What's Happening?
The Municipality of Anchorage is moving forward with two distinct land swap deals aimed at increasing the city's housing supply. One agreement involves exchanging the 10-acre former Tozier Track in Midtown, which has been unused since its purchase in 2021,
for a 1.6-acre state-owned parking lot downtown known as Block 102. Both parcels are considered to be of roughly equal value, and the state supports this trade. The second initiative concerns a 53.8-acre parcel in southwest Anchorage, referred to as the Westpark property, primarily controlled by the Anchorage School District. This land was initially acquired for a new school, but due to declining student enrollment and reduced state financial support, the facility is no longer needed. Under this resolution, the Anchorage School District will transfer the land to the municipality, which will then sell it for residential development, with the proceeds directed back to the school district to address anticipated budget shortfalls. Mayor Suzanne LaFrance stated that the city's priority is to facilitate housing construction at all levels while maintaining strong neighborhoods.
Why It's Important?
These land deals are crucial for Anchorage as the city grapples with a significant housing shortage. This shortage impacts various aspects, including the tax base, workforce availability, homelessness rates, and outmigration. The expansion of military forces at Joint Base Elmendorf-Richardson in the coming years is expected to further exacerbate the housing crisis, making these proactive measures vital. Mayor LaFrance, who took office in 2024, has set a goal to add 10,000 homes within 10 years. The municipality, in collaboration with the Assembly, has been implementing various strategies, including tax incentives for multifamily housing, streamlining permitting processes, and opening up new land through parcel swaps and the sale of unused assets. The downtown parking lot is projected to accommodate over 100 units of basic multifamily housing, while the Westpark property sale will provide much-needed funds to the school district, which is facing ongoing contraction and programming cuts.
What's Next?
Following the approval of these measures by the Anchorage Assembly, the next steps involve the execution of the land swap and the sale of the Westpark property. For the Tozier Track exchange, the Alaska Housing Finance Corp. is expected to build homes, though final designs are still in the early stages. While the municipality initially sought to impose conditions for high-density housing with limited commercial development on the Tozier parcel, these conditions were removed after pushback from the developer, indicating that the ultimate development plan will be shaped by market forces. For the Westpark property, details regarding developer interest and the number of housing units to be built are yet to be determined. The cash proceeds from this sale will be directed to the Anchorage School District to help mitigate budget shortfalls. The municipality will continue its efforts to address the housing crisis through various development-spurring initiatives.
Beyond the Headlines
The municipality's approach to addressing the housing shortage through land swaps and the sale of unused assets highlights a broader trend in urban planning where public entities leverage their land holdings to stimulate development and achieve strategic community goals. The decision to sell the Anchorage School District's unused land for residential development, rather than holding onto it, reflects a pragmatic response to changing demographics and financial pressures within the education system. This move could set a precedent for other municipalities facing similar challenges, encouraging them to re-evaluate their asset portfolios for potential housing solutions. The pushback from developers regarding specific housing density requirements on the Tozier Track also underscores the ongoing tension between public planning objectives and private sector development interests, illustrating the complexities involved in guiding urban growth while ensuring economic viability for developers.
