Sitka’s new boat haul-out should be in full operation in time for pulling boats out of the water at the end of summer, according to city officials.

The borough assembly voted 5-1 on Aug. 12 to approve a five-year agreement with Kodiak-based Highmark Marine Fabrication to operate the new haul-out and shipyard at the borough-owned Gary Paxton Industrial Park.

The vote marks the conclusion of years of work to find funding, design the facility and investigate management options for the haul-out which is critical for the fishing community.

Garry White, director of the industrial park, said the vote comes in time for the first boats to be hauled out in September.

“Not having a haul-out for a number of years, there’s a pent-up demand, and I’m receiving lots of calls from folks wanting their boats hauled out,” he said.

The project started with voter approval in 2021 for spending $8.2 million on the project from the sale of the Sitka Community Hospital building and land to SEARHC. To date, funding from various sources totals more than $10 million.

Comments from members of the fishing community and others at the Aug. 13 assembly meeting included concern about Highmark's first right of refusal for additional land on the west yard of the property, the provision for one-year renewals after the first five years, and disappointment about what they saw as a low return on investment for the community.

“If we wanted more money, guess who’s paying for it? It ain’t Highmark, it’s the fishermen. The fishermen are paying for it, and that means our rates are going up,” Assembly Member Chris Ystad responded about calls for the borough to make more money from the project.

“Especially the drydock rates, they came down way better than I expected,” he said. “I think everyone sees the value in getting those numbers down, getting them competitive with some of our other Southeast communities, so we can get the long-term projects here in Sitka, and we know that’s where the money’s made, not really hauling the boats.”

Linda Behnken, director of the Alaska Longline Fishermen’s Association, told the assembly on Aug. 12: “We have a lot of concern about whether this operator is going to meet the needs of our small boat fleet.” She pointed out that only one bidder submitted an offer to run the lift and yard.