DNR commissioner testifies before Senate committee on controversial land transfer near Houston

Alaska’s Department of Natural Resources commissioner went before members of the Senate Resources Committee in Juneau on Oct. 26 to answer questions about a proposed land transfer near Houston. Some community members worry that transferring the nearly 20,000 acres could open the door to data center development, and some state lawmakers have questioned whether the transfer is legal. 

If approved, DNR would transfer the land at no cost to the state’s industrial development agency, the Alaska Industrial Development and Export Authority. Both agencies have been vague about what the land would be used for. 

DNR’s preliminary decision document lists several possible uses, including logistics hubs, data centers, utility development and gravel quarries. Sen. Bill Wielechowski, D-Anchorage, said it was hard to evaluate the transfer without knowing more. 

“When AIDEA was here, they testified that they weren’t really sure what they would use the land for,” he said. “The thing that I’m struggling with is, if it’s the department’s obligation to only transfer if there’s a public purpose, how can you transfer without knowing what the purpose is?” 

DNR received over 2,000 comments about the land transfer during a public comment period that ended in September. Community councils across the area have also opposed the transfer, including the Meadow Lakes Community Council, Willow Area Community Organization and the Houston City Council. The Matanuska-Susitna Borough also formally opposed the transfer. 

DNR Commissioner John Crowther, who was subpoenaed by state lawmakers to appear before the committee, outlined some of AIDEA’s possible uses for the land. 

“They wanna do things like build infrastructure that receives an annuity-like return,” he said. “They wanna build infrastructure that enables development or investment. They wanna partner with an industrial developer to build a site of some kind. They wanna partner with local government to build housing. You know, they’ve identified those kinds of things as potential projects.”

Sen. Forrest Dunbar, D-Anchorage, asked Crowther to explain how he would determine if a form of private development aligns with public interest. 

“As you’re making a decision about the public interest, if you’re giving it to an agency that’s saying explicitly we’re gonna do private development and it might be a data center or something else, is there any kind of private development that wouldn’t meet the public interest?” he asked.

Crowther was unable to say where that line lies. 

State lawmakers also asked the commissioner if the decision might get pushed through before a new governor takes office, as well as whether this type of transfer could set a precedent for future applicants. 

The commissioner told the committee that both are possible.

Toward the end of the meeting, committee chair. Cathy Giessel, R-Anchorage, spoke to the no-cost nature of the transfer.

“It feels like an appropriation, an appropriation of a very valuable asset, and that is Alaska land, Alaska public land,” she said. “So that authority rests with the Legislature, and that raises questions.”

The meeting also addressed a possible land transfer at Port Mackenzie. That land has existing agricultural covenants, which also has drawn some public concern. 

DNR is still working on a final decision for the 20,000 acres near Houston.