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HomeMy WebLinkAboutSand Point Prospects for Development 1983SAND POINT PROSPECTS FOR DEVELOPMENT DEPARTMENT OF COMMUNITY AND REGIONAL AFFAIRS DIVISION OF COMMUNITY PLANNING APRIL 1983 SAND POINT PROSPECTS FOR DEVELOPMENT DEPARTMENT OF COMMUNITY AND REGIONAL AFFAIRS DIVISION OF COMMUNITY PLANNING APRIL 1983 CREDITS /ACKNOWLEDGMENTS ALASKA DEPARTMENT OF COMMUNITY AND REGIONAL AFFAIRS Mark Lewis, Commissioner Jeff Snith, Director, Municipal and Regional Assistance Division Richard Spitler, Planning Supervisor MRAD, Juneau Office Project Staff Michael Cushing, Research Analyst Secretarial Support Gary Hind Jon Cecil Noman Sarabia CITY OF SAND POINT Jim Moritz, Mayor John Sevy, City Manager Ken Selby, Planning Director This publication was prepared by the Department of Community and Regional Affairs, with assistance from the Department of Commerce and Economic Development, as a part of the continuing effort to assess the constraints and opportunities for development of communities potentially effected by an expanded fisheries industry associated with the 1976 passage of the 200-mile Fisheries Management Zone. We would like particularly to express our appreciation for the assistance provided by Mr. Ken Selby, Sand Point's Planning Director, and at the same time, to credit our extensive use of the 1981 Sand Point Comprehensive Plan which Mr. Selby produced. We would also like to thank the people of Sand Point and representatives of the municipal government, Native Corporations, shipping and transportation companies and fish processing industry for their interviews and review of draft materials. iii I, OVERVIEW TABLE OF CONTENTS . . . . . . . II, BACKGROUND . . .... . A. Physical Setting 1. 2 3 4. 5. Physical Setting: Implications for Development Location and Locale . Geology . . 2... Meteorology . . Biology . .... B. Social Setting 1. 2. 3. Social Setting: Implications for Population . . . . Social Characteristics III. Development Potential. . . A. Business and Labor Climate 1. Economy a. General. . . b. Employment/Unemp] oyment co Fishing... d. Seafood Processing e. Other sources of Economic Growth 2. Native Corporations 3. Community Attitude Towards Growth a. Regional Corporation b. Village Corporations . . . . Devel opment . 1 o © CoC Oo ™N 14 15 7 7 19 21 30 33 37 38 40 vi 4. General Cost of Doing Business a. Building and Rental. . . . «. . b. Transportation costs . . . . ... c. TaxeS 2. 6 1 ew ew ew we ee d. Insurance . . 2. 2. «© © 2 we ee e. Utility Rates. . . .... 5. Services Available for Development . . . 6. Labor Relations . . 2. . 2 «© «© « « « 7. Business and Labor Climate: Implications for Development B. Land Status and Use . . 2. 2. we ee ee Land: Implications for Development . . . . . C. Port and Harbor Facilities J. Existing Facilities . . . . . . . « . 2. Proposed Harbor Facilities. . . . 3. Port and Harbor: Implications for Development D. Community Fleet. . 2. . 2. 2. «© © © 2 © Community Fleet: Implications for Development E. General Infrastructure 1. Water Resources and Use. . . . . « «© « Sewer System . . 2. 2. «© «© © © © 6 - Power. 2. 2. 2 2 6 we we ew ew ee lw . Housing . . 2. 1. 1 ew we ee ee . Hotel/Motel . 2. 2. 1 ew we ee - Transportation 2 3 4 5. Communications. . . . 2. «© «© «© «© « 6 7 8 . Banking . 2. 2. 1 ew ww we ee 4] 42 43 44 44 44 45 46 49 54 55 59 60 62 64 64 66 66 67 68 68 69 70 9. Medical Services . . . «. « «. 10. Fire Protection . . . . .... 11. Police 2. 1. 1. 7 ew ee eee 12. Schools. . 2. 2 we we ew ew ee 13. Other Services 14. Recreation. . 2. . 2. «© ss 15. General Infrastructure: Implications for F, Municipal Capacity 1. General Description of Government. . 2. Planning Capability . ...... 3. Municipal Capacity: Implications for Development IV. Conclusions: Determinants of Future Growth . . Bibliography . . . . 2. 2. 2 2 2 we ee LIST OF FIGURES ONE: Sand Point Population. (1980-82 City and U.S. Census) TWO: Sand Point Population (1920-1980 & Forecasts) THREE: Composition of Sand Point Employment . . . FOUR: Fisheries: Annual Catch and Production Figures FIVE: Land Ownership. . . . 2. «© «© © «© «© « SIX: Existing Land Use . . . 2... ee ee SEVEN: Proposed Land Use . . . . «© «© 2 « EIGHT: Existing Port and Harbor Facilities . . . NINE: Details of Existing and Proposed Harbor moorage TEN: Proposed South Breakwater Harbor Addition . . Development . 70 70 71 7 72 72 72 73 76 78 81 83 10 13 20 23 48 51 53 56 57 61 vii ELEVEN: Boat Harbor Berth Occupancy . TWELVE: Length of Vessels in Harbor . THIRTEEN: City General Finances . . viii 63 63 74 ——— OVERVIEW ———— Sand Point is a community with a knack for growth. Since 1950, the community has experienced an eight-fold increase in population. Sand Point residents are almost undivided in their receptiveness to major fisheries developments which would promote the community's continued overall growth and economy. They are somewhat more divided in their views concerning the rate and character of that development. The community of Sand Point began in 1887 as a cod station serving the rich cod grounds of the Shumagin Island Group and waters off the coast of Russia. Although other fisheries, particularly salmon, have since replaced the cod fishery, there are still people in town who remember when cod was king. With this heritage, it is not surprising that Sand Point in recent years has taken a lead in aspiring to a larger role in the anticipated expansion of the domestic bottomfish industry. A key factor motivating entry into bottom fishing is the near saturation of fishing opportunities in the managed traditional fisheries for salmon, crab, shrimp and halibut. The townspeople are enthusiastic about Prospects of a new fishery which could provide for an expanding economy and jobs for the next generation of fishermen. At the time of passage of national legislation which created the 200-mile fisheries management zone, the potential for growth of an American bottomfish industry seemed almost boundless. It was presumed that within as little as ten years domestic interests would control bottomfish from the sea to the market place. The initially bright prospects for an American bottomfish industry have dimmed through actual experience. Current indicators show a more gradual American entry into this fishery, with the initial focus on joint ventures and offshore processing and cautious experimentation with onshore processing operations. Consequently, there are growing concerns as to whether the prospects for bottomfish development in Sand Point are equal to the original aspirations of its citizens. The community has begun a reassessment of its relationship to regional bottomfish development and is now considering a more realistic alternative role of a support and services base. And this role would come naturally; Sand Point began its existence as a service base. q Aer re ore tae alah Sand Point is located on the northwest coast of Popof Island in the Shumagin Island Group situated near the southern coast of the Alaska Peninsula. The town grew slowly after its establishment as a fishing and supply post, a small number of families moving into the village to maintain services for the cod fishermen and to care for a small fox fur industry. Gold was discovered at the turn of the century on nearby Unga Island and small placer and hard rock operations continued up until the beginning of the First World War. The population was placed at 69 in 1930, the year a salmon cannery was set up three miles from town on the spit across Humbolt Harbor. The community maintained a slow and irregular pace of growth up until 1946, when the Aleutian Cold Storage Company established a halibut plant in town. In 1955, Wakefield Fisheries leased a part of the Aleutian Cold Storage facility and began processing King crab. Wakefield bought out Aleutian Cold Storage two years later, and set up a year-round King crab processing plant. The town was off and running. From 1957 into the early 1960's, the King crab industry flourished and the economy of Sand Point boomed. In 1967, however, there was a drastic decline in the King crab catch as the result of over-harvesting. Subsequently, the State created a quota system which cut Production in Sand Point almost in half. Wakefield, facing a reduction in operations, diversified into Tanner crab in 1969 and began processing shrimp in 1973. The community continued its rapid population growth. The shrimp population, however, declined through over-harvesting, and in 1979 a total closure was placed on the shrimp fishery in the Shumagin area. In response to these changes, Salmon became increasingly the target species. Wakefield Fisheries sold its interests in Sand Point to AmFac, which in turn sold out to Pelican Cold Storage Company in 1980, which gave the plant back its old name, Aleutian Cold Storage. Two other Seafood processors, Peter Pan and Ocean Beauty (Sealaska), have fleet service operations on land near the airport but do not presently process in Sand Point. A recent development in Sand Point was interest in a renewed cod fishery. A Norwegian firm approached the community in 1980 with plans to locate a salted cod facility in or near the town, and to employ a number of local fishermen in the new fishery. The firm's goal was to establish an on-shore processing, storage and transshipment facility to provide a reliable quantity of salted cod for established world market, ultimately 10,000 tons per year. The Norwegians employed large boats out of the Pacific Northwest to trawl the Bering Sea for cod, and formed an arrangement with a number of Sand Point small boat fishermen to fish in and around the Shumagin Island Group using longline techniques. OVERVIEW This local venture was not successful and experimentation with a salt cod industry has shifted west to Akutan and Dutch Harbor. Nevertheless, a number of Sand Point fishermen have indicated that they will continue their efforts to make this fishery work. If salt cod ventures elsewhere in the region prove to be profitable, Sand Point could follow suit. Today, the local citizenry and municipal government of Sand Point are firmly committed to seeing the community continue to prosper and grow. Sand Point has historically been a company town. The community perceives itself as a "developing" community in one sense in that it is changing from a company town into a town with local determination and responsibility. Recent years have seen the City assuming increased powers over community utilities, land planning and generally more say about the direction in which the local economy is to develop. Sand Point is a consciously developing community as reflected in a central comprehensive planning goal of diversifying and expanding the community's economic base. The key to this expansion is an ambitious harbor and marine related facilities development program. It is intended that the facilities made available by this project would attract the services and supply trade of the Bering Sea and North Pacific transient fleets, and possibly another Major on-shore processing facility as well. A central element of the planned harbor improvements was to be the construction of a new boat harbor which could accommodate approximately 115 new vessels, at least twenty in the 120 foot class. That major project has been put on "hold" due to unresolved conflicts between siting requirements, available sites and general concerns regarding the defined uses of the new harbor. In the place of a new boat harbor, planning concepts have been refocused on developing marine related facilities into a comprehensive marine service center. Improvements have been realized and are under construction, including additional slip space in the existing harbor; a 150-ton boat haul out, with potential for an upland repair facility; a bulk fuel storage facility; a new city dock; and an uplands commmercial/industrial zone for marine services. There are numerous community development projects recently completed or in the works which reflect the community's aspirations for growth, and talents for acquiring the funding to provide for that growth. These include improvements to the existing city water reservoir, a new sewer treatment facility, regrading and resurfacing the city road system, a new school facility, a new medical clinic, a large housing subdivision and up-grading of the city airport to accommodate jet traffic. Perhaps even more indicative of the city's programmed approach to development is a recent commitment to seek funding sources that could assist the community in improving its recreational and commercial facilities, thereby increasing the city's attractiveness as a regional service/support community. A key determinant of growth in Sand Point is adequate housing. Presently, there is no surplus housing in the community and both rental and owned units are in great demand. The Sand Point Native Village Corporation, Shumagin Corporation, intends to fill a large part of that need through the recent subdivision of over 250 acres to the north of town into 225 residential parcels. The subdivision surrounds the 25-acre site of a new community school that will open in September, 1983. The working relationship between the City of Sand Point and the Shumagin Corporation has been very cordial in the past and it is expected to continue to be a good relationship into the future. One important example of cooperation is the shared City/Corporation development of Lat and stone borrow sites, a critical resource for the community's growth. Other factors affecting Sand Point's growth relate to the general infrastructure. The water and sewer facilities are both operating at or beyond design capacity. To improve the management of future development, the City is considering the acquisition of company-owned components of these systems as well as purchase of easements across private lands for existing and expected lines. The City has received grant monies to conduct a water resources study in relationship to future development in the vicinity of the airport. The community is also in need of improved streets, walkways and lighting systems and recreational areas. These problems are addressed in the 1982 City Comprehensive Plan. . All of the above are aspects of a central policy in the community's scheme for economic development: to be prepared to attract and accommodate regional growth in diversified fisheries industries. Sand Point plans to be prepared both in terms of established community infrastructure and public services, as well as in the development potential of the community harbor areas. The scope of the development which the city plans to undertake is large and will require strong local planning elements. Plans must be realistically assessed in their relation to actual developments in regional fisheries industries. Costs and benefits to the community, as well as the region, must be carefully weighed in the context of complex markets and only partially understood resources. To these ends, the community is presently updating the Capital Improvements Programs in joining the harbor development and other general community development projects. From the perspective of bottomfish and general fisheries development, establishment of Sand Point as a growing service and support community would be an important regional achievement. As the regional bottomfish industry develops, there will be an increasing need for service facilities, including boat repair, gear conversion, warehousing and sales and recreational accommodations. Due to the year-round nature of bottomfishing, the need to have such services in Alaskan ports is imperative. OVERVIEW While it is not likely that there will be a major on-shore bottomfish processing industry in Sand Point, the town has good potential to become a successful site for a regional service and support facility. Key determinants of this development will be the pattern of the "Anericanization" of the bottomfish industry in the North Pacific and Bering Sea regions; the growing understanding of the nature of available fisheries resources; the aggressiveness of other Aleutian communities in their development of similar support services; and, the maintenance of local involvement and strong planning leadership in the Sand Point community. BERING SEA —— BACKGROUND —— A. PHYSICAL SETTING 1. Location and Locale Sand Point is located on the northwest coast of Popof Island in the Shumagin Island Group which is situated near the southern coast of the Alaska Peninsula. The Shumagin Group consists of fifteen sizable islands and many smaller islets and exposed rocks. Many of the islands are ruggedly mountainous while others exhibit a rolling tundra topography. The highest peak in the Group is on Unga Island and rises to 1,630 feet above sea level. Popof Island is about nine miles in length and seven miles in width. The area on Popof where the town of Sand Point is located is mostly steeply rolling in character except for a rugged rocky section between the City and the airport to the south where elevations of about 400 feet are encountered. The island becomes More mountainous to the east, ultimately reaching elevations of over 1,500 feet before falling sharply to the sea. The city limits of Sand Point take in the entire western portion of Popof Island; however, most of the development is located on a small peninsular bluff bounded on the west by Popof Strait and on the east by Humboldt Bay. Other development, mostly of an industrial nature, occurs on a broad spit, three and one-half miles to the southwest, adjacent to the town airport. There is also a small group of residences near Mud Bay, just north of town, and a large subdivision is being developed northeast of town. Sand Point's remote location, accessible only by sea or air, has played a major role in the town's development. The community is located 571 air miles southeast of Anchorage; Kodiak, the nearest large population center, is 350 miles distant; Cold Bay, the transportation hub of the Aleutian region, lies some 87 miles to the west and numerous smaller communities lie within a hundred mile radius of Sand Point. These include Squaw Harbor (8 air miles), Port Moller (57), Belkofski (65) and King Cove (75). 2. Geology The Pacific coast of the lower Alaska Peninsula is characterized by high rugged cliffs that rise abruptly from the sea with many indentations. The geologic structure of the Shumagin Islands is one of strongly deformed strata from the continental shelf squeezed between faults which have caused the rock units to move up and away from the Alaska Peninsula. Popof Island, much like the rest of the Alaska Peninsula, is volcanic in origin; however,it lacks the jagged mountain peaks and occasional smoking volcanos which characterize the mainland. Its shoreline is rocky, precipitous and irregular. Most of the island is underlain by recent dark and light lava flows which are cut through by lighter intrusive bodies. Soils on the island consist of thick deposits of stratified silty sands and cinders overlying volcanic rocks and bedrock. Peat deposits occupy depressions along the drainages at the lower elevations of the islands and wind and wave erosion of these soils are very prominent on shorelines and hilltops. Most of the land in the developed portion of town can be classified as buildable, although the topography and soil conditions in some areas may require alterations. Topographical slopes around the developed area of the City vary from 9% to over 15%. Located in an active seismic zone, earthquakes able to cause major structural damage are probable, and minor earthquakes are not uncommon in Sand Point. Of special interest is the petrified forest on the far (eastern) side of Popof Island visible during low tides. 3. Meteorology Weather conditions present a major constraint to development in the Aleutians and Sand Point is no exception. The frequent cyclonic weather patterns crossing the North Pacific bring recurrent major storms. Winds exceeding 70 miles per hour have been recorded and wind speeds average about 13 m.p.h. year round. Sand Point experiences measurable precipitation on an average of three out of five days throughout the year. Snowfall averages 40.5 inches annually, which is considered light for Alaska. Rainfall averages about 60 inches per year with the heaviest rains occuring from August through October and lighter periods of rain during the spring. Because of the proximity to an extensive open ocean area, the extremes of normal temperature for the year are only about 23 degrees (28°f to 51°f) and below zero temperatures are rare. The modest temperature differential makes it difficult to define conventional seasonal periods in Sand Point. High winds, icing and extended foggy periods introduce a large degree of uncertainty in transportation schedules and add greatly to the dangers of fishing throughout the region. The frequency of harsh winter storms with the BACKGROUND: PHYSICAL SETTING accompanying problems of superstructure icing are a particularly serious consideration for the fisherman who would venture into these winter seas for the purpose of bottomfishing during the "off-season". 4. Biology Popof Island is essentially treeless except for a small grove and scattering of Sitka Spruce near the cannery, harbor, and several residences. These were imported to the area many years ago. The majority of the vegetation cover is heath or dry tundra, composed of crowberry, labrador tea, kinnikinnick, alpine bearberry, sedges, mosses, lichens and grasses. The beach fringes also contain beach rye grass, beach arnica shrubs, alders and willows. Natural wildlife on the island includes ptarmigan, fox, ermine, mink and ground squirrels. In the early part of the century bison were introduced onto the island as a meat source and remain to this day as a protected species. Marine mammels inhabiting the waters around Popof Island include harbor seals, sea otter and several species of whale. Bird species include several types of raptor (including eagles) and a wide variety of waterfowl. Local fisheries include salmon (chinook, coho, pink, sockeye and chum), Dolly Varden trout; king, dungeness and tanner crab; shrimp; and several species of bottomfish, the most abundant in this area being pollock and grey cod, also known as true cod. Humboldt Creek, which passes by the town of Sand Point, hosts runs of coho salmon and Dolly Varden trout. 