The online auction to the highest bidders on 20 borough-owned lots at the Alder Top Village (Keishangita.'aan) subdivision will start on Tuesday, July 1. The auction will close Oct. 31.

Starting bids for the lots will range from $55,300 to $75,400 for the eight front-row parcels just off Zimovia Highway, and from $49,800 to $68,800 for the other lots in the subdivision near Shoemaker Bay.

The borough will add a "5% buyer's premium" to the winning sale price for each lot.

The parcels range from 17,000 to 23,700 square feet, or 0.39 to 0.54 of an acre. The lots are zoned for single-family residential development.

The asking prices were set at the appraised value.

Even if the borough sells all 20 lots, it will still lose more than $2 million on the development. Total costs for clearing and filling the land, putting in streets and buried utilities are anticipated to come to about $4.1 million.

The borough developed the land to help ease the housing shortage in town, not to make money on the sale.

"This subdivision represents a key investment in Wrangell's housing future and offers a rare opportunity for residents, builders and new community members to secure residential land in a scenic, fully serviced location," according to the borough's Facebook post on June 20.

Final street building and utility construction is expected to be completed by Oct. 31, according to the borough, allowing buyers to take possession of the property as soon as they make payment and transfer documents are filed.

The streets are named Chum, Chinook and Sockeye.

The auction will be conducted at publicsurplus.com, a commercial website that handles property sales for government agencies nationwide. A $500 deposit is required to post a bid; losing bidders will get their $500 back.

There are no limits on the number of lots an individual can bid on or win at auction, and no deadline to start construction.

Winning bidders can either pay the full amount owed within 60 days of signing a purchase agreement or can request within 10 days of signing that the borough finance the purchase. Terms of borough financing have not been set.

Bidders must be at least 18 years old. Anyone owing money to the borough for taxes or utility bills will not be allowed to bid.

More details of the land sale are available at https://bit.ly/AlderTopLandSale.

The 20 lots are the first phase; additional parcels could be developed and sold, depending on the response to the first offerings.

The federal government gave the borough the 134-acre property in 1996. The U.S. Bureau of Indian Affairs Wrangell Institute Native boarding school occupied the site from 1931 to 1975.

Buildings were later removed and the land underwent an extensive environmental cleanup.