The Alaska Industrial Development and Export Authority is using the coronavirus emergency as an opportunity to quickly move $35 million in pre-construction planning money into the Ambler road project with little public notice or advance warning.

There are political and legal reasons why this is a mistake by AIDEA Executive Director Tom Boutin.

AIDEA should not be using an emergency meeting—announced Tuesday and scheduled for Friday at 1 p.m.—to act on a long-term decision that in no way qualifies as an emergency and has nothing to do with the coronavirus crisis that is creating enormous problems for businesses and workers across the state.

Secondly, this should have gone to the Legislature for approval in the capital budget.

The Ambler road proposal is to be discussed at an emergency AIDEA board meeting Friday at which the agency will also review a sweeping proposal that would allow the agency to waive any and all regulations for its loan, guarantee and financing programs.

The broad scope of that proposal is worrisome, as it includes a general authorization allowing the agency to bypass rules on “application requirements, application processing, interest rates, costs and fees, loan or financing terms and conditions, collateral requirements, underwriting standards, and other requirements established in regulation.”

The agency plans to meet in secret Thursday to discuss the proposals and hold a public meeting Friday.

It appears the agency is using the coronavirus emergency as a way of kick-starting the next phase of the Ambler project.

The proposal appears to sidestep the state regulations limiting use of the infrastructure fund, but perhaps Boutin thinks by waiving the regulations for an emergency, the $35 million is ready for spending.

A memo from Trustees for Alaska attorneys says the Ambler proposal is illegal, as it is a capital project that should have been funded through the capital budget, requiring legislative approval. AIDEA cannot increase funding for the project without legislative approval, regardless of the source of the money, attorneys for the environmental group contend.

“Because AIDEA has been unable to secure additional funding for the Ambler Road through the Legislature and the capital budget process, it is now attempting to make an end-run around the authority of the Legislature by unilaterally appropriating money from its revolving fund to this project,” they said.

The one obstacle that does appear, however, is that state law says money from the infrastructure fund is limited to projects with a projected life of 40 years and the proposed road would have a 50-year right of way.

During a Jan. 15 presentation, according to AIDEA minutes, project promoter Rick Van Nieuwenhuyse said a joint venture agreement was expected by February between Trilogy Metals and South 32, but there was no mention in the minutes of AIDEA proposing to move $35 million more into the planning work.

AIDEA is also looking to expand its loan program, with a resolution that would give Boutin the ability to decide how to disperse up to $50 million in loan guarantees to financial institutions so they can loan more to Alaska businesses.

The total would be raised to $100 million if the Legislature approves. The state is calling this the “Sustaining Alaska’s Future Economy” program or AK SAFE.

“The guarantees the authority provides under the AK SAFE Program will be on terms and conditions the executive director determines to be necessary or appropriate,” a proposed resolution says.

AIDEA would provide up a loan guarantee of to $1 million per borrower for businesses that want to take out increased loans from financial institutions.

“The objective is to enable Alaska’s banks and financial institutions to immediately provide additional capital to Alaska’s businesses through their existing relationships as they continue to manage terms with those borrowers,” AIDEA’s description of the program says.