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Assembly committee forwards both sealed‑bid and negotiated‑sale paths for 155 Heritage Way
Summary
Committee members split over maximizing sale revenue versus preserving year‑round community uses. The committee authorized staff to prepare a sealed competitive‑bid ordinance (minimum $2.5M) and a negotiated‑sale ordinance authorizing negotiation with Sealaska Heritage Institute for $1.5M; an amendment to raise the minimum bid to $5M failed on an even roll call.
City staff briefed the committee on options for disposing of 155 Heritage Way (current city hall). The packet included a proposed ordinance to dispose of the building via sealed competitive bid with a minimum accepted bid of $2,500,000 and a description of a separate negotiated‑sale proposal from Sealaska Heritage Institute (SHI) for $1,500,000 with community‑oriented programming.
Manager Kester summarized the options and said staff had not yet received outside interest; she outlined the merits of sealed competitive bidding (market sets value) and negotiated sale (ability to place conditions and secure community uses). Kester noted that the lands office estimated about nine months to complete a sale, that mothballing costs vary by care level, and that a negotiated sale would not necessarily require a different MOA but would be handled through negotiation.
Several assembly members urged an appraisal to better understand market value; others argued the market should be tested by sealed bid. Deputy Mayor Smith proposed raising the sealed‑bid minimum to $5,000,000 as a threshold test; that amendment was withdrawn and later voted on but failed on a roll call (4 yeas, 4 nays). The mayor moved to introduce the sealed competitive‑bid ordinance (serial 2026‑15) and also to have staff draft a negotiated‑sale ordinance authorizing negotiation with SHI for $1,500,000; both were forwarded to the full assembly and scheduled for public hearing on the same schedule.
Supporters of negotiating with SHI emphasized year‑round community benefits (arts, education) and continuity for the proposed museum and cultural uses; critics warned that a negotiated sale at $1.5M could forgo substantial sale revenue and called for either an appraisal or sealed bidding to know what the market would bear. The committee agreed to bring both ordinances to the full assembly for public hearing so the public can weigh in.
