LUTHERAN QUILTERS – Members of the Quilts for Comfort Group stand between pews draped with some of the 205 quilts they made, in the Sitka Lutheran Church Tuesday. The group made the quilts for five local non-profits and one in Anchorage. The remaining quilts are sent to Lutheran World Relief which  distributes them to places around the world in need, such as Ukraine, as part of Personal Care Kits. Pictured are, from left, Helen Cunningham, Kathleen Brandt,Vicki Swanson, Paulla Hardy, Kim Hunter, Linda Swanson and Sue Fleming.  (Sentinel Photo by James Poulson)

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Daily Sitka Sentinel

Bidder Wins Land Trust Parcel for $315,000

By SHANNON HAUGLAND

Sentinel Staff Writer

The Alaska Mental Health Trust Authority land office has sold the 3.42-acre parcel next to O’Connell Bridge to Richard Riggs of Sitka for $315,000, the Trust land office announced Wednesday.

Trust land office executive director Jusdi Warner signed a “best interest decision as modified” on the land sale on Tuesday. The trust land office posted a public notice on its website Wednesday, and sent out copies of the decision to those who commented on Warner’s May 15 decision to make a non-competitive negotiated sale of the land to Catherine Schirber of Bozeman, Montana, for $156,000.

 A 3.42 acre parcel sold by the Alaska Mental Health Land Trust at the base of the O’Connell Bridge on Japonski Island is pictured today. (Sentinel Photo)

Riggs offered $160,000 for the land, and submitted the $15,600 deposit required to be considered as an alternate buyer. In its Wednesday announcement the land office said an outcy auction was held June 27, with Schirber and Riggs the only bidders, and Riggs won with a bid of $315,000.

The announcement of the sale was accompanied by the land office’s rebuttals to the objections raised by the public in the 30-day comment period on the negotiated sale to Schirber. The comment period closed on June 15.

“As one comment was received suggesting that the Best Interest Decision dated May 5, 2022, should be substantively modified to better serve the interest of the Trust and its beneficiaries, the Executive Director determined that the qualified competing offer of $160,000.00 should be accepted and an outcry auction between the two parties was held June 27, 2022, to determine final sale price,” Warner said.

Warner said in the modified “best interest decision” that 11 written comments were received from the general public. One agency response was received from the Department of Transportation and Public Facilities saying that the conveyance should reserve valid rights “which is a standard term in quitclaim deeds issued by the trust land office.”

“When making a final decision, the Executive Director shall consider only the best interest of the Alaska Mental Health Trust and its beneficiaries,” Warner said Tuesday. “Few comments addressed the best interest of the beneficiaries or consistency with Trust management principles.”

The parcel is divided by the state highway. It is zoned Waterfront and crosses the state right of way and includes part of the road to the work float and part of the parking lot. Although the parcel is more than 3 acres,  a TLO official estimated the developable portion is smaller. “About 29,000 is outside the highway right of way, to mean high tide, and the rest of it is so small it’s functionally not developable,” LTO deputy director Jeff Green said in an earlier interview.

The three-page modified decision includes a summary of comments from the public, all of which raised objections or concerns about the sale. Among the issues raised were the low appraised value and sale price, access to the city work float, questions about why the original sale was not competitive, suggestions about developing the area as a public green space, complaints that the sale “was not a public process,” concern about a plaque placed by a veteran’s family on the site, and a request for a perpetual access easement to a lot purchased from the TLO in 2003.

The only modification to the original decision was to accept Riggs’ offer and to give the original applicant the chance to meet or exceed that offer in an outcry auction.

Under Final Decision by the executive director, it says:

“Considering all of the above, the Executive Director of the Trust Land Office hereby adopts the Best Interest Decision dated May 5, 2022, as modified above, as final.”

But the statement also says those who submitted comments on the original decision may request reconsideration of the final best interest decision “within 20 calendar days after publication of the notice or receipt of the final decision, whichever is earlier.”

It says: “This request must be accompanied by the fee established by the Executive Director under 11 AAC gg.l30, which his been set at $500, to be eligible for reconsideration. Before filing an appeal to the Superior Court under AS 44.62.560, a person must be eligible to request and must actually request reconsideration within the time specified above.”

City Administrator John Leach submitted extensive comments on behalf of the city and said he does not plan to submit any further comments. He said he hopes to work with the new owner on road access to the workfloat and parking lot.

“Although the rollout of how they disposed of the property was probably not ideal, as we expressed in our initial letter, I’m looking forward to working with the buyer in reaching an agreement on continued access to the city infrastructure, specifically the workfloat,” he said Wednesday. “Our objections were not over who the buyer was; it was over the process. We didn’t have any ability to change the process but we tried. I’m excited to work with the purchaser in coming up with a solution in wanting to maintain access to city infrastructure.”

Warner in her modified decision said the city has legal access to the work dock with an easement from the Bureau of Land Management but noted that there is a portion of the access road and parking lot outside ADOT right of way that is not authorized. “The City of Sitka should contact the new owner, who is purchasing the parcel ‘as is’ and ‘where is’ should the city of Sitka wish to now remedy the unauthorized use.”

Riggs was not available today but said in an earlier interview that the offer for the land was on behalf of himself and his wife and not the business he co-founded, Silver Bay Seafoods. He said the two had learned of the land from a friend a few years ago, and didn’t have any current plans for the property.

Revenues generated on trust land support the Mental Health Trust Authority’s work to improve the lives of trust beneficiaries, the trust land office said today.

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20 YEARS AGO

March 2004

Advertisement: Tea-Licious Tea House & Bakery 315 Lincoln Street Grand Opening! Freshly Baked Scones, Cakes & Pastries Innovative Salads, Soups & Sandwiches Harney & Sons Tea. Lunch * Afternoon Tea * Supper.

50 YEARS AGO

March 1974

Photo caption: National Republican Chairman George Bush takes a drink of water offered by Jan Craddick, Sitka delegate, during the Republican convention held here. Mrs. Craddick explained to Bush that the water was from Indian River, which means, according to local legend, that he will return.

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