PORT ANGELES — The City Council, for a second time, delayed Tuesday adopting a plan for Peninsula Plywood to pay its delinquent utility bills.
The Port Angeles City Council did not adopt a proposed repayment plan for $293,092, which includes $13,762 in interest, because PenPly representatives were not available for questions at the meeting.
As part of the agreement, the city would forgive the additional $5,482 in interest it owes.
The council at its Oct. 4 meeting first postponed taking action because the staff proposal would have waived all interest.
Tuesday’s motion passed 4-2 with Mayor Dan Di Guilio and council member Pat Downie opposed.
City Councilman Brad Collins, who made the motion, said he wanted to hear from the company how the repayment plan will affect the mill.
Speaking against the motion, Di Guilio said, “I think we need to send a message that this council is serious about [PenPly] paying its utility bills.”
City Manager Kent Myers said the mill’s managers were out of town.
The company also owes the Port of Port Angeles $82,783 in rent.
Port Executive Director Jeff Robb said he expects a repayment plan from the company within the next two months.
The mill on Marine Drive, which employed about 130 people as of July, has been struggling since Peninsula Plywood LLC reopened it in March 2010.
It had been shuttered since its previous owner, Klukwan Inc., closed it in November 2007.
To keep it from closing again, the mill received a $500,000 grant from the state Department of Commerce, sponsored by the city, last summer.
It had to make a $50,000 payment on its delinquent utility bills and raise another $700,000 as part of that agreement.
The company has remained current on its utility and rent payments for the past two to three months, according to the city and port.
PenPly investor Grant Munro said earlier this month that the mill is still having a difficult time but has referred all additional comments to President Josh Renshaw.
Renshaw has not returned repeated requests for comment.
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Reporter Tom Callis can be reached at 360-417-3532 or at tom.callis@peninsuladailynews.com.
