Whittier council to discuss buying railroad land in closed session Nov. 17

The Whittier City Council will meet behind closed doors Nov. 17 to discuss buying about 85 acres of Alaska Railroad land in town.

The railroad owns about half of Whittier's core, 109 of 212 acres, and that land is tax-exempt, according to the city's capital plan. The city wants to buy part of it by mid-2027 and has set some aside for housing.

An earlier railroad appraisal valued the land at about $4.5 million. The city hasn't released the price or terms of the deal, and a newer appraisal that was under way in October hasn't been made public.

The meeting agenda lists no public vote on the purchase.

The city's draft budget assumes the deal goes through and spreads the $4.5 million over about five years, starting with $1.4 million in 2028 from cruise terminal property taxes. Because of the purchase, the budget says, the city's uncommitted reserve isn't expected to reach its policy level of nine to 12 months of spending from 2027 through 2033. Finance Director Kristin Erchinger told the council Oct. 20 that the city might instead borrow and pay the railroad up front.

The council asked for the land in 2024. This year the Legislature unanimously passed a bill letting the railroad sell it to the city for fair market value, after a Senate committee advanced it without objection in May. It became law without the governor's signature and took effect July 3.

The closed session will also cover the city's enforcement actions against a property owner tied to a culvert lawsuit.