careful definitions and stakeholder input.
Assemblymember Riley introduced a discussion item proposing an ordinance to let the City and Borough of Sitka dispose of municipal land at below-appraised value for projects that provide a demonstrable public benefit—most prominently affordable housing.
Riley said high land costs make housing development prohibitively expensive and the assembly has already prioritized housing in the strategic plan. "The cost of land often makes housing development prohibitively expensive for a broad range of Sitkans," she said, requesting staff draft an ordinance that would authorize below-market disposal when the assembly determines the public benefit outweighs maximizing immediate monetary return.
Members debated scope and protections: whether eligible recipients should be limited to state/federal agencies, federally recognized tribes or nonprofits, how to ensure permanent affordability (deed restrictions, monitoring), how to avoid unintended giveaways, whether the municipal land study should come first, and the staff workload implied by ordinance drafting. Several members suggested a working group and strong definitions for "public benefit," while others argued a clear legal process would reduce ad-hoc decisions and speed projects.
Municipal staff (John) said existing code already allows some exemptions from competitive bidding in narrow cases but that the proposed ordinance would create a clearer, defensible framework and a flowchart describing review, public notice, planning commission review and final assembly ordinance for disposal. Staff committed to draft language, incorporate planning commission priorities from the land study, and consult stakeholders.
The assembly did not vote on an ordinance that night; staff will draft language and return for public deliberation with input from sponsor members and planning staff.
