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By Larry Persily
The borough is waiting for anengineering firm’s final cost estimate before the assembly will considerwhether to seek a low-interest loan from the state to extend water and sewerlines across the Skagway River to the Klondike Highway.
A year-old preliminary estimate compiledat the start of the project put the construction cost at $6.16 million, whichincludes more than a mile each of 8-inch sewer pipe and 10-inch water line.
“It is pricey,” Mayor Andrew Crematasaid Dec. 30. But it’s an expense the municipality needs to confront “if we’reidentifying housing as a major concern for the community,” he said.
“It will open up a vast amount ofland,” said Matt Deach, chair of the Planning and Zoning Commission, who calledthe lack of housing in town “an emergency.”
The assembly’s Public Works Committeeapproved a draft resolution Dec. 19, authorizing the borough manager to applyfor a loan through a program administered by the Alaska Department ofEnvironmental Conservation.
When the borough has the cost numbersfrom PDC Engineers, the resolution will be added to an assembly meeting agendaand available for public comment.
“It will be ready to go when we getthe numbers from the engineers,” expected later in January, said AssemblyMember Orion Hanson, Public Works Committee chair.
The community has been talking forseveral years about extending the water and sewer lines across the river toopen up land for new housing and other development, Hanson said. The extensionwould allow construction of a new recreational vehicle park, making the land currentlyoccupied by the Garden City RV Park on State Street available for permanenthousing.
In seeking a state loan, the borough wouldneed to figure out how to repay the funds, Hanson said. The municipality wouldneed to determine a hook-up fee for the new service, probably something morethan the existing fee, since the availability of water and sewer lines wouldincrease property values in the new service area, Hanson said.
In his report at the assembly’s Dec.23 meeting, Borough Manager Brad Ryan noted that borough code requires: “Watermains west of the Skagway River shall be extended only at the expense of thecustomers served.” Code also requires the same of sewer line extensions acrossthe river.
“Obviously, there needs to bediscussion on how this project will be financed,” the manager said in hisreport. Regardless of that pending issue, the municipality plans to apply forthe low-interest state loan and can always decline to take the money, Ryan saidin his report.
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