The Anchorage Assembly on Nov. 4 approved AO 2025‑120 authorizing the municipal manager to negotiate and execute a purchase and sale agreement and related lease‑leaseback financing for City Hall (632 W. Sixth Ave.) and associated parking parcels.

Administration said the municipality has leased the City Hall building since the 1970s and that the current lease contains a purchase option. An appraisal process placed the all‑in purchase price for the building and associated parking parcels at roughly $35 million; administration described the financing plan as a lease‑leaseback in which a financier (identified in staff materials as JP Morgan Securities) would provide the purchase funds, the municipality would lease the property to the financier, then lease it back under a multi‑decade payment schedule to amortize the financing.

Chief administrative staff said the transaction converts ongoing lease payments into a debt service schedule but reduces annual operations and maintenance costs because the municipality would no longer pay the private owner’s property tax pass‑throughs and would purchase insurance at municipal rates. The administration explained that financing is expected to raise the municipality’s annual carrying cost modestly in debt service but yield net annual savings after operation and maintenance adjustments; officials cited decades of rent payments as a rationale for acquiring the building.

Members asked about the appraisals, the purchase price, operations and maintenance implications, and the structure of the lease‑leaseback. Staff said they are finalizing the purchase agreement and believe the deal is financially prudent given long‑term costs. The Assembly approved authorization to proceed by an 11–1 recorded vote.