January 17, 2003
Friday - 5:35 pm

I applaud the University of Alaska for selling land in Southeast Alaska. It allows the property to be put into the private sector where it will be taxed for the benefit of all the residents of Ketchikan and allows economic benefits to be derived from the land. I could not tell from the [KDN] article whether the "ruckus" was the price paid for the land or the potential timber harvesting. This property was included in a Statewide land auction which was advertised on the Internet for months. Alcan was told about the property by a local resident who received a flyer from the University. The auction is a sealed bid. In researching the property we realized the number of adjoining land owners and the proximity to Ketchikan would require more than an appraisal based upon land and timber value only. First off the "100 foot strip of uncleared land" represents 26.5 acres or almost 20% of this property. The owner of this property would not be able to derive economic benefit from this 20% of the property. The future property tax costs and visual protection requirement substantially reduced the amount of money we were willing to bid on this property. The location close to Ketchikan and the large number of adjoining land owners also reduced the value since we had decided not to clear-cut the property and to undertake a more expensive timber harvest of selective cutting. The property has limited access, no roads, no power, no sewer or water services. Any development will require these improvements at considerable costs.

The property is zoned "FD" for future development. Other than recreation and wildlife reserves the principle uses for FD zoned property is "Logging, mining and extraction of natural resources subject to the development requirements."

Besides the economic benefit to the University of Alaska and the inclusion of this property onto the tax roles for all residents of the Borough, the timber harvesting will generate substantially to the economy of Ketchikan. In addition to the price of the property Alcan paid the University, Alcan expects to spend over $1,250,000 on locally purchased services to build roads, harvest timber, trucking, sorting, scaling and local longshoreman. The normal factor for the turn of this money into the local economy is 6. This small short term project will inject $7.5 mm into the economy of Ketchikan. Sixty three local jobs will be created. The money will be spent for wages, fuel, parts at the local Napa store, insurance, food, rent and mortgages. The list goes on and on.

Ninety six percent of the Tongass National Forest is set aside from any timber harvesting and the battle continues everyday for the remaining 4%. We would rather not be harvesting timber in the back yards of our neighbors but with the environmental lock up of the Tongass it leaves little choice of where or how to make a living.

Alcan is willing to discuss our plans with any of the adjoining land owners. We have tried to take local concerns into account when we purchased the property. Alcan had no intent to clear-cut the 100 foot strip. My letter to the borough stated "Our intent is to selective cut the property along with a small percentage of higher value trees in the 100 foot strip." The timber harvesting will be completed hopefully without delays. Our intent was to be finished prior to the summer tourist season. Any adjoining land owners with concerns can contact us at our office 111 Stedman, Suite 100 or by calling 225-1710.

Eric Nichols
Alcan Forest Products

 

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