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Report: Alaska LNG project could cost Municipality of Anchorage millions

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Report: Alaska LNG project could cost Municipality of Anchorage millions


Afternoon sun hits a portion of downtown Anchorage and the Chugach Mountains on November 19, 2025. (Marc Lester / ADN)

Anchorage Mayor Suzanne LaFrance told the state House Finance Committee on Monday that the Alaska LNG megaproject could cost the municipality up to $173 million over nine years because of the city’s current tax structure, citing a new report.

The project’s 800-mile pipeline, which would move gas from the North Slope to Southcentral Alaska, would not pass through Anchorage. As a result, the city would not receive direct property tax or gas-volume tax from the project, she said.

But thousands of workers associated with construction and related activity would be based in Anchorage, she said.

“Our community will serve as a logistical, operational, transportation, and administrative hub throughout the life of the project,” she said. “That will bring important economic benefits, but it will also create real demands on local government services.”

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“Since we rely on property taxes, we don’t get new tax revenues from an influx of people until new homes and commercial properties are built and added to our tax rolls,” she said. “That takes years, but there will be immediate pressure on public safety, emergency response, roads, schools, and other municipal services.”

Gov. Mike Dunleavy called the Legislature into special session to weigh his proposal to cut property taxes to support the LNG line and replace them with a much smaller tax based on gas volume moving through the project.

Proponents say it would deliver long-term natural gas to Alaska, lowering energy costs, and after exports begin, it could provide billions of dollars in revenue for three decades even with the tax cut.

Skeptics fear that too large a rate cut could saddle municipalities and the state with high, uncovered costs to deal with the influx of workers and their demand on roads, police, housing and hospitals.

LaFrance said the municipality supports a community impact fund that would provide some revenue to Anchorage and other communities to help offset costs, she told the House Finance Committee. That idea, and a revenue sharing measure, are currently included in an amended version of the governor’s bill before the committee.

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The concerns come as the LaFrance administration takes aggressive steps to build thousands of new homes in the coming years to address a tight housing market in Anchorage.

The report, prepared for the Anchorage Community Development Authority by economist Jonathan King with Halcyon Consulting, found that the project will “create a significant structural fiscal gap for the municipality.”

Lacking a sales tax that would provide immediate revenue as workers arrive, the city would instead lose large amounts of money during construction even if new housing is built, the report says.

But even in the most optimistic scenario, with new housing built in Anchorage for 100% of the workers, the city “will face a structural deficit” several years into the project, the report says.

With no new housing built for the workers, the city will face a cumulative deficit of $173 million over nine years, the report says. If new housing is built for all the workers, the city faces a nine-year deficit of $23 million.

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“Avoiding a deficit likely means seeking new tax revenue outside the tax limit calculation, modifying the tax limit calculation, or receiving project impact payments from the state or project owners,” the report says.

Rep. Jeremy Bynum, a Ketchikan Republican, said that there would also be positive long-term effects, including from low energy costs that can support the economy and new industries, and population growth that can shore up dwindling school enrollment.

Nolan Klouda, policy director for LaFrance, said that once exports to foreign countries begin, the project’s gas price can be very affordable for Anchorage and other communities.

“We’re always very concerned about anything that could cause the cost of living to go up,” Klouda said. “So I think that having low-cost heating and power from that natural gas is really critical for our economy.”





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Commentary: What’s in a name? A confounding U.S. Senate race

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Commentary: What’s in a name? A confounding U.S. Senate race


As the fight for control of the U.S. Senate grows increasingly competitive, eyes are turning north to Alaska and a contest pitting, among its contestants, Dan Sullivan vs. Dan Sullivan — and, no, it’s not about a candidate living a double life or wrestling demons within himself.

Confused?

That may be the point.

Daniel S. Sullivan is Alaska’s two-term Republican senator. He’s seeking reelection in November.

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Daniel J. Sullivan is a retired school teacher and political novice. He calls himself an independent Republican cut from the same polar-fleece lining as the state’s maverick GOP senator, Lisa Murkowski.

Political handicappers give Daniel J. Sullivan little chance of winning the highly competitive race. So is there some other reason he’s running? Is his presence on the ballot intended to draw enough befuddled voters away from the incumbent to elect his Democratic challenger, former Rep. Mary Peltola?

That’s what Republicans think. And you don’t have to be standing on the banks of the Kenai River to smell something fishy.

When Daniel J. Sullivan launched his campaign in May, he did so as plain old “Dan Sullivan,” with a website closely resembling that of the incumbent. The press release announcing his candidacy was written by one “Amber Lee.” There is an Alaska political strategist named Amber Lee who has supported Peltola in the past.

(For such a sparsely populated state, there sure are a lot of doppelgangers in this political saga.)

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Election officials say Daniel J. Sullivan asked to appear on the ballot as a Republican, even though he hadn’t previously been affiliated with the party. In fact, over the years he’d contributed money to Democrats, including Peltola. He also asked to be identified on the ballot as “Dan S. Sullivan” before changing his mind, an attorney for the state told Alaska’s Supreme Court, which took up the matter late last month.

