On Tuesday night, during a barely noticed portion of the Anchorage Assembly’s July 30 meeting, a well-connected Democrat-owned business quietly secured yet another long-term property tax exemption, again benefiting the owners of Fire Island Rustic Bakeshop.
The exemption grants 10 years of zero property taxes on the improvements to bakery’s building at 2530 E. 16th Ave. The property is in addition to the downtown Fire Island location, which also enjoys a full exemption from property taxes. The deal was passed after being buried in the Assembly’s “consent agenda,” a portion of the meeting where multiple items are approved all at once, often without discussion and rarely with public visibility. Consent agenda items are supposed to be noncontroversial, but in this case it was the process itself that is controversial.
Assembly Memorandum 2025-217, which authorized the exemption, was never posted to the municipal or Assembly websites. It did not include the property address, nor did it identify Fire Island as the applicant. It only listed only a parcel number deep in the consent agenda. The justification offered for the exemption was simply that the building was over 15 years old. There was no public hearing, no fiscal impact statement, and no scrutiny of the fact that the property owner and tenant are one and the same, undermining the core claim that the investment would not have been feasible without the tax break. The owners of the bakery are Democrats.
Even more troubling is that this is not the first such exemption granted to the same ownership. In 2021, the Assembly approved another tax exemption for Fire Island’s 7th and K Street building. That building was purchased and remodeled by the owners to house three tenants, including their own bakery. The owners argued in their application, which was obtained only through a public records request, that they needed a 12% return on investment, despite controlling both sides of the lease. That property (Parcel 001-053-19) is now fully exempt from taxation — again without any public scrutiny or debate.
The Fire Island exemptions are just the latest examples of a growing pattern of opaque, politically selective property tax breaks for for-profit developers and businesses in Anchorage, a system that is ripe for abuse.
Consider the massive commercial building at 601 W. 5th Avenue, a neon-lit landmark owned by the Fang/Chen family(Parcel 002-105-70). It received a 10-year tax exemption under Resolution AO 2023-91, an estimated $600,000 per year loss to city tax revenue. The owners hold nearly the entire block, and the exemption language allows them to apply the tax break to anything they build there in the future. According to the Anchorage Daily News, a $300 million project is now underway on that site, which could result in a $5.1 million annual tax savings for the developer for a decade.
The trend doesn’t stop there:
- A new hotel at 4th and C Street, backed by politically influential figures, received a 10-year exemption.
- SpanAlaska Trucking, a subsidiary of the $4.5 billion Manson Lines, built a $26 million warehouse and received a full property tax exemption.
- New $840,000 condos downtown are being advertised with a 12-year property tax exemption, boosting sales value while shifting the tax burden to other neighborhoods and other residents.
Many residents wrongly assume that when a property is exempted, the city simply collects less money. In fact, under Anchorage’s ad valorem tax system, the total amount of revenue stays the same, meaning everyone else pays more. Every exempted million-dollar property means higher tax rates for homes, small businesses, and commercial properties that are still on the rolls.
It’s like dining out with a group and someone walks out without paying their share, the rest of the table picks up the tab.
These exemptions are granted in closed-door meetings, and then often approved by Assembly resolution, rather than ordinance, which allows them to skip the requirement for public hearings. The Assessor’s Office is excluded from the decision-making and refuses to release details, citing confidentiality. The entire process is now handled by the Chief Financial Officer, a political appointee, and Assembly work sessions on the exemptions are not open to the public.
Though exemptions for seniors, veterans, and nonprofits are long-standing and well-understood, the new wave of exemptions for for-profit entities, often connected to influential donors or political insiders, raises serious concerns.
The Municipality of Anchorage is believed to be exempting over $20 billion in property value out of a $57 billion total tax roll. But there is no way for the public to know just how much is being exempted. It’s a ballpark figure that real estate analysts debate. While some of those exemptions might justified, the latest round of tax giveaways shows how ripe the system is for corruption.
If the big boys who all enjoy full exemptions…..Southcentral, ANHTC,Providence, Cook Inlet Housing, Base Housing, etc etc voluntarily paid in lieu of taxes for services received…police, fire, public works….the Muni budget issues would be over. Those exemptions are optional for charitable or community service. Let’s see some of that charity.
I firmly believe that if the Muni wants to give out Tax Exemptions…..start with Long-Time Family-Owned Businesses.
These are the people working the hardest for the American Dream and deserve a break, since the Muni thinks They Know Best!
