The borough assembly voted unanimously to work toward moving the town’s barge ramp and freight staging area off the downtown waterfront and out to borough-owned property at the former 6-Mile mill site.

The assembly voted Aug. 21 to accept a memorandum of understanding with Alaska Marines, agreeing to coordinate efforts toward the project — though this initial agreement does not commit either AML or the borough to construction.

“The ultimate objective of this collaboration is to use reasonable efforts to negotiate and execute a binding definitive agreement(s) on or before December 31, 2025, that enables construction of the new barge landing and freight facility in 2026 and implements an ownership and operating structure,” the agreement says.

“Basically, the MOU establishes a framework for us to move forward,” Borough Manager Mason Villarma said at the meeting. “It doesn’t legally obligate us to anything. It’s just a road map for how to proceed with what we’re trying to accomplish. This is the beginning of a public-private partnership.”

The assembly directed borough staff to draft a similar agreement for Samson Tug & Barge, the other freight line serving Wrangell. Samson did not participate in the latest discussions between City Hall and AML.

The assembly approved the agreement with AML after a work session before the meeting to discuss the issue.

The push for a new barge ramp accelerated this spring after engineers determined the 47-year-old downtown ramp was unsafe because of significant corrosion and structural problems. The borough shut down the ramp immediately.

Freight carriers have been operating temporarily at the former downtown mill dock next to the Marine Service Center.

Companies pay for use of the borough-owned facility, the same as cruise ships pay for using the City Dock and boat owners pay for berths.

Borough officials said the 6-Mile site was selected because it is suitable for industrial use and has deep-water access.

Villarma said the Marine Service Center is not a viable long-term location for a barge landing without significant impacts to other users in the area.

He said the borough considered options of rebuilding the downtown barge facility or relocating to the airport rock pit, but each presented costs, safety concerns and road challenges that would not exist at 6-Mile. He said the former mill site is ready for development.

During public comment, Cory Baggen, vice president of Samson Tug & Barge, objected that the proposed agreement named only Alaska Marine Lines and not her company.

Villarma said Samson had been invited to every meeting.

Baggen said it would be a positive step if the borough drafted an agreement with Samson, identical to the one with AML.

Also during public comment, Sylvia Ettefagh questioned the decision to move freight operations to 6-Mile.

“I’m concerned,” she said. “I would like to see a breakdown of the numbers where the proposed work at the Marine Service Center would be so costly.”

Capital Projects Director Amber Al-Haddad said PND Engineers provided a rough cost estimate for converting the old mill dock at the Marine Service Center. She said removing pilings and the dock and completing other necessary work to make the area suitable would cost an estimated $23 million to $25 million. The borough determined that was not viable.

“It also needs to be noted that the city is following the direction that was given by the community,” Al-Haddad said in a later interview. “A few years ago, community stakeholders informed the city that they wanted the freight operations moved away from downtown. The city is just doing as directed by the community.”

John Mason, manager of City Market, warned that moving freight operations to 6-Mile could increase freight costs.

“After someone pays their rent and utilities, feeding the family is the next highest cost,” Mason said.

“If freight costs go up even higher, so will prices in the store. … The number one thing that people ask me when they consider coming here is, ‘What is the cost of living?’”

Villarma said the borough recognizes concerns about potential increases in freight costs. He said the goal of the agreement is to relocate freight operations in a way that strengthens the economy without placing an undue burden on businesses.