Assembly approves lease amendment reducing umbrella insurance for Halibut Point adventure park

The Sitka City and Borough Assembly on March 10 approved Amendment No.1 to the lease with Sciatica Inc. for the adventure‑park property at 4951 Halibut Point Road, changing the insurance requirements and preserving the lease terms for existing operations.

Municipal Administrator John Leech explained the amendment and said early in the lease negotiations the parties set a $10 million umbrella because the operation and risk profile were less known. After industry conversations and advice from the municipality’s insurance adviser, the amendment reduces the umbrella requirement to $1 million, leaving coverage at $1 million per occurrence, $2 million aggregate, plus a $1 million excess/umbrella layer.

Planning Director Amy Ainsley provided operational context: Sciatica’s 2025 compliance report shows 1,182 guests used the facility, and the lessee has indicated plans to focus on cost-control for the adventure park while continuing to develop cultural programs that are part of the original lease but are not yet fully operationalized.

Assembly members questioned whether new activities or restaurant operations were planned at the site; staff said no expansion had been proposed to date but the lease requires assembly approval if the lessee seeks activities outside the mapped operations. A restaurant liquor-license notice was noted in the newspaper but staff reported they had not received an application and would evaluate whether such an application would require assembly reevaluation of the lease.

The Assembly approved the amendment 6–0. Staff said they will monitor any future proposed changes in operation and bring them to the Assembly for consideration if required by the lease terms.