5. Physical Setting: Implications for Development Sand Point's remote location and discouraging climate are considerable constraints to development. Improvement of the community airport to accommodate jet traffic, and extension of more frequent Alaska ferry service into Sand Point, would do much to alleviate the problems of inaccessibilty. While Sand Point is not located in immediate proximity to the newly developing fisheries of the Bering Sea, its harbor could afford a welcome stopover for boats traveling between the Bering Sea and ports in the Gulf of Alaska or the Pacific Northwest. B. SOCIAL SETTING 1. Population From its beginning as a cod fishing center in the 1880's until the early 1950s, Sand Point grew very slowly. However, since the mid-fifties, the community has experienced rapid population growth, based primarily on expanding employment opportunities in fishing and the fish processing industry and the condensation of surrounding village populations into Sand Point. The U.S. Census of 1980 (April, 1980) reported a total of 625 persons residing in Sand Point. A local census performed in June, 1980, indicated that there were 794 persons residing in Sand Point. Figure One presents a side-by-side listing of the components of these two census counts which indicates that the two are in reasonable agreement once seasonal variations in population are taken’ into account. The most recent municipal census, taken in 1982 is also presented in Figure One. Figure One Sand Point Population, 1980, 1982 U.S. Census Local Census Local Census April, 1980 June, 1980 July, 1982 Residents-in households 577 587 584 Number of Households 186 171 177 Persons/Household 3.1 3.4 3.3 Persons-in-transit none 2 - (hotel) Persons-in-Group-quarters 48 96 53 Persons residing-on-boats none 109 158 in-harbor Number of boats in harbor none 44 61 used for residency Total Persons Counted 625 794 795 Sources: U.S. Bureau of the Census, 1981; City of Sand Point, June,1980; July,1982. As may be seen, the transient population employed in processing doubled from April to June, 1980, and persons residing on the fishing boats in the harbor were virtually unaccounted for in the U.S. Census. The 10 BACKGROUND: SOCIAL SETTING residents-on-board, and the fishing boats they live on, would have been present in Sand Point in much smaller numbers in April than in June at the time of the local census. Comparing the local population counts for 1980 and 1982, we see that the resident population remained virtually unchanged, while the number of people in residence on boats in the harbor increased by about the same number as the reduction of persons living in group quarters. The 1981 (summer) local census counted 846 individuals, almost totally attributable to an increase in transient workers on the fishing boats and in the processing plant. Resident populations and transient populations tend to remain separated in their respective lifestyles and social activity, and tend generally to place different sorts of demands on a community's housing, services and infrastructure. While this differentiation is simplistic, it does provide information that is meaningful within the context of municipal planning, particularly with regard to labor force characteristics of speculated development. Figure Two presents the community's growth rate since 1920 (first U.S. Census in Sand Point) and includes several projections of population growth for the near future. There are several notable features illustrated by the graph: ° There is a dramatic difference between winter and summer populations as demonstrated by the 1980 local and U.S. Census counts. ° The community is now at a threshhold or plateau of growth which, it is assumed, will continue for a few years as constraints of housing, infrastructure and general development are overcome. Sand Point's population growth should then accelerate again to previous high growth rates. ° The range of low and high population forecasts reflects varying base assumptions associated with different possible development scenerios, as well as the community's developing capacity to accomodate growth. Given the volatile nature of growth and demise in the fisheries industry, it is difficult to predicate future population trends on that economic basis. The higher rate of increase represents a full-scale fisheries development focused primarily on a domestic bottomfish industry, and assumes the introduction of new processing facilities into the community. The low projection is basically a "no-development" projection which assumes that employment opportunities are at near saturation levels and that increases to population would occur primarily as a result of the gradual inmigration of fishermen and their families 11 who choose Sand Point as a preferred place to live but do not necessarily carry out their livelihood in the immediate vicinity. A growth rate between these two extremes would occur if Sand Point were to successfully develop its role as a support base for expanding regional fisheries, offering auxilliary services to transient and off-season fishing boats and their crews. Of the three projections, the "high" projection is, by far, the least probable, requiring a dramatic turnaround in’ regional fisheries prospects and a dramatic expansion of Sand Point's harbor facilities. Several recent studies have placed the population in Sand Point near or above 4,000 by the year 2000, well off the scale on Figure Two. These numbers are generally "straight line" projections of recent growth rates, or are based on very optomistic estimates of affects of domestic utilization of the 200-mile limit. The "low" projection is somewhat more probable, contingent upon the maintenance of the status quo in shore-based fisheries economics for the South Peninsula region. An intermediate growth rate will most probably occur, based of somewhat erratic regional development in combination with a very aggressive local development effort. Sand Point has exhibited a great propensity for growth. That the community further desires to grow is demonstrated by pursuit of an ambitious boat harbor expansion, planned large housing subdivision, and a comprehensive plan for improving and expanding the community's infrastructural capacity. As~-previously stated, the probability of continued rapid expansion resulting from a virtually "Americanized" (and onshore) bottomfish industry is not likely. Therefore, the City of Sand Point ne preparing to diversify its economy around service del Twery to the marine industry. In this scenerio, the "high" estimate of projected population is unlikely to occur. Given the community's recent history of growth, it is equally unlikely that Sand Point could expect a prolonged period of strongly retarded growth or stagnation. The sources of population growth are changing; while previous growth may be largely attributed to the consolidation of surrounding communities into Sand Point, future growth will be dependent upon resident births and inmigration from outside the area. Such growth is now largely constrained by a lack of housing. In the background of this discussion is the tentative development of mineral resources, primarily gold, on nearby Unga Island with the resultant possibility of a new population center, competition for the labor pool, and perhaps a shift in regional development emphasis. However, Unga Island development plans have cooled since a point of high excitement in 1980-81. 12 BACKGROUND: SOCIAL SETTING FIGURE TWO SAND POINT POPULATION 1000 1980 LOCAL CENSUS 800 700 600 1980 US CENSUS POPULATION 400 200 100 1920 1930 1940 1950 1960 1970 1980 1990 YEAR 2000 2010 Sources: U.S. Bureau of Census; Bomhoff Associates, 1977; City of Sand Point, 1980, 81, 82. 13 The present composition of Sand Point's population exhibits many of the characteristics found in Alaskan communities that are unusual when compared to communities elsewhere in the United States. Males out-number females 54% to 46% whereas, by national norms, females out-number males 51% to 49%. Also, the younger age groups are more than proportionately represented. A notable trend, indicated by a 1980 locally produced census, is that a large majority of the young people present in Sand Point tend to remain there, following in the footsteps of their parents in seeking to either fish or work in fisheries related businesses. It is largely for this reason that the townspeople are hoping to broaden the fisheries industry base; they want the next generation to at least have the choice of staying in the community. The 1970 Census indicated a predominantly Native population with 72% of all residents declaring Native origin. In 1972, for the purposes of the Native Claims Settlement Act Registration, nearly 87% of the population declared Native origin. As of the 1980 census the percentage of Native residents had decreased to 57 % of the total population. While the Native population has increased by 40% over the last ten years, the non-Native population has increased by 162%. Migrational trends into Sand Point are dominated by two distinct phenomenon. The first is a migration away from the smaller communities in the area towards Sand Point due to the magnetic effect of centralized services and employment opportunities. During the last ten years, the nearby communities of Unga, Squaw Harbor and Sanak have virtually disappeared as a result of this movement, while the population of Native origin in Sand Point has increased by over 40%. The second phenomenon is a migration of the Alaskan fisheries population westward along the Aleutian chain in pursuit of less exploited fishing grounds. Recent surveys in the community indicate an increasing influx of people moving from the Gulf of Alaska area to Sand Point as a preferred place to live. Future increases in Sand Point's population are likely to include much higher proportions of non-natives, coming from other parts of Alaska and "outside". Sand Point's rapid increase in population, 73% in ten years, differs markedly from the population trend for the Aleutian Islands as a whole for which there has been a net decrease of several hundred people over the last decade. City administrators have indicated that inmigration numbers have become largely a function of the availability of housing. 2. Social Characteristics The cultural picture in Sand Point is dominated by the nature of being a relatively affluent fishing town, increasingly influenced by the immigration of non-Native inhabitants. Consequently, many traditionally manifested characteristics of Aleutian village life have become submerged within the appearances of a fairly typical small and isolated 14 BACKGROUND: SOCIAL SETTING American community. Life in Sand Point is carried out overwhelmingly in English, although some Aleut and Russian language is maintained for some specialized traditional purposes. There are no bath houses, few people dry or smoke fish, and the Russian Orthodox Church does not have a strong material presence in the community. However, while not actively practicing the Orthodox faith, a large number of Sand Point Aleuts maintain the Orthodox Church as a fundemental element of their cultural heritage. Ties to the Native culture remain strong at the social and personal levels. There are two active churches in town of Protestant denomination. Average incomes were noted to be extremely high relative to average incomes in Alaska, however incomes varied with the success of the fishing season. A 1980 local survey indicated an average household income of approximately $56,000 and it was not considered unusual for high school aged persons to make over $10,000 during a good fishing season. The town is reasonably well maintained by its residents, although many yards display a mixed collection of storage and discard characteristic of a practical fishing town. Crime rates are not considered to be seriously high in Sand Point but it was reportedly a relief to the community when a State Trooper was finally based there several years ago. A 2-cell jail facility was included in the new City building and the City hired a Public Safety Officer recently to supplement the presence of the State Trooper. It is notable that the residents perceive the primary source of criminal behavior to be the transients that move through town with the seasonal fisheries activities. One attractive aspect of a bottomfish industry is its year-round employment base which could encourage the existence of permanent resident employees. On the other hand, many of the present crimes are alcohol related, and should the community choose to develop its role primarily as a "support services" community for regional fisheries, then the community will need to consider preparations for the recreational activities of shore-leave seamen. 3. Social Setting: Implications for Development A combination of causes have brought the population of Sand Point to a plateau point. One of the major sources of population increase, the extinction of nearby communities and consolidation of populations in Sand Point, is an essentially completed process. Several of the community's basic services are operating at saturation levels and housing is unavailable. Finally, the constraints of limited entry fishing regulations create a barrier to increased local participation in the community's primary economic base. 15 Nevertheless, the community and its leadership are determined to tackle these hinderances head-on and get on with a new period of continued substantial growth. The social atmosphere in Sand Point is conducive to, and in fact encourages, a further growth in the community's commercial and industrial development. While present residents are wary of uncontrolled growth, and in particular, a rapid increase in the transient working population, they would generally welcome a larger permanent resident population base. The community appears to be experiencing no major difficulties in its transition from a primarily Native community to a mixed population of Native and _ non-Native residents, old-timers and newcomers, “fishermen” and "outsiders". However, small frictions between the old and the new populations are a pervasive, if not critical, aspect of the changing social fabric. OTS za jel UAH ‘yuh — Gees [ICUS ON, ey Vi Vth t NM) RAR ta ny ionamin Ry x v a Ce TMT Taam Hf 16 —__ DEVELOPMENT POTENTIAL A. BUSINESS AND LABOR CLIMATE 1. Economy a. General Early industries in Sand Point included fishing and the raising of silver and blue foxes. The fox industry continued until the 1930s and the first families that settled in Sand Point worked mainly on the fox farms and repaired dories for the cod fishermen. Gold was discovered in the area in 1904 and during the next few years, 40 or 50 men worked the beaches; however, no great strike was made and the seekers of gold drifted away. During the 1930s, Alaska Pacific Salmon Co. set up a salmon cannery on the spit across Humboldt Harbor, three miles from the town center. This facility was sold to New England Fisheries about 1960, was damaged by fire in 1980, and recently was bought by Ocean Beauty, a wholly-owned subsidiary of Sealaska Native Regional Corporation. This facility primarily operates as a service center for Ocean Beauty's local fleet. Aleutian Cold Storage set up a halibut plant in the town of Sand Point in 1946. In 1955, Wakefield fisheries leased part of the plant and began processing King crab. Wakefield bought out Aleutian Cold Storage in 1957 and converted the operation to a year-round King crab processing plant. From 1957 into the early 1960s the King crab industry flourished and the economy boomed, many more jobs were created and the population rose rapidly. In 1967, however, there was a drastic decline in the King crab catch as a result of over-harvesting. Realizing that the King crab industry was in jeopardy, the State established quotas for future catches; quotas which cut the King crab industry in Sand Point almost in half. Wakefield fisheries, to compensate for the reduction in its King crab Operations, diversified into Tanner crab and shrimp processing. A pilot Tanner crab operation was commenced in 1969 and Tanner crab now accounts for approximately one-fourth of the plant's total volume. Similarly, the plant began processing shrimp in 1973. Shrimp processing, however, was not to share the success of the Tanner crab operation. After six years of shrimp production, the species suffered its own dramatic decline, much as the King crab had earlier. Again, the State stepped in, this time with a complete closure on shrimp harvesting in the South Peninsula and Chignik area; a closure that is still in effect. 7 Although the shrimp fishery may eventually be re-opened, the Alaska Department of Fish and Game indicates that the closure is likely to continue for several years. The required duration of the closure is not yet known and the regulations, if any, that will be imposed upon the re-opened fishery have not yet been determined. The shrimp fishery is therefore a largely indeterminant factor in the future of the Sand Point fishing economy. There are indications that predation on the depleted shrimp stock by pollack and cod are hindering the return of the shrimp stock. An expanded bottomfishery targeted on polluck and cod could possibly provide an indirect benefit of alleviating some of the environmental pressure on the shrimp. The closing of the shrimp fishery in the south peninsula area effected about 15 Sand Point boats and 45 fishermen, most of whom moved into the salmon fishery. In 1978, Wakefield fisheries sold their interest in Sand Point to Amfac Corporation (operating the plant under the name of Pacific Pearl) who in turn sold the plant in 1980 to Pelican Cold Storage Company which operates the plant under its old name: Aleutian Cold Storage Company. A third processing interest in Sand Point is Peter Pan Seafoods, a Japanese owned company. Located next to the Ocean Beauty facilities near the airport, Peter Pan facilities serve primarily as a support base for the company fleet. Future plans call for expanded services including a 10,000 square foot storage building for fishing gear, and smal] machine shop and repair facility. Today, as it has in the past, the economy of Sand Point remains almost entirely dependent on the fishing and fish processing industry. Aleutian Cold Storage Company is the major year-round employer in the community, with Ocean Beauty (Sealaska) being the only’ other significant source of employment. A 1978 harbor expansion and recent port developments allow for a maximum harbor utilization of approximately 150 boats. Boat harbor services are presently being expanded by the installation of a public dock capable of mooring vessels up to 400 feet long and a marine vessel hoist with a capacity to lift vessels up to 150 tons for repairs. Both of these improvements should encourage the starting of secondary commercial and industrial businesses to service the mechanical and operational needs of the marine industry. Other planned improvements which will directly affect the community's capacity to meet the needs of an expanded economy include rebuilding of the city water system to exceed the present capacity by 50%; rebuilding and expansion of the city sewer system; development of a 225 unit housing subdivision; and construction of a bulk fuel storage facility. A very significant proposed development is the expansion of the existing boat harbor capacity, and possible addition of an entirely new harbor. However, the prospects for such an expansion program occuring in the near future have taken a recent downturn. 18 DEVELOPMENT POTENTIAL: BUSINESS AND LABOR CLIMATE The City has been involved in a process of determining the appropriate scale and location of a new harbor which could be constructed by the Army Corps of Engineers. An engineering consulting firm was hired to provide the City with feasibility studies as well as design alternatives for the harbor and marine related facilities. The feasibility study provided to the City indicated that the most probable scenario in the Sand Point area would be that of virtually no change from existing fisheries industry activity. A less likely, but quite possible, scenerio is a case in which Sand Point would experience a moderate increase in fisheries activity; primarily a local cod fishery and increased traffic of transient boats underway to the Bering Sea fisheries. A dramatic increase in fisheries activity (including bottomfishing) was considered by the consultant to be possible, but not probable, over the next ten to 15 years. The design study presented the City with a number of alternative sites for a new boat harbor and marine facilities. However, it soon became apparent that there were unresolvable conflicts between the technical and political realities of siting the new facility. Given these conflicts and the small probability of need for a much larger harbor in Sand Point, the City placed the new harbor project on indefinite hold and began concentrating its efforts on improving the existing facility to accomodate upgraded marine services. b. Employment/Unemployment The June 1980 census conducted by the City of Sand Point indicated that there were 538 paid employees in the overall population of 794, or 68% of the populace. Figure Three presents the results of that survey by employment catagory. he survey also showed that approximately 85% of all personal income in the community was based on fishing and fish processing, which are considered to be primary industries. This is a very high percentage of primary industry employment (as opposed to secondary or supportive employment) when compared to national noms, and is even high for an Alaskan community where high ratios are the norm. Lo? CLIT LET OO Zin 19 FIGURE THREE COMPOSITION OF SAND POINT EMPLOYMENT JUNE 1980 Activity # Employed Commercial Fishing 279 Seafood Processing 189 Commercial Services 7 Construction 4 Transportation 7 Education 18 Technical/Professional Services 2 Federal Government 3 State Government 5 Local Government 8 Corporations/Non-profit Organizations _6 TOTAL 538 Source: City Survey, City of Sand Point, June 1980. Excluding the small force of company supervisory and clerical personnel, there are over 66 non-fishery related jobs currently held in Sand Point. The largest non-fisheries employer is the local school system with a staff of thirteen teachers. Other jobs include a State Trooper, a physician's assistant, a telephone company employee, bar and restaurant employees, community store employees, an agent and assistant for Reeves Aleutian Airways, a City Harbor Master, a State sewer and water treatment plant operator, State Fish and Game biologist and Maintenance men, air taxi operators, a marine electronics technician, and general laborers. In addition, several residents gain income from part or full time occupations such as carpentry, auto and diesel mechanics, and handcrafts. 