In 1998, the City of Whittier made an agreement with the Alaska Railroad Corporation (“ARRC” or “the Railroad”) known as the Master Lease. This agreement allowed the City to sublease approximately 250 acres of land from ARRC to create income for the City while enabling the Railroad to keep ultimate control of their lands. After 25 years, the City Council determined that the Master Lease isn’t working well for either side anymore. They have asked the City Administration to explore alternative options with ARRC.
The City is interested in expanding the Small Boat Harbor, developing the Glacier Street Property for housing and businesses, and protecting the Head of the Bay. The goal of this land swap is to give Whittier more control over how the land is used, helping with public projects and economic growth. ARRC would continue its railroad operations and have an opportunity to support community projects.
A town hall was held on June 18, 2024 for the public to voice their thoughts and concerns regarding this proposed trade.
On July 9, 2024, a City Council work session was facilitated by their independent contractor, Winfluence Strategies, to gather information on properties the Council wished for the City to own and properties the Council was willing to trade.
Timeline
A timeline of key events from the initiation of the Master Lease to the current negotiation phase.
Apr 1943
Railroad to Whittier Completed
The U.S. Army completed construction of the railroad spur to Whittier, which consisted of a 1-mile tunnel through Begich Peak and a 2.5-mile tunnel through Maynard Mountain, thus linking Whittier to the Alaska Railroad’s main line at Portage. This line became Alaska’s main supply link for the war effort during WWII.
Nov 1995
EPA Approves Whittier Access Project
With the increasing traffic to Whittier came a demand for easier access. The Alaska Department of Transportation submitted an Environmental Impact Statement to the U.S. Environmental Protection Agency to construct a highway to Maynard Mountain and transform the existing railroad tunnel into a one-lane, combination highway and railway tunnel that allowed cars and trains to take turns traveling through the tunnel.
Mar 1998
House Bill 412
Representative Cowdery introduced House Bill 412, “An Act providing for the transfer of certain land to the City of Whittier; and providing for an effective date”. This bill would have required the Railroad to transfer some of its lands to the City. The Transportation Committee considered the bill and referred it to the Finance Committee, where it died.
Sep 1998
Construction Began on Whittier Access Project
DOT&PF awarded the tunnel contract to Kiewit Construction Company, who then proceeded to build 1.5 miles of road, one 500 foot long tunnel, and two bridges from the Portage Glacier Highway near the Begich-Boggs Visitor Center to the Bear Valley staging area.
Nov 1998
Master Lease Signed
In an attempt to be responsive to the needs of the City, the Alaska Railroad Corporation and the City of Whittier sign the Ground Lease and Management Agreement (“Master Lease”), granting the City the right to use, occupy, and manage approximately 250 acres of land.
Jun 2000
Tunnel Opened to Vehicular Traffic
After 21 months of construction, the Anton Anderson Memorial Tunnel reopened, this time to train and vehicles, claiming its status as the longest dual mode tunnel in the United States.
Aug 2004
Not a Legislative Priority
The Council considered and failed to pass a resolution making the Master Lease and related land issues a legislative priority for the City by a vote of 5-1.
May 2016
Requesting Relief from Legislature
The Council considered and passed a resolution requesting the Alaska State Legislature and the U.S. Army Corps of Engineers provide the City relief from the economic hardship created by the Railroad failing to transfer ownership of the Delong Dock in a timely manner.
Jun 2018
Delong Dock
The Railroad deeded the Delong Dock to the City as part of a land trade.
Mar 2019
Whittier Manor Grounds Transferred to Condo Association
With the expiration of ARRC Contract No. 5136 coming up on January 1, 2020, the City negotiated with the Whittier Manor Condominium Association to sell the leasehold parcel to the Association.
Mar 2021
Resolution Requesting Non-Essential Lands from the Railroad
The Whittier City Council passed a resolution requesting all non-essential lands held by the Railroad be relased to the City of Whittier in fee simple.
Nov 2023
Established City Lands Advisory Committee
The Whittier City Council passed an ordinance establishing the City Lands Advisory Committee to assist the City Council in planning future land ownership and management decisions in preparation for the Master Lease’s expiration in November 2033 (with the option to extend for two additional 35-year terms).
Mar 2024
Initial Discussion with ARRC
The Mayor, Vice Mayor, Administrative staff, and representatives from the Railroad met for the first time to discuss what lands the City and the Railroad were willing to trade.
Apr 2024
Independent Contractor Hired
At their regular meeting, the Whittier City Council voted 5-1 to enter into a professional services agreement with Winfluence Strategies, LLC to assist the Council with the land swap. At the same time, the City received the first draft proposal for the land swap.
Jun 2024
Town Hall
The City Council and Administration hosted a town hall/work session to gather public input on the proposed land swap.
Jul 2024
Winfluence Leads Work Sessions
The City Council and their contractor, Winfluence Strategies, held work sessions to discuss the specifics of the land swap.