Rayonier to be approached about HarborWorks buying site of ex-pulp mill
By Tom Callis, Peninsula Daily News
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The development authority board decided at its monthly meeting that it will seek $300,000 in loans from the city of Port Angeles and the Port of Port Angeles — $150,000 from each entity — to fund its expected operating costs.
It also unanimously approved $195,982 in expected expenses for operations from August through December.
The salary for a permanent executive director — yet to be selected — was budgeted at $12,000 per month, but the exact salary for that job hasn't been determined yet.
The $195,982 in listed expenses also had some overlaps.
Though HarborWorks' executive director hasn't been picked, the $12,000 salary was listed as beginning in August — $60,000 through December — and overlapped with the cost for an interim manager at a cost of $8,000 for two months' work in August and September.
If approved by the City Council and port's board of commissioners, the $300,000 in loans would be the first funds allocated to HarborWorks since it was created by the city and port in May.
The development authority was formed to oversee — and hopefully speed up — the cleanup of both the Port Angeles Harbor and the 75-acre mill site.
It is also expected to direct future development of the waterfront property at the end of Ennis Street on the Port Angeles Harbor.
No talk with Rayonier
Orville Campbell, HarborWorks board chairman, said the development authority hopes to repay the loans through development of the mill site.
In order to do that, it would have to acquire the land from Rayonier Inc.
HarborWorks has not approached Rayonier about allowing the group to acquire the site, Campbell said, but expects to do it in the next 60 days or so.
"It's all speculation at this point," Campbell said.
It has been speculated in some city circles for several years that Rayonier — tired of yearly cleanup costs and bureaucratic hassles — might be interested in unloading the property before the cleanup was completed.
Rayonier has had no comment on this in the past.
Campbell said the board doesn't know how much responsibility for the cleanup HarborWorks would inherit if it acquired the property.
"I doubt Rayonier would be removed from liability," he said. "It could be drastically reduced."
Campbell said HarborWorks would pursue state and federal grants to pay back the loans if it can't acquire the property.
Directing cleanup
Campbell said that acquiring the property would allow HarborWorks to help direct the site's cleanup.
The 75-acre site is contaminated with toxins from the former Rayonier pulp mill that operated for 68 years before closing on March 1, 1997.
The U.S. Environmental Protection Agency in 2000 called the Rayonier site "moderately contaminated," perhaps 2 or 3 on a scale of 10.
A cleanup project for the site began in 2000 to get rid of the PCBs, dioxins, arsenic, cadmium, mercury, lead and other hazardous contaminants left by the pulp mill.
It is being supervised by Rayonier, the state Department of Ecology and the Lower Elwha Klallam tribe.
The tribe would be involved with any transfer of ownership of the property, Campbell said.
Reasonable amount
Any funds from the loans not used in 2008 would roll over into the next year, Campbell said.
The loan amounts are a "reasonable number to put into a working capital amount for [HarborWorks]," Campbell said.
He expects the City Council and the port commissioners to consider HarborWorks' budget and loan request at their next meetings.
Campbell said the board will determine if it needs more funds from the city and the port when it creates a 2009 budget toward the end of the year.
The loans are not expected to have any interest or payment timeline, Campbell said.
Executive director
The group's list of expenses includes costs for a contracted or employed executive director and other staff members, community outreach and office space.
The expected $12,000 month cost for a executive director could be less.
It will depend on whether the board members decide they will contract the executive director's position, or hire the executive as a staff member.
Presently, Jim Haguewood is serving as interim manager, Campbell said, having contracted to work in that job for 60 days for $8,000.
Haguewood is the director of the Clallam County Business Incubator, and the former head of the Clallam County Economic Development Council.
The person chosen for the executive director's role would manage HarborWorks' role in the cleanup of the Rayonier site and its future development.
Contracting the position would be cheaper, but such an option might provide less accountability, board members said.
Though the board didn't come to a decision, members affirmed that the executive director would need to have a local presence.
"I don't know how we can be successful if we do not have the community face that we need," said Jerry Hendricks, board member and former Port of Port Angeles executive director.
Campbell said the board is expected to make a decision about long-term management at its next meeting.
That will be at 2:30 p.m. Sept. 3 in the Vern Burton Memorial Community Center, 308 E. Fourth St., Port Angeles.
The number of staff needed to work under the executive director has yet to be determined.
Campbell said the board expects to rent an office for staff members.
Howard Ruddell, board member and owner of Ruddell Auto Mall, said the office would serve as a "store front to reach out to people and let them know what's going on.
"It would be of concern if we didn't have a sense of permanence."
HarborWorks is an independent, public entity, and its five-person board was created on June 4.
The City Council selected Ruddell and Karen McCormick, First Federal president and CEO, as board members.
The port named Hendricks and retired attorney Bart Irwin to the board.
The four members chose Campbell, who is a former Port Angeles deputy mayor, as the board's fifth member.
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Reporter Tom Callis can be reached at 360-417-3532 or by e-mail at tom.callis@peninsuladailynews.com
Last modified: August 06. 2008 9:00PM