Kodiak City Council to weigh $200,000 sale of Selief Lane lot for shops and apartments

The Kodiak City Council will consider an ordinance Thursday, Nov. 12, to sell a vacant city lot at 2478 Selief Lane to Kodiak Jacks, LLC for $200,000. Thursday's vote is a first reading. If it passes, the measure moves to a second reading and public hearing at a later meeting.

The company plans a two-story building with six shops downstairs and six apartments upstairs, according to its development plan. The plan calls for one entrance off Selief Lane and 50 parking spaces.

Under the purchase agreement, the lot goes back to the city if the buyer does not finish construction and get a certificate of occupancy within seven years of the deed. The building must have two stories, measure at least 100 by 50 feet and have commercial space on the ground floor with at least five apartments above.

Interim City Manager Tim Putney's comments in the council meeting packet say the sale brings the city $200,000 right away, and a finished building would add sales tax and property tax revenue. "Six residential units address a need that Kodiak has consistently identified as a constraint on hiring and economic growth," the comments said. They also say the lot sits next to the future Rural Cap housing development on Selief Lane and would fit the new neighborhood.

MacSwain Associates of Anchorage appraised the 29,767-square-foot lot at $200,000, based on an April inspection. The developer's plan lists the land's taxed value at $115,800 and puts the project's total cost at about $1.6 million. The plan says the lot is near more than 90 homes, with 25 or more expected in the next five to seven years from the housing project next door.

Kodiak Jacks applied to buy the lot in October 2025. The city published notice in the local newspaper, and no one else filed a complete application. The council ordered an appraisal in February and weighed whether to sell the land over the summer. On July 23 it told the city manager to proceed with a sale, and the city signed a purchase agreement with the company Aug. 7.

If approved, the ordinance would take effect one month after final passage and publication. A referendum petition filed within that month would hold it until the petition is resolved or voters approve the sale. The sale agreement ends if the ordinance is not in effect by Nov. 30, or a later date both sides accept.

Residents may comment for up to three minutes at the 6:30 pm meeting in the Kodiak Public Library Multi-Purpose Room.