The Alaska Railroad Corporation will issue up to $135 million in revenue bonds to fund construction of the new passenger dock and terminal facility in Seward.

That’s after the Alaska Legislature last month passed a bill authorizing the move, which was signed into law by Gov. Mike Dunleavy on Thursday, March 6.

That bill, House Bill 65, was introduced by Rep. Louise Stutes, R-Kodiak, whose district includes Seward. Other legislators who represent the Kenai Peninsula — Rep. Bill Elam, Sen. Jesse Bjorkman and Rep. Gary Stevens — also joined among 20 total sponsors of the bill.

“The existing passenger dock has brought incredible economic opportunities in tourism, commerce, and transportation to the region,” Stutes writes in a sponsor statement. “However, the facilities were built in 1966 and have experienced significant degradation over their half-century life span. While currently safe for restricted service, the dock is quickly reaching the end of its useful lifespan and requires immediate attention.”

An identical bill was passed last year after the deadline for the legislative session to conclude and was later vetoed by Dunleavy.

No state funds will be used to pay for the bond, a press release from Dunleavy’s office says. Instead, a 30-year agreement with “anchor tenant” Royal Caribbean Group guarantees “a minimum of 140,000 guests annually,” and a port improvement fee will be charged to those guests to pay for the bond debt.

“This bill demonstrates how state government can spur economic development and growth with no impact to state finances,” says Dunleavy in the release. “The new cruise ship dock in Seward will maintain Alaska’s status as one of the world’s premier tourism destinations.”

Replacement of Seward’s dock is a major, multifaceted initiative being undertaken by The Seward Company, which will ultimately include a complete replacement of the Port of Seward with a new double-berth pier and a 41,500-square-foot cruise terminal.

The City of Seward has also secured a nearly $46 million grant from the Environmental Protection Agency to extend the electric transmission line to the port and integrate a battery energy storage system with the intent to allow cruise ships to connect to Seward’s electricity services rather than relying on diesel generators for power.

Seward city officials did not respond to comment after the passage of HB 65.

For more information about the New Port of Seward, visit sewardcompany.com.

Reach reporter Jake Dye at jacob.dye@peninsulaclarion.com.