The Realist in me says that a City like Anchorage, that already has the weight of taxes on Residents, should not be giving any allowances.
Are the owners and their connections to muni thieves known?
If so, hat needs to be made public.
Property exemptions for wealthy, politically connected individuals is not just wrong, it’s morally reprehensible.
This statement is wrong: “While some of those exemptions might justified…”. No exemptions should be justified.
Anchorage voters love voting for these people that are robbing them blind
Thank you for revealing the local insider corruption of the Demorats. Be it at the National level with Pelosi or in our own backyard. The back room dealings of the Demorats playbook is same. This stinks to highest levels. That said, do not expect anything to change.
Again, it proves that it is more important on who you know or if you were the favored former politician to get property tax exemptions in this Municipality. I can’t see them giving former mayor Bronson any exemptions – IF he was even considering them.
The criminals on the assembly are colluding to oppress the home owner in order to enrich a few business entities from which they are financially benefitting. Going through the property tax appraisal list, there are millions of dollars that are being forgiven under for profit company exemptions and “non profit” ownership. Meanwhile, the homeowner gets financially screwed out of their home due to ever escalating taxes and valuation increases.
They live by the old Chilkoot Charlie’s motto, “We cheat the other guy and pass the savings on to you.” Rome continues to burn and when it is a pile of ashes the feckless, self serving Dummycrats who caused the dumpster fire will move on to the next town that needs their “help”.
I have appeared before the Anchorage Assembly many times in the distant past to talk about this issue. Mayors and Assembly’s have long thought it was their political right to exempt themselves and friends from local taxes. I rarely go to Assembly meetings anymore. It is too disgusting to watch.
What the …………….?
If he owned a business not getting these sweetheart deals from the assembly, what would Trump do? Trump would likely combine lawsuits, political lobbying, public pressure, and strategic negotiations to secure equivalent or better tax breaks. Now that the kimono has been opened, if other business owners/developers that are not getting these tax breaks don’t sue the city….well they deserve to continue to be punked.
Follow the money: tax exemptions = political donations.
Would a class action lawsuit against the assembly solve this problem? Where is the equal protection?
This is crazy! My wife and I own Crumbl in Anchorage and this will create an unfair business advantage that Fire Island will have over other bakeries. We have to deal with nearly constant homeless problems at our Dimond location and the city gives us no support on this problem. We have homeless come into our store and pass out and the city does not care. We have given about $100,000 of food per year to Beans Cafe to support homeless and the city does not care. I guess we are not politically connected enough.
That sounds like another of those Anchorage Assembly deals of “you scratch my back and I’ll kiss your butt”.
So is every business in Anchorage that doesn’t enjoy a 12% ROI receive a ten year tax exemption?
I see a class action discrimination lawsuit if not!
This is very good reporting Suzanne. It would be exceptional reporting if you had not kept the name of the Democrat who got the special tax break secret.
Why aren’t you naming this schmuck??
Parcel #001-053-19 is connected to Grateful Bread LLC. This is a LLC that is owned by:
LEWANSKI AND FLEISCHMAN TRUST, JEROME E. LEWANSKI AND JANIS L. FLEISCHMAN, CO TRUSTEES (2/3rds)
And:
Rachel Pennington (1/3rd)
These people need to be named.
Corrupt indeed. Are we surprised? Not! Awesome sleuthing Suzanne. Now, if such info can be spread far and wide. The wool is sadly still firmly affixed over the eyes of too many voters.
I get tired of the whiners whining.
WOW, that is wrong. It’s in the same category as exempting churches. Which should be taxed but perhaps at 30 to 50%. especially when you see Anchorage Police on site making OT while guiding traffic!
Absolutely criminal. I hope this “connected” bakery enjoys the money they’re stealing from other businesses, anybody with any common sense will not set foot in their locations.
Seems ripe for a class-action lawsuit seeking a declaration that the exemptions are invalid on multiple grounds. Honorable financial institutions involved in these transactions and properties: Beware.
4th & C = Mark Begich
$840,000 condos downtown = Mayor Mystrom’s son
Who owns Span AK and Fireside Bakery? Inquiring minds want to know.
Can’t someone, or a group, paying full taxes sue the city over this?
What country am I in now? Nicaragua or South Sudan?
We simply pass those taxes along to our renters every year with rental increases.
See how that works?
And you wonder why it is hard to find inexpensive housing.
Goodness knows we are not going to live there. Anchorage? No way.