Palmer on a growth spurt, city council is told

Palmer is seeing brisk growth in housing and commercial development. It’s a sharp contrast from two years ago, when the pandemic brought construction to a near-halt.

New residential and commercial construction stood at $6.5 million as of the middle of the year, city manager John Moosey told Palmer’s council at its July 26 meeting.

That compares with $7.6 million in new construction in all of 2021 and $3.8 million for all of 2020, the year of the pandemic, Moosey said. Given the trend, it’s likely that the pace of new home and business property building will be double in 2022 compared with last year.

The numbers may increase again in 2022. “We have 134 house lots with home building under way, and that’s among three developers,” Moosey said in an interview.

Continued economic recovery in the state and pent-up demand for housing is helping drive the growth, although rising interest rates and inflation in costs for building materials may also slow things.

In other business at the council meeting, John Murphy and Penny Mosher were confirmed for appointment to the city’s Planning and Zoning Commission. Murphy is a project manager with Alaska Pump and Supply and Mosher is a budget analyst with the Alaska Army National Guard, according to materials given council members.

In its consent agenda, the council also approved a zoning change for property in downtown Palmer owned by Dale and Catherine Fosselman. The change is from a “C-l” zoning designation for limited commercial to a “C-G” designation allowing general commercial development.

‘We have owned this 1.60-acre lot in the heart of Palmer for approximately 16 years. In recent years, the surrounding area of downtown Palmer has dramatically changed. The surrounding area now hosts many events, live entertainment, great restaurants and two breweries.

“The area hosts numerous local shops and professional offices. Almost all properties abutting this lot either provide public services, such as judicial and justice systems, or are professional offices spaces, mostly health and legal related.”

“The lot, while centrally located, has sat vacant, and for sale, for years. The lot is currently zoned “Commercial — Limited” which severely limits the commercial development potential. The rezone will allow for additional potential uses providing the basis for a vibrant, mixed-use development.”