Anchorage Mayor Dan Sullivan asked a conservation group that wants to create a 60-acre coastal park at the Campbell Creek estuary to explore the idea of allowing 15 to 20 acres of it to be designated for development, such as for housing, instead of turning it all into a park.
But the group, Great Land Trust, told the Anchorage Assembly Friday that if some of the property were set aside for development, the group would lose -- or have to reapply for -- most of the funding that has been committed to the project, or that is pending.
The conservation group and the city have been working together since 2008 to raise $6.8 million, buy the property from private owners and turn the 60 acres surrounding the estuary into a city park.
Last month, Sullivan, who became mayor in 2009, said he doesn't want the city to participate. He wants some of the land for housing, which would boost property tax revenue, and he worries about the cost of maintaining a new park.
Sullivan recently proposed a compromise in which 15 to 20 acres of the 60 acres that are uplands could be used for development and the rest could become a city park.
Sullivan, speaking to the Assembly at a work session at city hall Friday, said his proposal calls for the Anchorage Community Development Authority, a city agency, to hold the development acreage for future sale and to contribute money to help buy the 60 acres.
Great Land Trust has been running that idea by the groups and agencies that have pledged the money for the purchase. Too many of them are saying no for the idea to work, said the trust's executive director, Phil Shephard.
"At this point if we change it we lose so much funding that it makes the project not feasible," Shephard said in an interview.
The trust faces a Nov. 30 deadline set by the landowners to close the deal.
Asked by Assembly member Patrick Flynn what the chances are that Great Land Trust could make up for lost funding before the deadline, Shephard said, "Zero. ... It would be impossible."
Another problem, Shephard said, is that the agreement with the landowners stipulates that the land be kept as a park.
$8.3 MILLION IDEA The land in question surrounds the last stretch of Campbell Creek before it flows into Cook Inlet.
The land consists of tidal flats and uplands that are mostly undeveloped and features old growth forest.
The property is reachable by heading south off the west end of Dimond Boulevard, through neighborhood streets.
Supporters of turning this into a park say it will be a valuable public access point for the Anchorage Coastal Wildlife Refuge. About one-third of the property is within refuge boundaries.
Great Land Trust had amassed $8.3 million in committed and pending grants to buy, improve and help maintain a 60-acre park.
Only $2.1 million of that money would still be immediately available if some of the property were to be dedicated to development, Shephard said.
Sullivan said he is interested in spending money that had been targeted for Campbell Creek on improving the Ship Creek area instead.
Sullivan supports building a walkway that would connect the Tony Knowles Coastal Trail with the Ship Creek Trail. Some of it would be a boardwalk.
LAND FOR HOUSING
Among reasons that Sullivan wants some of the Campbell Creek property to be set aside for housing are a scarcity of residential property available for development in Anchorage and the fact that he believes the city could get more in property tax income from housing.
Shephard said Great Land Trust has studied the tax question and concluded new property tax revenue from housing would be offset by additional costs for such things as schools and maintaining roads. "It's a wash."
Shephard said the group is asking the mayor to reconsider. He thinks there's enough money available to both improve the Ship Creek area and buy the 60 acres at Campbell Creek estuary for a park.
By ROSEMARY SHINOHARA
rshinohara@adn.com