The Gastineau Apartments building has been appraised at $50,000; it could be worth significantly less if hazardous materials such as asbestos or urea-formaldehyde foam insulation are found in the building. If cleared, the lot is valued at $810,200. Juneau’s tax rolls had listed the property’s value as $1.2 million.
The building has been uninhabitable since November 2012 when an accidental fire destroyed most of the front part of the structure. Since then, the city has made numerous attempts to have the owners either clean up the property or at least install a temporary roof to prevent further damage. The appraisal — dated Oct. 31 —comes as the Juneau Assembly considers purchasing the property.
The appraisal includes estimates for three options the city could choose from to make the property ready for redevelopment; costs to fully rehabilitate the property and make it habitable are not included.
Demolishing the buildings and clearing the property would cost about $160,000 more than the vacant lot’s estimated value. However, with the lot cleared a developer could construct a more efficient and valuable building.
Another option would have the city spend $750,000 to make structural repairs to the building facing Franklin Street. “Building A” is the original part of the Gastineau Apartments building; it was built in 1915 and it suffered the most damage in the fire. It would cost an additional $1 million to clean up and selectively demolish Buildings B and C, the structures in the back of the property. This option would put the city in the red by about $310,000.
The city could come out ahead by about $66,000 if it chose to completely demolish the hundred-year-old portion of the building. The two back buildings would be “selectively demolished.”
The current owners of the building — James and Kathleen Barrett — provided the appraiser with a summary of expenses and income generated during its last four years. Based on that information, the appraiser calculated that the property generated about $140,000 per year after expenses.
Individual Assembly members have reviewed the appraisal, but they’ve not discussed it as a group. The next regularly scheduled meeting is Dec. 1.
