On July 31, 1998, at 1331 Alaska daylight time, an Aeronca 15AC, float equipped airplane, N1083H, sustained substantial damage when it collided with an unoccupied storage shed during takeoff from the Lily Lake Seaplane Base, Kodiak, Alaska. The solo commercial pilot was not injured. The flight was operated by Cub Air, of Kodiak, under 14 CFR Part 91 as a positioning flight to pick up passengers. Visual meteorological conditions prevailed at the time of the accident, and a company flight plan was filed. The pilot told the NTSB investigator-in-charge on July 31, 1998, that the gusty crosswinds and wind shifting from a headwind to a tailwind forced the plane onto the water without sufficient distance to stop before colliding with an obstacle on the shore of the departure end of Lily Lake. He stated that the engine was operating normally, and that he should have taken off to the northeast, instead of southwest, on the 2,100 feet long by 300 feet wide seadrome. In his Pilot/Operator report, the pilot described the winds shifting from a headwind to a tailwind during the takeoff run. He further stated in this written report that he delayed his departure approximately one hour due to the crosswinds, but should have delayed longer until better, stabilized, winds prevailed. The pilot said that after settling back to the water during the takeoff run, the airplane became airborne again, and while attempting to climb over obstacles, lost altitude and airspeed, and struck a shed in the departure path. Wind conditions at Kodiak International Airport, five miles southwest of the accident site, about the time of the accident, were reported to be from 300 degrees at 12 knots. The pilot described the winds at Lily Lake to be variable, at 10 knots gusting to 20 knots. The runway for the Kodiak Municipal Airport is located at the immediate northeast end of the lake.