by Jonathon Dawe / Wrangell Sentinel

The borough assembly took a step toward attracting private investment in building and operating a shipyard at the 6-Mile mill property, which the borough purchased for $2.5 million more than three years ago.

During its Dec. 16 meeting, the assembly voted to approve a memorandum of understanding (MOU) with Seattle-based JAG Marine Group. The agreement sets the stage for a long-term public-private partnership at the 6-Mile property, which Wrangell officials want to develop as a deepwater port.

If JAG, which runs shipyards in Ketchikan and elsewhere, decides to build a new operation in Wrangell, it could lead to an investment in a $150 million shipbuilding and repair facility and create up to 400 jobs, Borough Manager Mason Villarma told the assembly.

Under the terms of the MOU, the borough and JAG Marine Group agreed to start negotiations within 90 days, with the “shared goal” of submitting a lease to the assembly for its consideration within six months.

“The 6-Mile mill site presents an exciting opportunity for industrial development in the City and Borough of Wrangell,” JAG co-owner Tim Jagielski said in a written statement on Friday, Dec. 19. “JAG Marine Group looks forward to working with the Wrangell leadership team to evaluate and explore opportunities.”

Villarma emphasized the proposed 6-Mile development capitalizes on Wrangell’s strategic geography. Located approximately 700 miles from both Seattle and Anchorage, the borough offers a location protected from tsunami threats, a factor he said was attractive to the developers.

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