Borough drops price on buildings

PALMER — It’s been more than a year; has the Mat-Su Borough managed to sell its pair of dilapidated downtown buildings?

Nope.

Back in March 2010, the assembly authorized management to get rid of the old administration building at 125 West Evergreen St. and the old city morgue at 247 S. Alaska St. The borough was asking $350,000 for the administration building and $380,000 for the morgue, prices that are fair market value as determined by an assessment.

At Tuesday’s regular meeting, borough staff told the assembly that there had been numerous visits from potential buyers in the 17 months since, but no offers on the morgue. The administration building had generated some discussion, but no offers.

“We’re stuck at a price right now by code that no one is willing to pay,” Borough Manager John Moosey said. “Is it really fair market value? I would contend that it’s not.”

The assembly was asked Tuesday to decide whether to allow Moosey to negotiate a price below that fair market value price set in 2010.

“No. 1, we want to convert an asset we’re no longer using,” Moosey said. “No. 2, we want to put it back in the free market and No. 3, we want some more money.”

But the assembly wasn’t so sure.

Assemblyman Ron Arvin asked why the borough didn’t just demolish both buildings and sell the land at fair market value.

Nancy Cameron, a borough land management agent, said that tearing the buildings down would cost more than the land is worth.

Assemblywoman Cindy Bettine said she hasn’t had enough time to observe Moosey in action to feel comfortable tasking him with negotiating a price. Moosey took the helm earlier this year.

“I don’t know Mr. new manager’s abilities with real estate,” she said. “I think it’s very important that we get the most for our borough taxpayers on this.”

But Assemblyman Noel Woods said he’s spent some time in the admin building and knows it’s not worth a lot. That’s why it was abandoned in the first place.

“The renovation of the property to bring it up to code was more expensive than the value of the property with the building on it,” he said. “Whatever we get for it will be more than it’s worth.”

Assemblyman Mark Ewing sided with Woods, calling the two buildings a pair of Albatrosses around the borough’s neck.

“Finding a buyer for a morgue is priceless,” he said. “At this point you need to cut your losses. Just the asbestos abatement alone is going to cost the taxpayers a fortune.”

In the end, the assembly voted 5-1 to approve selling the buildings for less than fair market value.

HOW THEY VOTED

Should the borough accept less than the assessed value for two dilapidated Palmer buildings?

Ron Arvin: Yes

Cindy Bettine: No

Mark Ewing: Yes

Vern Halter: Yes

Warren Keogh: Yes

Noel Woods: Yes