PORT ANGELES — Harbor-Works formally came to an end Tuesday.
The City Council voted unanimously to dissolve the public development authority 17 months and more than a million dollars after creating it.
The decision came after board members of the Harbor-Works Development Authority thanked the city for its support and urged continuing pressure on the state Department of Ecology to ensure that environmental cleanup of Rayonier Inc.’s former pulp mill site doesn’t continue to face delays.
Negotiations stalled
Harbor-Works, which consisted of five board members and a salaried executive director, was chartered to acquire and redevelop the 75-acre property as well as assist in its environmental cleanup.
But last month, after negotiations stalled in July and Rayonier declined to come back to the bargaining table, Harbor-Works moved for dissolution.
Orville Campbell, board chairman, said the project was not a loss even though the property was not acquired.
He said Harbor-Works’ reports on the costs of cleanup for the property and prospects for development are valuable documents.
Foes criticized
“We have a high-quality library . . . that will be of great value to future property owners,” he said.
Board member Jim Hallett, while addressing the council, criticized Harbor-Works opponents who he said made up a vocal minority and weren’t willing to participate in “civil discourse.”
“We don’t have to operate on the fringes,” he said. “We don’t need to give a voice to those unwilling to participate in the process.”
The city and Port of Port Angeles allocated Harbor-Works $1.3 million from their economic development funds.
Harbor-Works will return about $168,000 in unused funds to the city. Half of those funds will then be sent to the Port of Port Angeles.
Campbell said the funds will likely be returned Friday, Oct. 29, when Harbor-Works’ account with Kitsap Bank is closed.
The public development authority has placed an additional $13,250 into a trust account to cover any unexpected expenses, such as legal fees.
What’s left of those funds will be returned to the city and port after a year.
Harbor-Works board members approved $74,306.87 in severance pay for the group’s executive director, Jeff Lincoln, per his contract.
The City Council voted unanimously to form Harbor-Works, with support from the port, in May 2008.
Three of the current council members — Mayor Dan Di Guilio, Cherie Kidd and Deputy Mayor Don Perry — sat on the council at the time.
‘It was tough’
Kidd and Perry both thanked the board members at the meeting.
“We know it was tough,” Perry said. “I still think it was a great idea, but unfortunately, it didn’t work out.”
Harbor-Works was also created to acquire a large tank on the mill site that the city needs to help prevent sewage overflows.
The City Council also on Tuesday approved purchasing the tank and 11.86 acres of Rayonier’s property for $995,000.
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Reporter Tom Callis can be reached at 360-417-3532 or at tom.callis@peninsuladailynews.com.
