The borough assembly has approved two engineering contracts totaling about $290,000 as the community competes for a major federal disaster grant that could reshape its downtown waterfront and develop a new deepwater port at 6-Mile, and also boost the town’s water supply.

Assembly members voted Dec. 1 to hire PND Engineers for $236,888 to complete early design and environmental work for the two port projects. They also approved a $51,013 contract with Juneau-based proHNS for design services to replace the decades-old flume that diverts water to the community’s water reservoirs.

Officials said the PND Engineers work is needed so Wrangell can apply for up to tens of millions of dollars from the federal Economic Development Administration’s 2025 disaster supplemental grant program. The money is aimed at helping communities recover from major disasters and rebuild damaged infrastructure.

Wrangell qualifies for the funding because of the federal disaster declaration tied to the 2023 deadly landslide at the 11.2-Mile Zimovia Highway.

“This is an opportunity the borough will likely never have again,” Economic Development Director Kate Thomas told the assembly. “These projects will improve the overall infrastructure to accommodate industries out at 6-Mile. And in order for us to secure the EDA funding, we have to have these engineering services completed before the deadline.”

The borough intends to apply under the EDA’s “industry transformation” path, which supports projects aimed at reshaping regional economies. Grants are expected to range from $20 million to $50 million, and Thomas said Wrangell could receive as much as $40 million if its application is successful.

Wrangell’s overall plan focuses on three linked efforts, including two large waterfront projects: the deepwater port development project at 6-Mile and the downtown waterfront expansion.

The deepwater port work would add reliable water and sewage service, along with more resilient electrical power, to support current and future tenants at the former mill property, which the borough owns.

A metal scrap and recycling business already operates at the site, and the borough is talking with freight companies about moving their barge operations to the property.

Borough officials also see possibilities that private companies could build a data center, marine vessel storage and marine fabrication and repair yard at the property.

The downtown waterfront expansion would improve port efficiency and access for boats and pedestrians, according to the staff report prepared for the assembly. It would also add space for tourism and marine services along the waterfront.

To qualify for the grants, each project must have a preliminary engineering report and an environmental narrative completed before the grant application is filed. The federal deadline is March 6.

Thomas said that timeline makes it critical to start engineering work now.

Under the contract, PND will have about two months to finish conceptual designs, cost estimates and environmental assessments for the deepwater port and downtown waterfront projects. A portion of the deepwater port engineering cost — $44,688 — will be paid from an existing federal grant for deepwater port planning. The balance will come from port fund reserves.

The assembly also moved ahead with plans to design a replacement for the metal flume that diverts creek water into the upper reservoir. The contract with proHNS will prepare the conceptual design, cost estimate and environmental assessment needed for the grant application.

“Replacing the flume is necessary because what is currently there is badly deteriorated and has outlived its usefulness,” Thomas said. “By replacing the flume we can maximize the amount of water we catch. Catching more water that requires less treatment to become drinkable makes our plant more efficient. It benefits everyone.”

The existing flume is a series of half-cut metal culverts, cribbed up in places, explained Public Works Director Tom Wetor.