Santa Cruz Port District

Harbor Infrastructure Recovery Financing

The Santa Cruz Port District (the “District”) engaged Weist Law LLP to serve as bond counsel in connection with the issuance of its Series 2026 Enterprise Revenue Obligations (the “Financing”). Weist Law worked alongside CalMuni Advisors, serving as municipal advisor, to support the District through the structuring and execution of the financing.

The proceeds of the Financing are being used to repair, replace, and modernize multiple docks and related harbor infrastructure following significant storm damage sustained in late 2024.

Located along California’s central coast, the Santa Cruz Small Craft Harbor is a critical regional asset supporting recreational boating, commercial fishing, and marine-related economic activity. Damage to key dock infrastructure posed both operational and safety challenges, requiring a timely and well-structured capital solution.

Infrastructure Recovery & Resiliency

The project consists of the demolition and full reconstruction of multiple damaged docks, including new piles, decking, utilities, and associated marine infrastructure. The upgraded facilities are designed to meet current engineering standards, improve long-term durability, and enhance resilience against future storm events.

Construction is anticipated to proceed on an accelerated timeline to restore full harbor functionality and minimize disruption to tenants, visitors, and commercial users.

Financing Process & Structure

Weist Law LLP, in coordination with CalMuni Advisors, assisted the District in developing and conducting a competitive Request for Proposals (RFP) process to solicit financing options from qualified lenders. This process provided the District with a clear, side-by-side comparison of pricing, structure, and key terms.

The Financing was completed in the approximate amount of $13.1 million and is secured by revenues generated from the harbor enterprise. The obligations are structured on parity with the District’s existing debt and are supported by a rate covenant requiring minimum debt service coverage.

The final structure includes a fixed interest rate of 4.12% and a long-term amortization profile, providing cost certainty while aligning repayment with the useful life of the assets.

Execution

Weist Law LLP served as bond counsel throughout the transaction, working closely with CalMuni Advisors and the District to structure the financing, guide the RFP process, and coordinate execution through closing. The financing required careful alignment of financial projections, legal structure, and market terms to ensure compliance with existing obligations and long-term financial sustainability.

Project Impact

The Financing enables the District to restore essential harbor infrastructure while strengthening its ability to withstand future environmental events. Upon completion, the project will improve safety, preserve economic activity, and support continued use of the harbor by both commercial and recreational users.

More broadly, the Financing reflects a disciplined, market-driven approach to capital planning—demonstrating how public agencies can respond to unexpected infrastructure needs while maintaining strong financial management practices.