In 1925, the Methodist Episcopal Church opened the second Jesse Lee orphanage/school which averaged 50 to 100 children (possibly more) and 10 employees. The Jesse Lee Home was not a victim of child neglect or abuse. As a matter of fact, one of the students Benny Benson won a contest to design the Alaskan state flag in 1927.
However, it didn't escape a natural disaster. In 1964, it was hit by an unexpected earthquake, one of the worst in Alaska history. The home and school were hit hard. More than a dozen children were killed. Goode Hall, the largest Jesse Lee building, was heavily damaged and later demolished. With most of the buildings damaged beyond repair, the orphanage was moved again to Anchorage.
The remaining Seward building is believed to be haunted. Paranormal reports include giggles, sounds of children playing/skipping rope, footsteps, and spirit of a little boy about 3 years old wearing a dirty shirt is often seen.
The property has sat empty for many years but is currently owned by the City of Seward. However, there are attempts to raise money to restore and convert the remaining building in to a museum.
Seward Historic Preservation Commission - Jesse Lee Home For Children
True Hauntings of America - The Haunting of the Old Jesse Lee Home for Children