"Anchorage is running out of usable space and the Mat-Su Borough has tons of land," Anderson said as he and borough manager John Duffy addressed about 50 Chamber members last month. The need to offer industries room to spread out has prompted the municipality to join forces with Mat-Su Borough officials and the cities of Palmer and Wasilla to perform a joint economic study. Results are expected within a year, he said.

Duffy said Alaska's abundant electric power, fiber-optic cable communications and strategic location near Asia are strengths that could be exploited -- by the right businesses. The key is good marketing, he said.

The new port facility at Point MacKenzie could draw industry to Southcentral Alaska, although the surrounding land still lacks utilities and a decent road.

"We have a site now for industries that people don't want in residential areas," Duffy said. Already there's a mobile home manufacturer at the port, shipping prefab housing to the Bush, "and we're getting some interest from other firms that would like to tie into that."

"The plan is to develop an industrial area over there, then Anchorage could move some industries across the Inlet," Anderson said.

Timber, wood chipping and manufacturing are possible industries, he said, adding that Williams Alaska Petroleum Inc. has indicated it wants to move its Government Hill fuel tanks to the new port. "We've had a lot of interest by business in moving there, but usually when they find out there's no infrastructure they say, 'call us back when you've got utilities there.' "

Central to making Port MacKenzie work is finding a way to transport goods three miles across Knik Arm from Anchorage. Anderson said he talked with Alaska's Rep. Don Young in Washington, D.C., this spring and learned that $20 million has been allocated for an environmental impact study for the Knik Arm crossing.

"It's real. It's not just another idea out there," the mayor said. A causeway or bridge project makes economic sense now, because "as the state continues to grow, if there isn't a new highway, the Glenn will be eight to 10 lanes" in the near future.

At present, an 18-mile dirt road beyond the paved Knik-Goose Bay Road is the only access to Point MacKenzie. In the short run, Anderson said, "we need to fix the roads so trucks can get down there efficiently, knock down the grades to 5 percent, and bring in electricity." Eventually, the dock will need to expand out into low water to handle large cargo ships. Shipping finished products from Point MacKenzie to Fairbanks and the Bush likely will involve the Alaska Railroad building a spur south from Houston.

Duffy said problems found with the dock will cost about $1 million to fix. Engineers recently discovered that a layer of uncompacted silt beneath the structure could liquefy during an earthquake.

"We do have the money (to fix it)," Duffy said. "It was built with federal funds and it has to meet federal standards. It has to remain economically viable after an earthquake." The solution involves putting in a "sand wick" and wicking out the moisture, he said.

Besides helping Anchorage move unwelcome industries out of town, Port MacKenzie and other development in the area will help Mat-Su Borough taxpayers, Anderson said. "We have a unique problem up there in that the tax base is mostly residential," and 87 percent of the borough's budget goes for education.

"If a family of four moves into our Valley and buys an average-size home, it actually costs us money. The taxes they pay don't equate to the cost of providing them services." Not only did property taxes just go up but the borough assembly also is considering a sales tax.

Duffy said the borough is considering a "very aggressive" package of incentives to lure industries to Mat-Su. Five-year tax deferments, 50 percent tax write-offs "depending on how many jobs they bring in," fast-track permitting and industry-revenue bonds to let companies get tax-exempt financing are some proposals on the table.

One recent disappointment has been the failure of the latest plan to build a ski resort at Hatcher Pass, Anderson said. Popular with local skiers but with virtually no infrastructure, the area has generated many development schemes over the last 20 years, Duffy said. Anderson agreed that the area has potential but said any development will likely be small, "unless we're ready to step to the plate with this many millions of dollars to make it happen."