Sitka’s long-awaited marine haulout is one step closer to opening. That’s after the Sitka Assembly approved an operating agreement Tuesday night (8-12-25) between the city and Highmark Marine for haulout and shipyard operations.
The city has been negotiating an agreement with the Kodiak-based company since the assembly voted in late March to move forward with Highmark’s bid.
“I do have a lot of faith in Highmark,” said assembly member Chris Ystad. “Everything I’ve seen about them, heard about them, they seem to be a pretty good outfit. So I think they’re going to fit in really nicely here.”
Under the approved agreement, Highmark is responsible for day-to-day operations of the city-owned facility, including vessel lift and launch services, dry dockage, equipment rental, and scheduling and billing.
Highmark will keep all profits generated from the shipyard, but will pay the city a monthly operations fee, cover utility costs, and rent warehouse space. In all, city staff estimate the city will get about $84,000 a year under the agreement.
The city has faced a fair amount of pushback from community members working in the fishing and marine services industry over the cost to haul out boats and the decision to let an outside company operate the city-owned facility.
At Tuesday’s assembly meeting, five Sitkans spoke against the contract with Highmark during the public comment period. Some said they’re concerned that the city won’t be making much money from the haulout in comparison to what it invested into building it. Some also expressed concerns about the ability for Highmark to extend its contract beyond the initial five-year period without first getting community input.
“There should be some sort of feedback when we’re handing over a $10 million facility for basically the price of lunch per day,” said Mary Magnuson, a local troller and business owner.
Linda Behnken, director of the Alaska Longline Fishermen’s Association, said she’s concerned that the interests of Highmark are different from those of the local fishing fleet.
“In March, it was pretty unanimous from the industry that this yard is supposed to serve, saying, ‘Don’t move ahead with this. We have a lot of concern about whether this operator is going to meet the needs of our small boat fleet.’ We hold those still,” she said.
Despite the community pushback on Tuesday, assembly members expressed relief at reaching an agreement with lower costs to users than initially anticipated, and a conclusion to a years-long process.
Assembly member Kevin Mosher said the point of the haulout is to provide a service, not to make money for the city.
“This is something to celebrate,” he said. “And I think some people kind of forget the fact that this wasn’t an easy task. A lot of public process went into this, and it was a monumental effort.”
The assembly voted 5-1 in favor of the agreement with Highmark Marine, with assembly member Scott Saline opposed. The agreement began Wednesday (8-13-25) and runs through June 30, 2030. At a recent Gary Paxton Industrial Park board meeting, city staff said they hope to start hauling boats in September.
