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Mat-Su Borough grapples with repaying feds for ferry funds

By KTVA CBS 11 News 8:59 PM August 13, 2014
ANCHORAGE –

The Mat-Su Borough has a big debt to pay — more than $12 million to the Federal Transit Administration.

The FTA is asking for the money back after the borough was unable to follow through with the Susitna ferry project, which the borough received millions of dollars to start. $6 million was spent turning the MV Susitna from a navy vessel into a ferry, $4 million on a ferry terminal at Point Mackenzie and $2 million on design plans.

A special meeting was held this week to figure out how to pay the federal government back. The Mat-Su Borough Assembly wasn’t able to come to a decision, so they will reconvene Aug. 21.

They borough has less than 30 days to work something out or face collections.

“We have been working for the past three years with the FTA out of Seattle and Washington, D.C.,” said John Moosey, Mat-Su Borough manager. “We believe there is a good relationship and there’s going to be some room to maneuver.”

The Aug. 21 meeting will be at 3 p.m. in the Assembly chambers at 350 E. Dahlia Ave. in Palmer.

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