By SHANNON HAUGLAND
Sentinel Staff Writer
The Assembly at a special meeting Thursday weighed in on a new permitting system for vendors at Harrigan Centennial Hall, but made no decisions.
Changes being proposed by city staff include a closed bidding system for spaces outside the building where vendors can sell tours. Paid permits are proposed for buses, vans and other vehicles.
City staff said the current fees charged don’t cover cleaning, management and maintenance costs, which have gone up with the rise in the number of visitors.
In other business, the Assembly approved a $600,000 budget ordinance to pay for new heat pumps at Blatchley Middle School.
Both votes were 6-0, with Kevin Knox, Kevin Mosher, Rebecca Himschoot, Dave Miller, Crystal Duncan and Thor Christianson present for the meeting. Knox, the deputy mayor, presided in the absence of Mayor Steven Eisenbeisz.
Harrigan Permits
Harrigan Centennial Hall manager Tony Rosas and consultant Lenise Henderson presented an updated permitting system and fee structure for commercial users of the property.
“This bidding process for issuing permits will allow for a small revenue to return to the city to help with infrastructure as well as making the issuing process fairer for returning and new commercial tourism vendors,” Rosas said in his memo to the Assembly. He said funds could go to support city infrastructure such as facilities and roads.
Currently, the city charges vendors and other businesses $400 for each of 10 spaces on the building plaza, and $500 for each of the five outfitter spaces. There’s no charge for vehicles picking up and dropping off customers.
The draft fee schedule up for discussion included a new annual permit requirement for each vehicle: $250 for under 7 passengers; $500 for 7-15; $750 for 16-29; $1,000 for 30 or more.
Consultant Lenise Henderson, who lives in Sitka but has worked throughout Southeast, said she and city staff tried to consider the revisions from the perspectives of businesses, the cruise industry and the city.
“When we were doing this we took a lot of time to look at it every which way and with Sitka emerging in the industry what would be in the best interest of the community,” she said. “What’s the best recommendation of what’s in the best interest of every community member that lives in Sitka.”
No decisions were made but Assembly members gave some direction to city staff on some of the proposed features, such as permit fees and terms.
City Administrator John Leach met with city staff this morning to figure out the next steps, including a legal review of potential code changes that will be needed, and more work needed by the hired consultant. Leach said he has a summary of the concerns from the public, and will keep the process moving forward.
He told the Assembly that one of the goals is to continue providing a “safe, clean place for visitors,” and that costs have gone up with the rise in visitors using the facility.
“This is going to be a high priority so we can get it figured out and knocked out before the end of the year,” the administrator said. “Legal has to be involved because code changes are needed, and there will be plenty of opportunities for public input. We’re trying to do what’s fair and we’re trying to let the free market decide what these spaces are worth.”
The $5,000 minimum bid up for discussion is to ensure the city has serious bidders. If the bids are too low, there is a possibility the spaces would be locked up with no business conducted, the Assembly was told.
But in general the Assembly agreed with staff that the current fee structure needs to be revised after 20 years, and those not paying for commercial use of the property should start to do so.
“The fact is people are running businesses on city property,” Thor Christianson said, adding that he likes the idea of staggering the permit lengths to allow for new entries. “I’m not saying $5,000 – we need to revisit this often.”
“We will try to make it fair for people to have a spot,” Kevin Mosher said. “It doesn’t feel these fees are outlandish at all. ... We’re not trying to rake people over. This is the beginning of a process, giving directions on ways to go, on adjusting the code and fees.”
“We have to start somewhere,” Dave Miller said. “We will have a lot of discussion to figure these things out.”
They said they would like a system that’s fair to all, and were open to considering a starting bid at below the proposed $5,000. (Juneau vendors by comparison pay $30,000 for similar spaces, the Assembly was told.)
Rosas said he enjoys working with the vendors who have permits now, and they seem to work together well. “They all look out for each other,” he said.
Rosas said a permit system for vehicles would keep better track of businesses that pick up and drop off. He knows the operators with permits, but other businesses - including buses - use the parking lot and no permit is currently required.
“It makes it hard if they’re not part of the process,” he said. “This will be an opportunity to identify and manage this.”
Knox said he liked the proposed process that could work as a boiler plate for other areas used by businesses in Sitka. He said the Parks and Recreation Committee considers special use permits by tour operators, and he has heard from Baranof Warm Springs residents wanting a better system for commercial use of public facilities. The community on the east side of Baranof Warm Springs is part of the city.
“This is a step to operating more like a business,” he said. “It’s concerning we are barely affording toilet paper in the Hall. I like the direction we’re heading.”
Comments from the public were mostly from permit holders who said the minimum bid price seemed too big of a jump in a single year, and that they’re doing their best to create viable businesses. They said they help out with the congestion at the hall, adding to the economy of Sitka by collecting sales tax, and providing fun things to do for visitors. They said they’re small businesses, and others who use the facility could be contributing.
“It feels like an awfully large burden – for 15 businesses to cover extraneous expenses,” said Karen Mead, co-owner of A Whale’s Song Expeditions.
Also from the public, Richard Wein said he would like to have a larger discussion about “the whole puzzle” related to the large increase in cruise ship tourism. “We need to speak about what it’s doing to the city, what we want as a city,” he said. He said the city needs to recover its costs from those benefiting from the increases.
After a few comments were made about the large influx of cruise visitors this year, and the burden of having more than 300,000 to 325,000 this year, Chris McGraw, manager of Sitka Sound Cruise Terminal, noted that the city receives $5 per passenger, for a total of $1.5 million this year.
“Passengers are contributing to cover the cost of toilet paper,” he said. The funds through CPET are also covering the cost of closing Lincoln Street and the new restrooms, among other expenses, he added.
