Former Nome hospital listed for sale, development

NOME (AP) — Investors that include an Alaska state senator are looking for a buyer for the building that once housed the Nome hospital.

Sen. Donny Olson, D-Golovin, and Jim Gribbens, who splits his time between Nome and California, in January formed G-O LLC, a limited liability company, to buy the old Norton Sound Health Corp. hospital, KNOM-radio reported.

Norton Sound sold the building May 2 for about $450,000.

It's now listed for $2.5 million. The investors are advertising on eBay, Craigslist and other venues.

"It's casting a wide net," said Jessa Youngblood, a Southern California-based communications assistant and marketer.

Olson is a physician.

"He worked there for years and years, and Donny had a huge interest in making sure the hospital was preserved in some way, in making sure the property moves forward," Youngblood said.

As a hospital, the value assessed by the city to the structure was $16 million. Norton Sound Health Corp., a nonprofit organization, did not pay tax on the property.

With medical facilities removed, the city considers the building a warehouse and has assessed its value at $1.4 million.

"Right now the sale price that we have listed is $2.5 million, and that's based on a simple square footage analysis," Youngblood said. "We really wanted to put the price at a point where a developer would have room to make an investment in the property. So it's currently listed at a price that is $45 a square foot for the building."

The property could be used for housing, offices, assisted living, or other purposes, Youngblood said.

"We have 55,000 square feet, and it's over several city lots, so it's an opportunity to create several of these options at one location."

05/15/2014 - 8:05am