ISLAND COUNTY: South Whidbey port received grant extension for housing feasibility study

South Whidbey Record

Summary by Perplexity AI

The Island County Commissioners extended a 2022 Rural County Economic Development grant so the Port of South Whidbey can continue a feasibility study for controversial workforce housing at the Whidbey Island Fairgrounds, where only about 26% of the $150,000 has been spent so far. Commissioners expressed both support and concern, citing infrastructure needs, zoning delays, and the South Whidbey School District’s key role in any housing project. A separate 2018 RCED grant of $688,000 for broader fairgrounds improvements will be allowed to expire after about $445,000 was used because the port lacks matching funds and calls its past fairgrounds management unsustainable, with rising tenant rents and ongoing financial losses.

They Said It

During the meeting last week, Commissioner Melanie Bacon said she has heard concerns in the community about this project being a slippery slope allowing housing in other parts of the fairgrounds, even though port commissioners have maintained their interest is focused on placing the housing above newly built concession stands.

[Executive Director Jim] Pivarnik said the port would need the South Whidbey School District’s partnership if it decides to move forward with that plan, since it owns the nearby property, though he questioned if that was the right location for development.

Commissioner Jill Johnson said she was supportive of the grant extension as long as it’s tied to infrastructure improvements, a component of which may be housing.

On the other hand, Commissioner Janet St. Clair raised concerns about indefinite delays related to the school district’s lack of support and city zoning. Earlier in the meeting, she said it seemed to her there are a number of issues in the economic development investments county commissioners have made that are dependent on the city of Langley making decisions that then get “tied up.”

Pivarnik said the port has been “poorly managed” for a lot of years and use of the fairgrounds is currently being reevaluated.

“Right now we’re losing about $100,000 a year in (the) fairgrounds,” he told the commissioners. “It’s not sustainable.”

“I would never say we don’t want the county’s money, but I am embarrassed that we’ve mismanaged the project that you’ve awarded us, and I would be happy to come back with a proposal that makes sense,” Pivarnik said.

For example, heating the pole building doesn’t make sense when it’s not insulated, so it’s a grant item that had to be cut, he explained.

Bacon questioned why the port would say goodbye to $243,000 of county dollars while accepting grants from the U.S. Department of Agriculture. Pivarnik responded that the USDA grants are specifically for demolition of old bleachers and bathroom renovations.

Johnson said the county needs to be realistic about a timeline of implementation when awarding grants.

“What is becoming problematic is that we’re getting one-year timelines or two-year timelines, and that’s not achievable in today’s permitting world, and we need to be more upfront about how long it’s going to take to deploy this money,” she said.

  • December 15, 2025