Port of Orcas considers marina, other ways to generate revenue

The Port of Orcas board has expressed interest in creating a marina or other capital venture that could help shore up the port’s revenue if its federal funding is reduced.

Clarification: Port manager Bea von Tobel says the Port is considering entering an agreement to use and to invest in improvements to the existing county dock, not purchasing it outright. Her letter to the county referred to “taking over” the dock.

The Port of Orcas board has expressed interest in creating a marina or other capital venture that could help shore up the port’s revenue if its federal funding is reduced.

“Frankly, I don’t think it looks good,” said commissioner Bret Thurman. “Our country’s going broke … Where do we want to be in 20 years? We’ve got some decisions to make.” Thurman said that funding for the Federal Aviation Administration’s use tax-funded Airport Improvement Project may well be reduced this year if H.R. 658 makes its way successfully through the senate. H.R. 658 would reduce annual AIP funding by $500 million below current levels, a total $2 billion reduction below current levels through 2014.

The board has directed port manager Bea vonTobel to make inquiries into making use of the county-owned wooden dock that juts away from Madrona Point into East Sound. Ideas include installing a fueling pier and mooring buoys or slips. So far, the county has made no reply.

The Eastsound airport depends mainly on FAA funding to keep it in serviceable condition, as the FAA supplies 90 percent of the funding for its capital improvements, up to $150,000 per year and roughly equal to the port’s annual budget. The Port of Orcas is under obligation to keep the airport in service for residential, commercial and emergency medical use.

Meanwhile, FAA conditions limit use of the 63-acre airport property to aviation-related purposes, greatly reducing potential money-making opportunities. Whenever the port accepts FAA funding, Thurman said, that property becomes bound by federal grant assurances, or conditions, for the next 20 years. For example, the port cannot enter into lucrative lease agreements with any business not directly tied to aviation.

“When I start talking about marinas or other businesses, I’m looking 20 years out,” Thurman said, adding that the port commission today is still affected by conditions agreed to when the port began accepting FAA money in the 1970s.

“Our hands get tied, and then people accuse us of being stupid,” he said. “Our community’s resistance to accepting what we agreed to is pretty high, but we are held to a pretty high standard of accountability, especially when you’re staring at federal grant assurances.”

Adding a marina seemed like a natural choice to the board, given that the Port of Friday Harbor has successfully managed both the Friday Harbor airport and the marina for the past 25 years.

The Port of Friday Harbor was formed in 1950 for the purpose of starting the marina – the airport was only added in 1986, said Friday Harbor port commissioner Greg Hertel.

“The marina makes money,” he said. “The airport breaks even or almost so. Both support jobs and provide open access by all businesses and allow local control.”

Port of Friday Harbor administrative assistant Deanna Eltinge said the marina generates 85 percent of the port’s revenue and only 74 percent of its expenses. In contrast, the airport generates 15 percent of its revenue, and 26 percent of its expenses.

Eltinge said the Ports of Seattle, Bellingham, Bremerton, Grays Harbor, Olympia and more all operate both a marina and airport in their districts.

The 500-slip Friday Harbor Marina annually hosts 15,000 guest boats and lands 4500 seaplanes.

Port of Orcas manager Bea vonTobel said Friday Harbor receives $1,000,000 annually through the FAA’s Airport Improvement Program, based on an enplanement rate of over 10,000 passengers per year – whereas the Port of Orcas receives only $150,000 per year, due to a lower enplanement rate of around 6,000 passengers per year.

Meanwhile, “Orcas sees very little benefit from all the boating in the San Juans,” commented port meeting attendeee Alex Huppenthal.

The potential to deliver visitors directly to Eastsound’s commercial hub is another draw.

“I drive through town, I see vacant spaces, I see people leaving,” said Thurman. “I’m watching our community hurting.”

Thurman said he felt a marina would be an asset to the island economy, drawing tourist dollars and buoying up local businesses. The board also discussed the need to address environmental concerns, should a marina plan unfold. The board is still in the very early stages of discussing funding strategies, and will be investigating various opportunities in the future.

Other port news

Due to the resurfacing work at the airport, a portion of the adjacent Mt. Baker Road pedestrian trail has been covered with large rocks and marked as closed. Pilot Dwight Guss, concerned about the safety of pedestrians now being forced to detour into the roadway, recommended that the trail be reopened as soon as possible, whether by filling the rocks in with smaller gravel or other means. The construction is expected to be completed near the end of September.