Anchorage Community and Economic Development Committee Meeting - August 8, 2025

The Community and Economic Development Committee (CEDC) of the Anchorage Assembly met on August 8, 2025, at 9 a.m. at the Permanent Center. Chair George Martinez presided, with members Scott Myers, Brawley, and Constant present. The meeting featured departmental reports, a presentation on a property tax incentive ordinance for vacant and abandoned homes, and discussions on aligning local marijuana regulations with state law.

Department Reports

Building Services (Rick Sulet):

• Permit valuation year-to-date is nearly $450 million, a 30% increase over the $349 million at the same point last year.
• The department is changing its feedback survey methodology by adding QR codes to placards and permit counters to boost public response.
• A request for an additional permit checker is included in the 2026 budget to address turnover.

Development Services (Daniel King):

• A policy is being developed to allow stick-built and modular construction in mobile home parks (now called “relocatable dwelling unit communities”) to align with zoning updates. These structures must remain on non-permanent foundations to maintain mobility.
• Pre-approved plans for ADUs are in progress, with two designers providing preliminary concepts. The plans will be usable for tiny homes as well.

Code Abatement (Scott Campbell):

• Continued increase in vacant and abandoned buildings (VNAs), with two new responses yesterday.
• Several large apartment complexes have significant fire-rated assembly damage (e.g., ceiling tiles, drywall), requiring dual enforcement with the fire marshal.
• Thanked the assembly for supporting new code language to provide additional enforcement tools.

Public Works (Kent Goldways):

• The administration continues working with DOT on full management authority for Fifth and Sixth Avenues, and I and L Streets. DOT and Federal Highways are interested in meeting.
• Street sweeping is in its second round. Key projects include: design of the new Golden Wine facility, early design of the downtown library, installation of an underground storage tank at transit, and paving of Eagle Little Lake, Zodiac Manor, Boundary Drive, and Stanchridge.
• PME projects: Northwood Snowdome second phase (to be awarded), Dowling Street between Elmore and Lake Otis resurfacing, 42nd Avenue, and Ford Park resurfacing from Northern Lights to Hill Prince with bike facilities.
• Traffic engineering is focused on striping.

Real Estate (Tiffany Briggs):

• The Archives RFP due date extended to September 30; additional question period ends today.
• Management authority for the ASD Muldoon school sites has been officially transferred back to the municipality.

ACDA (Chad Stovall):

• Housing accelerator program: working with Ada and Last Grove Capital on a fund for construction financing with subsidized interest rates.
• Working with Mr. Soule’s staff on the Anchorage Neighborhood Redevelopment Initiative; board authorized acquisition of several properties.
• Planning a cooperative housing webinar with the National Cooperative Foundation and UAA.
• Micro-units RFP closed; final negotiations underway, announcement expected next week. Still targeting October groundbreaking.
• Third and Ingraham RV resort RFP in drafting, to be released in a few weeks.
• Chugach Electric has approached about placing renewable energy assets on ACDA properties.
• Expanding development team by adding a third person.

Planning (staff):

• A rezone petition for the Alaska Railroad parcel under the A Ski Bridge will come to the assembly on August 26.
• Two new director’s guidance memos: one on non-conformities for residential construction (allowing delayed correction of non-health/safety issues), and one correcting an error that limited ADUs to specific residential uses – now all residential uses are eligible.
• Upcoming ordinances: Mobile/relocatable dwelling units (August/September), non-conformities AO, transport development overlay (TISDO) continues with a working group, fee update next week, large-scale parks rezone, and elimination of legacy zones (pre-2014 Title 21).
• Temporary uses and ADU omnibus are further out.

Presentation: AO 2025-84 – Property Tax Incentives for Vacant and Abandoned Homes

Nolan Cloud (Mayor’s Office) presented the ordinance, which would:

• Create a new chapter (12.80) offering a 10-year property tax exemption on buildings (not land) for rehabilitating residential VNA properties built before 1995 with no major renovation in 15 years.
• Applicant must spend at least 15% of the assessed value of the structure (or $3,000 per unit for multifamily) on rehabilitation.
• Certificate of occupancy required within five years of provisional approval.
• Assessor would approve; annual reports to the assembly.
• Also amends the multifamily incentive (12.60) to remove a costly fee waiver provision and a 45-day permit shot clock, and changes the affordability bonus from AMI-based to fair market rent-based.

Discussion: Members asked about the tax base impact (minimal unless uptake is massive), potential abuse (e.g., snowbirds claiming vacancy), and prohibition on short-term rentals. Member Brawley outlined four potential amendments: (1) clarifying that a partially demolished structure still qualifies; (2) allowing additional units (e.g., duplex on R1) to qualify; (3) considering properties removed from the registry within 12 months; (4) clarifying that the exemption applies only to the structure.

Discussion: Relocation of Marijuana Licenses

Attorney Jana Welting requested a code update to match state law allowing transfer of a marijuana license to a new location. State law changed to allow licensees to move rather than be tied to a landlord. Local approval, community council notice, and SLUP modification would still be required. Benefits include avoiding relabeling inventory, retaining tax payment history (exemption from retail bond), and lower costs compared to a new license. Discussion clarified that the proposal does not involve caps or a secondary market. No vote was taken.

Discussion: Draft AO on On-Site Marijuana Consumption

Assembly counsel Mr. Gates presented a draft ordinance that aligns local code with state regulations on on-site consumption, incorporating state law by reference with modifications. The ordinance would allow two types of endorsements: edibles-only and any method (including smoking), with specific requirements for ventilation, freestanding structures, and outdoor consumption compatibility. The ordinance interacts with the indoor smoking ban by creating an exception for licensed consumption areas. The draft is expected to be on the August 12 assembly addendum.

Key Outcomes

• No formal votes were taken. The committee received reports and presentations.
• AO 2025-84 (property tax incentives) is scheduled for public hearing and action at the next assembly meeting on August 12.
• The draft ordinance on on-site marijuana consumption is expected to be added to the August 12 assembly agenda.
• The relocation of marijuana licenses will likely be drafted into a future ordinance.
• The committee noted the need to follow up on code enforcement issues related to beekeeping, as flagged by a resident from Airport Heights.