Skagway is moving ahead with a public vote later this summer to determine whether the nonprofit Southeast Alaska Regional Health Consortium will purchase its community-run medical clinic and property. But confusion remains about the process.

During their May 5 meeting, Skagway’s borough assembly voted 5-1 to bring a public referendum on whether or not to sell its municipally run clinic to SEARHC. The non-profit regional healthcare consortium operates about 20 clinics in towns and villages throughout Southeast Alaska.
The idea of selling the clinic was first introduced almost a year ago by the borough manager, whose office helps manage the Dahl Memorial Clinic, along with a nine-person volunteer board of directors and clinic staff.

Assemblymember Reba Hylton, a proponent of a deal with SEARHC, told KHNS that she voted for the special ballot because the decision to bring an outside healthcare facility to Skagway is too important for the assembly to make without community input.

“This is something that the residents of Skagway need to weigh in on and every voice should be heard,” said Hylton.

Assemblymember Jay Burnham cast the only no vote. He told KHNS that his vote wasn’t intended to deny the public a referendum, instead, it was a protest about how long the process has taken. He says the delay has caused problems for day-to-day operations like hiring new staff.

“It just it doesn’t give prospective employees a good feeling when you say, well, you might not be working for us in three months,” said Burnham.

He says the vote should have happened at the beginning of the process.

Meanwhile, some community members expressed frustration that the wording of the ordinance brought to the assembly was confusing.

Skagway Mayor Andrew Cremata says that’s because the author of the ordinance needed to follow municipal regulations.

“The language is a little bit difficult to interpret because we’re trying to satisfy the requirements of code. So code requires that the manager negotiate. So that has to be in the resolution. Code also requires that selling property requires that there be market valuation for the building and for the land,” said Cremata.

The market valuation of the land and building will be completed by an appraiser prior to the public vote. That dollar amount will be available to the community through public postings but will not be written on the ballot itself.

The ballot question will read like this:

“Shall the Municipality of Skagway sell the Dahl Memorial Clinic real property, improvements, personal property, and financial assets to SEARHC for an amount no less than market value established by a qualified commercial appraiser? and shall Ordinance No. 22-03 authorizing this negotiated sale be approved?” Followed by a yes or no choice. 

The vote will direct the borough manager on whether or not to begin final negotiations with SEARHC. Cremata says there’s more value to the deal than just the land and building.

“There’s also equipment and other various assets that may need to be included in the price. So what the voters are going to vote on is that appraisal price, and what the resolution states is that that will be the minimum amount. So then the manager will be able to go into negotiations with SEARHC for the additional equipment and assets,” said Cremata.

If the ballot measure is approved by Skagway voters, the manager will negotiate the final sale price, then bring that deal back in front of the assembly for final approval.

“If the assembly is not satisfied with that, or there’s you know, a large public outcry or whatever, then then they can deal with that issue when that comes before them,” said Cremata.

If the ballot measure fails, no further negotiations will be held with SEARHC. 

According to Skagway officials, the Dahl Memorial Clinic’s operating budget is expected to be nearly $4 million in 2022. The funding breaks down to about $2 million of federal grants, nearly $1 million from revenue generated by the clinic, and close to another $1 million in funding from municipal coffers.

Mayor Cremata expects the appraisal to be done this month and the special election to be held in July.