Council ok’s land lease to NSEDC

The Nome Common Council was split on passing an ordinance in second reading that leases city property at the small boat harbor to Norton Sound Economic Development. It was not the lease itself that caused vigorous debate prior to the split vote, it was the process that seemed dubious and not transparent to some council members.
Before the council was the motion to ok the lease of 19,000 square feet of property at the small boat harbor north of the NSEDC fish and freezer plant. NSEDC already leases about 57,000 square feet from the city, on which land the Norton Sound Seafood Products fish and freezer plants sit. NSEDC would like to lease the rest of the tract to construct additional buildings to be used as warehouses, equipment shop, office space etc. according to the ordinance. The city allows for two additional buildings to be built. The city has negotiated with NSEDC to lease the remainder of the tract for an up-front, lump sum $1 million.
Wait a minute, said Council Member Scot Henderson. Is that the normal process? Why did it not go out for bid to dispose of the property? Port Director Joy Baker answered that the port has reached out to potentially interested parties but would not find any over the years. Council Member Kohren Green questioned why the RFP was not put in the paper or advertised in wider circles. Henderson also questioned the price of $2.78 per square foot per year and found it low. This seems to be prime property as the port expansion is underway, he said. Baker explained that the length of the lease would justify the seemingly low price. Also, it fits in with the city’s support for NSEDC’s development of the marine fishing industry.
As the council mulled the possibility to table the ordinance, Baker urged the council to move forward with the ordinance as the NSEDC payment for the tract was already meant to pay for another port project. Baker counted on the $1 million to pay towards the $16 million Snake River Moorage facility, which would deepen about seven acres of the Snake River near the port mouth, install 1,700 feet of floating docks and develop onshore infrastructure. Baker said, $13 million come from a RAISE grant from the Dept. of Transportation, $1 million from the Denali Commission, leaving a $3.3 million tab for the city to pay. The $1 million up-front payment from for the remainder of the tract lease from NSEDC would go toward the city’s obligation.
When it came to the vote, council members Kohren Green, Maggie Miller and Adam Lust voted no. Council members Scot Henderson, Mark Johnson and Adam Martinson voted yes. Mayor Ken Hughes cast the tie-breaking vote in favor and the motion passed to lease the tract to NSEDC.
Council member Mark Johnson suggested to change the process of ordinance passage. Currently, the council passes ordinances through first readings without discussion, leaving that to the second reading. Johnson said it would be more helpful to discuss in first reading so that issues can be identified and answers found before the council is asked to vote on an ordinance.
In other business, the council passed a resolution to designate September as Suicide Awareness and Prevention month, encouraging “all citizens and businesses to take this opportunity to reaffirm their commitment to community, family and life, and to reach out to those who may be struggling with thoughts of suicide.”
The council also passed resolutions to purchase a new Caterpillar wheel loader for a nearly $462,000 in seven annual installments, and a dump truck for $262,000 including interest on the lease agreement. Both pieces of equipment have been budgeted in the FY27 budget.
Nome Police Chief Mike Heintzelman stepped to the podium and commended civilian Matt Mitchell for stepping when NPD officer Stephanie Syrock fought two suspects simultaneously in an incident on Sept. 9. Heintzelman said Officer Syrock pursued one suspect when she was attacked by another and was fighting both when Mitchell stopped his fourwheeler on Front Street and rendered assistance to Officer Syrock.
Mayor Ken Hughes reported he attended an Alaska Defense Forum event. He said there was a lot of discussion on Alaska’s role in national defense. And that he was going to reach out to the association of defense communities, which may have  resources to educate Nome about “how to be a good civilian partner for the military.”