Palmer set to decide Mat Maid land purchase

PALMER — Voters in Palmer will decide in Tuesday’s municipal election whether the city should spend $3.3 million to buy former Matanuska Maid property and other parcels on its block.

The general-obligation bonds, if approved, would be used to buy 8.74 acres bordered by Dahlia and Dogwood avenues, South Valley Way and South Denali Street.

Four members of the Palmer City Council voted unanimously July 13 to put the measure on the ballot. Those members were Brad Hanson, Ken Erbey, Richard Best and Kevin Brown.

The state of Alaska’s Agriculture Revolving Loan Fund owns 3.3 acres of the site; the remaining 5.4 acres contains old Mat Maid storage and powerhouse buildings, Crowley Petroleum Distribution, Alaskana Books and Mat-Valley Mini Storage.

The total assessed value of the seven parcels is approximately $1.9 million, according to Mat-Su Borough property records.

If the measure passes, Sara Jansen, Palmer’s deputy city manager, said the first thing the city will do is an environmental assessment of the properties. The city will then negotiate purchases with the property owners.

“We anticipate that will be a fairly lengthy process, 12 to 24 months,” Jansen said.

The city, in 2015, will pay off about $2 million in bonds issued for improvements at the Palmer golf course, Jansen said.

The fate of the land will be determined later. Possibilities now include a new building that could house both the city and Mat-Su Borough offices, a community and conference center, new police station or a park.

“The city doesn’t own a lot of property downtown,” Jansen said. “If the city has the control of that parcel, a lot more options will be open to the community.”