The longtime director of the Port of Anchorage announced his retirement, effective Jan. 15, amid calls for his resignation related to the beleaguered port expansion project.

Former Gov. Bill Sheffield made the announcement at a fundraiser for the mayor Wednesday night, said Lindsey Spinelli, a spokeswoman in the mayor's office.

He'll continue as a consultant, working as a federal liason for the project, Anchorage Mayor Dan Sullivan said today at a press conference. He'll be paid $60,000 a year. 

"He's made excellent connections with federal leadership," Sullivan said. 

Sheffield took over as director in 2001 after a long, and sometimes controversial career in public life. His term as governor in the early 1980s was marked by questions of conflicts of interest, the culmination of which was a grand jury investigation into a state contract issued to a friend of Sheffield's who raised money for the governor. The jury found him "unfit for office" and a special panel recommended impeachment. 

After two weeks of televised hearings, the Senate found insufficient evidence to send articles of impeachment to the House. 

Sheffield then worked at the Alaska Railroad, and was the president and CEO from 1997 to 2000. He was successful at lobbying for federal funds for the railroad, but his tenure was marred by a series of derailments beginning in 1999 which, all told, spilled more than 200,000 gallons of fuel. 

Calls for Sheffield's resignation have increased as costs for the port expansion have soared beyond the original estimates. Budget hawks have sought to hold someone accountable for the construction delays and bungled blueprints. 

Anchorage assemblyman and mayoral candidate Paul Honeman recently demanded that Sullivan fire Sheffield, saying millions of dollars and years of time had been wasted on the mega-project now estimated at $1 billion.

Sullivan had countered that the federal Maritime Administration, not Sheffield, manages the project. He declined to say exactly how much blame he should assign to the feds versus the port, calling it "counterproductive."

He's now focused on scaling back the project, which will receive $350 million in state-backed bonds. That, he thinks, will be sufficient to finish one phase of the project and provide a workable port. 

The city will take over as the lead agency by the end of May, Sullivan said. 

The following is a statement from Sheffield: 

My service over the last decade at the Port of Anchorage, Alaska’s port, represents some of the best years of my life. It has been an honor to continue my commitment to the Municipality, the State and to Alaskans. Serving Alaskans in multiple capacities over the past 30 years has been one of the highest honors of my life.

When I arrived at the Port in 2001, we recognized the necessity of modernization and continually worked to develop that objective through the Intermodal Expansion Project. The project has faced challenges but we have worked hard over the last two years to get the management and construction back on the correct course.

I am confident that I leave the port a more profitable, vibrant, and thriving facility. It is the lifeline for nearly all of Alaska.  It is our lifeline for today and the key to economic growth for tomorrow.

I hope to enjoy more time with my dear friends while investing in the philanthropies and non-profits that mean so much to me.”

Contact Alex DeMarban at Alex@alaskadispatch.com

Contact Amanda Coyne at Amanda@alaskadispatch.com