PORT ANGELES — The Port of Port Angeles granted Peninsula Plywood a concession on its lease by allowing the company to put up a smaller bond before the lease becomes effective rather than on a previously required one year’s lease.
Allowing the company to put up $10,000 now, and then the rest of the money for the other eight months in January, will allow plans to reopen the plywood mill to move forward faster, said Jeff Robb, port executive director.
Once the $10,000 — which is considered a lease on the total amount — is set aside in the form of a certificate of deposit and the company obtains insurance, it will mean the lease is effective and the company is then required to hire 60 people within 90 days, Robb said.
The dormant mill on Marine Drive near Valley Creek is on port-owned property.
The investment group planning to reopen the mill previously was to come up with $162,000 for the bond.
“This is some very good news,” Robb said.
“They are prepared to execute a bond in that amount.”
Unanimous vote
The commission voted unanimously Monday to approve the amendment to the lease.
“This is exactly the kind of thing we as commissioners like to see,” said Commissioner George Schoenfeldt.
“We wanted to see some job creation and we’re going the extra mile to help him get started again.”
Commission President John Calhoun said he supported amending loan as well.
“This agreement is designed to give PenPly every opportunity to get started, while also providing the minimum protection for the public assets,” Calhoun said.
“We’re at a place that this is acceptable, and we are excited to get those jobs back.”
45-day deadline
Repairs to idle equipment used by Klukwan Inc., which stopped production in November 2007, must also begin in 45 days.
The monthly rent for the property is $13,500 plus a 12.84 percent lease hold tax.
Klukwan Inc. closed the then-KPly mill in November 2007 and permanently laid off 132 employees in April 2008.
Josh Renshaw, who was a sales manager at the mill, has said PenPly’s goal is to produce 5 million board-feet of plywood a month at the mill, renamed with its original moniker.
He has spearheaded the effort to reopen the mill and is backed by a group of unnamed investors.
Renshaw on Monday thanked the port for supporting his company, which he says will put 172 people to work.
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Reporter Paige Dickerson can be reached at 360-417-3535 or at paige.dickerson@peninsuladailynews.com.
