Borough: ski area on horizon

PALMER -- The Hatcher Pass ski area will take a step toward reality with the projected April completion of a comprehensive financial study that will help the Mat-Su Borough market the project to private developers and define the initial scope of the project.

That was the word from borough manager John Duffy and assistant manager Dave Germer during a public briefing held Friday, March 8.

"Economics Research Associates, the firm that is updating the financial feasibility analysis and completing a business model, has finished its first progress memorandum," Germer said in an interview Thursday. "One of the key points in the briefing was ERA's update of the market analysis done in 1995. They have found that the market has significantly improved since the last report was completed, and that a regionally based ski resort makes the best sense."

Germer added that the progress memorandum states that the size of the parking lot needs to expand, since it is acting as a constraint on the number of potential users.

According to Germer, completion of the study will provide the borough with a tool to achieve its goal of marketing the ski area project to prospective private-sector developers.

"The financial analysis, as well as the preliminary infrastructure work that we're doing now is all aimed at enhancing the marketability of the project to the private sector," he said.

That infrastructure work, according to Germer, includes a geotechnical analysis and identification of potable and snowmaking water supplies, soil analyses, and development of the design for an electrical intertie to the existing power grid.

Germer said part of the work has already been done. The soil analysis that will determine what kind of foundations are needed for buildings and roads, as well as location of septic systems, has been completed in the base area with no problems identified.

According to information on the borough's Web page, the borough has completed improvements to the ski lodge access road and placed a large amount of crushed rock in the proposed ski parking area.

The cost of this work was minimized because the borough was able to capitalize on a large quantity of excess crushed rock from the Alaska Department of Transportation's Hatcher Pass road construction project.

"Much of that rock resulted from a landslide during the road construction activities," Germer said. "As summer approaches we will be keeping a keen eye on the availability of more free gravel should the mountain continue to slough."

According to the borough's Web site, the borough gained ownership of approximately 4,000 acres of the prime ski terrain from the state's Department of Natural Resources in January 2001 as a part of the state of Alaska's municipal entitlement program.

The belief, as stated on the Web page, was that ownership and control by a sole governmental entity would simplify and expedite development of the ski area by the private sector.

According to previously published accounts, a Washington-based environmental nonprofit group filed a lawsuit against the state over the land transfer in February 2002.

Ron Swanson, borough community development director, said the Superior Court has not established a schedule for the lawsuit to proceed.

"Resolution of the case could be up to a year out," he said. "Until it is resolved, there will be an asterisk over the title, but we have full authority to manage the land and are working accordingly."

According to Germer, the next informational meeting on the Hatcher Pass ski area project is tentatively scheduled for noon, April 5, in the borough's first-floor conference room.

"We try to hold these lunch hour meetings from time to time to let anyone who is interested know what's going on with the ski area project and to solicit comments," Germer said.

The borough keeps the public informed about the ski area project and other economic development initiatives through the "Hot Topics" menu on the borough's Web site at: http://borough.co.mat-su.ak.us/.