It’s time for Page Two: News that might not make the front page for Tuesday, December 23, 2025.
The Matanuska-Susitna Borough must repay nearly $6 million to the federal government for grants related to the failed Knik Arm Ferry according to an article in the Mat-Su Sentinel.
The Federal Transit Administration (FTA) notified the borough last month that the borough owes them $5.8 million, plus interest.
The FTA denied the Borough request for any further reductions to the grant repayment. They also rejected an appeal tied to the failed Knik Arm ferry project.
The borough must submit a repayment plan to the FTA by January 19.
The renewed demand reflects a reduction from earlier figures. The FTA originally sought $9.3 million. That total was lowered after a borough appeal in 2016.
The last formal communication from the FTA prior to this year occurred in 2017.
The FTA rejected Borough proposals in November to reduce the amount further. The Borough suggested alternative depreciation formulas for the ferry terminal and forgiveness of most of the proceeds from the sale of the ferry.
The FTA concluded that the borough misused federal assistance by failing to make appropriate public use of the property.
The repayment obligation stems from federal transit grants awarded between 2002 and 2008. The $12.3 million were intended to support infrastructure for the M/V Susitna. The project included construction of a ferry terminal at Port MacKenzie.
The M/V Susitna cost nearly $80 million. It was promoted as the world’s first ice-breaking passenger catamaran. The borough envisioned the M/V Susitna as a state-of-the art commuter ferry between Anchorage and Port McKenzie.
However, the ferry never entered service or carried a single passenger.
The project stalled by 2011 amid political disputes of where to build a terminal in Anchorage. Funding shortfalls added to the problem and the vessel remained docked.
The ferry was acquired at no cost; however, maintenance expenses were significant. The borough spent about $15 million in local taxpayer funds on the project.
The vessel was sold in 2015 for about $1.8 million to the Philippine Red Cross.
The FTA revived repayment efforts in August after years of inactivity. The agency cited the borough’s failure to advance the project meaningfully. They also cited not using the property for public transit as required.
Today, part of the Port MacKenzie ferry terminal functions as borough office space.
The borough assembly discussed the repayment issue in a closed session this month. Borough officials plan to respond to federal authorities before the January deadline.
Looking to get some exercise to counter the effects of holiday eating?
The MTA Events Center walking track is free and open to the public during open hours. The surface is mostly rubberized flooring with spots of concrete. The track runs the perimeter of the ice rink. About 8 and half laps equals a mile of walking.
The Events Center also offers public skating. Check out the schedule. The cost is $5 for skating, $3 for skate rental. The link for the schedule will be posted with this article on FB and our website.
Skeetawk is open every day from 10:30 a.m. to 4:30 p.m. through January 4 except Christmas Day.
There is no trash pick up in Palmer on Thursday.
The Christmas friendship Dinner is from 11 a.m. to 3 p.m at the Menards Center . All are welcome to this free community event filled with warm friendship, great food, music, and Santa.
Tune in tomorrow for these great shows:
Petra Illig from Alaska Rhodiola talks about … you guessed it …. rhodiola with host Ken Hoffman on Ag Matters at 7:30 a.m., repeating at 5:30 p.m. on Big Cabbage Radio
Scott Blair from My Favorite Realty gives an update on the real estate market at 8 a.m.
Page 2 airs weekdays at 7 a.m., 9 a.m., 11:55 a.m., and 6 p.m.
It is also posted on our website, bigcabbageradio.org and our Facebook page.
Please support Page 2 News. Donate today at bigcabbageradio.org.
This Page Two article was written by Emily Forstner and read by Lee Henrikson. If you have an idea for a Page 2 topic, please email us at page2@radiofreepalmer.org.
That’s it for today and the news on Page Two on Tuesday, December 23, 2025.