The state has suspended a $37 million grant for a new indoor tennis facility and other projects in Anchorage that was supported by Mayor Dan Sullivan.
The Anchorage Daily News reports the suspension follows questions raised by state Sen. Lesil McGuire, who is running for lieutenant governor against Sullivan.
Scott Ruby with the Alaska Department of Commerce says the entire grant was suspended, rather than the $4.4 million earmarked for the tennis courts. He says legislators gave the money to the city "in one big pot."
Concerns arose after Ruby's department received a copy of a letter McGuire sent to Gov. Sean Parnell that included a legislative attorney's opinion raising questions about the legality of the tennis project.
Ruby says the issue could be resolved within a couple weeks.