We are asking the Assembly to vote NO on AO NO. 2022-103 (and any substitute versions), the disposal of HLB land to CY Investments.  

Girdwood wants and needs development, provided that it is done the right way!  Alaska deserves the opportunity to develop the Girdwood valley in a way that serves the community’s needs, adds much-needed workforce housing and commercial space, and uses a master plan approach that makes sure Girdwood remains a sustainable community with character.  

To that end, we also ask that the Assembly commission an update to the 2006 Crow Creek Neighborhood Plan, a Master Planning process which will drive collaboration between HLB, Girdwood, and developers to plan the best use of this extremely valuable land and ensure maximum value from its disposal.  The outcome of this planning effort will serve as the foundation for future developer bids.  

In light of recent events, we understand the Assembly is keenly aware of the need for financial and legal oversight.  To that end, before even considering a “yes” vote on Holtan Hills, we demand that assembly members are able to answer the following questions and that the answers are shared publicly: 

1. In the context of accusations against the current administration for failure to follow codes and for numerous legal violations of due process, non-transparency in real estate transactions, preferential treatment in real estate transactions, and sole source contracting to the financial detriment of Anchorage, how are you sure this deal between CY Investments and HLB is legal, financially sound, and in the best interest of Anchorage?  How are you sure you have the full picture of what is actually being planned/designed by HLB/CY Investments/Pomeroy Lodging?
2. The current appraisal values this land at $2.1M ($23k/acre), but rather than sell the land, HLB proposes to contribute it to a JV structure, invest approx. $8M of public money in infrastructure, and then hopefully make $2.1M in a few years after the lot has sold.  How does this make sense?  If the land is worth $2.1M as-is right now, why invest all this money and wait for years to realize this value?
3. Considering this is the largest disposal of public lands in the MOA in over 30 years, why is the process not starting with a Master Plan to design this valuable area, in collaboration with Girdwood, HLB/MOA, and interested developers?   
4. What is the estimate for the offsite improvements (road, utilities to the lot line) for Holtan Hills?  What budget or pool of funds will fund this project?  MOA/HLB is responsible for these costs (DA 5.4), so we must understand the estimated financial burden before disposing of the land. CY Investments has had a $112,000 sole source contract to plan these Offsite Investments since December 2021 - why is there still no estimate?
5. Why is CY Investments offered a sole source contract to manage this AWWU (sewer) and Public Works (roads) project for the offsite improvements?  Why is CY Investments also offered a sole source contract to manage the Holtan Hills HOA?  If you can't estimate the offsite improvements, how can you estimate the value of the sole source contract, based on percentage of cost, to project mange it?  How can you approve a sole source contract with no estimate?
6. What is the proposed amount of wetlands to be filled for the development?  What is the estimated cost to HLB/MOA for the fill credit purchases?  MOA/HLB is 100% responsible for these costs, so we must understand the estimated financial burden before disposing of the land, especially because Wetland mitigation is a cost of such potential significance that  it’s been known to shut down developments in similar areas.
7. Where in HLB statutes does it allow for joint ventures and/or profit sharing arrangements?  Title 25 specifies that HLB can sell, lease, or exchange land, but does not provide for HLB to enter into a Joint Venture with a developer, as is being done here. 
8. If someone does determine in code that HLB is allowed to enter into a Joint Venture partnership with a developer, how is now a good time to add this to their plate when HLB has been without a Director for so long and is so very short-staffed? How is such a poorly supported organization meant to provide oversight to a multi million dollar investment? How are you sure they have the required skill set to do this? And if they don’t, what assurance does the public have that this development will be done in a manner that stewards our public assets responsibly?
9. Why is the disposal ordinance for approximately 450 acres when the development agreement is for 60 acres?  What is the plan for the land beyond the Development Agreement with CY Investments?  Why doesn't the ordinance specify the precise location and amount of acreage to be disposed of?  
10. Why is there no transparency on the Development Agreement with Pomeroy that is referenced in the Development Agreement with CY Investments and enabled by this disposal?  Are there plans in place already for his Alyeska Village to be built on the balance of land disposed of by this ordinance?  How will the financials be handled outside the current Development Agreement with CY Investments?  Will CY Investments sell the land to Pomeroy?  Can CY Investments develop land in these HLB tracts disposed without further purchase/development agreements? 
11. How do you know that the municipal codes and standards have been upheld?  Girdwood has offered examples of where they haven’t been - how do you know independent legal review will concur with HLB that the code requirements have been adhered to?
12. When the need for oversight has been so illuminated, and the substantial legal/financial shortcomings of this deal laid out for you, what is your justification to support development that will cause irreparable harm to the town of Girdwood while unjustly enriching a developer?