20 DEVELOPMENT POTENTIAL: BUSINESS AND LABOR CLIMATE As is the case in most Alaskan communities with fisheries based economies, employment in Sand Point exhibits a degree of seasonal variation. The State Department of Labor maintains quarterly statistics which reflect seasonal employment, but not for individual communities. In this case, their accounting is for the entire Aleutian region. Analysis of the 1980 local census and interviews in the community indicate that there are about one hundred fifty more workers in town during the summer fishing months (May to September) than there are during the off-season months. About two-thirds of these additional workers are occupied as fish processors in the cold storage plant. Typically, the turnover within this transient population is rapid, most employees staying only for one to three months. The summer-transient labor force also includes up to 90 seasonally hired crewmen, residing aboard the boats that operate out of the Sand Point Harbor. This characteristic seasonal variation in population/employment could be tempered if a substantial bottomfish industry, with potential for year-round employment, were to be established in Sand Point. However, if the community develops in the direction of a support/service center for the regional fleet, the degree of seasonal variation is likely to increase beyond present levels as many of the employment opportunities within a seasonal service industry could not support a _ permanent residency in Sand Point. There are no available statistics for unemployment specifically as it occurs in Sand Point. The State's statistics provide only for the Aleutian Region as a block and only include employment which is covered by unemployment insurance, thus excluding a large proportion of fishermen and other self-employed individuals in the area. However, interviews with City officials and in the community indicate that unemployment is not generally perceived to be a problem in Sand Point. Many resident fishermen, and employees in indirect services, spend much of their between-seasons time away from Sand Point. c. Fishing Sand Point is well located to take advantage of the abundance and diversity of commercially significant fish species found in the south Alaska Peninsula area. Primary species harvested by Sand Point fishermen include King crab, Tanner crab, salmon, halibut and herring. Currently (1981) there are 157 Sand Point residents in possession of a total of 312 permits to operate in a wide variety of fisheries. There have been cautious attempts to initiate a local cod fishery in conjunction with region-wide joint ventures into the salt cod industry. Although the fledgling salt cod industry is making headway in other Aleutian locations, employing larger trawlers, the local small boat/longline cod fishery is still viewed as marginal. Local fishermen have been adversely effected by recent declines in King Crab stocks and salmon market prices. 21 Figure Four presents the annual catch of primary species fished in the Sand Point area during recent years as well as the production history for the Aleutian Cold Storage plant in Sand Point; which is the only facility in Sand Point actually processing these species. It should be noted that management areas vary from species to species; however, the figures provide a general indication of the product potentially available for processing in Sand Point as well as the portion of that product which was actually processed in Sand Point. The table indicates various shifts in product orientation of the Sand Point plant during the last two decades. The imposition of King Crab harvest limitations and subsequent introduction of a Tanner Crab harvest are evident during the late sixties. King and Tanner crab production were then maintained at fairly consistent levels over the period, while halibut production was almost eliminated. The rise and catastrophic fall of the shrimp fishery is reflected in the catch figures. Salmon production rose and fell dramatically in the early seventies and then rose sharply again to its present status as the dominant product line. Beginning in 1978, the cold storage company assumed a policy of not releasing production figures to the general public. Interviews with plant management; however, indicate that salmon production has remained at high levels; halibut production has increased (but not greatly); and shellfish production has dropped dramatically, reflecting the recent mysterious disappearance of King crab from the Aleutian region. The plant has also ventured into herring and salt cod operations on an experimental basis. King Crab The King Crab season usually runs from mid-August through mid-January, or until the maximum quota is obtained. Sand Point has been processing about 75% of the actual harvest taken in the adjacent management areas, generally around 4 million pounds a year. During the later half of the sixties, King Crab stocks suffered a drastic decline in numbers which prompted the State to impose closures and harvest guidelines. Since the introduction in 1969 of species Management through harvest limitations, and up until the 1981 season, there had been a fairly stable annual King crab catch in the Sand Point vicinity; and the Aleutian Cold Storage production was maintained at about 3 million pounds per year. The 1980 harvest was a record-setter for recent times with a catch of over 5 million pounds. However, disaster again descended upon this fishery in the last two seasons. In 1980, the total King crab catch for Alaska was over 180 million pounds; about 5 million pounds of that catch was taken in the Sand Point area. In 1981, the Alaska-wide catch plummeted to around 90 million 22 €2 Figure Four Catch Statistics for the Sand Point Area and Production History of Aleutian Cold Storage (Sand Point) (figures in thousands of pounds) * King ACS Tanner ACS ACS ee ACS Crab Prod.* — Crab Prod.* = Shrimp Prod.* Salmon Prod.+ Halibut 14,407 7,855 - - - - 1,880 83 6,292 22,519 9,969 7,965 36 4,935 17,180 6,987 3 - 3,817 67 4,457 10, 940 5,509 no - 4,374 11,339 15 6,929 4,335 2,940 606 770 2,657 13,629 20 6,395 3,512 3,350 2,093 2,139 4,339 24,063 36 5,926 4,211 3,290 2,140 2,363 5,228 18,601 6,181 4,204 2,909 3,938 2,942 14,795 - 9,127 3,016 4,280 3,156 5,652 5,325 18,490 3,501 4,769 1,736 4,302 3,276 8,384 5,453 25,496 7,545 2,276 579 2,476 3, 132 5,483 3,524 19,610 5,237 2,328 1,059 681 3,135 7,264 6,298 37,446 «6,593 16,516 817 571 n/At+ 6, 891 N/A 46,153 N/A 9,844 1,438 2,928 N/A 7,260 N/A 11,812 N/A 26,745 620 4,285 N/A 8,310 N/A 3,134 N/A 36,403 CT] *¢atch data supplied by Alaska Department of Fish and Game Includes Kings, Reds, Cohos, Pinks, Chums Tfource: Comprehensive Plan for Sand Point, 1977 1977 - 1979 Aleutian Cold Storage production figures not available to the public WILNALOd LNAWd015A40 SLVWI1) YOdVT GNV SSANISN@ pounds and the Sand Point area catch dropped to 3.1 million pounds. The 1982 season finished with a catch of about 35 million pounds throughout Alaska and the Sand Point area was closed in November after only 1.7 million pounds were harvested. The King crab fishery is presently managed by limiting total harvest but is not subject to limited entry, requiring only that fishermen obtain a proper license. There is, nevertheless, a maximum practical number of fishermen who could participate in this rapidly declining fishery and expect their share of the harvest to be large enough to be profitable. The ex-vessel price for King Crab has been constantly climbing; by the end of the 1982 season it had reached a level of more than four dollars per pound. However, the scarcity of stock combined with the consequent high ex-vessel price, have turned this fishery into what the fishermen describe as a kind of high stakes lottery. Alaska Department of Fish & Game biologists have not yet determined the cause(s) for the crab's rapid decline. There is no prognosis as to future trends for stock population. The most widely held hypothesis for the dramatic stock decline is overfishing which has collapsed the numbers of male crabs in the breeding stock. Another theory has it that a generally warming trend in the north Pacific Ocean currents is precipitating the decline in stock. Whatever the cause, researchers are discovering large proportions of unfertilized female crabs and crabs in soft shell stages not typical for the time of year. It is most probable that a lengthy period of sharply reduced harvest, or even a harvest ban, will be required to permit crab populations to return to levels which could support the scale of fishery as experienced over the last decade. The decline in King Crab stocks is motivating the diversification of the large crab boats into the trawl fishery for bottomfish. However, while this concept has often been proposed in recent years, it has generally been considered in terms of a supplemental fishery rather than a replacement fishery. These are very hard times for owners of crabbing. boats and many will not survive this period of financial crisis. Tanner Crab With the sharp decline of the King Crab stock in the late sixties came an increased interest in alternative shellfish fisheries such as Tanner crab and shrimp. To help prevent a stock decline such experienced with King Crab, the Tanner harvest was immediately controlled by method of seasonal closure. This led to a_ rapid saturation of viable opportunities in the fishery, which makes any new entry into this fishery quite difficult. Recent National Marine Fisheries Service surveys indicate that Tanner stocks may be experiencing a gradual decline in overall numbers, although the Sand Point area numbers appear to be holding at recent levels. This situation will be coming under increased pressure with the disappearance of the King Crab. 24 DEVELOPMENT POTENTIAL: BUSINESS AND _L. LIMATE Tanner catch figures, which had been averaging about 5 to 8 million pounds per year during the previous decade, have been held to around 3 million pounds during the last three seasons. While ex-vessel prices climbed to around $2.00 a pound in 1981 as Tanner moved in to partially fill the King Crab gap, the price had dropped to $1.10 by spring of 1983. Shrimp As stated above, the shrimp fishery is presently closed in the Management areas relevant to Sand Point. While the Chignik areas have remained open, the Alaska Department of Fish and Game is contemplating the closure of these areas as well until the regional shrimp stocks are perceived to be returning to acceptable levels. Surveys indicate that shrimp stocks have declined by more than 90% over the last four years with no signs of a turnaround. There is some evidence that a recent abundance of predatory pollock and cod in the area are playing a role in keeping the shrimp population down, even in the absence of fishing pressure on the stock. At any rate, the prospects for a commercial shrimp fishery out of Sand Point during the next few years are not good. Herring There are two herring fisheries in the Sand Point area; sac roe and baitfood. The sac roe season occurs in mid-summer, while the bait fishery goes through the winter months. Sac roe Herring is a relatively new fishery in Sand Point. Begun initial in 1979, an increased number of boats fished for herring in the area in 1980; virtually the entire catch of about 1/2 million tons was frozen in the round for shipment to Japan. However, the herring market collapsed in 1980 as a result of consumer resistance in Japan and there continues to be some question as to the status of the near-term market for herring roe. Nevertheless, in 1981, there was a record number of fishermen out after herring in the Sand Point area. This is partly because the herring fishery was still an open fishery and therefore provided an entry into fishing in general. Notably, most of the boats involved were not local boats. In 1982 the Fish and Game Board was advised by the Sand Point fisheries advisory committee to cancel the Sac Roe Fishery in the Sand Point Area. The Board has in fact cancelled further sac roe seasons. Halibut The Shumagin-Chirikof management region is one of the major halibut fishing areas in Alaska. There is both a large-boat fishery which fishes the open sea, and a small-boat fishery in and around the many islands in the region. It is in this small-boat fishery that the fishermen of Sand Point are mostly involved. The season typically begins in May and goes through to August or September. The halibut and 25 salmon seasons overlap and many Sand Point fishermen opt to fish for salmon as the preferred fishery. Discussions with local fishermen indicate, however, that halibut fishing is becoming increasingly attractive with recent changes in relative market value, as well as an observed general increase in the availability of the halibut stock. A proposed three-year moratorium on new entry into the halibut fishery (North Paciific Fisheries Management Council) would have a direct affect on the local halibut fishery. Many Sand Point residents are opposed to the moratorium but it appears, at the time of this writing, that the moratorium will go into effect before the summer, 1983, season. Salmon Salmon is the only species of fish whose harvest in Alaskan waters is managed by limited entry as well as by limited total harvest. Consequently, while it is the preferred fishery, it is also the most difficult fishery in which to gain entrance. The designated management area pertinent to the salmon fishermen of Sand Point is the Alaska Peninsula-Aleutian Islands area. There are a total of 413 salmon permits held for this area ( including 1] permanent permits allowed on the basis of hardship and 32 interim pemits allowed during on-going litigation process). Of these, 173 are drift gillnet permits (26 held by Sand Point residents), 130 are purse seine permits (52 by Sand Point residents), and 110 are set gillnet permits (39 held by Sand Point residents). Altogether, there are a total of 117 pemits for this Management area held by Sand Point residents. Pink salmon predominate the Sand Point fishermens' catch, accounting for almost 70% of the harvest. Red salmon follow at 20%, and dog salmon at 10% of total catch. A small number of silvers are landed each year. Salmon fishing may be an increasingly important factor in the Sand Point economy due to the exceptional difficulties experienced in the shellfish fisheries. In the past, large numbers of locally caught salmon have been tendered to King Cove and other Aleutian locations for processing, primarily to be canned. There has been some indication that the Sand Point processor, Aleutian Cold Storage which emphasizes fresh/frozen products, would be interested in processing an increased portion of that catch in Sand Point. However, due to limited entry, this would not necessarily result in a direct benefit to local fishermen. Bottomfish Cod and pollock are found in great abundance in the Sand Point area. Other bottomfish species, such as Yellowfin Sole, are not found in great numbers within a practical fishing radius of Sand Point. Alaska Department of Fish and Game surveys indicate that pollock and cod stocks are increasing at a dramatic rate. However, with regard to cod, the stocks are expected to decline after 1983 based on studies of cod population year-groups. 26 DEVELOPMENT POTENTIAL: BUSINESS AND LABOR CLIMATE There are a number of problems encountered by fisherman aspiring to a commercially viable access to these vast bottomfish stocks. This is particularly true in Sand Point given the smaller boats typical of the local Fleet. Pollock is a low value per unit-catch species, requiring very large catches to cover operational costs and provide an acceptable margin of profit. At this time, the only proven format for profitable (to Americans) pollock harvesting has been the joint venture in which larger American-owned boats trawl for fish which are immediately taken aboard a foreign processor vessel at-sea. The boats of the Sand Point fleet are generally too small to successfully trawl in the deeper waters where joint ventures are now occuring. While these boats could theoretically team up, using the newly introduced pair trawl techniques, the boats would still be exposed to great risk out on the stomy North Pacific. Trawl fishing in the more protected waters of the island groups is deemed both inefficient, because of rough bottom conditions; and untenable, because of gear conflicts with the shellfish industry, as well as the bottom-damaging aspect of trawling on or near the sea floor. It is highly unlikely, primarily for financial reasons, that Sand Point fishermen would want, or be able, to invest in the larger boats involved in the offshore fisheries. Finally, given the current of salmon fishing, there is very Tittle incentive for Sand prosperit ‘oint Fisheraea to cope with the demands of a new fishery. The prospects of reviving the cod fishing industry in Sand Point have recently raised the hopes of some in Sand Point who have observed the fishing business to be tightening up over the last years. These prospects arose on a wave of entrepreneurship that swept into town in early 1980 in the form of Jangaard Industries, the advance agent for a Norwegian venture seeking to obtain a reliable replacement for the diminishing cod stocks in the northern European seas. Over the last thirty years, the Norwegians have developed a strong market for salted cod products, the markets being primarily in the developing countries of Africa and South America. In home waters, the Norwegians employ a dual approach to cod fishing; large trawlers work the outside waters, while smaller long-line boats harvest the cod in the shallow coastal waters. Jangaard envisioned the development of this same duel approach in Alaskan waters; in this case, employing the Sand Point fleet in harvesting the near shore cod and large trawlers based out of Seattle to cover the offshore harvest. To assist the local fishermen in this pilot endeavor, Jangaard imported two Norwegian longline cod fishermen to transfer their skills to prospective Sand Point cod fishermen. The Sand Point school helped with the organization of longline workshops. Altogether, about seven local boats indicated a willingness to participate in the experimental fishery during the 1980 fishing season. Aleutian Cold Storage Company, for its part, installed an experimental cod processing line with a Baader 27 splitting machine and agreed to buy the cod that the Sand Point fishermen would catch, according to pre-set specifications. From the beginning, this local endeavor was beset with problems. There were communication problems between the Norwegian and Alaskan fishermen including both language problems and differences of opinion about how one fishes. Finally, the local fishermen compromised by using the Norwegian long-line techniques, but using their own familiar halibut long-line gear (which is a much larger scale gear than typically used to fish for cod). Reports from the fishing crews indicate that the hybrid compromise was not an efficient way to fish for the cod, and that Norwegian techniques, including gear, should be more closely adhered to in future ventures. Another problem was the radical change from accustomed fishing lifestyle to work schedules and crew activities required by a low-value-species fishery. The greatest change was the need to gut and bleed the catch before delivery to the processor to prevent early spoiling. This is a very labor intensive activity, necessitating extra crew and long hours of tedious handwork on the trip home from the fishing grounds. Finally, when the boats came in with their first trial deliveries of gutted and bled cod, the fish were largely rejected as being either not of acceptable quality or not of acceptable length. It became evident that the cod stocks in the Sand Point area, at least those that were being caught, were generally too small for efficient processing on the Baader machinery employed by Aleutian Cold Storage on the experimental automated production line. Additionally, the company, which is primarily a freezing facility, determined that the facility did not have the extra storage space required to handle interim storage of salted cod awaiting transshipment. The fishery opened in May, 1981, with Aleutian Cold Storage offering 26¢ per pound for headed, gutted cod. By the beginning of June, Aleutian Cold Storage had virtually stopped buying cod as their processing capacity became saturated by the salmon, halibut and herring harvests. By mid-summer, the last of the locals had quit fishing for cod. While there were indications from the fishermen that they would turn their efforts back to cod fishing in the fall as the harvests of other species droped off, that effort did not materialize. In discussions with upper management of the Aleutian Cold Storage Plant (Pelican Cold Storage), the company indicated a strong desire to diversify their processing operations in Sand Point as broadly as possible, particularly to include the now underutilized species. However, the direction of future operations of the facility is very largely determined by the local management which is adhering to a conservative approach to bottomfish processing in Sand Point. 