PORT ANGELES — Peninsula Plywood will have until December at the earliest to begin repaying the nearly $300,000 it owes the city of Port Angeles for utilities.
The City Council chose to delay taking action Tuesday for the third time after PenPly President Josh Renshaw requested an extension while the struggling mill develops a new business plan.
The council voted 7-0 to table the issue until its Dec. 6 meeting.
By then, Renshaw assured the council, the plan will be completed and the company will be able to better assure the city that it can pay the $293,092 it wants to collect.
The council had delayed taking action Oct. 4 because the initial proposal would have forgiven all interest.
It also delayed action Oct. 18 because PenPly representatives were not present.
A few of the council members voiced their displeasure.
“I guess I’m mystified by why we couldn’t have heard this earlier,” said Councilman Max Mania, referring to Renshaw’s request.
Renshaw told the council he wasn’t trying to avoid the issue.
He said he was out of town on a business trip and was not aware the matter was going to be addressed so soon.
“This is not a form of avoidance,” he said.
Help mill succeed
The council agreed to delay the matter further, with some members noting a desire to help the mill succeed.
“There’s no way we can collect [$293,092] if the mill goes down,” Mayor Dan Di Guilio said.
The mill has been paying its current city utility bills and rent to the Port of Port Angeles for the past several months.
PenPly still owes the port $82,783 in rent.
Renshaw said during a break at the meeting that he is still working with the port to develop a payback plan.
He declined to comment on how the mill is doing in regard to the number of employees and production levels.
The payback plan with the city includes $13,762. It waives all interest accumulated after June, which last month was $5,482.
PenPly had made a $50,000 payment on its delinquent utility bills as required by the $500,000 grant it received last summer from the state Department of Commerce.
The mill’s investors also had to raise another $700,000.
PenPly reopened the mill to much fanfare in March 2010.
It had been shuttered since November 2007 after its previous owners, Klukwan Inc., went bankrupt.
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Reporter Tom Callis can be reached at 360-417-3532 or at tom.callis@peninsuladailynews.com.
