SKAGWAY, Alaska–Two credit unions have responded to this town’s request for expanded financial services—but each has a catch: they are looking for free office space to get started.
According to KHNS, Anchorage-based Credit Union 1 and Ketchikan-based Tongass FCU, have expressed interest in starting mini-branches in Skagway, which is located in a narrow glaciated valley at the head of the Taiya Inlet, approximately 670 miles southeast of Anchorage.
The interest is in response to a request from the Skagway Borough Assembly, which is seeking second financial institution in the town that is currently served by a branch of Wells Fargo.
“The hope was that a second, Alaska-centric banking institution, might be able to service the unique needs of rural Southeast life,” KHNS reported.
But Borough Manager Brad Ryan told the news outlet both institutions would require free office space for at least a first few years, but Deputy Borough Manager Emily Deach has questioned whether the municipality had the capability to give away space for free. Deach noted the borough’s code dictates that the municipality charges fair market value, with some exceptions for non-profits.
Additional Concerns
Deach said there may be municipal buildings available as space for a credit union, but she also has concerns with compliance with the Americans with Disabilities Act.
The assembly directed staff to look into the legality of the situation and obtain more information.