Following a familiar public relations tactic to try to bury bad news by releasing it right before a long holiday weekend, around 3 PM on July 3rd, the Department of Transportation issued a press release announcing its intent to solicit bids to demolish 2 houses and the Sourdough Lodge on Government Hill.
The project is now dependent on a hard-to-get $300 million federal loan that KABATA has been turned down for five times and whose reapplication by the state is still pending. (Click here to assess the Bridge’s national competition. Note how almost all projects except the Knik Arm Bridge have had their reviews complete or have been asked for more information.)
The two houses to be demolished are considered livable while the Sourdough Hotel was a functioning business until KABATA acquired the property. AKDOT has yet to acquire two other commercial properties and enter into a long term lease for land owned by the Alaska Railroad.
With no financing plan in place for the project, and at least a year before right-of-way would need to be in hand, it is not clear why the state believes it necessary to demolish the structures soon for a project with an uncertain future. The KTVA report quoted Government Hills Community Council President Stephanie Kesler who noted the irony of tearing down livable housing in a city with a housing shortage.
Devin Kelly’s article today in the Anchorage Daily News quoted KABATA and now DOT spokeswoman Shannon McCarthy saying it would be more expensive to secure or rent the property than to demolish them now. Those statements, even if accurate on an accounting basis, would have been irrelevant if KABATA had waited for the project to be financed before acquiring the properties.