Business Community Government

City discusses possible cost increase, moorage, and regulations for Commercial Fishing Homeport

Now that the long-anticipated Commercial Fishing Homeport is more than just plans on paper, the city of Gig Harbor has embarked on finalizing the project’s particulars, such as setting competitive moorage rates and working out regulations. But it may also cost more to build than originally estimated.

The city has planned since 2012 to build a commercial fishing dock at Ancich Park to provide moorage for up to 17 local commercial fishing vessels. It finally secured federal approval to build the dock after several rejected attempts that primarily revolved around environmental impact mitigation. The city hearing examiner approved the project’s required shoreline permit in June.

Possibly more than expected

City staff told the Gig Harbor City Council at a study session meeting on July 16 that the project, which is out to bid, may cost a little more than $5 million. The previous projected cost was $3.4 million. Contributions from the Gig Harbor Commercial Fishermen’s Club ($200,000) and the Port of Tacoma ($150,000) brought the city’s responsibility down to $3.05 million.

A slide from a presentation to the Gig Harbor City Council showing updated construction expenses for the Commercial Fishing Homeport.

City Public Works Director Jeff Langhelm said that a city consultant adjusted the top range for the construction contract, which is now set at $4.2 million. He explained in a later email to Gig Harbor Now that the previous construction estimate was developed in late 2023.

“The project permit conditions have been established and the city has finalized the project contract documents for public bidding. Therefore, the city’s consultant has updated the construction cost estimate to reflect actual permit conditions and increased construction costs since late 2023,” he said.

He also noted in the email that, since the July 16 meeting, the city’s estimated mitigation payment came in at $79,740 more than he estimated, putting the possible total for the project at $5.2 million.

Ancich Park as seen from the eastern shore of Gig Harbor. City plans call for the Commercial Fishing Homeport on the right of this image.

But maybe not

However, he said at the July 16 meeting, the top contract bid number is “much higher” than what they have previously seen. The estimate has “a lot of contingency built in. Our consultant always puts in a lot of contingency.”

“I would be very surprised if we had numbers that came in that high for this facility. We’ve been pretty successful at coming in under budget on our … public works construction contracts, and I hope to continue that trend with this one.”

He also noted that the higher projections reflect a “worst-case scenario,” not necessarily what the city will have to pay.

Still, he said, “we have more money to make up than what we anticipated. Our project manager is going to be working with our finance department to find out … what we might have capacity for, for other revenue sources. … I don’t think it should impact what we’re talking about here today, but I want to make sure you’re aware of it, because right now, this number that we just summarized today is different than what we’ve talked about in the past.”

He said that when the winning contract bid comes before council, staff will have worked out a funding strategy based on real numbers, not projections. The city has not yet received bids.

Moorage rates

The city expects routine up-keep and care for the dock will cost a little more than $54,000 per year. About $30,000 of that would be from extra staff work.

City staff recommended a monthly moorage rate of $10 per square foot of the vessel. At that rate, the dock would bring in about $121,000 per year.

The moorage rate is based on a review of what similar docks charge. City staff sought to keep its rate competitive, especially since other marinas have more amenities and equipment. However, Langhelm said, Gig Harbor has “some very competitive” waterways, an incentive for vessels to moor here.

Staff recommended that the city review the rates every year. The city would also review other homeport-associated fees, such as electricity usage, termination fees and a waiting list fee. He said that most docks charge the latter.

Based on extensive discussion in 2023, staff also recommended that the dock be open to the public between 9 a.m. and 5 p.m. daily. Langhelm said that staff cleared that provision with fishermen, the city’s insurance group, and risk management staff. The dock is also meant to serve as a tourist attraction and as an educational space.

Commercial fishing vessels only for now

The city will not allow boats to temporarily dock at the homeport. Councilmember Reid Ekberg wondered whether letting the dock sit empty in the summer, when the commercial fishing fleet is at sea, is wise. He said he anticipated getting this kind of question from residents.

Langhelm said that neighbors voiced opposition to allowing temporary moorage at the homeport, so the city sought permits that would only allow commercial fishing vessels. The city “absolutely” could change its application to allow transient moorage, Langhelm said. Parks Manager Jennifer Haro also added that juggling boats may exceed staff capacity to monitor and maintain the dock.

Councilmember Julie Martin asked whether commercial fishing vessels and non-commercial vessels could cohabit.

“There’s three different vessels we could talk about: Commercial fishing vessels, transient vessels, and then just long-term recreational vessels,” Langhelm replied. “Again, it would be addressed through land use differently because they do require parking.”

Langhelm said that a contract award will come before council for approval at its Aug. 10 meeting.

Washington permits in-water construction during the time of year known as the fish window, when the fewest spawning or migrating fish are present. This allows construction crews to do in-water work in the most environmentally friendly way possible. The fish window usually opens in the summer.

City staff did not mention a construction start date. However, Langhelm said that the city expects contractors to complete in-water work on the dock by Feb. 15, 2027, when the fish window closes.