The Anchorage Assembly listened to another long night of testimony on the controversial Holtan Hills land transfer in Girdwood, but postponed a vote on the matter to Jan. 10, 2023.
Dozens of people braved snowy roads for a second time to voice their opinions. Over the next several weeks, members will offer amendments to the ordinance, further addressing Girdwood’s community concerns around workforce and attainable housing.
The deal would transfer approximately 60 acres of municipal property held in the municipality’s Heritage Land Bank to a private developer, Connie Yoshimura of CY Investments LLC. Yoshimura plans to develop the property into lots supporting 40 mixed-density housing units and 39 single-family homes, to be sold at market rate pricing.
Girdwood has a worsening housing shortage. The high housing costs are especially burdensome to service industry workers living in the resort community. Locals have asked for a ban on using homes as vacation rentals, and fear new high-end units will only drive up housing costs overall. However, high-end housing is more lucrative for developers, and CY Investments was one of only two developers to bid on the project.
The proceeds from the development will be split evenly between CY Investments and the Heritage Land Bank. Costs associated with development of the property will be borne by CY investments, while offsite improvements, rezoning near a school and vacating easements will be covered by the municipality. The project is expected to net approximately $4.5 million in profits, in addition to increased property tax revenue.
During tonight’s testimony, John Warner, previous mayor for Breckenridge, Colo., discussed short-term rentals’ negative effect on housing prices. He argued that it is imperative that short-term rentals be restricted and towns develop a revenue stream to deal with housing needs.
Warner testified that Breckenridge uses several policy measures to ensure affordable housing remains in the resort town for its workforce, including a requirement that 80% of units in new construction are affordable.
The Assembly initially opened public testimony on the proposal at its Dec. 6 meeting. Many Girdwood residents came to testify over the course of the two meetings, and only one person testified in favor of the project. Most argued that the development would not lead to the creation of affordable housing, that public process was not followed, and that the short-term rental issue needs to be addressed before housing is built.
According to Assembly members, several hundred people have submitted written testimony in addition to those showing up in person. Written testimony is approximately 85% opposed to the project and 15% in support.
Not everyone is opposed to the project. A letter of support from the Anchorage Home Builders Association asserted that the development would include a mix of home styles in different price ranges, including duplexes, condos, fourplexes, townhouses, single-family homes and luxury family homes. The letter further argued that while Holtan Hills will not solve every housing need in Girdwood, it is a step in the right direction, and urged the Assembly to immediately approve the land transfer.
The Bronson administration has already made several amendments to the resolution in response to community concerns. These changes include restricting properties in the development from being used as short-term rentals of less than 30 days and setting aside a multi-family lot for a future transfer to a Girdwood Housing Authority, if the community chooses to form one to address workforce housing issues.
Other community concerns may be addressed if the project moves to the planning and permitting phase.
Girdwood has a somewhat inconsistent history when it comes to supporting local development. In 2021, the Girdwood Board of Supervisors passed a resolution in support of development on the Holtan Hills property, but requested it include affordable housing. This was before the municipality and CY Investments entered into a development agreement. The original contract did not address housing of any type. On June 13, the Board of Supervisors passed a resolution requesting amendments to address workforce housing needs.
In 2020, the Board of Supervisors opposed the Powder Run development, which would have built 12 units of housing, requesting that it be reduced to six units. The original investor in that project pulled out, and after some delay a second developer began constructing a nine-unit development, which is near completion.
If the Holtan Hills proposal is approved, the next step will be for the developer to obtain financing and a conditional use permit for the planned development, which is a public process requiring further input from the community. Ground will not be broken for the development until at least 2024.
