Nichols Brothers Boat Builders is looking to expand its operations with a second boat yard in Oak Harbor, but the Navy has to get on board first.

The Freeland company, one of the largest private employers on Whidbey Island, is considering a vacant waterfront property next to the Navy Exchange on Naval Air Station Whidbey Island’s Seaplane base. Nichols Brothers needs a large work area and access to deep water to pursue contracts for larger boat-building projects.

The proposal could mean 100 jobs and a new industry for the city, which has a healthy population of educated and skilled employees due to the presence of NAS Whidbey.

“They are talking about 100 skilled-labor jobs. These are good-paying jobs,” Oak Harbor Mayor Jim Slowik said. “It’s hard to bring good jobs to the community in these difficult times.”

Slowik announced the boat builders’ plans during a meeting of the Island County Council of Governments June 29 and asked for money to fund a federal environmental study.

The project’s main hurdle, Slowik said, is securing Navy permission to lease the unused property. Getting the go-ahead will require at least the major studies and buy-in by regional Navy officials, he said.

“We’d absolutely need to have the Navy’s cooperation on this, and at this point, we don’t have it,” he said.

Kim Martin, base spokesperson, said the Navy has a policy of encouraging the use of vacant property on bases through an “enhanced use lease.”

“Any time we have the opportunity to leverage underutilized facilities, it’s a good thing. It can benefit the Navy and the community,” she said.

In this case, she said Navy officials realize the new jobs would help the city’s economy, as well as provide employment to Navy spouses and Navy retirees who have a lot of skills. Also, any payment from the lease would remain at the Whidbey base.

Still, Martin said a lot of issues must be considered as part of the federal environmental study. The Seaplane Base is a historic district and the area has a historic “view shed,” so the state Department of Archaeology and Historic Preservation will be involved. Also, fishermen and Navy personnel use the ramps, which were built for seaplanes.

She said the study will likely take about a year. After that, the lease would be opened up to competitive bids.

John Collins, CEO of Nichols Brothers, gave NASWI commanding officer, Capt. Jay Johnston, a tour of the Freeland boat yard June 29.

He acknowledged  the company has talked about other locations for the expansion, but the focus is largely on Oak Harbor.

“We think it’s to our advantage to stay on-island; that’s going to be our first priority,” he said.

If Nichols expands its operations to the Oak Harbor Navy base, the Freeland boat yard will not be impacted, Collins said.

South Whidbey Record Editor Brian Kelly contributed to the story.