What you need to know:

• Work on the new Palmer Public Library remains on hold due to continuing negotiations over an insurance payout for the damaged building.
• The original 12,000-square-foot building is slated to be replaced with a new 20,000-square-foot, two-story facility, but demolition and construction have been delayed.
• The library shut down in early 2023 after its roof collapsed under heavy snow, leading to extensive structural and water damage. Incoming City Manager Kolby Hickel Zerkel will oversee final decisions on the library project which is expected to cost about $16 million.

PALMER - A months-long pause for work on the new Palmer Public Library building remains without a definitive end date as officials continue to negotiate a final insurance payout for the destroyed structure, the city's interim manager said this week.

The library closed in early 2023 after the roof partially collapsed under a heavy snow load. Water and structural damage caused by the collapse rendered the building unusable, officials said.

The one-story, 12,000-square-foot structure is slated for demolition, with a newly constructed two-story, 20,000-square-foot building to take its place. The library is currently operating out of a temporary space on Arctic Ave.

But progress on the project stalled last fall as the city council continued to debate construction plans and project financing. A plan to demolish the building in October was put on hold following the resignation of former City Manager Stephen Jellie and because the council wanted more information on whether to salvage part of the current structure.

Now the project faces continued delays as the city works to negotiate a settlement with Alaska Public Entity Insurance, which provides the city's insurance policy for the building, interim City Manager John Diumenti said in an interview Wednesday.

That settlement is the subject of ongoing closed-door city council meetings, with current work between the city and adjusters focused on submitting invoices and receipts for covered items — much like a homeowner would do for household goods claimed after a loss, Diumenti said.

Diumenti said he hopes discussions on a final settlement can begin soon. That's a step that would allow the city to move toward construction and could bring in as much as $5 million, according to information released by city officials in 2023.

“There’s no action, and it sucks, and we agree,” he said. “I would like to see this move forward a little quicker than it has been. But in order to do it correctly, we need to take the time to do it right.”

Diumenti said he will not be involved in any final decisions about building demolition or the next steps for the project. That task will fall to the city's new permanent manager, Kolby Hickel Zerkel, who is expected to start at the end of the month. Diumenti will return to his previous role as manager of the city's municipal airport.

Construction of the new building is expected to cost about $16 million and will be paid for through a combination of funding that includes grants, donations, bonds and the insurance payout.

Cuts to the federal Institute of Museum and Library Services ordered last month by President Donald Trump are not expected to affect funding for the library building, said Prudence McKinney, president of Friends of the Palmer Public Library, which is helping raise money for the project.

-- Contact Amy Bushatz at contact@matsusentinel.com