AIDEA executives discuss $350 million West Susitna access project with assembly

PALMER — The Alaska Industrial Development and Export Authority presented their communications plan and preliminary engineering report on the 100-mile road that would provide access to the West Susitna. Out of the four members of the public that presented public testimony in person or telephonically, all were opposed to the West Susitna access project.

Borough public works predesign and engineering manager Brad Sworts presented background on the project prior to AIDEA staff presentation. Sworts noted the 123 year history of studies in the West Susitna, dating back to a United States Geological study in 1898 followed by the USGS and U.S. Army in 1899, 1901 and in 1911 in the same year that the Alaska Road Commission studied the route west to the Kuskokwim River that would become the Iditarod Trail. Sworts presented to the Assembly that the borough had entered into a memorandum of agreement in 2019 with the possibility of developing an access project. After phase 1 was completed and reported to the Assembly in June of 2020, the borough entered into a second MOA with AIDEA for phase 2 to gather public input, engineering, wetland and other mapping data. AIDEA Senior Manager of Project Finance and Asset Management Jesse Peterson presented sparse details on the wetland mapping and engineering reports presented to the Assembly. Peterson noted that there had been five opportunities for public comment and said that the project had been received well, contrary to what many members of the public had detailed. Peterson detailed that the 100-mile road project called for 156 stream crossings, 145 of which would receive culverts and 90 of those which would be designed for fish passage. The road would require 11 bridges, four of which Peterson described as complex major structures.

“ We came up with an opinion and probable cost of $350 million for this 100 mile road and its important to note at this early stage that there’s a pretty healthy contingency on that amount and as we refine the engineering and refine the project and step through the phases, those numbers will likely come down,” said Peterson.

Assemblywoman Stephanie Nowers questioned Peterson about the cost benefit analysis done to ensure the road would be profitable and asked about what government entity would be responsible for maintaining the road, which went unanswered. Nowers was wary of timber sales, noting that the borough has not been successful with timber in recent years.

“This next phase is really going to be everything we that need to do to get this to a point to where we could potentially submit for an Army Corps of Engineers permit through the Federal Government, and so this next phase will be significantly more robust and we’ll be able to kind of build on work that we’ve done to date and really refine some of the data we’ve collected and another pretty significant component we didn’t pick up in phase 2 that we’re going to in phase 3 is going to be the cultural and historical resource analysis that has to be done, and that’s a pretty important to understand, reroute the road to miss some significant archaeological sites and so we’ll have a better handle on those costs and with refinement of the engineering and a little bit better understanding of the impacts we should be able to come up with a better answer and really address that if this road is going to be economically viable or not,” said Peterson.

Petersen said that the presentation of a Memorandum of Understanding between AIDEA and the borough would be presented in six to eight weeks. AIDEA Executive Director Alan Weitzner was called upon to answer questions about funding of the project.

“I really do want to emphasize this is a very early preliminary cost that we’re talking about and we do believe there’s going to be contraction on the amount of cost per mile on the road project, but the ultimate funding is going to be raised by AIDEA and ultimately bringing in private capital to the project,” said Weitzner. “With the access that we’re talking about with the road itself, we’re talking about engaging and getting access to a mining district that has other resources that would then be brought to Port Mackenzie. These access projects that we’re talking about that AIDEA is looking at pursuing like the Ambler access project, like the West Su project is looking to diversify Alaska’s economy to be able to look at and generate more volume to where it’s existing infrastructure, the state’s existing infrastructure can have higher utilization and broader utilization. So if we’re able to pursue and we’re successful in the further development of the Ambler access project, if with your support we’re able to pursue the West Susitna access project, there we’re talking about talking about volumes that enhance existing infrastructure, utilize that port facility.”

Borough Mayor Vern Halter remained skeptical about the proposed project. Halter asked about the existing port rail extension project that was funded with $180 and needed an additional $120 to complete.

“There are 11 bridges, four complex bridges and then you’ve got crossing the Big Su. There’s only one bridge I’m interested in and that’s Port Mackenzie across the Knik Arm bridge. I mean to me that is the future of the Mat-Su Borough and I appreciate this and all this, we’ve got an underfunded railroad spur line that was started and not finished and now all of a sudden we’re going to start this 100 miles and I’m just not sure I’m convinced that it’s going to produce what you’re saying it’s going to produce. The cost of the money up front plus the private partnerships, I just have trouble with that especially with these projects that are not finished,” said Halter. “I am just burned out with these projects that don’t seem like they really benefit the Mat-Su borough and I love the fact that it could happen, but it doesn’t seem like it happens with these projects. So you’re lucky I’m gone in November.”

Weitzner thanked Halter for his skepticism, noting that projects that are funded even partially by AIDEA should benefit the local Alaskan economy.

“Right now on this initial phase, again pre feasibility before we really get into this final feasibility element, there’s no agreement on it. We’re each working together to advance the studies to get it to a point in time that there is a fully supported road, issues addressed on the environmental side to where we’re able to make an application to the Federal entities that need to review the environmental permitting,” said Weitzner. “Then at that point in time decide really what the capital is necessary to go forward and develop the road.”