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Stevens' "Ferry to Nowhere" to Boost Land Value for Former Aides

We've noted Sen. Ted Stevens' (R-AK) knack for helping out friends and family before. His son Ben for instance, relied on dear ol' dad to channel millions to fishing companies that in turn channeled hundreds of thousands on to him. His former aide Trevor McCabe partnered up with his son Ben and benefited from his relationship with Uncle Ted in other ways that have caught investigators' attention.

Though Alaska's a huge state, the billions Stevens brought home make the state seem quite small. Somehow projects tend to benefit people close to him. Roll Call takes a look (sub. req.) at just one of those, Stevens' recent earmark for $20 million for a ferry project in the state. Stevens has inserted "nearly $50 million for the project into appropriation bills from 2002 to 2006," Roll Call reports. The ferry would connect Knik Arm to Anchorage, cutting down travel time from two hours to 15 minutes. And look who had the foresight to invest:

Several current and former members of Stevens’ staff — including Chief of Staff George Lowe and former top aide Lisa Sutherland — as well as Rep. Don Young’s (R-Alaska) son-in-law Art Nelson own undeveloped land on the Knik Arm....

Along with her husband, Scott, a lobbyist for Ducks Unlimited, Sutherland owns slightly less than four acres on Knik Arm. The value of the land went from $38,400 in 2005 to $65,000 in 2006, according to the borough assessments.

A second former Stevens aide, Trevor McCabe, also owns land on Knik Arm along with Young’s son-in-law, Nelson, and Yardarm Knot Fisheries LLC executive Alan Chaffee through the company Point Bluff LLC, according to public records. Nelson owns a 10 percent stake in the company, according to the Anchorage Daily News....

McCabe and his wife also own a separate 3.7-acre parcel on Knik Arm. The value of that property went from $37,800 in 2005 to $62,400 in 2006, according to the property assessment.

Sounds to me like something the old Tammany Hall pol George Washington Plunkitt would recognize as "honest graft." They seen their opportunities and they took 'em.


Comments (24)

Ethan wrote on November 15, 2007 4:09 PM:

That's one Woodstock museum for every state in the union.

Ethan wrote on November 15, 2007 4:13 PM:

Shoot, Paul how did you miss this little (big honkin screaming) nugget of impropriety:

One company that could benefit from the ferry is VECO Corp., the oil services firm at the heart of a federal corruption probe that led to an FBI search of Stevens' home July 30. The company, whose former chief executive is a business partner of Stevens, signed a letter of interest six years ago to open a manufacturing facility at the port once the ferry begins operations, which is now expected in 2009. Borough Manager John Duffy says VECO remains interested in building huge oilfield equipment at the port, where it built smaller equipment "modules" in 2005 and 2006.

VECO spokesman Tim Woolston declined to comment.

Gabriel Sutherland wrote on November 15, 2007 4:23 PM:

Never sleep on investment opportunities in Nowhere, .

Good further reading Ethan.

What?! wrote on November 15, 2007 4:37 PM:

...and don't forget to run the story on how the actual ferry itself is a stroy unto itself!

Kygre wrote on November 15, 2007 4:49 PM:

This issue is weak will discredit TPM somewhat.

I've owned property in this area for 30 years. 30 to 40 thousand people live across Knik arm in the Wasilla area, and it is a bedroom community to Anchorage, which has no more space for residential development. There is near unanimous support for a bridge, but the technical obstacles are enormous (earthquakes, 27 foot tides, etc). For several decades, anyone with an extra dollar has speculated on land on the Knik side of the inlet. Almost everyone has lost money because the bridge never happens.

Besides, these property sizes and values cited are very insignificant. If they'd monoploized thousands of acres, it would be a different story.

There are other legitimate corruption issues to stay focused on.

Ed*ard Teller wrote on November 15, 2007 5:48 PM:

Kygre has two valid points. I know lots of people with small parcels down there - about the same size as the ones cited. Many, many landholders are prominent Democrats. And they've been sitting on them a long time. If you bought a parcel there in '89 or '90, after the oil price crash recession, you could get a hellacious deal.

And every new bridge at the edge of Alaska development is a "bridge to nowhere." I've lived in Alaska for 34 years. In that time, we've seen less new roads and bridges in the entire state than many Chicago or LA suburbs see built in a year. Alaska has less road system than Rhode Island.

But this is additional reason for Stevens and Young to bow out. They were totally incapable of dealing with explaining or dealing with the Gravina Island and Knik Arm crossing projects realistically from the get-go.

Ethan wrote on November 15, 2007 5:53 PM:

Kygre, still doesn't explain why FEDERAL FUNDING needs to be earmarked for development of ferry for a community built in (large part it seems) service of Alaska's most corrupt oil company in VECO. A company that was just bought for around $500M and makes god-only-knows-how-much profit off contracts and services. Not to mention the criminal corruption...

