Rising costs force developer to cancel new boat haul-out in Sitka

A developer has notified Sitka that high construction costs have caused the partnership to withdraw its proposal to build a new boatyard and haul-out.

Sitka's last haul-out operator, Halibut Point Marine, in March pulled up its last boat after it had converted the area into a cruise ship terminal. The decision by Sitka Community Boatyard to abandon its plans leaves no prospect in sight for a replacement operation in Sitka.

Wrangell's Port and Harbors Department has reported an increase in calls to use the community's Marine Service Center haul-out services after the Sitka business closed down.

Garry White, director of Sitka's industrial park, told the community park board at its April 18 meeting of the latest development in the quest for a haul-out and boatyard to serve Sitka's fishing community and other boat owners.

The proposed boatyard partners had sent a letter to inform the city of their decision to rescind their proposal and relinquish their right to the lease on land for the project at the industrial park.

"Although we had adequate funding identified to complete the project when we submitted the proposal, increased cost estimates have made the construction as proposed unaffordable," said project sponsors Linda Behnken (Alaska Longline Fishermen's Association), Jeremy Serka, Sean Hauvig, Dan Falvey (Alaska Sustainable Fisheries Trust), and Jeff Farvour.

Farvour told the Sitka Sentinel that the estimates from contractors came back nearly double the developer's estimates. The partners had planned to purchase a Marine Travelift and build a haul-out pier and a washdown pad, estimated at about $3.2 million in total.

Organizers expressed disappointment in this setback for replacing the boatyard.

"It speaks to the need for the city to take a larger role in this core infrastructure project for the community," Farvour said April 19.

"We're still working on it," Serka said. "We did as much as we possibly could to build a classy haul-out, something Sitka could have. And we put quite a bit of money into designing it. We are kind of at the end of our trail. ... We have a short-term solution but we're still going to require funding from the city."

The city is applying a third time for a federal grant for a Travelift, haul-out pier and washdown pad at an estimated $7.35 million.

 

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