Borough discusses AIDEA support for Lutak Dock
Haines Borough department heads met Aug. 27 with representatives from the Alaska Industrial Development and Export Authority (AIDEA) to discuss Lutak Dock repair needs.
AIDEA is a state-funded entity with a stated mission of diversifying the Alaska economy and creating jobs “by facilitating the financing of industrial, manufacturing and energy facilities, infrastructure, commercial real estate and equipment within the state.” AIDEA is commonly associated with mining projects, although the organization has supported a range of projects over the years.
At Tuesday’s meeting, assembly members Zephyr Sincerny and Stephanie Scott expressed concern that a partnership with AIDEA to repair the Lutak Dock would require the community to commit to building an ore terminal at the facility. They said they were concerned that the public hasn’t been included in these discussions.
Borough manager Alekka Fullerton acknowledged that AIDEA is interested in subsidizing and supporting mining, and said the meeting was a preliminary discussion, one of many avenues the borough is pursuing to try to find funding for the repairs, which will cost at least $30 million.
Over the years, the borough has applied for several grants to renovate the dock, as well as submitting funding requests to the Alaska Legislature. So far nothing has come through for the dock face repair needs. Earlier this summer, the borough successfully negotiated a lease agreement with Alaska Marine Lines for construction of a new freight ramp at the dock.
The dock has been in need of repairs for some time. In 2014, PND Engineers, Inc. conducted a structural assessment of the facility, and determined the dock had “reached the end of its credible 60-year service life” and was operating “on borrowed time.”
Discussions with AIDEA regarding the Lutak Dock have been ongoing. In March, Mayor Jan Hill met with the organization during Southeast Conference to discuss support for the project.
Assembly declares regional economic disaster
The Haines Borough Assembly unanimously approved a resolution declaring a regional economic disaster due to COVID-19’s impacts on tourism and a poor summer fishing season.
The resolution cites a range of evidence including record unemployment filings. The June 2020 Haines Business Climate and COVID-19 Impacts Survey found that businesses had laid off 34% of their total workforce due to the COVID-19 and cancelled hiring an additional 141 seasonal workers.
Businesses are reporting reduced revenue this year. For the month of June, borough sales tax revenue was down 46% compared to June 2019.
The idea for the resolution came from Wrangell, interim manager and borough clerk Alekka Fullerton said, adding the hope is that communities throughout Southeast will approve similar resolutions, allowing the region to bring in additional relief funds from the state and federal governments.
Assembly greenlights further development of museum restructuring plan
The assembly approved the Haines Sheldon Museum board of trustees’ proposal to come up with a fleshed-out restructuring plan for the museum in time for a Nov. 10 meeting.
The board has been working with nonprofit consulting organization the Foraker Group over the past few months to come up with a proposal for the museum to move away from a quasi-governmental model to become “a wholly independent nonprofit with a strong borough partnership,” according to the Haines Sheldon Museum New Structure Concept Plan.
Many of the restructuring details still need to be worked out, including what to do with current museum employees who are members of Public Employees Local 71, the borough employees union.
During past discussion, the museum board had said current employees could remain unionized borough employees while all future hires would be employed by the nonprofit. At the meeting, Public Employees Local 71 business representative Trenton English said he didn’t think that would be logistically feasible.
Other separation details the board needs to hash out include a formal agreement with the borough ensuring the facility receives continuing financial support.