Work Session on Housing Subcommittee Recommendations – St. Patrick Subdivision – September 11, 2025
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Work Session on Housing Subcommittee Recommendations – St. Patrick Subdivision – September 11, 2025
This work session of the Valdez City Council was held on September 11, 2025, at 6:30 PM to discuss the Housing Subcommittee’s recommendation to purchase parcels in the St. Patrick Subdivision as a means to address the city’s housing goals. Councilmembers, the City Manager, and the Housing Subcommittee deliberated on costs, risks, and alternatives, focusing on potential Coast Guard housing and workforce housing. No formal vote was taken, but direction was provided for further work.
Discussion Items
- Subcommittee Recommendation: Councilmember Devons explained that the Housing Subcommittee recommended purchasing all available lots in St. Patrick Subdivision (approximately $2 million total) because it is shovel-ready, has existing infrastructure, and is the cheapest option to meet the city’s goal of 22 housing units per year by fall 2027. The subdivision was identified as the “low-hanging fruit” for immediate development.
- Coast Guard Housing Opportunity: Mayor Fleming and the City Manager noted that the U.S. Coast Guard has federal funds for housing but faces bureaucratic delays (8–10 years typical). The subdivision is attractive for 8–10 Coast Guard units, and the city could act as a middleman to expedite development. City Manager Duval emphasized that the Coast Guard could purchase lots directly but needs a facilitator due to process constraints.
- Workforce Housing Grant: City Manager Duval updated the council that the city was deemed ineligible for a $750,000 professional housing grant because Valdez is on the road system. This changed the perception of developing the remaining lots.
- Concerns Raised:
- Councilmember Foster questioned the city purchasing lots that were already subsidized with $1 million, and argued the real problem is construction costs, not land cost. He expressed reluctance to be a landowner or subsidize further without a developer commitment.
- Councilmember Green doubted the confidence in selling and developing remaining lots beyond Coast Guard units, noting development cost is the biggest barrier.
- Councilmember Valley supported the concept but wanted more clarity on the city’s role (e.g., leasing, loaning, partial stake) and risk exposure.
- Mayor Fleming echoed concerns about fairness to previous lot purchasers and the city’s ability to unload land quickly.
- Alternative Approaches: Several councilmembers suggested a phased or stepped approach focusing only on lots needed for Coast Guard housing, then seeking workforce housing partners. Councilmember Lally pointed out that doing nothing leaves Valdez without housing growth.
- Data and Stakeholder Engagement: The Housing Needs Assessment (due November 2025) will provide granular data on workforce demand. Director Huber noted interviews and questionnaires with local industry are underway. Councilmembers urged the subcommittee to engage stakeholders like the hospital, school district, and Coast Guard to define specific needs.
Key Outcomes
- Direction to Housing Subcommittee: Council directed the subcommittee to focus on two angles at St. Patrick Subdivision: (1) Coast Guard housing, and (2) workforce housing. The subcommittee should gather more information from the upcoming housing needs assessment, conduct outreach to potential workforce housing stakeholders, and return to council with a clearer plan and risk assessment.
- No Immediate Decision: The council made no motion or vote to purchase land. The work session was intended to gather input and set direction for further analysis.
- Next Steps: The subcommittee will continue exploring Coast Guard housing partnerships (including potential developer involvement), identify workforce housing stakeholders, and present updated recommendations after the housing needs assessment is released.
