A project that Leland Township Harbor officials originally planned to start last September will now be delayed until at least September 2008.

In December 2005, the State Waterways Commission approved a 75-25 local match grant for Leland Township to improve the harbor at an estimated cost of $3.2 million. The project would expand the number of boat slips from 40 to 88, including nine broadside moorings in the federal anchorage area that is part of the Leland Harbor marina basin.

The harbor would also have a new marina building and bathhouse area, modernized electrical service and sewer pump outs, and more parking spots.

Harbormaster Russell Dzuba said the state changed its approval process last summer by requiring the State Office of Management and Budget (OMB) to review all projects involving the use of state funds. While the state Department of Natural Resources supported the plans, the OMB review slowed the timetable.

In early 2007, officials with the Army Corps of Engineers suspended the permit it issued last year after they became concerned that the township planned to use two-thirds of the federal anchorage area for mooring larger boats.

Cris Telgard, chairman of the Leland Township Harbor Commission, said Tuesday that when the Corps suspended the permit, the township’s consultant engineering firm, Abonmarche of Manistee, halted design revision work. It also resulted in the OMB halting its review of the township’s plans because the Corps review would require a redesign as well.

“We’ve since had meetings with them (the Corps officials) and we were assured that they would issue a report and decision by the first of May. We’re still waiting some 2 1/2 months later,” Telgard said.

Dzuba said he sends at least one e-mail every day to Corps officials conducting the review and information gathering, asking when they will have the report and decision completed. “They’ve stopped answering my e-mails,” he said.

Telgard said even if the report and decision were issued today, redesigning the new docks would require more review and approvals.

“There is no way this can happen in time to allow construction in the winter of ‘07-08. Given the glacial pace of the Corps and the Michigan OMB bureaucracy, I’ve got my fingers crossed that we can have everything in order to build in 08-09. At this point there is no way to predict,” Telgard said.

No matter what happens, the township harbor commission will have its portion of the project funds, some $800,000, ready to go when it starts. Both Dzuba and Telgard said the harbor is seeing its busiest time right now with the conclusion of the Chicago to Mackinac Island sail boat race.

“We’re at or above capacity every night with the busiest part of the season ahead, the post-Chicago to Mackinac race,” Telgard said. “We expect to meet or exceed last years business is the season finishes as strong as it began.”