Palmer council delays accepting $500,000 gift for library reconstruction

Palmer’s city council approved a special account for contributions to the reconstruction of the city’ damaged public library but has put on hold the first major gift for the library, $500,000 from the Mat-Su Health Foundation.

The council was to have approved an authorization for City Manager Kolby Zerkel to receive the contribution but council members Victoria Hudson and Carolina Graver asked for more details on terms and conditions of the health foundation grant.

They also asked for information on the original request for the grant made by the city last January. Palmer Mayor Steve Carrington said the matter will likely be brought up at the council’s next regular meeting.

Meanwhile, the $500,000 has been approved by the health foundation, according to Erin Messmer, spokesperson for the foundation.

A major community fund-raising effort is being organized by Friend o the Palmer Public Library, a nonprofit, for the rebuilding, is budgeted at $15 million for its reconstruction. The city will deposit funds and track the contributions.

So far about $10 million is committed to the project with $5 million in a state appropriation secured by Palmer state Rep. DeLena Johnson and just under $5 million expected in an insurance settlement for the damage to the building, caused by a roof collapse due to heavy snow load.

That means there is still approximately $5 million to fund. The Mat-Su Health Foundation contribution would make that $4.5 million if the city council accepts the gift.

The city also has approval by voters to sell up to $10 million in bonds for the reconstruction but it is hoped that with community fundraising the amount of funds needed to be borrowed through bonds can be reduced.

Meanwhile, Palmer airport director John Diumenti briefed the council on developments affecting the city airport. A new long-range master plan for airport development will be getting underway with the airport advisory committee taking the lead.

The city council will approve the plan when it is complete, Diumenti said.

One long-range issue that will have to be dealt with is the status of lands now used for Palmer’s golf course that are owned by the airport. Because the land was purchased with federal aviation funds there are long-term covenants affecting its use, Diumenti said.

One of these is that the property must be used to support airport activities. This is not enforced as long as there is no airport-related demand for more land for hangers or aircraft tiedowns, so the land can be used, at least temporarily until there is aviation-related demand, for other purposes such as a golf course.

So far the city has been able to point to unleased tracts actually on the airport to demonstrate lack of demand, Diumenti said, but use of the airport is increasing and now there are only three unleased tracts left at the airport covering about 12 to 13 acres.

At the rate aviation is growing at the airport these tracts me be leased in three to five years. What happens next is unknown, Diumenti said. The Federal Aviation Agency does periodic use inspections of airport land purchased with federal funds and if the agency were to find, in the future, that there is aviation demand and property is being used for non-aviation purposes the city could face penalties, Diumenti said.

The council does not need to take action on the matter but it will be an issue discussed in the new airport master plan, he said.

The golf course covers about 140 acres to 160 acres.

The golf course is adjacent to the airport.