“That’s not an innocent mistake, or random mistake,” Chris Murray told the justices. “There’s a lot of other letters in the alphabet that could have been a typo.”

The political consultant Amber Lee declined to comment when reached by the Anchorage Daily News. She did not respond to an email from your friendly political columnist.

For his part, Daniel J. Sullivan denied any malice or mischievous intent.

“This is my choice,” he told the Associated Press. He said he had no contact with Peltola’s campaign — “zero, none, zilch” — and denied anyone from the state Democratic Party or any national Democratic operatives had contacted him to run.

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Peltola’s campaign has adamantly denied any involvement. So, too, have the Alaska Democratic Party and the Democrat’s national Senate campaign committee.

After an investigation, Daniel J. Sullivan was removed from the Aug. 18 primary ballot. Carol Beecher, head of Alaska’s Division of Elections, said his candidacy was intended to “confuse or mislead” voters.

Sen. Dan Sullivan (R-Alaska) attends meetings at the U.S. Capitol in 2025.

(Francis Chung / Politico via Associated Press)

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But the state’s high court overturned that decision, instructing elections officials to figure out a way to keep Daniel J. Sullivan’s name on the ballot “within the confines of existing Alaska ballot design law.”

It’s been nearly 20 years since the state sent a Democrat to the U.S. Senate, but this election looks to offer the party its best shot in years, thanks to Peltola.

Jessica Taylor, of the nonpartisan Cook Political Report, called her “the ideal recruit,” given Peltola’s fundraising prowess and her ability to outperform other Democrats by avoiding the toxic taint of the national party. (Peltola’s slogan —”Fish, family and freedom” — is about as far removed from the Whole Foods-shopping, Prius-driving Democratic image as it gets.)

Democrats need to win four seats in November to take control of the Senate, from a menu that includes Alaska, Iowa, Maine, North Carolina, Ohio and Texas while, at the same time, hanging on to contested Senate seats in Georgia, Michigan, Minnesota and New Hampshire. The Cook Political Report rates Alaska as one of the few toss-up races in the bunch.

The state has a ranked-choice election system in which the top four vote-getters advance to November. Ivan Moore, who does nonpartisan polling in Alaska, said that system virtually ensures Sullivan and Sullivan will face off against each other in a runoff that includes Peltola. At that point, Moore suggested, the choice to most voters will be clear.

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Under the solution devised by state election officials, the senator will be listed as “Sullivan, Dan S.” and as “(Registered Republican) Incumbent.” His challenger will be identified as “Sullivan, Daniel J. Jr.” with no party affiliation.

“I imagine there’s some people out there who don’t know what the word ‘incumbent’ means,” Moore said. “But I find it pretty hard to believe that people who are dead set on voting for Dan S. Sullivan, the senator, are going to go in the voting booth and vote for the wrong person when Dan S. has the word ‘incumbent’ next to his name and Dan J. doesn’t have any party affiliation.”

Political hijinks are nothing new. But the level of partisan gamesmanship seems to be growing as the old saying about all being far in love and war is increasingly applied to campaigns and elections.

It was something of a novelty in 2002 when Democrats meddled in the California Republican primary to promote their preferred candidate. Now it’s common practice.

Redistricting, or redrawing the nation’s congressional lines to reflect changes in population, used to occur once a decade following the national census. But spurred by President Trump, the last year has seen an arms race among states, including California, which gerrymandered their political maps to boost a preferred party and, essentially, decide House races before a single ballot is cast.

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Politics, another old saying goes, ain’t beanbag.

But it doesn’t have to be this slanted and cynical. There’s no need for fishy-smelling candidates like Daniel J. Sullivan.



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Alaska Sports Scoreboard: July 11, 2026

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Alaska Sports Scoreboard: July 11, 2026


High School

Legion Baseball

Sunday

Issaquah (WA) 7, Wasilla 5

Monday

Dimond 14, Eagle River 4

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West 13, Kenai 4

Service 2, East 1

Tuesday

Roseburg (OR) 16, Wasilla 5

Kenai 7, Dimond 2

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Kenai 15, Dimond 4

Palmer 5, Service 4

Palmer 20, Service 11

Chugiak 8, East 7

South 3, Ketchikan 1

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Fairbanks 10, Chena River 4

Wednesday

West 4, Palmer 3

Chugiak 13, Eagle River 3

South 4, Ketchikan 3

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Ketchikan 4, South 1

Thursday

Service 2, Dimond 1

Ketchikan 9, South 6

Friday

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Wasilla 20, Dimond 4

Palmer 11, Eagle River 5

Auke Bay 12, East 2

Fairbanks 13, Chena River 5

Kenai 15, West 5

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Kenai 24, West 8

Saturday

Chena River vs. Fairbanks (Late)

East vs. Auke Bay (Late)

Auke Bay vs. East (Late)

