ANCHORAGE, AK — The Anchorage Assembly has taken a major step toward advancing the long-awaited modernization of the Don Young Port of Alaska, unanimously passing two measures that unlock new financing options and help pave the way for future construction contracts.

At a special meeting held Wednesday afternoon, Assembly members approved legislation that authorizes the municipality to issue up to $1.1 billion in revenue bonds, a move city officials say is essential to completing critical infrastructure upgrades at the state’s primary maritime gateway.

“If you’ve been on the journey of the Port for the past decade, you know these two items represent significant milestones,” said Assembly Vice Chair Meg Zaletel in a statement following the votes.

The financing mechanism approved differs from traditional general obligation bonds, which are backed by property taxes. Instead, revenue bonds are paid off using fees and surcharges levied on goods flowing through the port — costs that are ultimately passed along to Alaska consumers in the form of higher prices for food, fuel, building materials, and other imported goods.

Alaska residents are already paying these port-related fees as part of their everyday purchases, but future bond sales could lead to higher surcharges in the years ahead as the city moves to repay the debt.

“This wasn’t a blank check,” said Assembly Chair Christopher Constant on Thursday. “It is authorizing the line of credit.”

Constant explained that the vote does not immediately result in taking on debt but rather gives the city pre-approval to access funds as needed. He likened it to a mortgage pre-approval — providing the green light to pursue financing without committing to a specific loan amount just yet.

“The municipality is eligible to sell up to $1.1 billion in bonds, but that is not the same thing as having taken on the debt at this stage,” Constant said.

Under the ordinance, each major bond sale will still require additional Assembly approval, offering a check-and-balance system to ensure financial oversight during each construction phase.

For years, the Port of Alaska modernization has been stalled by a recurring challenge: major funders are reluctant to commit without evidence of tangible progress — but progress is often impossible without guaranteed funding in place. The latest bond authorization is designed to break that cycle by providing a clear financial framework for the project’s next steps.

The Port of Alaska, renamed in honor of the late Congressman Don Young, handles about 90% of the goods entering the state, making it a critical lifeline for communities across Alaska. The port’s aging infrastructure has long been flagged as vulnerable to seismic activity and environmental wear, prompting repeated calls for upgrades to ensure long-term reliability.

City leaders say this week’s unanimous vote represents a turning point in their efforts to finally deliver on long-promised improvements, while maintaining transparency and fiscal discipline throughout the process.

Originally reported by Zachariah Hughes in ADN.