Gov. Mike Dunleavy recently signed House Bill 127 into law, which is considered a milestone for the proposed Alaska Railroad Corporation Seward cruise ship passenger dock project. The legislation expands the authority of the Alaska Municipal Bond Bank Authority’s bonding capacity to the University of Alaska and regional health organizations, and authorizes the ARRC to issue bonds to finance the replacement of the Seward passenger dock. The bill signing ceremony was held at the cruise ship terminal in Seward on Sunday.
Gov. Dunleavy said:
“I am pleased to sign this bill which will help to expand several elements of Alaskan infrastructure in a meaningful and significant way. The planned passenger dock and terminal facility updates in Seward will be a value add to tourism, to the Railroad, to Southcentral Alaska, and to the state as a whole. I applaud Representative LeBon and those in the Legislature for bringing this smart, streamlined bill across the finish line.”
The legislation authorizes the ARRC to issue revenue bonds to finance the Seward passenger infrastructure up to $60 million. The initial project will construct a new dock, provisional passenger terminal facilities, and associated upland improvements. In the future, project elements include constructing a new permanent passenger terminal building. Earlier this year, ARRC’s Board of Directors authorized the railroad to pursue up to $60 million in funding through their statutory authority to issue bonds, subject to state legislative approval, to complete dock design and construction. The corporation is also evaluating possible funding sources for the permanent passenger terminal building.
Alaska Railroad Board Chair John Shivley said:
“Governor Dunleavy cemented his support of tourism as a significant renewable resource in Alaska. By giving the ARRC the ability to issue bonds to fund the project in Seward, the ARRC will also be able to maintain its mission of being a self-sustaining entity as it will not have to rely on state funds for the construction of the dock and terminal facility. This new dock and terminal facility will serve as the gateway to unforgettable travel experiences that await in the Great Land.”
House Bill 127 also removes the project scope, which limited the Bank Authority participation to only heating or energy projects and provides the University with expanded avenues for financing and the and gives the ability to leverage bond ratings. The legislation expands the opportunities for regional health organizations to use the Bond Bank by removing the 49% single-project participation cap and raises the cap for all regional health organization projects to $500 million.
Click here for more information on House Bill 127.