Anchorage Mayor Dan Sullivan has unveiled the municipality's 66-page wish list for the upcoming legislative session, composed of state funding requests for scores of capital projects that collectively cost roughly $670 million.
By far, the largest chunk of that sum is a single request: $350 million to restart the troubled Port of Anchorage project. It's a hefty amount of money at a time when the state is challenged by dwindling oil prices and a budget deficit that could total $3.5 billion this fiscal year.
But Sullivan said, despite the fiscal climate, he believes the Legislature will recognize the Port of Anchorage as one of the most "critical pieces of infrastructure in the state." If the Legislature does not agree to fund the port project all at once, he is hopeful it would agree to fund the port in well-timed phases that would not interrupt the flow of construction.
"Either way is acceptable," he said. "What the Legislature and the governor are going to be looking at, I think, are the projects that have already started and are key infrastructure, and this certainly meets the bill on both counts."
Still, Sen. Anna MacKinnon, R-Eagle River, who co-chairs the Senate Finance Committee, offered a grimmer outlook. When asked if the $350 million request was realistic, she said, "It's not impossible, but it stops me in my tracks."
"The Port of Anchorage is very important to me and to the people of Alaska, but under the current fiscal conditions, I'm not sure that is a realistic request for this session," she said. "This is not a typical budget request year, and things will be very lean."
This is the third consecutive year Sullivan's request for port project funding appears on the top of the municipality's list, called the State Legislative Program. Last year, the municipality asked the legislature for $250 million for the port yet received nothing. In 2012, it received $48.5 million in state funding and a $50 million bond.
What makes this year different, Sullivan said, is the municipality has a partially-completed design and plan to move forward with the port project and fix what it started years ago. Since 2010, work on the port has been stalled after construction collapsed and costs skyrocketed. Last month, the mayor and members of the port project team presented a new, more simple design for the port with a $485 million price tag. The municipality has roughly $130 million in the bank for the project and needs $355 million more, according to Sullivan. Construction is scheduled to begin in 2016.
In the meantime, Sullivan said the municipality will also continue to pursue other means of funding for the port project including federal grants and low-interest loans, but he doesn't expect the other sources to yield much money. He stressed the importance of a state partnership in the project.
Sen. Kevin Meyer, R-Anchorage, said distrust looms in the Legislature over the Port of Anchorage project after the first attempt at a facelift was never completed but still cost more than $300 million in federal, state and municipal funds.
"The port had some issues in the past, and we're going to have to make sure those issues are fully resolved and it has proper oversight before we can give it any more state money," Meyer said.
In the more than 10 years that Meyer has served in the Legislature, he said, "I've never seen us give out that kind of money for one project."
Rep. Andy Josephson, D-Anchorage, also said there is some frustration at the state level over the beleaguered port project. He said some legislators might not see the immediate need for the project since the port is still operational.
"I think there's a history of doing things in pieces and you're going to likely see the Legislature do this in pieces as well," he said of funding. "I say that partly because of frustration over the failure of the original design."
Aside from the Port of Anchorage, other projects municipality is requesting funds for include:
• $2 million for a new transit center in Midtown
• $14 million to complete the 100th Avenue corridor, connecting C Street and Minnesota Drive
• $1.5 million to repair and replace aging pedestrian bridges along greenbelt trails
• $4.4 million to upgrade Yosemite Drive in Eagle River
• $250,000 for the Loussac Library renovation
• $1.8 million for upgrades to the Anchorage Center for the Performing Arts
• Nearly $10 million for improvements to the Chester Creek Sports Complex
• $2.92 million to renovate Anchorage's historical properties
• $300,000 for City Hall security and safety improvements
• $4.8 million for the construction of the Southcentral Law Enforcement Tactical Range
For a full list, visit muni.org/departments/mayor.
Correction: An earlier version of this article incorrectly reported the amount spent on the Port of Anchorage.