Meeting Transcript
Thanks. All right. Well, let's get this work session started regarding the housing subcommittee's recommendations pertaining to the St. Patrick's subdivision. I'll uh kick it off to the city manager to tee off the discussion. Thank you, Mayor Pro Tem Love, uh Nate Valley City Manager. Just to set it up, uh, I've got a mic laptop here with any visuals if we want to take a look at any of that. Uh, but I will defer the bulk of the conversation to the housing subcommittee. Uh part of the reason we came to this was as we looked at the goal of city council to add more housing units by the fall of 2027. You know, we looked at what's the what options are available for a relatively short turnaround, uh, knowing what it takes to get design and construction going. Um and so the the thought was you build out a subdivision, which kind of evolved into well, there is a subdivision that's built out that's not necessarily got construction happening on it, and so is is that uh a more opportune location to start looking at some cost benefit analysis that kind of goes into that is also subject uh to the conversation. But uh the bulk of it was we have St. Patrick subdivision, there's a number of lots there uh in the packet. There's a map that kind of shows what's available, what's not available. I provide a spreadsheet identifying what was uh what's the list price for those, the list price in a very preliminary conversation with Mr. Bill Harris is not necessarily what he would sell it to us for if we were to purchase the entirety of it. Um I'll defer to the housing subcommittee. Um I don't know if the the mayor wants to take the the point from there, but uh I'll defer to you all and then I can provide any visuals or answer your questions and come up. Thanks, City Manager Duval. Um Mayor Fleming, did you want to kick things off or did you want to defer to somebody else in the room? No, I I'll go ahead and kick it off, and then hopefully uh my uh other council members there will uh kind of uh that are on the committee kind of pick up where I left off a little bit. So we were looking at uh Coast Guard housing uh to begin with. We had uh 10 units, uh eight units that are actually, you know, we got um and I do believe we could possibly get another two, maybe even a little bit more. The Coast Guard at this time is looking for turnkey ready to go projects. Uh that subdivision is turnkey and ready to go, and so we could easily purchase 10 lots from it there and then at the same time. The uh city is also looking for a grant for uh uh 750,000 for a work uh grant that would allow uh work uh work type housing built for like teachers, doctors, lawyers, you know, the the whole nine yards. Um there's a potential seven hundred and fifty thousand dollar uh grant, which would build out about three to four houses in that same area. So I mean uh we could look at it that way. Now there are some drawbacks that I do want to point out early, and um I wanted the council to think about it is one, there's already four units as you see that are uh purchased in that agreement. So if we purchase you know the whole entire uh St. Patrick uh track, I would think that it would be unfair to us then to, and I don't want to be in the landowning business. I think the city already has enough land that we've got. I what I want to do is these are shovel ready projects, we can easily get them on the books, but at the same time I'd like to get rid of the land as fast as we got it, you know, type thing. But that would mean us probably reducing the price of the lots on on the uh on the city side. If that happens, then I'm sure that the four individuals that have bought the lots for 95,000 could then want, you know, to be we can compensated for them buying it at a higher rate in the city coming in and buying it at a lower rate and then turning them around. So it's just something to think about. I don't even know legally what our obligation is or if there is any legal opinion on that. But uh I'll kind of leave it at that. I really think that this uh uh subdivision could be used for the Coast Guard housing and our workshop housing that we were talking about that the city has put in a 750,000 dollar grant for. Um and so I'll kind of let the rest of the council members on the committee talk about it. Councilmember Devons. Uh so uh basically what precipitated the discussion on this specific development is I guess multiple parts. The first part is we made the same observation that everybody made that right now these lots are not selling at market rate. It's because of uh development cost escalation has made it difficult for individuals and developers to find an economical path to develop these lots out. Um and the second one, the the second motivating factor was our housing goals. We agreed as a council earlier this year that we would like to keep pace with the housing needs assessment, which would indicate that we would build 22 units of housing every year. Technically, we are on track to do that with the low-income housing that's being developed near the elementary school. Um, but to meet that goal during next year, the the only realistic way to meet that goal from our perspective is to do it in somewhere that that the infrastructure, the sewer water and roads and snow lot and layout, plating and design have already been completed, and this is really the only space within the main town uh district that that's possible. Um and then obviously the final consideration was exactly what Dennis was talking about the workforce housing grant and the Coast Guard uh expansion in Alaska. Uh they're looking at expending some of their funds for growing their presence in our state.
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