[{"_1":2,"_87":-5,"_88":-5},"loaderData",{"_3":4,"_26":27},"root",{"_5":6,"_17":10,"_18":19,"_20":21,"_22":10,"_23":-5,"_24":-5,"_25":10},"user",{"_7":8,"_9":10,"_11":10,"_12":-5,"_13":-5,"_14":15,"_16":-5},"roles",[],"isAuthenticated",false,"isPremium","planName","subscriptionStatus","featureFlags",{},"insightsBudget","isDevelopmentHost","userPreferences",{},"recaptchaSiteKey","6LcvOJcUAAAAAHsB-gPGfGktcRlKpH7OTIU_dMTD","isImpersonating","impersonation","affiliateStatus","isFreedomPortal","routes/v2/article/layout",{"_28":29,"_30":31},"notFound",true,"relatedArticles",[32,75],{"_33":34,"_35":36,"_37":38,"_39":40,"_41":42,"_43":44,"_45":46,"_47":48,"_49":50,"_51":52,"_53":54,"_55":56,"_57":58,"_59":60,"_61":62,"_63":64,"_65":66,"_67":68,"_69":70,"_71":68,"_72":73,"_74":73},"mediaId",6503387,"mediaKeyId","5566229-e39c6542ed8943c43703363ac8497cdc","parentId",5566229,"title","Assembly approves operating agreement with Highmark Marine for Sitka haul-out; fishermen raise revenue and renewal concerns","audioSeconds",1376,"startMs",7224000,"endMs",8600000,"viewUrl","/Search/View?dp=1&key=5566229-e39c6542ed8943c43703363ac8497cdc&start=7224&end=8600","thumbnailUrl","https://assets.pipeline.soar.com/5566229-e39c6542ed8943c43703363ac8497cdc/thumbnail_7224000.jpg","articleUrl","/articles/6503387/Sitka-City-and-Borough/Alaska/Assembly-approves-operating-agreement-with-Highmark-Marine-for-Sitka-haul-out-fishermen-raise-revenue-and-renewal-concerns","mediaUrl","https://secure.pipeline.soar.com/6503387-1c2f82e9f218a89f051435a5268e9c48/orig.mp4?Expires=1771159245&Signature=cTssWZY~9eDJ64Tgy3f534AXEavKMRgvvmWCxoHi3HK9aJ5yUbwN22jBZYmLdo8x-4dpGVnODLjajdZjKR6BAD~JSb~MSrMbnZUYa~MReUqjj1SVRlPx1wEYbk-JSHaQrEd5iCHwC1OPAxBkD3XGr5Bub~QQF3zohnPPXqPPBGWzSrPL9Q~tuzGvfJm-hMI6MuaIyn7IFgQlDuVQQ-tXfSBoEY~L6A9jH5CqkJxBN~WTBsar2K55xV-EI2Zner-2bBaOAnqw8hFY4MjaosbLHk9vRQLjg9H6H9saDrDlzDUCn4FGSt3ErB0OEmISBQ5pKqCiMl7SKQJH7D5-bOah6g__&Key-Pair-Id=KUT5TJCACFTXG","author","Sitka City and Borough","date","2025-08-12T18:11:38Z","article","The Sitka City and Borough Assembly voted 5–1 on Aug. 12 to approve an operating agreement with Highmark Marine Fabrication for the operation of the municipal marine vessel haul-out and shipyard at the Gary PaX Industrial Park (GPIP). The agreement sets fees, operational responsibilities and a multi-year term with potential administrative renewals.

Gary White, GPIP director, summarized the packet materials and exhibits for the assembly: a scope of services, facility-use rules, a negotiated fee schedule and a lease for warehouse space. White said the city successfully negotiated lower daily haul-out rates, generally reducing proposed fees by about $3 per foot across most boat-size bands, and arranged a modest payment back to the city's GPIP enterprise fund. \"We were successful in getting lower fees from what Highmark originally proposed,\" White said.

Public commenters included commercial fishermen and local vessel owners who urged changes before final approval. Linda Behnken of the Alaska Long Line Fishermen's Association said the community-built facility represents a major public investment and urged clarification on renewals and whether Highmark would automatically gain rights to future expanded yard (phase 2) without a larger revenue share to the city. \"I would expect that if that is open, that would not automatically go to Highmark without any increase in what they're paying to you,\" Behnken said.

Local trollers and vessel owners expressed similar concerns. Mary Magnuson asked the assembly to remove language that would allow automatic five-year renewals without a public review; she recommended the city review performance and hold a public hearing before extending the contract. Prospective vendors and community members also asked for clearer explanations of fee line items and whether additional yard phases would be competitively bid.

