The Economic Development Committee approved the sale of tidelands and property near the Stikine Inn Monday. Owners Cheryl and Bill Goodale want to add 30 rooms and additional retail space on the south end of the building.
The hotel currently has 34 rooms. The Goodales offered about $64,500 for the property, significantly less than the appraised value of $101,200. Goodale said he compared development costs and values of properties he’s previously owned to come up with the offer.
“It came in at about $2.15 per square foot. I thought since I’m not an assessor or an appraiser, I’m willing to throw in a little less than 10 percent,” he explained. “This is what I feel it’s worth with the amount of money we have to spend to develop it.”
Goodale plans to fill tidelands in front of the hotel, adding about 27,000 square feet near the visitor shed. A permit from the Army Corps of Engineers is required for the project. Goodale cited the uncertainty of obtaining the permit as another risk associated with the purchase. Goodale estimates the expansion will generate up to $125,000 in sales, bed and property taxes.
Committee members supported the plan and its potential economic benefits. The sale was unanimously approved. The Wrangell Borough Assembly will consider the finalization of the deal Wednesday.