PORT ANGELES — The city and Port of Port Angeles may be left nearly empty-handed when they seek money back from the Harbor-Works Development Authority.
Harbor-Works Executive Director Jeff Lincoln said nearly all of the $1.3 million the city and port loaned the public development authority from their economic development funds will be spent whether or not it dissolves.
“There will be some money going back to the city and port,” he said. “I hoped there would be more.”
Asked for a dollar estimate, Lincoln said he couldn’t provide one.
“I haven’t done the [accounting] books,” he said.
Lincoln said Harbor-Works has spent more in the last couple months than it anticipated because of deadlocked negotiations with Rayonier Inc.
The additional expenses went to attorneys, he said.
“Based on the difficulties on the negotiations, we spent more on legal services than we would have had we been more successful with working with Rayonier,” Lincoln said.
In total, he said Harbor-Works has spent about $350,000 on attorneys.
Another $25,000 has gone to a public affairs company.
The rest of Harbor-Works’ funds have been spent on operating costs and its “due diligence” reports.
Those reports were to determine how the 75-acre property could be redeveloped, and the risks and liabilities associated with it.
The reports included analysis of environmental contamination and the presence of Native American artifacts and remains.
The loans would have been repaid through development of the property if Harbor-Works acquired it.
Port of Port Angeles Executive Director Jeff Robb said in July that the port understood that if the property could not be acquired, the loans would not be repaid.
“We understood there was a risk,” he said.
The city also understood there was a risk, City Manager Kent Myers said.
On Tuesday, Robb said he understood that there may not be much returned.
“We weren’t expecting them to return a huge amount of money back,” he said.
Robb and Myers both said Harbor-Works was worth the investment.
They said that’s because Harbor-Works’ “due diligence” reports will be open to the public and would be useful for any prospective developer.
“The downstream benefits will be there,” Robb said.
“It’s going to expedite the process and the due diligence process has made it much clearer what is really involved in that site,” he said.
Harbor-Works board members agreed.
“As a community member, I think that the port and the city made a right call to form the PDA [public development authority], made the right call to take a run at this and I think in the long term, the public will get a return on this investment,” said board member Jim Hallett.
At its Thursday meeting, the board will discuss Lincoln’s severance package if it decides to dissolve, said Chairman Orville Campbell.
Lincoln’s employment agreement says he will be given 180 days salary and stipend for health benefits as severance if his position is terminated as long as he is not fired for poor performance.
His salary is $130,000 a year.
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Reporter Tom Callis can be reached at 360-417-3532 or at tom.callis@peninsuladailynews.com.
