Bethel weighs $201,600 lease of six city lots to a fiber contractor

Bethel could earn $201,600 over the next year by leasing six undeveloped downtown lots to a fiber-optic contractor, under an ordinance the Bethel City Council will introduce Tuesday.

City Manager Lori Strickler introduced the measure, which would let her negotiate and sign a lease of U.S. Survey 3230 A and B, Block 7, Lots 16 through 21, to Alaska Directional for up to 12 months without competitive bidding. Bethel code allows that approach when it furthers local trade or industry, as long as the price meets or exceeds the current assessed or appraised value, whichever is higher. The six lots, each roughly 100 feet by 140 feet, total about 84,000 square feet. Alaska Directional wants the ground for temporary staging and storage of equipment tied to fiber-optic installation in Bethel and nearby communities.

Rent would run 20 cents per square foot per month, or $16,800 a month. City staff reviewed commercial and industrial lease rates and found similar level-site yard storage renting for 15 to 25 cents per square foot.

The lease would require Alaska Directional to meet land use, permitting, insurance and environmental requirements, and to restore the property when the term ends. The city's interest in the site would revert if it stops being used to further local trade or industry.

Strickler's report covering Sept. 3 through Sept. 17 says the administration is also pursuing a separate one-year lease of the old Kilbuck site to a fiber installation contractor, expected to generate more than $200,000. The report does not say whether that is the same property.

Tuesday's action is introduction only. The item sits on the consent agenda, so it advances with approval of the agenda unless a council member pulls it for separate discussion. A public hearing is set for Oct. 13. Written comment is due 24 hours before that hearing.