Wrangell takes step forward toward developing deepwater port
- Wrangell Sentinel
- Dec 24, 2025
- 3 min read
Borough and shipyard company will work together on 6-Mile development plan
By Jonathon Dawe
Wrangell Sentinel
The borough assembly took a step toward attracting private investment in building and operating a shipyard at the 6-Mile mill property, which the borough purchased for $2.5 million more than three years ago.
During its Dec. 16 meeting, the assembly voted to approve a memorandum of understanding (MOU) with Seattle-based JAG Marine Group. The agreement sets the stage for a long-term public-private partnership at the 6-Mile property, which Wrangell officials want to develop as a deepwater port.
If JAG, which runs shipyards in Ketchikan and elsewhere, decides to build a new operation in Wrangell, it could lead to an investment in a $150 million shipbuilding and repair facility and create up to 400 jobs, Borough Manager Mason Villarma told the assembly.
The port commission two days later voted unanimously to recommend assembly approval of a lease with JAG for 30 acres of upland property at the site. The lease terms are “to be determined in future negotiations with the city,” according to material presented to the port commission.
In addition to committing the borough and JAG to start working on lease terms, the agreement approved by the assembly on Dec. 16 requires the two parties to work together on long-range planning and phased development of the property, and jointly pursue state and federal funding.
Wrangell is looking to apply for tens of millions of dollars in federal grant money for port development.
Villarma described the potential deal as a “hallmark piece” of the community’s future.
“This is forging a public-private partnership, hopefully for multiple decades,” he told the assembly. “This could be the biggest thing that Wrangell has ever seen.”
Under the terms of the MOU, the borough and JAG Marine Group agreed to start negotiations within 90 days, with the “shared goal” of submitting a lease to the assembly for its consideration within six months.
“The 6-Mile mill site presents an exciting opportunity for industrial development in the City and Borough of Wrangell,” JAG co-owner Tim Jagielski said in a written statement on Friday, Dec. 19. “JAG Marine Group looks forward to working with the Wrangell leadership team to evaluate and explore opportunities.”
In its tidelands lease application to the borough, dated Dec. 4, JAG said it would “develop a full-capacity shipyard, with a state-of-the-art assembly hall” for fabrication, construction and repair of ships up to 600 feet long.
At full development, the facility could include a 32,000-ton ship lift, multiple drydocks and several marine industrial buildings.
The company did not provide a construction schedule or cost estimate with its application, stating: “To be determined.”
The state this fall selected JAG Marine Group to take over as operator at the Ketchikan shipyard, replacing Vigor Marine. The company also operates a shipyard at Seward and facilities in Michigan and Virginia, and holds contracts with the Alaska Marine Highway System and U.S. Coast Guard.
Villarma emphasized the proposed 6-Mile development capitalizes on Wrangell’s strategic geography. Located approximately 700 miles from both Seattle and Anchorage, the borough offers a location protected from tsunami threats, a factor he said was attractive to the developers.
The overall development would be phased in gradually.
Addressing potential local concerns, Villarma assured the assembly that the new facility would not compete with the borough’s existing Marine Service Center. He noted that JAG’s focus on large-scale defense vessels would complement, rather than cannibalize, the local small-ship repair industry.
If the borough leases as much as 30 acres to JAG, it would not affect Tideline Construction’s scrap metal recycling and construction business on several acres of the 40-acre property, borough officials said.
Workforce housing and availability remain key challenges in Southeast Alaska. Villarma noted that JAG is prepared to implement “stopgap” housing measures and intends to build a local workforce pipeline through the Alaska Vocational Technical Center (AVTEC) in Seward and Wrangell High School to connect graduating seniors with journeyman positions.
Villarma framed the agreement as a move toward sustainable economic stability, distinct from resource-dependent cycles of the past.
“You’re not worried about trying to get some millions of board feet from the Tongass and trying to figure out how we’re going to survive the next 10 years,” he said. “This is a really great way to secure our future here in Southeast.”
• This story originally appeared in the Wrangell Sentinel.
