Hello Jason,
Leaks were most obvious in various lockers along the cabin edge under the rails. Like you we tried applying sealant to the cap rails and doing some piecemeal re-bedding of hardware with variable, partial success. Also we noticed rust stains starting to appear around some of the stainless fastenings along the bulwarks- good evidence of water intrusion and the onset of crevice corrosion to the fasteners or fittings.
Regarding the insulating core, TAHANAN does have it, but it is PVC foam and not balsa. I think that was most common but every one of these boats is unique. We did not have any problem with water intrusion there. I would consult with Todd on how or if to address that as needed.
As far as where to take the boat, the job is something any qualified boatyard should be able to handle ("should be", not to be confused with "will be"). Not having to get the boat on a truck will be a significant savings, and certainly having the boat close to home will allow you to be involved in much more of the work (and once you have the boat in a dry, covered shop you will start thinking of all kinds of things you could finally get done...) Not all yards allow owners to work on the boats so check on that, also check on access times- if they lock the gates evenings and weekends it doesn't do you much good. Keep in mind this is a fairly involved project, so make sure the yard you are working with is definitely where you want to be. Moving it once it is half taken apart will cost extra!
There is another CG 36 for sale in Anacortes right now that has suffered a similar problem. If the broker could put you in touch with the owner they might have some input as well.
Todd is a fantastic resource. If you opt to have someone else do the work he would probably be willing to provide consultation on the job and work with you and your boatyard to outline a repair plan. Having the Cape George name on the repair process probably has some re-sale value if you are thinking of selling in the future.
Having a dry boat will make you a happy sailor. Let me know if you have more questions. Good luck,
Richard