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Palmer vs. Wasilla (Late)

Alaska Baseball League

Sunday

Mat-Su Miners 7, Anchorage Bucs 4

Chugiak-Eagle River Chinooks 18, Peninsula Oilers 7

Monday

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Mat-Su Miners 14, Anchorage Glacier Pilots 3

Peninsula Oilers 11, Chugiak-Eagle River Chinooks 4

Tuesday

Anchorage Bucs 8, Anchorage Glacier Pilots 7

Peninsula Oilers 7, Chugiak-Eagle River Chinooks 6

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Wednesday

Mat-Su Miners 10, Anchorage Glacier Pilots 0

Chugiak-Eagle River Chinooks 5, Peninsula Oilers 3

Thursday

Peninsula Oilers 6, Chugiak-Eagle River Chinooks 5

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Mat-Su Miners 7, Anchorage Glacier Pilots 2

Friday

Anchorage Bucs 2, Mat-Su Miners 0

Saturday

Anchorage Bucs vs. Anchorage Glacier Pilots (Late)

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Mat-Su Miners vs. Peninsula Oilers (Late)





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Delegation Welcomes Corps Permit for King Cove Road

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Delegation Welcomes Corps Permit for King Cove Road


 

Locations of King Cove and Cold Bay on the Alaska Peninsula. Image-NOAA Charts

Anchorage, AK—U.S. Senators Lisa Murkowski and Dan Sullivan and Congressman Nick Begich (all R-Alaska) today applauded the U.S. Army Corps of Engineers’ (Corps) approval of a permit to facilitate construction of a life-saving road between the isolated community of King Cove, Alaska and nearby Cold Bay. The one-lane gravel connector will provide reliable transportation access from King Cove to Cold Bay, which is home to an all-weather airport.

“This is more good news for King Cove and all who care about the health, safety, and wellbeing of the hundreds of people who live there,” Murkowski said.“After decades of relentlessly making the case and pushing with everything we have, this life-saving road is finally almost a reality. A combination of careful analysis and common sense from the Trump administration—the Department of the Interior and now the Army Corps—have brought us to this point. I thank them for their continued commitment to protecting and improving these Alaskans’ lives.”

“For Alaskans, the decades-long King Cove Road impasse has been a symbol of an uncaring, out-of-touch, faraway federal government that prioritizes the lives of birds over people,” said Sullivan. “The great residents of King Cove time and again have kept hope alive, despite setbacks, most recently when the Biden administration disregarded the voices of the community and withdrew the previously approved land exchange. The permit issued by the Corps of Engineers today is vindication for King Cove, putting us closer than ever before to delivering a lifesaving, 11-mile, single-lane gravel road to the all-weather airport in Cold Bay. I want to thank the Administration, especially Secretary Burgum and Assistant Secretary of the Army for Civil Works Telle, for listening to Alaskans, for caring about their safety and well-being, and for putting us on the cusp of a historic breakthrough for safe and reliable access for King Cove.”

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“This permit approval by the U.S. Army Corps of Engineers is a critical milestone in a decades-long effort to provide the people of King Cove with the infrastructure they need to build an essential life-saving road,” said Begich. “For nearly 50 years, the community has advocated for a road connecting King Cove to the all-weather airport in Cold Bay. This project addresses an obvious public safety need and will provide a reliable route for emergency access in adverse weather conditions. I commend everyone who helped move this project forward, from residents who never stopped advocating, to Secretary Burgum, the Army Corps of Engineers, Governor Dunleavy, and Alaska’s congressional delegation over many years.”

King Cove is located between two volcanic peaks near the end of the Alaska Peninsula, and its small gravel airstrip is typically closed by bad weather for more than 100 days each year. Many flights not canceled are delayed by wind, turbulence, fog, rain, or snow squalls; travel by boat is often impacted by waves that can top 12 feet and the lack of suitable dock infrastructure in Cold Bay. By comparison, Cold Bay, which is less than 30 miles from King Cove, has one of the longest runways in the state and it is closed an average of just 10 days per year.

At present, there are roads leading out of both King Cove and Cold Bay but no connection between them. The lack of dependable transportation access to Cold Bay routinely forces emergency medevacs from King Cove that risk the lives of patients and responders alike. It also creates significant quality-of-life issues, ranging from King Cove residents’ inability to regularly receive mail to week-long travel delays for students returning home from various activities.

King Cove residents have sought this life-saving connector road for decades. In late 2025, a major breakthrough occurred when the Trump administration conveyed490 federal acres to the King Cove Corporation in exchange for 1,739 acres of KCC-owned land near the Kinzarof Lagoon and the relinquishment of selection rights to more than 5,430 acres still owed to KCC under the Alaska Native Claims Settlement Act.

The Corps permit issued this week is valid for five years and allows for dredge and fill activities to occur on just over five acres of land. For perspective, the Izembek National Wildlife Refuge spans 315,000 acres and there are at least 130 million acres of wetlands across Alaska.

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More information is available here.

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