County funds preserve access, dock repairs, sewer expansion

Published 1:30 am Friday, June 26, 2026

Island County commissioners decided that a grant fund meant to spur economic development in rural counties will support turn lanes for access to a nature preserve, rehabilitation of a South Whidbey dock, a hospital parking lot and the extension of sewer lines in Coupeville.

The money, however, will not be used for a mid-block crossing in Oak Harbor or the replacement of the Mutiny Bay boat ramp.

The commissioners discussed the grant applications for the Rural County Economic Development Infrastructure Investment Program at a workshop meeting earlier this month. Under the program, the county receives a 0.09% rebate from the state’s sales tax to fund the grant program. The grants can only be used to fund a portion of project costs.

Past awards include $3 million for the city of Langley’s infrastructure improvement project and $669,000 to the Port of South Whidbey for the fairgrounds development project. The commissioners also awarded Oak Harbor $1 million for the marina dredging project, which the city intends to use this year, according to the county.

Cody Bakken, the economic development program coordinator, told the commissioners that more than $6 million remains unobligated in the fund. He said the fund accumulates just under $2 million a year, which is projected to increase to $2 million or more by 2028.

The commissioners said they wanted to be conservative with awards this year.

Commissioner Jill Johnson said she expects large grant requests in the future, such as a Freeland sewer system, infrastructure in Oak Harbor’s urban growth area and a Coupeville housing project. In addition, she said that the interest raised off the fund will help buoy the general fund during an upcoming budget crunch.

“This feels safe,” Commissioner Janet St. Clair agreed.

The commissioners were especially excited about the Keystone Preserve Access proposal, a partnership between Island County Public Works and the Whidbey Camano Land Trust. Keystone Farm and Forest Preserve, owned by the Land Trust, will protect 216 acres of land and 3,500 feet of shoreline and provide a location for land trust offices on site. The land trust has restored 1,000 feet of a stream to its original channel. Johnson said she expects that the project will create many jobs, such as teachers and interns at the preserve.

The proposal includes a Highway 525 turn lane to make it safer for the public to access the property. The project also includes ADA improvements.

The commissioners decided to devote $800,000 of grant funding to the projects, saying they see that it will be a big job creator in the county.

The Port of Whidbey requested funds to replace deteriorating infrastructure on the Possession Point Dock. The commissioners agreed to fund $113,000 of the project.

St. Clair pointed out that the project supports an existing access that has high visitation.

The commissioners agreed to provide $1.447 million in grant funding to the town of Coupeville for the extension of sewer and stormwater lines on Parker Road.

“The proposed sewer and stormwater expansion would support increased housing density while reducing future septic system dependence and protecting the town’s sole-source aquifer,” the commissioner’s packet states.

Finally, the commissioners agreed to award $60,000 to the WhidbeyHealth hospital district to expand parking at the hospital.

The commissioners decided it wasn’t the right time to replace the Mutiny Bay board ramp, a project proposed by Island County Public Works, especially since they were also funding the Possession Point dock repairs. Commissioner Melanie Bacon pointed out that the county hasn’t received the necessary permits yet.

In addition, the commissioners weren’t pleased with Oak Harbor’s request to help fund the Serendipity Lane mid-block crossing, saying it clearly wasn’t an economic development project that would bring jobs to the county.