28 EVELOPMENT POTENTIAL: BUSINESS AND L. CLIMATE In the meantime, the large trawl boats operating for Jangaard out in the Bering sea were having a fairly good year. These boats were equipped with on-board automated heading, gutting and splitting machines. The product was delivered pre-salted to a warehouse facility leased from Peter Pan Seafoods and located in Squaw Harbor, 8 miles south of Sand Point. Altogether, several thousand tons of cod were stockpiled during the 1980 fishing season and transshipped to Norway for additional processing before being re-shipped to the market, primarily in Brazil and North Africa. Jangaard's goal was to produce at least ten thousand tons of product per year in the Sand Point area, and an additional ten thousand tons each at locations around Unalaska and Kodiak. In the last two years, several salt cod operations have been started up in the Unalaska/Akutan area (Trident, SeaPro Johannson and others) and reports so far indicate that these operations are marginally succesful with reasonably good prospects for improving success over the next several years. What this adds up to is that, for the near term, the underutilized species fisheries will continue to be the domain of the large crabber/trawlers operating offshore within the framework of the off-shore joint venture (Pollock), or delivering to on-shore salt Cod processing facilities (Cod). Small boat participation in these fisheries must still be termed experimental. Another aspect of the fisheries market is that of fresh fish. The ability of Sand Point's fishing community to successfully engage in that market is closely tied to the quality and cost of air transport to and from Sand Point's isolated location. There are plans, presently in the feasibility study phase, to improve the runways at Sand Point, Unalaska and St. Paul (Pribilof Islands) which would permit the introduction of a jet-cargo circuit (Boeing 737 type aircraft) through the Aleutian region with connections to Anchorage. The time frame for these plans would put this efficient cargo-link into service no earlier than 1986. Another possibility is that Sand Point fishermen could deliver their fresh fish directly to a facility in Cold Bay, 90 miles to the west, where it could be boarded onto flights with direct routes to the west coast and the Orient. Owing to the narrow profit margins and unstable variables in the market, the private sector has thus far not been inclined to enter into a fresh bottomfish transshipment business out of Cold Bay. Flying Tigers Line, and at least one other private party, are considering doing so, but at this time they remain in a "wait and see" mode. In summary, the outlook for an expanded fisheries in the Sand Point area, involving Sand Point fishermen, is not favorable over the near term. The traditional fisheries are saturated, or over-saturated, and are likely to remain tight for the foreseeable future. The newer 29 fisheries, including shrimp, herring, pollock and cod, which are physically and financially accessible to Sand Point's small boat fleet, are either temporarily closed or moving forward very slowly. However, given Sand Point's demonstrated ability to attract new residents, and the community's plans to expand its harbor capacity and general infrastructure, it is likely that fishermen and fishing families will continue to migrate into the community even though their seasonal fishing efforts may be concentrated elsewhere in the Aleutian or Kodiak regions. With further development of service related aspects of the harbor facility (i.e., bulk fuel storage, electronics servicing, ship repair, runway improvements), there are likely to be more fishermen who relate to Sand Point as their home away from home. d. Seafood Processing Financial ups and downs are a way of life in the seafood processing industry; the history of processing in Sand Point has not been an exception to that rule. The major processing facilities in Sand Point have changed hands a number of times in recent years. There are three processing interests in town; Pelican Cold Storage, which operates the Aleutian Cold Storage facility in town; Ocean Beauty Seafood Products (Sealaska), which operates a service facility adjacent to the airport; and Peter Pan Seafoods, which also operates a service facility adjacent to the airport. Aleutian Cold Storage Company (Pelican Company) Aleutian Cold Storage Company, a subsidiary of the Pelican company, operates the principal processing facility in Sand Point. The company purchased this facility from Pacific Pearl (AmFac) in January 1980 and is presently determining a future course for the plant's production policy. At this time, company management is reluctant to disclose production figures or detailed plans of future development; however, the stated intention is to generally diversify into a broader range of species, and forms of production. At present, Aleutian Cold Storage operates a King and Tanner crab processing line; freezes salmon in the round; and freezes and packs roe herring. The company has recently re-initiated the processing of halibut which is headed, gutted, trimmed and frozen into blocks. The present range of production permits the plant to be in operation year-round although the workforce required during the winter crab season is only about half as large as that required during the summer salmon seasons. The plant employs between 60 and 120 processor workers depending upon the season. About 12 maintenance personell, some 30 DEVELOPMENT POTENTIAL: BUSINESS AND LABOR CLIMATE ALESTIAN COLD STCRAGE -SAND POINT ‘py part-time, are employed year-round. There are about 13 professional salaried positions, also year-round, including management, bookkeeping and engineering support. A cod splitting line was installed in the spring of 1981 with a capability of processing 500 tons per month. It was understood that the cod would be split, dried and salted and, if product quality and market conditions permitted, a large cod dryer would be installed in two to three years with a production goal of some 1,000 to 1,500 tons per month. However, this line, with its automatic Baader splitting machine, was placed on idle status by the beginning of that summer due to problems (quality, size) with the cod being delivered to the plant, and due to a general saturation of plant capacity as a result of the opening of the halibut and salmon seasons. The plant has the equipment necessary to operate a shrimp processing line, but this equipment is idled due to the current closure of the shrimp fishery. Total product handled in 1980 was on the order of seven million pounds. It is anticipated that total capacity will be increased in the near term, primarily as a result of increased salmon processing, freezing, glazing and canning. Increased production resulting from the pilot cod project will most probably be negligible in the near term. 31 Ocean Beauty Seafood Products (Sealaska) Ocean Beauty recently took over the Nefco (New England Fish Co.) Sand Point plant. While these facilities were previously employed in processing, they now function only as a service base and buying station for the company's fleet, which includes the majority of the local purse seiners and gillnetters. The catch of this local fleet is transferred at sea and tendered to King Cove for processing (canning). Ocean Beauty service operations at Sand Point include a carpentry shop, machine shop, cook house, chandlery living quarters and_ mess facilities. The company also operates a small marine rail, capable of handling boats up to approximately 36-38 feet in length. The company would like to be able to offer fuel service to its local fleet; but the condition of the existing dock has deteriorated to such an extent that Standard Oi] will not deliver fuel to the tank area. The former processing facilities are now used primarily for storage of fishing gear. Peter Pan Seafoods Peter Pan Seafoods appears to be interested in expanding their operations in Sand Point but presently also operates only as a service base and buying station for its local fleet. In 1981, the company constructed a 12,000 square foot warehouse facility and operates a small machine shop and repair facility. Two marine rails have been installed with a capacity to handle boats of up to 58 feet. Peter Pan also maintains a large out-door storage area for crab pots and fishing gear. Future Seafood Processing Opportunities On the basis of availablity of resources (fish), harvesting capacity (boats), and market conditions ($), the most probable scenario for on-shore processing over the near term (next 5 years) is a maintenance of existing operations with little, if any, increased demand for processing capacity. The Aleutian Cold Storage facility is expected to be able to handle the annual harvest received at Sand Point over the next years without signficant capital investment except, perhaps, modest improvements to increase operating efficiency. A possible, but less probable, scenario would include the expansion of existing processing operations to include, on a test/limited basis, a cod splitting and salting operation; followed by a gradual increase in bottomfish purchases and broadening of bottomfish products line to include items such as frozen blocks and fish paste (surimi). A full-scale bottomfish production line would translate into 25 to 32 additional positions of primary employment. 32 DEVELOPMENT POTENTIAL: BUSINESS AND LABOR CLIMATE However cautiously a processor might choose to enter into bottomfish production, there are at least two points where the growth process would require large jumps in production policy; and accompanying capital investments. The first jump would be the decision to introduce automated line systems to replace handwork operations, while the second would be the decision to introduce year-round production lines, as opposed to a policy of off-season, supplemental production. Upper management in the Pelican Company has indicated a desire to expand the Aleutian Cold Storage plant operations to include both Cod and Pollock over the next years. However, as noted earlier, the chances for a full-scale, year-round, bottomfish processing line appearing in the next five years are not probable. Less probable, but still possible, is a development scenario in which an entirely new shorebased processing plant would locate in Sand Point in the near future. It would be very difficult for an entirely new processing plant to succeed in Sand Point on the basis of competing directly with Aleutian Cold Storage in the production of the same species. However, a new plant would have better chance of surviving if its production were to focus on other fisheries, that is, bottomfish. This realization of this scenario assumes critical improvements on a number of fronts in the bottomfish picture. A typical bottomfish-oriented facility would operate with a production capacity of between 100,000 and 250,000 pounds of product per day with 200 working days in the year for a total production of about 15,000 tons per year. The plant would operate three to five production lines, with a species mix of 50% cod and 50% pollock with larger fish (averaging 17 inches) providing a fillet or salt cod product and the smaller fish going into surimi (fish paste) production. The unused portions of the fish might then be further processed as a by-product protein source and fish meal. Such a_ facility would provide about 100 employment - positions, with employment extending through a large part of the year. The ratio of management/professional to general laborers would be about one to ten. e. Other Sources of Economic Growth Fishing and fish processing are the economic base in Sand Point. As indicated in the earlier discussion of employment in the community, approximately 85% of the work force is directly employed in the fishing industry while the remainder are primarily involved with providing services for the fisheries workforce. 33 Government and education together provide about 35 jobs in_ the community. Private businesses generated about $2.9 million in gross taxable receipts in 1980. Almost $2.1 million of that amount was attributable to the Aleutian Commercial store; another 200,000 is derived from business at the tavern. The remainder was spread between a number of small businesses, including several air-taxi services, the motel and home enterprises. Members of Sand Point's private business sector have expressed that a major constraint to further commercial enterprise is the lack of available commercial land. This need is also recognized by the City Comprehensive plan which promotes the creation of several new areas designated for commercial expansion. There are a number of other sources of economic growth which could play a role in future development of the Sand Point Area: Mining A resource that could provide either a boost or a detriment to Sand Point's economy is the gold to be found on nearby Unga Island. Gold was first discovered in the Sand Point area at the turn of the century and was extracted primarily by placer methods. There were also some marginally successful hard rock mining endeavors which were abandoned after a decade of operation. Until recently, there had been little further prospecting in the area. As elsewhere, the rise of gold prices prompted a new look at previously mined areas, thought to have been worked-out; but which might again turn a profit given the higher prices. The grade of the ore on Unga Island is quite low and operations that would exploit these minerals will have to be large enough to take advantage of economies of scale as well as modern gold _ recovery techniques. There have been two such ventures on Unga Island at sites located about 15 air miles from Sand Point. Both of these operations are recent developments and are considered to be in the exploratory phase, although initial exploration results indicate that both companies could be around for a while, perhaps in a big way. The first company on the scene, Apollo Consolidated Mining, is a Canadian-owned firm with American subsidiaries operating out of Anchorage, Alaska and Portland, Oregon. The company reports to have spent several million dollars since the summer of 1980 in setting up a 25 person exploration camp, sinking a number of test drill sites and pumping out the long abandoned mine shafts. 34 ELOPMENT POTENTIAL: IN E On the basis of these site studies, Apollo unveiled preliminary plans for the construction of a small camp town which could grow to a community of over 600 people. This would require a company investment of over 60 million dollars. An expressed company policy is to maintain a community/family oriented posture in their development. Field personnel have brought their families with them for the summer, living in individual units, and the company has worked to establish good public relations with the community of Sand Point. Members of the Sand Point Assembly and Planning Commission, as well as members of the Sand Point mistress community, have been flown over to Unga Island at the company's expense for a demonstration of operations in progress. The second company, Resource Associates of Alaska, Inc., has begun a smaller, bunk-house type operation (affectionately refered to as Unga Muck) a few miles to the west of the Apollo claims. Resource Associates was recently purchased by NERCO, Inc., a subsidiary of the Pacific Gas & Electric Company. NERCO has several surface coal mining ventures in operation throughout the continental United States, primarily in the Western states. The new owners have not yet revealed their plans for future development of their Unga Island operation. It is quite possible that a single community will be established which could serve both gold finds. Also to be developed is a deepwater transshipment point and a runway which could be shared by the two companies. Both of the above described mining operations have been described with varying degrees of optomism by management in the respective companies. The success of these ventures; however, is directly dependent on the fluctuating prices of the precious metals markets and, for the present, both exploratory operations could best be described as on hold. The possible development of large-scale mining operations in the immediate vicinity of Sand Point has definitely attracted the attention of people in Sand Point. An entirely new community, of almost equal. size as Sand Point, appearing overnight only 15 miles away, would have some dramatic effects on the Sand Point economy. This would be particularly so if the Unga site were to continue to be primarily a work camp rather than developing into a more or less autonomous community. Sand Point would be in the position of providing logistical and recreational services for the camp, and perhaps providing a place of residency for the families of some workers. Such a possibility would be in line with the anticipated role of Sand Point as a support and service community in relationship to expanding fisheries developments in the Aleutian Islands region. As much of the expected employment related to mining operations would be general labor, there would likely be some competition for the local labor force between the mining concerns and any new fish processing operation setting up in Sand Point. However, as most of the present processor labor force are transient employees, the degree of competition 35 is not expected to be significant. Seasonal variations in employment related to gold mining operations on Unga Island are expected to be in line with existing employment patterns. This would likely preclude the possibilty of working fish in the summer and gold in the winter. Outer Continental Shelf Oi] and Gas The development of the oil and gas resources of the North Pacific and Bering Sea Continental Shelves is an extremely complicated issue, involving potential conflicts between National, State and_ local interests; public and private interests; and energy and fisheries resources interests. These complications, and the harshness of the natural elements in the lease sale area, and the unproven nature of the resource, combine to create conditions of great uncertainty with regard to oil and gas development. Although Sand Point is some distance from potential lease sale areas, full-scale development of the lease area could have a range of direct and indirect effects on Sand Point. The Bristol Bay Cooperative Management Plan, completed in 1983, identifies several transportation corridors recommended for potential OCS onshore pipelines crossing the Aleutian Peninsula from the Bering Sea coast to the ice-free Pacific coast. Two of the proposed corridors cross the Peninsula to Balboa Bay, fourteen miles from Sand Point. The realization of an onshore pipeline employing a Balboa Bay terminal would have direct effects on social and economic condition in Sand Point. Reports from the oil industry indicate that the Balboa Bay crossing might not be the most likely choice from the point of view of the industry. However, final siting decisions would not be made until around 1990, in the event that oil and gas are discovered in production quantities. Sand Point has also been mentioned as a possible site for an "inclement weather holding point". In that case, oi] tankers would anchor off of. Sand Point on an irregular basis while waiting out severe storms in the North Pacific. This could have moderate affects on Sand Point, depending on policies established by the shipping company and the community. A possible indirect affect that OCS development might have on Sand Point would be the effects resulting from a major oi] spill in the vicinity of fishing grounds important to the local economy. Another possible negative effect could emerge if the degree of success in developing regional oi] and gas were great enough to draw away a significant part of the local labor force. Attractive job opportunities might induce an outward migration from Sand Point, particularly amongst the younger residents. 36 ____________ DEVELOPMENT POTENTIAL: BUSINESS AND LABOR CLIMATE Tourism There is presently very little tourist traffic passing through Sand Point, consisting primarily of informal travelers and game hunters. This is generally true for the Aleutian region as a _ whole: transportation is over great distances, arrivals are often unpredictable, and upon arrival, the tourist is almost invariably treated to harsh weather. Nevertheless, there is a slow but steady increase in adventurous tourism to the exotic and hard-to-get-to places of which Alaska has an abundant supply. Sand Point should eventually be seeing its small share of the growing tourist stream, although this will probably not have substantial effects on the community economy in the near term. Runway and air transportation improvements, or the introduction of more frequent ferry service through the Aleutians would greatly enhance tourism possibilities. Agriculture Cattle and sheep have both been raised, with marginal commercial success, on the low grassy islands of the Aleutian chain. Bison were introduced to Popof island at the turn of the century as a source of fresh meat; the surviving herd has been designated as a protected species on the island. Various schemes have been suggested that would link together the operations of an Aleutian fish processing plant (fish meal as fertilizer), a grain crop farm (Delta Junction barley as cattlefeed), and an Aleutian cattle farm (meat export), to the mutual benefit of the three industries. While such a proposition might be technically feasible, it calls for an extraordinary degree of creation and coordination of supply, market and transportation; all of which are now virtually non existent. 2. Native Corporations a. Regional Corporation Sand Point is located within the regional jurisdiction of the Aleut Corporation, with a regional boundary just to the east of Sand Point near Port Moller, and a regional area which includes the western half of the Alaska Peninsula as well as the Aleutian and Pribilof Islands. This corporate presence, per se, has not yet had a significant influence on the development of the community of Sand Point. However, the Corporation does control sub-surface mineral rights for those lands selected by the Community Native Corporations; in this case, virtually all of the land in the Sand Point area. Of primary concern is the maintenance of economical access to gravel and rock borrow sites for use in road and harbor development. The relationship thus far between 37 the City, the local Village Corporation and the Aleut Corporation have been described by City and Corporation officials as cordial and business-like. Prospects are favorable for the continuation of mutually acceptable arrangements to utilize quarried resources in the future. A significant Corporation scheme, recently turned to disappointment, was a proposal by the Aleut Alaska Shipping Co. (a wholly owned subsidiary of the Aleut Corporation) to establish a cargo container service in the Aleutian/Pribilof Region in partnership with American President Lines (APL). APL would have delivered containers from the continental United States to the port in Dutch Harbor and Aleut Shipping would have further distributed these containers to communities in the region. If these efforts had been successful, and the partnership allowed to proceed, it would have provided weekly cargo-container service to Sand Point throughout the year (with monthly service in January and February) at prices well below those now in effect. At issue in this matter was the legality of the partnership. APL receives a federal subsidy which allows the line to compete in the international market. A stipulation of this subsidy prohibits by law the transportation of cargo between domestic ports, a practice which could result in unfair advantage in competition with non-subsidized domestic firms. The Aleut Corporation argued that Alaska should be included, with Hawaii and Puerto Rico, in receiving partial exemption from this law, a part of the Jone's Act, on the grounds that Alaska is remotely located and therefore entitled to be considered as effectively "not domestic". APL had indicated that records for the Dutch Harbor shipments would be maintained separately to assure that the subsidy advantage would not affect the pricing of domestic-bound cargo. However, after extensive lobbying by a coalition of domestic shipping firms, the Jone's Act exemption was denied. Subsequently, the Aleut Corporation announced in February, 1983, that the financially troubled Aleut Alaska Shipping Company would be going out of business as of June. The Company reportedly had lost a total of two million dollars shipping goods between Seattle and thirteen Aleutian Communities. This illustration provides another example of a hardline interpretation of the Jones Act directly constraining economic development in Alaska. b. Village Corporations The Shumagin Corporation (409 members) is the Native Village Corporation for the majority of Native residents of Sand Point. Additionally, a number of Sand Point residents are members of Village Corporations of communities located elsewhere in the Aleutian Chain and Alaska. Almost the entire memberships of the Sanak Corporation (25 members, Pauloff Harbor) and the Unga Corporation (45 members, Unga village) now reside in Sand Point, reflecting the general migration from the smaller surrounding villages into the growing community of Sand Point. 