Port Orchard council accepts $970,000 state grant for Bay Street project, delays water plan adoption and approves downtown facade grant

Port Orchard — In routine business, the City Council approved several funding and permitting actions: it ratified a nearly $1 million Commerce grant for downtown reconstruction, postponed final action on the water system plan to permit fuller council review, and approved a small downtown refacing grant.

City staff said the Washington State Department of Commerce awarded Port Orchard a $970,000 Local Community Projects Program grant to support the SR 166 Bay Street downtown reconstruction project, covering design, construction, and upgrades to water, sewer and stormwater systems. Council moved to ratify the mayor’s signature on the grant agreement and to accept the funding; the resolution passed by voice vote.

Separately, staff presented the updated City of Port Orchard Water System Plan for 2024–25 (work compiled from 2022 and reviewed by state agencies). Several council members objected that the full plan packet had not been provided for review. The council voted to postpone adoption to the next council meeting and asked staff to distribute the large document (paper copies or flash drives) and place highlights in the next work study so members could review the plan before formal action.

The council also approved a building refacing grant application from owner Ken Kahlberg to repaint and repair visible facades at 724 and 728 Bay Street. The estimated project cost is $12,897.40; the applicant requested $9,028.18 with a required 30% match. The land use committee had recommended approval and the council passed the grant unanimously.

What’s next: Staff will execute the Commerce grant agreement and move the SR 166 project forward through design and later bidding; the Water System Plan will return for council review after staff circulates the packet.