I appreciate those who have submitted letters regarding our decision to deconstruct the Collins Building. I know this is an emotional issue, and it is hard for some to accept that restoration is not a viable option for this building. Given the sensitivity around this topic, I thought it best for me to give you my take on the subject. Let me say up front, that we are elected and entrusted to make decisions that are in the best interest of our constituents. I am confident the decision to deconstruct the building is the right one.
Some are suggesting that the Port of Everett is arbitrarily and unnecessarily rushing into the deconstruction of the building. I strongly disagree. I have personally been involved with the building since the port acquired it with the purchase of the Hulbert Mill property in 1991. At that time, the building’s rental revenues were insufficient to cover the routine maintenance. When we discovered how deteriorated the building was, it became readily apparent that the Collins Building was very near the end of its useful life.
In the last 18 years, several factors, including the 2001 Nisqually earthquake, have taken an irreversible toll on the building. In theory, it would be great if we could use the Collins Building in the port’s North Marina area for something like a farmer’s market or some other creative use. But, in reality, these plans simply don’t work if you look at the size of the building and the cost of creating this type of use.
The port has conducted engineering studies which show conclusively that structurally the building is seriously compromised. It was originally constructed over the water on wooden piles which are now deteriorated. Major rehabilitation is mandatory to safely use the building. According to a 2005 analysis, the cost to rehab the building for commercial use ranges between $12 million and $15 million. The study makes it abundantly clear that the Collins Building cannot be redeveloped without substantial port investment and/or an ongoing subsidy. This is something I could not support, and in fact, we have advice from our attorney that this could be tantamount to a gift of public funds, which is prohibited by our state constitution.
It has been suggested by some that the delay of the port’s North Marina project because of the bankruptcy of our developer should delay any action on the Collins Building. I need to point out that despite what is happening in our mixed-use development, the area we call the Craftsman District (i.e. marine services, repair works, boat yard, etc.) is moving ahead independently. Our goal here is to complete a state-of-the-art environmental boat repair and maintenance facility — an essential element for any first class marina.
More recently, in order to secure a dredging permit for the 12th Street Marina in 2005, we entered into a formal agreement with the U.S. Army Corps of Engineers and the historical community to decide the fate of the building — and it has. As part of that agreement we solicited qualified developers to submit plans for refurbishment and use of the building. We received only one response, and even after several extensions of deadlines, the developer was unable to secure financing to turn his ideas into reality.
In short, despite the strong emotional appeal that the building has to some in the community, there continues to be no workable plans and no funds to make the building useable. After all these years, a prolonged and thorough process, more than $1 million of port expense, and the acknowledgement by the U.S. government agency in charge that we have satisfied all our obligations, I don’t believe the Port Commission is “rushing” it.
The general public expects elected officials to make hard decisions and take tough action when the facts warrant. After careful review of the facts, the Port Commission has come to the conclusion that the facts justify the deconstruction of the building, and now is the time to move forward. It is not something we will enjoy doing, but we will do what we were elected to do. Any further delay would be costly to the port and irresponsible.
Phil Bannan is president of the Everett Port Commission.
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