38 DEVELOPMENT POTENTIAL: BUSINESS AND LABOR CLIMATE Arising from the structure of the Alaska Native Claims Settlement Act, there are inherent conflicts of interest between community Native Corporations and any incorporated political entity which represents all of the residents of a given community, both Native and non-Native. This is particularly so in the case of land ownership and control. Section 14(c)(3) of the Act provides for reconveyance of up to 1280 acres of Village Corporation lands to communities existing within the Native corporation boundaries for the purpose of community development. The reconveyance of these lands has progressed relatively smoothly in Sand point. Eight properties totalling approximately 600 acres were agreed upon as necessary for community development. Of these eight, six are already surveyed and conveyed. The properties include a new land fill site, the new school grounds, the City watershed, several roadways and a joint venture rock quarry site. Because of the large Native population in Sand Point, many of the members of the City Council and Planning Commission are also members of the Shumagin Corporation Board of Directors. Relations between the City and the Corporation are described by both Native and non-Native residents as quite cordial. The two entities share a common office space as well as the joint operation of the utilization of surface mineral resources (sand and gravel) available in the area. Up until 1981, the Shumagin Corporation development policy was marked by a generally subdued approach. However, New leadership has made a commitment to turning this image around with several ambitious corporate projects. The Corporation hired a consulting firm (R&M Consultants) to produce a feasibility and design study for a housing development that would be constructed Northeast of the present community. The project provides for 225 individual family units, each on one acre of land. The Corporation also has some very highly developable land overlooking the present small boat harbor which could eventually be used for commercial development, with the lower elevations being devoted to marine related commercial and industrial services. Also in the works are a two-story corporate office building and a hotel/shopping mall complex. These latter two projects are in the early planning stage. Shumagin Corporation has expressed great interest in the possibility of entering into a seafood processing venture on some of its shore front property, most likely in the area between the town and the airport. In 1982, the corporation entered into negotiations with the Norwegian fim, Jangaard A/S, with regard to a possible salted cod production plant. However, those talks were discontinued without expectation that they would be renewed. Jangaard eventually entered into a_ short-term arrangement with Aleutian Cold Storage for a pilot operation which proved to be _ unsuccessful. Nevertheless, Shumagin leadership has expressed their continued interest in attracting fisheries industries to develop on Shumagin land 39 The assets of both the Sanak and Unga Corporations are limited to land holdings in the vicinity of the respective former village sites. Both Corporations have leased land on their respective islands. The Sanak Island lease, for cattle grazing, has expired without renewal. Unga Corporation has a land lease with the mining interests on Unga Island. Representatives of these corporations have indicated that the membership interests are primarily concerned with the maintenance of a land heritage for future generations. 3. Community Attitude Towards Growth Rapid growth has been the norm in this community for the last thirty years. The people of Sand Point generally desire continued growth; at the same time, they are becoming increasingly sensitive to the Management of that growth. The City conducted a survey in 1980 to help define public concerns about future development in Sand Point. The results of that survey, as well as personal interviews and citizen input at public hearings during Planning Commission and City Council meetings, indicate that the community is eager to maintain the economic growth experienced over the last decade. However, there is a growing concern that this growth take place within a form of comprehensive planning which has been lacking in the past. The people in the community recognize that continued growth is likely to translate into changes in the life style which Sand Point now provides its residents. The introduction of a new processing industry in Sand Point would mean a large increase in the number of transients moving through town during the summer months. Increasing immigration of non-Natives may alter the present relationship between the City and Native Corporations. Nevertheless, it is understood that without reasonable growth, there may not be the continuing economic vitality to provide for desired improvements in the town. : DEVELOPMENT POTENTIAL: BUSINESS AND LABOR CLIMATE In recent years, the town was caught up with the rising expectations of a developing bottomfish industry. Expectations were that the town and harbor would more than double in size; a large bottomfish processing facility would provide year-round opportunity for employment; and the resulting fish tax would provide for an improved community infrastructure. More recently, the prospects for development of bottomfishing have shifted to a scenario in which off-shore production will maintain precedence over at least the near term. With this realization, the people of Sand Point have shifted their goals and objectives to reflect their changing expectations. The community now perceives its role in the developing fisheries as that of a support and service base for the Aleutian region rather than as a primary production center. This was reflected by another recent community attitude survey in which residents encouraged the City to pursue federal and state funding targeted specifically at the development of entertainment businesses, community recreational services, and fisheries support facilities such as a bulk fuel storage facility and marine storage. The important point is that Sand Point is a highly motivated community which maintains an effort to keep abreast of critical economic trends, and prepared to accept reasonable changes in the community style of life necessary to accommodate further growth. 4. General Cost of Doing Business a. Building and Rental Building in Sand Point is a complex and costly proposition, as it is in the Aleutian region in general. Many different elements must be brought together at one point during a very short building season with generally unfavorable weather. These elements include financing, construction materials, permit processes and labor; each of which has its own particular constraints. While these are problems associated with. building anywhere, they are especially acute in a remote and inclement site such as Sand Point. There are several construction firms which have begun to specialize in remote coastal construction using their own barges equiped with living quarters and general work shops. The Alaska Department of Transportation and Public Facilities has developed a computer program that provides the relative cost of constructing buildings on a per-square-foot basis for different regions and communities in Alaska. These costs reflect the costs of buildings constructed in recent years, taking inflationary increases into account, and are related to the costs of constructing a similar structure in Anchorage. These figures should be considered as approximate and are presented here only to indicate the general degree of increased expense of building in Sand Point. Pre-construction costs are calculated to be 29% higher in Sand Point (than Anchorage), building costs would be 32% 41 higher and maintenance and operational costs would be about 35% higher. It should be noted that the cost of building in Anchorage is generally considered to between 25% and 50% higher than the cost of similar building in the Pacific Northwest. Housing is in great demand in Sand Point and rental units are virtually unobtainable at this time. Approximately 33% of all household units in Sand Point are rental units (not including a number of boats in the harbor which are used as a place of residence). Rental unit costs run about $550 per month for a two-bedroom home and $350 per month for a medium size mobile-home unit. Development projects which require more than a few imported workers will have to consider the provision of housing for its labor force. As an example, A heavy-equipment operating crew was brought to Sand Point during the summer of 1982 to work on the grading and resurfacing of the town road system. Company personnel were housed in a trailer home which was barged from Anchorage and placed on vacant city-owned land. As Compensation for use of the land, the company agreed to improve two lots by leveling and providing services (water, sewer, and power). After the project was completed the trailer was removed and taken back to Anchorage. b. Transportation Costs There are basically two modes by which items are transported to and from Sand Point. Bulk commodities and non-spoiling foodstuffs are typically sent by sea, while smaller items and perishables are transported by air. There are several sea transport service alternatives available to Sand Point. By far the least expensive, when appropriate is utilization of the Alaska State Marine Highway System ferry which makes three or four Aleutian Islands trips between late spring and early fall. Most vehicles, including heavy construction equipment arrive in Sand Point in this manner. All materials shipped must be in vehicles or containers on wheels which may be off-loaded by vehicles in Sand Point. Charges are made on the basis of the size of vehicle. 42 EVELOPMENT POTENTIAL: INESS AND _L IMATE Almost year-round services are provided by Western Pioneer Inc., of Seattle, and by Alaska Marine Shipping Lines. Service is scheduled at least once-a-month, weather permitting. These companies provide a tariff schedule for the variety of commodities shipped, with different charges for different catagories of commodity and prices generally being about 15¢/pound. In addition to this tariff there is a wharfage charge and a handling charge if handled by Aleutian Commercial Store which together add up to 1 1/2¢/pound. A second method of charge, on a dimensional basis at about $2.80 per pound-equivelant, is used for low-wei ght/high-volume materials and the companies generally charge the higher of the two possible methods. For this reason, it is much more costly to ship pre-fab construction units, which would be charged per volume, than it is to ship the same construction materials unassembled, which would be charged on a weight basis. Air freight services are provided by Reeve Aleutian Airways which provides daily (depending on weather) flights to Sand Point. Charges for general commodities are 58¢ per pound, and for shipments over 500 pounds, the charge is $48.30 per 100 pounds. Foodstuffs are charged at the straight rate of 34¢ per pound, however; this special rate is expected to be discontinued in spring, 1983. There is a priority rate available for urgent items of 75¢ per pound, or $62.80 per hundred pounds for items over 500 pounds. All of the above rates are subject to a 5% tax. A passenger ticket to Sand Point from Anchorage costs $272.00 one way and double that for round-trip (All above tariffs and fares as of March, 1983). c. Taxes The City does not tax its residents for property ownership. There is, however, a general sales tax of 2% (1983). There is specific language in the City ordinances regarding the sale of fish which establishes the. prerogative of the fish processor as a buyer of fresh fish, to either pay the sales tax or require that the seller, the fishermen, pay the tax. In the case of the Aleutian Cold Storage, the only active processor in Sand Point, the company will pay the tax if the fishermen deliver the fish to a company tender operating outside of the city's jurisdiction, but the fishermen must pay the tax if delivering to the company's dock in Sand Point. In addition to the sales tax, the city charges a moorage fee for use of the small] boat harbor on the basis of length and beam, and a wharfage fee for materials handled across the harbor dock. The latter is mostly associated with the storage of transient crab pots and fishing gear. 43 d. Insurance Fire safety ratings are established by the Insurance Services Organization (ISO). The fire insurance rating for Sand Point has been recently reduced from a nine (ten being the highest risk category) to a seven as a result of the City's purchase of a new fire truck and establishment of an approved volunteer fire department. e. Utility Rates Water and Sewer. The city charges a flat rate of $12 per year for the use Of water and sewer services. Power. Electrical power is provided by a privately owned company, PeTican Utility. Residential charges are 25.03 cents for the first 200 kwh per month and 22.55 cents for usage beyond 200 kwh with a minimum charge of $9.28 per month. Commercial charges are 22.55 cents for the first 100 kwh, 20.08 cents for the second 100 kwh, and 15.13 cents for usage above 200 kwh per month. Pelican Utility recently requested the approval of the Alaska Public Utilities Commission (APUC) to increase charges for power in Sand Point but the request was denied. 5. Services Available for Development As is the case for most remote Alaskan towns, commercial development in Sand Point is well below that of an average community of the same size in the “lower 48". A most significant enterprise is the recently established Aleutian Commercial General Store (affiliated with Ace Hardware, Inc.) located in the center of town. This store is well stocked with a wide range of merchandise, including fresh vegetables, and serves to meet the needs of the transient fleet as well as the residents of Sand Point. In 1981, The Aleutian Commercial company expanded its building to provide increased grocery services and a full service banking facility. Other commercial services include: a motel, the Anchor Inn, located on the main road near the Aleutian Cold Storage building; a bar and restaurant (intermittently open) located just off the main road in an area known locally as Little Sanak; a small show house/movie theater ue infrequent showings; and several specialty shops located in private ome s. A large proportion of purchases are made through mail order retail services. A recent community survey indicated that over 75% of all merchandise was acquired by mail order, primarily out of Seattle. 44 DEVELOPMENT POTENTIAL: BUSINESS Al IMATE Because of the transportation costs, volume factors and operating overhead, it is very difficult for local businesses to compete with this type of operation. While, there is a strongly expressed community desire for more convenient local retail and entertainment services, the price tag of convenience remains too costly. Here again, transportation costs play a determinant role in this community's lifestyle. The Shumagin Corporation has tentative plans to construct a hotel/shopping mall. This project is still in the conceptual stage and no date for completion has been set. There are no full-service construction firms in Sand Point. However, several residents have developed a background of general contracting experience and have taken on increasingly complex building projects. The sub-contracted services, such as electrical, plumbing, and concrete work, are provided either by local people on a part-time basis, or by specialists whe are brought in from outside for the duration of the job. The services provided by residential handymen are adequate for most home ‘mprovements and automotive repairs, but would not be sufficient to take on a large-scale project such as the construction of a new hotel. There is a marine-electronics equipment sales and service representative presently residing in Sand Point. This person is presently pursuing the development of a sales and service shop that would be located in the vicinity of the harbomaster's office on lands adjacent to the boat harbor. Notable services lacking in Sand Point include the need for a public laundry facility and a private sector gas and service station. Also lacking in Sand Point is any form of community newspaper or newsletter. 6. Labor Relations The only established business in Sand Point for which a discussion of labor relations would be relevent is fish processing. General construction work would probably involve either non-union local and transient laborers or Union tradesmen hired out of Anchorage or the Pacific Northwest. Virtually all processor employees at the one plant currently active, Aleutian Cold Storage, are transient workers from outside Sand Point; most of them from outside of the State. These workers are usually working on the basis of a 4 to 6-month contract which includes round-trip air fare from as far as Seattle. While wages for processor workers in Sand Point are well below state averages, with entry-level base at around the minimum wage per hour, workers are provided with room and board. 45 The Alaska Fishermens' Union, based out of Seattle, currently provides workers in Sand Point with union representation. Interviews in the community indicated that the union did not have a strong presence in the relationship between management and workers in Sand Point. More aggressive efforts to organize processor workers have occurred from time to time throughout the Aleutian region, the most recent effort being carried out by the International Longshoremans and Warehousemans Union (ILWU). The ILWU, Alaska Chapter, has increased the tempo of its activities in the Aleutians, and processing companies should consider the requirements of an adjustment to more demanding union employment in the near future. In early 1983, workers in two Dutch Harbor plants voted overwhelmingly for ILWU representation. An ILWU organizer stated that contract negotiations would have to take into account that bottomfish processing is a fledgling industry that the union does not want to jeopardize. 7. Business and Labor Climate: Implications for Development The major implications of Sand Point's overall business and labor climate relative to development potential and constraints are listed below: ° Fishing and Fish Processing, primarily salmon, are and will remain the mainstay of the Sand Point economy. However, opportunities for limited-entry participation in the fisheries operating out of Sand Point are nearly saturated; resources are either stable or in decline, and markets are not strong. It would probably be marginally profitable to initiate a major processing operation in Sand Point in the near term. An exception to this could be an on-shore salted cod processing facility. The success of such an operation would depend largely on the creation of a local fleet, skilled in appropriate cod fishing techniques; and the proven. existence of cod resources amenable to automated production. ° The community, and its municipal and corporate leadership, uniformly express a desire for economic growth which jis both aggressive and managed. A fisheries industry looking for a home would be welcomed by the community of Sand Point. ° Extensive development of the Unga Island gold operations would have significant affects on general development in Sand Point. These effects could range from beneficial (increasing Sand Point's role as a center of service provision) to detrimental (an autonomous and dynamic Unga Island community would compete with Sand Point for available labor force and State financial resources available for development in the region) However, the most recent reports from 46 DEVELOPMENT POTENTIAL: BUSINESS AND LABOR CLIMATE the companies concerned indicate that extensive mining of the Unga Island mineral resources is unlikely to occur in the next several years, and then, not until the market for gold takes a dramatic upturn. ° OCS participants in the Bering Sea (St. George Basin, North Aleutians Shelf) are not likely to make direct use of Sand Point as a staging area or service base during either exploration development phases. However, if development warranted the construction of a cross-peninsula pipeline, and if a Balboa Bay corridor were chosen, this could have substantial direct effects on Sand Point's development. With regard to indirect effects, catastrophic oi] spill, while unlikely, could be devastating to the fish stocks on which Sand Point depends for its 1ivl ihood. ° Tourism and agriculture are not likely to play a large role in the Sand Point economy in the next decade. ° Costs of development and production in Sand Point, including transshipment of the product, are comparable to those elsewhere in the eastern Aleutian Island region which means that they would be higher than elsewhere in Alaska and very much higher than costs in the Pacific Northwest. These costs are a considerable handicap, particularly in the bottomfish marketplace where small profit Margins are the rule. The repeal of the Jones Act, or exemptions for Alaskan shipping/fishing/processing vessels, would significantly beneficial to the fisheries economics of the region. ° The Aleut Regional Corporation and the Shumagin Village Corporation both have good working relationships with the City of Sand Point. The Shumagin Corporation has demonstrated an interest in possible joint venture operations using Shumagin Land conjunction with private sector capital /management ° While housing is presently a critical constraint to growth, the developing Shumagin sub-division could greatly alleviate housing pressures. The filtering effect of people moving into the new homes should free up some existing housing at moderate prices or move it into the rental market. e Investors and developers should be prepared to import virtually all services and supplies required to establish a business enterprise in Sand Point. 