Dear Editor: On Tuesday, the city Assembly will vote on a bid from Highmark Marine to operate Sitka’s new boat yard. This decision is critical to the future of Sitka’s working waterfront.
In 2022, our community voted strongly in favor of building a marine haul out and boatyard in Sitka. As a fishing community, we recognized the need for a boat yard to sustain our fleet and economy. Thanks to that support, in a little over one month, the
Sitka boat yard will be ready to haul boats.
After local applicants were disqualified through a questionable process, Highmark was the sole entity invited to bid to operate the yard. If the Assembly accepts Highmark’s bid:
– Sitka will have the highest haulout rates in the region—approximately twice the amount, for a three-day haulout, as Wrangell’s boat yard and significantly more than Hoonah.
– No revenue will be returned to the city from Highmark; all haulout revenue will go back to the yard operator and all maintenance costs will be incurred by the city.
– The Sitka boat yard will be unaffordable to many local boat owners and will fail to attract owners with boats that need extensive work—the very projects Sitka needs to support a year-round workforce.
The Sitka community built this yard but now the city is considering subsidizing a non-local private entity to run the yard. WHY WOULD SITKA DO THAT?
To be a successful and competitive yard, the city will need to invest in utility upgrades, security, drainage, and upland development for local businesses and long-term boat storage. This bid provides zero revenue to support these necessary improvements.
Boat yards in Wrangell and Hoonah are operated by the municipalities of their respective communities. They are well-run, efficient yards. The Wrangell boat yard is a full-service yard, operates year-round, and, according to Wrangell’s budget documents, is making a profit.
The City of Sitka has never fairly analyzed a municipally-run boat yard.
– The city’s evaluation did not include important boat yard revenue, such as long-term use and storage.
– The city overestimated staff time needed to run the yard.
The city has assumed the Wrangell boat yard was operated at a loss or subsidized.
THAT IS NOT TRUE. Why would Sitka hand off this investment??
The city should not accept this bid. It is a non-competitive bid and should be rejected. Either the city should operate the boat yard, or the city should identify a private operator through a competitive process that can run an affordable yard.
Information about the boat yard and bid process are on the GPIP and city Assembly websites. Please get informed and please attend the March 25 Assembly meeting to listen, learn, and testify.
Mike Nerko, Stem to Stern
Micheal Litman,
Precision Boatworks
Ben Mathys, Sparks Marine
Linda Behnken, ALFA
Jeremy Serka,
Sitka Custom Marine
Lauren Howard, ALFA
Donna Donohoe
Jeff Farvour, FV Apollo
Chris Hanson, Sitka Machine