SALEM — The state announced $2.3 million in additional funding yesterday for the Salem Wharf development project, a major economic initiative aimed at attracting cruise ships, whale-watch boats and fishing vessels to the city.
The money allows Salem to move forward on the first step of the $20 million project and to pursue the purchase of the Blaney Street lot, the land leading up to the wharf.
"From my perspective, today was a major step forward because we can finalize the permitting, finalize the documents and be in a position to proceed with construction," said Mayor Kim Driscoll, who traveled to Winthrop yesterday to attend a Seaport Advisory Council meeting where the funding was approved.
The plan for Salem Wharf involves constructing a concrete and steel pier and a multiuse terminal building. The city hopes the new wharf would attract cruise ships, whale-watch boats and fishing vessels, resulting in an economic boost for the area.
"We don't have 128, but projects like this provide us with an opportunity to grow our economy in a whole host of ways," Driscoll said.
Some of the money announced yesterday will be spent on clearing the last hurdles before construction can begin, including finalizing permits and other construction documents.
"We're hoping to be in a position within the next 12 months to have everything completed so we can commence construction," Driscoll said yesterday.
The remaining $1 million would be combined with about $750,000 in previously approved state funds in hopes of purchasing the Blaney Street lot from Dominion, which also owns the Salem power plant. Driscoll said the land is assessed at about $1.65 million.
But buying the site could be an uphill battle. Yesterday, a Dominion official said the company has no plans to sell.
"We want to be as supportive as we possibly can regarding the building of the pier and support the city, but we have not been inclined to sell that piece of property to date," said Dan Weekley, Dominion's managing director of Northeast government affairs.
Dominion currently leases the property to the city for $1.
"We would prefer a long-term lease," Weekley said.
Driscoll, however, remained optimistic.
"We've had some positive dialogue with Dominion about the need to have long-term control of the site," she said. "We're hopeful we may be able to reach a conclusion to that very soon."
Yesterday's funding announcement was hailed as a major milestone, considering the city purchased the Salem ferry, a 149-passenger catamaran, only two years ago, marking the first step in the city's waterfront revitalization efforts.
"We've been interested in this project for a long time," said George Atkins, the president of the Salem Partnership, which was also a key backer of the ferry's Salem-Boston service. "We're very excited and pleased with the award and hope this is the major impetus to move this forward and complete it."
The Partnership recently asked an economic expert at Salem State College to review the potential financial benefits of the wharf project, Atkins said. Her report is expected this fall.
At the Blaney Street pier, there are already promising signs. The Salem ferry last year took 81,000 passengers between Salem and Boston. This year, it's on pace to exceed those numbers and many weekend runs have sold out, Driscoll said.
This summer, two cruise ships each docked for about 24 hours as part of a New England cruise package and many tourists spent the day eating lunch downtown, touring local museums and riding trolleys.
Earlier this year, the state announced $420,000 in funding for the South River Harbor Walk, a 1,100-foot-long walkway essentially linking Pickering Wharf to downtown Salem and a new waterfront park on Peabody Street in The Point. Construction is expected to start later this year.
The entire Salem Wharf project is expected to cost about $20 million, though the city still must secure approximately $4 million in funding.
"There's a way to go yet," Atkins said, "but this is certainly a huge, giant step."
Staff writer Chris Cassidy can be reached at ccassidy@salemnews.com.
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