Port makes last-minute budget cut to 2023 capital investment plan before adoption

The Port of Olympia Commission made a last-minute budget cut before adopting its 2023 operating budget and capital investment plan during a meeting held on Monday, November 28.

The budget cut made by the Commission relates to the development of a mixed-used marina and admin office, which was slashed from $425,000 to $275,000.

The investment plan totals $2,571,576.

Before the reduction, the marina had the most significant share among all capital investment projects. It still is one of the highest-cost projects even after the cut, surpassed only by a roof replacement for Commerce Business Center Building 3 on Willamette Drive at Lacey, which is budgeted at $275,500.

Port Commissioner Amy Evans Harding, who had opposed the idea of constructing what will be called the marine center at a meeting on November 14, motioned to amend the capital investment plan.

“[$275,000] seems like it's a more accurate number of the costs we're going to be incurring,” Evans Harding said.

During the previous meeting, Port Executive Services Director Lisa Parks agreed that the initial budget could be slashed.

Port Executive Director Sam Gibboney explained that the original budget was to accommodate contract amendments for two contractors working on the design of the building. The two contracts were scheduled for discussion on Monday but were set aside along with other topics during the start of the meeting as the commissioners thought they needed more time.

All three commissioners voted to amend the capital investment plan, despite Commissioner Joe Downing saying he was inclined to defer to the staff’s recommendation for the original amount.

“Since staff put this together, and they say $425,000 is the right number for the capital budget, I'm inclined to agree,” he said. “Any capital budget is just a budget not to exceed. That doesn't mean we're going to spend the money every year.”

Puget Sound Estuarium board members make their case for the Marine Center

Downing reassured that tabling the two contracts did not mean they would not act on them. The two proposed contracts are with Thomas Architecture Studios, which will design the marine center and MIG Inc, which will design and program aquarium exhibits in the building in partnership with Puget Sound Estuarium (PSE).

PSE board members and their partners defended the marine center during public comments and highlighted the benefit of having a marine educational center.

“There's been a movement in the education world in recent years towards doing more outdoor and experiential education,” said board member Noah Kalb. “There's a lot of evidence that shows that these kinds of programs are decreasing the achievement gap with underprivileged communities.”

“There's a lot of demand for these kinds of programs from the school system and from the community in the area,” Kalb continued. “We really want to be able to meet that need of the community in the coming years, and a partnership with the Port making that happen will be a really great opportunity to do that.”

Through their programs, the Estuarium reached over 20,000 students in 2021, according to board member Chris Chapman.

“Ideally, we would like a five to 6,000-square-foot facility with two classrooms and expanded exhibit space,”  said Chapman. “We believe this new facility will create a unique partnership that will benefit the port, the estuarium, and our community in several ways.”

Representatives from the nonprofit Capitol Land Trust and South Sound Maritime Heritage Association also voiced support for the marine center.

Operating budget

The 2023 operating budget projects revenues of $15,889,591 from its operations. After spending $14,021,780 for maintenance and administration, the Port is projected to lose $2,011,654 after depreciation.