Local leaders discussed progress on the long-anticipated Bay Street reconstruction project during the Economic Development and Tourism Committee meeting June 9.

“We know the Bay Street reconstruction project is going to have a profound impact on our downtown core,” councilmember John Morrisey said.

Mayor Rob Putaansuu announced that the city recently received confirmation of the $3 million federal grant through U.S. Sen. Maria Cantwell’s office.

“If that funding does come, it will be a part of the federal budget, (which) likely won’t be in place till the fall,” Putaansuu said.

The city has also received $1 million in state funding but had initially requested $3 million from both state and federal sources. Putaansuu said the timing of construction remains uncertain, especially as the city works to avoid seasonal delays like those that impacted the state’s roundabout project.

“In a perfect world the budget gets approved on time, we get all the documents in place and meet all of our timelines to go to construction right after the first of the year because what we can’t have is a scenario like the state’s roundabout where we get it almost done and ready to pave and November comes along and we can’t pave till spring.”

While the federal funding is helpful, the city may proceed without it if necessary.

“I don’t want to do this but we have enough local dollars that we could not take the federal money and still meet our construction timeline in 2026,” Putaansuu said. “I’d rather take the federal money and spend the dollars we didn’t spend on the road on the community center and the plaza.”

Should delays occur, the mayor said the city could postpone roadwork and instead align it with community center construction.

“I think the worst case scenario, if there is, is we would delay that road construction one year and build the community center and the road at the same time,” he said. “Where we are at in the construction process is 60% for design, the state has approved our elevations and where the road will be aligned, they’ve approved…reducing the speed limit to 20 mph and we have amenities in the road project that will make it more pedestrian friendly.”

Two possible construction plans were discussed during the meeting: one would fully close Bay Street for 60 days as part of a 6–9 month construction timeline; the other would maintain limited access but stretch construction to over a year.

Community members in attendance voiced concern about the impact of construction on already struggling downtown merchants.

“Do we know of any resources or grants available to our downtown merchants that will be affected for the 60 to 90 days?” asked Joshua Johnson, co-founder of Love Kitsap. “My fear is that we are going to see a withering of some of our beloved businesses. If there were any material resources on the state or whatever level, we should pursue it.”

The mayor acknowledged there is currently no such support program available.

Morrisey emphasized the city’s goal to avoid the delays that plagued previous public works projects. Putaansuu agreed, highlighting the need for effective communication during the construction process.

“It’s communication and making sure the community knows businesses are open, how to get there and where you can park,” he said. “Making sure everybody continues reinforcing that our businesses are there and we need to support them.”

Monika Adams, past president of the Port Orchard Waterfront group, warned about the potential for long-term damage to the city’s historic core.

“We do need to bolster up our core and our merchants are going to need some support or we will end up with another strip mall up the road and the downtown is going to lose its heart,” Adams said. “To the merchants, it’s still jackhammers and big rumbling and less parking for their employees and less parking for their customers. I think all of us here understand the necessities, but the merchants are ill-prepared for a long-term reduction of income.”

Sarah Butler, representing the Port Orchard Waterfront Alliance, said downtown businesses are already discussing how to creatively use street closures to attract foot traffic during construction.

“There are actual businesses getting together already who really want to put something together…where in that closing the street aspect we can utilize space and encourage people to come down and get together and support our local businesses because…they’re not prepared and they’re freaking out,” Butler said. “Quite a few of them are really struggling right now.”

Nick Bond, the city’s community development director, suggested a city-led marketing campaign similar to those used in Seattle to keep businesses visible during construction.

“I know in Seattle when they’ve had projects in various neighborhoods they go out of their way not just to put up signs saying businesses are open but it is a marketing campaign where they are asking their residents to come down and support these businesses because they are struggling through the construction project and basically making an appeal to residents,” Bond said. “So I think we can put together a basic marketing plan.”

City council members are expected to revisit the issue this fall when project designs reach 90% completion.