Borough mulls economic corp.

PALMER — There’s a hiccup in a plan to incorporate the Mat-Su Borough’s Economic Development Department into its own private corporation.

Mat-Su Borough Attorney Nick Spiropoulos says that, as a second-class borough, the Mat-Su lacks authority to incorporate.

“Private people would really have to step up,” Spiropoulos told the assembly at its Nov. 5 meeting about breaking out the borough’s economic development department into a separate corporate entity.

The idea to create the corporation was proposed by Assemblyman Steve Colligan. He supported the department’s $1 million budget request, but he said he would like to see some of the funding for its operation come from the private sector.

Colligan said that as an economic development corporation, the agency could accept contributions from the private sector toward its operation. It would also be in private industry’s interests to contribute since the corporation would gather data that could benefit the private sector.

Colligan said the model has worked elsewhere in Alaska, particularly in larger cities and boroughs.

“It’s not just Anchorage,” Colligan said. “It’s Fairbanks, Juneau, Anchorage and Kenai that are all under the same model.”

Although the notion of the borough forming its own corporation was flagged as beyond its powers, the idea seemed to have support from the rest of the assembly.

“I think they’re a terrific idea,” Assemblyman Jim Sykes said. “What they’re doing in Anchorage is just astounding. They have some really expert people just facilitating business.”

Sykes said that he would like to weigh the options, whether it’s something the borough funds or if it’s something the borough helps set up, but then lets the private sector take the reins.

“We can’t really do what needs to be done on our nickel here,” Assemblyman Jim Colver said.

Mat-Su Borough Manager John Moosey said he’d like to see what kind of interest there is in the business community for the idea.

“I think that’s the real key, is there going to be more money for economic development or is this just another vehicle to do the things we’re doing now?” Moosey said. “That’ll be one of the more interesting things to find out is where is our business community on this.”

Contact Andrew Wellner at 352-2270 or andrew.wellner@frontiersman.com.