Wasilla planning commission set to formalize denial of 59-unit affordable housing project

The Wasilla Planning Commission is scheduled to adopt the written denial of a conditional use permit when it meets Tuesday, July 14, to formally issue its decision on a 59-unit affordable housing development at 591 S. McKinley Street.

The commission voted 3-2 on June 9 to deny the permit sought by the Alaska Corporation for Affordable Housing. Commissioners Todd Stafford, Carolyn DeYoung, and K. Darlene Langill voted to deny. Chair David Seals and Commissioner Simon Brown II dissented. The written decision carries an effective date of July 14, the same night the commission meets to adopt it.

Once the decision takes effect, any party with standing has 15 days to file an appeal with the City Clerk for review by an administrative hearing officer.

Grounds for Denial

The written decision cites three code failures. The commission found the proposed residential use incompatible with the Commercial Zoning District under city code, determined the project would cause undue harm to neighborhood character, and ruled it conflicts with the Comprehensive Plan's commercial land-use goals for the area.

According to the application, all units would be rented to households earning 80 percent or less of area median income. Chelsea Smith, director of ACAH, argued at the June 9 hearing that city staff and the Public Works Department had recommended approval. She said market studies show roughly 40 percent of Wasilla households spend more than 35 percent of their income on housing. Smith also said Wasilla has a unique opportunity to provide housing close to the city center, unlike many other communities. ACAH is a 501(c)(3) subsidiary of the Alaska Housing Finance Corporation, created in 2011 to develop affordable housing for low- and moderate-income Alaskans. One member of the public, Ligia Luten of First National Bank Alaska, testified in support, saying the project would provide workforce housing and contribute positively to the local economy.

Opposition at the Hearing

Opponents filled the June 9 hearing. The Planning Department received approximately 15 written comments on the application. No objections came from the Department of Transportation and Public Facilities, the Matanuska-Susitna Borough Platting Division, or any other state or municipal agency. Neighbors, business owners, and two city council members testified against the permit, citing infrastructure capacity, traffic, and the site's commercial designation. The proposed development was estimated to generate roughly 240 additional vehicle trips per day. One adjacent property owner said he bought nearby land expecting the area to remain a long-term commercial district. One business owner said the project's intent was positive but that infrastructure considerations should come first.