AIDEA board to weigh up to $10 million for geothermal, $22.8 million for Wrangell shipyard

The Alaska Industrial Development and Export Authority board is scheduled Wednesday, Nov. 4, to consider up to $10 million in equity for a geothermal project on Augustine Island and up to about $22.8 million in loans for a proposed shipyard in Wrangell, according to the meeting agenda. Both resolutions leave final terms to be negotiated.

The GeoAlaska resolution would approve a direct equity stake of up to $10 million in GeoAlaska, LLC, for the Augustine geothermal project in lower Cook Inlet. It does not approve a valuation, ownership percentage or definitive structure. Those wait on due diligence, advice of counsel and documents negotiated by the executive director.

The Wrangell resolution would let AIDEA's executive director and chief lending officer negotiate two loans to the City and Borough of Wrangell. About $7.8 million would cover the borough's 20 percent local share of an Economic Development Administration award for the Wrangell Deepwater Port Industrial Subdivision. Up to $15 million more would finish shipyard design and obtain all permits.

Wrangell and JAG Marine Group jointly funded $750,000 for the shipyard's initial design, and the borough began talks with AIDEA about financing, according to a March Wrangell manager report. "We are demonstrating to our State and Federal partners that this project is real, actionable, and aligned with both economic development and national security priorities," Borough Manager Mason Villarma said in a February release.

Villarma and GeoAlaska CEO Paul Craig are scheduled to present before the votes.

The meeting starts at 9 am, and callers may comment. Written comments are due by 4 pm Tuesday.