The Skagway Borough received a letter this month from the Alaska Department of Commerce, Community and Economic Development. The letter lets the borough know that a $10 million state legislative grant for city dock improvements is set to lapse in about six months, on June 30, 2017.
The letter asks the borough for a progress update on the grant.
Using the funding has been trickier than the borough anticipated. That’s because the plan for dock improvements was contingent on a lease extension with White Pass and Yukon Route Railroad. A public vote rejected the lease in fall of 2015. Since then, the borough assembly has struggled to make progress on port renovations.
After the lease vote last year, the borough asked the state for a one-year extension on the grant, which was approved. At that time, the balance was about $7 million.
The assembly may decide whether to ask for another extension at its meeting this week.
Also on the meeting agenda is a request for engineering design proposals for the Skagway senior center and housing facility. A $6 million bond for the project was narrowly approved by voters in October. The vote’s slim margin caused some debate at the last assembly meeting about what the RFP should include.
The assembly will also continue its discussion of municipal land sales. At the prompting of Assemblyman Orion Hanson, the borough is exploring what property it might open for sale.
The meeting is set for Thursday at 7 p.m. in assembly chambers.
The article states:
“the plan for dock improvements was contingent on a lease extension with White Pass and Yukon Route Railroad.”
This statement incorrectly implies that the dock improvements can only be done by granting White Pass a lease extension beyond the current lease they have with the Municipality. That lease was signed in 1968 and expires in 2023.
The reality of the situation is that White Pass has DEMANDED a lease extension beyond 2023 as a prerequisite for allowing the Municipality to do any dock improvements.
Therein lies the stalemate.
The stalemate is the Municipality not taking action. The contamination as well as the unsafe condition of the Ore Dock are likely a breach of contract for the existing lease. If the Municipality just started the clean up then what would White Pass do? Get an injunction to stop the clean up. Pretty unlikely. The fact that five of the seven Assembly Members derive income from White Pass is a conflict of interest and certainly muddies the water.