PORT ANGELES — The owners of the shuttered Peninsula Plywood mill will not be actively pursued for $1.6 million that the company owes to the Port of Port Angeles.
Port commissioners decided Monday to not pursue the summary judgment against Peninsula Plywood issued by Clallam County Superior Court for breaching agreements that covered leasing, licensing and equipment rental on the port-owned land.
Port attorney Dave Neupert of Port Angeles said the judgment against the plywood maker remains filed in court and can be pursued again if circumstances warrant.
The company “does not appear to have assets available to apply toward that judgment,” he said.
“Further efforts at the present would not likely be productive.”
In a later interview, Port Commission President John Calhoun said the filing stays active for up to 10 years, then can be refiled for another 10 years.
“We’ve gathered enough information to make the assumption that there are no assets to be gained, so we will not pursue it any further,” he said.
The debt-plagued company at 439 Marine Drive closed Dec. 20 after producing plywood for 22 months.
PenPly owed the city of Port Angeles, state Department of Labor and Industries and the Port of Port Angeles $2.4 million, including $204,443 to the port for unpaid bills and $297,432 to the city.
The plant’s equipment was auctioned off in June.
Demolition, estimated to cost up to $1.9 million, is expected to begin by December on the mill, which is on a 19-acre site off Marine Drive west of Valley Creek.
Sealed bids for the demolition contract are scheduled to be opened Sept. 5.
The port wants the site to be used for marine trades.
After environmental cleanup, development could occur in 2014.
Munro LLC is leasing 7 acres of the site for log storage under an agreement that runs through March 2013, owner Grant Munro said in an earlier interview.
Munro was a PenPly co-investor and co-owner.
Munro has contracted with Hermann Brothers Logging & Construction of Port Angeles to run the log yard, he said.
Senior Staff Writer Paul Gottlieb can be reached at 360-452-2345, ext. 5060, or at paul.gottlieb@peninsuladailynews.com.
