CITY OF HOMER

HOMER, ALASKA

Mayor

RESOLUTION 03-85(S)

A RESOLUTION OF THE CITY COUNCIL OF HOMER, ALASKA RECOGNIZING AND SUPPORTING THE KACHEMAK OYSTER INDUSTRY AND ITS GROWTH IN HOMER.

WHEREAS, Kachemak Shellfish Mariculture Association (KSMA) is a non profit arm of Kachemak Shellfish Growers Co-operative (KSGC), and are both composed of the same thirteen member farms; and

WHEREAS, KSMA has applied to ADCED for funding from the Salmon Industry Revitalization Funds; and

WHEREAS, The envisioned project is a facility on the Spit to hold and process oyster and some mussel shellfish; and

WHEREAS, The co-op will become much more efficient in meeting market demands if they have a facility with a live holding tank that can be used to stage movement; and

WHEREAS, It will improve shelf life, increase profitability of harvesters by reducing unneeded harvest trips and allow centralized quality control of the product; and

WHEREAS, Other benefits will include having a retail space near a high traffic area, the possibility of eventually purchasing a mechanical sorter/packer, an educational space and a visible home to the area's industry; and

WHEREAS, The KSBC/KSMA is seeking funding to allow the oyster farms to become more productive; and

WHEREAS, Infrastructure investment that allows the twenty five aquatic lease sites to produce and harvest efficiently could create an industry that generates over one million dollars per year based on present returns to the most productive farmers; and

WHEREAS, Kachemak Bay is perhaps the only place in the state where shellfish mariculture has become a viable industry; and

WHEREAS, The rest of the state's oyster production has slowed, while KSGC revenues have grown by an average twenty percent per year in the last five years; and

WHEREAS, Access to the road system, and Ted Stevens International give KSGC the highest potential for growth among Alaskan shellfish producers; and

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Resolution 03-85(S)

City of Homer

WHEREAS, Kachemak Bay Oysters are a regionally branded product with potential for growth in the US and international gourmet markets; and

WHEREAS, They are a year round seafood product and add to the attractiveness of Homer to visitors; and

WHEREAS, Thirty percent of the product is resold within fifteen miles of Homer, adding to the local economy; and

WHEREAS, The vertical integration of KSCG has benefitted its participants, and farmers receive over half of the retail price of the oysters in Anchorage supermarkets, which compares very favorably with any other fishery in the state; and

WHEREAS, There are currently twenty five lease sites in the Bay, which, if fully utilized, would create twelve more small businesses, usually mom and pop, and at least one part time labor job per farm; and

WHEREAS, The Homer City Council has adopted various resolutions on other subjects such as the Mineral Management Service Oil and Gas lease sales that have indicated support of mariculture and the shellfish industry; and

WHEREAS, Mariculture is addressed in t he City's Overall Economic Development Plan and Oyster farming has little bottom impact.

NOW, THEREFORE, BE IT RESOLVED that the City Council of Homer, Alaska recognizes and supports the Kachemak Oyster Industry and its growth in Homer; and

BE IT FURTHER RESOLVED that the City Council encourages any development accomplished through these grants to be done in accordance with the Comprehensive Plan..

PASSED AND ADOPTED by the Homer City Council this 9th day of June, 2003.

CITY OF HOMER

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ATTEST: JACK CUSHING, MAYOR

MARY L. CALHOUN, CMC, CITY CLERK

Fiscal Note: NA.