HOOD RIVER — The Port of Hood River held its Fall Planning Session on Dec. 7. The port commissioners, Executive Director Michael McElwee, Chief Financial Officer Fred Kowell, Property Development Manager Greg Hagbery, Facilities Manager John Mann, Waterfront Manager Daryl Stafford, and Special Projects Manager Genevieve Scholl were in attendance to give updates on the bridge replacement effort, anticipated capital repairs to the current bridge, airport, marina, waterfront operations, and real estate development. The port’s long term financial sustainability was a common thread of each discussion. Scholl said this annual meeting is “meant to be a forum for free discussion by the commissioners on a variety of topics to give staff some preliminary direction as we begin our budget proposals for the next fiscal year.”
Kowell opened the meeting answering questions from commissioners regarding the port’s financial outlook. A long-range financial model showed total operating revenue for 2021 is $8.8 million, with expenses just topping $6.1 million, broken out by $2.6 million in personnel costs and $3.5 million in materials and services. As work on the bridge replacement begins to ramp up, the port will be looking to be conservative with their finances. Estimates have put a $491 million price tag on the removal of the existing bridge and construction of a new one. Because the port relies heavily on current toll revenues for operations and capital projects, McElwee addressed the potential need for a new business model when the new bridge is operational in 8-10 years.
“There is still some time to build additional revenue streams to the point of fiscal sustainability at, or hopefully before the bridge being built,” said McElwee.
The bridge brings in about 65% of the port’s total revenue. With what the port is calling “Revenue Enhancement Steps,” they are making strides in replacing the bridge income. Between the current initiatives and those being considered, the port is looking at roughly $1.06 million with other opportunities yet to be discussed.
Among the capital improvements on the bridge are resurfacing both approach ramps and replacing lift span ropes, and the necessary repairs to bring the weight limit back up to accommodate larger vehicles. Live load testing was done in November, and McElwee is hoping to receive results from engineers at Wiss, Janney, Elstner Associates, Inc. (WJE) by January so the commission can make a decision. The approach ramp construction will begin next spring, while the new lift span wires ropes will be replaced the following autumn.
Kevin Greenwood, Hood River Interstate Bridge Replacement project director, brought forth challenges and issues facing the project. A new bridge would impact tribal fishing sites and the Federal Highway Administration is leading the efforts to compensate those who could be affected. Greenwood stated this could push back the expected date of the Final Environmental Impact Statement (FEIS), which was scheduled to be submitted in the coming months. The port office and administration buildings could be faced with permanent relocation, although details are not known how or when a move may need to happen.
Hagbery, property and land development manager, provided more insight on the ongoing negotiations and potential issues with property owned by the port. Staff are pursuing an Economic Development Administration (EDA) grant for Lot 1 by the waterfront district — to finance infrastructure improvements and construct of a new street, East Anchor Way and a relocation of North First Street. Hagbery reviewed the new structure of lease for port building tenants. A Triple Net Lease template has the renter pay all the expenses of the property, including real estate taxes, building insurance, and maintenance costs. The new agreement was approved by the commission in 2019 and will be fully implemented by 2024.
Over the previous eight years the port has contributed $9.6 million towards capital projects for the Ken Jernstedt Airfield. With just six hangars available for rent, a 10% hike in T-Hangar yearly rates has been implemented. Commissioners and Hagbery did some brainstorming with self-sustainability and public input as the topic.
Scholl rounded out the meeting with the port’s communication plans and policies. She commended the port’s hiring of bilingual staff and addition of “diversity” to the commission’s list of core values.
“We now have multiple staff available who are fluent Spanish speakers,” said Scholl. “That alone has 1000% improved our communications.”
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