The Anchorage Assembly on April 29 unanimously approved a $4.2 million funding package for the purchase.

The next day, municipality of Anchorage officials signed the final papers to close the deal to buy the building. The purchase was made in partnership with the Alaska Club.

The ink was barely dry on the mayor's signature to authorize the financing when city officials and Alaska Club representatives signed the final closing documents, completing the deal with Hickel Investments.

The appropriation of funds and the closing of the sale are the final steps for the Eagle River Town Center, which has been a goal of the community for more than a decade.

Mayor Mark Begich said he was pleased to see the dream become a reality.

“When I first came to office, I heard from the people of Eagle River this was a top priority,” he said. “It's been a long road, and it's the work of the community that has really made this possible.”

The plan calls for the former grocery and drug store space to be renovated to house an expanded Alaska Club and relocation of municipal offices and the library.

Backers of the town center concept hope the new city-owned facility will also attract new businesses to downtown Eagle River.

“With the city (functions) coming together in one location, the energy will exist to generate supporting retail, and, from your standpoint, I would think that the community would be much better served by a city that is not fragmented all over town,” said Susan Gorski, Chugiak-Eagle River Chamber of Commerce executive director.

Several municipal departments will have space in the new town center, including the Chugiak-Eagle River branch library, a new Anchorage Police Department sub-station, Eagle River-Chugiak Parks, Recreation and Community Development, Chugiak-Birchwood-Eagle River Rural Road Service Area street maintenance, Developmental Services, Municipal Assessors Office and Health and Human Services WIC Program offices.

Work on the renovations of the space should begin soon, with crews first focusing on replacing the 30-year-old roof, said Mary Jane Michael, executive director of the city's Office of Economic and Community Development. The estimated replacement cost of $2.2 million will be split between the Alaska Club and the municipality.

“We've got to take the roof off before we can do anything to the building,” Michael said. “We're in the process of having the designs done for the new roof and will put that out to bid soon.”

Work will begin once the bidding period closes, likely in August, she said.

“We anticipate the Alaska Club will get to work pretty quickly as they don't have to go through the public bid process,” Michael said.

Michael anticipated the reconstruction would be completed and be ready for occupancy by the spring of 2009.

The funding package approved by the Assembly for the purchase and renovation of the space includes a $1 million grant from the Rasmuson Foundation, $1 million contribution from the Eagle River-Chugiak Parks and Recreation Service Area, and $500,000 from the facilities bond approved by Anchorage voters in April. The city is also borrowing $1.7 million in an inter-fund loan to pay for upgrades.

The final critical component comes from about $2 million in the state capital budget, which is now awaiting Gov. Sarah Palin's signature, Michael said.

“The big thing now is securing the money from the state,” she said. “We need the community to contact the governor and encourage her to support the Legislature's decision to fund the project.”

In the past the governor has vetoed funding for the project, but Gorski is hopeful this year will be different.

“It's my understanding that she (the governor) wanted to see community support and matching funds before approving state money,” she said. “With the funding in place and the deal closed, it shows a commitment to making this dream a reality.”

If the grant from the state should be vetoed by Palin, the Assembly approved a $2 million back-up loan.

Reach the reporter at darrell.breese@alaskastar.com.

This article published in The Alaska Star on Thursday, May 8, 2008.