Rayonier mill site deal next month?
A lone Canada goose appears to be standing watch on the shoreline of the site of the former Rayonier Inc. pulp mill at the eastern end of Port Angeles Harbor earlier this week. -- Photo by Chris Tucker/Peninsula Daily News
THE HARBOR-WORKS Public Development Authority Board of Directors will interview five candidates for its executive director position next week.
Orville Campbell, Harbor-Works board chair, said the last two or three finalists will be invited to be interviewed in person for "closer scrutiny."
He didn't know when that may occur, but said that an executive director is expected to be chosen on Dec. 1.
An accounting system for the public entity is expected to be set up within the next two weeks, he said.
Until that occurs, Harbor-Works cannot deposit or spend any of its funds from the city of Port Angeles and Port of Port Angeles, both of which gave the entity formed in May $150,000.
According to Harbor-Works' budget, the executive director will be paid $12,000 per month.
Haguewood, who is the Incubator @ Lincoln Center director and former head of the Clallam County Economic Development Council, is acting as interim executive director.
Haguewood initially was hired to work for $4,000 per month from June through August.
The Harbor-Works board extended his term for 75 days for $7,500 on Sept. 3.
Haguewood has not been paid, since the accounting system has not been set up.
Orville Campbell, Harbor-Works board chair, said the last two or three finalists will be invited to be interviewed in person for "closer scrutiny."
He didn't know when that may occur, but said that an executive director is expected to be chosen on Dec. 1.
An accounting system for the public entity is expected to be set up within the next two weeks, he said.
Until that occurs, Harbor-Works cannot deposit or spend any of its funds from the city of Port Angeles and Port of Port Angeles, both of which gave the entity formed in May $150,000.
According to Harbor-Works' budget, the executive director will be paid $12,000 per month.
Haguewood, who is the Incubator @ Lincoln Center director and former head of the Clallam County Economic Development Council, is acting as interim executive director.
Haguewood initially was hired to work for $4,000 per month from June through August.
The Harbor-Works board extended his term for 75 days for $7,500 on Sept. 3.
Haguewood has not been paid, since the accounting system has not been set up.
By Tom Callis
Peninsula Daily News
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Campbell said the agreement will allow Harbor-Works to begin the due diligence process prior to acquiring the property, which is contaminated with pockets of PCBs, dioxins, arsenic, cadmium, mercury, lead and other hazardous contaminants created during the 68 years that Rayonier operated a pulp mill there.
Harbor-Works was created by the city of Port Angeles and the Port of Port Angeles in May to help direct the cleanup process, begun in 2000, and the future use of the site of the former mill, which closed in 1997.
Due diligence will involve using more than 10 years of information, Campbell said, and he couldn't estimate how long it will take.
"We'll have a decision point at the end of that about whether or not we go ahead with the acquisition and control of the property," he said.
Charles Hood, vice president of corporate affairs for Rayonier, could not be reached Thursday to confirm that the company plans to enter into a purchase and sale agreement with Harbor-Works.
On Wednesday, after a meeting with the Harbor-Works board, Hood said that acquisition of the property was discussed, but only in "very general terms."
"In my mind so far, acquisition of the property is nothing more than hypothetical at this point," he added.
Campbell said that the due diligence process will include defining the assets and liabilities associated with the site, reviewing what is known about the degree of contamination, and assessing what is owned by Rayonier and government entities such as the state Department of Natural Resources.
"It will be an agreement that commits both parties to work together for site acquisition, restoration and redevelopment," he said.
Take some liability
Rebecca Lawson, the state Department of Ecology's toxics cleanup program regional manager, said Harbor-Works would be liable for funding at least some of the cleanup if it is the property owner.
Lawson said Harbor-Works could agree to fund the cleanup entirely.
If it failed to honor that agreement, Rayonier then would be required to pay for the cleanup, she said.
"Rayonier is not escaping liability," she said.
Campbell has said that acquiring the property would allow Harbor-Works to define the future use of the site, which would determine the level of cleanup.
The cleanup process of the Rayonier site began in 2000, and is under the supervision of Ecology, Lower Elwha Klallam tribe, and Rayonier.
A Lower Elwha Klallam village is buried under the site.
Wednesday meeting
Campbell said that the decision to enter into a purchase and sale agreement came out of a Wednesday meeting between representatives from Harbor-Works and Rayonier.
The meeting took place at the Lincoln Center, 905 W. 9th St., Port Angeles.
Harbor-Works representatives at the meeting were Campbell, former Port Angeles deputy mayor; Jerry Hendricks, board member and former port executive director; and Jim Haguewood, interim executive director and Clallam County Business Incubator director.
Rayonier representatives were Hood, Carla Yetter, environmental manager; and Don Schwendiman, legal counsel.
Schwendiman said Rayonier is interested in working with Harbor-Works because of the public entity's ability to draw on resources from the Port of Port Angeles and city of Port Angeles.
"They are in a unique situation," he said.
If Harbor-Works acquires the property, it would be eligible for a remedial action grant from Ecology, Lawson said.
The grant typically covers 50 percent of the cost of cleanup, she said, adding that it is available only to public entities.
Harbor-Works would have to match Ecology funds.
Hiring assistance
Harbor-Works will hire people with the expertise needed to assist it in the due diligence process, Campbell said.
Campbell said the people could include consultants and environmental engineers.
He said he couldn't estimate when the hirings would be made.
The Harbor-Works budget lists $12,000 a month for professional and environmental consultant services.
The site, which is at the end of Ennis Street, is worth approximately $5.2 million, according to the Clallam County Assessor's Department.
Campbell has said that Harbor-Works could get state Department of Ecology grants, assistance from Rayonier, as well as loans from the city of Port Angeles and Port of Port Angeles to pay for purchasing the property.
Rayonier was first contacted about Harbor-Works acquiring the property in May by former Port Angeles City Manager Mark Madsen, said Michael Herman, Rayonier vice president and general counsel.
Acquisition of the property was discussed at a June 23 meeting that involved Campbell, Rayonier CEO Lee Thomas, Madsen, Mayor Gary Braun, Port Angeles City Council member Karen Rogers, and Bill Bloor, city attorney.
Harbor-Works is funded by $300,000 in the form of two $150,000 loans from the Port of Port Angeles and the city of Port Angeles.
The five-member Harbor-Works board also includes Howard Ruddell, owner of Ruddell Auto Mall; Karen McCormick, president and CEO of First Federal; and Bart Irwin, a retired attorney.
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Reporter Tom Callis can be reached at 360-417-3532 or tom.callis@peninsuladailynews.com.
Last modified: October 24. 2008 4:50AM