Port of Port Angeles renews a lease agreement

Published 3:30 pm Tuesday, March 24, 2026

PORT ANGELES — Port of Port Angeles commissioners renewed a lease with Motive Power Marine, a discussion that raised broader questions about port revenue and its long-term growth.

Caleb McMahon, the port’s director of economic development, presented commissioners on Tuesday with a proposed lease renewal agreement with Motive Power Marine, a vessel repair company that leases a 10,000-square-foot warehouse and 19,000 square feet of adjacent land at 731 Marine Drive at $0.46 and $0.10 per square foot per month, respectively.

Commissioner Colleen McAleer noted the lease rate appeared low given the value of the industrial waterfront property.

McMahon said the market rate is probably closer to $1 per square foot, but it was set intentionally because of the value Motive Power Marine brings to the port.

He pointed to Motive Power Marine’s activity at Terminal 1, including a tanker currently at the dock, as an example of the type of work it generates.

“They drive a lot of traffic to our docks and support broader economic activity,” he said.

Port Executive Director Paul Jarkiewicz said there are not many places in the area where companies like Motive Power Marine could operate, making the port’s property a key asset in attracting and retaining those businesses.

McMahon said Motive Power Marine performs work at Terminal 1, where the port charges some of its highest rates, generating additional revenue tied to the lease.

Commissioners voted to approve the three-year lease renewal, with commissioners Connie Beauvais and Steve Burke voting in favor and McAleer voting against.

McAleer said her vote was intended to signal her expectations for the next lease term to include a higher lease rate.

In a separate update, commissioners reviewed a first-quarter grants report outlining active funding and pending applications tied to port projects.

Grants and Government Affairs Manager Katharine Frazier said shifting federal review processes has added uncertainty to the timing of awards, adding that staff have repeatedly been told decisions could take “maybe two more weeks.”

In her year-to-date financial report, Jennifer Baker, the port’s director of finance and administration, said revenue at the marine terminal is trailing the budget early in the year due to fewer chip barges than anticipated.

“We had budgeted two chip barges for last month and unfortunately those did not come in,” Baker said.

The port expected future shipments, but overall volumes are likely to decline.

“Our next chip barge is right now scheduled for the 14th of April,” Senior Operations Manager Scott Hough said.

Hough said chip exports could drop to about 60,000 tons this year, down from 105,000 tons last year, citing reduced demand following a pulp mill closure in British Columbia and increased competition among suppliers.

“The pie got smaller, so we’re trying to get a bigger piece of that pie,” he said.

Jarkiewicz said staff are examining ways to increase revenue across all business lines.

“It’s all-hands-on deck,” he said.

Commissioners said they are encouraged by the staff’s response and emphasized the need to adapt to changing market conditions.

“We can’t control whether a chip barge comes, but we can look to create new revenue,” McAleer said.

Marine life center

Melissa Williams, executive director of the Feiro Marine Life Center, updated commissioners on plans for the nonprofit’s new waterfront facility. She said the project is expected to cost between $33 million and $35 million and has secured about $18 million in federal funding.

A ceremonial groundbreaking scheduled at 3 p.m. April 8.

The new facility is expected to open in early 2028.

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Reporter Paula Hunt can be reached by email at paula.hunt@peninsuladailynews.com.