Several speakers and assembly members defended the agreement as a pragmatic way to get the long-awaited haul-out operational this season. Jonathan Wolf, a Sitka resident and boat owner, urged the assembly to renegotiate for a percentage-based return to the city or municipal operation, but others noted the difficulty and delay of running the facility in-house. Assembly members emphasized that the haul-out had been a multi-year public priority and that getting boats hauled locally would retain economic activity in Sitka.

Key contract terms and fiscal notes raised at the meeting:
- Annual payment to the city: the assembly packet states Highmark will pay $84,000 per year to the city's GPIP enterprise fund as part of the agreement.
- Fee schedule: negotiated reductions averaged about $3 per foot in several dry-dock rate bands compared with Highmark's initial proposal; the packet lists tiered rates by vessel length and service type.
- Renewals: the contract allows the administrator discretion to authorize successive one-year renewals (up to five additional years total); some public commenters objected to automatic renewals without an assembly review.
- Phase 2/expansion: speakers asked whether future upland/phase-2 development and associated revenue opportunities would automatically belong to Highmark; administration staff said other local vendors could lease upland space and that the contract grants Highmark a first right of refusal but does not eliminate other commercial leasing.

Assembly debate reflected both relief that the facility would open and continuing wariness about long-term fiscal consequences. Supporters said the negotiated rates make Sitka competitive with other Southeast Alaska yards and that local sales tax on on-site work will produce additional revenue. Opponents said the city's return on roughly $10–12 million in public investment would be small relative to the asset's cost; one speaker calculated an illustrative payback period in the hundreds of years under current terms and urged renegotiation for a share of gross receipts or municipal operation.

The final motion to approve the operating agreement passed 5–1; one member voted no. The administration will monitor performance and provide reports as the contract moves into operation. The assembly also heard a construction update: the planned heated concrete washdown pad will not be installed this season because material lead times would delay opening by approximately 12 weeks; the city will complete an unheated pad to meet the goal of establishing haul-out operations this season.

Clarifying details
- City revenue under the agreement: $84,000 per year to the GPIP enterprise fund (source: draft operating agreement, exhibit c and staff presentation).
- Fee changes: staff negotiated a $3-per-foot reduction from Highmark's initial rates on most size bands and a lower long-term-working rate for local vendors.
- Renewal mechanism: administrator discretion to authorize up to five one-year renewals; assembly requested an annual report on performance and use.
- Heated washdown pad: materials delays will push installation by about 12 weeks, so the city will install a non-heated pad to allow operations to start this season.

Next steps
Highmark plans to begin hauling boats once the non-heated washdown pad and remaining operational items are complete; administration will require periodic reporting on usage, incidents and finances and the GPIP enterprise fund will receive the contract payments and associated sales tax revenue.","mediaType","Video","parentTitle","City and Borough of Sitka Assembly Meeting","oneSentenceSummary","The Sitka City and Borough Assembly approved an operating agreement with Highmark Marine Fabrication to operate the municipal haul-out and shipyard, voting 5''''to 1 after public testimony raised questions about fees, automatic renewals and revenue sharing.","taxTitle","Sitka City and Borough, Alaska","taxId",14992,"location","headline","","shortSummary",{"_33":76,"_35":36,"_37":38,"_39":77,"_41":78,"_43":79,"_45":80,"_47":81,"_49":82,"_51":83,"_53":84,"_55":56,"_57":58,"_59":85,"_61":62,"_63":64,"_65":86,"_67":68,"_69":70,"_71":68,"_72":73,"_74":73},6503392,"Sitka Assembly postpones vote on petition for additional restaurant beer-and-wine licenses until October",5490,320000,5810000,"/Search/View?dp=1&key=5566229-e39c6542ed8943c43703363ac8497cdc&start=320&end=5810","https://assets.pipeline.soar.com/5566229-e39c6542ed8943c43703363ac8497cdc/thumbnail_320000.jpg","/articles/6503392/Sitka-City-and-Borough/Alaska/Sitka-Assembly-postpones-vote-on-petition-for-additional-restaurant-beer-and-wine-licenses-until-October","https://secure.pipeline.soar.com/6503392-1dcaf7817fac948bb9d5117e3c3f59c3/orig.mp4?Expires=1771159245&Signature=I3r8LXBZDkbzvy4DNzxkFzXX81NOWhM9bdKdGpsTNLeuQjE5VZtTCxWikmdQfmQ9ja5L-58djM5Q80q-SRl-jiUJvNhzsBDWEFR4ml4Hk6LzKn9a-pAJzHzWtb-5Ntrs~I-ohGhCSS7uTU4R33jePSYVoPwmv3fH2EL0y5s-Nc1jYgKuI6gp0shAr9qmGvcTEzCQU2v2exR4YU51oWQvD2-cNAjXksbdIvXqTrN27zbGYdaMaTuK7lg9~~VboKNRbhWK7nJV1Ya6EW4IzWzVFisQ~nuz-Epldggsudcvf0oNvVivAGpHBiCrt7JFEryAQE-dCdVZGAe2VwBahhfwSA__&Key-Pair-Id=KUT5TJCACFTXG","The Sitka City and Borough Assembly on Aug. 12 voted 6–0 to postpone consideration of a resolution petitioning the Alaska Alcoholic Beverage Control board for additional restaurant/eating-place (REPL) beer-and-wine licenses until the assembly's second meeting in October (Oct. 28). The postponement followed lengthy public comment, an amendment reducing the number of licenses sought from six to three, and questions about outreach and economic impacts.

