Landowner requests city of Palmer's support

KATE GOLDEN/Frontiersman reporter

PALMER - At Tuesday's city council meeting, a local landowner lugged an elaborate scale model, complete with little trees, of a 34,000-square-foot professional building he'd like to construct - and persuade the city to move into.

Joseph Hawkins, the would-be developer, pitched the potential benefit to Palmer of his "class-A office space," and asked for support from the city.

The East Arctic Avenue site, just south of NAPA, abuts the end of the railroad where the live tracks end. The building would abut the proposed Palmer city park mentioned in the city Urban Revitalization Project.

Hawkins, a doctor at Bionic Chiropractic, said he originally bought the land a few years ago to build a new facility for his medical practice.

Hawkins presented a long list of Palmer's current and future needs his proposed Legacy Building could address - from environmental research, engineering and architecture firms to senior-citizen facilities and even a place for weddings.

But Hawkins' main bent at the meeting was to suggest that city, borough and state agencies might be interested in moving in.

"[Palmer would] perhaps be able to consolidate some of the other services that are beginning to be fractured off," he said.

Hawkins came armed with a March 15 functional analysis study deeming the main Mat-Su Borough administration building, the Dorothy Swanda Jones building in Palmer, wholly and direly inadequate for its current and future uses. The study recommended a 45-percent increase in square footage for the administration, among many other suggestions.

Hawkins also referred to a February 2004 request by the city of Wasilla to U.S. Sen. Ted Stevens: The city wanted $7.6 million for a building to achieve its "primary goal of consolidating State of Alaska agencies for the Mat-Su Borough Core area."

The request was denied, but the mayor confirmed Wednesday that she would still love to see it happen.

"The center of mass is moving to Wasilla," Hawkins warned.

Hawkins, banking on his building's positive impact on the community, presented a number of ways he and Palmer could work together.

The city could lease out a whole floor, he suggested. And it could negotiate an option to buy the building in the future.

As far as financial assistance, he asked if the city might defer or abate taxes until full occupancy was reached. And because interest rates are the primary barrier to construction, he's most interested in getting the city's help in procuring lower-interest bonds.

In the past, the city has attached its name and bond rating to "conduit" bonds for Southcentral Foundation and Valley Hospital.

Conduit bond agreements are usually written with no liability to the city, according to retired finance director Alan Ossakow. The city is limited to $10 million each year for such bonds.

Hawkins said that ideally, he'd ask for the city to bond approximately $4.5 million.

The question is whether this private project would qualify as serving the public need, and whether the city would have enough of the $10-million limit left over to sponsor its other projects.

Hawkins stressed he'll develop the land in any case, and he has other financing options, but he looked to the city because he thought it would be the best thing for Palmer.

Council members and city officials were variously receptive.

Jim Wood said it was an "interesting concept." He agreed that the city needs a larger space, but he initially balked at the kind of support Hawkins wants.

"Donating city funds to private enterprise - I'm not sure it's appropriate," Jim Wood said.

"I never say no," said council member Kathrine Vanover, examining the model. "It's worth discussing."

Council member Steve Carrington called it a "first-class commercial building," but said, "I don't know how involved the city can get because we're a public entity."

Palmer Fire Chief Dan Contini challenged the would-be developer with a barrage of questions: If Hawkins really thought ambulance services could be housed there, how were they going to get the 100-foot ladders up to the top? Would the fire truck be able to get through?

The questions kept coming. The council agreed on one thing, though.

"That's a killer model you got over there," Combs said.

Contact Kate Golden at kate.golden@frontiersman.com