Assembly adopts port fees extension

Local cruise industry representatives spoke out Monday against a resolution extending the Port Development Fee without a specific plan detailing the use of the tax.

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"We support the $3 fee with some caveats," said Don Habeger, the regional vice president of Royal Caribbean Cruises. "At this point there is no project planned."

Nevertheless, the Juneau Assembly adopted an amended form of the resolution collecting $3 per passenger that cruise lines bring to Juneau. The extended tax now exempts vessels under 200 tons, which comprise several small cruise lines.

Assembly member Jonathan Anderson also proposed an amendment to the tax that calls for the projects funded by the fee to "benefit all payers" including those who tie up at private docks.

The resolution passed 6 to 3.

City Manager Rod Swope said the funds gathered by the tax can be used for repairs as well as future development.

Drew Green, the Juneau port manager for Cruise Line Agency of America, said the fee was a classic example of the cart getting before the horse. The existing money should be used first, he said.

According to Green, the city has approximately $18 million in unallocated fees collected since the completion of the Steamship Dock Project the fee was originally created to fund. Juneau is already one of the most expensive ports in the world, he said.

Port Director John Stone said the repair backlog stood near $15 million.

"There is no shortage of projects," he said.

Habeger told the Assembly that port fees collected from private docks and spent on projects that benefit only public facilities could cause legal problems for the city.

• Contact Greg skinner at 523-2258 or greg.skinner@juneauempire.com.