Borough officials and industrial partners gathered — with about 100 residents in attendance — at the Nolan Center on Feb. 19 to discuss a sweeping redevelopment plan aimed at reviving the town’s economy.

The proposal hinges on the borough’s pending application for a $50 million federal disaster rebuilding grant following the deadly 2023 landslide. It seeks to modernize the downtown waterfront, build a deepwater port at 6-Mile, and attract a small data center to town.

The meeting served as a showcase for partnerships the borough has cultivated over the past two years.

“It’s a transformation effort to revive the economy, catalyze investment and develop new economic opportunities,” said Kate Thomas, the borough’s economic development director. “We want to ensure transparency and opportunity for public engagement.”

In addition to hinging on the federal funding, the projects also are dependent on the private companies proceeding with millions of dollars of investments in their proposed developments.

The centerpiece of the plan is the redevelopment of the former 6-Mile Mill property, which the borough owns. The plan includes a shipyard operated by JAG Marine Group. JAG co-owner Tim Jagelski Jr. described a facility capable of building and maintaining large vessels, including U.S. Coast Guard icebreakers.

“We’re looking at 150 to 180 direct jobs,” Jagelski said. He noted that the facility would use a “syncro-lift” system to move ships. This technology allows multiple vessels to be worked on at once. To support this workforce, Jagelski mentioned that the company is prepared to build housing immediately once funding is secured.

“If the build-out is going to take 36 months, we’re going to need that housing there ready to roll on day one,” he said.

JAG already operates a shipyard in Ketchikan and a smaller facility in Seward.

The mill site also could host a data center owned and operated by Greensparc. CEO Sam Enoka, a former Alaska high school basketball star, returned to his home state to pitch the idea. He explained that the cool climate and available hydroelectric power make it an ideal spot for servers to support the demand for artificial intelligence.

“Power really is the biggest bottleneck right now to the development of new data infrastructure,” he said. He argued that the center would become a “valuable utility customer” with the borough, which could help lower electricity rates for all residents by buying a substantial amount of power.

The federally funded work at 6-Mile would include roads and utilities and strengthening the shoreline. The private developers would be responsible for their own facilities.

The borough also plans to expand its downtown waterfront significantly. City Hall is looking to the federal money to add fill to expand the Marine Service Center, and to build a 150-foot-long floating addition at the north end of the City Dock and a new mooring dolphin.

Rick Erickson, representing Cruise Line Agencies of Alaska, explained that floating docks are safer and more efficient than fixed ones.

“The industry started building bigger ships,” he said. “A floating component benefits the traffic you have coming in here now.” It avoids steep gangways at low tides.

In a separately funded project, the borough would sell bonds to pay for fill along the waterfront from the Marine Service Center to the unused barge ramp.

That project would create an access point for a new floating dock built by American Cruise Lines for its smaller cruise ships and also a walkway for pedestrians. Officials plan for the fill work this summer. The cruise line targets completion of the dock for May 2027.

The borough could see as many as 72,000 cruise passengers this year. Even though this is a small fraction of the 1.7 million expected in Juneau, officials say the growth must be managed carefully.

Borough Manager Mason Villarma emphasized that the town is not looking to become a crowded tourist trap. He addressed concerns about pedestrian flow and congestion. “This design really does act as a gateway,” he said of the downtown waterfront development. “It allows for a smooth transition of passenger embarkments and disembarkments.”

The third piece of the grant application for federal aid involves replacing the decades-old flume that diverts water into the town’s reservoirs. Public Works Director Tom Wetor warned that the current 1960s-era wooden structure is failing and leaky.

“We probably lose about 15% of the water going into our reservoirs in the current flume,” Wetor said. The new concrete structure would ensure the borough has enough water to serve residents and new industries like the shipyard.

Residents at the meeting expressed both excitement and caution. Some questioned the impact of a growing transient workforce on the housing market. Others wondered if City Hall would be moved. Villarma confirmed City Hall is staying put.

“We focus on community priorities in this town,” he said. “No new City Hall. We’re going to stay in that sucker for another century.”

“Wrangell has had a series of ups and downs,” Villarma said. “The goal here is to recapitalize our existing infrastructure, support the businesses that are here, and bring in new commerce.”