Changes to boat yard rates discussed by port commission

The Wrangell Port Commission met last Thursday, April 4, to discuss a plan to alter lease rates at the boat yard. According to Commission Member John Martin, lease rates at the boat yard cover a wide range, from eight cents per square foot to 28 cents per square foot. Under a new formula the commission is planning to use, several businesses at the boat yard will see their rates decrease, while others will see an increase. Martin said that they are trying to bring a sense of equilibrium and fairness to the lease rates.

Greg Meissner, Wrangell's harbor master, explained the history behind the current situation. When the boat yard was started about 10 years ago, there was no permanent plan the port commission was following. Businesses who showed interest in setting up shop at the boat yard were given the opportunity to auction for space, the price was then determined on the cost of however many boats the lot of land in question could store. As there a large quantity of lots available back then, the first businesses to come in got some great deals. As the boat yard grew and more people came in, the cost to lease lots also grew. Meissner said that the first people to come in have been paying their original lease rates for about a decade, while other businesses are being charged more.

"They already assessed the footprint out there as it is, based on taxes," Meissner said. "The square foot value that they pay taxes on is $16 per foot, then there's a formula that they gave us... So he's 2,000 square feet. They've already valued those lots at $16 per foot for taxes, so that's $32,000, right? If you do the 2,000 times 16. But they have this 'state issued ratio' for Wrangell which is 0.92, and this is all assessor talk. So what you do is you take that 32 [thousand], divide 0.92 into it, it gives you $34,782.61. That's the fair market value in the streets of Wrangell."

There are other factors in determining the lot's value, Meissner said, such as whether or not the lot is on concrete or dirt. The final value is then divided by 12, to determine monthly payments for the lease. Future lease rates will be determined as a percentage of the lot's assessed value, according to documents provided by Meissner, and not the amount bid at auction.

While some people seemed to approve of the new formula for lease rates, others were openly upset. Don Sorric, of Superior Marine Services, was outspoken against the new rates in the meeting. He said that the new formula would almost double his lease rates, and would hurt him and his employees' ability to survive in Wrangell. He also said that these rates were only punishing people who came into the boat yard early on, like he did.

"I feel put upon that I'm going to have to come up with more than a house payment every month just to remain down there at the ship yard," he said. "City government is famous for doing whatever they want no matter what the outcry is. I think that, if anything, you should lower the leases that you think are too high. To put everybody on the same playing field is socialism."

It was pointed out in the meeting that the lower lease rates have stayed the same for roughly a decade and have not kept up with the rate of inflation. Several commissioners also pointed out that the port commission did not have the final say in this matter, they were only advising the changes to lease rates. The public would have the opportunity for further comment, in support or against, at future borough assembly meetings.

In a special meeting on Monday, April 8, the commission came together to renew three five-year leases at the boat yard: Lot five for Jim Pritchett at an annual amount of $3,478.26, lot six for Steven Christensen at an annual amount of $7,200, and lot 7 for Sorric at an annual amount of $6,000.