Alaska Communications Systems (ALSK)

[Afterlife]

Taken from a old article on SA

the Municipality of Anchorage allows anyone with an internet connection to search its property tax assessment database. A simple name search for Verizon in that database yields nothing, however Verizon Wireless has a different legal name. Verizon Wireless is actually a partnership that is 55% owned by Verizon Communications and 45% owned by European telecom giant Vodafone Plc. (NASDAQ:VOD). This entity is called Cellco Partnership and does business as Verizon Wireless. Search the Anchorage database for “Cellco” and you find an ownership record for a four acre parcel of land in midtown Anchorage. The exact location is the most interesting part, as it is directly behind the headquarters of Alaska Communications.

The Municipality of Anchorage identifies the land as parcel # 009-082-23-000 and assesses the value of the empty lot at approximately $1.9 million. The record indicates that ownership of the parcel was last transferred on August 9, 2011. Visiting the website of the State of Alaska Recorder’s Office shows that the land was in fact sold by Alaska Communications to Verizon Wireless, as a Statutory Warranty Deed is on file and signed by Anand Vadapalli (Alaska Communications’ CEO). Also on file with the State Recorder’s Office is a Common Maintenance Access Agreement that allows access from the parcel of land Verizon Wireless purchased to an adjacent parcel owned by Alaska Communications.

Any long-term Anchorage resident can attest that the parcel purchased by Verizon Wireless has been an empty lot covered in trees for years. Images from Google Maps can also verify this as the last photo capture (done sometime in Spring 2011) shows a wooded lot. Beginning in September, the site has seen a recent flurry of activity. What was once land filled with trees has now been completely cleared and a large amount of dirt has been hauled away. A building permit is posted at the site that indicates Verizon Wireless is the site owner/permit applicant, but it lists Alaska Communications as well. The adjacent public road was closed for approximately 10 days as wastewater connections were made. Additionally there have been a lot of pipes buried in the ground around the site, likely a combination of drainage and electrical conduit. Elements of an actual building have not yet materialized, but recently trenches have appeared at the site which could certainly be the location for foundation footings. Searching the Municipality of Anchorage’s building permit activity records shows that two permits were issued in September 2011 for the site. The permits are for a new building and the work is valued at a combined total of $4.4 million. Furthermore, the Muni tax assessment database has been updated to indicate a building on the site that was “built” in 2011. It is listed as a single story “Telephone Equipment Bldg” and has a size of 21,870 square feet. Obviously the building has not yet been built, but it is planned for the site.

So, again another quick summary:

In August 2011 Alaska Communications sold the land directly behind its headquarters to Verizon Wireless (hello 800 lb. gorilla!).
The two companies have been working together to develop the site (as evidenced by posted building permits).
The land was likely purchased for at least $2 million and building permits indicate approximately $4.5 million of planned work. Therefore, the current level of Verizon’s investment in Alaska likely stands between $8 and $10 million (including the purchase price of the 700 MHz spectrum).

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