Port of Hood River planning centered around revenue

Commissioners voted to divert toll revenue into a savings fund for the new bridge, and generating positive net revenue and cutting operational costs has remained a top priority. Safety and transparency are central in those pursuits. Finance Director Debbie Smith-Wagar said that there was “nothing unusual” in the port’s first quarter budget report.

“What I was really pleased to see going through the 10-year forecast is that we’re in good shape,” she said. “If we follow through on these assumptions — or ones that are similar — we will be able to generate enough revenue to cover the costs of having parks, because parks cost money.”

She said that parks do not generate enough money to cover their own expenses. In the 2024-25 fiscal year, expenditures at the Marina Basin outpaced revenue by nearly $100,000. Similarly, the Event Site and The Hook/Spit/Nichols Basin (which are grouped into one in the budget report) also reported six-figure losses.

Smith-Wagar introduced capital reserves to the budget forecast, which will charge additional fees to properties such as the Jensen Building and set those funds aside for future repairs, maintenance or investment in the property. She added that with the help of the finance department’s new software, she hopes to bring more concrete figures to upcoming meetings.

Port of Hood River Waterfront Coordinator Megan Channell introduced designers Scott Keillor, senior project manager at William Sale Partnership (WSP), and Paul Schmidtke, project civil engineer with KPFF Consulting, who are working on the Second Street and Riverside Drive Roundabout.

Collaborating with the Oregon Department of Transportation (ODOT), they are on track to complete Phase 1 design in October 2026, with construction slated for summer 2027. Phase 1 of the project includes a roundabout at Second Street and Riverside Drive, and Phase 2 will realign First Street “to support waterfront commercial development.”

Keillor explained that the first phase is expected to cost $6.1 million. The port has approximately $2.5 million in existing state and federal funds from various grants, which leaves a funding gap of more than $3.5 million. Keillor presented several funding options, including an application for the Better Utilizing Investments to Leverage Development (BUILD) Grant. He believes the grant is the project’s “best shot” at funding.

Funds from Amazon sale

Though the sale of the Lower Hanel Mill property to Amazon, the port expects to receive about $3.19 million, according to the meeting agenda. Commissioner Tor Bieker led a discussion and suggested setting aside $500,000 for the airport terminal project (expected to cost $7 million), and the remaining funds be allocated towards construction of the roundabout. The commission approved the proposal.

An ordinance regulating conduct on port property was introduced and Bieker wanted to clarify definitions to allow people to fish along the Hood River. Ordinance No. 30 will be read a second time and adopted at the Dec. regular meeting.

Tour boat coming?

During the fall planning session, the commission listened to a presentation from Scott Webster, who owns Webster Orchards, The Fruit Company and Mt. Hood Railroad. Webster approached the commission with a proposal to offer sternwheeler tours using the port’s commercial dock. Webster said Mt. Hood Railroad recently purchased a 99-foot sternwheeler that will be shipped from Florida through the Panama Canal. The proposal would grant full-time use of the commercial dock to the tour boat. Waterfront and Marina Manager Daryl Stafford said that other ports around the region are charging around $250 per day, which would equate to more than $91,000 in annual revenue.

Commissioner Kathryn Thomas asked Webster if he had concerns in regard to the boat’s maneuverability in the marina, and Webster said his team would need to do additional research. Commission President Heather Gehring said that she would like to get input from the public before making a decision. She encouraged residents to attend their next meeting.

Bus stop near Nichols Basin

The concept of an interregional transit facility along First Street near Nichols Basin became one step closer to reality when Columbia Area Transit (CAT) was awarded $250,000 to finish the environmental review, engineering and preliminary design for the hub at Lot 1. Through the proposed IGA, the port and CAT will work together to execute a 40-year lease agreement to design, build and maintain the transit stop.

Marina East and West under consideration

The port has been examining opportunities for redevelopment at the Marina east and west properties. In FY25, the two properties combined reported losses of $107,570. Each commissioner chimed in with what they think would be best, or how they would like staff to approach the issue. Board members agreed that staff must prioritize public use and visual aesthetics of any proposal.

Bridge Operations position

After the adjournment of the fall planning session, Commissioner Kristi Chapman asked that Resolution No. 2025-26-7, Authorizing Two Admin Positions, be removed from the consent agenda to ask questions and discuss the proposition. Smith-Wagar explained that two employees will soon be out of the office on paid maternity leave, and staff is looking to temporarily fill their positions. The commission approved $135,000 for one full-time bridge operations position and one short-term administrative position.