Palmer orders study of possible civic center

PALMER — Two new developments have made the proposed Palmer Community Center look more like a reality than just a city manager’s dream.

As outlined in its plan concept, the city is considering building a space to accommodate conferences and conventions, an agricultural museum and art gallery, and community and non-profit events.

The first issue with any project of this size is to complete a feasibility study.

Feasibility studies for community centers do not necessarily focus on income versus outlays, said Sara Jansen, special assistant to the city manager. Community centers typically do not pay for themselves, she said. Instead, they are focused on bringing people to the town, people who will hopefully spend money and generate economic development.

“Palmer is a unique place,” Jansen said. “We want to get people not only to come to Palmer, but to make them realize what a great little community we have here.”

Feasibility studies for projects like this focus on whether people would come to the center and what uses it could sustain, Jansen said. They include what sizes and types of space would work and options for layouts and floor plans.

The city put out a request for proposal to consulting firms for the feasibility study, and Convention Sports and Leisure International, a Minneapolis firm, returned a bid.

“We were thrilled. They are a very reputable firm,” Jansen said. “They are currently under contact in Fairbanks and have done work in Homer and Soldotna.”

The bid came back at about $40,000, and the city asked the council for the funding to sign the contract.

This past week, the council voted four to three in favor of funding the study.

“Right now, it’s a really nebulous concept. It’s hard to say yes or no. The feasibility study will narrow it down,” Council Member Kevin Brown said, one of the four yea votes. “A few years ago, the city of Homer went to them and presented them with ideas similar to ours. The company came back and said no, it wouldn’t be feasible. I like a company that you know will be honest with you.”

Council Member Kathrine Vanover said she’s a big supporter of this project, and it will be nice to finally get some answers.

“Whether it’s feasible or not, we need to find out and move forward,” Vanover said.

Other than the funding for the feasibility study, site selection has been a hurdle for the community center.

The city has its sights on the property now occupied by the derelict Matanuska Maid Creamery. The property is owned by the state Board of Agriculture and Conservation, which valued its worth at about $12.50 per square foot based on an appraisal it got a year ago.

That number was much more than the city thought it was worth, and much more than it is willing to pay.

The city went to the Ag Board and asked for a second appraisal. The board consented, provided the city pay for the appraisal and use a state certified appraiser.

The city’s appraisal came back at $7.75 per square foot, or just shy of $1 million for the whole property, Jansen said.

“That was just on the property itself. The buildings do not have much life left in them. Some have a negative-value effect because you have to demolish them,” Jansen said.

The Ag Board has received the city’s appraisal but has not had a chance to officially review it yet, said board chair Kristan Cole. The fact that it was lower was no surprise, she said, as the market has changed so much in the past year.

“Irrespective of their appraisal, our asset manager made a recommendation to lower the price,” Cole said.

Ag Board asset manager Ray Nix said the property is going back out for sealed bid at the end of the month. As one of the parameters, the board changed the minimum offer to $970,000.

While the city’s number now falls within the board’s price range, Cole said the board is required to do what is in the best interest of the state, the board and the revolving loan fund.

“Are we going to give the city preferential treatment just because they are the city?” Cole said. “No.”

When combined, the two developments — the funding for the feasibility study and a more reasonable price for the land — create one large step forward for the community center. However, the two are not inextricably linked, said Jansen.

“If we can’t get that property, we could find another space downtown. If the center is not feasible, we could find another use of the land,” Jansen said.

Contact Todd L. Disher at todd.disher@frontiersman.com or 352-2252.