Wrangell’s been debating on what to do with the six-mile deep water port site after it bought the property four years ago, and the included 42 acres of uplands.
After marine fabrication company JAG Marine Group took over Ketchikan’s large shipyard last September, Alaska State Representative Jeremy Bynum introduced company leaders to Wrangell officials. Talks of a partnership followed.
JAG fabricates, repairs and maintains large vessels, including icebreakers, ferries and federal government ships.
Fast forward, and now JAG Marine plans to build a large-scale vessel shipyard in Wrangell, potentially being the biggest in the region. City leaders say the project could significantly boost the local economy.
“It’s exactly the opportunity we’ve been looking for to create jobs in Wrangell and attract families to Southeast Alaska and the region,” Wrangell Borough Manager Mason Villarma said.
The borough estimates the company will bring about 150 jobs to the community.
Development of the partnership swiftly evolved. On Jan. 28, the company and borough executed a Memorandum of Understanding, establishing the framework of collaboration for the shipyard.
Short-term, three-year lease agreement (for now)
And one month later, the borough assembly approved a short-term, three-year lease agreement with JAG.
Villarma said this short-term lease is the first phase, which will secure the site and show commitment.
After revenue begins generating, then a longer term 40 or 50-year lease is the next step. He said this could be the industry that brings back jobs that left after the decline of the timber industry in Wrangell in the 90s.
“The time was 20 years ago”
Villarma said it’s finally a chance to strengthen the local economy.
He said, “The time was 20 years ago, and we’re making up for lost time.”
He said JAG’s shipyard will be bigger in size compared to Ketchikan and Seward, with advanced capacity and a large-scale haul-out ability, known as a Synchrolift. It will serve as an overflow yard from their properties in Ketchikan and Seward.
Plans to increase housing
Tim Jagielski II, JAG’s senior project manager, said the company plans to build housing, eventually.
“Once we have a guy here for a year, then they have the decision,” he said. “We try to get them to commit to moving to the community.”
He said the shipyard buildout will take about 36 months, so housing is a must.
“Could be Wrangell’s biggest feather in their cap, if we’re able to pull it off.”
Villarma said this is outside the scope of a federal disaster grant the borough is applying for.
The local government could receive up to $50 million to improve the deep water port, downtown waterfront and a water loss flume project.
Villarma said the biggest risk of the partnership would be getting housing and supporting infrastructure fast enough. And on the flipside, if it falls through, the borough will have to look at other ways to bring industry in and attract jobs. He said increasing the population from a little over 2,000 people to about 500 more is a key goal.
“This is a big deal, and probably could be Wrangell’s biggest feather in their cap, if we’re able to pull it off,” he said.
The borough will fund $550,000 of the first phase, which includes design costs. JAG Marine Group is committed to $200,000. Together, the total makes up 30% of design costs for the shipyard.
The exact timeline of when the shipyard will be completed is unknown.
