New Hatcher plan needs $24.8 million

PALMER — What would it take to build a ski area at Hatcher Pass?

Ron Swanson, formerly the Mat-Su Borough’s community development director and now a consultant working on the Hatcher Pass ski area, came to the Borough Assembly Tuesday with an outline for a three-phase, $24.8 million plan to get a ski area up and running.

Swanson was last before the assembly in March, at which time he was asked to come back with a plan like the one he had Tuesday — scaled back, but practical enough to attract visitors and a potential buyer.

Dave Hanson, the Borough’s economic development director, ran down some numbers for the assembly. Subtracting the $6 million in federal funds the Borough has in hand for the project and doing other financial math, Hanson said any one of the following taxes could pay for a ski area:

• A hike of the bed tax to 6 or 7 percent.

• A .2 percent sales tax.

• A liquor tax between 6 and 7 percent.

• A 35 cents per ton tax on natural resource extraction.

Any of these could cover the costs to build a ski area, Swanson said, adding that the goal after building is to have a ski area that pays for itself as quickly as possible.

After the start-up phase, Swanson said operating costs would likely run at a $200,000 loss the first year, but be running in the black the next year, likely bringing in $189,000 with revenue expected to grow after that.

According to the newest plan, the first phase would put in an alpine ski area with two lifts and a day lodge. On the Nordic side there would be 10 miles of family trails and 10 miles of competitive trails as well as a road to the area. Phase two would install a third lift and a mid-mountain chalet on the alpine side. On the Nordic side there would be 10 more miles of trail, a day lodge and a sledding hill. Phase three would change one of the lifts on the Nordic side to a high speed lift. On the Nordic side there would be night lighting and a biathlon range.

The assembly didn’t make any decisions on the plan and set up a Sept. 18 work session to go over the plan in detail.

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