March 26, 2026, Letter to the Editor submitted to the Seward Folly by Michelle Keagle

In a public notice posted on the Seward Folly website on March 12, 2026, (https://sewardfolly.com/2026/03/12/public-notice-alaska-mental-health-trust-authority/) the Alaska Mental Health Trust Authority (the Trust) announced plans to sell real estate holdings in several locations across the state, including Blueberry Hill in the Seward area, over three years beginning in 2027. This announcement wasn’t surprising, as the Trust had previously shared the cost of a feasibility study for road access to this area with the Kenai Peninsula Borough (KPB) in 2024. After the study’s results, KPB purchased an 80-acre parcel for $1.2 million from the Stoney Creek Zipline Co. The land sits between the south end of the Questa Woods neighborhood and the Trust’s properties.

This purchase moved forward despite opposition from a number of Seward residents, including our Borough representative Cindy Ecklund, who was the only member to vote against it. While access to the Trust lands was promoted as a way to help ease Seward’s housing crisis, many locals feel it’s economically unfeasible for the people most in need of housing.

For those unfamiliar with the Trust’s inner workings (myself included), here’s a brief overview from their website (alaskamentalhealthtrust.org). Before statehood, Alaska had few resources to provide services for people with mental illness or disabilities and relied on the federal government, but only in cases where a person had been charged and convicted as “insane and at large.” In 1956, Congress transferred the responsibility to Alaska to provide a comprehensive mental health program. The Trust was established and granted one million acres of land to generate income for this program. After a few court cases, the Trust was reestablished in 1994 with $200 million in cash and one million acres of land. The cash is managed by the Permanent Fund Corporation, while the Trust Land Office (TLO) manages the non-cash assets (like land).

Income generated from land sales largely enables the Trust to provide grants to beneficiaries, nonprofits, tribal entities, and other groups that prioritize mental health and disability programs. Their focus areas include disability justice, mental health and addiction intervention, behavioral health crisis response, beneficiary employment and engagement, housing and home/community-based services, workforce development, and early childhood intervention and prevention. The Trust’s beneficiaries are Alaskans who experience mental illness, intellectual and developmental disabilities, substance use disorders, Alzheimer’s disease and related dementias, and traumatic brain injuries.

The decision to sell land comes down to several factors: the land is not valuable for resource extraction (logging, mineral exploration and production, rock/gravel sales), it’s not expected to significantly increase in property value over time, and the administrative cost of keeping it is no longer financially justified.

There’s no doubt our state is at the frontlines of the ongoing mental health crisis, and nothing is more important than continuing to fund vital programs to support our underserved friends, family, and neighbors. I believe the Trust is operating within its authority and the statutes of the state in selling these lands to generate income. Unfortunately, the statutes require only a public comment period and not direct engagement with the residents most affected by the sales. I wanted to highlight this public notice because many Seward residents have felt blindsided and uninformed by this evolving process. This is another step that could lead to sweeping changes in the character and nature of some neighborhoods in Seward. We should keep pressing KPB for greater transparency.

If you believe the decision to sell the Blueberry Hill parcels (and others) should be changed either because it’s not in the best interest of the Trust or its beneficiaries, or because it’s inconsistent with the Trust management principles set out in state statutes, comments are due in writing by 4:30 p.m. AKST, April 20th. You must comment if you want to be eligible to request reconsideration. If no comments are received, the decision will be affirmed, and the proposed action will be taken.

Mayor Micciche will be holding a town hall meeting at the Seward Library on April 1st, 2026, at 6:00 p.m. For more information and to read the public notice, visit: Seward Folly – Alaska Mental Health Trust Authority Public Notice