Kodiak shipyard losing money, higher rates likely

KODIAK — Higher rates appear likely for users of Kodiak’s city-owned shipyard because it continues to lose money.

The 3-year-old shipyard lost more than $300,000 in the last fiscal year, and now the Kodiak Port and Harbor Advisory Board has agreed that rate increases are needed to balance the books, the Kodiak Daily Mirror (http://is.gd/PQxoLb) reported Wednesday.

Kodiak’s shipyard is considered a do-it-yourself operation where the city provides space for ship owners to work on their boats using contractors based in the city.

The rate increase discussion came Tuesday as harbormaster Marty Owen presented the harbor department’s fiscal year 2012 report. The harbor department operates the Kodiak Shipyard and the harbor department under separate accounts, but the shipyard has repeatedly run in the red since it began operations in October 2009.

According to financial records provided by Owen, the shipyard posted a loss of $302,000 in fiscal year 2012, which ended June 30. In the previous fiscal year, the shipyard lost $281,000.

During the same period, the number of boats using the yard rose from 49 in to 54.

Erasing the deficit and making the shipyard self-supporting would require doubling the shipyard’s rates, deputy harbormaster Lon White said.

The shipyard now charges $2.20 per foot per day for boat storage. Board member Stormy Stutes said doubling that fee wouldn’t be unreasonable.

“If you doubled the rate, I’m serious, it’s not prohibitive,” he said.

The board asked Owen to draft a stair-step proposal where fees for various services would be raised over a set period until the shipyard breaks even.


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