The closure of the Transit Shed by the Port of Anacortes at the end of 2023 left this event-centered, artistic, music loving, car-show stopping town without a large-scale program venue.

Anacortes City Councilmembers Ryan Walters, Christine Cleland-McGrath and Bruce McDougall proposed building a new event center at R Avenue and Ninth Street south of the dog park in a Feb 3 memorandum to the city council, mayor, city staff and Port of Anacortes commissioners.

“We envision building a marine/industrial aesthetic, potentially similar to the Cannery Building, to attempt to capture some of the rustic charm that embodied the Transit Shed,” said Walters.

The 7,400-square-foot building’s waterfront location will support the downtown core, be capable of seating 400 people, have a kitchen for outside caterers, storage for tables and chairs, a portable stage, dance floor and a plaza.

Construction funding could be by the City through lodging tax revenue. The City has a fund balance of $1.5 million that can be tapped. State law allows municipalities to support “operations and capital expenditures of tourism-related facilities.”

Expecting building costs to be around $6 million, the balance could be made up in bond revenue and grants from the state’s Recreation and Conservation Office. Assuming a 4.5% interest rate on a general obligation bond with a 20-year term, the City could take out a $4.5 million bond with annual payments of $345,000 – well below its average annual lodging tax revenue of about $600,000, the memorandum states.

Walters noted, “Several Anacortes City and Port staff – though not a quorum that can make decisions – agreed to pursue the next step in replacing the Transit Shed by drafting an Interlocal Agreement in 60 days or so – doing a conceptual design for 400-seated capacity space, square footage based on the capacity, the other components that we think we might need – kitchen, storage. I have drafted that Interlocal Agreement. I’ve looked it over with the Port and have sent it to our legal counsel and we are going to talk about it at our next Port and City liaison committee meeting Feb. 23.

“I expect that we will agree. We will schedule a joint Port and City meeting, include everybody where we can debate the agreement, take comments and roll out to the public. That would kick off that 60-day period working with the consultant and get a budget number.”

The memo lists numerous benefits. Anacortes will again have an event center. The location provides parking while still separated from residential neighborhoods. It benefits the RV park. The revenue comes from existing lodging tax, grants and bonds. Local dollars stay local.

The Port will own the center and manage it.

At its Feb. 12 Council meeting, Walters emphasized the next step is to settle on a process for conceptual design and move the Interlocal Agreement to the City Council and Port for approval.

“Our concept is to fast track the process to be able to get to a place where we could have an event center near term, but also do it in a methodical fashion so that the first Interlocal would commit very little money and it would be only conceptual design assuming we would like the outcome of that process. We would propose a second Interlocal and – off to the races. Next meeting is Feb. 23 so we can hash out more terms,” said Walters.

Public participation will be included, said Councilmember T.J. Fantini.