Sitka Assembly to decide whether to extend Arctic Blue Waters' bulk water export deal

The Sitka Assembly will decide Tuesday, Oct. 13, whether to extend Arctic Blue Waters Alaska Inc.'s agreement to buy raw water for export from the Gary Paxton Industrial Park. The agenda doesn't say how long an extension the company is seeking or on what terms, and notes the Assembly may go into executive session.

The meeting packet includes a 45-day cure letter, a notice that gives a party a set period to fix a problem under a contract.

The 2021 agreement requires Arctic Blue Waters to export at least 50 million gallons within 60 months, or Sitka may end the deal, according to board records. It also required designs for a bulk water loading facility within 48 months. The agreement caps withdrawals from the borough's Power House After Bay at 33.6 million gallons a day. Sitka holds permits to export about 9.5 billion gallons of raw water a year.

The company has received an extension before. The Gary Paxton Industrial Park Board recommended one in 2025, and the Assembly approved it that July so Arctic Blue Waters could keep developing a loading facility, according to an August 2025 board packet. The company was still working with city officials on a loading plan at the time. Board records also show the company missed a deadline for a $100,000 payment tied to additional water rights.

The Assembly meets at 6 pm Tuesday, and residents may comment on agenda items.