Selling off the park is within the GPIP board’s mission: “Unlike other property owned by the
municipality, the former Alaska Pulp Corporation mill site was acquired not for governmental
purposes from the state or federal government, but for economic development and disposal.” (GPIP photo)
The Sitka Assembly on Tuesday (5-12-15) voted to approve a longterm lease at the city’s former pulp mill site with Pat Glaab of Alaska & Pacific Packing, or APP – despite a protest from the site’s neighbor, processor Silver Bay Seafoods.
Glaab wants to use about an acre at the Gary Paxton Industrial Park to design and build fish processing equipment. The 25-year lease includes 20,000 square feet of tidelands, for the construction of a floating pier to work on boats. Glaab has the option to buy the land outright once he meets certain benchmarks, including two full-time employees.
The proposal faced resistance from the park’s current major tenant, Silver Bay Seafoods. Glaab designed much of Silver Bay’s processing equipment when the plant was built 8 years ago.
But Silver Bay president Troy Denkinger asked the assembly to put lease restrictions on the site. Specifically, he asked for limits that would prevent APP from going beyond building equipment to actually processing fish — and competing with Silver Bay.
“APP could be building a fish processing facility, which would have devastating impacts on Silver Bay, Sitka Sound, SPC, and their fishermen,” Denkinger said. “The local fish pie is only so big, and is currently fully utilized. If a new fish plant were to be built in town, it would only take jobs and revenue from local processors and fishermen.”
Those concerns echoed some of the worries that existing processors voiced when Silver Bay first set up shop at the park.
Glaab noted that the industrial park board heard all the same arguments and recommended the assembly approve the lease.
“I petitioned the Gary Paxton board fourteen months ago for a piece of land to set up a business to do all the things I’ve been doing for the last thirty years, which is marine industry support,” Glaab said. “[That] includes many things: building fish processing equipment, but also building fish processing plants, as well as many other things.”
Assembly members seemed unconvinced by Silver Bay’s arguments. Deputy Mayor Matt Hunter pointed out that the lot is less than an acre and isn’t on the waterfront.
“I have a hard time believing that a 32,000 square foot lot is going to result in a fish processing plant that’s going to come close to rivalling Silver Bay Seafoods,” he said,
The lease was approved by a vote of 6 to 1. Tristan Guevin voted against the deal, as he did with previous sales at the Industrial Park. He argued that the land should remain in public hands, with long-term leases, but no sales.
You can find more coverage of the Sitka Assembly here.
