$6.2 million parks bond proposed

MAT-SU -- Calling it a boon to the local economy, Mat-Su Borough Assembly member Jim Colver recently introduced a $6.2 million parks and recreation bond package he's hoping will be find its way to the November ballot.

The assembly will decide this evening if they want to set a public hearing for the bond package on Aug. 6. That is the last round of public hearings available for measures to be on the October ballot.

The bond package includes $4 million to fund Hatcher Pass improvements, but Colver said that funding hinges on private participation.

The way the bond package is set up, the bonds to fund Hatcher Pass improvements would only be able to be sold after a private sector firm has come on board to build and operate the proposed ski area. Colver said the $4 million figure was reached after a recent financial feasibility study found approximately $4 million in infrastructure -- investments in wastewater, sewer, roads and parking lots -- are needed to give a private-sector firm an acceptable rate of return on the development costs of the ski area.

"Putting this bond to a vote will give our residents the opportunity to voice their support for a ski area at Hatcher Pass," Colver said. "This is an important step toward making a ski area finally become a reality, providing jobs and recreation for borough residents. I see this as the beginning of developing a first class, world-renowned ski area -- after all, places like Whistler and Vail began as regional ski areas."

The bond package includes $1 million in matching money for construction of an indoor ice rink and multi-use facility in Palmer, available for use by all borough residents. According to the structure of the bond package, the city would be responsible for providing matching funds and funding to operate and maintain the rink.

Palmer Mayor Jim Cooper said the bond money would be matched by $1 million, either in infrastructure improvements such as designating land and excavating or in cash.

The project, Cooper said, has been one the Palmer city council has been working on for some time. At last week's council meeting, the council passed a measure to undergo a formal study of what would be needed to build and maintain an ice arena.

"We've authorized $15,000 for the city manager to go out and get a contract for someone to firm up some figures for us," Cooper said.

Cooper said although the council's movement on the project follows the city of Wasilla's passage of a sales tax to construct a large multi-use facility, the two projects have different scopes. The Palmer council's primary interest lies in obtaining a covered ice sheet for use by those who live on the east side of the core area. Expansion beyond that, he said, will likely come in phases.

"The advantage with us is, we can go in with as little as $500,000 and … get a building down with ice," Cooper said, "or we can go up to an ice arena that's similar to the Brett … The advantage, again, of this building is that it can be phased."

And the first phase, Cooper said, is likely to cost between $2.8 and $3 million, and would likely just involve a building, a sheet of ice, and maintenance equipment.

The agreement between the city and borough would be somewhat unique, and to that end, borough finance director Tammy Clayton cleared the details of the bond with borough bond counsel, Thomas Klinkner of Birch, Horton, Bittner and Cherot. In a June 13 letter, Klinkner wrote that the borough could finance the project, as long as it retained an ownership interest in the project proportionate to its financial contribution. He suggested the borough also retain sufficient control over the management and operation of the project to assure that its use will be restricted to public recreational purposes and available to all borough residents.

A third facet of the bond includes $1 million for the acquisition, construction and dedication of trails that cross much of the northern and western portions of the borough. Many trails that have historically been used by mushers, snowmachiners, hikers, skiers and off-road users in the borough are owned by a variety of owners -- borough, state, Bureau of Land Management, mental health trust and private owners, to name a few. The rights of way for many oft-used trails in the Big Lake, Willow and Houston areas have not been secured, and Colver said the funding would help dedicate these rights of way. As long as the rights of way are not dedicated, allowing people to cross the property is up to the landowner.

"We've had some really positive response to the trail work we've done over there," Colver said. "And that's where most of the trails are that we're in danger of losing."

Steve Charles, the chair of the Willow Trail Committee, said trail dedication is one of their greatest concerns. He guessed there are 100 miles of trails in the Willow area alone that are heavily used, but are not dedicated for trail use.

"I think that's what the intent is, to try to get that first step started -- especially with the growth of the Valley," Charles said. "It sounds great to me."

The remaining $200,000, Colver said, would go toward bond issuance costs. That amount is conservative, he said, and allows for the $4 million in Hatcher Pass bonds and the $2 million in bonds for trails and the Palmer ice rink to be sold separately.

Colver said he hoped the three projects involved in the bond package made it appealing to a broad scope of borough residents -- and to his fellow assembly members.

"Hopefully it's fair enough to other areas of the borough that we'll support each other," Colver said.

Although the package comes on the heels of a more than $4 million parks and recreation bond package approved by voters two years ago, Colver isn't worried.

"I think I was more encouraged by the strength of support for the measure," Colver said. "As we grow, people want recreational opportunities and facilities here in the Valley. Driving to Anchorage for everything is not the answer -- we're investing in our own communities."

If the measure is approved, the average property owner in the borough owns $130,000 in land and property, according to borough estimates, so the bond package would cost about $18 to the average property owner each year over the course of the bond package's 20-year issuance period.