Ski resort idea prompts questions

Who will be responsible for long-term operations of proposed $41-million development?

Oct. 16, 2005

JOEL DAVIDSON\Frontiersman reporter

MAT-SU - As discussions regarding the proposed Hatcher Pass regional ski area heat up, key questions about who will be responsible for the long-term operations of the proposed $41-million development remain unanswered.

On Tuesday, the Mat-Su Borough Assembly is expected to vote on whether to allow negotiations to begin in earnest with JL Properties' chief executive officer John Rubini in the company's quest to develop a ski, recreational, commercial and residential project in the Hatcher Pass area.

Assembly member Talis Colberg shares concerns with other borough officials and residents about who would run the downhill ski area and visitor center if the developers decided to opt out a few years down the road.

Under the proposed deal, JL Properties would develop and sell 450 residential lots over a 25-year period.

Other elements of the project include a nordic ski trail system with a stadium and chalet, a commercial village center and a downhill ski slope and visitor center.

The borough has tentatively agreed to contribute $10 million to the project.

But people are wondering what might happen if JL Properties develops the area, sells the high-priced homes and then chooses to move on rather than run the ski resort long term.

Colberg doesn't oppose developing the area, he just wants to make sure the borough isn't stuck running it down the road.

&#8221Ski resorts tend not to be moneymakers,“ Colberg said in a phone interview Friday. &#8221If in 20 years the borough ends up having to pay to run a ski resort at a loss, that would be a mistake.“

On Thursday night, borough assembly members held a work session to discuss their questions and concerns about the project. It is still undetermined how long J.L. Properties will agree to run the resort once the company finishes the project, but Colberg said the developers have assured the borough they are in it for the long haul.

Still, Colberg said it is difficult to know for sure.

&#8221It's never easy to know about these assurances,“ he said, adding that the developers provided a letter Thursday, saying they would be willing to turn over the downhill ski area to the borough for one dollar after seven years.

&#8221Why would they be willing to do that?“ Colberg said.

Borough Manager John Duffy said he's aware of Colberg's concerns.

&#8221If the borough takes title and Rubini decides to move on, then what happens?“ he said Thursday. &#8221I understand Talis' concern.“

On Friday, Mat-Su Borough community development director Ron Swanson spoke about the Hatcher Pass plans to about 70 people gathered in Wasilla for the Alaska Association of Conservation District's fall meeting.

&#8221There is a lot of concern that the developer will walk away once the development is complete,“ he told the audience. &#8221We do not want it dumped on us.“

Shortly after his talk, however, Swanson admitted that the borough might have to run the ski area sometime in the future.

&#8221Very traditionally on these things, after the developer has had enough, so to speak, after they've done their development and they are ready to move on to other stuff, ski areas get turned over to local governments or to a nonprofit,“ he told a reporter. &#8221So there has to be a way to set up so the non-profit can take it over so they have a fund to operate with.“

Swanson said Rubini assured the borough he plans to run the facility and construct developments over the long haul.

&#8221JL was very firm that they want to operate the ski resort,“ he said.

On Tuesday, the borough assembly will discuss the development again during its regular meeting in the borough assembly chambers. The public will be able to comment during the meeting, before the assembly votes on whether to proceed with negotiations.

If the assembly does vote to allow negotiations to proceed, Duffy said final contractual agreement would then need to be approved by the assembly after another public-comment period.

Contact Joel Davidson at 352-2266, or joel.davidson@

frontiersman.com.