KETCHIKAN (AP) -- The Ketchikan Gateway Borough Assembly agreed to back $5 million in bonds for the Alaska Ship and Drydock.
Alaska Ship and Drydock is pursuing a contract to renovate the National Oceanic and Atmospheric Administration research ship Fairweather.
The Borough voted 5-1 to approve the bond guarantee at its Monday meeting. Assemblyman George Lybrand cast the lone vote against the proposal.
Alaska Ship and Drydock operates the Ketchikan Shipyard under an agreement with the Alaska Industrial Development and Export Authority.
The five-year agreement, which was to have expired July 15, required the company to pay $1,500 per month to AIDEA and share its profits with the state agency.
Jim McMillan, deputy director for AIDEA, said the state agency has received no profit-sharing revenues from the shipyard since the arrangement began in 1997.
The AIDEA board voted in June to extend the agreement for three months while it negotiates a lease or sale to a Ketchikan municipal government.
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