In March of 2008, Hickel Investments, Hickel Construction and Engineering Inc. and the Crawford Family Trust made a proposal to the University of Alaska Anchorage to build two new stadiums for the UAA Seawolves. We were ready to form Alaska Collegiate Sports Facilities LLC to design, build and operate two new stadiums in Anchorage. We felt and still feel that our UAA Seawolves deserve nationally ranked facilities to match our nationally ranked teams.

The partners costed the job at $94.5 million for a full hockey stadium and a full basketball stadium. We worked with then Representative now Senator Kevin Meyer and Representative Bill Stoltz, both avid athletic supporters, who captured $15 million for architecture and design of UAA sports facilities. Two years later, half of that money has been spent on designing buildings that the UA Regents just refused to authorize.

As the former Deputy Director of Alaska State Housing Corporation, ASHA, predecessor to Alaska Housing Finance Corporation, I used to oversee the State Leased Building Program. We built literally hundreds of buildings for the State of Alaska. `We learned through painful lawsuits at ASHA not to design projects separately but instead combine architectural and engineering responsibilities with the construction. It’s called design construct and it saved ASHA and the state millions. The approach stopped costly overruns and lawsuits. Cost control is paramount in construction and very effective with design construct.

With that history, I asked Pete Hickel, President of Hickel Construction and Engineering with whom I’d worked previously to partner on the project. Pete in turn invited Hickel Investments aboard for their broad experience at building construction and management. The group had the experience, capital and drive to see the project through to completion.

When I grew up in Anchorage, we were really out of the mainstream of collegiate sports. Our sports programs were virtually ignored. Now, we have great coaches and students contending for national championships. Our ladies define sports excellence. Alaskans are national contenders in skiing, basketball, cross country and hockey. Kikkan Randall is awesome with four national championships in one week. Here’s hoping she and other Alaskan athletes grab the gold at the Winter Olympics! It’s amazing that such a successful sports program can be run from such decrepit quarters.

The difference between building a legislative office building and a sports complex is very simple from a financial viewpoint. An office building is overhead requiring continuing higher appropriates for operations. In other words, the office building assures a more expensive state government. On the other hand, a sports complex is a revenue generator that pays its own way. Buildings that generate future grants or increase tuition payers are also revenue generators. A University building that generates more revenue than expense pays for itself and should, therefore, be built.

The UAF Life Sciences Building generates more revenue from federal grants and tuitions than it will consume. The UAA Seawolves Sports Complex generates more revenue than needed to pay for itself.

In working with Alaska Growth Capital on financing the Seawolves Sports Center, I learned from Hugh Short, their CEO, of AGC’s receipt of a $50 million commitment for tax credits for Alaska projects. Tax credit buildings must be built in federally targeted areas. The good news is that the Seawolves Sports Center can be located in such a targeted area. Other buildings could also be accommodated for other regions of the state if they are located within targeted tax credit zones. Mr. Short indicated that the Seawolves Sports Complex could qualify for $20 million in tax credits. We have a short opportunity to save $20 million on the construction of this project if we build it now.

What stops building these needed University buildings? Regional politics. The Regents must approve the projects and the Legislature and Governor must approve the leases for lease back projects. The Regents approved the new building for the Fairbanks campus. They should also approve the Seawolves Sports Complex. Both the Fairbanks building and the Anchorage Sports Complex are in the interests of Alaskans. The Legislature and Governor Parnell should approve both as lease back projects.

The usual legislative practice is to pass an appropriation for a potential building then years later pass an appropriate for the next stage if we have the money and if they have the votes. One region can trump another region and the result is that designed buildings are not built. It is analysis paralysis and a huge waste of money.

Rather than continuing to fund designs appropriated in different years on projects that may one day be built, we should use the ASHA tried and true method of building projects with design construct and lease back financing. With design construct, we can turn dirt this summer.

The UA procurement guide requests and encourages innovative approaches to accomplish the University’s building goals. The Seawolves Sports Complex project was specifically prepared in compliance with that guide. A similar approach can turn dirt on the Life Sciences building in Fairbanks too.

Not a soul wins by the current gridlock that entraps our athletes in outdated and cramped sports facilities. Students in Fairbanks and Anchorage pay the price of gridlock. Construction workers in Fairbanks and Anchorage pay the price of gridlock. The longer the delay, the more expensive each building will be so all Alaskan pay the price of gridlock. There is a better way.

As a conservative, I generally don’t favor buildings that add to state overhead. But, these University projects generate more revenue than they consume. Our children and all cost conscious Alaskans will thank us for building them. If you agree, call your legislator, the Governor, other gubernatorial candidates and your Regents.