The nonprofit organization would pay $2.3 million for the site, with most of the cash to come from a leftover 2006 government grant, according to paperwork central to the deal.
A key director for the organization is offering almost one-third of the money up front as a down payment and the balance would disappear once Ice Alaska receives and transfers the state grant, said Hank Bartos, who is handling the real estate deal as a neutral, uncompensated agent.
The 2006 state Legislature promised the grant, tentatively held by the Fairbanks North Star Borough while Ice Alaska determined its future.
Bartos said Thursday the deal is imminent. The price is roughly half the number previously floated in talks surrounding Ice Alaska’s current home — land sitting one mile east on Phillips Field Road.
The sale would hand three connected properties on the road’s eastern edge to the organization. Borough Mayor Luke Hopkins said the deal is big news for Fairbanks, where local officials and agencies have taken explicit steps to improve the winter economy.
But Bartos said the group is thinking beyond just the move and wants to position itself to grow into a year-round operation.
Ice Alaska hosts annual ice carving championships, which last for part of the winter. Yet Bartos said they are thinking bigger, and envision construction of neighboring hotels and restaurants and nearby room for ice fishing and sled dog rides as part of a northern “Disneyland”-like attraction. He said key director Dick Brickley is looking to buy neighboring land for a for-profit expansion.
“It’s going to be a super deal,” he said.
The Borough Assembly in April authorized Hopkins to cut Ice Alaska a check for a new site — without specifying where. The Alaska Railroad Corp., its current landlord, had raised the nonprofit’s rent in recent years to match estimated market value and has said it regularly entertains offers for other uses at the site.
Chris Aadnesen, the railroad’s president, told a Fairbanks audience Tuesday his corporation has promised a team of resources to help Ice Alaska and its volunteers with the move.
Aadnesen said he hopes it gives the nonprofit plenty of time to prepare for next winter.
“We’re excited to do that. We’re ready,” he said. “We’re going to have a committee get together and go see the board of Ice Alaska, and find out how we can help, very soon.”
Ice Alaska is organizing the move starting this weekend and Bartos said Brickley is fielding offers from anyone interested in volunteering.
The Legislature promised the grant — originally $2 million — to help Ice Alaska build a new home. Subsequent plans would have moved Ice Alaska to recreational land south of downtown, and Ice Alaska spent one-tenth of the expected aid for architectural work before focus returned north to Phillips Field Road, for years the site of the nonprofit’s World Ice Art Championships.
Local government would be in line to recoup the investment — take back the land — if Ice Alaska were to fold one day. Bartos said the organization will move its existing building from its old site to the new property.
Bartos also said Ice Alaska still has much work to do to prepare the largely undeveloped land — tentatively named the George Horner Ice Park, after the property’s previous owner — for the winter, including major investment in electrical distribution and sunlight screening. He said plans to expand operations carry the promise of increased revenue and, with it, financing possibilities.
“This means they’ll be stable because they will own the land and can make improvements,” he said.
The land belonged to the late Horner, a former president of H&H Contractors, and is now owned by Geohorn LLC, his family’s business. The three lots total 25 acres and straddle Marian Drive at the west end of Phillips Field Road near University Drive.
The tentative 30-year purchase agreement would leave Ice Alaska on the hook for $10,000 monthly payments, but Bartos said arrival of the state grant would erase the need for that obligation. Hopkins said his office and the nonprofit must still sign paperwork transferring liability for the land to the nonprofit before he can cut a check.
Contact staff writer Christopher Eshleman at 459-7582.
If Ice Alaska was properly doing their jobs, they should be flush with donations. They are not, this is a prime indicator of a poorly run operation. They obviously do not have an accountant because a real one would be asking how they plan on paying for these ideas.
Even the Wild Turkey Federation manages to stock away about $30-40,000 a year in ONE night, and they are not the only non profit that does it in Fairbanks.
The management of Ice Alaska has all these Pie in the Sky ideas, they need to come up with some feet on the ground ideas to pay for it.
JoeAlan, I don't need to know much to see a problem.
..A non-profit spending $1.7 million in state grant money on something they really can't afford.
..Leadership purchasing adjacent property to make money off it.
Sound almost like insider trading to me.....
Pay no attention to "youneedhelp". He knows nothing about Ice Alaska though he acts like he /she knows everything about it. Just read the comments on previous articles about Ice Alaska to see the lies (and a few half truths) for yourself
if you need a good laugh. Probibly upset his buddies will not get the 1.7 million? Hmmmm.
Comparing Ice Alaska to Enron? lololol Oh please.
Are there stock options for Ice Alaska? NO
This where gossip, skepticism, unfounded claims go array.
Simply put, Ice Alaska is a collection of ice carving enthusiasts with a passion for ice art beauty. It's not a ponzi scheme, stock option, corrupt business entity.
Stick to your science fiction publications. Your imaginations desperately need some better outlet.
Fortunately, tourists won't be subjected to your negative drama.
Unfortunately Ice Alaska has alienated almost every entity in town that could provide sponsor support to them.
Based on past behavior, I would find it hard to believe that many outside the current volunteer base would be willing to part with much of their hard earned money to support them beyond purchasing entry to the event.
Maybe when they become fiscally responsible with the funds they have that will change, but that is down the LONG road to redemption.
~however~
.....it reads to me that Ice Alaska needs support, sponsors, promotion.
Sounds like the perfect opportunity for ingenuity, creative financing, and an Ice Alaska fund raising event.
WTG Ice Alaska.
This is a plan I can partially back. I find it difficult to believe they can do the rest based on the fact that they have apparently never turned a profit and they still have outstanding debt that will continue to eat at the bottom line every month.
Good luck Ice Alaska!