Many testify at Palmer's second hearing on p

PALMER— So many residents wanted to testify at the Palmer hearing for the prison project that the hearing was started earlier than planned. Forty residents gave testimony before the crowd, 15 testified privately to a court reporter. Some 141 residents signed in for the meeting, however likely more than 250 attended at Swanson Elementary last night (Nov. 29). All but three who testified before the audience opposed the prison in Palmer.

No time was given to answering questions during the public hearing. All of the time was devoted to collecting public testimony. Many answers are in the Frequently Asked Questions on the Borough Web site www.matsugov.usAmong the many questions, here are some answers:

Given the removal of the Houston/Willow site because of cost, doesn't this site selection process boil down to just money?

The site development costs for the Houston/Willow site far exceed the same costs for the other sites. The Houston/Willow site preparation would have cost $81.5 million, significantly more than the site prep. costs for each of the other sites. Those site development costs are: Site 7, Sutton, $37 million; Site 12, Pt. Mac, $37.3 million; Site 14, Palmer, $28.6 million plus the land acquisition cost. These costs are similar enough that cost alone, at this stage, will not be an overriding factor. When picking a preferred alternative, the site selection committee will be considering public comment, annual operating costs, water supply, among a list of other criteria.

The preferred site and likely an alternative will then go before the Borough Planning Commission on Dec. 18 for another public hearing. The Commission's decision then goes before the Assembly on Jan. 16 for a final public hearing. The Assembly has the final say in where the prison is located.

Why is the Borough supporting the financing and construction?

The State asked the Borough to issue the revenue bonds because its leadership wants local government involved in the project. By being a partner, the Borough has more control and can weigh in on where the prison is located and how the prison looks. Historically, with prison projects in Seward and Anchorage the state has asked the local government to play a role in the financing. The prison will be financed by the sale of revenue bonds, which are backed by an annual lease payment from the State. The risk is not for the taxpayers but for the party who holds the bonds. However, the risk is minimal because a prison is considered an essential service. The State has not defaulted on any payments for other prison projects financed in this manner.

How is it saving money, building a large prison here versus housing nearly 1,000 prisoners in Arizona?

The prison project is estimated to cost $303 million plus inflation, which could amount to $330 million. Its annual operating costs are expected to be $60 million. If you compare those amounts to the annual $20 million it costs to cover prisoner housing in Arizona it doesn't look like a savings. However, that's not the full equation. Returning prisoners to the state where they live returns the energy of that annual $20 million dollars to Alaska, where it will reverberate in the local economy, diversifying it with new jobs (400 to 600), new spin-off businesses, and a three-year construction project. The construction jobs, alone, will provide an estimated $99.6 million in labor income. However, returning Alaska money from Arizona will do more than build a diversified economy. The existing correctional facilities in the state will gain efficiencies by operating at normal capacity rather than at overcapacity. Alaska prisons will be safer, better places to work. The inmates will benefit from being closer to family, which helps all of us. Family support for inmates is proven to enhance rehabilitation and decrease re-incarceration rates.

Who owns the Palmer proposed site?

Secon, Inc. owns the land of the proposed site in Palmer. Secon is the sister company to QAP. QAP is also called Colaska, Inc.

Binders of all the public comments will be available for reading at the Borough building in Palmer. The first phase of public comments are online behind the prison link at www.matsugov.us The comments from the second phase, which ended last night, will be available within a few days at the Borough building.

The site selection committee will meet Dec. 8 and determine a preferred site and likely an alternate. The Planning Commission public hearing is now set for Dec. 18, the location n will be announced.

For more information contact Community Development Director Ron Swanson at (907) 745-9868 or Public Affairs Manager Patty Sullivan at (907) 745-9577.

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