Poulsbo recreation project breaks ground; PFD board approves interlocal amendment to set bond payments

Diane, a City of Poulsbo representative, told the Kitsap Public Facilities District Board on April 27 that the project recently held a groundbreaking and that construction will start immediately.

“We had our wonderful groundbreaking on Saturday…and it was a wonderful gathering of 30 to 40 people to celebrate a project that has been underway for more than 20 years and is actually happening,” Diane said, outlining the project’s components and partners.

The project includes two soccer fields, four pickleball courts, rentable pavilions, a walking trail, an age-separated playground, a multi-use court, and a viewing/operations structure Diane called an “osprey nest” to allow staff visual oversight. Diane said the construction contract was awarded to Neely Construction in mid-March for $9,325,000 and that negotiated pre-purchase items (buildings, turf, lighting, playground equipment) are estimated between $3.7 million and $4.1 million. She summarized the capital accounting as a $14.6 million subtotal, a $1 million contingency and total capital cost of $15.6 million funded by the bond issued in February.

“We did award the contract to Neely Construction in March…I think that was March 18,” Diane said.

Staff then presented a proposed, simplified second amendment to the regional center interlocal agreement (ILA) with the City of Poulsbo focused on construction-phase debt service. Russ (staff) explained the PFD’s payment commitment and invoicing cadence: “We have agreed to pay $8,944,000 principal and interest over 20 years. That’ll come out to $14,206,057. You can see…what we will pay annually with a combination of both principal and interest.” He added that the PFD will receive two invoices per year from the city, with half the interest invoiced in June and the principal plus remaining interest invoiced in December.

Board members asked clarifying questions about the bond interest rate and payment timing. Staff said the city had estimated 4.25% but the issued bond yielded roughly a 3.7% interest rate, producing an estimated savings from earlier projections. The board also confirmed the June/December arrears structure for interest and principal invoicing.

Pat (board member) moved to approve the second amendment to the regional center interlocal agreement; the chair seconded and the board approved the amendment after a voice vote. The transcript records verbal approval (ayes) and the chair declared the motion passed; a full roll-call tally was not recorded in the transcript.

Construction mobilization was described as beginning immediately, with an expected construction window of roughly April 26, 2026 to June 2027 and a grand opening no later than fall 2027. Staff noted potential winter shutdowns could affect the schedule.

The board heard final comments of thanks to presenters and moved on to other business.

Next steps: construction mobilization is imminent, staff will track invoices and transition to a debt-service tracking sheet as construction progresses, and the board will implement the approved payment schedule under the ILA amendment.