Knik bridge inches $200m closer to fruition

December 20, 2005

DAWN DE BUSK\Frontiersman reporter

WASILLA - The Knik Arm Bridge and Toll Authority members received word from the governor last week that they would be getting just under $200 million to start erecting a bridge over Knik Arm.

KABATA members met at the Wasilla Multi-Use Sports Complex on Thursday had hoped to hear that they would receive one-third of the estimated $400-$600 milion needed to build the bridge. Gov. Frank Murkowski revealed later that day that $93.6 million in federal money is designated for the crossing and that another $96 million would be coming from the state.

That amount will give KABATA some direction as to how many dollars it must drum up this summer once certain tasks like the environmental impact statement have been completed, KABATA executive director Henry Springer said.

KABATA officials had expected the entire $200 million to come from federal sources, but federal lawmakers wrangling with the budget over the last several months shifted $400 million specified for the Knik Arm Crossing and the Gravina Island Bridge near Ketchikan into a statewide transportation improvement program fund.

Kathy Wells, from Friends of Mat-Su, attended the meeting with concerns that money for the crossing will take away from completing infrastructure improvements like the Wasilla overpass.

&#8220It seemed to me that [KABATA] were hit upside the head with the funding issue. They were totally confused by Murkowski's announcement. Just because that amount was allocated doesn't mean it's going to happen,” Wells said.

KABATA now has to match 20 percent of the state's $96 million contribution.

One of the traditionally accepted options for obtaining money is to garner revenue bonds. A Federal Highway Administration program called the Transportation Infrastructure and Finance and Innovation Act offers a no pre-payment premium and allows borrowers to refinance later.

Springer said he has been attending conferences on Global 3-Ps, partnerships that allow private institutions to pump money into public facilities, and urged that the board explore ways to fund projects other than relying almost solely on state and federal funding.

The KABATA board of directors, at that Thursday meeting, voted to appoint members Darcie Salmon and Dave Haugen to the audit committee to work with finance advisor Kevin Hemenway, who was hired by KABATA.

&#8220As the financing aspect has become clear, it has become more clear that for start-up operations we want the state statutes to help KABATA issue revenue bonds. We will need to amend statutes to make clear how KABATA can go about financing this project,” Bill Greene, project counselor, said.

KABATA board members voted to create a committee to write proposed amendments and maintain a presence when state lawmakers reconvene in mid-January.

&#8220We will be heavily involved in the legislative session,” Greene said.

Wells said KABATA's aggressive lobbying plans worry her.

&#8220The fact that they want to change an Alaska state statute sends up a red warning flag,” she said.

Still, KABATA is plugging away toward achieving its goal.

&#8220We've been going hodgety-podgety for the past three months, and we're still on budget. But obviously, none of this is going to happen without more money,” Springer said, adding that $2 million has been spent on beluga studies.

KABATA employees and board members also skimmed over revenue forecasts for a toll based on $3 per vehicle and $2.40, a 20-percent discount from the regular toll, for people with toll cards that are placed in vehicle windshields and are read electronically as traffic passes by. Every decade, the toll would increase by $1 for inflation, Springer said.

According to Wilbur Smith Associates, an independent economic planner whose work is recognized by lending institutions, in 2016 the tolls could generate $75,000, and by 2026, revenue from the tolls could generate $150,000.

&#8220This has the potential to add $200 million (in 2032) to the state's budget,” KABATA chair George Wuerch said.

Sen. Lyda Green, R-Mat-Su, co-chairs the Senate Finance Committee. Whatever monetary amount the governor allots for the crossing is simply a guideline for legislators, and she plans to make sure the project is properly funded because the toll bridge will be a money-maker, she said.

&#8220This is a unique project, a money-maker,” Green said.

Contact Dawn De Busk at

352-2252 or dawn.debusk@

frontiersman.com.