La Conner staff seeks $515,000 for Channel Drive water line; town warns businesses about fraudulent permit invoices

Town staff reported a preliminary state funding request and warned local businesses about a fraud attempt at Monday’s La Conner council meeting. "We received [a] budget request of $515,000 from the state for the Channel Drive water line," staff member Scott told the council, saying the town will apply for additional sources of funding for the project.

Scott also briefed the council on Tulip Festival preparations, noting two children’s zones and parade staging at the port, and said he submitted a grant application to cover about half the cost of siding repairs and repainting on a town-owned building. Scott said if the grant is awarded the town would be responsible for the remaining 50 percent of the cost.

Separately, Scott said a local business was invoiced for roughly $6,000 for permit reviews by an entity that the town did not authorize. "Somebody has engaged in a scam," Scott said. He told council staff will notify all recent permit applicants and review permit records; he also said the town does not request wire transfers for permit fees.

Council members asked clarifying questions about project costs and the scam response. Transcript references to specific repair cost estimates are inconsistent in the record (figures mentioned included $90,000 and smaller line-item amounts of $19,000 and $40,000 for different repair categories); staff said exact grant awards and town cost shares are not yet determined. The council did not take any final funding action at this meeting but noted staff will pursue additional funding and outreach to affected permit applicants.