PORT TOWNSEND — Port of Port Townsend officials are wondering how to pay for the replacement of the aging AB docks at the Boat Haven Marina.
While taking steps to begin work on the dock late this year, port leaders are unsure how the agency will pay a bond debt at a time when revenues have declined and moorage rates increased by 3 percent — rather than an originally requested 5 percent — last year.
The $5 million project to redesign the marina with 144 slips has been in the planning stage for about two years. A citizens committee, which includes marina users, has advised the port.
“Staff is ready to recommend proceeding with the AB Dock project, but we are unsure we can cover the debt without cutting elsewhere,” said Jim Pivarnik, port deputy director.
Lower payments?
While it has been figured that the port’s bond debt would come to about $400,000 a month, port officials said it is possible that payments could be lowered initially to $250,000 for two years.
Pivarnik and other port executives recommended that the port consult with financial adviser Alan Dashen to put together a bond package.
But port commissioners were already pondering an increase in moorage rates to help pay for the dock replacement.
“We’re going to have to raise moorage rates if we’re going to see AB Dock fly,” said longtime Commissioner Herb Beck.
Despite the concerns, Pivarnik said the port will begin the permitting process next week on the dock project.
The port commissioners in November adopted a $6.6 million 2009 budget that included a 3 percent increase in the permanent moorage rate, down from 5 percent originally proposed after protests from Port Townsend Moorage Tenants Association members.
The permanent moorage rate increases apply to all three port-owned marinas, two in Port Townsend and one in Quilcene.
Don Taylor, port finance director, reported to the port commissioners on Wednesday that the port was off its budget revenue mark in 2008 by about $235,400.
Revenues in 2008 dropped for all port operations, he said.
“All in all, it wasn’t a great year,” Taylor said.
Pivarnik said the citizens advisory committee has signed off on a 144-slip project, down from 11 slips, after committee members asked for more 25-foot slips and fewer 20-foot slips, which are being used less frequently.
The larger slips would have larger boats that require more space to launch and land, requiring fewer slips.
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Port Townsend-Jefferson County Editor Jeff Chew can be reached at 360-385-2335 or at jeff.chew@peninsuladailynews.com.
