Borough, community groups push to secure Save America’s Treasures funds for SS Nenana; ownership options under review

The Fairbanks North Star Borough supplied technical and ownership information to support a Save America’s Treasures grant application submitted on behalf of the Friends of the SS Nenana and the North Star Community Foundation, and the borough is discussing whether to accept the grant or pursue a lease or sale of the vessel to the community groups.

The matter moved after a special assembly meeting last week that asked the borough administration either to accept the grant application or to explore selling or leasing the SS Nenana to the Friends of the SS Nenana or the North Star Community Foundation. Tom Hewitt, speaking for the administration, said the borough provided needed ownership and budget information to Pete Penny of the North Star Community Foundation to complete the application and that Mr. Penny “should have been able to send that off ... on Saturday.”

The issue matters because the grant is administered through the National Park Service’s Save America’s Treasures appropriation and, as discussed at the June 3 Historic Preservation Commission meeting, could carry conditions including a long-term easement and federal oversight. Chair Record told commissioners that “the borough is required to actually sign and give an easement for 15 years on the boat … and probably with the State Historic Preservation Office.” Trish Schmidt of the Friends of the SS Nenana confirmed receipt steps: “I just wanted to confirm that, everything has been sent and been received and we've got confirmation from James Ava that everything's good and he's going to start the paperwork rolling.”

Borough staff said they provided the pieces the community groups could not prepare themselves: ownership details and cost and scheduling estimates that are typically required for federal grant paperwork. Hewitt said the borough’s financial and public-works staff compiled that material and passed it to the foundation’s representative for submission.

Commissioners and staff discussed project sequencing and timing. Hewitt said the borough has a $500,000 capital improvement project to repair decking on the vessel’s bow that must be completed before painting, and that painting work would likely be scheduled after the decking is finished. He characterized the grant as reimbursement-based — work is performed and then federal funds reimburse eligible costs — which affects scheduling, bidding and when work could proceed. Hewitt estimated the painting would most likely happen next summer given procurement timelines and construction season constraints.

Commissioners and staff also raised concerns about future federal oversight and procurement requirements. Hewitt said that staff are “nervous” about the nature of federal requirements tied to grants — including procurement standards and preservation expectations that might apply over time — but that the administration was proceeding with the grant acceptance because the assembly and public expressed support.

Several speakers clarified how the borough and community groups expect to coordinate if the grant proceeds. Under the current ownership structure, the borough would manage projects and pay contractors up front and then be reimbursed by the North Star Community Foundation and the Friends of the SS Nenana, Hewitt said; the parties anticipate creating a memorandum of agreement to spell out roles and money flows. The administration also asked the foundation to put the matter on its board agenda to consider whether the foundation would act as the fiscal agent for the Friends or might itself take ownership via sale or lease.

Background and immediate next steps: Commissioners noted recent maintenance history — a seasonal crew worked summers through about 2012 and spent roughly $350,000 across five seasons — and reported that private funds have already been used for limited painting work; Chair Record said painting on the transom began on June 3 under the Friends’ funds and with borough permission. The borough awaits federal notice of whether the Save America’s Treasures awards will be finalized by the end of the federal fiscal year; staff told the commission that the grant program office had communicated a May 31 deadline for consideration and that the borough expected to hear by June.

No final acceptance or transfer decision was made at the Historic Preservation Commission meeting; the assembly’s prior request directed the administration to pursue the grant acceptance or to explore sale/lease options. If federal funding is awarded, staff said they will proceed with required procurement steps, draft a memorandum of agreement with the Friends/Foundation, and coordinate project sequencing and financial reporting.