Anonymous wrote on November 15, 2007 6:27 PM:

The ferry would connect Anchorage to Knik Arm ?

Huh ?

Am I not getting something or is this just another non-story written by some east coast hack of a jorunalist who can't even bother to check BASIC FUCKING facts.

Dumbass Kiel, the ferry/bridge would connect Anchorage to POINT MACKENZIE, not Knik Arm.

Knik Arm is a body of water you rube.

Do yourself a favor, why don't you actually VISIT the place which you are writing about and see firsthand for yourself what reality is.

Reality is that some alternate route to the Glenn Highway is desparately needed now, and the need will only be elevated if population levels continue to grow as projected.

The Mat-Su is one of the fastest growing regions in the country, I'd invite Paul to take a white knuckle drive in on the Glenn Highway at 6:00 am with a nice coating of black ice on it.

Throw in a few moose just for kicks and maybe this East Coast hack journalist will finally shut the fuck up once and for all.

Ed Sullivan wrote on November 15, 2007 6:27 PM:

The ferry would connect Anchorage to Knik Arm ?

Huh ?

Am I not getting something or is this just another non-story written by some east coast hack of a jorunalist who can't even bother to check BASIC FUCKING facts.

Dumbass Kiel, the ferry/bridge would connect Anchorage to POINT MACKENZIE, not Knik Arm.

Knik Arm is a body of water you rube.

Do yourself a favor, why don't you actually VISIT the place which you are writing about and see firsthand for yourself what reality is.

Reality is that some alternate route to the Glenn Highway is desparately needed now, and the need will only be elevated if population levels continue to grow as projected.

The Mat-Su is one of the fastest growing regions in the country, I'd invite Paul to take a white knuckle drive in on the Glenn Highway at 6:00 am with a nice coating of black ice on it.

Throw in a few moose just for kicks and maybe this East Coast hack journalist will finally shut the fuck up once and for all.

Kygre wrote on November 15, 2007 7:00 PM:

Ethan,

I'm not saying their couldn't be corruption problems. I'm just saying that without any corruption issues, people living in the area want a transportation solution, and it has been worked on probably since before VECO existed. Used to be a bridge. I'm not really familiar with the ferry solution, and it doesn't seem like it would solve the problem as well as a bridge. The land examples given don't indicate a corruption problem, and locals would consider the argument ludicrous. Have to find something more suspicious than what was presented.

John wrote on November 15, 2007 7:02 PM:

The VECO connection makes this one look a little fishy, but I don't think this project or a other projects like this are inherently unworthy of Federal funding. In fact, ferries are rather routinely funded by the Federal government; ISTEA and TEA-21 both provide funding for the construction and maintenance of ferries. Granted, those funds are generally disbursed via grants rather than by earmark, but the result is the same.

Kuparuk wrote on November 15, 2007 7:25 PM:

Next thing you know, they'll connect Anchorage to Turnagain Arm!

Actually, this is a *cost-effective* way of connecting the areas. Ferries actually get use in AK.

But because Ted is tainted in *so* many ways by *so* many earmarks to special interests, the ones that make sense are now going to be scrutinized.

Same goes for Don. If either were to earmark a billion dollars for something as outrageously popular as S-CHIP at this point, they would draw criticism.

And that's why they have to go.

Brendan wrote on November 15, 2007 7:45 PM:

More slop for the country's biggest welfare state. Why don't all the "rugged individualists" in Alaska build their own damn ferry.

Anonymous wrote on November 15, 2007 8:07 PM:

Well here it is if you want to look:

http://tinyurl.com/3aufq5 for the ferry

www.knikarmbridge.com for the bridge. It's not to nowhere but it is not to very much right now either. Growing up in Seattle you sort of take for granted floating bridges (Hood Canal, I-90, SR 520) and a state ferry system. Of course they pay some taxes there, too. Anchorage itself is full in terms of residential building lots. Here's why a bridge or ferry as an evacuation route seems silly: http://tinyurl.com/yvgerw but whatever grabs you.

Anonymous wrote on November 15, 2007 8:13 PM:


FBI is going to release audio of Ted and Don and that is much better story. this is peanuts.....
Hold out until JL properties contract on Elmendorf and federal agencies that had to move to C Street and 35th Ave in Anchorage. Also investigate lease rates Chugach Native Corporation and ASRegional Corporation make to JL properties probably way above market rate in Anchorage

who owned a piece of that real estate? Teddy...How much Defense spending did Ted send over to Chugach and ASRC in the last 5 years?

Alaskan wants to know!

