In a deal nearly a year in the making, the City of Sitka has sold a derelict dock at its industrial park. And although property has changed hands, no money has.

Hanson Maritime first put in a bid on the 61 year-old dock in November of 2018 — if “bid” is the correct term. When Turnagain Marine Construction last year bailed out on its offer to demolish the dock for $90,000, Lee Hanson stepped forward with a proposal to acquire the dock for his marine salvage business, and rebuild it at his own expense.

The associated tidelands that the dock occupies are valued at only $67,000, so the $22,000 difference between that amount and the anticipated demolition cost of $90,000 is essentially Hanson’s purchase offer — hence he’s “buying” the dock without writing a check.

The board of the Gary Paxton Industrial Park and the assembly have supported the idea from the beginning, but some in the public are still scratching their heads. Two spoke up to question the deal, both involved in the marine trades.

The old utility dock is right in the middle of what many hope becomes a public boatyard and marine services center, to replace a private haul out expected to close within two years. 

Mike Nurco has been a shipwright in Sitka for 16 years.

“I want to make sure that it’s not going to limit our plans for a shipyard that is so important to Sitka,” he said.

Nurco testified that there were many details yet to be settled about the proposed boat yard, and that the dock sale was possibly premature.

Sitka’s interim administrator Hugh Bevan, who has also served on the board of the industrial park, suggested that plans were farther along than many people realized.

“I’m confident that we’ve got the ability to figure out how to accommodate everything out there,” said Bevan. “Some things might get a little skinnier — like this ramp — but timing is everything, and this proposal to build this new travel lift at Sawmill Cove is definitely something that has to happen, and I would expect the whole concept to be coming to the assembly before the end of December.”

Although the utility dock transaction has hung up on other issues — mainly the potential for conflict with the moorage of large ships at the park’s new floating, multi-purpose dock — they’ve all been largely resolved. This decision really boiled down to whether three major purposes could all be served in one relatively small area of industrial waterfront: A privately-owned salvage dock, a public multi-purpose dock, and a marine haul out and boat yard.

Assembly member Kevin Mosher asked municipal attorney Brian Hanson — no relation to Lee Hanson — to spell it out.

Mosher – Lee can still have his operation, and if we had a dock, or a haul out at that ramp area, that could still work. Correct?

Brian Hanson –  Right. The concern all along has been what kind of conflict selling the property to Hanson Maritime would create to the haul out ramp, and that’s why we’ve been haggling over the provisions that would properly protect both the floating dock, and the haul out ramp areas. And when you vote on this one, you’re voting on a document that recognizes that there could be conflicts, and those conflicts could be resolved by strictly following the rules of the road, and will allow that haul out to be properly used.

During public testimony, park director Garry White said his board fully supported the sale, and that a marine haul out remains their top priority.

Assembly members Valorie Nelson and Richard Wein were concerned that the purchase and sale agreement did not include a right of first refusal for the City of Sitka, should Hanson Maritime ever sell the property. Nelson said that she was just looking after the interests of Sitka’s tax payers. Other members of the assembly, however, were reluctant to drag out what has already been a nearly 12 month-long process into yet another meeting over one single detail. The city, as member Thor Christianson said, could always exercise eminent domain if the property were ever needed in the future for a public use. “We have the ultimate hammer,” he said.

The assembly voted 5-0 to approve the purchase and sale agreement of the old utility dock to Hanson Maritime. Assembly members Kevin Knox and Steven Eisenbeisz were absent.

Sitka’s assembly took another step toward building a new seaplane base Tuesday, though the multi-million dollar facility is likely years away.

When the assembly met on Tuesday (8/27) it approved receipt of an $842,629 federal grant to pay for an environmental impact study towards the estimated $16 million project.

The existing seaplane base is over 50 years old and was most recently damaged by a storm and repaired in 2016.

The possibility of a new float plane dock is welcome news to seaplane operators like Kevin Mulligan. He owns a lodge in Port Alexander and runs Baranautica Air Service.

“I’ve gone through years of frustration, and anxiety. Feeling positive and thinking it’s going to happen and it’s not going to happen,” he said. “I’m very happy about this moving forward.”

He said a new float plane dock would be a boon to surrounding communities that don’t have airports and need access to Sitka.  

Assembly member Richard Wein voiced support for a new seaplane base, but wished the grant would fund construction rather than a study.

“I can’t imagine what environmental impact would happen that is not already being impacted by what business we do here within the channel,” he said. “I’m for it, but it doesn’t make sense.” 

Public Works director Michael Harmon said that the study would be necessary to satisfy federal funding requirements. The grant also includes funding for aviation planning services. The city expects 90 percent of the cost for the entire project to be picked up the Federal Aviation Administration.

