Wasilla to buy bank building for new police headquarters

WASILLA - After two public hearings and minimal opposition, the Wasilla City Council agreed Monday to go ahead with plans to spend $1.3 million on a building which previously housed the Alaska Mutual Bank, and renovate it for use as a police building.

As part of Mondays action by the council, the building, located at 1800 E. Parks Hwy., will be purchased from Floyd Pedersen, owner of Creekside Plaza Inc.

The $1.3 million will be taken from the citys general fund balance, and will be repaid by the police department over a period of 10 years, with $130,000 per year taken out of the departments operating budget.

At the second public hearing, Jeff Moreland, an area developer spoke in opposition of the plan. He said he had researched the plan and thought the layout of the building simply didnt fit the needs of a police department as he saw them.

The building is designed for a bank, he said. Its not designed for a police department.

Moreland proposed an offer to the council, wherein he would sell a 114,000-square-foot lot he currently owns, located at East Susitna Avenue and South McKinley Street, near the Mat-Su Legislative Information office, and provide materials and labor to construct a 7,500-square-foot building, with a 6,000-square-foot secured courtyard for the police department. He said the land could then be leased, with a purchase option, for $10,000 per month. The total purchase price would be $967,000.

Moreland offered to increase the building size to 10,000 square feet for an additional $225,000, which would bring the total cost to just under $1.2 million.

Steve Gallagher, a real estate agent in Wasilla, also spoke against the plan, suggesting it would prevent another bank from moving into the city. He also said the move shortchanged businesses looking to move into the city.

The city, he said, was effectively purchasing prime development property at a very low cost.

Councilman Noel Lowe asked Gallagher a few questions about why he was opposed, and Gallagher revealed he owned a portion of the lot Moreland had offered to the city.

Chief Fannon responded to some of the issues raised by Moreland and Gallagher.

He said the location Moreland proposed was not readily accessible to the public and, since it was not in a prominent place, would not serve as a potential deterrent for speeding and other crimes. The bank building, he said, was in a very prominent place, and was also close to where the departments calls come from.

Its sort of in the center of where we do business, he said.

Overall, Fannon said he would rather have a new building that could be built to meet all their needs, but did not feel that was an option the area taxpayers were willing to accept.

I dont think its the absolute best choice, he said, I think the absolute best choice is to build a new building, but … in terms of the public demands … and the cost to taxpayers, it is the best choice.

The cost of the bank building includes renovations which will make it suitable for the needs of a police department. According to Fannon and city planner Tim Krug, the building is structurally and electrically sound, and the renovations needed are relatively minor.

Pedersen said he will be responsible for handling the renovations before turning the building over to the department. The department should be able to move into the building in a matter of a few months.

The ideal is for them to move in this summer, Wasilla Mayor Sarah Palin said.

The Wasilla Police Department has been working toward obtaining a new location for more than three years, according to Wasilla Police Chief Charles Fannon.

Its current city hall location has grown increasingly cramped as the department has expanded to meet the growing needs of the community. The department currently employs 15 officers and has a working staff of 12 volunteer reserve officers.

Three years ago, when Chief Fannon first came on board, there were 11 officers and only three reserve officers.

Pedersen said he has had offers for the building in the past, but the proposed uses were not acceptable to him. He said he would rather not see the building divided up into offices and leased separately, and was pleased that the building could be used by the police department.

I think it will make a good sense for them and Im happy to be the seller of this building, Pedersen said last month.

Fannon said he and Krug will design the renovations and submit them to city administration for review. Pedersen, who is currently in the Lower 48, will go over the plans upon his return. At that time, the city will be better able to estimate when the department can begin the moving process.

Photo: The former Alaska Mutual Bank building, located across the Parks Highway from Cottonwood Creek Mall, will be the new home of the Wasilla Police Department.

Photo by RINDI WHITE/Frontiersman.