The borough assembly has approved a longer-term lease with Channel Construction at the former 6-Mile mill site where the company plans to build two 3,200-square-foot shop buildings.
Under terms of the agreement approved April 9, Channel would store equipment at the site.
At its expense, the company will improve the access road off Zimovia Highway with crushed rock, improve the barge landing and expand the rock fill, and seek a U.S. Army Corps of Engineers permit for the fill.
The construction and scrap metal recycling company will lease six acres for $27,000 per year for five years, with the potential for up to five five-year extensions.
In addition, Channel will lease an existing mechanic’s building at the mill site on a month-to-month basis for $400 per month, until it can construct its own building.
Channel Construction has been running a scrap metal business on two acres at the property since last year on a month-to-month lease. The borough purchased the property from the former mill owner in 2022.
Juneau-based Channel requested a longer-term lease in Wrangell to put up a building because its equipment shop in Juneau collapsed under heavy snowfall this past winter, according to a report to the assembly by Borough Manager Mason Villarma.
The borough does not believe the six-acre lease will interfere with its long-range development plans for the property. The port commission and planning and zoning committee recommended the leases for approval by the assembly.
Channel Construction has helped remove a large volume of scrap metal from the island over the years, as part of its overall Southeast Alaska metals recycling operation.
Recently, the borough has contracted with the company to remove the mountain of tires that has accumulated over the years at the community’s waste transfer station. The tires will be barged out of state for disposal.
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