Negotiations between Port of Cascade Locks and operator break down
Cascade Locks — Portland Spirit Cruises & Events (Portland Spirit) has ended contract negotiations with the Port of Cascade Locks to operate the Columbia Gorge Sternwheeler after a deadline was not met for an agreement on a long-term contract that included a repower (new engine installation) of the vessel by 2024, according to a press release from Portland Spirit.
“We loved operating the port’s historic vessel for the past 16 years,” said Portland Spirit General Manager Dennis Corwin. “We don’t know when the Sternwheeler will operate again in the future,” Corwin added, “but all our wonderful employees in Cascade Locks will be offered employment in Portland.”
Olga Kaganova, general manager of the Port of Cascade Locks, said the port is working with a number of options “focused on retaining the vessel in Cascade Locks throughout the summer seasons to come.”
“The Sternwheeler at present time requires a large investment,” Kaganova said.
According to Portland Spirit, “The current agreement, set to end on Dec. 31, states that Portland Spirit will pay the Port of Cascade Locks a monthly concession fee (regardless of gains or losses in revenue), provide a commission on sales when revenue exceeds a certain amount, and make cash contributions to the Cascade Locks Historical Museum and the Port of Cascade Locks’ annual fireworks show.
“In addition, Portland Spirit is responsible for paying for all the operational, labor and marketing expenses required to operate the Sternwheeler, Cascade Locks Grill and the Cascade Locks Visitor Center in Marine Park.”
Negotiations complicated
According to Portland Spirit, a 15-year proposal was sent the Port of Cascade Locks in 2018, to renew operations and cover the cost of a repower and interior remodel of the vessel, estimated at $3 million. The Port of Cascade Locks offered Portland Spirit a 5-year agreement and removed the exclusive use of the dock for the Columbia Gorge Sternwheeler, among other concessions. Portland Spirit accepted some concessions, but countered with a 15 year agreement and a 5-year extension so the cost of a repower and interior remodel of the vessel could be amortized over time.
Portland Spirit stated the Port of Cascade Locks indicated a desire to work with American Cruise Lines, a national cruise ship company based in Guilford, Conn., and move the Columbia Gorge Sternwheeler to a new location. An agreement on who would pay for the construction of the new dock and its location was not reached, said Portland Spirit.
Kaganova, who represented the Port of Cascade Locks in the negotiations, said, “The Port of Cascade Locks values the presence of the Sternwheeler in Cascade Locks,” and added the port commission “is faced with a complex decision ... and is committed to a solution best for the community.
“The decision-making process is focused on retaining the vessel in Cascade Locks throughout the summer seasons to come," Kaganova said.
Contract history
The Columbia Gorge Sternwheeler was built in Hood River by Nichols Boat Works who used historic specifications to craft an authentic triple-deck paddle wheeler replica. It began operations in 1983 and over time has become a major tourist destination in the Columbia River Gorge with an estimated 55,000 passengers annually.
In 2006, American Waterways, Inc. (doing business as Portland Spirit) entered into a long term contract to operate the Columbia Gorge Sternwheeler from Cascade Locks.
According to Portland Spirit, the company has been locally family and employee owned and operated since 1994 and has invested more than $1.5 million into the operation. The company operates a fleet of five boats, including the Columbia Gorge Sternwheeler, and offers a variety of cruises year-round including champagne brunch, lunch, dinner, sightseeing and holiday cruises for public and private events. The vessels have been equipped with an onboard galley to offer freshly prepared Northwest cuisine on cruises in addition to exceptional service and ever changing views.
Port response
The Sternwheeler Columbia Gorge was modeled after the legendary Bailey Gatzert, the fastest paddle sternwheeler on the Columbia, said Kaganova. “Its value to community since its construction has been shown in economic development through tourism and community events. The community of Cascade Locks is proud to have this iconic asset.
“The port has gone to great lengths to maintain the vessel in line with that while also ensuring its operational feasibility,” Kaganova added.
Portland Spirit’s contract with the Port expires on Dec. 31, 2022.
Kaganova said the port has engaged in long contract negotiations and is disappointed an agreement has not yet been reached. Multiple options are being considered, including a vessel operated by an operator or by the port, selling the vessel with contingency of operation from Cascade Locks, docking for a time during refit, and others.
“The port discussed the use of federal American Rescue Plan Act funds appropriated by Sen. Thompsen for the repower of the vessel and is currently purchasing engines with that funding,” Kaganova added.
The port also is considering an offer to build two new docks to allow larger vessels to dock, and a restaurant operator for the café/visitor center.
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