The Anchorage Assembly voted Tuesday night to postpone a decision on extending a developer's land deadline until May 12 after residents of a mobile home park testified they are losing $70,000 investments for $6,000 buyouts.

The 7-3 vote delays action on an ordinance that would extend the development period for Sean Debenham's Raspberry Townhomes project, a 58-unit development on former city land purchased at a discount. The postponement came after residents of South Park Estates, a mobile home park Debenham is closing, asked the Assembly to link the extension to fair relocation agreements.

Corey Hill, a South Park Estates resident, told the Assembly the park had 66 owner-occupied homes in 2020. Today, after partial demolition, fire, and evictions, only 35 homes remain occupied.

"We're calling on the assembly to table that extension until Mr. Debenham reaches a fair relocation agreement with the residents he is displacing from South Park Estates," Hill said.

Residents testified that each family has invested approximately $70,000 into their homes: $30,000 to purchase, $20,000 in materials, and $20,000 in labor. Debenham is offering $6,000 to residents who move out early, or $9,000 plus three months free rent for those who relocate their mobile homes.

Dana Santana, a 15-year resident, said the $6,000 offer amounts to two months' rent at one of Debenham's downtown properties. Anchorage Development Services has estimated the true cost of relocating a manufactured home at about $40,000.

Debenham told the Assembly the two projects are separate developments with different investors. He said he has spent $907,000 on site preparation, $400,000 on construction drawings, and obtained construction permits and financing commitments. He plans to break ground May 7.

The reversionary clause requires development within a set timeframe or the land reverts to city ownership. Municipal code includes such clauses to prevent developers from sitting on properties made available for development. The clause does not take effect until June 2027, but Debenham said he cannot secure investor funding or construction financing without the extension.

Cliff Whited, a Phase 1 resident, said Debenham committed during the South Park Estates rezoning process to working closely with residents and developing a relocation package that "works out for everybody." Phase 1 residents received 270 days notice, three months short of the one-year notice Debenham promised the city, Whited said.

Whited also detailed public investment in Debenham's Block 96 downtown project: $1.8 million from the Anchorage Community Development Authority, a land lease valued at $1.4 million below market rate over 20 years, an EPA Brownfield grant, and a 12-year property tax exemption estimated at $1.8 million. Residents estimate total public contribution at about $5 million.