People walk the docks as the sun sets in downtown Juneau in August 2022. The City and Borough of Juneau is seeking comments from residents on how they want the city to spend its marine passenger fee money. (Clarise Larson/ Juneau Empire File)

People walk the docks as the sun sets in downtown Juneau in August 2022. The City and Borough of Juneau is seeking comments from residents on how they want the city to spend its marine passenger fee money. (Clarise Larson/ Juneau Empire File)

City seeks comments on how to spend projected $21.5M marine passenger fee funds

More than 25 projects are being recommended.

With just around two months until the kickoff of the 2023 cruise ship tourism season, the City and Borough of Juneau is seeking guidance from residents on how they’d like to see the city spend its marine passenger fee funds. Those funds are generated by cruise ship passengers and are project to total around $21.5 million.

That amount is based on the city’s estimation that 1.4 million cruise ship visitors will come to Juneau this upcoming cruise season, but as many as 1.6 million people could come to town if the ships are at capacity, according to CBJ Tourism Manager Alexandra Pierce.

Each of those more than 1 million passengers must pay a $5 marine passenger fee along with a $3 port development fee and a $5 state’s commercial passenger vessel excise tax which is how the marine passenger fee funds are generated each year.

The city has limitations on how it can spend the passenger fees after a 2019 settlement made between CBJ and Cruise Lines International Association Alaska, which brought a lawsuit asking for the fees to only be spent on things related to cruise vessels themselves and argued the city was being too permissive with its spending of the funds.

“We’re encumbered on how we can spend these funds — it doesn’t function like a normal tax,” Pierce said. “We have a mapped-out area where it can be spent, and as much as we love to use this money for paving roads outside of the area, it is a little bit of a different funding source than general funds.”

The city has shared a list of 27 projects that are recommended to receive the funds. Some of the most notable projects include putting around $10 million of the funding toward an expansion of the Seawalk, $1 million toward the proposed Capital Civic Center and $2 million for Marine Park improvements.

[City OKs steps toward proposed Capital Civic Center]

Pierce said the $2 million toward Marine Park will be used to fund the construction of the project which is still in the design phase, and the $1 million that is recommended to go toward the proposed Capital Civic Center — which if approved is could cost up to $75 million — is to help secure potential federal funding.

“We’re trying to secure federal funding by having a bit of local skin in the game,” she said. “It’s also representative of the cruise ship industry’s support of the project.”

The most expensive recommendation, $10 million toward an expansion of the Seawalk between the Franklin Dock and AJ Dock, would only partially cover the cost of the proposed project according to City Manager Rorie Watt, who estimates the project’s total ballpark cost to be around $20 million.

“Seawalk projects are not cheap,” Watt said. “ But we’re trying to get that Seawalk project going, it’s probably the biggest thing on the list.”

Pierce agreed and said the project is likely going to be expensive but noted the cost of the estimated total could fluctuate depending on a variety of factors that are currently still being figured out by the city, such as whether it will be raised or leveled with the current dock.

In recent years, passenger-proposed projects that were approved funded projects downtown like the construction of water-filling stations and pedestrian stanchions, along with projects at Don D. Statter Harbor such as improvements to facilities for whale watching boats.

Residents have until March. 17 to make comments that can be sent via mail to the City Manager’s Office, or to Pierce at alexandra.pierce@juneau.gov. After the comment period, Pierce said the recommendations will be presented to the Assembly Finance Committee for review and consideration before being considered during the upcoming budget cycle.

• Contact reporter Clarise Larson at clarise.larson@juneauempire.com or (651)-528-1807. Follow her on Twitter at @clariselarson.

More in News

The Norwegian Cruise Line’s Norwegian Encore docks in Juneau in October, 2022. (Clarise Larson / Juneau Empire File)
Ships in Port for the Week of May 28

Here’s what to expect this week.

(Michael Penn / Juneau Empire File)
Three people found dead on boat anchored off Sandy Beach

Drug use a possible factor in deaths of one man and two women during three-day span

The Mendenhall Glacier and surrounding area is seen under an overcast sky on May 12. A federal order published Friday bans mineral extraction activities such as mining in an expanded area of land surrounding the glacier for the next 20 years. (Ben Hohenstatt / Juneau Empire File)
Feds expand ban on mineral extraction near Mendenhall Glacier

20-year prohibition on mining, oil drilling applies to newly exposed land as ice continues retreat

(Michael Penn / Juneau Empire File)
Police calls for Thursday, June 1, 2023

This report contains information from law enforcement and public safety agencies.

Bulk food in Food Bank of Alaska’s Anchorage warehouse on April 21. (Photo by Claire Stremple/Alaska Beacon)
State roughly halves the number of Alaskans waiting on food aid, but more than 8,000 remain

By Claire Stremple, Alaska Beacon Mary Wood has been waiting for food… Continue reading

A white butterfly rests upon a fern Saturday at Prince of Wales Island. (Courtesy Photo / Marti Crutcher)
Wild Shots

Reader-submitted photos of Mother Nature in Southeast Alaska.

Photos by Lee House / Sitka Conservation Society
Aliyah Merculief focuses on her run while snowboarding at Snow Camp.
Resilient Peoples & Place: Bringing up a new generation of Indigenous snow shredders

“Yak’éi i yaada xwalgeiní” (“it is good to see your face”) reads… Continue reading

A polar bear feeds near a pile of whale bones north of Utqiaġvik. (Courtesy Photo /Ned Rozell)
Alaska Science Forum: Polar bears of the past survived warmth

In a recent paper, scientists wrote that a small population of polar… Continue reading

(Michael Penn / Juneau Empire File)
Police calls for Wednesday, May 31, 2023

This report contains information from law enforcement and public safety agencies.

Most Read