The borough assembly has granted Manager Jeff Good the authority to negotiate a short-term lease with Channel Construction to use a portion of the 6-Mile mill site for a scrap metal recycling operation.

Juneau-based Channel Construction has been running a regional metal recycling operation at the property, which the borough purchased for $2.5 million this summer. Owner William “Shorty” Tonsgard Jr. initially applied for a long-term lease that would allow him to continue operating at the site after the borough took over the land.

The port commission unanimously voted down a motion Sept...