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Record of Proceedings

Sitka City and Borough Assembly Regular Meeting - May 13, 2025

City and Borough Assembly — Tuesday, May 13, 2025
BodySitka, Alaska
SessionCity and Borough Assembly
DateTuesday, May 13, 2025
StatusFILED
Video Record
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Transcript — Verbatim
0:00

Uh welcome everybody uh to the regularly scheduled meeting of Tuesday, May 13th, 2025.

0:05

Please join me for a flag salute.

0:10

I pledge allegiance to the flag of the United States of America and to the Republic for which it stands one nation under God, indivisible with liberty and justice for all.

0:27

The Assembly of the City and Borough of Sitka would like to respectfully acknowledge the traditional first people of Sheetka.

0:34

With gratitude, we proceed on Clinkit Ani.

0:38

Sarah Roll Call, please.

0:39

Mayor Eisenbeis.

0:41

Present.

0:41

Mr.

0:41

Pike?

0:42

Here.

0:43

Ms.

0:43

Carlson?

0:44

Here.

0:44

Mr.

0:45

Yestad?

0:46

Here.

0:46

Mr.

0:47

Christensen.

0:48

Mr.

0:49

Mosher?

0:49

Here.

0:50

And Mr.

0:50

Celine.

0:51

Here.

0:54

Thank you.

0:55

Correspondence or agenda changes this evening.

1:01

Seeing none, there are no ceremonial matters that'll bring us to special reports.

1:05

We do have a couple scheduled special reports this evening.

1:10

We'll start with the Sitka Community Land Trust, please.

1:22

Ladies and gentlemen of the Assembly and Administrator Leach, Attorney Jones.

1:27

I'm Randy Huey of the Sitka Community Land Trust to give you a quick update on what's happened in the past year since the last time I gave an update.

1:36

With regard to the buildings in the Suze Hini Shock neighborhood, House number 11 is dried in and will be complete in September.

1:43

House 12 starts in June out of 14 homes.

1:47

We will go vertical on the three duplexes in June also.

1:52

That's fully funded by a HUD grant.

1:54

We'll complete that neighborhood at the end of 2026 or early 2027, and there'll be 20 dwellings there at that time.

2:03

Our first resale happened in the summer of 2024, and this is where we got to see if the uh in fact the community land trust model of home ownership preserves affordability.

2:14

And short answer is yes, it did.

2:16

So a home which sold at 275,000 in 2022 sold at 35,000 two years later.

2:26

And the seller of the home took away 25,000 of the increase in the appraised value.

2:34

So they did fine on the investment, and the next buyer got a good buy.

2:39

That's the way it's supposed to work.

2:41

With regard to funding, we now have grants from the largest funders in the state of Alaska.

2:48

The Alaska Housing and Finance Corporation, the Nali Commission, HUD, Alaska Community Foundation, the Rasmussen Foundation, and First Bank and Hames Corp.

3:01

So we have sort of broken into the ranks of the larger funding entities in the state.

3:07

We've learned how to do that, just as the federal money is now going to be tougher and tougher to get.

3:14

Perhaps that comes back in the future.

3:17

We've worked to reduce the cost of a construction loan.

3:20

So each of our last eight homes, the home buyer had to pay $22,000 in home uh construction loan costs, 10 and three quarters percent per nine months.

3:30

It's terrible, it's seven or eight percent of the house.

3:33

And so we got a grant from the Dodali Commission for $300,000 with which we build a house, sell the house, put the money back in, build another house, charge as small of administrative fee as we possibly can.

3:46

We're working currently with the Rasmussen Foundation to give us a 1% loan for $220,000, and we'll use it in the same way.

3:55

It's not a done deal, but it but it looks good.

3:57

I'm optimistic that we will receive that funding.

4:00

And we want to continue to raise money into this working capital fund so that we have eight to nine hundred thousand dollars so that we can be building three to four houses at once without construction loans.

4:11

That's a real significant savings uh to our home buyers.

4:16

The rental units will be complete in 2026, and that will be helpful to Sitka to have six rental units and also helpful to the community land trust in terms of the rental income helping operate the nonprofit.

4:29

The rent will be below market value.

4:32

The board has not yet established what that rate will be.

