Alaska Indian Arts paid its overdue property tax bill last month after Haines Borough Manager Annette Kreitzer withdrew from negotiations with the nonprofit in late July.

AIA had been negotiating with Kreitzer for the borough to take ownership of the Fort Seward Parade Grounds in exchange for forgiving AIA’s $39,472.93 property tax bill. In late July, Kreitzer told the borough assembly she decided to end discussions due to lack of assembly interest and some public opposition to subdividing the land, which contained a small commercial parcel within the Parade Grounds.

In a letter to AIA president Lee Heinmiller, Kreitzer informed him that the borough’s attorney advised staff to initiate foreclosure proceedings on the property.

Chilkoot Indian Association is in negotiations with AIA for the land, according to a tribal representative.

Heinmiller could not be reached for comment.

AIA approached the borough last year about transferring the land as an alternative to paying back taxes. But members of the Gregg family, longtime Fort landowners who were also on the Port Chilkoot Company board, voiced opposition to subdividing the property, citing concerns about maintaining its historic preservation status. Heinmiller is also the president of the Port Chilkoot Company and he and his family own the majority of the company’s shares.

Tensions over the Parade Grounds reached a high in May when some Port Chilkoot Company board members opposed to subdividing the land were voted off by majority shareholders.

The board shrank from nine members to five, and the family of Heinmiller took over a majority share of seats on the board.