Planning department outlines SmartGov overhaul, housing projects, Sharps Corner study and marina lease work

John Coleman, director of planning, community and economic development, presented the department's 2025 update to the Anacortes City Council on Feb. 10, covering permitting, housing, grants and shoreline lease work.

Coleman said the building department received a $197,000 Department of Commerce grant to improve the city's electronic permitting and development review processes. About $7,000 of the grant will be used for a near-term SmartGov implementation contract; the larger share will fund a consultant-led review of the city's '2as‑is' development review workflow and recommendations for best practices, plus digital scanning of legacy permits into Laserfiche.

Coleman said staff have hired an outside consultant to analyze and diagram permit workflows and will solicit feedback from past permit users. The work is intended to reduce processing delays and address user complaints tied to SmartGov transition and internal handoffs.

On construction activity, Coleman listed projects underway: Crosswinds Cottages (18 units, roughly 70% complete overall), Habitat Parkside duplexes (estimated 25% complete), Samish low‑income cottages (15 units completed recently), Easy Street cottages (6 units mostly under construction), 30 Second Street cottages (6 units underway), Welsh Brothers industrial shell building (about half done), hospital rooftop helipad (completed), and the Samish Early Learning Center (about 70% complete). He said larger multifamily projects in other Skagit County jurisdictions, not necessarily Anacortes, help explain differences in permit trends.

Coleman reviewed housing trends and planning tasks: the city is using population and jobs projections for the 20‑year comprehensive plan update (an increase of about 5,000 residents and 3,145 jobs in the planning horizon was cited), and is required to update its climate element and greenhouse gas inventory. He said the 2024 area‑median income for the Anacortes–Mount Vernon area is $102,800 and that the state Department of Commerce tools allocate housing need by AMI bands; the city must ensure zoning and policies can accommodate the required AMI targets.

Other work includes a Sharps Corner site analysis (contracted for about $35,000 under the mayor's signing authority) to determine buildable area, constraints and options for city‑owned land; an economic development strategic plan (draft received); and participation in Port‑related planning, including West Basin redevelopment and shore‑power/electrification conversations. Coleman said the city is assembling lease and sublease records for the Fidalgo Bay marina area because the Department of Natural Resources lease requires removal of creosote and eventual replacement of some decking; staff estimate creosote replacement will cost “several hundred thousand dollars” and said the city is working with sublease holders on fair cost sharing.

On CDBG (Community Development Block Grant) funds, Coleman said the city's upcoming allocation is $106,000 (program year July 2024–June 2025). He and councilmembers discussed the requirement for an Analysis of Impediments to Fair Housing (or similar impediments analysis) that is typically required every five years and could cost $15,000–$20,000; staff noted the possibility of using allowable administrative funds from CDBG to pay for that study.

Council members asked for corrected or expanded charts cited in the presentation (for example, state and county comparisons of housing-unit trends) and requested that final plan sets or maps be provided with public‑works contracts. Coleman said staff will continue implementation and return with recommendations and plan sets as items move toward formal action.