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First Vendor Auction Held at Centennial Hall

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By SHANNON HAUGLAND

Sentinel Staff Writer

The city’s first auction for vendor and outfitter spaces around Harrigan Centennial Hall went off as planned Friday, with all who bid securing a space around the building.

Professional charity auctioneer Rick Sparing ran the auction, in which nine of 15 vendor squares went to local businesses, and six were left vacant. 

Three of five spaces set aside for outfitters such as kayak rentals were awarded for the minimum bid of $5,000 per year. All went to local businesses.

It was the first time the city used an auction to rent out commercial spaces in and around Centennial Hall. The city worked with a consultant on revising the city policies and permit fees which hadn’t been updated or adjusted in the past 20 years.

The changes come in time for the city to gain additional revenue from the visitor season just ahead, which promises to be the biggest in Sitka history, coming on the heels of the 2022 season that set the previous record.

Vessels with a total capacity of 540,000 passengers are scheduled here, and 500,000 of them are expected to arrive at the Sitka Sound Cruise Terminal, said terminal manager and co-owner Chris McGraw.

Centennial Hall manager Tony Rosas answered questions before the auction.

“We didn’t know what to expect so I’m happy with the way it went,” he said afterward. He said all of the businesses that won spaces were ones that had done business there in the past.

The auctioneer set the opening bid for a vendor space at $2,500 a year. The winning bid was $2,800 and the winner was allowed to pick his spot on the map showing the available spaces in front of Centennial Hall. He chose Number 8, a prime location, and then was asked to select a one-, two- or three-year term for his contract. He chose the three-year term, one of only five available at the auction. The remainder of the three-year terms available were chosen by the next four winning bidders.

Bids were higher after the auction of the first item, going for $3,600 to $4,600. The rules are that the winner could withdraw from their contract without penalty after the first year. 

The auction continued with the next high bidders selecting a space, and a contract period of two years. Those spaces went for between $2.600 and $3,000. Only four of the five spaces available for two-year terms received bids, and no bids were received on the five one-year terms for the less-desirable remaining spaces.

Generally the most desirable spaces, closest to the front entrance, went to high bidders on three-year terms.

The bidding started hesitatingly slow, since the process was new, but soon picked up speed. Vendor spaces in front of the hall went for between $2,600 and $4,600 a year, with three-year terms drawing higher prices, generally.

All the outfitter spaces along the side of the building went for the minimum bid of $5,000 a year for two- and three-year terms.

The auction started with the rules explained. Rosas had an outline of the building with numbered squares displayed for both the vendor and outfitter auctions.

In the past, vendors paid $400 a year for an annual permit to sell their tours in front of Centennial Hall. Outfitters paid $500 a year. In both cases, the spaces were not assigned for the season, but were taken on a first come-come first served basis each day.

The original plan for assigning the spaces was to hold a sealed bid auction, but the vendors and outfitters said an open outcry auction would be preferred. The Assembly agreed, and also approved options for one-, two- and three-year permits.

As to what happens with the eight remaining vendor boxes in front and on the side of the building, Rosas said he and other staff are discussing possible options for re-bidding the remaining squares once the tour season starts.

When the Assembly approved the new policies and permitting, members’ intent was for the terms to be staggered so new businesses would have an opportunity to bid on a space. Those bidding must have a year-round presence in Sitka.

Rosas in his November 16 memo to the Assembly about the proposed tourism permitting process for Centennial Hall said it is similar to what is “common practice for most tourism municipalities in Alaska and down south. 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.”

The minimum prices were set with Assembly input, consultant advice and an analysis of Centennial Hall expenses, in addition to consideration of the value of the property to citizens, city staff said.

Sparing, a professional auctioneer, is from Idaho, and has come to Sitka several times to run fundraising auctions for Alaska Raptor Center and Ducks Unlimited, the Sentinel was told.

In Ketchikan, prices for the 20 booths inside the Ketchikan Visitors Bureau visitors center on the cruise dock go to members, for a set price, currently for $1,100 a month. The city of Ketchikan has other booths available, outside on the dock. The highest price paid for those spots last year through a sealed bid process was $10,000 a month, a KVB spokeswoman said. She said last year Ketchikan had about 1 million cruise visitors, but expects a capacity of 1.4 million this year.

Also approved by the Assembly this year were new fees to pick up and drop off passengers from buses, cars and vans at Centennial Hall, or under O’Connell Bridge. Those using the parking lot will pay between $250 and $1,000 per vehicle depending on the number of passengers.