47 FIGURE FIVE SAND POINT, ALASKA LAND OWNERSHIP UNGA STRAIT HUMBOLDT HARBOR == PROPOSED SCHOOL SITE Corporation = Lop, POTENTIAL: LAND STATUS AND USE B. LAND STATUS AND USE The incorporated boundary of Sand Point includes most of the western half of Popof Island. By and large, the existing patterns of land usage in Sand Point reflect the community's origins as a company town. The Aleutian Cold Storage Company owns virtually all of the land within the the developed community, an area representing about 5% of the total incorporated area of the City. By owning the major part of the developed land, as well as the community's utilities systems, the predecessors of the present company controlled virtually all development in Sand Point. Additionally, the lands in the vicinity of the airport, excepting those owned by the State, are controlled by seafood processing companies, Peter Pan Seafoods and Ocean Beauty. The vast majority of the remaining lands on Popof Island are owned by the Shumagin Corporation. Of the total acreage within the incorporated limits of the City, approximately 2% of the land has been subdivided and sold; 1% is State land; and the remainder is part of the federal domain which has been conveyed to the Shumagin Corporation as part of the Alaska Native Claims Settlement Act. Figure Five presents land ownership in Sand Point. The area pictured represents about one-third of the total land within the incorporated municipality; the remainder of lands within the incorporated boundary, not shown, are owned by the Shumagin Corporation. Ownership of lands by "government" may be further defined as federal lands (the Army Corps of Engineers retains control of Humboldt Harbor and immediate uplands); State lands (the Department of Transportation and Public Facilities maintains the lands around the airport); and City lands (existing and proposed school sites, cemetary, city offices lots, resevoir and watershed, and joint ownership of a rock quarry with Shumagin Corporation). Sub-surface rights on quarry lands are maintained by the: Regional Aleut Corporation. While Aleutian Cold Storage Company is the major land holder in Sand Point, only 13% of its land is industrially oriented. Much of the remaining company held land is used to provide housing and services for company employees. Services in these areas include a mess hall, a laundry, the power utility and the company's own water utility. These lands are immediately adjacent to the cannery and sweep around the eastern side of the small peninsula on which the community is located. Non-company development is concentrated upland from the cannery and company lands and continues north and west along the main road and down to the waters of Popof Strait. In general, as one moves north, and off of the peninsula, development becomes more _ dispersed. Scattered throughout this area are those services which are not provided by the 49 company. These include the school, a Baptist church, movie theater, bar and restaurant, City building, jail, post office, State Fish and Game offices and State Trooper's headquarters. Most of the town's residential housing is also found in this area. Approximately 30% of the land is occupied by single family homes, 7% residential trailers, 12% public buildings and 2% commercial. There is a great deal of subdivided land in Sand Point that remains undeveloped. Approximately 38% of company and non-company land in the immediate vicinity of existing city development remains undevel oped. The appropriate "in-fill" utilization of this land is one of the most pressing problems in establishing an effective future land use plan for the community. Figure Six presents the existing use of land in Sand Point. Lands not owned by the company were officially platted in the early 1960s before municipal incorporation. At that time, only a group plat was produced; primarily to establish boundary lines between individual properties. Consequently, no provision was made for future street rights-of-way. Most properties in the older sections of Sand Point can be reached only by boardwalks laid accross non-public lands. Most importantly, the lack of vehicular access to a large portion of the town presents a problem in the provision of City services to these lands (fire protection, garbage collection). In conjunction with proposed improvement of the Sand Point harbor and dock facilities, the City contracted an engineering consulting firm to provide the City with a harbor "master plan" for the development of these facilities. The master plan included an economic and feasibility study of potential local fishing industries. On the basis of study findings, the plan suggested a course for the development of Sand Point's marine facilities, including uplands marine related services. The final study report presented a proposal for land utilization which. reflected the fundamental assumption that fisheries industry growth in Sand Point would be moderate to dramatic; a growth rate which the study qualifies as being possible but not probable. 50 FIGURE SIX SAND POINT. ALASKA EXISTING LAND USE soy 1000" 1500" 2000" 2500" td "Mile UNGA STRAIT HUMBOLOTS= HARBOR PROPOSED RVOIR RESERVO! SCHOOL SITE LANDFILL Single-family Residential Mobile Home Residential Multi-family Residential General Commercial Public Quasi-Public Industrial Vacant The 1981 Sand Point Comprehensive plan and subsequent land use updates, present a somewhat different proposed use of land than that provided in the Harbor Master Plan. The City's proposed use of land (1983) is presented in Figure Seven. While these two land use plans employ somewhat different classification systems, there are several notable points of comparison between land utilization as visualized by the consultant and by the City: ° Both plans are qualified by the requirement for further soil studies indicating acceptable siting characteristics. ° The Harbor Master Plan study area is limited to the immediate vicinity of coastal areas and its focus is more specifically directed at harbor development rather than area-wide devel opment. ° The Harbor Master Plan recommends that the slopes upland from the harbor be held for residential development, while the City Comprehensive Plan proposes to develop that area as light and heavy industrial. While these slopes, overlooking the harbor, do have a great appeal as home sites, the City determined it preferable to Maintain a separation between developing residential areas (on the west/north side of Humboldt Slough) and developing industrial areas (on the east side of the slough). ° The Master Plan recommends creation of a commercial belt along Boat Harbor Road, while the Comprehensive Plan, again, contains all proposed commercial zones to the west side of the Slough. ° The Comprehensive Plan maintains a greenbelt along the western edge Humboldt Slough, while the Master Plan proposes residential development to the waterline. ° The Master Plan suggests the creation of a new commercial area along the road leading to the Aleutian Cold Storage Plant, while the Comprehensive Plan would hold this area for residential devel opment and create a new commercial area, instead, to the north along the west bank of the slough. In general, the City's Comprehensive Plan reflects the broader aspects of the community as a whole and attempts to organize future development along lines that maintain the integrity and physical separation of varying uses of land. The Harbor Master Plan. on the other hand, is naturally focused on the harbor and its related uses, and permits a more interspersed development of land use. In either case, there is adequate land proposed for the critical industrial and commercial erat) to ermit major sical growth in fisheries industries. eavy industry 1s assumed to be a processing/transporation facility, while light industry refers to warehousing and fabrication workshops. 52 FIGURE SEVEN SAND POINT, ALASKA SSS ===] PROPOSED LAND USE P= SCALE: 1”= 2000’ rere UNGA STRAIT = =z PROPOSED yomarous ‘SOUTH BREAKWATER a MARBOR i € ROPE ISLANDS LEGEND 2 SE So family Residential Mobile Home Residential SS Multi-family Residential BRAD General Commercial (EEE Neighborhood Commercial | existiNG RoaDs =—— SS Heavy Industrial PROPOSED ROADS ====: RRB Light Industria! (J Open Space The City's land use plan, aside from being more comprehensive, appears to be a more carefully considered concept. Nevertheless, if the City at some future date resumes the pursuit of a major harbor addition, the detailed Harbor Master Plans developed by the contractor should serve as a valuable source of ideas and technical infomation in preparing for, and responding to, marine related development. As the harbor develops, lands near the foot bridge across Humboldt Slough and behind the present harbormaster building will become increasingly attractive as industrial/commercial space. The lands behind the most probable site for an expanded harbor, adjacent to the south side of the existing harbor, also offer some potential for industrial development, but these lands are extremely cramped beneath steep rocky slopes. This land is designated to be a bulk fuel storage area, further restricting its potential as a future processing plant site. Another possible location for industrial expansion is the land surrounding the airport. If proposals to realign the existing runway are realized, more land will become available for industrial use. There are presently approximately 16 acres of land in industrial use within the incorporated municipality. The most recent Sand Point Comprehensive Plan calls for the reservation of a minimum of 80 acres for industrial growth, particularly fisheries related waterfront development. The most likely areas of residential expansion include the existing vacant lots scattered throughout the town, the proposed Shumagin "Meadows" housing development to the north of the presently developed community. The Comprehensive Plan for Sand Point requires the creation and maintenance of buffer strips of undeveloped land between areas of residential and industrial land. Interviews with public officials and leadership of the Shumagin Corporation indicate that there is a good working relationship regarding the availability of lands for residential, commercial and industrial. growth. Land: Implications for Development The availability of land should not be a major constraint to setting up a seafood processing facility in Sand Point. The City comprehensive plan provides for a five-fold increase in industrial lands, several parcels of which would be appropriate for shore-front facilities. In terms of actual lease or purchase arrangements, there are a number of different "owners" of land in Sand Point, each presenting a different set of prospects and requirements. Aleutian Cold Storage Company owns all of the prime "downtown" waterfront land which is permitted by City Tand use plans as suitable 54 DEVELOPMENT POTENTIAL: LAND STATUS AND USE for industrial expansion. Of course, the company is not likely to introduce a competing firm into its backyard without great expense involved, if at all. If Aleutian COld Storage chose to develop a new or expanded facility it would have no trouble finding adequate space on its holdings. Across Humboldt Slough, immediately behind the present boat harbor, the Amy Corps of Engineers retains ownership of about 15 acres. The City has the option to lease these lands for development. The City's comprehensive plan proposes that this area be used for commercial and light industrial purposes, which would exclude a major processing facility, but would include various supporting services. The Shumagin Corporation, by far the largest land holder in the area, has demonstrated an interest in lease/joint venture arrangements on waterfront holdings between the town and the airport, and along the Popof Straits coast to the north of the community. The Corporation also has extensive upland holdings at these sites. Corporation leadership has stated a preference to establish a business relationship(s) with a seafood processing firm(s) with clear plans for long-term development. Shumagin would provide the land, probably on a lease basis, and perhaps initial development capital. Another possibility for available land is the airport-spit vicinity where two seafood processors presently maintain fleet service centers. A proposed airport realignment would free up land in that area which might be available for further industrial development. However, both of the existing processors near the runway are interested in expansion and Reeve Aleutian Airways has long been trying to acquire additional land adjacent to the runway for purposes of enlarging its terminal facility. Reeve recently acquired a half-acre lot from the State for relocation of the terminal (trailer). Another problem associated with an airport area processing plant would be the increase of scavanging birds in proximity, to the airport's flight paths. While it is still possible that the airport realignment will be accomplished at some future date, it is not likely to occur within the next five years, and new lands would not become available until an even later date. C. PORT AND HARBOR FACILITIES 1. Existing Facilities Present harbor and dock facilities include the recently constructed Humboldt Harbor (1977), The City Dock (1982) attached to the harbor breakwater, a fuel dock and main unloading dock at the Aleutian Cold Storage facility in town; the Ocean Beauty dock located near the airport runway and the Peter Pan boat rails, also located near the runway. These facilities are illustrated in Figures Eight and Nine. 55 "SAND POINT ALRPORT PPO AR Cy SCALE: 1”= 500’ PETER PAN ~ SEAFOODS IGEAR STORAGE & BOAT REPAIRI > OCEAN BEAUTY DOCK & SERVICE FACILITY FUEL TANK FARM ALEUTIAN COLD STORAGE [PELICAN] MAIN DOCK FUEL DOCK FIGURE EIGHT SAND POINT. ALASKA EXISTING HARBOR FACILITIES CITY DOCK FIGURE NINE SAND POINT, ALASKA HUMBOLDT HARBOR SCALE: 1”= 400’ ALEUTIAN COLD STORAGE |PELICAN] FUTURE BERTHING EXTENSIONS TIMBER DOLPHINS HARBOR MASTER WILNSLOd LNAWd013A30 SAILITIOWVS YOGUVH ONY LYOd Humboldt Harbor, located to the east of the mouth of Humboldt Creek, consists of two rubble-mound breakwaters with a single entrance and provides a protected mooring area of 16.6 acres. The main (north) breakwater is 1,025 feet long and provides the main protection from wave action for the mooring area. It has a crest level of 15 feet above MLLW to prevent overtopping by a 6.2 foot design wave from a southwestern direction. The breakwater is connected to shore by a 1,175 foot long dike across the north end of the basin adjacent to Humboldt Creek. The dike elevation is 12 feet MLLW and designed to prevent entry of fresh water from Humboldt Creek into the mooring basin. A second breakwater 740 feet long closes the southern end of the basin. Since this breakwater is less exposed to wave action it has a smaller crest level 13 feet above MLW. The entrance channel is 120 feet wide and approximately 1,200 feet long dredged to a depth of 18 feet at MLLW allowing all-tide passage for vessels up to 14 feet in draft. A controlling depth of 18.5 feet at the MLLW was recorded throughout the harbor in October 1979. A floating concrete slip system is installed in the basin with a fixed loading dock of timber construction. The dock is 42 feet by 105 feet with an approach of 16 feet by 360 feet. At the present time slips are available for 154 craft varying in length from 30 feet to 165 feet. Approximately 35 small skiffs are moored alongside the main access float. Additional moorage for transient vessels was provided in 1981 when six timber pile dolphins were driven inside the north breakwater arm. The present harbor configuation has reached saturation. There are as many as 25 boats waiting to obtain mooring privileges and the harbor is congested with transient vessel traffic with the changing fisheries seasons. The City is considering proposals to upgrade its harbor facilities. Smaller scale concepts include a re-configuration of the moorage and slip layout within the existing harbor and the addition of moorage floats. This could provide for approximately 40 additional small] boat (35-58 feet) slips. Large scale improvements call for the construction of a complete harbor addition accomodating up to 120 or More additional boat slips, many designed to handle the larger boats of the transient Bering Sea Fleet. To increase its capacity to service and repair boats, the City has constructed a 150 ton boat lift station on the south side of the harbormaster building (see Figure Nine). This necessitated the removal of seven existing slips. There are approximately 1-1/2 acres of uplands behind the lift that could be developed for boat servicing and repair. 58 —___CDEVELOPMENT POTENTIAL: PORT AND HARBOR FACILITIES The Aleutian Cold Storage Dock facilities are timber construction with a 270 foot face, a 34 foot apron and a water depth at the face of 22 feet at MLLW. Rails are provided to accomodate reefer van movement on the dock; up to 16 units may be stored at any one time. Until recently, the Aleutian Cold Storage wharf facilities were used to accomodate off-loading cargo vessels and visits of the Alaska State Ferry. The Company expressed a desire to close its facility to non-company business due to conflicts with fish handling operations. To these ends the City developed the new city dock located at the tip of the harbor south breakwater. The City dock, completed in September, 1982, extends from the end of the south breakwater of the present boat harbor. the dock area is 200 by 62 feet with a water depth at the face of approximately 30 feet. A road has been constructed along the south breakwater and tied into the city road system behind the existing harbor. Approximately two acres adjacent to this beach road will accommodate a proposed 500,000 gallon bulk fuel storage facility. Aleutian Cold Storage administers all retail fuel sales in Sand Point. Supplies are presently handled at a small Company dock adjacent to the main facility. As this dock serves as the community gas station, as well as supplying the local and transient fleets with gas and oil, the area and its approaches is often congested. The Ocean Beauty dock near the airport is in an advanced state of deterioration. Chevron has refused further delivery of fuel to the facility and its present use is limited to the transfer of fishing gear to and from the company's storage area. Ocean Beauty operates a marine rail pull-out in this area which is capable of handling boats up to 38 feet in length. Peter Pan Seafoods also operates two marine rails several hundred feet further south. This facility can handle boats up to 58 feet in length. 2. Proposed Harbor Facilities During the last several years the City developed and implemented a concentrated planning effort to address the problems of a saturated harbor facility. Significant development proposals ranged _ from expansion of the existing boat harbor to addition of an entirely new boat harbor. In the new harbor scenerio, the existing harbor would service the "home fleet", while a new harbor would serve the transient fleet and accomodate future industrial expansion. An engineering consulting firm was hired (R & M Consultants/TAMS) to provide the City with feasibility studies as well as design alternatives for a harbor and marine related facilities. While the feasibility study 59 was generally pessimistic regarding the prospects for bottomfish development over the next ten years, it nevertheless provided the City an in-depth analysis of several alternative sites for locating a new harbor. After much study and debate, the City has decided to proceed on a relatively conservative course, while maintaining a _ posture of preparedness should the combination of need and opportunity arise which would demand a reconsideration of new harbor construction. The City has chosen a direction of development which realistically reflects the most probable potential fisheries developments in the Sand Point area. If the City were to develop the new harbor, the most likely location would be a site immediately adjacent to the existing harbor on the south breakwater and extending along the south shore. This proposal is illustrated in Figure Ten. Other site alternatives further to the south and in Popof Cove (the consultant's preferred location) were found to be unacceptable to existing land owners or public opinion, or would not provide the City with the features required to handle a transient fleet. The proposed site selected, just south of the existing harbor, does have limitations in meeting the anticipated requirements of a new city harbor. Expansion is primarily limited by the presence of relatively deep water near to shore. In order to provide at least 14 acres of mooring basin it would be necessary to extend the basin limits to beyond the 30 MLLW contour. Construction of a rubble-mound breakwater in such depths would be very costly. Local fishermen also report the existance of rock outcrops in the area of the proposed basin as well as at the mouth of the proposed entrance channel. The design would provide approximately 115 additional slips. Also, there is some question as to whether a basin in this location would provide favorable moorage or adequate turning radius for larger boats; thus failing to satisfy the City's intentions of using the new facility primarily for the transient fleet, which tend to be larger boats. If the City should decide to pursue the construction of a new harbor, it would be five to ten years, from the time of that decision, before the new harbor was available for use. The City is in the process of developing a marine repair facility near the new boat lift. Plans call for a 9,000 sq. ft. structure with 5 open bays and various enclosed repair equipment areas. 3. Port and Harbor: Implications for Development Insufficient harbor facilities are a major constraint to development in Sand Point. The existing harbor is being used to the limits of its design capacity and there is currently a waiting list of twenty more boats that would use the facility if they could. The present float and slip configuration could be extended, but at. the cost of diminished maneuverability within the basin. 