The Knik Arm Bridge Mega-Project
The Knik Arm Bridge mega-project would consist of a toll bridge across Cook Inlet’s Knik Arm from Anchorage to Point MacKenzie and numerous miles of access roads on both sides of the bridge. To avoid passing through military land, the Knik Arm Bridge and Toll Authority (KABATA) chose a bridge access route through the historic Government Hill neighborhood of Anchorage. To keep costs down, KABATA picked a bridge design consisting of an 8,200 foot bridge attached to a mile of gravel-supported, offshore causeway (rather than a longer bridge and little or no gravel-supported causeway). The Knik Arm Bridge likely will cost approximately $700 million for its first phase and approximately $800 million for its second phase (which would connect it to the Seward Highway rather than downtown Anchorage and expand the bridge to four lanes from two), i.e., vastly more than most Alaska road projects. With the worldwide financial downturn and the “extraordinary risks” associated with the project identified by an independent engineering team contracted by the state, private investors are likely to be reluctant to invest in this toll-revenue project without a revenue guarantee from the state. To date, KABATA has spent approximately $47 million. For more information see www.knikbridgefacts.org.
What is the Knik Arm Bridge? The Knik Arm Bridge mega-project would consist of a toll bridge across Cook Inlet’s Knik Arm from Anchorage to Point MacKenzie and numerous miles of access roads on both sides of the bridge. To avoid passing through military land, the Knik Arm Bridge and Toll Authority (KABATA) chose a bridge access route through the historic Government Hill neighborhood of Anchorage. To keep costs down, KABATA picked a bridge design consisting of an 8,200 foot bridge attached to a mile of gravel-supported, offshore causeway (rather than a longer bridge and little or no gravel-supported causeway). The Knik Arm Bridge likely will cost approximately $700 million for its first phase and approximately $800 million for its second phase (which would connect it to the Seward Highway rather than downtown Anchorage and expand the bridge to four lanes from two),1 i.e., vastly more than most Alaska road projects. With the worldwide financial downturn and the “extraordinary risks” associated with the project identified by an independent engineering team contracted by the state,2 private investors are likely to be reluctant to invest in this toll-revenue project without a revenue guarantee from the state. To date, KABATA has spent approximately $47 million. For more information see www.knikbridgefacts.org.
What is Needed? The Parnell Administration and Anchorage decision-makers should not support the Knik Arm Bridge until the Administration and the legislature assess fiscal and other concerns related to the project, and ensure that the proposed Public-Private Partnership contains adequate protections for the state, the affected communities, and the public. This requires:
1) Rigorous analysis of bridge trip estimates which the prospective toll revenues are based on. Wilbur Smith Associates showed that for current residents, only those living in the sparsely-populated area west of Wasilla and in rural areas near Point MacKenzie (i.e., not including the Mat-Su population centers of Wasilla and Palmer) would experience time-savings using the bridge.3
2) Legislative hearing(s) to analyze the financial trade-offs (i.e., for other transportation projects) and other concerns associated with the Knik Arm Bridge project including the use of a cheaper, multi-modal non-bridge alternative to connect Anchorage and the Mat-Su Borough, the impacts the bridge may have on the endangered Cook Inlet beluga whales, the US Army Corps of Engineers' concerns about Port of Anchorage siltation due to the bridge, impacts on the Government Hill neighborhood and downtown, difficulties in obtaining private financing, likely increases in construction costs, etc.
3) Modify KABATA’s statute, AS 19.75, so it:
i. Allows the public to comment on investor submittals and requires the legislature to vote on the Public-Private Partnership contract before it is finalized (similar to the AGIA statute);
ii. Limits the concession length to 30 years; and,
iii. Specifies toll increases via an inflation-based formula.
Alternatively, the Administration and Anchorage decision-makers should move project construction to 2018 or later in the Anchorage Long Range Transportation Plan.
What is the Cheaper, Multi-Modal Non-Bridge Alternative? To connect the Mat-Su Borough and Anchorage and alleviate traffic congestion on the Glenn Highway, a less expensive alternative consists of commuter / cargo rail, ferries from Anchorage to Point MacKenzie, increases in carpooling, vanpooling, and traffic management (e.g., congestion pricing, faster accident response, carpools/vanpools) on the Glenn Highway, and improving public transportation within Anchorage to ensure adequate transportation capability exists within the city.
Downloads:
The Knik Arm “Bridge to Nowhere”: A High-Risk Investment Choice-March 2, 2007: A Report Developed by the Alaska Transportation Priorities Project
Endorsed by: Alaska Center for the Environment, Alaska Conservation Alliance, Alaska Public Interest Research Group, Cook Inletkeeper, Government Hill Community Council
Abstract: The proposed Knik Arm Bridge project poses a serious risk for private investors, with large uncertainties in project costs, funding, permitting, and liability. This report documents those uncertainties.
http://knikbridgefacts.org/Knik Arm CER 2009 Final Report.pdf.
2Ibid
3 Knik Arm Bridge: Preliminary Traffic and Toll Revenue Study, Wilbur Smith Associates, prepared for the Knik Arm Bridge and Toll Authority, November 2005, p. 3 and Figure 5.

