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Construction Begins on Holtan Hills Development in Girdwood

Construction site of the Holtan Hills housing development in Girdwood

News Summary

Construction has started on the Holtan Hills housing development in Girdwood, Alaska, which aims to address local housing needs. While some community members support the project for providing more affordable housing, others express concerns over potential impacts on housing affordability and community character. Upcoming public meetings will discuss these issues, including opposition to short-term rentals that exacerbate housing shortages. The development’s future and its effects on Girdwood’s community will be shaped by ongoing dialogue among residents, local officials, and developers.

Construction Begins on Major Housing Development in Girdwood, Alaska Amid Community Concerns

The city of Girdwood, Alaska, has seen the commencement of a significant new housing development known as Holtan Hills. This large-scale project marks the largest development effort in the community in several decades, drawing both support and opposition from residents and local officials alike.

Details of the Development

Construction activities for Holtan Hills officially started recently, involving the clearing of a road, walkway, and utility lines through a rainforest area located on wooded land northwest of Alyeska Resort. The project encompasses approximately 60 acres in total, situated within the municipal boundaries of Girdwood, a community located about 45 minutes south of Anchorage.

The initial phase of the development aims to prepare 50 “shovel-ready” sites for various types of housing, including single-family homes, duplexes, and townhouses. Additionally, there are plans for two multifamily lots that could yield approximately 20 housing units. These efforts are designed to address the local demand for affordable and available housing options.

Approval and Planning Background

The Anchorage Assembly approved the Holtan Hills project last year following a 2022 agreement between the developer, Connie Yoshimura of CY Investments, and the Heritage Land Bank. The approval process raised public awareness and sparked widespread discussion among residents and community groups.

Community Reactions and Controversies

Despite official approval, the development has faced strong opposition from many Girdwood residents. Concerns center around potential impacts on housing affordability, displacement, and the character of the community. Critics argue that the project could exacerbate existing issues related to skyrocketing home prices and a scarcity of affordable units.

One prominent issue is the increasing number of “dark homes” or units used primarily for short-term rentals. Recent data shows that more than half of recently built residential units in Girdwood are now either unoccupied or dedicated to tourism, which some say worsens housing shortages for local workers and families.

Developer’s Intentions and Restrictions

Proponents of Holtan Hills maintain that the development will help relieve pressure on the housing market and foster a more vibrant community. To address concerns about short-term rentals, the project guidelines specify restrictions such that single-family homes cannot be used for short-term rentals. Furthermore, at least half of the multifamily units will be allocated to a Girdwood housing trust dedicated to creating affordable housing.

Yoshimura and supporters also emphasize that part of the project’s purpose is to help stabilize the local housing market for residents and workers. They have committed to transparency, sharing more than 600 announcements with the community to keep residents informed about the project’s progress and details.

Challenges and Financial Concerns

However, local community representatives express skepticism about the financial sustainability of the project, particularly regarding its reliance on additional municipal funding for infrastructure upgrades. There are concerns about the potential for public funds to benefit private developers and lead to profits that do not necessarily serve the current residents.

Community members also worry that the project might increase the number of unaffordable homes, further complicated by the possibility of more municipal funding being required to support infrastructure improvements.

Upcoming Public Engagements and Further Discussions

A public meeting scheduled for September 23, at the Chapel of Our Lady of the Snows, will provide detailed information about the project and offer residents an opportunity to voice their opinions. Additionally, the Anchorage Assembly is expected to consider further restrictions on short-term rentals in the near future as part of ongoing efforts to address community concerns.

Summary

The Holtan Hills project signifies a major step in Girdwood’s development agenda, aiming to add housing supply and support the local economy. Nevertheless, it continues to face challenges stemming from community resistance, questions about affordability, and concerns over city funding. The upcoming public meetings and municipal discussions will play a crucial role in shaping the future of this development and its impact on Girdwood’s community fabric.

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