PORT ANGELES — Peninsula Plywood Group LLC must come up with one year’s rent by Friday to get the keys to the former KPly mill on Marine Drive, says the Port of Port Angeles executive director.
Port interim Executive Director Bill James said the company — made up of Port Angeles investors Josh Renshaw, former Mayor Grant Munro and Wilmer Possinger Jr. — must come up with a $162,000 bond as well as liability insurance by the end of the week, as stipulated in its lease with the port, to get full use of the property.
“After that, he [Renshaw] picks up the keys to the plant and he opens for business,” James said.
Despite several attempts to reach him, Renshaw — as well as the other PenPly investors — have been unavailable for comment since the lease for the 19-acre site was signed July 31. The company also acquired the mill’s equipment from Sterling Savings Bank that day.
The monthly rent is $13,500 plus a 12.84 percent lease hold tax, James said.
He said the company, which is not hiring employees at this time, has six or seven senior staff members.
It must hire 45 employees within the next three months to comply with the lease.
Renshaw, Peninsula Plywood president, has said that the company wants to put 172 people to work.
The mill’s former owner, Klukwan Inc., stopped production and laid off employees in November 2007. It closed the mill in April 2008 and permanently laid off 132 employees, including Renshaw, who was a sales manager.
Renshaw has said that the company’s goal is to produce 5 million board-feet of plywood a month.
But before the mill begins operations, the idled equipment needs to be upgraded.
According to the lease, repairs must begin within 45 days after the deal was signed.
James said he didn’t know how much repairs will cost the company.
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Reporter Tom Callis can be reached at 360-417-3532 or at tom.callis@peninsuladailynews.com.
