Assembly backs drafting ordinance for $28M CWOC revenue bonds to be repaid with marine passenger fees

The Assembly unanimously agreed to direct staff to prepare an ordinance authorizing up to $28,000,000 in revenue bonds to fund the Coastal Waterfront (Seawalk/CWOC) project, to be repaid from marine passenger fee revenue.

Manager Kester explained the timing pressure: Petro Marine, which controls roughly half of the private property needed for the Seawalk alignment, is building a new dock and related infrastructure in 2027 and will not allow CBJ access to the shared corridor after that date. To align schedules and staging, staff recommended using a manager's best interest finding to work directly with Western Marine for the concurrent segment while the remainder of the project would be procured through standard design‑bid procurement.

Kester said CBJ has about $4,000,000 set aside for design and that a $28,000,000 bond would cover construction (the figure is preliminary while design is not yet complete). She explained that revenue bonds backed by a defined revenue stream (marine passenger fees) do not require voter approval in the way general obligation bonds do. The manager added that debt would be structured with terms tied to the infrastructure lifespan (discussion suggested a long term, consistent with typical marine infrastructure lives and Petro Marine lease terms).

Assemblymembers asked about passenger‑fee balances, dock electrification priorities and estimated debt service, and staff said they would provide detailed bond terms and debt service estimates once the ordinance is drafted.

Next steps: staff will draft the bond ordinance and present estimated debt service schedules and term recommendations before introduction and public hearings.