Sitka Planning Commission Meeting – July 16, 2025

The Sitka Planning Commission met on Wednesday, July 16, 2025, at 7:00 PM in Harrigan Centennial Hall to consider three major items: a land sale request at Bahovec Court, a conceptual minor subdivision at Sawmill Creek Road, and a conditional use permit for a distillery manufacturing operation on Lincoln Street. The commission also received the Planning Director’s report on ongoing projects and heard public comments.

Consent Calendar

• The commission unanimously approved the June 18, 2025, meeting minutes (motion by Commissioner Alderson, seconded by Commissioner Sherman).

Public Comments & Testimony

• No individuals addressed the commission during the Persons to Be Heard portion (items not on the agenda).
• During the subdivision discussion, a written public comment from Adam Kowski was read into the record. Kowski expressed concern that additional residences upstream could increase water flow and potentially cause the existing drainage culvert under his property to fail, stating he would not be responsible for repairing the neighborhood’s water drainage if that occurred.

Planning Director’s Report

• The Planning Director (Amy Ainsley) provided updates on three items:
  • Cruise ship dock zoning text amendment: The Tourism Commission reviewed the draft and recommended that the conditional use be either prohibited in all zones or significantly narrowed, requiring a zoning text amendment for most zones. The draft ordinance will be presented to the commission in August.
  • Gary Paxton Industrial Park (GPIP) zone change: The process to convert the GPIP special district into a regular zoning district is being revisited now that the haul-out is developed. The GPIP board will review the proposal tomorrow, and the commission will see a draft zoning text amendment in the coming months. There are also ongoing conversations about merging the GPIP board with the Ports and Harbors Commission.
  • Land study: At the next meeting, staff will present an update on the land study, including preliminary site investigations, environmental review, and utility infrastructure analysis. The commission will be asked to guide which areas should be narrowed for more intensive study (including wetlands delineation) before winter.

Discussion Items

B. Land Sale Request – 105 and 107 Bahovec Court (Erik Bahrt)

• The applicant, Erik Bahrt, requested to purchase a portion of Tract B and C of Alaska Land Survey 79-4 (C-2 General Commercial Mobile Home District and R-1 Single-Family Duplex Residential District) adjacent to his properties. The land is municipally owned, undeveloped, and contains a significant natural drainage course (a fish-bearing stream) that has been eroding the bank. The applicant intends to stabilize the embankment.
• Staff recommended approval as a boundary line adjustment (not subdivision) and noted that due to the size, shape, and location (challenging access from Kramer Avenue, drainage constraints), competitive bidding would be inappropriate; the land is only useful to the adjacent property owner.
• The commission discussed the need to formally find competitive bidding inappropriate. Commissioner Sherman noted the property’s lack of developability and that access from Kramer Avenue is prohibited by a plat note. A separate motion was made to find that competitive bidding is inappropriate due to the nature of the property and its undevelopable character.

C. Minor Subdivision Conceptual Plat – 2011 Sawmill Creek Road (Casey Finn / Finn Excavation, LLC)

• The applicant proposed a three-lot subdivision on a 42,680-square-foot lot (zoned R-1 LDMH, minimum lot size 15,000 sq ft net). Staff presented a modified conceptual plat that would reorient lot lines to more evenly distribute buildable ground, but this would result in lots B and C being substandard (lot B ~13,400 sq ft gross, lot C ~4,700 sq ft net of access easement), requiring a platting variance for minimum lot size and width.
• Extensive discussion ensued about whether to approve using a variance. Commissioner Sherman expressed concern about “development by variance” and setting a precedent for reducing minimum lot sizes without a clear undue hardship. Commissioner Alderson suggested rezoning the property to R-1 (minimum 6,000 sq ft) coupled with a plat note limiting further subdivision. Staff noted that R-1 would not allow manufactured homes, which are permitted in LDMH, and that the drainage easements and topography limit buildable area. The applicant, Casey Finn, indicated he was open to rezoning if that was the commission’s preference.
• No motion was made; the commission concluded that the applicant received sufficient feedback to decide on the path forward (plating variance or rezoning). The commission did not vote on the conceptual plat.

D. Conditional Use Permit – Distillery Manufacturing at 328 Lincoln Street (Drew Wilson)

• The applicant, Drew Wilson, requested a conditional use permit (CUP) to operate a small-scale distillery (vodka and gin) in a vacant 1,462-square-foot building in the CBD Central Business District. The use is not explicitly in the code; staff interpreted “winery and brewery small scale” as the most analogous use. The permit is a prerequisite for an AMCO distillery manufacturing license and retail endorsement.
• Staff recommended approval subject to conditions (fire separation, building permits, alcohol control regulations). The building official has reviewed the proposal and will require increased fire separation and sprinkler requirements. The applicant noted the building has historical significance as a former bar and that the distillery will target tourists and locals, with minimal odor due to redistilling neutral grain spirits.
• The commission was supportive, noting the building’s revitalization and economic development benefits. A motion to approve the CUP subject to the attached conditions was made and seconded.

Key Outcomes

• Land Sale (Bahrt): The commission unanimously approved a motion to recommend the sale of municipal land (portions of Tract B and C, Alaska Land Survey 79-4) to the Sitka Assembly, with the finding that competitive bidding is inappropriate due to the property’s size, shape, and undevelopable nature. The recommendation includes a boundary line adjustment and a future rezoning of the R-1 portion to C-2. (Motion by Commissioner Alderson, seconded by Commissioner Mudre; vote: all in favor.)
• Subdivision (Finn): No formal decision was made. The commission provided guidance that the applicant should consider either pursuing a platting variance or rezoning the property to R-1 with a plat note limiting further subdivision. The applicant will decide on the next steps.
• Distillery CUP (Wilson): The commission unanimously approved the conditional use permit for distillery manufacturing at 328 Lincoln Street, subject to the attached conditions of approval. (Motion by Commissioner Alderson, seconded by Commissioner Sherman; vote: all in favor.)

Adjournment

The meeting was adjourned. The next regular meeting is scheduled for August 2025.