Bethel council holds hearing Tuesday on leasing six city lots to Alaska Directional

The Bethel City Council holds a public hearing Tuesday, Oct. 13, on an ordinance that would lease six city-owned lots to Alaska Directional, a Palmer contractor, without taking competitive bids.

The lots total about 84,000 square feet. At 20 cents per square foot a month, rent would be $16,800 a month, or $201,600 for a year. Alaska Directional wants the land for temporary staging and storage of equipment and materials tied to fiber-optic installation in Bethel and surrounding communities, according to the ordinance. City Manager Lori Strickler introduced it Sept. 22, as Alaska News previously reported.

Bethel code lets the council lease city land without bids to further local trade or industry, as long as the price is not less than the current assessed or appraised value, whichever is higher. The ordinance does not list either value. Instead, the council would find that 20 cents is "an appropriate assessed rental rate" that meets the test. City staff found similar yard storage leasing for 15 to 25 cents per square foot.

The lease could run no more than 12 months without separate approval. Alaska Directional would have to restore the property at the end, and the city could end the lease if the land stopped being used for the purpose that justified it. The ordinance would take effect immediately if passed.

Earlier in the same meeting, the council is scheduled to certify the Oct. 6 city election and swear in newly elected members.