“Approximately 150 workers learned Monday morning that their jobs in Langley refurbishing a boat named the Capital Queen were over. Apparently due to local controversy caused by the project, the boat’s owners are moving it to Portland where another boat yard will finish the $8.2 million undertaking. “That was the hardest thing I’ve ever had to do in my life,” said Matt Nichols, president of Nichols Brothers Boat Builders, who broke the news to the Langley employees. “I had to fight tears,” he said. The 216-foot Capital Queen was barged into Nichols Brothers’ Langley dock on Nov. 2. Since then the waterfront has been abuzz with activity as workers rushed to transform the former gambling boat into a luxurious cruise ship. But all that work came to a stop after Matt Nichols’ announcement to the employees. By Monday night, what once was a brightly-lit ship that complemented Langley’s holiday lighting theme was a darkened hulk. Where the day before dozens of workers could be seen scurrying around the boat, there was no one in sight. While the city of Langley — through Mayor Lloyd Furman and the city council — had supported the Capital Queen project, its building official, Bob Snyder, had several concerns. Last week, he began an administrative review process, which included gathering of public opinion about the project’s impacts on such things as parking, noise and the environment. A story about that process in last Wednesday’s South Whidbey Record allegedly prompted the boat owners to move the project to Portland. In part, the story cited environmental concerns expressed by a man who kayaks in Langley Harbor. “You quoted some kayaker,” Nichols commented late Monday afternoon. “The customer was too nervous after that article.” He also complained of “a very poor choice of words,” used in the article, such as describing the project as “the biggest headache in town for city permitting staff.” Snyder said this week that the project really needed to go through the review process Langley has in place, instead of getting quick approval through the city council. Langley council member Bill Hawkins expressed his concerns over the project at last Wednesday’s council meeting, saying the council had been too quick to allow boat work to begin. “I kind of regretted acting in haste,” Hawkins said. The city sent letters to nearby property owners last Friday. The notice of administrative review stated, “The Langley city staff is currently conducting a review of the project. We would appreciate any comments you might have with regard to this project.” The goal was to complete the initial review by Dec. 23. The letter was signed by Snyder. Nichols later admitted that more than the newspaper article was to blame for the Capital Queen’s departure. He said his company was working under “a very strict delivery date,” as the owner was already selling tickets for cruises next spring. Change orders had already added several days to the schedule, and Nichols said the boat’s owners feared city action that could lead to more delays. “That was not something they could agree to,” he said. “They were afraid their vessel wouldn’t be delivered.” Nichols said the boat will soon be towed to the large Cascade General boat yard in Portland. That yard agreed to “a major penalty clause” if the job is not completed on time, according to Nichols. That financial penalty clause is something Nichols wouldn’t agree to. “We wouldn’t go for that,” Nichols said. “But we felt we could make it (the deadline).” The company that owns the Capital Queen would not comment on any of the issues involved. “We don’t have any comment; we’re moving the vessel,” Steve Johnson said Tuesday morning. “We appreciated the quality of work by Nichols.” Johnson is vice president of construction for Ocean Development Co., a wholly-owned subsidiary of American Classic Lines, the Chicago-based firm that owns the boat. He said the boat’s exact departure date is uncertain, but promised, “It’ll be gone within two weeks.” Nichols was surprised by the boat owner’s decision to pull out. He said he learned about it Saturday morning when the company’s representatives, including attorneys, came to his office. They laid the newspaper article on his desk and announced their decision. “I was stunned,” Nichols said. But there was no changing their minds, and he said Nichols Brothers will not sue for breach of contract or any such thing, although they probably could. “We could sure be nasty, but we need to do the right thing,” he said. Of the employees laid off, 102 worked for Nichols Brothers and 55 worked for subcontractors doing the interior work. “And those were a lot of local people,” Nichols said. Now, more than 100 families don’t have a prime wage earner this Christmas. But there’s a chance the company may soon have more work to do. Nichols said the company is “very close” to landing more contracts. “We’ll bring them all back as soon as possible,” he said. Meanwhile, a crew of about 160 is working at Nichols Brothers in Freeland where several projects are in the works. The Queen’s leaving, but review continues By Matt Johnson, Staff reporter Even though the Capital Queen will soon be leaving its Langley dock, the the city of Langley still wants to take a thorough look at the project to determine if it did fit under a contract it has with Nichols Brothers Boat Builders. The city’s building official, Bob Snyder, believes that it probably did not, meaning that contract — written in 1994 and modified in 1997 — would have needed some changes. After walking through the huge riverboat Friday with city planning director Jack Lynch, Snyder said he intends to do an administrative review of the project, even if it is in absentia. According Snyder’s interpretation of the contract, the only approved uses of the Nichols dock are the outfitting of new vessels built at the company’s Freeland facility, and as a base for Mosquito Fleet tours. The Capital Queen work, basically an overhaul of an existing boat, probably exceeded the scope of the contract, Snyder believes. “That area was not zoned for that type of work,” he said. At the city’s invitation, representatives from the state Department of Ecology were scheduled to inspect the work site this week. Snyder said the agency and the city were prepared to focus in particular on how the work might affect local water quality. Snyder said work like that being done on the Capital Queen is typically done in dry dock. “We saw the same concerns as Ecology,” he said. “The barge was not set up for that kind of work.” Also carrying weight in the review process will be commentary collected from homeowners and business owners along Sunrise Lane, the street that services the Nichols dock. Snyder sent letters to those people Friday, asking for written comments. As of Monday, he had received only a phone call from one resident. Matt Nichols, president of Nichols Brothers, said community support has been widespread in Langley. He cites supportive waterfront home and business owners by name, and adds the mayor, city council, church and business leaders to the list. “We’ve had tremendous support from every neighbor,” he said. He added that, in his opinion, all work done on the Capital Queen was “well within the contract” with the city of Langley. City council members said they do not yet have a clear sense of how Langley residents feel about having what appears to be a large industrial operation in the Langley Harbor. Councilmember Neil Colburn said he has been “accosted” in the street by constituents looking for information about the project. But none of them, he said, expressed their opinions. “I don’t know how the constituents feel about it.” Nichols said the Capital Queen job is no bigger than others his company has done in Langley during the 20 years it has owned the dock there. The fact that the boat sits high on a barge simply makes it appear like a larger job, he said. Although Colburn said he has not yet spoken to Nichols about work in the Capital Queen, he said he sensed a rift building between the city and the boat building company. “I sensed that they were uncomfortable with the questions the city asked,” Colburn said. Council member Bill Hawkins said he, too, is waiting to find out what his neighbors think about the Capital Queen. “It’s been remarkably quiet,” he said. Mayor Lloyd Furman said Snyder’s administrative review would not have hampered work on the Capital Queen, as the boat’s owners apparently feared. “There wouldn’t have been a stop work order issued without the full council’s support,” he said. Furman did not blame Snyder or anyone else for the decision to move the boat to another facility. “There isn’t any blame for it,” he said. “It’s a decision made by others.” Furman said he has heard both supporters and opponents of the project. On Monday, he received “two quite angry calls,” after the project was killed, but earlier “two people came in to complain” about the project. The city’s design review board and planning advisory board are expected to begin reviewing the project in January. Record editor JIm Larsen contributed to this story.”