Assembly clears way for federally funded Skow Bay haulout; leaseholders warned to prepare for relocation
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Summary
The Petersburg Assembly voted unanimously to declare four Skow Bay leases terminable to allow construction of a federally funded haulout and boatyard project, drawing concern from existing leaseholders about short-term business disruption and questions about relocation assistance.
The Petersburg Borough Assembly unanimously approved a resolution on April 13 determining four Skow Bay lease premises are needed for a publicly funded haulout and boatyard project and authorizing termination of those leases to allow construction.
Harbor Master Walton and borough staff described a project schedule driven by federal grant conditions and environmental work windows; the harbor master said the borough has attempted to minimize disruption by providing an extended notice period and by planning application processes and reassessments for future leases. "We're giving them almost 200 days" of notice and trying to use the calendar year so businesses can prepare, the harbor master said.
Several leaseholders and supporters, including a long-time lessee identified as John and local boat-operator Taylor Pilar (referenced), urged the assembly to consider the economic consequences of lease termination, emphasizing that some local firms invested heavily in infrastructure at Skow Bay. "Those leases allowed us to make an estimated 600 plus hauls... employing many shipwrights," John said, asking for consideration of local jobs and continuity of services.
Assembly members and staff discussed mitigation options including temporary relocation on prepped perimeter lots, redrawing future lease footprints, and language in future leases to ensure alignment with federal grant terms. Manager and harbor staff said the borough needs to meet federal grant conditions or risk having to repay funds; assembly members stressed the borough's obligation to follow federal grant requirements while also seeking to reduce business impact where practical.
The assembly approved Resolution 2026-09 unanimously. Members said they expect staff to work closely with affected leaseholders to identify short-term relocation and long-term opportunities to apply for new leases once the facility is constructed.
Next steps: Staff will proceed with project schedule and lease-termination notifications per the resolution, prepare application and reassessment processes for future lease allocations, and work with contractors to minimize operational interruptions during construction.
