Related Questions
The current land swap between the city and the Alaska Railroad focuses primarily on acquiring lands that are part of the Master Lease the Railroad holds with the City. The goal of this deal is to bring those lands under city ownership to give the community more control over how the land is managed and developed.
While lease rates may change in the future, this particular land swap is not focused on adjusting lease rates. Any changes to lease rates would go through the city’s standard processes, which include a review, public input, and careful consideration of the impact on the community. If lease rate adjustments become necessary, they will be handled separately from this land swap initiative.
Yes, ARRC (Alaska Railroad Corporation) leaseholders pay property taxes on their leasehold interest, as long as the lessee is a taxable entity. Occasionally, there may be confusion or misinformation, but it’s important to clarify that lessees are subject to property tax. This has been misunderstood at times, with some suggesting otherwise, but the correct information is that ARRC lessees do pay property taxes.
However, there is a distinction between leased land and land owned by the Railroad that is not leased to a taxable entity. Land owned by the Railroad that is not under lease to a taxable entity is not subject to property tax, as the Railroad itself is exempt from these taxes.
It’s also worth noting that property taxes on leases are based on a concept called “possessory interest,” meaning the value of the lease decreases over time as the lease term shortens. For example, a 30-year lease may initially be taxed as though the leaseholder had full ownership. But as the lease term decreases, the lessee’s interest in the property diminishes, and the property tax is adjusted accordingly. This can sometimes be misunderstood as leaseholders paying less in taxes than those who own property outright.
The cliffside property across from the manor is zoned for residential use, so any development would need to comply with those zoning requirements. While the city can’t speak for the Alaska Railroad Corporation (ARRC) or guess at their intentions, ARRC has suggested that they may be interested in developing employee housing on the site. However, no formal plans have been submitted to the city at this time.
If and when ARRC or any other entity submits a proposal, it will go through the city’s standard review process, including public input and consideration of how the development aligns with the community’s goals and zoning regulations. This ensures that any decisions about the property will be made with full transparency and community involvement.
The Memorandum of Understanding (MOU) between the City of Whittier and the Alaska Railroad Corporation (ARRC) outlines the steps for the sale, exchange, or management of lands within the city. A key component of this agreement is the plan to approach the state legislature and request permission for ARRC to dispose of certain lands. The MOU lays the groundwork for negotiations, specifying the properties in question, establishing the process for appraisals, environmental assessments, and surveying, and setting timelines for both parties to follow.
The agreement also defines how the City and ARRC will handle the legislative process, as state approval is necessary before any formal transfer of land can occur. This ensures that both parties are working transparently and with community input to achieve mutually beneficial outcomes regarding land management and development within Whittier.
For more details, check out the draft MOU here.
The lands being discussed in the exchange between the City of Whittier and the Alaska Railroad Corporation (ARRC) are limited to those currently under the Master Lease between the City and ARRC. These properties include over 250 acres of ARRC-owned land within the city’s boundaries, with about 105 acres located in the city core and waterfront district.
The purpose of the exchange is to bring these leased lands under city ownership to provide the community with greater control over their development and management. The specific parcels involved are identified as “Areas of Interest” and will be subject to further review, including appraisals and environmental assessments, before any sale or exchange is finalized.
Check out the “Resources” tab above to view the most recent Land Swap Conceptual Maps.
The city owns and leases land to create a steady revenue stream that supports essential services like schools, roads, and emergency response. This helps the community maintain long-term financial stability, ensuring that resources are reinvested into public services rather than relying on one-time sales of land.
To ensure that decisions about city-owned land reflect the best interests of the community, the City Council established the City Lands Advisory Committee in November 2023. This committee is made up of residents, local experts, council members, and city administration, creating a balanced group that represents the broader community’s voice. The committee’s role is to identify the city’s interests in properties within its borders and make thoughtful recommendations to the Council about how these lands should be managed or owned.
The key here is that these decisions aren’t made solely by the city administration. They are guided by a group of local residents—people like you—who consider what will most benefit the community. The City Council, which is itself elected by residents, makes the final decisions based on these recommendations. This process ensures that land management is a community-driven effort, rather than a top-down decision by the administration.
Click here to learn more about the committee or apply to be part of it!
No, it will not. The west side parking lot is under a lease with the City of Whittier and is not being considered as part of this proposed land swap. The east side, where the Sportsman’s Bar is located, is proposed to be transferred from the Railroad to the City of Whittier.