60 L9 CAPACITY OF BOAT BASIN LENGTH (FT) _]__nomaer 36 | __SKIFFS @ RUNABOUTS TOTAL WILNSLOd LN3Wd013A30 EXISTING SMALL BOAT HARBOR LuOd = ites \ . Yf—~ 8 Sa ¢ jrurone stale. pe ~TaReA . ) ib —. NOY C ee HARB ACCE! . ROAD e sin FIGURE TEN SAND POINT, ALASKA PROPOSED SOUTH BREAKWATER HARBOR SITE SCALE: 1”= 300° A key issue which will remain with the people of Sand Point is the possible construction of a major boat harbor addition. At issue is the location of the harbor, the size and configuration of the harbor, its ultimate fuction within the community's economy, and whether or not it should even be built. Major industrial or bottomfish deve lopment in Sand Point would require the addition of a arge new boat harbor. e€ moorage configuration o e new harbor shou e signed to accommodate the larger vessels utilized in deep water operations in the North Pacific Ocean and Bering Sea. However, it is assumed to be not probable that fisheries developments in the Sand Point area will be such as to require the accomodation of an extensive fleet of large vessels. A more probable development in Sand Point would be maintenance of the status quo as far as the home fleet is concerned and a_gradual increase in moorage of transient vessels as Sand Point offers more marine relate services. Additionally, Sand Point is an attractive place to live in the Aleutian region, it is assumed that there will be some increase in the number of large boat fishermen who would live in Sand Point but would continue to fish elsewhere. This latter scenerio would also require the eventual construction of an additional boat harbor in Sand Point. Given that the site which is acceptable to the community represents a compromise of physical and political demands, there remains some question as to whether such a facility could satisfy the requirements of cost/benefit analyses and national interest in order to qualify for funding through the Amy Corps of Engineers. The State would probably be required to put up from one to two million dollars for such a project, the total cost of which would be around ten million dollars. There appears at present to be an unresolvable conflict between local property interests on Popof Cove (over twenty individual owners) and the envisioned functional requirements of a new boat harbor (which would be satisfied by the Popof Cove location better than by any other site). A new harbor addition limited in design to accommodating the same kinds of boat lengths as the existing harbor probably could not demonstrate economic feasibility. The result is that the community is left with the status quo harbor facility, already insufficient, and becoming increasingly insufficient as Sand Point's service aspirations expand. D. COMMUNITY FLEET The present harbor has reached its design limits of occupancy and there is a waiting list of between 15 and 25 boats seeking moorage slips. Several characteristics of the present vessel occupancy become apparent when categorized by size and home port (Sand Point or transient). These characteristics are presented in Figures Eleven and Twelve. 62 DEVELOPMENT POTENTIAL: COMMUNITY FLEET Figure Eleven SAND POINT SMALL BOAT HARBOR BERTH OCCUPANCY 1976-1980 Year Permanent Stall Transient* % Transient 1977 44 30 41% 1978 60 30 33% 1979 83 75 47% 1980 107 91 46% Figure Twelve LENGTH OF VESSELS 1980-81 Permanent Slips Transient Vessels Length No. of Length No. of (feet) Vessels (feet) Vessels under 20 2 under 50 3 21-30 8 51-81 ] 31-40 53 81-100 10 41-50 21 101-120 8 51-60 21 121-140 2 61-80 2 141-160 1 81-100 - over 160 1 over 100 - Source: R & M Engineering/TAMS, 1981 The figures above demonstrate the clear division in characteristics between the home and transient fleets. The local fleet, with 107 boats currently registered in permanent stalls, is composed mostly of salmon gill netters in the 35 foot range and salmon purse seiners up to the 58 foot size limitation. One significant characteristic of the Sand Point fleet is its relative newness; over one-third of the boats have been built since 1978. This is a reflection of the prosperity of the salmon fishery over the past five years and reinvestment of that prosperity in significant equipment improvements. Very few recreational vessels use the harbor; at present including only two sailboats, a number of skiffs, and a few motor launches. 63 Transient vessels account for up to one-third of the boats in the Sand Point harbor at a given time. The average stay of these boats is about three months. They are typically crabbers or crabber/trawlers out of Seattle and the majority are in the 80 to 120 foot range. The boat population varies with the fishing seasons, the most crowded times occuring during the salmon season (late May through September) and at the end of the herring season (late spring). Community Fleet: Implications for Development With few exceptions, the Sand Point fleet is virtually unprepared for efficient fishing of the bottomfish resource available to them. The few exceptions are the crabber/trawlers which go out west during the crabbing season and, perhaps, soon will be going up to the Bering Sea to participate in joint venture fisheries for pollock, cod, or Yellowfin Sole. The majority of Sand Point boats are in the 35 to 58 foot class and are rigged for purse sein, gill-net or set-net fishing for salmon. It would be extremely perilous for these small boats to venture out into the North Pacific or Bering Seas. There are a number of halibut longline boats and these would come closest to satisying the gear requirements of cod fishing in and around the Shumagin Island Group. A small group of Sand Point fishermen did attempt to get a foot in the door with a local cod fishery but had no great success other than as a preliminary learning experience. It is highly unlikely that the character of the home fleet will be changed from within; the present equation of resources, costs and markets of the presently "underutilized" species does not balance in favor of the local fisherman. If larger boats were to ultimately fish and remain in Sand Point waters, these boats would probably originate from Seattle or Kodiak or Dutch Harbor. E. GENERAL INFRASTRUCTURE AND SERVICES 1. Water Resources and Use Sand Point's primary source of water is Humboldt Creek which is fed by a large drainage basin and natural springs and passes through the town into Humboldt Slough. This year-round water supply provides a quantity of water several times the present needs of the community. In Addition, there are a number of residences on a small spring water source near Popof Cove. Facilities in the airport vicinity the airport use a small stream as a source of water supply. The availability and quality of round water is largely unknown. While the present water systen reserve could accommodate a substantial growth in utilization in the immediate downtown/harbor area, additional water resources in the airport vicinity are a pressing constraint. 64 V NT POTENTIAL: GENE INFRASTRUCTURE VICE: The primary water supply is a reservoir behind a six foot dam across Humboldt Creek. This dam is currently being improved to increase the holding capacity of the resevoir by four acre-feet. From the dam, water is pumped into a water purification plant for clorination and then pumped into a storage tank on the hill to the north of town. The City operates one of the tanks, with a 100,000 gallon capacity, which was constructed by the Public Health Service (PHS) in 1976. The other tank, which is inoperable, is owned by Aleutian Cold Storage Company. The Company is considering the construction of a new water tank once the company has determined more exactly the future needs of its Sand Point plant. From the tank, water is transferred into the city water system which consists of a combination of very old company-built lines and a modern PVC pipe system installed by the PHS in 1976. At present, the water system is reported to be working very well. However, the system is now approaching its design limits, especially when Aleutian Cold Storage is operating at full capacity. With the additions to the dam and construction of a new company water tank, the system should be able to handle demands of the near future. Improvements will soon need to be made in the existing distribution system if development in Sand Point is to continue at the pace of recent times. The company portion of the system, being primarily constructed of wood stave pipes and more than thirty years old, is particularly in need of improvement. There is a 1.8 million dollar appropriation in the State FY 84 budget for the expansion of the water and sewer systems to cover the new school facility and surrounding Shumagin Corporation's "Meadow" subdivision. Any major processing facility setting up in Sand Point would be required to provide virtually an entire water distribution system to serve its specific water needs. The most recent Sand Point Comprehensive Plan (1981) recommends the acquisition by the City of the entire water system to ensure a measure of control in future developments. The City is now assuming control and ownership of those segments of the system constructed by the PHS, and the plan recommends that the City purchase that portion of the lines now owned by Aleutian Cold Storage. Additionally, the City would acquire right of way easements where the system now crosses private property. A consultant (CH2M HILL) has been hired by the City to investigate the availability of water resources in the airport area and, depending on the findings, to develop feasibility studies of accessing the water resource. This would include surface water and ground water in the airport vicinity, or in a more dramatic scenerio, an aquaduct system from the present reservoir to the airport area. 65 2. Sewer System In 1976 the PHS also implemented a new sewer system in Sand Point. This system uses a series of 8" gravity mains, which serve the north end of town, and a 4" force main with a lift station near the cannery, which serves the south end of town. Waste is pumped from the force main system to a point where materials gravity flow to the treatment plant located near Popof Cove. The treatment plant utilizes an aeration tank, a final clarification tank and a clorine contact chamber. From the treatment plant there is a 1,000 foot outfall line running in a southwesterly direction and discharging into Popof Cove. The sewer system is also operating at near capacity. It was designed to accomodate a community of 550 persons, with a per capita daily use of 120 gallons per person or about 70,000 gallons per day. Water utilization has not been maintained in Sand Point, but it is estimated by city planners to be about 50 to 80 gallons per capita per day. With a present potential population (including transients) of around 800 people, the upper range of anticipated waste water disposal would approach sewer design capacity. Another part of the system that needs upgrading are the pumps in the force main in the vicinity of the company facility. As this part of town becomes more densely populated, the load on the present system will eventually exceed capacity. There has already been one pump failure attributed to excessive loading. The Sand Point Comprehensive Plan recommends that the City purchase easement for sewer at the same time it is acquiring water system easements. 3. Power Electrical power is provided in Sand Point by diesel electric generation facilities built in 1948 and owned by the processing facility, now Aleutian Cold Storage. Although this system was originally installed for company use only, it has been extended to cover the entire needs of the community with the exception of the two seafood processors in the airport area which supply their own power. Aleutian Cold Storage presently operates two separate plants. Plant Number One, which serves the processing facility, consists of one 800kw diesel generator installed in 1978 with two 200kw diesel generators installed in 1948 used as back up. Plant Number Two, which serves the community, consists of two 500kw diesel generators installed in 1964 and 1969 and two 400kw diesel generators installed in 1975 and 1976. The two power plants are interconnected by a 1,000kva, 4,160 volt, three-phase underground transmission line and associated transformers. All generation is at 480 volts three phase. Power transmitted to the City is transformed to 2,400 volts and stepped down to 240 volts at its point of use. The distribution system consists of both underground and overhead lines installed from 1948 to the present. Peak demand is estimated to be 66 V! jT_P : G I STRUCTURE CE: about 1,500kw (600kw for the City and 900kw for the cold storage facility). While the power usage of the plant has remained constant at around 3 million kw/year, City power usage has increased steadily from 667,680 kw/year in 1972 to a present usage of 2.5 million kw/year. The Alaska Power Authority produced a study of alternative energy supply options for a number of Alaskan communities including Sand Point. After considering a number of energy production options, that study arrived at the following recommendation with regard to Sand Point: ",..centralized diesel generators (should) continue to _ supply electricity to Sand Point." wind generated power should be further investigated for its potential application in Sand Point "(I)f the appropriate type and size of wind generator proves itself in the Alaskan environment and becomes commercially available...". A processing facility setting up in Sand Point at this time would be required to provide its own electrical generation; the typical mode of operation for industrial sites in remote regions of Alaska. 4. Housing There is virtually no housing vacancy in Sand Point. The 1980 census performed by the City indicated 171 households, mostly single-family units, with an average of 3.4 individuals per unit. Of these units, 94 were single family homes, 33 were apartments, and 47 were mobile homes. A similar census in 1982 indicated an overall increase of only three units. As elsewhere in Alaska, there has been an increase in the proportion of house trailers as home financing becomes more difficult to obtain. A shortage of local building contractors also contributes to the increase in mobile homes. There have been several multiple-family dwelling units built in recent years, the largest being the Westview Apartment complex on the hill above the town processing facility. Aleutian Cold Storage operates a bunkhouse for its fish processors which accomodates approximately 80 workers during the summer months and Peter Pan Seafoods has group quarters which accommodate around 20 people. Finally, according to the 1980 city survey, there were 44 boats in the harbor serving as a place of residence for a total of 109 people. In 1982, there were 61 "residence" boats at the time of survey with a total of 161 people living on them. Both of these tallys indicate an average boat occupancy of about 2.5 people per boat. The actual situation is better characterized as many boats with a single person on board and a number of larger boats with four or more residents on board. 67 The quality of existing housing in Sand Point varies from poor, particularly in the Little Sanak area of town, to quite good. There are two new residential subdivisions, Humboldt Harbor Estates and Mountain View Estates, which have been developed along the ridge on the main road. These subdivisions are made up of single family dwellings and are in excellent condition. Another new subdivision on the northeast side, funded by HUD consists of eleven single-family units. The most ambitious subdivision plans are those of the Shumagin Corporation. The Corporation contracted R & M Consultants to provide design and cost analyses for a "Meadow" subdivision that could eventually include some 225 units at the north end of town. Were this project to be developed, it would handle the largest part of Sand Point's needs for housing over the next twenty years. Many of lots in the subdivision have already been sold and the City has received a number of building permit applications for these sites. Additional homes could also be placed on many of the approximately forty vacant lots scattered throughout the developed community. 5. Communications The present phone system was installed in Sand Point in 1969 by the Wakefield Fisheries Company for the use of the community as well as its own use. This system is now operated by the Interior Telephone Company and employs a satellite hook-up which pemits direct-dial service with points outside of Sand Point. The community also receives television programming via the same satellite communications system. Notices and items of community interest are superimposed on the audio track of television programming during commercial breaks. 6. Hotel/Motel There is only one motel in Sand Point that offers accomodations for the traveler. The Anchor Inn is located near the Cold Storage facility on the main road and offers basic two and three-bed rooms with a total capacity of about 25 guests. The Shumagin Corporation has very tentative plans to build a hotel in town to be operated in conjunction with a shopping mall. There is also only one restaurant/bar in Sand Point. The restaurant has been open on an intermittent basis with frequent changes of management. The Anchor Inn does provide a very simple kitchenette area in some of its rooms for the practical traveler. 68 vi NT POTENTIAL: GE I T! ERVICES 7. Transportation Transportation is a critical aspect of life in a remote community like Sand Point. Being located on an island, Sand Point has no road connections with the rest of Alaska. There are scheduled air and sea services; each has its own constraints and opportunities. For transportation costs see the related discussion under "General Cost of Doing Business" on page 42. The most frequent means of scheduled travel to Sand Point is provided by Reeve Aleutian Airways which flies from Anchorage to Sand Point on Monday, Tuesday, Thursday and Friday (schedule may vary for a number of reasons) using YS-11 aircraft with a capacity of approximately 32 passengers. Reeve flights average about 15 Sand Point bound passengers and four to five thousand pounds of freight arriving per flight. Only about 12 flights a year are cancelled. Minimums are 800 foot ceiling and 1 mile visibility. Reeve would like to obtain more land for terminal and apron space. The company has been engaged in negotiations with Peter Pan seafoods over land and is now pushing the State to condemn some of the processor's land for the purpose of needed improvements. Recently installed distance measuring equipment has increased the reliability of flights during harsh weather conditions common to this area. Sand Point experiences a good deal of non-scheduled air traffic, including two air taxi services, Sand Point Air Service and Anchorage Air Service, which operate out of the community. Sand Point's airport is a State-owned facility with a gravel surfaced runway 3,800 feet long and 150 yards wide, running in a_ general north/south direction. The runway is restricted in width by the presence of the beach on one side and a rock bluff on the other. The face of the bluff at the north end of the runway was cut back to enable the YS-11 to turn around more easily. The community has received funding from the State for a study on possible realignment and extension of the present runway to over 5,000 feet. Such an extension would permit 737 commercial jet traffic into Sand Point, greatly improving service and providing a more efficient method of cargo transportation, both into and out of Sand Point. Such a linkage could be critical to the siting of a future fish processing industry. The findings findings of that study indicate a required funding level of between 20 and 25 million dollars. More detailed engineering analysis is required to establish firm costs, financing mechanisms and project scheduling. Sand Point is served by a number of sea transport firms which make regular stops, at approximately two-week intervals, at the communities out the Aleutian Chain. The bulk of all freight is containerized and is 69 taken off ships at the City dock for further distribution. The Alaska State ferry makes a several trips to Sand Point between late spring and early fall. Chevron, out of Valdez, provides oi] tanker service to Sand Point several times a year. The construction of the new city dock on the Humboldt Harbor south breakwater has greatly facilitated the movement of goods into the community. There are tentative plans to extend the Alaska Marine Highway system out to the Aleutians with more regularly scheduled services, perhaps as often as once-a-week. However, the prospects of this concept becomming a reality are not particularly good. Regarding local road transporation, there is there is a taxi service operated by the manager of the Anchor Inn which provides service between the airport and town. All other transport is in personal vehicles; many are 4-wheel drive types to allow for Sand Point's occasionally rugged roads. The general road system was recently re-graded and resurfaced with gravel. 8. Banking Full-service banking services became available in Sand Point in the fall of 1981 when a branch of the Alaska State Bank opened its office in the building operated by the Aleutian Commercial General Store. The bank is open during nomal working hours. 9. Medical Services A new 3,400 square feet medical clinic was finished in September, 1982. PHS medical and dental personnel travel to Sand Point on a twice-a-year basis. A half-time nurse and physician assistant are employed in the clinic to handle less than critical situations and the Coast Guard may be called upon to provide emergency medical transportation should the need arise. The new medical facility includes an emergency room, examination rooms, laboratory, pharmacy, X-ray room, conference room and other standard medical space. 10. Fire Protection Although Sand Point has an organized volunteer fire department and recently purchased a second fire truck with State funds, there is still considerable risk of a major fire breaking out in the community. The fundamental problem is the lack of an adequate hydrant system throughout the community. Many homes are now accessible only by boardwalk or 70 DEVELOPMENT POTENTIAL: GENERAL INFRASTRUCTURE AND SERVICES narrow trails across private property. Therefore, fires in these areas must still be dealt with by hand-held extinguishers. Wood frame construction and typically high winds in the Sand Point area are other factors which place Sand Point in a higher risk category for fire hazard. 