Anacortes, Port advance interlocal plan for 400‑seat waterfront event center; city would help pay design and debt service

City officials and port commissioners presented interlocal agreements July 28 that would guide design, construction and long-term operation of an event center in the Port of Anacortess West Basin. The Port of Anacortes would build and operate the facility on port-owned property; the city would reimburse the port for half of design and construction costs and anticipates using lodging-tax (LTAC) revenue to pay debt service if the city issues bonds to finance its share.

Why it matters: The proposals would enable a new waterfront venue for local and regional events while exposing the city to financing decisions and ongoing obligations tied to LTAC revenues. The council and port framed the project as a partnership intended to increase tourism capacity and provide a home for events that previously used the transit shed.

Staff member Swetnam introduced the agreements to the full council, emphasizing the interagency collaboration that produced the draft documents. Swetnam said the design-and-construction interlocal "provides a lot of the ground rules about how the parties are gonna move through the remainder of the design process and manage construction of the facility" and described a planned port-city project team to guide design reviews.

Key terms discussed: the design-and-construction agreement would run through Dec. 31, 2028; the operations agreement would run through Dec. 31, 2057. The city and port used a $9,000,000 estimate (in 2024 dollars) for the projectbut the agreements include termination triggers if projected costs or permitting do not align with expectations. Swetnam said the facility would "allow up to 400 person events depending on the configuration" and would include a catering kitchen, a green room and restrooms; an optional lease area for permanent tenants (for example, an ice-cream vendor) would be built at the ports cost.

On financing, port and city staff described a likely structure in which the city issues general-obligation debt and uses lodging-tax revenue to pay the debt service. Swetnam said those mechanics informed due diligence and outside counsel review before circulating the interlocal drafts to elected officials.

Council discussion focused on programming, design details and cost control. Councilmember Walters said he is a "fervent supporter" of the concept but urged that design work consider "a kitchen versus just a catering kitchen" or the ability to attach a mobile kitchen. Walters also asked that the design provide continuity between indoor and overflow outdoor areas so events can expand into adjacent park space.

Councilmember McDougall urged the city to quantify projected economic impact during later design phases, asking staff to estimate annual economic benefits, including the multiplier effect of visitor spending and construction activity. Swetnam and other council members said further user-group input and iterative design work aim to lower cost and preserve a roughly 400-person capacity while trimming nonessential elements.

Next steps: staff said the drafts still include blanks to be filled; the port and city expect to finalize documents and schedule a joint port-city meeting for formal approval in the coming weeks. No formal council action was taken on July 28; the item was presented for discussion and possible future action.

Community and procedural notes: Swetnam and port staff said the port introduced similar documents at the port commission meeting July 17; council members who serve on the port-city liaison described months and years of coordination with user groups and with RMC Architects, the consultant that produced the conceptual design. Council members and staff noted the draft documents include multiple exit points if projected costs rise above the agreed estimate or permitting cannot be obtained.

Ending note: Councilmembers said they want additional detail on the permitting timeline, final cost estimates and the bond structure before any execution of the interlocal agreements. City staff indicated the lodging-tax reserve has approximately $1.5 million available to support further design work and that design iterations aim to reduce the $9 million estimate before committing to construction.