Assembly postpones developer's land deadline amid mobile home park dispute

The Anchorage Assembly voted Tuesday night to postpone a decision on extending a developer's land deadline until May 12 after residents of a mobile home park testified they are losing $70,000 investments for $6,000 buyouts.

The 7-3 vote delays action on an ordinance that would extend the development period for Sean Debenham's Raspberry Townhomes project, a 58-unit development on former city land purchased at a discount. The postponement came after residents of South Park Estates, a mobile home park Debenham is closing, asked the Assembly to link the extension to fair relocation agreements.

Corey Hill, a South Park Estates resident, told the Assembly the park had 66 owner-occupied homes in 2020. Today, after partial demolition, fire, and evictions, only 35 homes remain occupied.

"We're calling on the assembly to table that extension until Mr. Debenham reaches a fair relocation agreement with the residents he is displacing from South Park Estates," Hill said.

Residents testified that each family has invested approximately $70,000 into their homes: $30,000 to purchase, $20,000 in materials, and $20,000 in labor. Debenham is offering $6,000 to residents who move out early, or $9,000 plus three months free rent for those who relocate their mobile homes.

Dana Santana, a 15-year resident, said the $6,000 offer amounts to two months' rent at one of Debenham's downtown properties. Anchorage Development Services has estimated the true cost of relocating a manufactured home at about $40,000.

Debenham told the Assembly the two projects are separate developments with different investors. He said he has spent $907,000 on site preparation, $400,000 on construction drawings, and obtained construction permits and financing commitments. He plans to break ground May 7.

The reversionary clause requires development within a set timeframe or the land reverts to city ownership. Municipal code includes such clauses to prevent developers from sitting on properties made available for development. The clause does not take effect until June 2027, but Debenham said he cannot secure investor funding or construction financing without the extension.

Cliff Whited, a Phase 1 resident, said Debenham committed during the South Park Estates rezoning process to working closely with residents and developing a relocation package that "works out for everybody." Phase 1 residents received 270 days notice, three months short of the one-year notice Debenham promised the city, Whited said.

Whited also detailed public investment in Debenham's Block 96 downtown project: $1.8 million from the Anchorage Community Development Authority, a land lease valued at $1.4 million below market rate over 20 years, an EPA Brownfield grant, and a 12-year property tax exemption estimated at $1.8 million. Residents estimate total public contribution at about $5 million.

Catherine Gerson, a single mother of four, said rent at South Park Estates climbed from $460 per month in 2021 to $710 in 2025, a 54 percent increase. Every increase came after the property was rezoned and park closure was confirmed, she said.

Assembly Member Christopher Constant said he could "feel the blowing of the trade winds in this room" and did not see a yes vote crossing the threshold with the item as drafted. He asked the chairs of the Housing and Homelessness Committee to hold a special meeting before May 12 to examine the connection between public subsidies and developer obligations to displaced tenants.

Assembly Member Meg Zaletel noted that mobile homes are the most permanently affordable housing available in Anchorage. She said the Assembly continues to approve rezones that will generate more displacement and must reckon with what happens to residents who have been paying $710 per month in lot rent and will not find that option elsewhere.

Assembly Member Randy Sulte said he did not like holding up a separate development over a landlord-tenant issue and would not vote to postpone. The motion to postpone passed 7-3.

The Housing and Homelessness Committee will schedule a special meeting before the May 12 Assembly meeting. The public hearing on the ordinance remains open.