Meta Rose Square - several offers pending

Wasilla Mayor Bert Cottle recently announced that the amount of new construction and building permits just within the city itself continues defying the economic downturn affecting most of Alaska’s economy. But for those not wanting to necessarily build new, Wasilla has options there also.

For the last several years, Meta Rose Square and the one acre lot it sits on, has been on the market. The approximate 17,000 square-foot, two-story building-with basement complex is on the market for $1.5 million. The structure was built in 1983 by private developers Harold and June Dearmoun and used for retail purposes since its inception.

The city purchased the property in December of 2009 for the current asking price with the idea of turning into a new public library. At the time, the assessed value was closer to $2 million, according to reports. Part of the purchase agreement, and reason for the discounted price, stipulated any future library incorporate the Meta Rose and prominently display it on the building. Meta and Rose are the Dearmoun’s mothers’ first names. An additional caveat in the original ordinance stipulates that any net profits from the sale be set aside to fund a public library.

Although that dollar figure has declined slightly, it is still a revenue producer for the city which has had steady occupancy numbers since its purchase. The facility is currently just under 80 percent leased, Cottle said. The mayor added seven businesses currently utilize nine spaces in the complex. There are still one small and two larger spaces available for businesses to move in.

Financially, that breaks down to approximately $200,000 in annual lease revenues at today’s market. Cottle said current figures have the amount pegged closer to $150,000. Leasing revenues go into city coffers but not everything is profit. More than two-thirds of the current generated revenues cover annual operational costs.

In 2013, voters approved a one-percent sales tax to fund the new 23,500 square-foot public library which opened earlier this fall. That same year, the city’s planning commission recommended selling the property and getting out of the property management business.

Cottle said the city has received several offers for the complex over the past year. He said all were brought to the city council’s attention in closed session. Under Freedom of Information Act (FOIA) guidelines, a government body may go into closed session to discuss purchasing or selling real estate. However, any action taken must be done in open session. To date, the Wasilla council members have not acted on the offers.