Much of rural Alaska shares the same two problems: old buildings and the need for new housing.  Wrangell looks to solve both problems at once.  The borough is one step closer to selling its old, former hospital, the Wrangell Medical Center. The prospective buyer, Wayne Johnson, plans to demolish the building to construct housing units on the property and six lots next to it. 

 

Wayne Johnson has a history of developing housing units in Georgia and he’s interested in expanding his development projects to Wrangell. He’s made frequent trips to Alaska throughout the years, first visiting Wrangell last fall. While at Wrangell’s Friends of the National Rifle Association auction, he met Interim Borough Manager Mason Villarma.

 “I met him and got to talking with him about his profession, and just career seemed like an interesting guy,” Villarma said. “So we started chatting and served as Undersecretary of education during the Bush administration.”

 Villarma says he was interested in Johnson’s past experiences and was impressed with his portfolio.

“Then we talked about some real estate deals,” Villarma said. “And so he had had experience in renovating, like projects and has done other developments.”

 In that conversation, Villarma mentioned Wrangell’s old hospital that’s been on the market since 2022.

 That conversation sparked an interest and Villarma says he and Johnson talked every day until they reached a deal.

Johnson says Wrangell quickly grew on him during his visit. He and his wife leased a cabin in Wrangell this winter and plan to be here off and on.

“Well, I’m interested in wrangle,” Johnson said. “And this gives me a meaningful reason to be engaged on a on a continuous basis with Wrangell.”

When he heard about the available property, he thought it could benefit the Wrangell community.

“My vision at this moment is to explore how we can create a meaningful level of multi generational housing,” Johnson said.

 Villarma says the community could experience a broad range of benefits if Johnson makes the purchase and turns it into housing. He says residents would be close to downtown and its businesses.

“We know that housing is a huge issue in this community,” Villarma said. “I think we’re still ahead of the game and across the region when you think about all the topsail and the potential for this, but it will certainly help with accommodating that need

 Villarma says the City and Borough has been spending 85 to 100,000 dollars a year to keep the building maintained enough so it can be sold.

“That’s a pretty big bill for nothing, and sort of bleeding in that way stranded asset, said Villarma. “And then if we didn’t sell it, it probably cost us about a couple million for of course, the private sector can demolish it cheaper, because they don’t have to pay out prevailing wage, but we do. So $2 million. And that’s something we just can’t afford.”

 Johnson intends to purchase the building for 200,000 dollars, far below the appraised value of 830,000 dollars. But the six adjacent lots will be sold at the appraised value.

 Villarma says Johnson plans to construct two to three-story buildings for housing units with covered parking.

 So far, the borough’s economic development board and the planning and zoning commission recommended the Assembly approve the sale.

Kate Thomas is Wrangell’s Economic Development Director. She says the Economic Development Board reviewed the sale from the perspective of economic benefit for the community.

“In my opinion, as stated in the report, it is in the borough’s interest to sell the land and move forward with this project, or conveyance rather of the land from the borough to Mr. Johnson,” Thomas said.

 The final approval of the sale of the building and the adjacent six lots is tentatively planned for the April 9 Borough Assembly meeting.