John wrote on November 15, 2007 8:13 PM:

Ed,

In fairness to Paul Kiel, the mistake about the Knik Arm comes directly from the ROLL CALL article he cited in his piece. Here's the relevant passage from the ROLL CALL article:

Although the earmark, which is
listed in the bill as funding for
an “expeditionary craft,” is set
to go to the Navy, the ship
ultimately will be used as a
commercial ferry between Anchorage
and the Knik Arm, a remote point of
land which takes more than two hours
to reach by car but around 15
minutes by boat, according to
published reports and planning
documents by the local Alaska
borough, Matanuska-Susitna.
[Emphasis added.]

Having read the article (which I've posted here), this seems more like a boondoggle on behalf of Lockheed Martin (who would build the ship) than anything else. It seems to me that the ferry is a worthy project with legitimate benefits to the Anchorage metropolitan area, not to mention one that would probably be eligible for Federal funding anyway via the Department of Transportation under TEA-21. Does the earmark give the State more than they could get via TEA-21? Yeah. Will Stevens' cronies benefit from it? Yeah. But a ferry or bridge is eventually going to be built across the Knik Arm with or without Sen. Stevens' help, and Federal dollars are going to be used to fund it, because funding ferries and bridges is something the Federal DOT does routinely. A big tempest in a teapot, if you ask me.

John wrote on November 15, 2007 8:22 PM:

Whoops, looks like you can't use HTML in these comments. The emphasis that was to be added was on the words "the Knik Arm, a remote point of land". And the ROLL CALL article is posted at http://tinyurl.com/25p8hx

Anonymous wrote on November 15, 2007 8:30 PM:


Election in 1 year and Project Don and Ted Victims of california,no wait, east coast conspiracy of liberal judges and envirojournalist who eat their young and impregnate conservative women with their crazy ways
so many to blame so little time

bobalaska wrote on November 16, 2007 4:04 AM:

As pointed out above, the ferry will be used to cross a body of water. The fact that some people own some land in the area is meaningless- unless someone can prove that they bought it with knowledge that no one else had- which is not the case.
Furthermore, the ferry is only one of a number of experimental vessel designs which are being built in shipyards throughout the country.

TPM should look at the whole story, not just make an assumption that because Ted Stevens did something to help his state- by increasing capacity to build such a vessel in state and improving transportation- that the vessel is a product of corruption.

Find out why Ted Kennedy insisted- via an EARMARK- that the Air Force spend $100,000,000 for jet engines that they didn't want- just because the plant was in Lynn, Mass. Isn't that worse than spending $50 million for a ferry that will be used?

bobalaska wrote on November 16, 2007 4:14 AM:

As pointed out above, the ferry will be used to cross a body of water. The fact that some people own some land in the area is meaningless- unless someone can prove that they bought it with knowledge that no one else had- which is not the case.
Furthermore, the ferry is only one of a number of experimental vessel designs which are being built in shipyards throughout the country.

TPM should look at the whole story, not just make an assumption that because Ted Stevens did something to help his state- by increasing capacity to build such a vessel in state and improving transportation- that the vessel is a product of corruption.

Find out why Ted Kennedy insisted- via an EARMARK- that the Air Force spend $100,000,000 for jet engines that they didn't want- just because the plant was in Lynn, Mass. Isn't that worse than spending $50 million for a ferry that will be used?

D.R. Marvel wrote on November 16, 2007 7:47 AM:

Alaskans are all a bunch of Republican Welfare Queens...

Let 'em all showshoe their way to work...

Persona non grata wrote on November 18, 2007 10:02 PM:

Thomas More speaking on governments:

"They are a conspiracy of the rich, who, on pretence of managing the public, only pursue their private ends, and devise all the ways and arts they find out, first, that they may, without danger, preserve all that they have so aquired, and then that they may engage the poor to toil and labour for them, at as low rates as possible and oppress them as they please."

They broke the "public-trust" by abusing their positions to profit at the expense of the tax-payer at the very least.

Bogtrotter wrote on January 25, 2008 2:36 AM:

I am a former Alaska resident (from 73 to 03). Between things like Murkowski appointing his daughter to fill his senate seat and ted Stevens blatant corruption I am embarrassed to let people know I am from there.

Anonymous wrote on January 25, 2008 3:07 AM:

bobalaska wrote on November 16, 2007 4:14 AM: "Find out why Ted Kennedy insisted- via an EARMARK- that the Air Force spend $100,000,000 for jet engines that they didn't want- just because the plant was in Lynn, Mass. Isn't that worse than spending $50 million for a ferry that will be used?"

Oh I get it. Explain away Unca Teds actions by suggesting that attention be focused on another corrupt politician, Teddy K. Considering how Ted Stevens is being looked at for things other than this current tidbit, it is not much of a reach to assume that he is indeed a corrupt politician who has done things, in part, because they will benefit friends, staffers (who likely have dirt on him he needs to worry about) and contributors.

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