PORT TOWNSEND — Port of Port Townsend commissioners gathered public input on the impact of American Cruise Lines visits on the city, and they reviewed survey results and testimony before adopting the 2026 operating and capital budgets.
American Cruise Lines has docked at Union Wharf since 2013. At the port’s June 11 workshop, company representatives asked commissioners to consider beginning discussions about a long-term agreement in which the cruise line would invest in improvements at Union Wharf in exchange for preferential but non-exclusive use for 20 years or more.
The company typically makes 30 to 40 stops annually in Port Townsend and requested 43 landings for 2026, from April 2 to Nov. 1.
At the port’s request, the Port Townsend Main Street Program conducted a survey of downtown businesses for feedback about the cruise line. Main Street Program Executive Director Natalie Maitland presented the results from about 200 respondents and said 40 percent supported more cruise ship visits, 32 percent opposed them and 27 percent said they needed more information.
A separate citizen-led survey of merchants reflected deeper skepticism. Organizer Ashlyn Russell said respondents often viewed passengers as people who browsed but didn’t buy, and they preferred either eliminating cruises or limiting them to one or two per week during shoulder seasons.
During public comment Wednesday, speakers raised concerns about congestion, the “visual impact” of cruise ships and the need to preserve the historic district’s character.
Several objected to the full-size motor coaches that transport passengers and said the port should not invest in improving the wharf for a commercial operator.
Others urged the port to establish clearer limits on use, said the ships conflicted with the city’s maritime industry and warned that Port Townsend could soon resemble Alaska towns overwhelmed by cruise ship visitors.
Other speakers emphasized the economic benefits of the cruise line.
Shelly Leavens, the city’s communications and marketing director, said visitor-generated retail sales taxes directly support the city’s Transportation Benefit District, approved by voters nearly two years ago to address deteriorating streets.
The district has brought in $1 million to $2 million annually — above the anticipated $800,000 — thus easing the burden on local taxpayers, she said.
Jefferson County Historical Society Executive Director Tara McCauley said cruise ship excursions provide 5 percent to 10 percent of the nonprofit’s operating budget.
“We have found (American Cruise Lines) to be very collaborative and very responsive partners,” she said.
Kristin Meira, the director of government affairs for American Cruise Lines who attended Wednesday’s workshop virtually, told commissioners the company works to provide guests an authentic Port Townsend experience through walking tours, history programs and visits to downtown businesses. She said cruise activity and maritime trades are not competing interests, adding “the most vibrant waterfronts have diversified waterfronts.”
Meira said American Cruise Lines frequently partners with ports on infrastructure by supplementing local or grant funds, and the company has never sought exclusive access to public facilities. She said the company “remains committed” to continued dialogue with the community.
When commissioners reconvened Wednesday afternoon, attention shifted to the 2026 operations and capital budgets, both of which included elements related to cruise ships.
Director of Finance and Administration Connie Anderson projected about $9.8 million in revenue next year and expenses of just under $9 million. Net operating income was estimated at about $816,000.
Among the rate card adjustments was an increase from $1,100 a day to $2,000 day for cruise ship docking fees that are intended to provide revenue for future improvements to Union Wharf.
Anderson said the five-year cash-flow forecast showed tightening financial conditions. With expenses growing faster than the Consumer Price Index and the port’s Industrial Development District levy expiring after 2027, she said the port’s net operating income could fall into deficit by 2030 without new revenue.
A proposed $1.2 million Union Wharf upgrade for electrical work and mooring dolphins — still unfunded — was at the center of the capital budget discussion.
Staff reminded commissioners that including a project in the capital budget does not obligate the port to build it, and that grant funding would likely need to cover at least half the cost.
“There are a lot of projects that aren’t funded,” Executive Director Eron Berg said. “If the commission doesn’t want the project, it should not be in the budget.”
Commissioner Pam Petranek called the subject of cruise ships and Union Wharf “complicated, emotional and controversial.” She said the survey results and public testimony presented that morning led her to want to limit or decrease the number of visits.
She also questioned whether listing Union Wharf upgrades in the capital plan could elevate the project within the port’s legislative priorities. She said she preferred focusing on replacing the C, D and linear docks at Boat Haven, which are heavily used and generate revenue that stays in the community.
“It’s not on our strategic plan. It’s not on the to-do list and not in our mission statement,” Petranek said of Union Wharf. “It’s not about being for or against cruise ships. It’s about priorities.”
Commissioner Pete Hanke said the port had to maintain the wharf regardless of cruise activity.
“It’s port infrastructure and we benefit from it,” he said.
Commissioner Carol Hasse said wear and tear is her primary concern and that dolphins would still be needed even with fewer dockings.
Petranek moved to remove Union Wharf line items from the 2026 budget. Hanke and Hasse voted no; Petranek voted yes. In the final vote to adopt the budgets, Hanke and Hasse voted yes and Petranek voted no, emphasizing that only her opposition was the Union Wharf line item.
Commissioners unanimously agreed to recommend capping the number of cruise ship landings at Union Wharf in 2026 to 40, with a plan to revisit cruise ship policy next year.
Caron Cargill and Chelsea Hager of Insight Strategic Partners presented the port’s 2026 legislative priorities, including funding for the Point Hudson energy-efficiency project, dredging at the Boat Haven entrance, the Jefferson County International Airport industrial park, Phase I of the boatyard expansion and the Port Hadlock revitalization project.
They noted uncertainty tied to declining state revenues and reduced federal support.
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Reporter Paula Hunt can be reached by email at paula.hunt@peninsuladailynews.com.
