New construction of a road / highway in Nikiski, Alaska. Completed plans call for the construction of a road / highway.

As of July 27, 2020 this project is underway. A contractor and designer are identified. The following is for historical purposes: The Kenai Peninsula Borough (KPB) propose to construct north of Nikiski, Alaska an 8.1-mile road extension that would continue from the end of the Spur Highway from Captain Cook State Recreation Area to Otter Creek in the Gray Cliff subdivision. In the 1980's private property north of the Captain Cook State Recreation Area in Nikiski was subdivided into residential lots for the Gray Cliff and Moose Point subdivisions. During the process of subdividing the Gray Cliff and Moose Point subdivisions KPB established a 100-foot-wide transportation corridor to provide access to the lots offered for sale. As these lots were developed and occupied, the only overland access to these properties was via the clearing adjacent the existing Andeavor AK Pipeline and Harvest Pipeline Company corridor. As there was no developed trail or roadway, access was solely through off-road vehicles (ORV) pioneering trails through the pipeline easement and adjacent KPB right-of-way (ROW). Because of the unimproved nature of the route and presence of wetlands, several large, impassable sinkholes have formed from the ORV traffic that require users to bypass on one side or the other. This has resulted in multiple vehicle trails that are spread over a large area rather than being confined to a single alignment or within the platted ROW. These off-road activities have caused significant degradation to streams such as Leif's Creek and Otter Creek; both of which support anadromous fish runs, as well as significant degradation to wetland and upland habitats. The project will reduce the impacts to wetlands and aquatic habitat, currently created by off-road vehicles traversing to the private properties. In 1998 through a Congressional action (H.R. 2400 The Transportation Equity Act of the 21st Century), the federal government appropriated approximately $6,000,000 to be used by KPB as a Federal-aid grant to construct an extension of the Kenai Spur Highway (KSH). A part of the funding was used for preliminary design and NEPA scoping by KPB in 2005. Western Federal Lands Highway Division (WFLHD) is working with the KPB in a Stewardship and Oversight (S&O) role to ensure KPB delivers the project in accordance with Title 23 requirements and other applicable federal laws.