Anchorage LIO proposal offers savings, settlement to lawsuit; LAA disputes figures
A proposal by the building owners to keep the Legislature in the Anchorage Legislative Information Office building could save the state millions of dollars and get the legislators out of a political bind.
However,
The proposal, submitted
A meeting of the
Tax-exempt financing would be "considerably less" than the current lease payments of
The leaseholder company name is the
Varni wrote to Stevens that the proposal overstates the costs of moving to the
The 716 proposal creates a "statistical misperception," according to Varni.
"The purpose of statistics is to make something easier to understand; however, when used in a misleading fashion, may trick the casual observer into believing something other than what the actual data show," she wrote. "In this instance, 715
Pfeffer has indicated an intention to sue if the Legislature walks away from its obligation.
The proposal also states that 716 has secured a settlement to dismiss a lawsuit brought by
Gottstein's complaint alleges the LIO lease is illegal because it is neither an extension of an existing lease, nor 10 percent below market value, as statute requires for a long-term extension.
To fully settle the suit the
Trial in the case is currently scheduled for March.
A
Another stopgap solution offered to lower the existing rent by 5 percent, or
The lease is paid through
The owner group also notes it has approval to waive earthquake insurance on the building, which could save another
"
Revenue's examination of the options put the upfront cost to move out of the LIO and remodel 30,000 square feet of the Atwood at
Purchasing the LIO in some fashion would require the initial payment and then operating payments of
Legislative Affairs concludes the Atwood's annual operating cost to be
State ownership would also save
On
In a statement released prior to the proposal being made public -- multiple news outlets were denied a copy when requests were made to Stevens' office -- Slinker wrote the group trusts the council will consider the proposal that meets the council's terms.
"Our discussions with
The building houses off-season offices for 25 Anchorage legislators and is the de-facto home to much of the general Legislature's out-of-session activity.
Appraisals of the six-story building plus its underground parking facility have been as high as
His group first drafted and submitted terms for the state to purchase the building for
Look for updates to this story in an upcoming issue of the Journal.
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