Port partners with housing authority on next step for Olson Building project
October 2, 2026 | News
The Port of Anacortes Commission has signed an interlocal agreement (ILA) with the Anacortes Housing Authority (AHA) for the combined demolition of the Olson Building and the adjacent Marine Hardware & Supply Building—which includes BikeSpot—and the Commission has authorized staff to begin the process.
The ILA formally establishes that the Port will support the AHA’s Olson Building project, managing bid procurement, permitting, and managing the construction contract for demolition of the structure. This moves AHA one step closer to developing workforce housing above ground-floor commercial space in a new building that reflects the Olson Building’s design.
The Port sold the Olson Building to AHA in 2019 for $1 so the agency could build workforce housing above commercial space on the property. After extensive investigation and design work, AHA determined the existing building must come down and a new one constructed in its place. Because of the proximity of the Olson Building and Marine Supply & Hardware Building/BikeSpot, the buildings must be demolished together.
AHA’s decision to rebuild came down to two goals: preserving the historic character of the Olson Building and providing as much affordable workforce housing as possible. The existing building could only fit about nine units on its second floor, since City code requires the ground floor to be used for commercial space. The new four-story building will instead have 27 units and match the look of the current Olson Building, and AHA plans to reuse as much of the original material as it can.
“We appreciate the cooperation from Port leadership as they help us, on so many levels, to bring the Olson Building project closer to fruition,” said AHA Board President Pat Barrett. “Accomplishing this long-held goal will add 27 housing units to our current 195 units and homes, benefiting a community in great need of affordable housing.”
The project demonstrates what can happen when two local agencies divide the work where each has the most to offer. The Port brings construction management experience, which AHA doesn’t have in-house, and will lead permitting, bidding, contracting, and managing the demolition of both buildings. AHA will retain decision-making authority over contractor selection for its portion of the work.
“This is a great example of two government agencies working together toward the same goals,” said Port Executive Director John Dumas. “By coordinating the work on these connected properties, both groups can get the job done more efficiently and save money by treating it as one project.”
The timing adds another layer of efficiency. The Olson Building and BikeSpot sit directly next to the Port’s Marine Supply and Hardware Building, which is separately undergoing a State Environmental Policy Act (known as SEPA) review, including historical mitigation discussion and public comment. Because the properties are so close together, the Port can manage demolition-related work across all three sites at once. This approach is expected to save both agencies money compared to handling them separately. The Port will cover any demolition costs on its own property if that work happens alongside AHA’s project.
“When local agencies pull in the same direction, taxpayers get more for every dollar,” said Kathy Pittis, Commission President. “As the Port approaches its second century, we’re proud to help the Housing Authority build workforce housing for the folks that keep our community and waterfront working, today and into the future.”
Partnerships like this strengthen local collaboration and help ensure Anacortes has housing for the people who keep the community working.