Anacortes’ Olson Building will come down to make way for 27 workforce apartments

The Port of Anacortes will run the demolition for the Anacortes Housing Authority. The port also took over the empty Secret Cove building and opened its 2027 budget for comment.

ANACORTES — A long-planned housing project in Anacortes is moving forward, and it means the historic Olson Building will be torn down and rebuilt.

Port of Anacortes commissioners have approved a deal with the Anacortes Housing Authority to tear down the Olson Building along with the building right next to it, the Marine Hardware & Supply Building, home to BikeSpot. Port staff have the green light to get started.

Why tear it down?

Back in 2019, the housing authority bought the Olson Building from the port for just $1, with plans to add affordable apartments above street-level shops. After years of study, the housing authority concluded the old building couldn’t be saved and a new one had to be built.

The reason comes down to numbers. City rules require shops on the ground floor, which left room for only about nine apartments upstairs in the existing building. The replacement, four stories tall, will hold 27 apartments for local workers. It will be designed to echo the old building’s look, and the housing authority hopes to salvage and reuse pieces of the original wherever possible. Because the two buildings sit so close together, they have to come down at the same time.

The project will bring the housing authority’s total to more than 220 homes. It now has 195.

Who does what

The housing authority doesn’t have construction managers on staff, so the port will handle permits, bidding and contracts and will oversee the demolition. The housing authority will still pick the contractor for its share of the work.

The port’s neighboring Marine Supply and Hardware Building is also going through a separate state environmental review, which includes a look at its historic value and a chance for public comment. Because the properties sit side by side, the port can coordinate demolition work across all of them at once, which both agencies expect will save money.

“When local agencies pull in the same direction, taxpayers get more for every dollar,” port Commission President Kathy Pittis said in the port’s announcement.

Dates and costs for the demolition have not been announced.

Port takes over Secret Cove building

In a separate deal, the port became the full owner of the Secret Cove building on Oct. 1. The port has long owned the land, but the building belonged to a tenant. The building once housed Randy’s Pier 61 and has sat empty since 2025.

The port is paying $150,000 to buy out what was left of the lease, which a creditor had picked up at a public auction. The deal also frees the former leaseholder from its remaining obligations under the lease. The port says it hasn’t started planning what comes next for the site, which is zoned for commercial marine use.

Weigh in on the port’s 2027 budget

The port’s draft 2027 budget is now posted for public review. Commissioners will take public comment and may adopt it at their regular meeting on Thursday, Nov. 5. Taxpayers in the port district can ask for a printed copy by calling the port office at (360) 293-3134.

Sources: Port of Anacortes, Port partners with housing authority on next step for Olson Building project (Oct. 2, 2026); Port secures Secret Cove building (Oct. 5, 2026); 2027 Draft Budget Now Available (Oct. 16, 2026).