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Will SEED Be Traded For More Waterfront Development?

July 2nd, 2009 by Rachel Pritchett

By Rachel Pritchett, Kitsap Sun reporter

For once, Port of Bremerton Commissioner Bill Mahan didn’t argue strenuously to continue the SEED incubator project during a Tuesday work session.

That was a surprise.

Mahan has been a booster of the clean-tech business incubator, viewing it as something that would bring new jobs and economic diversification and provide a foothold in an industry sure to be a big part of the future. He has tirelessly advocated for the Sustainable Energy and Economic Development project that envisioned the incubator spinning off new clean-tech manufacturers at the port. 

Now, with a $4.3 million shortfall predicted Tuesday if the incubator were built, hopes have dimmed that the bulk of the project will go forward.

It may have been doomed when former Commissioner Mary Ann Huntington was voted off the commission in 2007. Larry Stokes, who defeated Huntington in that election, has often voiced concern over SEED spending. The other commissioner, Cheryl Kincer, never fully came out for SEED. There was always the chance two votes wouldn’t be there.

But Mahan continued his lonely fight.

Earlier this year, he even recruited folks from the business community to come to a port meeting to say nice things about SEED. They did, but failed to build up a genuine and lasting network of support.

Maybe Mahan saw the writing on the wall. Under new port Chief Executive Officer Cary Bozeman, perhaps the chances of building the complex and expensive project became even more remote.

At Tuesday’s meeting, Bozeman had the port’s finance person share figures that showed a $4.3 million shortfall if the incubator were built now, full-scale and with a second floor.

What the number didn’t take into account was the possibility of building a smaller incubator. An effort is under way now to identify ways to cut costs of an incubator building. At one time, it was hoped the cost could be brought down to just over $5 million, which is the amount the port has for the project if it decided to match a $2.58 million grant. Bozeman’s finance person used the higher $9.5 million cost figure to calculate the $4.3 million shortfall.

When asked why the higher number was used, Bozeman responded, “It’s better to be on the conservative side.”

There was little discussion of a smaller incubator Tuesday. The feeling in the room was an almost fatalistic acknowledgment that based on those numbers they were seeing, the project seemed too risky.

Perhaps when the lower number comes out, the incubator will seem more likely.

If the bulk of the SEED project goes away, we may see the port’s focus turn to the undeveloped two acres it is purchasing above the Bremerton Marina.

Bozeman, seemingly undeterred by empty condominiums and a marina that remains two-thirds empty, envisions underground parking and buildings on top that might include retail, office, and more housing.

Also now under negotiation is $392,000 in federal funding for stairs and a ramp there.

Bozeman said he’s spoken with the city of Bremerton’s economic-development chief, Gary Sexton, about helping out.

Bozeman wants a development plan for the Washington Avenue land in place within three years.

Whether the port ends up trading one risky project in SEED for another on the Bremerton waterfront remains to be seen.

Bozeman said any waterfront development by the port would be in conjunction with a partner with the financial capability of pulling it off, thus reducing the risk. 

He’s already putting out calls.

“That’s the way we’re going to do everything from now on,” he said.


 

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6 Responses to “Will SEED Be Traded For More Waterfront Development?”

  1. Kathryn Simpson Says:

    I think developing the Belfair-Bremerton corridor could also be very beneficial. I also find it ironic that there is now talk of working with the the motor sports venue to expand it. Gee… there was this potential project a few years ago…

    Regards,
    Kathryn Simpson

  2. Colleen Smidt Says:

    Kathryn, It is even worse that you imagine. User organizations (local clubs) of the Bremerton Raceway were willing to invest in improvements and expand operations out there an entire decade before NASCAR even appeared as a possibility. Handlers (Drag Racing) had been using the facility since the late 50’s and the Bremerton Sports Car Club since the mid 70’s.

    As a locally controlled User Council in the 90’s, of which I was a participant, several of the clubs partnered together to pave additional crossovers, put in a return road, add additional grandstands and seating etc. We did what we could but were limited by the Port. Many FAA rules and restrictions were given as reasons to defeat many of our permanent improvement ideas or possible projects but we all continued to work well together for the betterment of our local racing facility.

    It was all pretty good until Bill Mahan allowed himself to be influenced by several outside, Seattle based groups, and forced the local clubs to disband the Users Council and form a Not for Profit Organization called Bremerton MotorSports Park. He has continued to be a mini tyrannical dictator when it comes to his favoritism and decision making regarding operations of what I will always consider to be the Bremerton Raceway. As long as he continues to be involved with the Port of Bremerton, I hold out little hope or confidence in any real improvements for the Motorsports community.

  3. Registered Voter Says:

    “Gee… there was this potential project a few years ago…”

    At least one. But alas, too much absolutist thinking to get ideas like that off the ground towards true win-win.

    Never mind the complexities or facts about them, though. It probably just came down to not having enough people at meetings to say nice things.

  4. Bob Meadows Says:

    The port district administration is having to make realistic choices, since they cannot do everything at once.

    Unfortunately, they already applied for and accepted a federal grant for the “incubator” building.

    I wonder what they put in the application for that federal grant, since the form appears to require the applicant to state that the needed matching funds are available:

    http://www.eda.gov/ImageCache/EDAPublic/documents/pdfdocs2006/formed_2d900ageneralfinal1correct2_2epdf/v1/formed_2d900ageneralfinal1correct2.pdf

    “1. Identify the source and nature of the non-federal share of project costs as shown in the project budget and attach as Exhibit II.E.1.

    “2. Are in-kind contributions included as part of the non-federal share of the project funding?

    “Yes. If yes, explain the nature and the basis on which they are valued. Attach as Exhibit II.E.2.

    “No.

    “3. Provide evidence that funds required for the non-federal share of project costs are committed to the project, will be made available as needed for the project, and are not or will not be conditioned or encumbered in any way that would preclude its use consistent with the requirements of EDA investment assistance.”

    Had they been making realistic choices before now, they wouldn’t be faced with the prospect of handing back the grant funds that could perhaps have been spent already by some other entity had they not been given to the port district.

    Mahan is correct when he worries about a loss of credibility in the community of officials who have an influence on such grant funding.

  5. Mary Colborn Says:

    Where is there talk of working with the motor sports venue to expand it?

  6. paradyne64 Says:

    Bozeman said he’s spoken with the city of Bremerton’s economic-development chief, Gary Sexton, about helping out.

    So the truth comes out, no wonder Bozeman was so buddy-buddy with Sexton. You rub my back, I’ll rub yours (I saved your job and put a pretty little plaque with your name on it at the fountain park)…

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