Assembly directs subdivision of Point MacKenzie rail easement from agricultural parcels to prepare for sale

The Matanuska-Susitna Borough Assembly on April 15 approved Resolution 25-031 directing the borough manager to subdivide two farm tracks at Point MacKenzie to separate the Port MacKenzie rail transportation corridor and terminal easements from adjacent agricultural parcels.

Jillian Morrissey, community development director, said the subdivision is intended to prepare the farm parcels for future sale while preserving the state-held rail easement. Morrissey said the borough has communicated with the State of Alaska, which indicated removing the rail easement from the farm parcels should not preclude future subdivision by a future owner. The administration estimated the subdivision process would take about three to six months if the Assembly approved the direction.

Assemblymembers raised questions about long-term flexibility, legal risk and the state’s role. Assemblymember Dee McKee and others asked whether a future administration could reverse the state’s position. Borough attorney comments indicated the parcels are state-created agricultural parcels and the state’s guidance is determinative; the borough sought to preserve maximum flexibility over the corridor.

Assembly members also discussed interim land use: the borough intends to continue authorizing hay permits or similar short-term uses until final disposition of the parcels. Administration said one farmhouse currently is occupied through August 2025 and the subdivision would help clarify future ownership and management.

Resolution 25-031 passed without objection. The directive moves the matter to land-management staff and planning processes; staff said they would work with the state and the planning commission to finalize the legal subdivision.