The resolution, introduced by assembly member Tor, originally asked the state to allow up to six additional REPLs under state statute 04.11.0405. Tor described the measure as an effort \"to try and help out some of our local businesses,\" citing Campfire Pizza's efforts to open a downtown restaurant and theater pairing. Assembly member Chris seconded the original motion and supported the intent to assist entrepreneurs.

Supporters who testified said more REPLs would help year-round businesses survive and expand. Cambria, co-owner of Campfire Kitchen, said, \"Beer and wine sales are a crucial part of making operations more sustainable,\" and argued licenses would \"create new jobs, keep employees throughout the winter, and ensure more visitor spending stays local.\" Christian Litton of Wildflower Cafe said adding beer and wine would let his year-round cafe grow and hire more staff.

Opponents and some longtime license holders urged more study and broader outreach. Mary Magnuson, owner of the Mean Queen, said there was \"no economic impact statement\" and warned that newly issued licenses could devalue licenses existing businesses had purchased. Patricia McPike, representing Sitka Char (hospitality industry interests), said the petition appeared to rely on visitor counts and seasonal patterns and argued the tourism commission process had not engaged some stakeholders.

Amy Ainsley, Planning and Community Development director, explained technical aspects of state licensing: there are special seasonal REPLs that count under a different quota, and the state's formula uses total visitor counts divided by 182 days (six months) to calculate how many seasonal licenses a community may qualify for. Ainsley said she had done the math and \"I think that we qualify for probably 3, and we currently have 2 issued.\" She also noted that other communities had petitioned the state recently; some requests were reduced by the state (Homer and Haines each received fewer licenses than they requested).

After public comment, the assembly amended the resolution to request three additional REPLs instead of six; the amendment passed on roll call (5–1). Several members expressed concern, however, that outreach to current license holders and other stakeholders had been uneven. Assembly member Kevin (Deputy Mayor) urged more outreach and suggested referring the matter to a commission for further study.

Assembly member Mosher moved to postpone the amended resolution to the second meeting in October to allow additional public outreach and stakeholder engagement; that motion passed 6–0. During debate members cited competing priorities for summer business owners, the complexity of state rules on seasonal permits, and the need for clearer economic-impact information before the assembly submits a petition to the state.

The assembly did not make or deny any allocation of licenses at the meeting; the postponement means the assembly will revisit the amended petition and any further outreach or analysis at or before its Oct. 28 meeting. Individual businesses would still need to file separate petitions to the state if and when the assembly submits a request.

Votes at a glance
- Amendment to reduce requested REPLs from six to three: passed 5–1 (amendment unclear on individual second).
- Motion to postpone the amended resolution to Oct. 28: passed 6–0.

Clarifying details and next steps
The assembly asked staff to undertake additional outreach to current license holders and other stakeholders and suggested sending the issue either back to the tourism commission or to the planning commission for further community review. Administration staff will also provide clarifications on the mechanics of seasonal licenses, the state quota formula, and opportunities for public comment on individual petitions when they are eventually filed with the state.","After hours of public comment and an amendment that reduced the number of requested licenses from six to three, the Sitka City and Borough Assembly voted 6–0 to postpone a resolution petitioning the state for additional restaurant/eating-place (beer-and-wine) licenses until its second meeting in October.","actionData","errors"]

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Assembly approves operating agreement with Highmark Marine for Sitka haul-out; fishermen raise revenue and renewal concerns

Sitka Assembly postpones vote on petition for additional restaurant beer-and-wine licenses until October