The borough assembly unanimously approved a memorandum of understanding with a cruise line at a special meeting Thursday, Aug. 21, to determine next steps toward a new downtown cruise ship dock.

The borough has been talking since spring with American Cruise Lines, which wants to build or lease a dock to accommodate its ships that spend the night in town.

The agreement with American Cruise Lines “does not commit either party to specific construction, operational or financial obligations,” according to the staff report prepared for the assembly meeting.

“Any final lease terms, construction responsibilities or revenue agreements will be subject to assembly review and approval through future definitive agreements.”

Borough Manager Mason Villarma said the memorandum of understanding establishes a framework to move forward with concept and design options and to gather community feedback.

The Connecticut-based cruise line has applied for a 40-year lease on borough-owned tidelands near the Nolan Center to build a dock, and the borough has been looking at filling in a couple of acres in front of the center to possibly accommodate the dock and other water development.

Last month, the assembly authorized issuing up to $9 million in revenue bonds for the fill and other improvements, but nothing will happen without user contracts to pay back the borrowing.

During public comment on Aug. 21, Dale Parkinson objected to establishing any agreement with the cruise line.

“I found Wrangell from a cruise I was on back in 2005,” he said. “I liked Wrangell because it was refreshingly different, compared to other places we went to. The businesses here are locally owned and operated instead of being owned by cruise lines and shutting down in the winter months. I don’t want to see this town become the next Juneau or Ketchikan.”

Villarma said the American Cruise Lines footprint would be much smaller than those examples.

“This is a situation involving smaller boats of approximately 175 passengers, and possibly less,” he said. “They are also planning to build smaller boats with a smaller number of passengers.”

The largest ships to call on Ketchikan, Juneau and other ports can exceed 4,000 passengers.

Villarma said the proposal differs from larger ports not only in vessel size but also in passenger demographics.

“We’re talking about the type of cruise that costs quite a bit more, and the average customer has more disposable income,” he said. “And when the smaller boat is docked for anywhere between 16 and 24 hours, those passengers will be in our community, spending money, eating at our restaurants and supporting our businesses.”

Assembly Member Jim DeBord addressed Parkinson’s concern.

“I just want to say that, if this were a deal that would be bringing 1,000-passenger ships, I wouldn’t support it,” DeBord said. “This is not like what other locations have.”

“We are in control of our own destiny with this,” Mayor Patty Gilbert said. “And that is important. That’s what we want.”