The Sitka Assembly has denied a Florida-based company the right to purchase water from Blue Lake.

Global Hydration LLC offered to pay the city $10,000 dollars for the right to purchase 2 billion gallons of untreated water, with the option to purchase even more if the company pays additional fees. When the assembly met on Tuesday (3-13-25), it considered a contract with the company.

The city has permits to export 9.5 billion gallons of water a year. Two other companies already own the rights to purchase some of that water, most notably Arctic Blue Waters, which had first right of refusal on close to 7 billion gallons. In January, (1-14-25), the assembly postponed a vote on Global Hydration’s contract, giving Artic Blue Waters the chance to take the next step in their contract by paying a minimum $100,000 fee and delivering a plan for how they’re going to retrieve the water from Blue Lake.

Gary Paxton Industrial Park Director Garry White said Arctic Blue Waters didn’t make the payment by the deadline and sent a letter on the day of the meeting asking the assembly to give them more time.

“That’s completely up to you guys, whatever you want to do. I will say that Arctic was here last month with with an engineering firm. We toured the park. We toured the the hydro dam. We toured the afterbay, which is the point of delivery for water,” White said. “They are currently working on putting a water loading plan together for us, which they’re required to do so by April 13.” 

While two companies currently have rights to buy some of Sitka’s water, neither has shipped a drop. White said more contracts could mean more chances for Sitka to make money off of its water. 

“We’re trying to be aggressive and open up multiple contracts to allow multiple companies to try to export our water,” White said. “Maybe somebody will do it.” 

Assembly member Kevin Mosher said if either company was able to deliver on its promises, it could be very lucrative for the city. Nevertheless, he was inclined to prioritize Arctic Blue Waters over the new company. He worried if the assembly approved the new contract, and both pursued their water rights, there could be logistical challenges.

“I have concerns about engaging with another company when we already have one, and what if something crazy happened, and they came up with all that money and wanted to do it, were able to do it?” Mosher said “I have concerns about the ability of both to get the equipment, or whatever system, to pull it out.”

Mayor Steven Eisenbeisz said he wasn’t a fan of companies speculating on Sitka’s water, buying it at a cheap price and holding onto it. He felt like Global Hydration hadn’t made enough of an effort to explain its goals to the assembly. 

“I haven’t had an opportunity to chat with them. I was hoping to do so tonight, to see, you know, give me a dog-and-pony show, give me an elevator speech on on what you’re going to do. But instead, there’s nothing,” Eisenbeisz said. “So at this point, I don’t feel like we have a partnership, and that’s what I’m really looking for here.”

Ultimately, the assembly unanimously rejected the purchase agreement from Global Hydration.