New plan for Hatcher Pass

MAT-SU -- A new plan is underway for the borough-owned portion of Hatcher Pass -- one to determine how the land available for residential development could be subdivided, and how much money that use may generate.

It's just one of several areas that will be studied by JL Properties, the developer that was selected by the Mat-Su Borough Assembly to move forward on developing and operating a ski facility at Hatcher Pass.

"Sitting before you today, we don't actually know if there's enough value in the community development to subsidize the alpine development," John Rubini, part-owner of JL Properties, told borough assembly members at a meeting Tuesday afternoon.

JL Properties and the Mat-Su Borough are splitting the $100,000 cost of the plan. When the process is finished, Rubini said, not only will his company and the team of contractors who have signed on to the project better know the financial feasibility of the project, they'll also have plans in hand to divide the residential development area into building lots, open spaces and Nordic trails.

"If we study it and we don't think there's a deal in here that fits our end … you'll get whatever work is produced within this $100,000 pot of shared money," Rubini said.

The plan wasn't accepted by all assembly members. When the topic was brought up during the assembly meeting that evening, Assembly Member Talis Colberg said the development proposal had been studied enough.

"The idea was that the proposal would be a proposal, not a proposal to study the proposal," Colberg said. "I can't see putting more borough money into this without getting to the end proposal."

Colberg has used his votes in the past to demonstrate his dissatisfaction with spending borough funds on what he has said appears to be borough construction of a ski area. The borough shouldn't be in the business of building a ski area, he has said -- that's the role of a private developer.

Assembly Member Jody Simpson said she shared Colberg's concerns, but saw value in making sure the residential development was closely integrated with the Nordic ski trails proposed for development, allowing residents ski-in, ski-out access.

"I do want to make sure we're not compounding one plan on top of another," Simpson said.

Rubini said had it not been for the borough's investment -- extending power to the area, studying the water depth and sewer capacity of the land in the area -- JL Properties would likely not have submitted a proposal for development of the property.

"There's a lot of things the borough has done to make this a project that's approaching viability," Rubini said after the presentation. "But is it viable to develop? We don't know. That's what needs to be evaluated."

Rubini said construction of trails and lifts for the alpine area, with snowmaking equipment, could tally up to between $8.5 and $9 million. That's not including the cost of building a day lodge.

"It's doing it right for what it is," said Leonard Hyde, a partner in JL Properties. "It's a money-making proposition -- if you don't do it right, it's not going to attract skiers."

The borough assembly, during its evening meeting, approved action to allow Borough Manager John Duffy to enter into a cost-sharing agreement with JL Properties. The measure was approved by four votes, with Colberg and Assembly Member Bruce Bush voting against it. Rubini said their goal is to have the study complete in two to three months, at which time they'll know whether the project is economically feasible.

"We'll have a very good idea of what the infrastructure costs associated will be," Rubini said. "And we'll know if we can make it work."

Contact Rindi White at rindi.white@frontiersman.com.