Lands committee advances KEA land transfer despite cost concerns

The committee voted 5-0 to recommend parcel 18874, totaling 1,584 acres, be declared surplus and transferred to Kodiak Electric Association for the Terra Lake Hydroelectric project. The recommendation now moves to the Planning and Zoning Commission in June before going to the borough assembly.

Committee member Bo Whiteside supported advancing the request but objected to the no-cost transfer. He cited KEA's 2025 financial report showing $78.7 million in patronage capital fund member equity and a 2.78 times interest earned ratio.

"I do support moving it forward to the Assembly, but I do not support the no-cost gifting of this land to KEA," Whiteside said. "KEA's 2.78 TIER confirms they have surplus revenue necessary to meet a negotiated purchase price without negatively impacting member utility rates."

Whiteside argued that revenue from a negotiated sale could fund infrastructure development for residential land the borough plans to open. He said borough code allows nonprofit land sales at a reduced rate, though the specific provisions and their application in similar cases were not discussed at the meeting.

"The borough has limited funding capacity for infrastructure development," Whiteside said. "So if we were to generate revenue from this land sale, the Assembly could direct those funds towards infrastructure development for residential use."

Committee chair Corey Grawn ruled that price negotiations fall outside the lands committee's authority.

"I think we will be discussing that, yeah, if and when it makes it to the Assembly level, yeah," Grawn said. "We'll get to it then."

Linda Freed, chairperson of KEA's Budget and Policy Committee, testified that borough ordinance requires the Planning and Zoning Commission to review every disposal of borough property.

"We are on their agenda for their June meeting," Freed said. "So the timing is working out."

The four parcels include one underwater parcel with limited value to other users. The fair market value of all four parcels totals $1,220,000.

The committee will see the request again after Planning and Zoning Commission review, likely at an assembly meeting later this summer.