Sitka City and Borough Assembly Regular Meeting - August 12, 2025

The Sitka City and Borough Assembly held its regular meeting on August 12, 2025, with Deputy Mayor Timothy Pike presiding. The Assembly approved a routine consent agenda and debated two major new business items: a petition to the state for additional Restaurant and Eating Place Licenses (REPLs) and a landmark operating agreement with Highmark Marine Fabrication for the new vessel haul-out facility.

Consent Calendar

• Item A: Approved the minutes of the February 25, 27, and July 22 Assembly meetings. (Passed 6-0)
• Item B: Approved new distillery manufacturer and retail licenses for Sitka Spirits LLC and Harbor Mountain Brewing Company LLC. (Passed 6-0)
• Item C: Approved renewal of a marijuana cultivation facility and retail store license for Northern Lights Indoor Gardens, LLC. (Passed 6-0)

Public Comments & Testimony

On Resolution RES 25-11 (Additional REPLs):

• Lenise Henderson: Expressed full support for additional licenses as vital for economic development, arguing the seasonal population creates enough demand. (In favor)
• Jasmine Wolfe (reading a letter from Stan Filler Sr., President of Sitka CHARR): Read a letter strongly opposing the resolution, arguing it devalues existing businesses' paid licenses, sets a dangerous precedent, and was rushed without adequate industry input. (Opposed)
• Christian Litten (Wildflower Cafe & Bakery): Spoke in support, stating a license would allow him to grow his business and serve the community year-round. (In favor)
• Cambria Goodwin (Campfire Kitchen): Spoke in support, stating beer/wine sales are crucial for year-round sustainability and clarified that food trucks are not eligible for these licenses. (In favor)
• Mary Magnuson (Mean Queen): Voiced strong opposition, criticizing the lack of an economic impact statement and the rushed timeline. She argued new businesses should purchase existing licenses rather than have the city devalue them. (Opposed)
• Patti MacPike (Sitka CHARR): Opposed the resolution, citing inadequate notification of the industry and questioning the methodology of counting visitors as citizens. (Opposed)
• Drew Wilson: Spoke in support of the amendment to request three licenses. (In favor)
• Luke Bruckert (Campfire Kitchen): Spoke in support of the amendment, arguing competition raises the bar for all businesses. (In favor)
• Peter Menendez (Zoltán’s): Opposed the resolution, stating the town is already over its license cap and new licenses would devalue the investments of existing businesses. (Opposed)

On Item E (Highmark Marine Operating Agreement):

• Linda Behnken (Alaska Longline Fishermen’s Association): Expressed concern that Highmark was the sole bidder, the $84,000 annual return is low for the public investment, and questioned automatic renewal clauses. (Concerned)
• Mary Magnuson: Expressed concern about automatic five-year renewals without Assembly oversight. (Concerned)
• Megan Pasternak (Commercial Fisherman): Noted she only received the agreement that day and had concerns about the clarity of the fee schedule. (Concerned)
• Ben Matthys: Urged caution against expanding Highmark’s scope with little restriction. (Concerned)
• Jonathan Wolf: Presented a financial analysis calculating a 0.7% rate of return on Phase 1, equating to a 140-year payback period. He urged the Assembly to reject the agreement or renegotiate for a percentage of gross receipts. (Opposed)

Discussion Items

• RES 25-11: Petitioning for Six Additional Restaurant or Eating Place Licenses (REPLs)

  • Proposal: A resolution to petition the Alaska State Alcoholic Beverage Control Board for up to six new REPLs to meet seasonal demand and support new businesses.
  • Sponsor Statement (Assembly Member Christianson): The request originated from local businesses but became unexpectedly complex. He felt six licenses was too high and introduced an amendment to reduce the request to three to minimize risk.
  • Debate & Concerns: Assembly Members expressed deep unease about economic impacts and the precedent for existing businesses. The Chamber of Commerce reversed its initial support, asking the Assembly to hold off. Assembly Member Saline analogized the issue to fisheries management, calling it a “bad deal for equity.” Assembly Member Mosher raised concerns about the number of unknowns and insufficient notification of license holders. Staff clarified the notification process and discussed the differences between standard and seasonal REPLs.
  • Outcome: Amended to request three licenses (passed 5-1). The amended resolution was then postponed to the October 28 meeting (passed 6-0) to allow for additional public outreach, potentially via the Planning Commission. The Clerk noted the resolution would need new sponsors.

• Item E: Highmark Marine Fabrication Operating Agreement for Haul-Out & Shipyard Operations

  • Proposal: Approve a five-year operating agreement with Highmark Marine Fabrication to operate the new vessel haul-out and shipyard at the Gary Paxton Industrial Park (GPIP).
  • Staff Presentation (Gary White, GPIP Director): Reviewed the negotiated agreement, including reduced haul-out fees (down $3/foot), a $2,000 monthly payment to the city, and annual reviews. The heated washdown pad was removed from the project scope to avoid material-related delays.
  • Assembly Discussion: Members celebrated the milestone, characterizing the facility as essential infrastructure. The $700,000 city investment to buy down rates was highlighted. Members emphasized the importance of annual performance reviews. Assembly Member Christianson noted the rates are competitive and the community is ready for the service.
  • Outcome: Approved 5-1. Operations are expected to begin this season. The city will not proceed with the heated washdown pad.

Key Outcomes

• Consent Agenda: Approved unanimously (6-0).
• REPL Resolution (RES 25-11): Amended to request three licenses (5-1). Postponed to the October 28 meeting (6-0) for broader community outreach.
• Highmark Marine Haul-Out Agreement: Approved (5-1). Facility operational this season; heated washdown pad removed to prevent delays.
• Acting Administrator’s Report: Josh Branthoover confirmed the concrete washdown pad will proceed without heating to avoid a 12-week delay.
• Attorney’s Report: Cell phone tower appeal hearing scheduled for August 21.
• Clerk’s Report: Municipal election and citizen initiative signature verification process updates.