Story last updated at 11/11/2009 - 10:45 am
On Oct. 26, the Docks and Harbors Board presented its updated proposal for the downtown docks to the Juneau Assembly. Included was a draft financing plan to pay for the project with no increase in industry fees and without cost to the Juneau public.
Is Docks and Harbors just "fixated" on big infrastructure? No. We've done dozens of smaller projects around the community in recent years. It is true that this is a big, important project. We estimate spending about $40 million for a project that will be in use for many decades. It's been in the works since 2000.
The location and layout of cruise ship docks was a major subject at the many town meetings leading to adoption of the Downtown Waterfront Plan, and our proposal is entirely in keeping with the Plan. There have been many public meetings at our level, and throughout the Navigation Study process. This marks the fourth time we've met with the Assembly in Committee of the Whole. So, there's been, and certainly will continue to be, a lot of oversight.
But, is this project needed? Isn't industry cutting back? True. Carriers will decrease visits next year, reducing total passengers to Juneau from just over 1,000,000 this year to about 850,000 in 2010. That's the first decline after 17 straight years of annual increases going back to 1992. The poor economy is doubtless contributing, and industry has concerns about the cost of doing business in Alaska. But two other carriers already have announced plans to enter our market in 2011, making up half the 2010 loss. Long-term we are confident that Alaska - and Juneau in particular - will remain a top destination.
Even if visitor numbers stabilized at or near projected 2010 levels we would need the proposed upgraded docks. Remember the Pacific Princess -the original "Love Boat?" It was 560 feet long, weighed 20,600 tons and carried 646 passengers. That's the class our current docks were designed around. Panamax vessels - the largest that can squeeze through the Panama Canal - are now the industry standard. They're typically 1,000 feet long, weigh more than 100,000 tons, and carry as many as 2,600 passengers. We can accommodate only one Panamax ship and one smaller vessel at the city's docks. Two Panamax berths are needed, and these big ships - and even their smaller 750-foot cousins - are well beyond the designed tonnage capacity of existing facilities.
Then there's security. Existing facilities were not designed for post-9/11 realities. Access next to and onto the vessels is poorly controlled. The "band-aid" of putting movable security barriers down the middle of the docks is of questionable utility, increases crowding and inhibits enjoyment of the waterfront. Any significant cruise ship related security event, anywhere in the world, could well result in complete Coast Guard ordered closure of our docks to the public. Our proposal addresses security with controlled access points, and by moving the ships away from the existing dock face.
Docks and Harbors also has carefully coordinated the dock proposal with uplands improvements that are already underway, including reconfiguration of the area near the Mount Roberts Tramway to improve bus traffic and tour staging areas. It also ties directly with our project to provide a new visitor center, new customs offices, improved facilities for locally owned tour providers, and much enhanced pedestrian spaces. Altogether, 45,000-plus square feet of new pedestrian space will be created, and all of the existing timber dock structure will be returned to public access as part of the seawalk called for in the Downtown Waterfront Plan.
Importantly, all these improvements will be in the existing tourism development area downtown. They will not add tourism impacts to other areas, and will not disrupt established retail business patterns. Moreover, they will reduce maintenance, security and management expenses. Fewer dock personnel will be required; robust, higher capacity moorings will be much less prone to damage; and controlled access points will lower security costs while improving vessel and passenger security.
What about costs? Now is actually a good time to be getting underway. Steel and concrete prices are lower than they've been in years. Large construction contractors are hungry for work. Existing dock reserves and city cruise ship fees can provide a core down payment for the project, and we are asking the Assembly to request $10,000,000 from the state to match local funds. We think Juneau stands a good chance of getting that much from the Legislature this year. We will still have to revenue bond for about half of the project, but existing local fees on the industry are quite sufficient to pay off the bond, and interest rates are now very favorable.
But, you may have heard that industry is not supportive. Why? We have taken to heart industry's concern that no additional fees be imposed to construct additional dock capacity. They've urged us to spend monies already collected, and the financing plan we have proposed to the Assembly does exactly that. No increases in fees on the industry are required, and the requested state capital grant will come from cruise ship taxes already collected during the 2009 season.
Regardless of how one feels about the voter-approved statewide head tax, so long as it remains in place, we think it is prudent for Juneau to take advantage of it to improve vital cruise ship infrastructure.
Jim Preston is chairman of the Juneau Docks and Harbors Board.

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