PORT ANGELES — Port of Port Angeles commissioners unanimously approved lease amendments with Angeles Composite Technologies Inc., which increase rent for three buildings and lower it for a fourth.
The agreements approved Tuesday also extend the leases to May 2020.
ACTI manufactures high-tech composite parts for the commercial and aerospace market, including Boeing and Bombardier airframe manufacturers.
The company occupies four 25,000-square-foot office and commercial buildings on the port’s composite manufacturing campus, at 2138 W. 18th St., adjacent to the William R. Fairchild International Airport.
A lease for three buildings was negotiated in June 2000, and a fourth building — custom-built for ACTI — was leased in August 2011.
“Their current leases include rates that are both below and above market rates,” said Tanya Kerr, port property manager.
The new lease sets the monthly rent for the four buildings nearer to approximate market rates, Kerr said.
The monthly rate for three of the buildings will increase from 23.9 cents per square foot, or $5,975 per building, to 31 cents per square foot, or $7,750 per building.
The fourth building, which has 5,000 square feet of office space and 20,000 square feet of manufacturing space, was leased for .882 cents per square foot, or $22,050 monthly.
Under its new lease, that building has a mixed-use rate, with one rate for the office space, and another used for manufacturing space.
The office space will be leased for 71 cents per square feet, or $3,550, and the manufacturing space rate will be 36 cents per square foot, or $7,200.
Additionally, there were questions regarding the ownership of a heating and air conditioning system, and the maintenance and repair responsibilities for two autoclaves attached to the leased buildings, Kerr said.
The port agreed to reimburse ACTI for principal payments for the heat and air conditioning system for $96,693, and to assume ownership and maintenance.
Two autoclaves at the site, included in the lease, are 27 years old and are in need of major repair, Kerr said.
Lease for the two autoclaves will be reduced from $1,366 to $1,250 per month.
Kerr said changes in the lease payments will cost the port $121,992 annually, but new lease terms will add $495,625 in revenue to the port.
In discussions about the port’s general lease policy, commissioners were asked to give port staff a 20 percent leeway from current fair market value in negotiating port leases without pre-approval from commissioners.
The commission declined to give staff approval for 20 percent leeway.
Commissioner Colleen McAleer said that she didn’t want to see any lease negotiated to below market value, without extenuating circumstances.
“It undercuts private landlords in the area,” she said.
Commissioner Calhoun said he might consider a 10 percent leeway for negotiations.
The commissioners said that they might consider lease discounts in specific cases where a prospective major employer would bring in a large number of jobs to Clallam County, or a unique property where there is no private competition.
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Reporter Arwyn Rice can be reached at 360-452-2345, ext. 5070, or at arwyn.rice@peninsuladailynews.com.