Proposed new airport terminal subject of grant

HOOD RIVER — The Port of Hood River Commissioners authorized a federal grant application that would help construct a terminal building at Ken Jernstedt Airfield during its Jan. 19 meeting.

The airfield has no terminal building at present. Plans call for a two-story structure to serve pilots, the general public, and emergency operations. If approved, the U.S. Economic Development Administration will fund $7 million of the $9.9 million project, with $1 million provided by Oregon Department of Energy and approximately $1.3 million from Oregon’s Department of Transportation.

The port’s foundation has a $250,000 fundraising goal for the project, while the port itself will commit $500,000. Greenwood noted that with 95% of construction covered by non-port funds, his priority will be on ensuring that the new terminal building is financially self-sufficient. New lease revenues are projected conservatively at $23,000, against projected operating expenses of $21,000. The project is contingent on federal funding.

Other business

• Strategic plan update: As required by state law, the port must maintain a strategic business plan. The current plan dates from 2021 with a five-year planning horizon, but that didn’t fully account for bridge replacement and loss of bridge revenues. Commissioners reviewed a draft scope of work for a strategic plan revision this past September, and at the Jan. 12 meeting approved release of a request for proposals to update the plan.

• Waterfront infrastructure: Commissioners authorized a $4.76 million request to the U.S. Department of Transportation to construct a roundabout at the intersection of North Second Street and Riverside Drive. The roundabout will address safety concerns and improve traffic flow. Initially estimated at $6.1 million this past fall for direct construction alone, the final estimate accounts for design, rights-of-way acquisition and other non-capital costs, now sitting at $9.4 million. The port is committed to the project whether or not federal funds are approved; any gap will need to be addressed in the port’s 2027 budget.

The roundabout is the first phase of a two-phase project. At the January meeting, commissioners also authorized a second request to the same federal program, known by the acronym BUILD, to plan, design and conduct environmental work for future realignment of North First Street. The two projects are complementary, but can proceed independently.

• Bridge insurance settlement: The port will receive a $1 million insurance settlement stemming from damage the Hood River Bridge incurred in June 2024 when an excavator being hauled by a privately-owned semi-truck struck several girders, closing the bridge for three days. Actual damages — including loss of toll revenue — totaled about $1.4 million. Insurance coverage for the truck owner was capped at $1 million, so the port will take a loss on the balance.