City Manager Dennis Ragsdale and Director of Community and Economic Development Lisa Von Bargen met with Aleutian Village residents on Thursday, February 11th to announce that Aleut Corporation had signed the proposed Memo of Understanding (MOU) regarding Aleutian Village with some modifications and explain what happens next.
City of Valdez now needs to approve and sign the agreement as modified. This was originally to have been discussed in a work session immediately prior to the February 29th City Council Meeting but has since been postponed. Consultant and former interim City Manager Bob Jean was absent from Thursday night’s meeting but will attend the City Council work session, which has been rescheduled to Tuesday, March 15th at 6:00 pm, immediately before the City Council Meeting.
Ragsdale explained the provisions of the MOU as it now stands. The original had moved the deadline for tenants to vacate Aleutian Village from August 31st, 2016 to October 31st, 2016 if City of Valdez is unable to purchase the property from Department of Transportation or finds reason not to go forward with the plan to do so. That date has been changed to September 30th, 2016. As a condition of signature, City of Valdez has agreed not to pursue any possible claims against Aleut Corporation for non-fulfillment of the original contract signed when they took over the lease on the property.
The MOU that Aleut Corporation signed specifies that City of Valdez will notify Aleut Corporation by August 31st, 2016 whether or not they will be proceeding with taking over the property. If so, Aleut Corporation will continue to operate Aleutian Village Mobile Home Park during the transition period, through October 31st, 2018 at the latest. If not, tenants have until September 30, 2016 to vacate.
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The next step for City staff is to begin working on ‘Plan B’; what will be done if City of Valdez doesn’t purchase the property. Environmental testing and other site review tasks necessary before The City can decide if taking over the property is feasible can’t be done until after the snow is gone. Both Ragsdale and Von Bargen emphasized that the narrow window between the date the City’s decision is due to Aleut Corporation and the date tenants will be expected to vacate the property if there is no sale makes it important that an alternative plan be formulated as soon as possible, rather than waiting until after the site review is completed. It was also emphasized that no surprises are expected but that having the property inspected is a normal part of the process of making such a purchase, just as it is when buying a house.
The Mayor, two Council Members and City staff will meet with the Governor, legislators and staff in Juneau the week of February 22nd. A meeting with Alaska Department of Transportation and Public Facilities representatives to discuss the situation with Aleutian Village, including DOT’s willingness to sell the property, will take place at that time.