Discussion Breakdown — Share of Meeting
Public Engagement██████████████████18%
Tourism█████████████████17%
Procedural██████████10%
Affordable Housing█████████9%
Transportation Safety█████████9%
Cannabis Regulation█████████9%
Parks and Recreation████████8%
Historic Preservation████████8%
Harbor Operations██2%
Summary of Proceedings

Sitka City and Borough Assembly Regular Meeting - May 13, 2025

The Sitka City and Borough Assembly met on Tuesday, May 13, 2025, at 6:00 PM in Assembly Chambers. The meeting began with special reports, followed by consent agenda, unfinished business, new business, public comments, and reports. Key actions included approval of a lease for the Sitka Community Gardens Association, first reading of ordinances for an EV transit van and onsite marijuana consumption facilities, acceptance of a scoreboard donation from Holland America Line, and a lease amendment for the Sitka Maritime Heritage Society.

Consent Calendar

  • ORD 25-10 (Supplemental appropriations for FY2025: Homeland Security Grant for AlaskEx travel and Fire Department Radios) was approved on first reading by a unanimous 7-0 vote.

Public Comments & Testimony

  • Deven Mitchell (Executive Director, Alaska Permanent Fund Corporation) announced that the corporation will hold public meetings in Sitka on May 28 and 29 at Harrigan Centennial Hall, covering asset allocation and fund performance.
  • Austin Cranford raised concerns about the city's social media policy, citing recent court cases (Lynn v. Key, O'Connor Ratcliffe v. Garner), and criticized the city's communication regarding a recent lawsuit settlement, alleging the city violated the settlement's media non-disclosure clause.
  • Bruce Gazaway (Sitka Maritime Heritage Society) thanked the Assembly for approving the lease amendment for the Japonski Island Boathouse and praised city partnerships with volunteer groups.

Special Reports

  • Sitka Community Land Trust (SCLT) – Randy Hughey reported: 20 dwellings planned in Suze Hini Shock neighborhood; House 11 to be complete in September, 3 duplexes starting June 2025; first resale in 2024 showed affordability preserved (home sold for $275,000 in 2022, resold at $35,000 increase, seller retained $25,000). Average home buyer income is 68% of area median income. SCLT has grants from major funders and is seeking land from city, private, and federal sources. He noted alarming demographic trends: home costs up 45% in 10 years, wages up 22%, population over 65 up 34%, working-age population down 13%, youth under 19 down 18%.
  • Visit Sitka 3-Year Strategic Marketing Plan – Rachel Roy presented a regenerative tourism plan emphasizing education, cultural tourism, and meetings/events. Key pillars: regenerative tourism, cultural tourism, education, meetings/events. Year-one activities include a visitor pledge, workforce recruitment (600 open jobs), wayfinding, and a cultural tourism hub. The plan was approved by the Tourism Commission on May 8.
  • Harbors Quarterly Report – Harbormaster Stan Eliason reported: FY25 budget 75% expended; 23 stalls assigned from waiting list; 223 people still waiting; 8 vessels to be disposed; Harbor Commission on recess until fall.
  • Public & Government Relations Quarterly Report – Director Melissa Wileman reported: federal earmark requests scaled back; third edition of CBS News newsletter sent; city website redesign in progress; 43 bulletins sent via GovDelivery reaching 16,000 unique email addresses; social media policy update with new case law language; airport escalator ribbon cutting rescheduled to August 16.

Discussion Items

  • ORD 25-09 (Lease of Tract 4-B on Jarvis Street to Sitka Community Gardens Association) – Approved on second and final reading, 7-0. A groundbreaking event was announced for Saturday, May 17 at 1:00 PM.
  • ORD 25-11 (Supplemental appropriations for EV Transit Van for Parks and Recreation) – Parks and Rec Manager Kevin Knox explained the purchase of a used 2022/2023 eTransit van for $66,900 (down from $115,000 due to market shifts). The Sitka Recreation Foundation donated $45,000 so far, with ongoing fundraising. Assembly members discussed reduced donation amount, insurance costs, and liability of operating a van service. The ordinance was approved on first reading, 7-0.
  • ORD 25-12 (Amending Title 10 and 22 to regulate onsite marijuana consumption facilities) – Planning Director Amy Ainslie outlined state regulations (2019 AMCO rules) and proposed local zoning amendments. The Planning Commission unanimously recommended approval. Onsite consumption allowed only as an endorsement on retail marijuana licenses, with conditional use permits in commercial and industrial zones. Assembly members noted the ordinance provides more oversight than alcohol establishments. Approved on first reading, 6-1 (Deputy Mayor Pike voted no).
  • 25-070 (Accept donation of scoreboard for Moller Park from Holland America Line) – Maintenance Superintendent Connor Dunlap reported the existing scoreboard had failing components; Holland America donated a new scoreboard with no conditions. City will incur costs for removal and disposal. Assembly members thanked Holland America and local businesses for installation support. Approved unanimously, 7-0.
  • 25-071 (First Amendment to Lease Agreement with Sitka Maritime Heritage Society for Japonski Island Boathouse) – Amy Ainslie reviewed the 20-year lease (2005) and the first 10-year extension. The amendment clarifies responsibilities under a historic preservation covenant (17 years from October 2024). The Society has demonstrated good standing and community support (1,200 volunteer hours in 2024). Approved unanimously, 7-0.

