Council defends downtown property purchases after tests show non‑friable asbestos, localized mold

The Yukon City Council on June 30 answered questions about two recently purchased downtown properties on South Holly Avenue after environmental testing turned up non‑friable asbestos in floor materials and isolated mold concerns.

Council members and resident reviewers said they learned of the environmental reports very near the time of closing and pressed city staff for a clear remediation plan. Several speakers argued the council should have delayed closing until the reports were publicly vetted.

City staff and the seller described remedial steps taken prior to closing. City staff reported the seller addressed an HVAC issue at the smaller building before transfer and that staff are undertaking a targeted remediation and deep clean for the mold‑positive areas. City environmental coordinator Nick Rice told the council, “We’re in the middle of getting the filters and everything else and getting all that addressed,” and said the apparent mold issues are being tackled with cleaning and HVAC filter work rather than demolition.

On asbestos, the reports describe non‑friable asbestos-containing material (floor tile/grout) that is not expected to release fibers if left undisturbed; council members and outside commenters noted that non‑friable materials are routinely managed through containment and work‑practice controls and that friable asbestos — which creates airborne hazard when disturbed — would be a larger concern. Several speakers urged caution about any future renovations that would disturb suspect building materials and asked for clear plans and cost estimates for remediation if disruption is required.

Council member questions focused on process: why inspections and reports were not widely distributed before the final steps, why closing occurred quickly after the reports became available, and what the city’s financial exposure would be if extensive remediation is required. City Manager Jeff Deckard and staff said the council had previously authorized staff to complete due diligence and to close under the authority delegated by past votes; they said they would provide the environmental reports and remediation plans to the council and to the extent permitted by law, to the public.

What staff said they will do next: staff have a phased occupancy plan tied to existing tenant leases, are completing deep‑clean and HVAC filtration work recommended in the mold reports, and will evaluate any further remediation required for asbestos prior to any construction work that would disturb floor materials. The seller told staff it completed certain HVAC repairs prior to closing.

The council did not reverse the purchases at the meeting. Members emphasized the need for improved document sharing and earlier notice of environmental results, with at least one council member describing the purchase as a mistake and urging better internal communication going forward.