Port of Bremerton seeks up to $10 million from Kitsap PFD for Circuit of the Northwest public facilities; board requests finance follow-up

The Port of Bremerton and project partners presented the public portion of the Circuit of the Northwest (CNW) entertainment campus and requested a funding commitment from the Kitsap Public Facilities District on Feb. 24.

Port Commissioner Axel Strickljahn outlined the port’s role, described the project site and timeline and emphasized that the port has committed $11 million for on-site infrastructure. Mortenson Construction (represented by Michael Harder) described its experience building large entertainment venues and said the company has a signed project-labor agreement with local trades. Chuck Moe of the Olympic Peninsula Building Trades explained the PLA is signed by 16 affiliated crafts and that local labor and suppliers would see significant construction and ongoing event-related economic activity. James Towne of Hilltop Securities explained the planned capital stack for the overall project (senior debt representing a majority of a roughly $250 million project) and said Hilltop would bring senior debt financing to market once project sources were fully in place.

Nut graf: The Port asked the district for $10,250,000 (presenters stated that amount as the KPFD share equal to roughly 50% of the public portion of the regional center elements). Presenters described a construction window beginning in spring 2026 with a potential soft opening in late 2026 and a grand opening in spring 2027 if financing and permitting proceed on schedule. Port representatives said funds for the project would be lockboxed in trustee accounts and that senior bondholders’ protections would be built into the trust and distribution structure; they also said project sponsors (including private partners) would have “skin in the game.”

Board members raised several concerns: (1) whether the PFD currently has the discretionary funds to commit $10 million without foregoing other ILAs and commitments, (2) whether the port or CNW would provide guarantee language tying repayments to the PFD if the state rebate extension does not pass, (3) whether the county or other public partners had been approached for support, and (4) whether awarding funds to the Port of Bremerton would set an allocation precedent given other jurisdictions (the board referenced prior requests from Bainbridge and others). Several board members said the district needs a policy for prioritizing and awarding funds before making commitments of this size.

The Port and partners offered to be creative about timing and structuring (e.g., staged payments, reimbursements if legislative extension fails, or other security) and asked the board to commit between the meeting date and April 1. Board members did not approve the request. Director Sean (board member) moved that KPFD finance staff meet with the Port of Bremerton finance team to analyze the public-portion financing and report back; the motion was not seconded and did not proceed to a vote. Several directors asked staff to schedule a workshop so KPFD and Port finance teams (and bond counsel/advisors) could review assumptions, trustee/lockbox mechanics and what guarantees would be necessary to protect PFD funds.

Ending: Port presenters left the board with project materials and asked for a near-term workshop; board staff agreed to pursue additional financial analysis before any formal commitment.