Committee reviews lease, environmental fees for two Fort Wainwright schools; administration seeks $232,000 appropriation

Daniel Welch, Natural Resources Division, told the committee the borough's existing lease for Ladd Elementary and Tanana Middle School expired in 2024 and that the Army requires a refreshed lease process, boundary survey and environmental review to renew occupancy on Fort Wainwright.

Welch said the proposed lease term is up to 25 years at no rental rate; the appropriation request of $232,000 would cover administrative application fees (estimated $12,000), a compliance/management fee (estimated $50,000, which the borough is seeking to have waived), contractual services or Army Corps work (the staff estimate assumed a high figure of about $150,000) and a surveying estimate of roughly $20,000. Welch said the Army Corps of Engineers may perform the environmental review, which would help the borough avoid unknown technical costs.

Why it matters: the schools are on federal land, and the borough stated it owns the buildings but not the underlying land; renewed lease terms determine long-term operating conditions for the school district and may include obligations if schools later close. Assembly members pressed staff on what would happen if the district closed the schools; Welch said the borough would negotiate lease terms to avoid onerous removal requirements and that purchasing the land or buildings might be considered as a separate option.

Next steps: staff will continue negotiations with federal partners; the ordinance authorizing the lease and the appropriation was presented and staff will return with details as negotiation and review proceed.