Alaska DNR approves scaled-down land transfer to AIDEA for industrial park near Houston

The Alaska Department of Natural Resources on Tuesday approved a scaled-down version of a controversial land transfer to a state-owned corporation, the Alaska Industrial Development and Export Authority.

According to a final finding and decision published Tuesday afternoon, DNR has approved a plan that would give approximately 6,800 of land for free to the state-owned corporation. That’s less than the 19,500 acres that had been earmarked for transfer in a preliminary July decision.

DNR further said it will impose conditions on the transfer, including the right for local residents to use roads and trails in the area. DNR will also include a reversion clause that returns the land to the state agency if AIDEA fails to develop it.

“DNR has determined that it is appropriate to reduce the conveyance acreage from 19,500 to approximately 6,800 acres, and to modify the arrangement of the subject parcel in a manner that will maintain public access and use of these lands while also incorporating measures intended to mitigate the anticipated impacts of the conveyance,” it wrote in Tuesday’s decision.

After DNR published its decision on Tuesday afternoon, the Beacon emailed AIDEA for its thoughts on the scaled-back approval. The agency has not yet responded.

Explaining its interest in the area, AIDEA said in July that the land could be used for a logistics hub, advanced manufacturing and “scalable data centers.”

“AIDEA proposes to use the conveyed land to establish a multi-use industrial and energy development district for the public purpose and public interest of creating jobs, improving energy reliability, and diversifying the economy,” DNR wrote in Tuesday’s decision.

AIDEA’s initial proposal received a storm of opposition from local residents who rely on trails and roads in the area and harvest timber in the region. Fishermen said they were concerned that development could disturb salmon streams.

The Alaska Legislature held a pair of hearings investigating the legality of the transfer, and a former state legislator filed suit to block it. That suit is still pending.

DNR received more than 2,300 public comments on the transfer, mostly in opposition.

“Reducing the area to 6,800 acres allows the conveyance to alleviate many of the concerns raised during the public comment period,” the agency said in its final decision.

It also said that public reaction caused it to reverse the elimination of the reversion clause, require the protection of salmon streams and mandate public access to roads and trails in the area.

Tuesday’s decision opens a 20-day window for reconsideration, and if someone requests that DNR reconsider its decision, the agency has 30 days to act on that decision.

Any further challenge would have to be filed in the state court system.