Two current issues pertain to this resolution. One is that the existing seafood lab in the Mat-Su will be closed soon and needs to be replaced.

The other is that the Alaska Industrial Development and Export Authority (AIDEA) currently owns a 250,000 square foot underutilized state-of-the-art seafood processing facility in Anchorage.

The funding history for replacement of the lab began in FY 1999 with a $145,700 appropriation for a feasibility study. In FY 2001, at a cost of $240,000, the Department of Environmental Conservation contracted for a conceptual design. A state-owned parcel adjacent to the Anchorage Department of Health and Social Services public health lab was determined as the most accessible and economical site for a new lab. In FY2002, an appropriation of $1.3 million was allocated for a complete design.

This year, the legislature is being asked to approve a bond bill for construction costs of some $14.285 million.

This resolution suggests that a better use of state funds would be to incorporate the proposed lab into the existing AIDEA owned building that currently houses Alaska Seafood International (ASI).

AIDA has provided $50 million for constructions and long-term financing for the processing building and retains a 29% equity position in ASI and ownership of the plant and land underlying the plant.

The State could realize substantial cost savings by construction of the lab within this existing state owned facility.

SS SJR 6 - S(STA) 3-18-03 mj

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