On a split 6-to-5 vote, the Anchorage Assembly decided Tuesday night to go ahead with the sale of the John Thomas building.
The city-owned building at 325 East Third Avenue now houses a number of non profit organizations.
Mayor Dan Sullivan proposed selling the building because he said it is costing the city about $80-thousand a year for utilities and upkeep.
Mayor Sullivan said it's also a question of being fair to other non-profits who cannot use the building.
Before the vote, the mayor said "there are hundreds and hundreds and hundreds of non-profits in town providing outstanding service that would love to have the opportunity have 25-cent per square foot rent. We just cannot figure out a way to fairly use the municipal asset in a fair and equitable manner."
But members of the assembly who opposed of the sale said the non-profits provide valuable services.
Assembly member Paul Honeman tried without success to convince the assembly to indefinitely delay the proposal to sell the building.
Honeman said "I believe it’s our responsibility to look at municipal holdings as the assembly body to determine the use of its holdings...and I certainly believe this was determined many years ago to be the best use of this property."
Mayor Sullivan told assembly members before the vote that city is willing to give the organizations six months notice and financial assistance to help them relocate.