The Alaska House of Representatives voted Monday afternoon to authorize the sale of 188 acres of Alaska Railroad-owned land to the city of Nenana.
House Bill 395 passed the House with 36 “yes” votes and only Rep. David Eastman (R-Wasilla) dissenting.
The Nenana Municipal Boat Launch, the city’s historical train depot, wastewater treatment and public works buildings occupy part of the 188 acres.
Rep. Kevin McCabe (R-Big Lake) told the House that passing HB 395 is the first step to allow the city to work with the Alaska Railroad Corporation Board of Directors to finalize the transfer.
According to a letter of support from the city, Nenana has invested approximately $29 million into developing infrastructure surrounding the land.
“The goal is for the municipality to own the land beneath its infrastructure and further its development plan that will bring back industry and jobs, promote economic opportunities, tourism, recreation, housing, and services that will be a benefit to all,” the letter states.
McCabe said that the authorization to sell the land is an opportunity for Nenana to pursue its economic development goals more effectively.
“The strategic position of the land cannot be overstated,” McCabe said, since the land is located near the river system, the Alaska Railroad, the Parks Highway and the Nenana Airport.
Mayor Joshua Verhagen told the House Transportation Committee on April 18 that the city still owes $700,000 to the Alaska Railroad due to lapsed lease funding. A resolution from the Nenana City Council on Feb. 13 states that the city eliminated over 90% of its debt within the last five years.
“One common response the City has received from potential investors is that they do not feel secure investing millions of dollars on land owned by the Alaska Railroad and will only consider bringing their business to Nenana if the land is owned by the Municipality,” the city stated in a letter.
The bill received opposition from the Nenana Native Association, which would prefer that the Legislature pass a bill that would transfer AKRR land to the association.
The tribal organization’s attorney, Michael Walleri, said the city won’t properly manage the land. Walleri said that the city has not cleaned up fuel spills that occurred in the past at the port.
Rep. Genevieve Mina (D-Anchorage) said that the vote does not mean that the Legislature approves of the city’s proposal to the railroad, but that it’s part of the process for the AKRR to sell an asset.
The House’s approval is the first step in selling the railroad. The bill still needs at least 11 “yes” votes in the Alaska Senate.
The land will need to be surveyed, appraised and negotiated before the Alaska Railroad Corporation Board of Directors authorizes any railroad real estate sale.
Contact Haley Lehman by email at hlehman@newsminer.com.
