The remaining lots in the new Pederson Hill subdivision are now for sale on a first-come, first-serve basis, according to a press release from the City and Borough of Juneau.
The subdivision is the city’s first foray into land development, and it chose to sell the lots using two different methods.
The first six lots were sold via lottery drawing on Dec. 10. The names of potential buyers were drawn at random and the winners could choose whether they wanted to buy a lot. All six of the lots were sold at their fixed appraised price at that drawing.
But only one lot was sold through the city’s other option, a sealed competitive bid, according to Roxie Duckworth, lands and resources specialist with the city.
Now, the remaining 10 lots will be sold at their appraised price to prospective buyers. Four of the available lots can be purchased individually and three pairs of lots are available, according to the release.
Lots range in price from $120,000-148,000.
The Pederson Hill development was somewhat controversial, with criticisms coming mostly from developers who said the city shouldn’t be involved with land development.
When the lots were finally appraised, the prices came back a bit higher than the city had hoped. City officials thought that by building the roads and other infrastructure needed for home construction, the final cost of a home in the subdivision might be more affordable.
Lands Manager Greg Chaney previously told the Empire the higher-than-expected price was a reflection of the housing market in Juneau.
At the Dec. 10 land sale, owner of Lowpete Construction Rich Petersen told the Empire he wasn’t sure if he would participate at the sealed bid sale. Even at the appraised price, the high cost of the land had made him question if it could be a profitable venture.
Petersen, his company, his employees or people who had already entered into an agreement with Lowpete to build homes ended up purchasing all the lots available Dec. 10.
More information about the available lots can be found at the Lands Division website or by calling 586-5252.
• Contact reporter Peter Segall at 523-2228 or psegall@juneauempire.com.
