Trust Land Office discusses MOUs, Petersburg subdivision delays and $12M+ annual land revenue
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Summary
TLO officials told the Senate Finance Committee the Trust manages about 1,000,000 acres to support beneficiaries, anticipates more than $12 million in revenue from trust lands this year, uses MOUs with local governments for development, and described a large platted Petersburg subdivision stalled pending local approvals and utility funding.
Justy Warner, executive director of the Trust Land Office, told the Senate Finance Committee on Feb. 10 that the TLO manages roughly 1,000,000 acres of Trust lands and expects more than $12 million in revenues this year.
"The trust land office sits within the Department of Natural Resources and manages the trust 1,000,000 acres of land to generate revenue for the trust and its beneficiaries," Warner said. She described asset classes including forestry, minerals, energy, commercial ground leases and program‑related real estate, and said revenues from those activities support Trust work for beneficiaries.
Warner outlined the TLO's approach to community development: the office is increasingly using memoranda of understanding with local governments "so we can ensure that the paths that we are both taking, are leading to the same place," and is pursuing phased subdivision approaches that consider lot size, absorption rates and road and utility costs.
As an example, Warner said a large platted subdivision in Petersburg remains stalled because the Trust needs additional local signatures on the plat and agreement on phasing and utility plans. Senator Stedman urged local officials not to sign plats that leave communities waiting decades for roads and utilities and asked whether an equity infusion program with Alaska Housing Finance Corporation (AHFC) could be used to bring projects up to a financially viable threshold.
Warner said the Trust had applied to AHFC for funds but had not been awarded them, and that the TLO would follow up with the committee with more detail on any requests and on the Petersburg project. Committee members asked for maps and parcel-level information; the Trust agreed to provide those materials after the hearing.
Trust leaders emphasized they must ensure a positive return on Trust funding before advancing development projects and that phased approaches and local coordination can reduce long‑term risk to communities.
The committee also discussed interest revenues from land financing (about $846,000 in FY25) and the TLO's MOUs with Ketchikan, Wrangell and Kenai to align local planning and development goals.