Paul Fuess, president of the Shellfish Growers Cooperative, told the Ketchikan Gateway Borough Assembly during the public comment period on Nov. 3 that his group has resubmitted its mariculture hatchery application and asked the assembly to reconsider the site lease. Fuess said the project—designed to produce geoduck seed locally—had previously been accepted but stalled when construction bids rose sharply after a tariff-driven spike in steel prices.

Fuess said the cooperative sought a 20-year lease term so private financing could be secured; he told the assembly his financing model followed salmon-hatchery cost-recovery patterns and that Division of Investments had agreed a financing approach could work. Fuess said the cooperative is not requesting a loan or direct funding from the borough, will pay lease costs, and that updated loan application documents, forms and pro forma materials were forwarded to borough staff and the assembly.

During questions, Fuess said the project’s target production remains 500,000 seed per year and that a local hatchery is needed because geoducks are indigenous to Southeast Alaska and cannot be imported from other regions. Assembly members and staff discussed the resubmission process, outstanding permit and financial form questions (a farm cooperative files IRS Form 1120-C rather than some nonprofit forms), and whether the borough’s open request-for-proposals schedule left room for resubmittal; staff said communications received from Fuess had been forwarded to the assembly and that some requested historical pro forma items remained outstanding in staff records.

Fuess asked the assembly either to reconsider his prior application or to schedule the resubmitted application for an upcoming meeting. He said the cooperative is prepared to provide any additional materials on request and will resend the resubmittal to ensure staff and assembly members have the complete loan application and updated cost information.

No formal assembly action was taken at the meeting on the lease application; staff indicated an open request-for-proposals process was underway and that resubmitted proposals could be considered under that process.