After robust public comment, the Haines Borough Assembly voted to reconfirm the preferred design for the rebuild of its freight dock on Tuesday. Assembly members who voted yes said the measure was necessary to meet grant deadlines and show that Haines was serious about the project.

 

Both the Planning Commission and the previous assembly voted in support of contractor Turnagain Marine Construction’s plan for the aging Lutak Dock in 2023. But community concerns about cost and environmental impacts, and legal problems with the contractor, have stalled the project.

The dock receives food and fuel for the remote town of Haines. The borough was awarded a $20 million grant in 2021 to update the infrastructure. The grant is overseen by the U.S. Department of Transportation – Maritime Administration, or MARAD. 

Turnagain, the contractor, purchased approximately $10 million of steel piping for the project, but MARAD deemed those supplies ineligible for grant reimbursement. Turnagain billed the municipality for the steel and Haines declined to pay – then Turnagin sued the borough. The lawsuit triggered mediation between the two parties. They’re still working out who is responsible for the $10 million.

Alekka Fullerton is Haines’ interim borough manager. She says the guaranteed maximum price of $25 million for dock construction is still in place. It’s one of the issues contested by the contractor.

Fullerton told the assembly that the process has been confusing for many.

“I think I heard in a previous assembly meeting that there were questions coming from Southeast Conference, or maybe some other entities in Juneau, really unclear about what the Haines Borough is doing … I have even heard some of those questions from our congressional delegations and some of the people who have, in fact, made sure we have money available for this.”

While the assembly reconfirmed the design with a four to two vote, a majority of the Jan. 14 public comment was against the design.

Haines resident Katie Palmer testified about possible financial ramifications. 

“Do not recommit the borough to a project we cannot afford,” she said. “Do not commit the citizens of Haines to pay for a project whose costs will exceed the grant monies. As Assembly member Gabe Thomas stated months ago, a bond is off the table.”

Kimberly Rosado was concerned about the cost of not fixing the dock.

“I want everybody to think what would happen if that dock failed right now, and the prices we would have to pay to ship it around,” she said. “We already pay so much for our groceries. To double or triple that, I don’t know who could afford to live here with that cost. So please get this back on track and fix our dock.”

While some residents testified that they hoped for a smaller design, one dock user said the space is necessary.

Haynes Tormey is a contractor who is intimately familiar with Lutak Dock.

“The existing footprint as it is right now at peak usage is barely enough,” he said. “There’s actually times when I’ve been forced to take freight that I’m not ready for so passing through freight can have a spot on the dock. So essentially, what needs to happen is the temporary guardrails that are in place need to be removed. So that way, the dock’s acreage could be expanded to its original footprint.”

Assembly member Kevin Forster wanted to delay the vote until mediation with Turnagain was complete. He and Assembly member Craig Loomis voted against the resolution.

Assembly member Cheryl Stickler said the borough should move forward with the project.

“We can’t afford the money. We can’t afford the time. And every day that we are stalled on this project, we are one day closer to dock failure,” Stickler said. “I just encourage us all to consider those things and to take steps to open up the conversations with Turnagain. This is our budget. This is our design. What can you do with this design within budget?” 

The borough provided its environmental assessment of the dock plan to MARAD at the end of last year. That document is still confidential.