Port Huron City Manager James Freed is introducing a new regional funding strategy to finally repair the city’s failed Tainter gate and stabilize the Black River canal. Speaking with WPHM’s Paul Miller Monday morning, Freed revealed that the project’s low bid recently came in at 4.7 million dollars, nearly a million dollars less than initial estimates. To cover the costs, Freed is moving away from traditional tax-funded models in favor of an enterprise model where the financial burden is placed on the users rather than the general taxpayer.
The plan relies on a three-pronged financial approach, starting with a 30-day pledge to raise one million dollars in private donations. Once that is secured, the city would issue a 30-year municipal bond for the remaining $3.7 million. To repay that debt, the city would implement a new permit system for motorized watercraft. Boaters using the canal would be required to purchase an annual permit costing between $100 and $200. Freed stated that based on state registration data, there are enough local motorcraft to cover the $220,000 annual bond payment.
The proposal also seeks a formal partnership with Port Huron and Fort Gratiot Townships. Freed is requesting annual contributions of $35,000 from Port Huron Township and $25,000 from Fort Gratiot. He pointed out that according to the State, Fort Gratiot actually has more registered watercraft than Port Huron and it’s Township combined. Under the deal, those communities could sell the permits themselves to recoup their contributions.
If the funding and regional agreements are finalized, construction is expected to take place throughout the 2026 season. While Freed aims for substantial completion by the end of this year, the canal is targeted to be fully opened by April 2027. Freed added that the permit fees are intended only to retire the construction debt, and once the bond is paid off, the permit system would expire.
