Hatcher Pass ski area closer to reality

Sept. 16, 2005

DARRELL L. BREESE\Frontiersman reporter

PALMER - There's gold in them there hills - or, to be more precise, plans for a $41-million ski resort complex that might finally turn Hatcher Pass into an economic engine for the Mat-Su.

John Rubini, chief executive officer of JL Properties, an Anchorage-based developing company, told the Mat-Su Borough Assembly during a work session Tuesday that he and his partner, Leonard Hyde, plan to build a ski area down the road from Independence Mine and across from the Little Susitna River.

"We think we have a road map to make this a reality," said Rubini, an Anchorage developer with a past business tie to U.S. Sen. Ted Stevens, R-Alaska. "The combination alpine and Nordic ski areas mixed with a residential development makes the project feasible. We're close to having the financing in place, we just need some other folks to give us the blessing to go forward."

All that is needed now for JL Properties to advance to the next phase is approval from the assembly, since the development will take place on borough land and involve the commitment of nearly $10 million from the borough. If the Assembly decides Tuesday to support the plan, JL Properties will start talking with Alaska Industrial Development and Export Authority officials about terms for securing a $15-million loan backed by AIDEA and a $9-million bank loan, with which AIDEA will participate.

Assembly member Jim Colver, who represents the area where the development will occur, says after years of study and three aborted tries, the borough has found a developer to turn the area into a long-sought-after ski resort.

"After 20 years, we finally have a way to make it happen," Colver said.

The project will include a residential area, with room for 450 homes, near the ski slope. Commercial development will take place, and cross-country ski trails will wind throughout the community.

Rubini says this is a far more ambitious plan than those undertaken by his company in the past. Recent projects completed by the company include the Arctic Slope Regional Corp. building in Anchorage and military housing on Elmendorf Air Force Base.

"We want to create something different, unique and special," Rubini said of the project, "so there will be substantial control over design in both the residential and commercial areas. The idea is to develop a small-village feel around the ski areas."

When completed, nearly 3,000 acres of borough land will be converted into a small resort community, including an alpine ski area, Olympic-class Nordic ski trails, a day lodge and a quad chair lift. Nearly 65 percent of the total area will be designated for open space and recreational use.

For all of this, the borough will make land available for sale to residential development and an investment of nearly a quarter of the total cost.

Colver said that he hopes the $10 million needed from the borough will come in the form of federal and state grants to pay for the day lodge, Nordic trail and a bridge over the Little Susitna River.

"The borough has already invested about a million dollars in running electricity up to the alpine area," Colver said of the borough's financial input to date. "We analyzed the soils on borough land to ensure that they'd be adequate for housing and have received a $4 million grant for the Nordic trails."

In the midst of all the excitement, some members of the assembly voiced concerns about the development and future operation of the project.

Assembly members Jody Simpson and Talis Colberg both said they want to ensure that development of the ski area won't result in the borough being forced to take control of the ski area in the future.

"We're not signing on to operate an alpine ski facility at a loss," Rubini reassured the assembly. "We are investing in the future of the project along with the borough."

Assembly member Betty Vehrs expressed concern about water and sewer issues related to the development near the Little Susitna River.

"There are still some parts of the plan that need some work," Vehrs said, "but none of them appear to be deal-breakers to me."

Vehrs wondered why the residential development would not be connected to the sewer-treatment facility planned for the 20-acre commercial development.

"I just want to ask why they can't be connected? It doesn't make sense to me." Vehrs said.

According to Rubini, there's still some work to do with the plan and more financial detailing necessary before the project happens. But assembly approval would help the plans move forward.

"Our financing is contingent on the borough's approval of work done to this point," Rubini said. "We are looking for a sign from the borough that it is on board and that we are going in the right direction."

Colver said the assembly will consider an advisory vote on the proposal during its meeting Tuesday.

Rubini said the borough would begin to see a return on its investment when the first residential site is sold. He predicted that by the year 2023, the borough could expect more than $30 million in revenue from property taxes and profit sharing from the development.

The alpine facilities and village area should be complete by fall 2007, according to a timeline for the project produced by JL Properties, barring any unforeseen obstacles.

Contact Darrell L. Breese at

352-2267 or darrell.breese@

frontiersman.com.