Anchorage to transfer Nordstrom building to development authority

The Anchorage Assembly introduced a proposal Tuesday to transfer the vacant former Nordstrom building to the Anchorage Community Development Authority for redevelopment as a mixed-use project. The move marks a major step in the city's downtown revitalization efforts.

Mayor Suzanne LaFrance presented the plan at the Assembly's February 17 regular meeting. She framed the transfer as critical to reinvesting in Anchorage's urban core. The iconic building has sat empty since Nordstrom closed its doors.

"This transfer is an important step toward advancing a project to reimagine an iconic building and encouraging further economic development," LaFrance said. "It will allow ACDA to lead redevelopment efforts."

The administration envisions a project that would anchor the downtown district and support local businesses by increasing foot traffic near the Anchorage Museum and Fifth Avenue Mall. LaFrance tied the project to her administration's goal of building 10,000 homes in 10 years, a policy she has championed since taking office.

"The policy is in support of 10,000 homes in 10 years," she said.

Assembly Chair Christopher Constant said housing and commercial proposals are already being developed for the site. He directed that a public hearing on the transfer be scheduled for March 24, following a briefing to the Downtown Community Council on March 4.

"I'm pretty excited to hear about the housing proposals that are being put together, the commercial proposals that are being worked out right now," Constant said. "This is a foot forward into revitalization of the downtown."

The proposed redevelopment would include workforce housing, expanded trails, and increased activity in an area that has struggled since the department store's closure.

"Since taking office, I have been clear that revitalizing downtown is a top priority for my team," the mayor said.

The building sits on property zoned B-2A across four of five parcels. The transfer would enable ACDA, which has authority to lead complex development projects, to work with private partners on the redevelopment. Melinda Gant, ACDA's External and Community Affairs Director, has been involved in planning discussions.

The transfer represents a shift from municipal ownership to development authority control. That structure is designed to facilitate public-private partnerships for projects that might not move forward under traditional city ownership. ACDA operates with more flexibility than typical municipal departments, allowing it to negotiate complex financing and development agreements.

The Assembly took no action Tuesday beyond introducing the ordinance. The March 4 community council briefing will give downtown residents and business owners an opportunity to learn details and ask questions before the formal public hearing three weeks later.