The borough assembly has granted Manager Jeff Good the authority to negotiate a short-term lease with Channel Construction to use a portion of the 6-Mile mill site for a scrap metal recycling operation.
Juneau-based Channel Construction has been running a regional metal recycling operation at the property, which the borough purchased for $2.5 million this summer. Owner William “Shorty” Tonsgard Jr. initially applied for a long-term lease that would allow him to continue operating at the site after the borough took over the land.
The port commission unanimously voted down a motion Sept. 1 to recommend granting a long-term lease to Channel Construction. The commissioners requested more information about the assembly’s overall business plan for the property before moving forward with a recommendation.
A short-term lease, however, would allow continued operations until the borough can determine what Wrangell residents want for the land.
“We don’t know what the property is going to be yet,” explained Good. “We could make it industrial, we could make it light industrial, we could make it tourism. Before we do anything and really commit to a long-term lease for industrial activity, we want to understand what the public wants for that property.”
Since tourism and industrial activity do not operate well together, the borough plans to defer its decision on the long-term site plan until after this week’s municipal election and until it can hold an economic forum to field questions and comments from the public.
Vice Mayor Patty Gilbert believes the port commission was justified in its request. “The port commission, and rightly so, wanted to know the full picture for the mill site in terms of development,” she said on a phone call after the Sept. 27 assembly meeting. “We value the port commission, and we take direction from them, as well as planning and zoning.” The planning and zoning commission approved the proposed lease at its Sept. 8 meeting, citing the “local and regional need and the economic opportunity the business brings to Wrangell.”
The port commission will meet again on Oct. 10 to review the supplementary materials it requested. In the meantime, Channel Construction will “(continue) their operation, which has been a benefit to the community,” Gilbert added.
In public comment at the assembly meeting, Mark Mitchell shared his perspective on the value of Channel Construction’s business. He said that if Tonsgard was not offered a long-term lease or an opportunity to purchase property at 6-Mile, he might take his valuable operation elsewhere. “I guarantee you, you’re not going to have anything going there for 10 years,” Mitchell said of any potential tourism development at the site. “(Shorty) is bringing in business now.”
A long-term lease would allow Tonsgard to invest in improvements on the property. “He’ll have to do a stormwater prevention plan, he’ll have to do an oily water separator out there to do the things he’s wanting to do,” said Good. Tonsgard also hopes to extend the fill out to deep water to allow his barges to load at all stages of the tide, according to his lease application. These improvements would not be feasible under a short-term lease.
Tonsgard did not respond to a request for comment.
The borough’s procedures and commitment to solicit public feedback on the site’s future have played a role in its decision timeline, but so have environmental concerns. “Part of the reason we’re being cautious is we have to go through our Phase I environmental assessment,” said Good. Now that the borough owns the former sawmill property, it could become liable for contaminants that enter the site, and wants to ensure that no lead paint, asbestos or fuel will be brought in on barges.
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