Kodiak wins $26 million for St. Herman Harbor but is still $45 million short

The U.S. Maritime Administration on Tuesday awarded Kodiak about $26 million to rebuild a section of St. Herman Harbor holding more than half its slips. The harbor is the city's main moorage for its commercial fishing fleet.

Even with the grant, the city says it's about $45 million short of the roughly $100 million it needs to replace the whole harbor. "Now we need the State of Alaska to join us as a partner," Mayor Terry Haines said in a city news release.

Kodiak's award was one of six Alaska port projects that won nearly $105 million from the federal program this round.

Most of St. Herman's floats were built in 1982 and are past their useful life, according to an Oct. 1 city status report. A 2022 inspection rated the floats critical. Half the docks were twisting, two were missing and three were chained together to keep them from coming apart.

That inspection also found 80% of the concrete decking chipping away, in places down to the rebar, and an electrical system with no ground-fault protection.

A March 2023 storm with gusts near 100 mph knocked out 14 berths. Twelve slips are out of service now, more than 100 boats are on the waitlist, and the city's analysis assumes the harbor would have to close around 2036 without reinvestment.

The new grant covers Phase 2A, a $33 million project that includes a $6.93 million city match. It would replace three floats with four new ones, add 65 finger floats and bring new power, water, fire suppression and sewer pump-out lines.

The city's application scheduled construction from August 2027 to October 2028, though that depends on when the federal money is formally committed.

That's on top of $21.69 million already lined up for a first phase that adds 38 berths for vessels 100 feet and longer. Construction on it could start as early as spring 2027, though the city expects some supply chain delays.

The rest of the harbor, the remaining 1982 floats at its northeast end, has no money yet. A pending $5 million state harbor grant would require another $5 million from the city and depends on the state transportation department picking the project and the Legislature funding it.

Even if that comes through, the city would still be about $35 million to $40 million short, mostly for the last phase.

The city's own share could total $12.4 million to $17.4 million, more than the harbor fund can carry, Interim City Manager Tim Putney wrote. The report lists borrowing among the options and warns that putting off moorage rate increases would hurt the city's ability to borrow.

Waiting costs money too. A 2023 study put the whole replacement at about $55 million in 2022 dollars. Phase 2A alone is now $33 million. The city estimates that splitting the work into smaller pieces would add about 25% to costs and five to 10 years.

The Army Corps of Engineers permit for the work runs through July 31, 2031. The report says the last phase is unlikely to make that deadline without new money soon, though the Corps normally gives extension requests favorable consideration.

The city plans to apply for a federal BUILD grant expected to open early next year.