“Their standards are built on international airports,” he said, “so the noise generated from a seaplane base or the impacts of a seaplane base are so minor in their standards, I envision it to be insignificant.” 

Much of the study, he said, would look at potential impacts from constructing a new dock around tidelands. The city would likely have to set aside other wetlands as mitigation for the project. The entire process would likely take five years to be completed — but that’s the trade off if the city wants the feds to pay for it.

“It’s a lot of paperwork and a lot of reports to get through it, but at the end of the day we get 93.75 percent funding. So that’s the pros and cons of it,” Harmon said.

The Assembly moved to appropriate $56,176 as matching funds to accept the federal grant. 

This comes about a week after Harris Air announced it was ceasing passenger and cargo service in September, leaving Baranof Island with one less airline.

Additional coverage of the August 27, 2019 assembly meeting can be found here.

Watch the full video of the August 27, 2019 assembly meeting here

The Gary Paxton Industrial Park is selling a derelict dock to Sitka-based Hanson Maritime Company. 

Company owner Lee Hanson told the Assembly on Tuesday evening that the terms were nearly set, save a few minor details. 

“There’s a small section that I have some issue with too, but I don’t think that’s something that couldn’t be dealt with tonight, it’s fairly minor,” said Hanson.

Hanson said he was fine discussing the contract in public. But the agenda had called for that to take place in an executive session. Several on the Assembly questioned if one was needed —  Aaron Bean was among them. 

“We get a lot of comments about what we talk about behind closed doors,” he said. “If there’s nothing to hide then I don’t see the point.” 

The city attorney advised that business negotiations should be behind closed doors. The reasoning is that the city’s finances are sensitive and the Assembly should be free to speak candidly. 

Mayor Gary Paxton agreed. 

“It would be more efficient to go into executive session,” he said. “My preference is to go into executive session and get it done.” 

“I understand the reasons for wanting to discuss what the city’s position is, and maybe some of the liability the city is facing with this contract, privately with the attorney,” said Sitka Sentinel reporter Shannon Haugland during public testimony.

“I would prefer that the discussions with Mr. Hanson take place in public, or that he makes his comments in public,” she continued. “It seems like having both sides of the negotiation behind closed doors just doesn’t look good. Efficiency is not a reason to go into executive session.” 

In the end, the assembly heard Hanson’s term objections and negotiated with him behind closed doors. The body voted 4-2 to move to executive session with assembly members Richard Wein and Kevin Mosher opposed.

An hour later the Assembly emerged and directed city staff to move forward with a final contract.

It wasn’t the only closed door deliberations on Tuesday evening. A lawsuit brought by former Sitka police detective Ryan Silva over allegations that SPD broke state procurement laws when it bought automatic guns is set for mediation. Earlier this month Silva’s attorneys indicated the case might not go to trial. The city denies the claims and no action was taken by the Assembly which conferred with its attorney for about 15 minutes. 

And in other business, the assembly, on a split vote, advanced a motion to spend $150,000 on electrical repairs to the former Sitka Community Hospital building that SEARHC is leasing from the city. That advanced on first reading on a 3-3 vote with assembly members Bean, Richard Wein and Valorie Nelson opposed.

The Assembly also:

• Voted 6-0 to approve receipt of an $842,629 grant from the FAA to complete an environmental assessment for the new Sitka Seaplane Base, still in its planning stages.
• Voted 6-0 to appoint Al Stevens and Mike Johnson to unexpired terms on the GPIP Board of Directors, appoint Stacy Mudry to a three year term on the planning commission, and to reappoint Joshua Thomas and Charles Woodcock to three year terms on the Library Commission and Health Needs and Human Services Commission, respectively.
• The body honored Sitka Community Hospital board members and Library Commission member Alice Johnstone with service awards.
• It approved moving $1.2 million in committed funds that weren’t spent in FY19 to the FY20 budget.
• It approved the recommendations from the assembly “position” subcommittee to allow for the hiring of a tax specialist.

The Alaskan Dream is on the same rock it hit on October 7th. The owner will potentially attempt a salvage during next week’s high tide. (Photo courtesy of Natural Resource Manager Steve Winker)

A yacht that ran aground in Sitka three weeks ago remains on the rocks, but is completely defueled and may be salvaged next week.

The Alaskan Dream struck a rock in Sitka Sound during high tide on October 7th. The vessel was carrying 3,000 gallons of diesel aboard. The fuel tanks were not damaged in the grounding. An estimated 5-15 gallons spilled from another source during the collision. 

In the days following, Hanson Maritime Company removed all diesel, drained the lube oil reservoirs and engines, and removed all batteries and potential sources of pollution.

All that remains is the vessel, a 74-foot pleasure craft homeported in Sitka and owned by Gregory Stevenson. The hull, made of fiberglass-over-wood, has a big hole. The keel pushed through upon impact.

