By ARIADNE WILL
Sentinel Staff Writer
In a 5-2 vote, the Assembly Tuesday night authorized a 20-year lease of 17 acres of city land at 4951 Halibut Point Road to Shee Atiká Inc.
The property – located between the ferry terminal and Sitka Sound Cruise Terminal – will be developed by Shee Atika in partnership with another company, Adventure Sitka, with attractions for cruise ship passengers such as zip lines, a salmon bake, and a canoe launch.
The approval of the lease comes as Sitka is anticipating record numbers of cruise passengers, starting next summer.
Chris McGraw – who owns and operates the Sitka Sound Cruise Terminal, and manages Adventure Sitka – said the development of the property at 4951 Halibut Point Road will be an important step to handling large numbers of tourists.
“The key to over-tourism is good distribution of guests,” McGraw said at the Assembly meeting.
The lease will generate between $300,000 and $400,000 a year for the city, said Karl Potts, CEO of Shee Atiká Inc., contrasting that income to the land’s present state, not producing anything “of value economically” for the city.
Prior to the vote Assembly members seemed wary of the proposal.
Kevin Knox – who voted in favor of the lease – asked where staff for the site would come from. He brought up the difficulty many businesses are having this year hiring staff.
But he said he would vote yes on the item due to next year’s influx of cruise passengers.
“We don’t have a lot of options here,” he said. “I feel like I have to be a yes (vote) to make sure we have some resources to disperse people.”
Thor Christianson, who voted against the motion, said he was worried about the price the city is asking -- $60,000 a year with adjustment for inflation every three years.
The other “no” vote came from Mayor Steven Eisenbeisz, who did not comment on his reasons. The lease’s approval is the result of a process that began over a year ago, when the city finished the No Name Mountain/Granite Creek Master Plan.
The plan included analysis and recommendations for use of the 4951 Halibut Point Road parcel, which led the city to issue a request for information and a subsequent request for proposals to purchase or lease the property.
The only response to the request for proposals was submitted by Adventure Sitka and Shee Atiká Inc.
Richard Wein, speaking under public comment, said he believes the lease is a bad deal, and will impact Sitka “in unfathomable ways.”
Though the project is continuing forward, many attractions planned for the site can be constructed only under conditional use. This means that elements of the site plan will still need to be approved by the Planning Commission at a later date.
The Sentinel will have additional details about the zoning text amendment and rezoning in Thursday’s edition.
