The assembly voted unanimously at its April 14 meeting to authorize a push for federal funding to add equipment at the Marine Service Center.

The resolution allows Borough Manager Mason Villarma to submit an application to the U.S. Department of Transportation’s Maritime Administration (MARAD) for the 2026 Small Shipyard Grant Program.

The equipment carries a total price tag of $1,685,000 and focuses on acquiring three new pieces of heavy machinery for use at the service center.

The largest is a new 150-ton travel lift, estimated at $1,485,000. The package also includes a telescoping 60-foot boom lift for $150,000 and a forklift with a 5,000-pound capacity for $50,000.

Villarma described the move as a vital investment in the community’s future.

“This is a great strategy to recapitalize the most important equipment in our Marine Service Center, which, of course, is our travel lift,” he said. “We wouldn’t have the haul-out if we didn’t have a lift. The blue machine, the 150-ton, is 20 years old.”

If the grant is awarded, the federal government would cover 75% of the costs, totaling $1,263,750. This leaves the borough responsible for a 25% match of $421,250. However, Villarma has developed a financial plan to cover that share without touching general tax dollars. The strategy relies heavily on the trade-in value of the aging 150-ton lift, which is estimated at $400,000.

The remaining $21,250 for the match is expected to come from the port and harbors enterprise fund. To prepare for any changes in market value or equipment costs, the assembly committed up to $450,000 from that same fund as a safeguard.

“The match would really come from the trade-in value of our old travel lift,” Villarma explained. “We can trade that into the vendor. What we’re expecting is 400-plus to cover the majority of our matching commitment, outside of maybe 20-something thousand dollars. It’s basically free equipment when you look at it that way.”

Positioning Wrangell as a regional hub for vessel repair is a top priority for City Hall. By adding the new equipment, the borough aims to improve efficiency and support year-round maritime activity.

The grant application is due next month.

While the boom lift and forklift are available quickly, the company that submitted a price quote on the travel lift said manufacture and delivery would take 230 to 250 days.

The borough has already been in contact with federal representatives to strengthen its chances of winning the grant. “We’ve been working with Xochitl Castañeda, who’s head of the MARAD program down in the regional office in Seattle, and we talked about this in D.C. as well,” Villarma added. “I know they’re anticipating our application. We feel pretty good.”