Oak Harbor council authorizes staff to pursue Port District option for marina funding

The Oak Harbor City Council unanimously authorized staff on Jan. 14 to pursue planning for a potential public port district, a step staff says could unlock state and federal funding streams to address marina repairs, breakwater and dredging needs.

Parks and Recreation Director Brian Smith and Marina stakeholders presented a summary of public engagement since June, including open houses and a public survey that indicated strong preference for exploring a port district as the top funding option. City staff outlined the marina's long-term capital needs: an aging breakwater, failing dock systems, and recurring dredging. Staff said the marina's operating revenue historically came primarily from tenants, but that capital needs exceed current local funding and that openness to new governance and funding structures had broad public support in outreach events.

Staff described financing options including a B&O (business and occupation) tax, legislative grants and bonds, private partnerships, and formation or expansion of a port district. Eric Fitch, executive director of the Washington Public Ports Association, addressed council and said ports vary widely, but that port districts offer statutory tools and access to state and federal programs and have been used by many Washington communities for economic development and marine infrastructure. Fitch said port districts are typically voter-driven and that forming a port would not be a simple or immediate funding fix but could make Oak Harbor eligible for additional funding opportunities.

Councilmember Brian Marshall moved to authorize the mayor to direct staff to engage in planning for creation of a North Whidbey Port District, including hiring a consultant to advise the city. The motion passed unanimously. Councilmembers and staff stressed creating an educational and informational public process and noted legal limits on using public funds for advocacy; staff said they would focus on feasibility, citizen advisory engagement, feasibility studies and grant opportunities.

Several public commenters, including Ken Hewlett of the Marine Advisory Committee and property owners with development interest, urged urgency: Hewlett said the marina is "one weather event away" from catastrophic damage and asked the city to pursue near-term financing while the port process proceeds. Council asked staff to continue pursuing parallel options and to return with feasibility findings and a recommended next-step schedule.