11 ideas for revitalizing Anchorage, as proposed by backers of a sales tax

The group behind a proposal to institute a 3% sales tax in Anchorage has homed in on 11 public amenities facilities the city could choose to build with a portion of the revenue.

Led by the Anchorage Economic Development Corp., a coalition of businesses and organizations developed the measure. If implemented, one-third of the sales tax revenue would go toward capital projects, while the rest would go to property tax relief.

Randy Sulte, one of the Assembly members backing the proposal, and Jenna Wright, CEO of AEDC, presented a list of potential projects and preliminary cost estimates with Assembly members last week. Sulte said the list must be whittled to a total of five to seven projects.

The sales tax, which would sunset after seven years, is estimated to bring in around $180 million a year, leaving about $50 million a year for new facilities.

Here are the current proposals:

• Indoor market: The project would turn the former Nordstrom building into an open-air indoor market. It could have rental spaces for artisan vendors, restaurants and food truck-style stalls, and rentable space for for gatherings. Inspiration for the idea comes from the Oxbow Public Market in Napa, California, Sulte said. Preliminary cost estimates range from $14 million to $24.5 million.

• Ship Creek redevelopment: The project would aim to create a pedestrian-focused 18-acre river walk. It imagines amenities including shops, cafes, restaurants, event spaces and dedicated bike paths, fishing access stairs and ways to highlight Alaska Native culture, such as a downtown branch of the Alaska Native Heritage Center. The project would cost between $3 million and $4 million per acre, with a total preliminary estimated cost of $72 million to $100 million.

• Nordic aquatic center: The idea is to build a year-round water facility with pools, slides, hot tubs, saunas, a lazy river and climbing wall. This could cost somewhere between $26 million to $90 million.

• Four-season trail facilities: Build facilities at Kincaid Park, Goose Lake Park and Westchester Lagoon with infrastructure that would support outdoor activities year-round, including skiing, skating and swimming. These would have space for food concessions, gear rental shops and improved utilities. Preliminary estimates put the cost between $25 million and $35 million.

• Downtown arts and entertainment redevelopment: The project would aim to “revitalize downtown Anchorage’s arts scene by improving the Performing Arts Center, park and pedestrian areas,” according to the presentation. It could include upgraded theaters and outdoor performance areas. The project could cost between $50 million and $100 million.

• Chester Creek Sports Complex: The project would revamp the area. Goals include replacing Mulcahy Stadium and creating a multi-sport outdoor complex in the 35-acre area. It could include pickleball courts, soccer fields, baseball and rugby fields and a disc golf course. The redevelopment could cost between $15 million and $29 million.

• Anchorage Sports Center: Modeled off the Anchorage Dome, the project would bring a 200,000 square-foot, year-round community sports facility to East Anchorage, Sulte said. The facility would cost between $9 million and $22 million.

• Eagle River Sports and Recreation Facility: The facility would be an indoor sports center for basketball, soccer, volleyball and other sports. The project imagines a community hub for youth and adult leagues, tournaments, training and recreational activities. This could cost about $9 million.

• Children’s museum: A facility with interactive exhibits, educational programs and hands-on activities for children and families. The museum could cost between $14 million and $22 million.

• Girdwood arts and recreation district: The project would bring space for galleries, workshops and an RV park to support events and tourism in Girdwood. Creating the district could have a price tag between $7 million and $20 million.

• Municipal fleet replacement: This would fund vehicle and equipment replacement for the police department, fire department and for snow removal. This would cost about $6.5 million annually for seven years.

The proposed ballot measure is sponsored by Assembly members Sulte and Felix Rivera. They and other proponents say the goal is to invest in the city, boosting amenities and quality of life while relieving the tax burden on property owners. They’re aiming to diversify the city’s tax base and capture more revenue from visitors and tourists.

The sales tax proposal has received criticism from several community groups and some Assembly members. They’ve voiced concerns about potential disproportionate impacts on low-income residents while providing big tax breaks to businesses.

The tax proposal also calls for the mayor to appoint a citizen advisory board to oversee projects and spending. The board would recommend adjustments to the project list, recommend spending and sales tax exemptions, Sulte said.

Assembly members on Thursday raised concerns about whether the process for choosing projects was fair and equitable, and about how changes in projects would be made under the proposed process for the advisory board.

“How do we get the widest input possible from the widest group of stakeholders, and potentially folks who maybe not have not yet engaged in the process of nominating” projects? Assembly member Daniel Volland said, adding, “I just want to make sure there’s a seat for everyone at the table.”

AEDC crowdsourced project ideas over the summer through a website, Sulte said. After receiving more than 300 submissions, Project Anchorage formed a selection committee. It narrowed down the ideas using a set of evaluation criteria and then a survey of about 500 residents, he said.

“They took a long list of projects and sent it out to the public, and those numbers are what’s informing the projects that we’re looking at today,” Wright said.

It’s not yet clear when the Assembly will vote on the tax. Sulte said the Assembly plans to hold two more work sessions to discuss the measure before taking it up for a vote.

Two-thirds of the Assembly would need to vote in favor of the tax before Anchorage voters would see it on the ballot in the April city election.