A Juneau-based business that shares ownership with the company which has been leasing land at the former 6-Mile mill property for a scrap metal recycling operation has told the borough it wants to buy more than nine acres at the site to build a permanent operation.
“If an agreement is made on a purchase, our first improvement to the property will likely be establishing utilities such as water, sewer and electricity,” Tideline Construction wrote in its Jan. 24 request to the borough.
The company offered $250,000 for two parcels at the southern end of the property— the assessed value of the land, according to borough records.
Tideline also said it was interested in either buying or signing a long-term lease for portions of three adjoining parcels which “would be desired to run our operations effectively.”
The company has offered to remove the large wood chip pile from the waterfront north of its project site and use the chips as fill at the southern end, “after which that area would be capped with crushed or shot rock.”
If the deal goes through, Tideline would continue using the site for scrap metal recycling and as a staging area for shipping out the material and also storing construction equipment. Then “as infrastructure is built,” the operation would grow into “processing of vehicles for the scrap operation as well as a heavy equipment repair shop.”
That would include an oil and water separation system, “as well as contained tank areas for temporary fluid storage.”
The company estimated the cost of improvements at $500,000, according to its land purchase request to the borough.
“We believe this land investment will be mutually beneficial and contribute to the economic development of the area,” Tideline wrote in its request.
Tideline Construction is a family-owned and operated construction business and a sister company to Channel Construction, which has operated the scrap metal recycling and shipping operation at 6-Mile the past few years.
Borough Manager Mason Villarma called it “a positive opportunity.”
He noted that the borough owns enough property at the former mill site — about 42 acres — that it could sell land for the scrap metal and construction operation, have enough land available if it moves the barge ramp from downtown to the 6-Mile site, and still accommodate other users.
Washington state developer Dale Borgford in December presented the borough with his $87 million development idea for the mill site, which includes a waste burner that would generate heat for large-scale commercial greenhouse operations, along with a water bottling plant and a small sawmill.
Villarma said the borough has not heard much from Borgford since the December presentation.
The developer declined to comment about his plans when contacted by the Sentinel last week.
Tideline Construction’s proposal will go through port commission and then planning and zoning commission review before reaching the borough assembly.
The port commission voted unanimously Feb. 7 to recommend that the planning and zoning commission and then the assembly “proceed with the sale to Tideline Construction.”
The proposal was pulled from the planning and zoning commission’s Feb. 13 meeting agenda to await more information from Tideline and more staff work, said Kate Thomas, the borough’s economic development director.
The staff recommendation for the Feb. 13 meeting was to approve the land sale and forward the issue to the assembly for its consideration.
“The ultimate goal is to get to yes,” Thomas said, but it will take a little longer.
“Staff recommends approval … as it aligns with Wrangell’s economic development goals and provides multiple benefits to the community,” said the report prepared for the Feb. 13 meeting.
“The sale will place the property into private ownership, generating property tax revenue and reducing the borough’s liability for maintaining underutilized land.”
Thomas said she later decided the commission needs to see more historical information about past use of the site, additional details from Tideline about its economic development plans and scope of work for the property, and further discussion between the borough and Tideline as to who would pay to extend water and sewage lines to the site.
When the sawmill was running, the owners operated private water and sewage systems at the property.
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