Fire Commissioners Discuss Key Center Properties in Town Hall

Key Peninsula Fire District 16’s town hall July 10, initially intended to focus on wildfire protection and the Aug. 6 Maintenance and Operations Levy, quickly shifted as some of about 20 community members confronted the board of fire commissioners about real estate purchases made in 2021.

That’s when KPFD bought two Key Center parcels for $2.125 million. The first was the so-called Calahan property, the former site of O’Callahan’s restaurant, on the corner of KP Highway and Olson Drive NW, for $950,000. The district also spent $1.2 million for the Olson estate, two lots with a house and a pasture, totaling 2.8 acres across KP Highway from Station 46 headquarters.

Both parcels were paid for with a private bond at 1.82% interest. In December, the district will start paying $148,675 annually in principal and interest payments for the loan until 2040.

Commissioners Randy Takehara, Stan Moffett and Shawn Jensen, who were on the board in 2021 and voted to buy the properties, partially agreed with that sentiment.

Each admitted their willingness to sell the Calahan property, saying that particular piece of land is no longer part of the district’s vision. In 2022, then Board Chair Moffett told KP News the properties were bought to provide options for a possible new headquarters to replace Station 46 in Key Center, a training facility, community rooms, and perhaps a health clinic. Moffett said at the town hall the clinic idea was quickly abandoned because of the proximity of the then-new Peninsula Community Health Services and the financial impracticality of the district to run its own clinic.

“It’s up to what the community wants at this point,” Takehara, now the commission chair, said about the property.

“We’re aware that parcel was overpaid,” Jensen said. “That ship has now sailed. How much are we willing to take a loss to sell that piece of property? Do we (sell it) now and potentially let it go at half of what we paid for it? How would the community react to that? Or, do we hold on to it for a couple of years until the value increases to the point where we can let it go at a reasonable amount?”

Earlier this year the board turned down an offer from a potential buyer looking to open a daycare. Jensen said he doesn’t think it would be wise to sell the property “at any price,” but would support it “if that’s what the community wants.”

“You want us to sell that property? OK, we hear you. At what price point would (you) be willing to let this property go?”

A few members in attendance took exception to those statements, arguing that the community had no say in buying the property but is now being asked to decide its future.

Takehara showed KP News there was information about the land purchases on the district’s website as early as July 2021, with ways to ask questions about it in person, by email or over the phone.

“We received no negative feedback from the public and nobody seemed to have objections during (board of commissioner) meetings.” He added board meetings were “lightly attended” in 2021.

Even if the district sells the Calahan location at a loss, it would still be on the hook to pay back the remaining balance of the loan. The plan is to keep the Olson estate on the books for potential future use.

In addition, Moffett also said there have been discussions about a land swap with Sunnycrest Nursery, located between the two parcels. The district would give Sunnycrest “some property on the frontage on the (KP) highway,” from the Olson estate, and the KPFD would get the back portion of the Sunnycrest property.