LUTHERAN QUILTERS – Members of the Quilts for Comfort Group stand between pews draped with some of the 205 quilts they made, in the Sitka Lutheran Church Tuesday. The group made the quilts for five local non-profits and one in Anchorage. The remaining quilts are sent to Lutheran World Relief which distributes them to places around the world in need, such as Ukraine, as part of Personal Care Kits. Pictured are, from left, Helen Cunningham, Kathleen Brandt,Vicki Swanson, Paulla Hardy, Kim Hunter, Linda Swanson and Sue Fleming. (Sentinel Photo by James Poulson)
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Daily Sitka Sentinel
Centennial Hall Gets New Look, New Rates
By SHANNON HAUGLAND
Sentinel Staff Writer
When the remodeled Harrigan Centennial Hall opens its doors in October, users will notice a number of changes in the building – and a new rate structure that more closely reflects the cost of doing business, city officials say.
A draft of the new rates was finished last week by building manager Don Kluting and City Administrator Mark Gorman. It was distributed to Assembly members in the information packets for this week’s meeting.
Don Kluting works and Centennial Hall this morning. (Sentinel Photo)
The main changes are higher rental rates across the board and no free rooms for nonprofits, although small organizations may ask for rate reductions.
“All have gone up,” Gorman said. The rate schedule “was artificially low because it hasn’t been addressed in a long, long time,” he said.
The biggest increase is for the main auditorium, which is going from $200 to $415 a day for general use (from $165 to $205 for nonprofits), but the top of the rate table makes it clear that staff is open to negotiation in certain circumstances.
“Rates for multi-day, multi-room events and conferences will be negotiated with the Harrigan Centennial Hall manager,” the draft document says.
Kluting and his staff did the research on the proposed new rates, checking meeting space rates around town, around the state and even the Lower 48. The new rates are based on a price per square foot.
“What Don Kluting did was get as much information on meeting space, and try to be competitive, if not a little less than other spaces,” Gorman said.
But Gorman and Kluting agreed that Centennial Hall is still seen as a service to the community and an economic engine that pays dividends far beyond what is collected in user fees.
Like other city services (the library, police and fire), Centennial Hall is not expected to cover its $500,000 annual budget with user fees. The last full year the building was open about $70,000 was collected.
“We need to bump it up a little to support our operations,” Kluting said.
In recent years, about 1,500 meetings or events per year have been held in the building, about 60 percent by nonprofit organizations, and 30 to 40 percent for city government.
“We’re busy,” Kluting said.
The new rates on the remodeled building still will fall short of covering expenses, but Kluting and Gorman pointed out that the increase expected in sales and bed taxes attributable to the expanded facility are not included in the increased revenue base.
The new building, with brighter and more flexible meeting spaces, a better internet system and brand-new AV equipment, will be more of a draw than the old building, which has had a few significant upgrades since it was opened in 1967 during the Alaska Purchase Centennial celebration, city staff said.
Kluting said people here for conventions spend about $256 per person per day, which helps local shops and hotels, and brings in bed and sales tax revenues for the general fund.
“That’s significant dollars that are contributed to the community,” Kluting said. “We have an opportunity today; we can market the facility and attract that business. It’s exciting to look at that opportunity for us to bring in more conventions. If we take a look at what indirect money comes in, we’re in the green for sure. It’s an economic generator.”
The main Centennial Hall policy change that nonprofits will notice is the change from free use of meeting rooms during business hours, and no free set-up times for events in the auditorium. There is a charge of $250 for 0 to 2 hours for the auditorium, or $415 for the day for general use.
Rates are generally higher for general use and commercial use. The rate for the old Maksoutoff Room, now called “Meeting 5” and “Meeting 6” is $135 for both spaces for nonprofits. The cheapest room is Meeting 4, similar to the old Davis Room, which rents for $25.
The new expanded kitchen has gone up from $120 to $200 for nonprofits and $170 to $300 for general use.
Kluting says he doesn’t know why the old historic names are gone, replaced by “Meeting 1,” “Meeting 2” and so on.
The fees collected will go into the general fund, and there has been some discussion of setting some aside for depreciation to help pay for maintaining and replacing equipment and furniture.
Since the new rate schedule has just been completed, there has been little public reaction so far. Gorman said users should keep in mind that even with rate increases there’s flexibility.
“We’re not trying to drive people out of using the building, we’re trying to capture the cost of keeping the building open to the public,” Gorman said. “We don’t want to create hardships for entities or organizations that don’t have the resources but need a place to meet.”
The rate increases in general are “long overdue,” Gorman said, and the city in general needs to adjust rates on a more regular basis.
“We wake up one day and realize our fees are way out of synch and then we try to correct them overnight,” he said. “We need to do a softer landing.”
The building was closed in August 2015, and the major remodeling and expansion project was completed well ahead of schedule.
“People are just waking up to the fact that we’re going to have our facility back sooner than January 2017,” Gorman said.
The city used grants from the state to complete the $16.4 million remodel, including the addition of a wing for the Sitka Historical Museum. The historical society made a contribution to the project as well, for a larger expansion than was planned.
The city will celebrate the grand opening on Oct. 11, the same day the new mayor and Assembly members are sworn into office.
Gorman and Kluting said the new Centennial Hall is a building the community should be proud of.
“It’s a beautiful facility,” Gorman said. “I like all sorts of things but it feels incredibly warm, the colors are rich ...” he said. Gorman particularly enjoys the wave patterns in the floor, and the cathedral ceiling above the lobby area running from one entryway to the other that reminds him of the ribs of a wooden boat. “It has a strong connection to the ocean,” he said.
He also likes the LED lighting, which he feels has a “richer” feel than LED lights usually have.
“I love going into the building,” Gorman said. He also likes the way it fits together with the new library and other notable buildings in the area such as Pacific High and the Russian Bishop’s House, which he says will make a good first impression on visitors.
“People coming in on a cruise ship will say, ‘wow, this is impressive,’” he said.
He passed on his compliments to MCG Constructors and Dawson, the prime contractors on the project.
Kluting agreed. “The contractors have done an amazing job. The infrastructure will serve the community well,” he said.
The main auditorium has fewer square feet than the old version of Centennial Hall, but the back wall can be opened for another 1,000 square feet of use, Kluting said. He said he believes those using the building will particularly appreciate the flexibility of the spaces, the upgraded equipment for sound and projections, and the new expanded kitchen. The new kitchen is on the opposite side of the building from the previous one and separated from the auditorium by a hallway that will reduce the noise heard in the auditorium.
The building has 2,600 additional square feet of new meeting space, and “nanowalls” that will create additional spaces in several of the rooms.
Kluting is excited about opening the building to the public. During the closure, events have been moved to other spaces, including the Sealing Cove Business Center, UAS Sitka campus, the SJ campus, the Performing Arts Center and other Sitka school district buildings.
He said he has just hired a new building supervisor, Tony Rosas, and is looking to hire two part-time building attendants in time for the ribbon cutting, and to get ready for the next big event, the Alaska Day celebration in October.
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20 YEARS AGO
March 2004
Advertisement: Tea-Licious Tea House & Bakery 315 Lincoln Street Grand Opening! Freshly Baked Scones, Cakes & Pastries Innovative Salads, Soups & Sandwiches Harney & Sons Tea. Lunch * Afternoon Tea * Supper.
50 YEARS AGO
March 1974
Photo caption: National Republican Chairman George Bush takes a drink of water offered by Jan Craddick, Sitka delegate, during the Republican convention held here. Mrs. Craddick explained to Bush that the water was from Indian River, which means, according to local legend, that he will return.