Haines Borough is still awaiting a signature by Delta Western executives to finalize a successor of lease for the Lutak Fuel Facility.
“I think we have all the issues resolved,” borough manager Mark Earnest said. “The discussion is nearing the finish line.”
In a separate lease, Earnest said the borough was notified by Delta Western earlier this year it no longer wanted to provide the pumping services at the harbor fueling dock. The borough is temporarily manning that position since it was necessary to immediately fill the need during the busy summer season. The borough has sent out a request for proposals for a private company to provide the service, Earnest said.
“It’s something that we would like very much to see if there was interest in the private sector,” he said.
At question in the Lutak facility lease, said Earnest, is removing the supplemental rent provision – a rent that was charged to Delta Western in addition to the rent charged on the land. Earnest said there was some confusion about the applicability of the provision and if it could continue. Instead, the borough has suggested charging an increased tariff on the fuel. The lease is being renewed for a time “as constrained by borough code,” Earnest said.
The lease expired earlier this year and Delta Western has continued operating under the previous lease while the successor of lease is being negotiated.
When reached by phone, Delta Western president Amy Humphreys in Seattle said the company did not want to discuss the Lutak facility lease or the borough’s taking over fuel pumping operations or be quoted for this article.