Key Outcomes

  • ORD 25-10 (Consent) – Approved first reading, 7-0.
  • ORD 25-09 – Approved second and final reading, 7-0.
  • ORD 25-11 – Approved first reading, 7-0.
  • ORD 25-12 – Approved first reading, 6-1.
  • 25-070 – Approved, 7-0.
  • 25-071 – Approved, 7-0.

Reports

  • Mayor Eisenbeisz reported on the Government-to-Government dinner with Sitka Tribe of Alaska (bear issues discussed) and a town hall hosted by Safeguard Sitka and Small Town Soul.
  • Administrator Leach noted ongoing negotiations with collective bargaining units.
  • Liaison Reports: Ystad updated on GPIP Board (travel lift erection, future land disposition); Mosher reported on Parks and Recreation Committee (concerns about baseball mound maintenance, field use changes, and commercial recreation permits).
  • Clerk Peterson announced early voting for the special election began May 13, with hours weekdays 8:30-4:30 and Saturdays 9-12; over 150 voters on the first day.
  • Carlson updated on the Sitka Walkability Institute Team, which is brainstorming temporary improvements for crosswalks and bump-outs.

Adjournment

The meeting adjourned at 7:30 PM.

Meeting Transcript

Uh welcome everybody uh to the regularly scheduled meeting of Tuesday, May 13th, 2025. Please join me for a flag salute. I pledge allegiance to the flag of the United States of America and to the Republic for which it stands one nation under God, indivisible with liberty and justice for all. The Assembly of the City and Borough of Sitka would like to respectfully acknowledge the traditional first people of Sheetka. With gratitude, we proceed on Clinkit Ani. Sarah Roll Call, please. Mayor Eisenbeis. Present. Mr. Pike? Here. Ms. Carlson? Here. Mr. Yestad? Here. Mr. Christensen. Mr. Mosher? Here. And Mr. Celine. Here. Thank you. Correspondence or agenda changes this evening. Seeing none, there are no ceremonial matters that'll bring us to special reports. We do have a couple scheduled special reports this evening. We'll start with the Sitka Community Land Trust, please. Ladies and gentlemen of the Assembly and Administrator Leach, Attorney Jones. I'm Randy Huey of the Sitka Community Land Trust to give you a quick update on what's happened in the past year since the last time I gave an update. With regard to the buildings in the Suze Hini Shock neighborhood, House number 11 is dried in and will be complete in September. House 12 starts in June out of 14 homes. We will go vertical on the three duplexes in June also. That's fully funded by a HUD grant. We'll complete that neighborhood at the end of 2026 or early 2027, and there'll be 20 dwellings there at that time. Our first resale happened in the summer of 2024, and this is where we got to see if the uh in fact the community land trust model of home ownership preserves affordability. And short answer is yes, it did. So a home which sold at 275,000 in 2022 sold at 35,000 two years later. And the seller of the home took away 25,000 of the increase in the appraised value. So they did fine on the investment, and the next buyer got a good buy. That's the way it's supposed to work. With regard to funding, we now have grants from the largest funders in the state of Alaska. The Alaska Housing and Finance Corporation, the Nali Commission, HUD, Alaska Community Foundation, the Rasmussen Foundation, and First Bank and Hames Corp. So we have sort of broken into the ranks of the larger funding entities in the state. We've learned how to do that, just as the federal money is now going to be tougher and tougher to get. Perhaps that comes back in the future. We've worked to reduce the cost of a construction loan. So each of our last eight homes, the home buyer had to pay $22,000 in home uh construction loan costs, 10 and three quarters percent per nine months.

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