Ice Alaska feeling financial heat

FAIRBANKS - Ice Alaska is in danger of melting away.

The nonprofit organization formed 20 years ago cannot pay a steep rent increase to the state-owned Alaska Railroad Corp. for the land where it stages its annual ice sculpture and artwork event.

The railroad wants to develop its land into a business park. Hotel and restaurant owners have also expressed interest in leasing the land.

Jim Kubitz, the railroad's real estate manager, says "everyone asks me the question, 'When is Ice Alaska leaving?'"

"We all love the event," Kubitz added. "It's a spectacular event. The problem is it's seasonal. It's a six-week event, and then there's nothing for 10 months."

Ice Alaska Chairman Dick Brickley is pressing for a hearing before the Alaska Legislature on whether the state should give away the land.

And Fairbanks North Star Borough Mayor Luke Hopkins is trying to negotiate better lease terms and a borough takeover of Ice Alaska's lease.

"I don't want Ice Alaska to go away," Hopkins said.

Hopkins asked the railroad to extend the April 1 deadline so the lease negotiations can continue. Talks between the borough and the railroad began during former Mayor Jim Whitaker's term and are continuing.

Meanwhile, the railroad continues to press to move the Ice Park across the river to Pioneer Park. Brickley opposes a move.

"No, it's too big to move," the Ice Alaska chairman said. "Somebody else may want to do it, but our group (Ice Alaska's board of directors) won't. It's way too big."

Brickley also opposes a possible compromise on a lease if the compromise involves the railroad continuing to control the land.

This year will be Ice Alaska's last year unless the Legislature takes action, Brickley said.

"We are asking for the ground," he said.

Ice Alaska's problems arose a few years ago when the railroad increased its rent. By state law, the railroad must get fair market value for its properties.

Ice Alaska was given an ultimatum. Move off railroad property by April 1, 2010, or pay $7,744 per month in rent an increase from $3,700 plus $71,000 in back rent, Brickley said.

An aide to Fairbanks Sen. Joe Paskvan said the Interior Democrat is planning to hold a hearing in the Senate Labor and Commerce Committee. The date of the hearing is yet to be determined.