A&W Wholesale building

Interior Gas Utility is buying the A&W Wholesale building at 2525 Phillips Field Road. 

The publicly-owned Interior Gas Utility raised the budget for remodeling its new headquarters along Peger Road from $300,000 to $465,000, according to a resolution unanimously approved by the board of directors.

A contractor has been hired to perform the work, and move-in is expected by Aug. 31, General Manager Dan Britton told the directors at a June meeting.

The utility purchased the A&W Wholesale building at 2525 Phillips Field Road for about $2 million. The real estate deal closed on June 1, according to meeting minutes.

The work being performed on the building includes installing new gas-fired boilers, seven new offices, new cubicles, a board room, an information technology room, new carpeting, new warehouse lighting and electrical work, according to a revised renovation budget.

The $465,000 allocation will also cover move-in expenses and code compliance, such as water fountains and additional railing on stairs to the second floor.

Two companies bid on the remodeling project, which was awarded to Alcan Builders Inc., according to meeting minutes.

The location at 3408 International St., which is leased, has reportedly reached maximum capacity. The larger facility is needed to accommodate the growing utility, which is adding customers and employees.

The IGU is financing the new building. Overall, the utility carries debt of over $150 million. Most of that money is owed to the state-owned Alaska Industrial Development and Export Authority. Payments would start in 2033 at the earliest.

Contact staff writer Amanda Bohman at 459-7545 or follow her at twitter.com/FDNMborough.

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