The Haines Borough Assembly voted 4-2 to prohibit commercial events in the Mud Bay Rural Residential Zone starting in 2023—a vote that came eight months after more than 100 area residents signed a petition to prohibit such activities.

Aiming to compromise, the Planning Commission voted last month to recommend allowing commercial events as a conditional use in the zoning district. Petition organizers, including Katey Palmer, Sandy Barclay, Kristin Hathhorn and Patty Kermoian, wrote that petition signers supported a prohibition of commercial events, not a conditional use for such activities.

“Adding to code a CUP (conditional use permit) that the majority of residents do not support is not a compromise,” they wrote.

Concerned about noise, traffic and an influx of visitors, the petitioners have argued that commercial events are incompatible with Mud Bay zoning code, which says its intent is “for the people of the Mud Bay community to preserve their lifestyle, community scale, self-sufficiency, self-determination, and the basic rights of health, safety and welfare.”

Assembly members Paul Rogers and Cheryl Stickler both said although they didn’t personally agree with the petitioners’ efforts, they believed they owed it to the residents who followed the democratic process. Despite some opposition, petition organizers maintain there’s a clear majority of support.

“The citizens of this borough have a right to come to us with a petition and to ask us to take action based on that petition,” Rogers said. “I may not agree with that petition. But I’m not here to act based on whether I personally agree or disagree. I’m here to serve the citizens of the borough.”

Stickler said she hoped the petitioners know that a minority voice exists and that the area residents could come together despite the conflict.

Support for the petition has seen some detractors in the past several weeks, according to some Mud Bay residents. Some residents wrote to the assembly that they had withdrawn their names.

“I didn’t understand the issue enough at the time to have an opinion and now that I know more about it, I would like to be taken off the list,” Shalimar Galindo George said. 

Other Mud Bay residents have expressed opposition to the petition, saying they support inclusivity and think event venues help promote a sustainable economy. The petitioners say the majority of the zoning area supports a ban on commercial events and that zoning should be in keeping with democracy. 

The assembly had voted to postpone the decision two weeks ago after assembly member Tyler Huling made a motion to prohibit commercial events in the Mud Bay Rural Residential Zone. At Tuesday’s meeting, Huling referenced an email she wrote to the assembly and Mayor that indicated that although she didn’t agree with the petitioner’s goal of prohibiting commercial events, and might vote against it, she thought the assembly owed it to the petitioners to vote on their request. The letter, which was made public because she didn’t address it to the clerk, caused a backlash from petitioners. She said she had hoped to find a middle path, but that the petitioners seemed unwilling to compromise.

“I’m pretty dismayed at the level of vitriol, lack of compassion and general hostility I’ve received in the last 24 hours or so,” Huling said.

Huling echoed Stickler’s comments and said she thinks the minority voice is “larger than the petitioners are willing to admit.”

“I think the petitioners might be shocked at how many of your neighbors have privately reached out to express their lack of support for what it is that you may or may not achieve here this evening,” Huling said.

Assembly member Gabe Thomas, who voted against the ordinance, said the decision was a “struggle” but he cautioned the assembly about the economic impact of banning commercial events. He predicted it would cause a drop in sales tax revenue.

“We were sitting here arguing 30 minutes ago about $24,000. It starts adding up. We’re talking about wanting to amend the budget and then we’re talking about cutting out an economic driver that’s low impact,” he said.

Mud Bay code allows “cottage industry” as a use-by-right and “commercial enterprise” as a conditional use. Before Tuesday’s vote, it made no mention of “commercial events,” now defined as “including but not limited to weddings, reunions, retreats, performances and conferences.”

The petition came after years of complaints about Viking Cove, a vacation rental business owned by Bill Chetney at the end of Mud Bay Road that allows its guests to hold events such as weddings. The planning commission has held that Viking Cove can host events during the day as long as no more than 20 guests stay each night. (The business’ vacation rental permit doesn’t explicitly allow events, unlike the commercial enterprise permits for two other event venues in the zoning district.)

Mayor Douglas Olerud said he had hoped a compromise could be made and he disputed claims from some of the petitioners who claimed it wasn’t about shutting down Viking Cove.

“I’ve heard a number of people spoken to and said this is not about Viking Cove,” Olerud said. “That is one hundred percent false. Because we’re grandfathering in every other commercial venue in the area except Viking Cove. This is 100 percent a reaction to one business and one entrepreneur in the area.”

Borough clerk Alekka Fullerton told the CVN that every business which has a use or activity which was lawful prior to the amendment of the zoning ordinance but which no longer conforms to the new requirements will be grandfathered in.

Other events venues in the area include Chilkat Inlet Retreat and Echo Ranch Bible Camp. The assembly is scheduled to vote on June 14 whether to rezone Chilkat Inlet Retreat in the general use zone.

The assembly also added a clause to Mud Bay code that prohibits all uses in the zone not explicitly allowed.