PORT ANGELES — Because of a less-than-promising market analysis for Rayonier Inc.’s former mill site, the public development authority responsible for ensuring its redevelopment may end up transferring much of its waterfront area to the Port of Port Angeles.
Port Angeles Harbor-Works Development Authority board chairman Orville Campbell told the Peninsula Daily News on Saturday that he thinks the port would be the best public entity to control the waterfront on the 75-acre parcel for the long term.
That’s because the draft market analysis by Berger-ABAM of Seattle, which Harbor-Works released released Friday, said that there will likely be little demand for marine-based industries and other development on the site over the next five years.
The port “could take the 24 acres on the west side and market and develop it,” Campbell said.
“All that I’m doing is suggesting a way in which that can happen.”
Campbell did not rule out the port — which is funding Harbor-Works along with the city of Port Angeles — owning the entire property.
“I think the bottom line is that the immediate substantial development for the property is probably unrealistic,” he said.
“The port might be the logical entity to ultimately take control of that property, market it and hold it for appropriate development,” he added.
When asked if wasn’t that the role given to Harbor-Works — which charter says it will direct redevelopment of the site — Campbell said: “No. Harbor-Works’ mission is to take control of the property to get it cleaned up and then turn around and market it or sell it to others.”
If such a transaction occurs, Campbell said it would be after the property is cleaned up enough to allow redevelopment, which he maintains is an expense that the current owner, Rayonier, will pay.
The site at the end of Ennis Street in Port Angeles has pockets of toxic contamination from a pulp mill that was operated there for 68 before it was closed in 1997.
It has been a state Department of Ecology cleanup project, with Rayonier and the Lower Elwha Klallam tribe as partners, since 2000.
Board to discuss idea
While Campbell said no decisions have been made on whether the port will own a portion of the site or what kind of development will occur, the three port commissioners will be discussing the idea of port ownership at their Monday meeting.
“We’ll go over some of that stuff,” said port Commissioner George Schoenfeldt.
“I think [port] staff and Harbor-Works want us to clarify our position a little better,” he added.
Schoenfeldt said the port assuming ownership of at least some of the property is not a new idea, although it has recently gained more attention.
While he said he couldn’t speak for the city, the port’s interest in directing marine development on the site was one of the reasons why it agreed to put its support behind Harbor-Works.
“We’ve talked about the Rayonier property before Harbor-Works was even created,” Schoenfeldt said.
“And we looked at it sitting there and everything,” and asked, “Is there a place for the port to be involved in this?”
When asked why did the port needed Harbor-Works at all, Schoenfeldt said it’s an issue of funding and liability.
By jointly supporting Harbor-Works, the city and port have been able to combine funds for the project — totalling $1.3 million in economic development loans — and they can shield themselves from cleanup liability, he said.
Campbell and Schoenfeldt both said that the port would be better at handling redevelopment of the site’s waterfront since it has an agreement with the state Department of Natural Resources to manage tidelands adjacent to port property.
Port commission President John Calhoun said acquiring any of the Rayonier property would be a reasonable use of property-taxpayer money, even though Harbor-Works’ analysis says the land won’t be marketable for about five years.
“The port is in the economic development business,” he said. “We have the capacity to develop infrastructure and to market the property aggressively.”
Calhoun added that any marine-based development would not prohibit the property from also hosting a tribal cultural center, as has been proposed by Harbor-Works Executive Director Jeff Lincoln.
He said the port also would work with the Lower Elwha Klallam tribe to prevent cultural artifacts from being uncovered. Part of the property is former location of an ancient Klallam village.
The city, with support from the port, created Harbor-Works in May 2008 to acquire the property for redevelopment and give the city ownership of a large tank on the site.
The tank would be used to temporarily store untreated sewage and storm water that would otherwise overflow into Port Angeles Harbor during heavy rain.
Harbor-Works will negotiate its role in cleanup with Rayonier through a purchase and sale agreement. The public development authority intends to decide whether or not to acquire the site by August.
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Reporter Tom Callis can be reached at 360-417-3532 or at tom.callis@peninsuladailynews.com.