Finance committee hears Saxon Harbor update

HURLEY - The Iron County Board of Supervisors' Finance Committee heard an update on the state of Saxon Harbor Thursday, including the fact it could be as long as three to four years before the harbor reopens.

Forest and Parks Administrator Eric Peterson approached the committee about purchasing a pair of temporary bridges, which would be initially used over the section of County A that was washed out at Oronto Creek during the July 11 flooding that destroyed the harbor.

Peterson said the bridges are around $28,000 apiece and while he can fund most of the purchase out of the department's budget, some money would have to come from the county's general fund.

The county would also be able to lease the bridges to the Wisconsin Department of Transportation to reduce the overall cost.

"Financially, it would make sense to purchase these two bridges this year, rent them to DOT for next year; we'll get two bridges for less than half price each," Peterson said.

They could also be used in the future, with Peterson saying he planned to budget for the purchase next year, as the Apple Creek bridge in Upson also needs replacing.

The temporary bridges placed at the harbor would serve as a crossing over the wash-out until the state completes the permanent bridge sometime next summer or fall.

The committee agreed with Peterson that the purchase was a good idea, verbally giving him the go-ahead and planning to put it on the agenda for the county board's next meeting.

Peterson also provided an update on the potential price-tag for rebuilding the harbor.

While final costs will depend largely on the design, Peterson said the project could be as high as $20 million.

"I think we can do that for less than $20 million, but I think $20 million is a good number to look at for total cost right now," he said.

Of that, the funding breakdown would be 75 percent Federal Emergency Management Agency money, 12.5 percent state funding, and 12.5 percent picked up by the county, or $2.5 million.

County officials are exploring whether additional grants could be used to cover the county's share. Regardless of the cost, clerk Mike Saari warned the county would need to borrow the funds, as the price-tag would be too high to simply pay for in cash.

In addition to repair costs, Peterson told the committee the county is losing roughly $130,000 in revenue a year while the harbor is closed. The county has also refunded more than $48,000 in boat slip fees for this year, as well as more than $5,000 in campground reservation fees.

The $20 million does include the cost of the bridge over Oronto Creek, which should be reimbursed.

The wider creek bed created by the flooding will likely be left as it is, meaning the bridge will need to be bigger - the current span of the creek bed is roughly 150 feet, whereas the old one was around 40 feet.

Peterson said while he would explore the issue, it was unlikely the harbor could be partially open during construction.

While a number of agencies and groups have talked about the harbor project being eligible for grants, several county officials said it was unclear whether the grants could count as the county's share of the cost, or if they would apply to the state's portion.

The county is currently preparing to solicit bids for the project's engineering firm, Peterson said, which will then seek bids from three companies for the cost to rebuild the harbor and campground the way it was before the storm.

This is a key step to ensuring the construction remains eligible for FEMA aid, said Peterson.

"All we need that for is cost, the total cost, and to submit that to FEMA. FEMA reviews it with its engineers, and then that's what they'll base their 75 percent payment off of," Peterson said. "FEMA pays to put it back exactly how it was. Any improvements or anything different we do, there are different sources of money ... that we could tap into."

The federal agency is expected to establish a regional base of operations in Superior as early as next week. Peterson said the harbor will likely have its own FEMA project manager to guide the county through the process.

While FEMA's funds are based on returning the site to its original state, changes in the design are expected - including rerouting of the creek.

While the Wisconsin Department of Natural Resources and Army Corps of Engineers will have ultimate say in the path of Oronto Creek, no one has told Peterson the creek can't be rerouted.

He said the likely plan would be to follow the path the creek wants to take, running straight out to the lake along the eastern side of County A.

The change may necessitate rerouting County A through the old campground, according to Peterson.

Ultimately, Peterson and other officials involved in the planning process told the committee the project would be shaped by the county board and what it's willing to pay for.

"The board is kind of going to have to give some direction here on how much money they are going to be comfortable spending on this project," Peterson said. "As this process starts rolling forward here in the next month or so, we're going to need that direction - because there's no sense shopping for a Cadillac if we're only going to buy a Honda."

Peterson said whatever ceiling the board sets, the project would be the best facility for that price.

He warned a decision would need to be made soon, as it can't be designed without a rough guideline to follow.

"We have to have some parameters ... to go to an engineering firm with,"

Setting a general spending limit will also help other aspects of the project, including communicating with the public about the scope of the project and seeking out grant opportunities.

"If we know where the commitment line is, then we can kind of work backwards from there," said Zoning Administrator Tom Bergman, adding there was a "huge opportunity" in rebuilding the harbor.

"There's already this incredible asset and we can potentially make it a better asset," he said.

Several board members and county officials made clear the public would be involved in the process, with a public hearing on the project expected at some point in the process.