The March 5 municipal election has two propositions on the ballot for the South Harbor rebuild. To help educate voters, the city offers a primer on this important economic asset.
Cordova has a long history of supporting substantial harbor infrastructure improvements and passing both propositions allows the city to invest in Cordova’s most critical resource.
Cordova has always had a harbor since commercial fishing has been a critical component of the local economy. In 1920, Cordova constructed a wharf to support small boats associated with the canneries lining the growing waterfront. Within another decade, the harbor was expanded when several breakwaters were added to provide more protection to the mostly open-skiff wooden fleet, including the locally built Tiedeman skiff.
After the 1964 earthquake, an extensive and difficult dredging project, together with new breakwaters and dock repairs, was necessary to make the facility usable once again. In the course of this work done by the U.S. Army Corps of Engineers, the boat basin was enlarged, and 20 acres of new land, eventually usable for industrial development, was made from the dredged material.
Cordova’s fleet in the early 1980s swelled to fill the newly expanded boat harbor with more than 800 slips available to mariners. Industry began building up along Cordova’s waterfront at a breakneck pace in an effort to keep up with growing and increased demand.
The state transferred ownership of the harbor to the city of Cordova in 2003, and in 2005 the state provided $4.8 million to reconstruct and renovate the North Harbor including all floats from A to E.
Now the South Harbor is showing its age, having been battered by high winds for the past 10 to 15 years.
City staff began looking into possible sources of funding for the renovation of G, H and I floats, the airplane float and gangways including pilings in the aging South Harbor. South Harbor rebuild estimates are approximately $10 million.
Harbors are vitally important to our communities. The Alaska Municipal Harbor Facility Grant Program was established as a 50/50 matching grant program in 2006 by the Legislature to provide financial assistance to municipal-owned harbor facilities.
This grant program, funded on an annual basis at the discretion of the Legislature, has two tiers. The first tier has priority and consists of major maintenance and repair of a harbor facility that was previously owned by the state and now is locally owned. The second tier consists of all other harbor facilities and those harbor facilities which have already received a Tier I grant. A harbor facility may only receive one Tier I grant, but is eligible for multiple Tier II grants.
Applying for the full amount of the Tier I grant will replace G, H and I floats, the airplane float and gangways including pilings, water, electrical and fire suppression. Gangways will also be replaced.
On the ballot are proposals necessary for the city’s Port and Harbor to apply to this program under the Tier I Grant system.
Proposition 1 is for the $5 million bond, without which the project cannot move forward. Proposition 2 is the 0.5 percent fish tax which will supply the majority of the repayment of the bond, with the fuel wharfage increase and harbor rates making up the rest. All fish tax collected will be directed to the Harbor for repayment and for future maintenance of the harbor.
What is required before submitting a Tier I grant application?
- Proof of the $5 million match.
- Source of repayment in place.
- Proof of sufficient revenues and fee structure to operate and maintain facilities in the future.
- Evidence of how this project will reduce maintenance cost or address preventive maintenance needs.
How do we meet these requirements?
- Bond $5 million for the match which requires a vote of the people.
- Initiate a 0.5 percent local raw fish tax.
- Add a .03 per gallon fuel wharfage fee. (The fuel wharfage fee is not a tax, so no one is exempt from paying; i.e. State, Federal and non-profits)
- Adjust Harbor Rates and Fees.
A YES VOTE on both propositions allows the city to proceed with the South Harbor rebuild.
A NO VOTE on either or both of the propositions would result in the city not pursuing the South Harbor improvements through the Tier I grant.
The Harbor Facility Grant Program offers Cordova an excellent opportunity to complete a large portion of the South Harbor Rebuild project and extend its life of service. For more information, please contact the harbormaster at 907-424-6400.
