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Assembly enacts Ordinance 26-01 approving PILT agreement with Teck Alaska for Red Dog Mine

Northwest Arctic Borough Assembly · January 26, 2026
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Summary

On Jan. 27, 2026 the Northwest Arctic Borough Assembly unanimously enacted Ordinance 26-01 to approve a payment-in-lieu-of-taxes agreement and memorandum of commitment with Teck Alaska Incorporated for the Red Dog Mine; the agreement includes equipment commitments for borough schools and was approved after legal recommendation to 'do pass.'

The Northwest Arctic Borough Assembly voted unanimously on Jan. 27, 2026 to enact Ordinance 26-01, approving a payment-in-lieu-of-taxes (PILT) agreement and a memorandum of commitment with Teck Alaska Incorporated covering the Red Dog Mine.

Legal counsel Matt Mead summarized the ordinance and recommended the Assembly “do pass.” BAF Chair Reid Magdanz acknowledged the members of the negotiation team and thanked them for their work. President Craig McConnell said the agreement will affect the borough budget, noting a potential $2 million reduction in other budget lines; McConnell also noted that Teck agreed to supply vape sensor equipment to borough schools as part of the commitments discussed during negotiations.

Derek Haviland Lie moved to enact the ordinance and Elmer Armstrong Jr. seconded. The motion carried unanimously by roll call vote. The Assembly’s earlier roll call recorded a quorum of assembly members present for the vote.

Why it matters: PILT agreements define local revenue flows tied to large industrial operations and affect available reserves and budgeting for services across the borough. Assembly members questioned the timing and fiscal implications and emphasized that community-level benefits and risks should be weighed in future presentations.

Next steps: With enactment, borough staff will proceed with implementing the memorandum terms and monitoring the agreement’s fiscal impact in upcoming budget reports. The Assembly noted it will continue to invite negotiation partners and stakeholders for follow-up briefings as warranted.