11. Police Until the last few years, law enforcement was a potentially serious problem in Sand Point. The nearest State Trooper was based in Anchorage and townspeople simply had to wait for the arrival of an arresting officer in the event of a serious crime. Sand Point now has a State Trooper based in town, who also serves several other communities in the region. The City also employs a Public Safety Officer with duties including law enforcement as well as public safety activities. In that person's absence, the State Fish and Game Warden or the new Harbommaster may act in his behalf. The City maintains a two-cell jail in the vicinity of the City offices. 12. Schools The Sand Point school building was built in 1952 and initally offered classes for grades one through eight. Additional classes have been added over the years, and now Sand Point offers education from kindergarten through high school. Sand Point is a city school, independent from the Regional Educational Attendance Area, and the community selects its own school committee of three to five members. School attendance has been running at about 130 students per year, Kindergarten through high school. The present school facility with 19 classrooms, including the library, is over-crowded, and it is expected that there will be an increasing demand over the next years as the community population continues to grow. State funds granted in 198] will allow the community to construct a new high school on a site north of town and expected to open by fall of 1983. The old school buildings May then be taken over as office space for the City, Shumagin Corporation, and possibly other interested agencies. Sand Point participates in the Community College system and the school facilities are used during the evening hours to provide extension courses and adult continuing education courses as well as general community meetings and work shops. Recreational facilities attached to the school are considered to be poorly lacking. The proposed design for the new school facility provides for a 25-acre site surrounding the building with adequate recreational equipment. 71 13. Other Services The State Department of Fish and Game has offices in town with two to six employees, depending upon the season. Religious services are offered by several churches of the protestant faith. Aside from the postal service, there are no federal agencies located in Sand Point. 14, Recreation There are few sources of organized entertainment and recreation in Sand Point. The school offers some recreational programs to the community. Cruising the countryside on three-wheel Hondas is one major outlet for the community's youth. For adults, there is a movie house with infrequent showings and the town's single bar/restaurant. Shortage of entertainment is not unusual in smaller towns and locals generally find their own means of occupying free time. Many residents travel outside to Anchorage or Seattle and take extended vacations during the off-season. Transients, however, tend to have a more difficult time in a strange town without some organized offerings of entertainment to pass the time on shore. 15. General Infrastructure: Implications for Development Water. The expanded city water reservoir provides a source of water adequate to most development scenerios envisioned for the "downtown" area, including moderate-sized new processing facilities and continued rapid population growth. However, a new rocessing facility would be required to provide a substantial distribution system in shee to tie into e@ existing network. A processor establishing a site on the eastern side of Humboldt Slough or around the proposed new harbor site would have to provide at least for new line systems for the transport of water from the present system to the planned site and, perhaps, might be required to provide for an entire pumping/storage/line system from the city reservoir. The Aleutian Cold Storage Company Company indicated that they would like to build an approximately 150,000 gallon water tank to replace a presently non-functioning tank. This would accomodate any foreseeable expansions of the Aleutian Cold Storage facility. The Norwegian firm, Jangaard, during a period of negotiation for a possible salt cod facility site, stated that their proposed shore-based salted cod operations would require only a “hand full" of fresh water, For clean-up. 72 DEVELOPMENT POTENTIAL: MUNICIPAL CAPACITY There is very little surface water in the airport-spit area available for further development. A new processor in that area would probably be required to drill for water. City officials have indicated a desire to acquire the existing water system in Sand Point. Future additions to the water system wouta then be required to comply with a comprehensive city plan. Sewer. The present system is working at, or somewhat beyond, design Timits. Any new processing facility in Sand Point would either have to provide independent waste management, or would have to work with the City to provide the necessary improvements in community waste treatment and disposal facilities. As the present treatment and disposal site is located in Popof Cove, a new facilities located to the east of Humboldt Slough would have s be provided with pumping facilities and Tift stations to access the existing system. With continued commercial and industrial growth on the eastern side of the slough, it might be appropriate for the City to build and operate a separate treatment facility in that area. Power. Any new processing facility would be expected to provide its own power. The existing community power system could absorb the growth in population that would result in the establishment of a new processing facility in Sand Point. Housing. Assuming that the Shumagin Corporation's phased housing ivision project is successful, there should be few housing problems in Sand Point for the next twenty years. It is assumed that the City would permit the concept of a bunkhouse type structure in the vicinity of any new major fish processing facility to accomodate transient workers. Transportation. Improvements in runway length and alignment need to be made within the next few years, permittin jet traffic to utilize the airport. Such an improvement would greatly enhance the deve Topment prospects for Sand Point. The funding for this project (around $16 million) remains very much in question given the increased requirements of fiscal restraint by State decision makers. F. MUNICIPAL CAPACITY 1. General Description of Government Sand Point incorporated as a Fourth Class City in 1966, was reclassified to a Second Class City in 1972, and in 1977 was finally reclassified as a First Class City. Sand Point operates under a Council/Manager form of government comprised of a city manager, a six-member council, and a mayor. The City also has the services of a city planner who, like the 73 city manager, lives in Anchorage and divides his work effort between the neighboring communities of Sand Point and King Cove. The City also has a five-member planning and zoning commission which makes decisions on all matters concerning planning, platting and zoning within the City limits. The following powers and services have been adopted by ordinance and are presently being exercised: Boat Harbor (Harbormaster ) Fire Protection (volunteer Fire Chief) Police Protection (State Trooper ) Road Maintenance Sewer Utility Water Utility (with Pelican Company) Medical Clinic (Physician Assistant) Public School The City will also provide assistance in solid waste removal when an appropriate vehicle is acquired. The City of Sand Point employees include the City manager, City Planner, a city clerk, a physician's assistant, the Harbormaster, a Public Safety Officer, maintenance employees for the utility system. The city planner position was originally funded in part by the State (approximately 25%) but these costs have now been entirely assumed by the City. The City's actual general finances for FY 82 (excluding capital projects) are summarized in Figure Thirteen: Figure Thirteen SAND POINT FY 82 GENERAL FINANCES Revenues Expenditures Sales Tax $281,675 Council $ 15,226 Rentals 9,319 Administration 87,404 State Processors Tax 81,793 Planning & Zoning 38,241 Bond Issue Fee 19,811 Public Safety 318 Federal Revenue Share 19,811 Volunteer Fire Dept. 6,635 St. Mun. Rev. Sharing 272,090 TV Station 406 Grants 368,738 Health Care/Clinic 7,500 Interest 45,685 Other 100,011 Other 2,571 City Maintenance 154,171 Total Revenues $1,081,682 Total Expenditures $863,538 Source: City of Sand Point, 1981 74 DEVELOPMENT POTENTIAL: MUNICIPAL CAPACITY The above figures do not include the finances of capital projects. At the time of the above accounting, the City was in the midst of a number of capital projects, including dam improvements, a new clinic, a boat lift, major road repairs, and a new school facility. The City has established an FY 83 operating budget at $738,200. Generally speaking, the City of Sand Point is in good financial condition. The City's full value assessed valuation is $55,250,000 (1982), $69,500 per capita. The only tax levied by the City is a 2% general sales tax. The City does not charge any form of property tax. Aside from State grants which may vary greatly from year to year, the largest portion of City revenues are directly attributable to the existence of a seafood processor in town. This includes the sales tax levied on all transactions involving fish that are processed in the Sand Point facility; a rebate to the city of a portion of the State Fish Processors Tax which the Aleutian Cold Storage facility pays to the State; and fees for harbor use. The rebate to the City from the State Processor Tax amounts to 50% of the tax which the processor has paid to the State, currently assessed at 4% of total production value. Due to recent legislation, this rebate was increased from 20% to 30% in 1981 and finally to the present 50% level in 1982. There is a lag time of up to a year before the City receives these monies back from the State. The local processing facility has operated at a stable level of production over recent years and that level of production should be maintained, at least, for the next five years with a possibility for some moderate increase in production. Another large portion of the City's revenues is received in the form of federal and State revenue sharing funds and general grants from Federal and State agencies. This source of funding may vary considerably from year to year. There are indications that the federal revenue sharing program may be sharply reduced and possibly deleted from future federal assistance programs. A third elected body which has played an important role in Sand Point's development is the five-member school board. Local control of the schools was a driving factor behind the 1979 community election to incorporate as a first-class city. There is also an elected health board consisting of seven-members which has been instrumental in the development of the new health clinic. 75 2. Planning Capability The City of Sand Point has maintained a city planner position (shared half-time with nearby King Cove) since mid-1980. This position was originally funded by a State planning grant, but has since become entirely funded by the City itself; an indication of the high value which the community places on these services. In the several years that the planner has been assisting the community, numerous major capital projects have been successfully completed; the City Comprehensive Plan has been updated to reflect the community's rapid development; The Overall Economic Development Plan (OEDP) has been updated; a capital improvements program has been refined; and a major study involving harbor development and marine related activities was undertaken. The membership of the City Planning Commission includes the Harbormaster, a staff member from the Aleutians East. Coastal Resource Service Area, a housewife, a local businessman and a fisherman. The Planning Commission functions are of great importance to Sand Point as the City moves to expand its role in the operation of the community, and particularly in providing a _ realistic assessment and efficient implementation of the broad harbor and marine related facilities program. The Planning Commission has served in the past in the role of an Overall Economic Development Plan (OEDP) committee. That committee has been largely responsible for the development of capital projects such as dam improvements and a medical clinic, and were also involved in initiating major projects to improve the present airport runway and to provide the community with a new public dock. 3. Capital Improvements Program (CIP) The OEDP committee is responsible for producing and annually revising a 5-year capital improvements program. This plan is currently being revised and not yet released for publication. The up-dated plan includes the following Goals and Objectives which were developed by the OEDP committee, public hearings during City Council meetings, and the present city planner: Goal: Develop or improve physical features in the City and its public facilities to insure health, safety and welfare of the community. Objectives Existing road and walkway system (improvements, expansion and traffic flow, easements, access, parking, speed limits...) 76 DEVELOPMENT POTENTIAL: ICIP. Runoff and drainage problems (how to minimize Housi (designate suitable building areas, pot Recreation (parks, tot lot, scenic vistas...) Solid waste system (land-fill, junk autos...) Utility systems (map and upgrade, removal of old wires and poles, future sewer and water) Preservation of cultural and historic values of Sand Point (old church, petrified forest...) Fire protection system (hydrant capabilities, fire department) Potential for additional commercial development Communication and transportation facilities To expand and diversify economic development. (Objectives continued) and stabilize ential hazards) Street lighting (improve existing, new) and industry Additional school facilities Goal: Objectives: 1. Apply for federal and State grants or loans to develop public dock, marine warehouse, and fuel storage tanks, etc., to support the local fish processing plants diversify their business onto other markets of the fishing industry. 2. Pursue State grants or loans to construct entertainment businesses to provide community recreations as well as new areas of employment. 3. Encourage diversification of fishing oriented businesses such as seafood product reduction plant. 77 The following is a list of projects which the community has identified in priority as a part of the OEDP and CIP activity: e° Water/sewer expansion to serve new school and _ housing development in the Meadow subdivision area northeast of the town center. ° Extend airport length to accommodate jet traffic. ° Construct wharfage facilities to serve new public dock. e Construct a vessel repair facility to accommodate boat haul-out operations. ° Assist in development of new housing projects (i.e., HUD programs, designation of land use categories for housing, and extension of services). ° Road improvements to upgrade and extend into developing areas and provide all lots with public access. e Promote health services through provision of equipment for new clinic, increased personel]. e Support and assist the expansion of competitive commercial services (i.e., repair shops, dry goods, recreational, restaurant, etc. ° Improve fire protection through support of fire department and fire hydrant installation. 3. Municipal Capacity: Implications for Bottomfish Development Sand Point is a financially sound community. During the recent period of rapid population and physical growth, governing institutions have proven themselves to be very responsive to the expressed concerns of the general populace. In the last fifteen years, the community of Sand Point has gone through a transition from an unincorporated “company town", to its present status as a First Class City. The rapid growth and change in Sand Point has evolved a highly motivated citizenry which is sensitive to the political utility of its local government and which has elected City officials who reflect a desire for continued manageable development. Sand Point depends entirely on fisheries activities for its economic base; hence, the stability or progress, or decline, of this community is directly linked to the year-to-year fate of the various regional fisheries. 78 DEVELOPMENT POTENTIAL: MUNICIPAL CAPACITY While the prospects of a dramatically expanded bottomfish industry have somewhat dimmed, the City has maintained a commitment to diversify the economic base into as broad a spectrum of fisheries activities as possible. The City clearly wants to be in a position to take advantage of change and to bring about change, rather than to merely wait and react to the changing times. The City now employs both a City Manager and a City Planner to assist them in this goal. Indications from City officials are that the city's planning services have been of great value to the community in setting its course over the coming years. The experience and technical support provided by these positions form a strong basis for the City Planning Commission to further detail capital improvement programs pertaining to the general community infrastructure. 79 80 — GONGCLUSIONS —— DETERMINANTS OF FUTURE GROWTH The foregoing discussions have presented many of the aspects of the community of Sand Point. Future economic growth in Sand Point will depend largely on the outcome of a number of key determinants. However, at the outset of this summation, it should be noted that there is one key factor which demands primary consideration: the desire of the community for manageable growth. In a recent survey of the community's attitude towards residential, commercial and industrial (fisheries) growth, the people of Sand Point overwhelmingly indicated that they were more than receptive to development and enterprises which would spur the community's overall growth and economy. The community has made a commitment to improving the physical character of the city and public services which it offers. To accommodate these improvements the community is determined to expand and diversify economic development in Sand Point. Many other determinants will play an important role in Sand Point's future growth. The most significant of these are: - whether the City is resumes its pursuit of a new boat harbor in conjunction with the Amy Corps of Engineers; - the location, scale and configuration of that new boat harbor if it is built; - whether the Aleutian Cold Storage Company (Pelican) will follow through with efforts to divest the company of its non-processing functions (i.e., water, sewer, power); -the development of a capital improvements program which realistically reflects the appropriate development of the new boat harbor; - the trend in measured fish stocks and consequent allowed catch of the various traditional fisheries species (i.e., salmon, halibut, crab, shrimp); - the actual extent and quality of bottomfish resources in the areas important to fishermen and fish processors in Sand Point; - whether more economical marine transportation partnerships will eventually be pemitted through partial Alaskan exemption from the Jones Act; - whether the airport is re-aligned and lengthened; - whether adequate sources of ground water can be found in the airport vicinity; 81 - whether the City can attract a large enough portion of the transient fleet service market by expanding its marine related facilities; - whether local fish processing capacity can be expanded feasibily (e.g., by means of multi-species processing operations including salted cod); - the success of Shumagin Corporation's housing development; - improvements and additions to the City (and Aleutian Cold Storage Company) water and sewer systems, and the City's success in efforts to obtain easements/ownership of utility related lands; - the scale of development of the Unga Island mining operations; - potential use of Sand Point as a staging area for a possible OCS cross-peninsula pipeline at nearby Balboa Bay; - the broad regional affects of OCS development (i.e., possible oi] spill, competition for the labor market); and - the continued cordial relationship between the City, the Company (Aleutian Cold Storage) and the Corporations (Shumagin, Aleut Regional). Any planning efforts to develop a major industry in Sand Point should consider, at least, the above major factors influencing future economic growth of the community. 82 BIBLIOGRAPHY Alaska. Artic Environmental Information and Data Center, 1974. Alaska Regional Profiles; Volume III; Southwest Region. Anchorage, Alaska. Alaska. Department of Commerce and Economic Development. Alaska Power Authority, June 1981. Reconnaissance Study of Ene uirements & Alternatives for Akhiok, ae Cove, Larsen Bay, ord a Re Harbor, Ouzinkie, Sand Point. Anchorage, ska. Alaska. Department of Community and Regional Affairs, September 1979. Community planning & Development for the Bottomfish Industry; Phase One Report. Juneau, Alaska. Alaska. Department of Community and Regional Affairs, July 1976. Marine Services Bases For Offshore Oil Development. Juneau, Alaska. Alaska. Department of Community and Regional Affairs, 1978-83. State Revenue Sharing Applications; City of Sand Point. Juneau, Alaska. Alaska. Department of Fish and Game, 1966-82. Alaska Catch and Production; Commercial Fisheries Statistics. Juneau, Alaska. Alaska. Department of Fish and Game, 1977. A Fish and Wildlife Resource Inventory of the Alaska Peninsula, Aleutian Islands and Bristol Bay Areas. Juneau, Alaska. Bomhoff & Associates, Inc., June 1977. City of Sand Point Comprehensive Plan. Anchorage, Alaska. DMJM Forssen/Tetra Tech, Inc. (prepared for the Department of Transportation and Public Facilities), June 1980. Aleutian and Southwest Alaska Coastal Ferry Study. Anchorage, Alaska. Institute of Social and Economic Research, April 1980. Measuring the Socioeconomic Impacts of Alaska's Fisheries. Anchorage, ATaska. R & M Consultants, Inc./TAMS Alaska, December 1, 1981. Sand Point Harbor Master Plan. Anchorage, Alaska. Sand Point, City of, January 1981. City of Sand Point Community Comprehensive Plan. michovage, Alaska. U.S. Amy Corps of Engineers, September 1979. Aleutian Islands and Lower Alaska Peninsula; Debris Removal and Cleanup; Draft EIS Appendices. Anchorage, Alaska. U.S. Bureau of Land Management, Alaska Outer Continental Shelf Office, October 1982. Technical Report Number 71: Alaska Peninsula Socioeconomic and Sociocultural Systems Analysis. Anchorage, Alaska. 83