A fish hatchery program is extending its lease with the city for another 10 years, with the option to extend for another four decades after that. 

When the Gary Paxton Industrial Park Board met on Thursday, it approved a new lease with the Northern Southeast Regional Aquaculture Association, or NSRAA. The lease combines two lots the hatchery was already leasing that were set to expire this May.

NSRAA requested to lease the lot for $800 a month. Park Director Garry White said that’s a lower rate than the city typically charges for leases, but historically, the park board has approved a lower rate for NSRAA due to the value the program provides for the fishing fleet. 

“Lot one is now a 77,330 square foot lot. It houses two hatcheries. It has a caretaker shack there. The property value itself is valued at $464,000. We’ve done our traditional 9% return on asset value — it comes to $3,480 a month,” White said, but added, “In the past, NSRAA has demonstrated that they provide a lot of revenue for the common fishery property.”

Adam Olson, who runs operations for NSRAA, said they’ve been a tenant of the city’s for 20 years. He said a lower lease ultimately equated to more hatchery fish for the fleet to catch. 

“We are a nonprofit. We balance our budget to a zero line every year. What we don’t receive in set tax or any other revenue sources, we harvest fish out of the water, which is not available to the common property,” Olson said. “So any additional cost we bear is more fish taken out of the water.” 

Board member Chad Goeden said he was somewhat divided about providing a lower lease rate, but ultimately understood Olson’s point and felt his request was within reason.

“On the one hand, I don’t like it, because I’m here as a taxpayer advocate, and this is taxpayer dollars that are not being generated as revenue for the GPIP,” Goeden said. “On the other hand, the purpose of the GPIP is largely, in part, to support the fishing industry here in Sitka, and we are simply exchanging dollars for fish, which then become dollars.”  

Board member Lauren Howard tied NSRAA’s request back to hauling boats and the board’s goal to continue to develop the park.

“If we want boats to haul out of the water, they gotta catch fish. If they’re not out there catching fish, then they’re not going to haul out. We’re not going to see that park grow. We’re not going to see anyone out there, period. And NSRAA has a lot to do with that,” Howard said.

The park board approved NSRAA’s request unanimously. The lease will be reviewed by the assembly at a future meeting.
 
The park board also approved a temporary lease for Silver Bay Seafoods to house temporary employees for the summer. And after several reviews at previous meetings, it advanced a new draft zoning code for the park. That document will be reviewed by the Planning Commission early next month.