By SHANNON HAUGLAND
Sentinel Staff Writer
The Gary Paxton Industrial Park board on Monday tabled a discussion on port tariffs for use of the dock and on a prospective haulout at the park.
Among other decisions, the board extended the deadline on requirements for a company that plans to make vodka from Sitka’s Blue Lake water, and recommended Assembly approval of a sublease agreement through Northline Seafoods, to Sitka Salmon Shares.
All five members of the board were present: chairman Scott Wagner, Chris Ystad, Vaughn Morrison, Mike Johnson and Jamal Floate.
Port Tariffs
GPIP Director Garry White said in his memo to the board that “a Port Tariff is a document that contains published charges, rules, and requirements of the port, including docks and associated uplands.
“The Port Tariff is an implied contract that allows for rapid arrangements without the need for complicated agreements for use of the facility,” White wrote.
White asked the board for direction on his proposed changes to the port tariff, which applies to users of the floating dock as well as a prospective haulout.
But White also said since it was a lengthy document they might want to spend some time before the next meeting to review the specifics in it before making a recommendation to the Assembly for changes.
One of the overriding issues is finding an appropriate balance between commercial fishermen and tourism, White said today. Members in October heard about plans for a company to use the dock for a few port calls of small cruise ships.
White said he would like the board to approve the facility user agreement, and vendor use agreement, as proposed. He said today he needs direction on what the balance is, between managing the facilities in order to provide a service, as well as bringing in much-needed revenue.
The GPIP dock opened in 2018 and has seen increased use every year. The city has no money to build a haulout but the board has approved a request for proposals for private sector construction and operation of the facility. The RFP will be reviewed by a working group.
Public testimony at the meeting reflected a concern that the dock would not be available for the commercial fishermen, if it were used for cruise ships.
“We’re worried how it’s going to progress in the future,” welder Jeremy Serka commented today, noting land purchases by cruise companies in other Southeast ports.
White said it’s a tough question, figuring out how to bring in money while still providing a service for all users.
Earlier in the meeting, Cruise Line Agencies port director Fred Reeder talked about plans for a 175-passenger Victory Cruise Lines vessel to use the dock, with between six and 12 port calls for 2021 and 2022. He cited the economic benefits that turning around a vessel in Sitka would bring to the community, and said the use of the dock by the 305-foot cruise ship should not preclude other uses.
“It all comes around to scheduling,” he said. He estimated some $700,000 to $800,000 in economic benefits to Sitka, as a minimum, including fuel sales, hotel stays, wharfage and visitor attraction spending. He also suggested GPIP create a sinking fund, to set aside funds for maintenance.
White said today he hopes to schedule another meeting in the next few weeks to address the tariff issue.
Other Business
In other business, the board approved Eckert Fine Beverages’ request to changes its purchase agreement for raw water for export. Mike Eckert said his company has run into some obstacles in its plans and needs more time to meet the requirements to export water.
The company plans to use Blue Lake water to make “five-star, top-shelf vodka” in the Lower 48.
The vote was unanimous to allow for extra time to meet the minimum requirement. The board agreed Eckert needs to export at least 75,000 within 72 months, instead of 36 months. The board also agreed to extend the time period that stipulates the contract is canceled if the exported amount falls below 50,000 for 12 consecutive months.
The changes go next to the Assembly for approval.
Eckert told the board that although the product will be made elsewhere, the company is trying to find ways to provide more benefits to the community, such as using a local marketing company and donating to a nonprofit, from sales proceeds.
On another item, the board approved amended terms for the Northline Seafoods lease, to allow the company to sublease to Sitka Salmon Shares. The board approved the proposals for Block 4, Lot 4; and for Block 4, Lot 9A.
The board also reviewed the park’s draft budget for fiscal year 2022, which includes about $241,000 in expenses and $206,000 in revenues.
