ANCHORAGE, Alaska (AP) — The Anchorage Community Development Authority has announced an agreement to purchase the JCPenney parking garage and JCPenney’s majority ownership of the former Nordstrom building.

The organization said its board of directors approved the investment in the downtown properties in an attempt to guide the area’s future, Alaska Public Media reported Tuesday.

Under the terms of the agreement, the development authority will pay $1.7 million for the parking garage and $1.5 million for an 80% stake in the Nordstrom building.

Nordstrom closed its downtown Anchorage store in 2019.

“These historic acquisitions will provide the opportunity to redevelop two iconic city blocks in the heart of downtown and set the table for the next 50 years of growth,” development authority Executive Director Andrew Halcro said in the authority’s statement.

He added: “While downtown has endured an ongoing recession for the last five years due to the drop in oil prices, state budget cuts and a pandemic, these acquisitions will give ACDA valuable development pieces to reshape downtown once the local economy recovers in the next three years.”

Terry Parks, the authority board’s chair, said in the statement that the purchases were representative of the agency’s purpose.

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“Our primary goal after acquisition is to collaborate with private developers and create an exciting private public partnership on these two sites,” Parks said.

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