Wiring Hatcher Pass

MAT-SU -- The Mat-Su Borough Assembly agreed Tuesday to use funds secured by Valley legislators to contract with Matanuska Electric Association to extend electricity to borough-owned land at Hatcher Pass.

Jill Reese, the owner of the Motherlode Lodge at Hatcher Pass and a Palmer real estate broker, testified before the assembly Tuesday and said she believed the line extension -- at a cost of $697,000 -- would be a boost to securing a developer for the borough's land.

"Being on a generator and radio phone for the last 10 years, that's been the biggest struggle [for] our business," Reese said. "[The proposed development] encourages me to think about expanding our rooms -- and that means more tourism and more bed tax."

The money is part of a larger appropriation of $900,000 that was accepted by the assembly on Aug. 17, 1999, according to information in the action memorandum enclosed in the assembly packet for the meeting. The appropriation, according to a resolution adopted at that time, was geared to go toward the cost of utility construction, among other items on the project's scope of work. Some of that money has been spent already, including $100,000 paid to MEA for the engineering of the three-phase line extension.

Reese commended the borough for its commitment throughout the past few months to making clear, methodical decisions about the future of development at Hatcher Pass. She pointed to a current study under way by the Alaska Industrial Development and Export Authority and soils analysis tests that have been completed -- as well as monthly meetings with affected residents.

"From a private developer's standpoint, I think that you're going about it in just the right manner," Reese said.

But not all borough assembly members agreed with Reese's point of view. Assembly member Talis Colberg, when speaking about the proposed action memorandum, held to his previous stance that the borough should wait for the studies and tests to come back before taking the next step in construction.

"We don't know where this is going to end up," Colberg said. "It appears to me we're incrementally building something …"

Assembly member Kelly Lankford Ladere asked Public Works Director Jim Swing and Borough Manager John Duffy when the AIDEA study and soils analysis tests were due to be completed. The AIDEA study examines the economic feasibility of construction at Hatcher Pass, as well as what approaches the borough could take to best ensure successful development and operation of the proposed resort area by outside entities. Duffy said the study is due by the first week of May. The soils analysis testing report will discuss the developability of the borough-owned approximately 3,000 acres, considering such questions as how septic facilities can be implemented in the area and what excavation problems may creep up through development. Swing expected the finalized report to arrive by today.

Ladere asked whether it would be possible to postpone the use of the Legislature-tagged funds until after the studies were back, but Duffy said a postponement could mean the money would disappear.

"The [legislative] session is going to end on May 14," Duffy said. "If these funds were to be reappropriated, that's when this would happen."

Duffy added that the assembly could infer some of the information presented in the plans already.

"We do know some of what the feasibility study is going to say," Duffy said. "It's the same as before."

And what was said before, Duffy explained, is that it's not likely a developer will come on board until after utilities are extended to the property and the groundwork is laid.

Swing said the preliminary soils analysis study shows that the proposed development should be able to move forward with no problem.

Other assembly members said they supported Colberg's point of view, but they did not believe the money that had been appropriated for the project should be turned away, only to go to another project elsewhere in the state.

"We've got the money -- we ought to do it," said assembly member Bruce Bush.