Prices for Pederson Hill subdivision lots higher than expected

Prices for Pederson Hill subdivision lots higher than expected

Lots have been appraised and prices are higher than expected

Prices for the lots in the new Pederson Hill subdivision were released by the City and Borough of Juneau Wednesday.

The appraised prices for the 17 lots in the first phase of the development range from $120,000-148,000 totaling $2,276,000, with an average of $133,882, according to a press release from the city.

The first six lots will be sold by lottery at a fixed price on Dec. 10. Those lots range between $135,000 and $148,000.

The next lots will be sold in a sealed competitive bid process on Dec. 17. Those lots will be sold in two batches. Six of those lots will be sold as a block, and the remaining five will be sold individually.

The lots to be sold as a block have all been appraised at $128,000 each for a total of $768,000. The remaining lots, ranging from $120,000 to $148,000, are worth $693,000, according to appraisal information.

The appraisal was done by the Julie Dinneen Company out of Larfayette, Colorado. The company looked at comparable lots in other areas of the Mendenhall Valley. The subdivision is located off Glacier Highway between Auke Lake and the Mendenhall River.

The appraisals assigned higher values to larger lots and lots located on corners. “In estimated value for each lot,” the appraisal document says, “larger size and corner locations are considered superior features, and irregular shape, shared driveway access and relatively small size are considered inferior features.”

The subdivision is the city’s first foray into land development. By constructing the roads, sewer and other infrastructure, as well as making the lots smaller, city officials had hoped to keep the prices of the home eventually built there lower than those built by private developers.

City officials held a ribbon cutting ceremony on Sept. 6 to celebrate the near completion of the project. “A lot of people are interested,” said Mayor Beth Weldon at the time, referring to developers looking to build homes on the land.

Map of the Pederson Hill subdivision. Lots in the yellow, phase 1A area have been appraised at prices ranging from $120,000-148,000. Parcels will be sold on Dec. 10 and 17.

Map of the Pederson Hill subdivision. Lots in the yellow, phase 1A area have been appraised at prices ranging from $120,000-148,000. Parcels will be sold on Dec. 10 and 17.

However, once the land is sold builders can construct and then sell whatever kind of homes they want so lower home prices are not necessarily guaranteed.

The project was not without its critics, with some arguing the city shouldn’t be involved in land development. There were also concerned with the price. The Empire reported last year that the project cost was just shy of $9 million.

In 2016, the Empire reported that City Lands Manager Greg Chaney had wanted to sell the lots for roughly $80,000 in hopes of having the homes built there sold for about $300,000.

The city has to sell the lots at fair market value, said Deputy Lands Manager Dan Bleidorn.

“The people that purchase these lots will be able to put any type of homes they want on them,” Bleidorn said.

Bleidorn told the Empire in a phone interview Wednesday that the city has received a number of phone calls and emails expressing interest in purchasing the lots. However, those inquiries came in before the prices for the lots had been released.

The lots will officially go on sale in the middle of October, according to Bleidorn. Tentatively the date the city was aiming for was Oct. 17, Bleidorn said. At that time sales information will be made available to the public.

There are currently 86 lots designated by the city. If all the lots are sold at the averaged appraised price for the first phase, roughly $134,00, the total will be more than $11.5 million.


• Contact reporter Peter Segall at 523-2228 or psegall@juneauempire.com.


More in News

Then-vice presidential candidate Sarah Palin speaks at a rally in Montgomery, Ala., in 2017. Palin is on the verge of making new headlines in a legal battle with The New York Times. A defamation lawsuit against the Times, brought by the brash former Alaska governor in 2017, is set to go to trial starting Monday, Jan. 24, 2022 in federal court in Manhattan. (AP Photo / Brynn Anderson)
Palin COVID-19 tests delay libel trial against NY Times

Sarah Palin on Monday tested positive for COVID-19.

Float of ducks off Pt. Louisa with Eagle Peak, on Admiralty National Monument around dusk in Juneau winter.
Wild Shots: Photos of Mother Nature in Alaska

Reader-submitted photos of Southeast Alaska.

FILE - Participants wave signs as they walk back to Orlando City Hall during the March for Abortion Access on Saturday, Oct. 2, 2021, in Orlando, Fla.  State-by-state battles over the future of abortion in the U.S. are setting up across the country as lawmakers in Republican-led states propose new restrictions modeled on laws passed in Texas and Mississippi even as some Democratic-controlled states work to preserve access.  (Chasity Maynard/Orlando Sentinel via AP, File)
With Roe in doubt, states act on abortion limits, expansions

“This could be a really, really dramatic year…”

This undated electron microscope image made available by the U.S. National Institutes of Health in February 2020 shows the Novel Coronavirus SARS-CoV-2, yellow, emerging from the surface of cells, blue/pink, cultured in the lab. Also known as 2019-nCoV, the virus causes COVID-19. THE CANADIAN PRESS/AP, NIAID-RML
COVID at a Glance for Friday, Jan. 21

Numbers come from reports from the City and Borough of Juneau Emergency… Continue reading

Ted Nordgaarden of the Alaska Bureau of Investigation imitates the gesture made by the defendant during the trial of a man charged with killing another man in Yakutat in 2018. (Screenshot)
Investigator testifies as trial concludes second week

The jury watched video of the defendant’s initial interview in custody.

Peter Segall/Juneau Empire
One of the last cruise ships of the 2021 season docks in Juneau on Oct. 20, 2021. Local operators say it’s too early to know how the upcoming cruise season will unfold, but they’re cautiously optimistic.
Smooth sailing for the 2022 season?

Cautious optimism reigns, but operators say it’s too early to tell.

It's a police car until you look closely and see the details don't quite match. (Juneau Empire File / Michael Penn)
Police calls for Sunday, Jan. 23, 2022

This report contains public information from law enforcement and public safety agencies.

Most Read