Charter school will purchase building, but cost will be deferred and forgiven if it spends $2 million over 10 years on maintenance and operation.

By Jake Dye
Special to the Homer Independent Press


The Kenai Peninsula Borough will give Nikolaevsk School to the nonprofit group behind the new Nikolaevsk Charter School under a deal that waives the cost of a sale if the organization both operates a school on the property and invests in maintenance and other related costs.

The borough assembly voted Tuesday 6–2, with members Willy Dunne and Cindy Ecklund opposed, to approve a deal to “convey” a school building to Alaskan Homestead Education Inc.—a nonprofit organization formed in 2023. 

Under terms of the deal, the nonprofit will purchase Nikolaevsk School for the price of about $2 million, though the entire cost will be deferred and eventually forgiven by the borough if about $200,000 is spent annually by the nonprofit in each of the next 10 years to maintain and operate the facility.

Alaskan Homestead Education Inc. won approval of its charter school last year on a 5–3 vote, after being denied for several years and despite Kenai Peninsula Borough School District administration saying it had outstanding concerns about the group’s proposed budget, facility, enrollment and operating plan.

The school has been vacant since July 2025, after the school district last year closed the facility, citing low enrollment. At that time, 21 students were enrolled in the K-12 school, which was built in 1976 and has a capacity of 175 students. The new Nikolaevsk Charter School was approved only six months later.

Mariah Kerrone, president of Alaskan Homestead Education Inc. and a member of the charter school’s governing committee, said Tuesday that the building had been “underutilized” because the community had been shut out of the building in recent years. She said they planned to use it—in addition to the new charter school—to house a pottery studio, a preschool and a community space. 

Dunne, who voted against the ordinance authorizing the deal, previously delayed the assembly’s action on the measure because he said many questions were outstanding. On Tuesday, he moved to reconsider the final vote— meaning the assembly could theoretically reverse course during its July 7 meeting. That also means the ordinance will not take effect before that meeting. 

Borough Mayor Peter Micciche, who proposed the deal, said Tuesday he wouldn’t wait any longer for the legislation to become effective. He said the vote had been “extremely decisive” and that it wouldn’t change next month.

“We are going to give them full access to the school tomorrow morning,” he said, referring to Wednesday. “The entity will have full access to that building at 8 a.m. tomorrow morning, and we’re going to support them on getting started as soon as possible.”

Dunne said that his questions had largely been “answered to my satisfaction” during a lands committee meeting earlier Tuesday. At that meeting, Borough Land Management Officer Aaron Hughes told the assembly that the annual payment plan in the deal is unusual for the borough, that the organization was not required to prove any financial health to the borough and that the organization would be required to purchase certain insurance on the facility as part of the deal.

The school property, which is valued at nearly $8 million, is being sold for a fraction of the cost, Hughes said, because it’s more expensive for the borough to maintain it. The building has an estimated $7 million in outstanding deferred maintenance and, in part because of its remote location, no identified alternative uses.

“This was developed on a cost avoidance,” Hughes said. “Right now, it’s going to cost the borough anywhere from $200,000 to $300,000 annually just to keep the heat and lights on in that facility. We felt it was in the best interest of the borough to look at disposing of that property in order to avoid those costs.”

Dunne said during the assembly meeting that night that he was unconvinced that giving the school to the private nonprofit was “setting them up for success.” Running a facility, especially as a young nonprofit, comes with lots of logistical, clerical and maintenance work. He suggested that the borough instead lease the facility to the group.

Micciche said that a lease had been explored as a possibility and rejected. He described the current deal as a “reverse lease-to-own.” The borough has the option to reclaim the school during the 10-year span of the deal if Alaskan Homestead Education Inc. fails to meet certain requirements — like operating a public school in the building.

“We do feel it’s the best option,” he said. “Best for the borough, best for the organization, best for the community. We’re very supportive of this agreement moving forward.”

Other members of the assembly said they supported the deal because they supported the charter school.

“I think that this is a reasonable way for us to go,” Assembly Vice President Kelly Cooper said. “I wish them all the success, and I think that the community out there has really stepped up and showed us how important that charter is for them.”

Dunne said the charter school’s approval isn’t contingent upon the borough’s sale of the school and that the question isn’t whether they support the charter or not. Instead, he said it’s “a matter of ‘is this good public policy?’” The school isn’t set to be given to the charter program, but to a private nonprofit organization.

“I want the charter school to succeed,” he said. “I would think it much more prudent to move a little more slowly and to allow the charter school to get off to a good start, but keep the building in public ownership for now.”

The assembly documents for Tuesday’s meeting include five comments submitted on the ordinance, all in opposition and all questioning the decision to give a large, valuable public facility to a private organization.

An amendment made to the ordinance Tuesday says that “this arrangement must not be viewed as a precedent impacting any future surplus school facilities.” Ecklund, who voted in opposition with Dunne, said she hopes that the borough indeed doesn’t attempt the same deal with other newly vacated facilities like Sterling Elementary School or Tustemena Elementary School.

“I just hope that we do not ever see something with this sweet of a deal come for any of the other schools that are closing,” she said.

The full text of the ordinance and other documents, as well as a recording of Tuesday’s meeting, can be found on the Kenai Peninsula Borough calendar.