Spectrum

Hatcher Pass Ski Resort: Take 325.

The Hatcher Pass Ski Resort has long been the Holy Grail of the Mat-Su Borough. For over 20 years, private developers and Borough officials have tried to force this uneconomic idea onto the community.

Mitsui first tried to build a resort in 1986. Davis Contructors attempted it in the 1990s; J.L. Property presided over the latest failed endeavor.

J.L.’s proposal was particularly onerous in that it tied the ski resort to the building of scores of single housing complexes, a shopping center, and a resort — all jammed against the Little Susitna (water drainage issues were off the charts). Sensing public opposition to its mini-city, JL pulled out of the entire project.

Why did J.L. pull out of both the housing development and the ski resort? Why not just build a downhill ski resort?

The answer? Economics.

Downhill ski resorts are not moneymakers. Ski resorts are almost always built in tandem with large real estate sales, involving hundreds of property complexes, a mall, and a golf course or two. The millions of dollars made from the real estate sale offset the revenue loss that inevitably occurs on a downhill ski resort.

Project coordinator Ron Swanson contends that a Borough-funded Hatcher Pass ski resort will overcome the historical odds; that it will fund itself. Swanson believes that a Hatcher Pass ski resort will gross a little less than $1.5 million during its first year of operation, and nearly $3 million during the second year.

That’s a 100 percent increase. And the evidence to support this hypothesis? None. It’s a guess — with your money.

In order to support the Borough-funded Hatcher Pass downhill ski resort, Swanson brought Kirk Duncan to share his knowledge with the Borough. Duncan is the general manager of Juneau’s Eaglecrest Ski Resort, a ski resort that is owned and run by the city of Juneau.

I did a little research about Eaglecrest. After all, if the Mat-Su Borough wants to fund a ski resort, it would be nice to see the successes of other government-run ski resorts.

The conclusion? Not good.

Eaglecrest continually runs in the red. In 2005, expenditures beat revenues by $552,367. In 2006, the deficiency grew to $706,115. In 2007, Eaglecrest spent $578,253 more than it earned.

Juneau has to subsidize Eaglecrest from its general fund. In 2007 alone, Juneau funded Eaglecrest with $575,000 from its general fund, and another $25,000 from a sales tax.

And this is in a town with only one ski option. They don’t have Alyeska, 16 Mile, or April Bowl to fall back on.

The Borough, of course, is worried about the financial instability of the ski resort. So, they are counting on selling property on Government Peak to offset the losses of a downhill ski resort. To achieve this mass property sale, Borough management has asked the Assembly (against the recommendation of the Planning Commission) to allow single-resident housing on Government Peak.

That would be a mistake. The water drainage of Government Peak is incredibly weak. According to the Environmental Protection Agency, over 75 percent of the proposed housing area has “severe limitations for septic drainfields.” The water that drains from Government Peak feeds the Little Susitna — and much of our entire water supply. The dramatic influx of homes would greatly affect both fish and faucet.

Understanding the water dilemma, the Planning Commission passed an amendment that would require resort house sewage to conform to tertiary standards. In other words, the water has to be drinkable before it seeps into the Little Su.

The Borough Management, however, has advised against this measure. Costs too much (nice time to pull that argument).

The Borough is, therefore, pushing for the implementation of dozens of single dwelling houses that will pollute the Matanuska Valley’s drinking water and fish streams, because perhaps — just perhaps — the real estate income will help to offset the millions lost on a downhill ski resort.

Perhaps… But at what cost? What will the price be — both financial and health wise — for our children and their children?

It’s too great a risk for too little gain.

DarinMarkwardt is a Palmer resident.