Port Huron outlines $5.6 million canal repair plan, publishes bond notice to preserve options
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Summary
City staff presented a shovel‑ready proposal to repair the Black River Canal with an estimated cost of $5.6 million; the city would shoulder roughly $3.0–$3.6 million and is seeking about $1 million from each adjoining township. Council authorized publication of a notice of intent to issue bonds but the manager said no bonds will be sold until townships agree.
Mayor Anita R. Ashford and city officials spent a large portion of the meeting reviewing a proposal to repair the Black River Canal and replace the damaged Tainter Gate.
City staff described the project as "shovel ready" and said engineers estimate total construction costs near $5,600,000; the presentation said the city has spent about $400,000 so far on engineering and procurement. The presenter warned that removing the existing gate without a replacement could allow sand to migrate into the canal and permanently close it within 24 to 36 months, potentially making later dredging far more expensive.
To fund construction, staff proposed a cost-sharing approach: a city share of roughly $3,000,000–$3,600,000 (about 60 percent of the estimated cost) and approximately $1,000,000 from each of the two adjacent townships. The city manager and presenter outlined a hybrid repayment plan that could combine a 25‑year municipal bond, special assessment districts for riverfront parcels and general‑fund contributions to cover annual debt service. The presenter noted that special assessments require multiple public hearings and that exact assessment formulas (parcel linear distance, acreage, or other measures) remain under discussion.
The council also heard that the state regulator (EGLE) will require a fabricated Tainter Gate built to its specifications rather than an off‑the‑shelf product; staff said that fabrication lead times can be long and urged early procurement. Staff estimated the new gate is designed to withstand the debris and floodwaters associated with a 100‑year flood.
Procedurally, the council moved and approved a resolution authorizing notice of intent to issue municipal securities of up to $6,000,000 to preserve financing flexibility while staff negotiates with the townships. City staff clarified to council that publishing a notice is a market‑notification step and that "no bonds will be issued" until the city negotiates and the council ratifies any intergovernmental agreement with township partners.
Council members asked when the canal could reopen if funding is secured; staff said major construction could occur over the coming summer with a best‑case goal of gate installation by fall but warned lead times for fabrication could extend that schedule. Several members urged the city to present concrete bid numbers before finalizing assessment formulas and to continue outreach to township supervisors.
Next steps identified at the meeting: staff will complete bid openings at the end of the month to establish firm construction prices, pursue negotiated agreements with Port Huron Township and Fort Gratiot Township, and return to the council to ratify any intergovernmental financing agreement before issuing bonds.