Valley Lanes building will be auctioned off

The Valley's only bowling alley will be auctioned at a foreclosure sale at 10 a.m. Thursday, April 25, at the Nesbitt Memorial Courthouse in downtown Anchorage. The sale is being conducted by the Alaska Industrial Development and Export Authority (AIDEA), an independent state agency charged with promoting growth through long-term commercial loans. AIDEA foreclosed on Valley Lanes' property last month.

AIDEA became involved in the property through a loan participation program with United Bank Alaska. AIDEA guarantees commercial loans for longer terms than banks typically will, according to ADIEA's deputy director of credit, Jim McMillan. United Bank Alaska failed during Alaska's economic downturn in the late 1980s.

"Since the failure of that bank, we've owned both sides of the [Valley Lanes] loan," McMillan said.

AIDEA will enter its own bid on the property at the foreclosure sale, called an "offset" bid. The offset bid is the minimum amount AIDEA expects to receive for the property. According to McMillan, AIDEA's offset bid for the Valley Lanes property will be approximately $1.5 million. The exact amount is still being calculated at the agency.

AIDEA was created by Alaska statute in 1967, and is governed by a board of directors appointed by the governor. Since 1995, AIDEA has paid or authorized to be paid dividends back to the state of Alaska. To date AIDEA has authorized dividends of approximately $129 million to the state.