Stevenson remembers the day the collision happened, which saw blue skies and calm waters.

“Not a ripple in the water and my wife and I were up in the command bridge just chatting away and I wasn’t paying attention to my instruments. That rock was about five feet underwater and I draft six feet, so…stupidity on my part, you know?,” Stevenson said. “Whacked that rock and stayed right where I hit it.”

He adds the Alaskan Dream was equipped with forward-seeking sonar, but the alarms indicating the approaching rock were not turned on.

The area has grounded boaters before. Given the danger it poses, Stevenson believes it should be marked. “I don’t know why it isn’t marked by the Coast Guard. Just a little bit further down, there’s a big green buoy on some shoal that’s right there,” he said. “I can’t believe that there would be a rock right out there in the middle of the channel right there and not have a buoy on it.”

Since the vessel is on state land, the Alaska Department of Natural Resources is overseeing the salvage. Stevenson has hired Hanson Maritime Company to assist with that operation. President Lee Hanson says he plans to use lift bags and patching to reduce the size of the hole before attempting to float the Alaskan Dream.

The boat is Stevenson’s home. The former Eagle River resident sold everything to live aboard the Alaskan Dream with his family as an alternative to housing on land.

“Homes down here are very expensive. We didn’t want to jump into another 30 year mortgage. So that’s our first option is to go with the yacht and if for some reason it gets off the rock and goes straight to the bottom, then we use Plan 2. We’re not going to leave Sitka. We love it down here.  This was our dream to move down here. So this is where we are,” Stevenson said.

With big tides rolling in, he’ll attempt the salvage operation between November 1st and 4th. If the Alaskan Dream floats, Stevenson will take the boat to Halibut Point Marina for further repairs. He faces ongoing discrepancies with the insurance company and is paying out of pocket for now.

The Alaskan Dream struck a rock at high tide on Saturday (10-07-17), spilling an estimated 5-15 gallons of diesel near Middle Island in Sitka. The boat remains aground and salvage operations are underway by Hanson Maritime Company. (Photo courtesy of Don Kluting)

This is a developing story. KCAW will report further details as they emerge.

A yacht ran aground in Sitka on Saturday (10-07-17) during the highest tide of the month, spilling an estimated 5 to 15 gallons of diesel near Middle Island.

The Alaskan Dream is a 74-foot pleasure craft with a hull made out of fiberglass-over-wood. The vessel is homeported in Sitka and owned by Gregory Stevenson.

Around 1:40 p.m. on Saturday, the Alaskan Dream struck a rock between Middle and Little Gavanski Islands. The rock was completely submerged in the 11.3-foot high tide.

KCAW was traversing the same stretch of water shortly after the accident took place and observed the Alaskan Dream near Border Rocks listing on its port side. Half a dozen good samaritan vessels were on standby.

The tide was 11.3 feet high on Saturday (10-07-17), the highest of the mouth, when the Alaskan Dream struck a rock in Sitka Sound. KCAW observed the vessel through binoculars. (Emily Kwong/KCAW photo)

As of Monday afternoon (10-09-17), the Alaskan Dream remained perched on the rock and stable.

According to an Alaska Department of Environmental Conservation report issued today, the U.S. Coast Guard estimates 5 to 15 gallons of diesel were discharged through the tank vent during or immediately after the grounding.

Stevenson hired Hanson Maritime Company to perform a salvage of the vessel. Their Tug Salvation arrived on scene at 5:30 p.m on Saturday. Captain Lee Hanson says his focus over the next several hours is to remove all environmental pollutants from the Alaskan Dream. So far, they’ve lightered 1700 of an estimated 3000 gallons of No. 2 diesel fuel onboard. Boom has been deployed around the vessel.

Once the tide fell, the crew was able to inspect the hull. They found a significant hole with a stabilizer fin pushed through. Hanson estimates the hole is 18 inches by four feet in size and added, “No amount of pumps could have kept it afloat.” He allowed some water to flood Alaskan Dream so it can’t achieve buoyancy and shift position. During high tide, Hanson estimates roughly ⅓ of the boat is underwater with the engine room flooded.

Stevenson and members of his immediate family were on board when the vessel ran aground. No injuries were reported.

Due to discrepancies with the owner’s insurance provider, the U.S. Coast Guard is overseeing the defueling of the Alaskan Dream and any environmental clean-up. Federal On-Scene Coordinator Representative Ken Farah said they expect to finish defueling today and will then do a full sweep for miscellaneous polluants (batteries, hydraulic fuel, etc.)

Once the vessel is clean enough to no longer be a threat to the environment, the owner will determine what to do next. The weather forecast this evening predicts a lessening chance of rain showers, with waves at 2 feet.