Work on a new housing subdivision in Wrangell is currently on hold during the winter months. Once the weather warms up a little, construction will continue and people are expected to purchase lots later this year.
A former boarding school for Alaska Native children previously sat on the site, but plans are still in the works.
Local officials hope that Wrangell’s new subdivision, Alder Top Village, will relieve the local housing pressure.
Kate Thomas, the borough’s economic development director, said that utilities still need to be installed. Construction should be completed by early fall.
That’s when 20 lots will sell under two methods. Half of the them will sell through a public surplus, or an auction, with the land sold to the highest bidder. Buyers can bid on as many lots as they want. Thomas said each lot comes with a view.
“They have an unobstructed view of the water, and the real value is across the street with a recreation site,” Thomas said. “Shoemaker Bay Recreation Area has a park, playground and then other infrastructure north of the harbor.”
Affordable housing vs accessible housing
The other ten lots will sell for a lesser price. Thomas said they’re located right behind the other lots with no waterfront view.
“The lots immediately behind them (auction lots), there’s 10 more lots there,” she said. “We proposed to the Economic Development Board to lottery those lots.”
Thomas said they talked a lot about offering affordable housing, but it doesn’t align with buying raw land. Building on the property is already very costly.
The borough still wants it to be accessible to families and young people. So the borough decided a lottery would allow for this to happen at a bit more random selection. It will permit people to buy 10 tickets, or applications, to increase their winning chances. One person can win only one lot, even if the draw official picks someone’s name multiple times. The lottery gives people a chance to buy land without being outbid by someone in a more privileged position.
The surplus, or auction lots, will start at three dollars per square foot. The lottery lots will be 50 cents less at two dollars and 50 cents per square foot. The lots range from just under a half acre to just over a half acre.
The price range for the lottery lots will be between approximately $48,000 to $77,000.
Although the lots are viewed as affordable, buyers will still have to build their homes on them.
“They’re all grubbed and cleared, which is to the advantage of anyone interested,” Thomas said. “There was existing infrastructure on the lots long ago and so there’s a little bit more stability on the ground there.”
She said regardless, people will still have to do some earth and rock work to build up their parcel. They’ll also need to work with Wrangell’s utilities division to make sure everything is properly hooked up.
Utility upgrades might need to happen years down the road
Tom Wetor, the borough’s public works director, said the borough has the infrastructure to support the initial phase of the subdivision. Though it might need upgrades later. He said that there’s no question that the water distribution lines could handle the increased flows at Alder Top.
“Where there could be an implication, I guess, down the road with water would be during a drought implication,” he said. “At which point we’re in a tough position, no matter what, if we had a significant drought one summer and reservoir levels drops.”
As for getting water to Alder Top, there would be no issues with these 20 lots on lower elevation. He said there could be issues for future development if and when the subdivision grows larger.
“If we get to that point, which that’ll be years down the road, there’s a good likelihood that additional water infrastructure would be needed at that point,” he said. “That’s primarily because we’re a gravity fed system and I think phase three of alder top starts going up the hill quite a ways.”
He said this is where he questions if there will be enough pressure for the water to flow to the lots by way of gravity.
As for the sewer system, he said that’s a bit more complicated. He’s concerned about the sizing of some of the current pumps.
“I think we’re going to be fine for years to come,” Wetor said. “But once every single lot is sold and developed, some upgrades may need to happen before we get to that point.”
He said it will take years down the road before the sewage lines are a real concern. The borough doesn’t have a sewer project designed yet, but they did start looking into it to understand how much more they would need to do.
Achieving homeownership as a millennial is a shaky proposition
Ellen Jellum, a massage therapist in Wrangell, wants to partake in the Alder Top lottery with her husband, David. She said she’d like to achieve homeownership, but as a millennial, it’s a shaky proposition.
“I would love to have a secluded property out there out the road, but I just don’t know if I can afford it,” she said. “I do okay financially, but it’s a very inflated market out there. So yeah, Alder Top might be doable.”
Alder Top sits near a slope and with the recent deadly landslide that happened in November, Jellum said she’s still interested in the lots.
“I feel like that’s a risk we all take, except for maybe those of us who live in town at the moment,” she said. “But if you live anywhere else out the road, that’s a reality of what you might be facing. We still don’t know enough about our own geology to be able to predict it yet.”
So Ellen and her husband, David, will give Alder Top a chance and see how far they get with that process.
“I guess it depends on just how it goes,” Ellen said. “I know some of them are gonna go buy lottery and they’re gonna sell some of them outright, and so I guess it depends on what comes our way.
“Still gotta win the lottery to have a chance anyway,” David said.
The borough aims for the auction and lottery to be held during late summer or early fall, after the height of the fishing and tourist season.
The borough will host a home builders financial literacy symposium on February 24. Finance advisors, lenders, real estate agents and city officials will be available to speak with potential homebuyers. The event will happen between 9 a.m. and 12 p.m.. Anyone interested can attend.
