The Petersburg borough assembly on April 20 unanimously approved a tidelands lease for American Cruise Lines, which plans to build a cruise ship dock for its small passenger ships to tie up in town.

The company earlier this year negotiated a tidelands lease in Wrangell, with similar plans to put in a floating dock downtown to accommodate its 170-passenger ships on overnight stays.

Petersburg will lease tidelands next to the U.S. Coast Guard dock to the company, which will build a mooring float and gangway to support its operations.

Harbormaster Glorianne Wollen said the project is a good use of Petersburg’s waterfront.

“I’m in the business of tying boats up and anything that we can do to enhance the waterfront for watercraft, I think is a benefit,” Wollen told KFSK in an April 21 interview. “That’s a segment of our marine industry that allows us to diversify a little bit.”

There are still more details to settle before construction can start. American Cruise Lines will have to provide plans for its project to the borough and work through the plans with the harbor department, according to the borough manager and the harbormaster.

There are a number of safeguards for the borough set in the lease, such as making clear the borough is not responsible for maintenance of the dock.

Wollen said the dock limits itself because it is going to be small. She also said Petersburg would see a drastic decrease in overall tour boat traffic without the company’s presence.

“Thank goodness they’re here and they’re willing to put some real money into Petersburg. I mean, this is a commitment,” Wollen said. “This company is really putting their money where their mouth is and investing in our community and plan a long-term relationship.”

The lease lasts 50 years, with five-year renewal cycles. The starting rent is 10% of the tideland’s appraised value, which works out to $9,550 annually.

According to the lease, which takes effect May 1, the dock should be completed within two years. But throughout the process, officials with the company and the borough have consistently mentioned the goal of having the facility ready sooner.

“Hopefully we’ll have this in place and ready to go for the 2027 season,” Borough Manager Steve Giesbrecht said during the April 20 assembly meeting.

Discussions about the dock began in 2024.

American Cruise Lines is also trying to build docks for its vessels in other Southeast communities as part of a regional expansion. Its passenger ships stopped in Petersburg more frequently last year, but there were space constraints. Wollen said the dock would help ease congestion, especially during the summer cruise season.

“Kind of a relief on our end, that I’m going to be able to attract the (commercial fishing) tender fleet again and not be so rigid with them ... which I think will be beneficial to the entire commercial fishing fleet,” said Wollen.

There are 85 tour boat port calls scheduled for Petersburg this summer, and American Cruise Lines counts for 31 of them.

This story was first published at kfsk.org and is reprinted with permission