PORT ANGELES — The closed Peninsula Plywood mill narrowly missed having its power shut off this week.
The company paid its most recent monthly utility bill of $20,500 at about 4:15 p.m. Tuesday.
City Manager Kent Myers said the mill on Marine Drive, which ceased production last month, would have had its utilities disconnected Wednesday if the payment hadn’t been made by about 5 p.m.
Mill President Josh Renshaw remains the company’s sole employee.
Renshaw said last week he is still working with the mill’s investors to get the facility restarted.
He couldn’t be reached for additional comment Wednesday morning.
The mill still owes $293,092 to the city for utilities. The city plans to forgive an additional $5,842 in interest.
Outstanding bills
Myers said the City Council will discuss what should be done with the outstanding bills at its next meeting at 6 p.m. Tuesday in council chambers at City Hall, 321 E. Fifth St.
PenPly also owes $82,783 in rent to the Port of Port Angeles.
The mill’s next monthly payment of $16,991 is due today.
That includes a payment of $1,757 in deferred rent that the mill was scheduled to begin paying this month as part of its lease agreement.
Port Executive Director Jeff Robb said Renshaw has assured him that the overdue payments will be made if the mill is able to refinance and restart production.
If that doesn’t happen, Robb said, there is little the port can do to recoup those costs.
Liens on equipment and other assets will first be made by lenders, which include Sound Community Bank, Enterprise Cascadia and the state Department of Commerce, he said.
“We would be second in line,” Robb said.
Robb said it’s possible that PenPly’s log debarking operation could be expanded if the mill can’t restart.
The logs are exported to China and must first have their bark removed.
Idea not yet talked about
Robb said the port has not yet talked to Renshaw or Grant Munro, a PenPly investor whose private firm sells the logs, about that idea.
The mill reopened in March 2010 after being shuttered by its former owners, Klukwan Inc., in November 2007.
It employed about 130 people at its peak in July, shortly after receiving a $500,000 grant from Commerce.
The last 15 employees left, other than Renshaw, were “furloughed” about two weeks ago, he said last week.
Robb said the mill provided $9 million payroll during its 20 months in operation.
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Reporter Tom Callis can be reached at 360-417-3532 or at tom.callis@peninsuladailynews.com.
