Bethel would lease city lots to a fiber contractor without taking bids

Bethel would give one fiber-optic contractor a year's exclusive use of six undeveloped city lots without taking competitive bids, earning $201,600, under an ordinance the Bethel City Council will introduce Tuesday.

City Manager Lori Strickler proposed the measure, which would let her negotiate and sign a lease to Alaska Directional for up to 12 months. 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 total about 84,000 square feet. Rent would run 20 cents per square foot per month, or $16,800 a month. Alaska Directional wants the ground for temporary staging and storage of equipment tied to fiber-optic installation in Bethel and nearby communities. City staff surveyed lease rates and found comparable yard storage renting for 15 to 25 cents per square foot.

The ordinance gives no assessed or appraised value. The council would instead find that 20 cents is "an appropriate assessed rental rate" meeting that test. No appraisal, assessor record or staff memorandum accompanies it in the packet.

Strickler's latest report to the council says the administration is pursuing a one-year lease of the old Kilbuck site to a fiber installation contractor, expected to generate more than $200,000. It does not say whether that is this lease or another.

Tuesday's introduction is 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.