Sitka Shipyard Tours
Dear Editor: On Saturday ALFA hosted an event at the GPIP site to share information on the proposed Sitka Community Shipyard. Chris Ystad and Thor Christianson provided tours; Assembly members Dave Miller and Kevin Moser also attended to share information and answer questions. For those who could not attend, below are responses to many of the frequently asked questions, and why the Sitka Community Shipyard makes economic sense:
Shipyards generate high-value economic activity
The Sitka Community Shipyard will generate an estimated $6 million per year in economic activity for this community, supporting marine tradesman, marine supply stores, hardware stores, restaurants, grocery stores, automotive stores, and indirectly virtually every other business in town.
Shipyards generate sales tax revenue
Shipyard activity generates sales tax, provides year-round high-paying jobs, and retains millions of dollars in town that would otherwise be spent outside Sitka.
How the Sitka Community Shipyard will pay for itself and generate income
Although shipyards are expensive to build, with high initial capital costs, they generate income provided the cost of capital is not too high and haulout rates are competitive.
With city investment and carefully researched cost/revenue assumptions, projections establish that the Sitka Community Shipyard will generate a modest profit even if only 200 boats are hauled per year; once haulout numbers rebound to levels common when Sitka had a well-run shipyard (300-400 boats per year), the shipyard will generate profit that can be reinvested in the permanent fund or in expanding the shipyard to accommodate Coast Guard boats, tenders, or barges.
With Prop 2 funds, the city will hire engineers to complete shipyard design; the city will contract for construction and operation of the yard through a competitive process. Qualified contractors will be engaged to build and operate the yard to meet GPIP and community goals.
Why private development of a shipyard hasn’t worked in the past
Private development has not worked because: 1) initial costs to construct a shipyard at GPIP are high; and 2) publicly held land cannot be collateralized by private business, therefore private businesses are not able to borrow money for construction without individually securing the $5-8 million loan.
Why a shipyard as community asset is ideal
The shipyard SHOULD remain a community asset to ensure this critical working waterfront continues to support Sitka’s maritime heritage and to benefit the community through employment, sales tax, and other economic activity.
The Sitka Community Shipyard will be a community asset and locally owned permanent fund.
Many thanks to all who attended the event, to Chris Ystad and Thor Christianson for providing tours, to Jeremy Serka for providing event space and set up, to Beth Short-Rhoads, Liberty Siegle and Lauren Mitchell for stellar outreach and logistics, to Mean Queen for the delicious pizza, and to Jerry Dzugan, Laurie Serka, and Carolyn Nichols for lending a hand at the event.
Linda Behnken, Executive Director
Alaska Longline
Fishermen’s Association
