By SHANNON HAUGLAND
Sentinel Staff Writer
City officials were disappointed this week to learn that Sitka did not receive a federal grant for key infrastructure projects to support Sitka’s fishing fleet.
The U.S. Department of Transportation announced the $1 billion in grant awards for the Better Utilizing Investments to Leverage Development program (BUILD). Missing from the list were the Sitka boat haulout project and rehabilitation of the marine services center and seawall on Katlian Street.
(The city has another application in for a different federal program for the seawall and marine service center project.)
“BUILD grants are very, very competitive,” City Administrator John Leach said today. “A lot of people applied. Even though our (application) was very strong, none of these are a slam dunk.”
He learned about the awards by checking the Department of Transportation website on the day the grants were to be announced.
The haulout is the city’s more urgent need, and some on the Assembly were pinning their hopes on a BUILD grant in order to have at least some infrastructure in place at the industrial park when Halibut Point Marine closes its haulout facility as planned next spring.
In Alaska, only Anchorage received a BUILD grant, $21 million for the intermodal cargo and cold storage facility at the Anchorage airport, which has an estimated project cost of $87 million.
“The only surprise was – I didn’t expect to get the full amount but I was certainly hoping for a small portion of it,” Leach said. The city had requested $6.5 million grant for the haulout.
He was also surprised Alaska got only one grant, given the state’s transportation needs and financial challenges.
“Especially given our cutbacks with the ferries,” Leach said. “With the reduction in our ferry service, some of these communities are going to need infrastructure to take on these responsibilities.”
The haulout grant proposed an $8,174,000 project that included the $6,539,200 million through BUILD, and $1,634,800 in matching funds from the city.
Leach said he felt Sitka and the rest of the state had a strong case for BUILD funding, and added that the congressional delegation did its part to advocate for increased funding for the program earlier this year.
After learning the news about the grant awards, Leach followed up this week with the city’s lobbyist in Washington, D.C., and advised Assembly members on Wednesday.
Leach said there is no appeal process, but he will talk to the Department of Transportation, and will reapply for the funds when they become available again.
“There might be grant opportunities for infrastructure and I will jump on them as they pop up,” he said.
The city had planned to commit matching funds toward the project from the Southeast Alaska Economic Development Fund.
The city also had applied for BUILD funds to rehabilitate the seawall and marine services center on Katlian Street. The city also applied to the DOT Port Infrastructure Development Program for that project, and expects to hear back by the end of the year.
As to the next direction on the haulout, the GPIP board planned to take up the issue at its 3 p.m. meeting today. The Assembly had previously rejected proposals received in the RFP process.
Looking ahead, Leach said, the city does not have the funds to build an $8 million haulout.
“In my opinion, we need to find some money to build a slip, find the money to build a washdown pad,” then make land available to businesses and individuals wanting to lease lots for enterprises on the property, Leach said. He estimated the cost of the slip and washdown pad at $2 million, with much higher costs for additional infrastructure such as a Travelift to haul boats.
The city’s application for a DOT Port Infrastructure Development Grant is for $7.4 million, to be matched by $1.8 million from the city for the $9.2 million project to rehabilitate the marine services center and seawall.
The GPIP meeting starts at 3 p.m. at Harrigan Centennial Hall.
