PORT ANGELES — The Port of Port Angeles granted a $500,000 loan to the Harbor-Works Development Authority on Monday.
Determining how to pay for a $160,000 chunk of the loan has been left to the discretion of interim Executive Director Bill James, according to language of a motion that commissioners approved 3-0.
The port had committed $200,000 to the public development authority in its 2009 budget. It also has $140,000 remaining from its $200,000 allocation of 2009 “flexible projects.”
To cover the remaining cost of the Harbor-Works loan, the port could take an advance from its 2010 budget or draw funds from 2009 projects that won’t likely be spent.
“I can’t tell you exactly which ones [projects] they are and exactly what categories they’re going to come out of,” James said.
“The $160,000 could come from either one of those sources.”
‘Due diligence’
Commissioners John Calhoun, George Schoenfeldt and Jim McEntire voted 3-0 to approve the half-million-dollar loan, which will fund a site assessment called “due diligence” on the 75 Rayonier Inc. acres that once hosted a pulp mill.
This year, the Harbor-Works budget is estimated at $736,200 and includes $277,200 for administration, $174,000 for legal, $100,000 for reserves and $185,000 for projects.
Harbor-Works has also asked the city of Port Angeles for a $500,000 loan.
Each agency gave a $150,000 loan to Harbor-Works last year to help with startup costs.
Lengthy consideration
“We’ve had this under consideration for several weeks,” Calhoun said.
“I, for one, have been satisfied that Harbor-Works is on the right track with the detailed milestones and budget outline that they’ve provided us and the public.
Harbor-Works was formed to lead the cleanup and redevelopment of the Rayonier mill site at the foot of Ennis Street.
The site has been a state Department of Ecology cleanup site since 2000.
“I just want to state that I’m totally in favor of appropriating the entire $500,000 now — it’s either now or later — and I think the $160,000 that we don’t have directly available now is certainly available within our budget without stressing, damaging or delaying any other project that we have proposed,” Calhoun said.
“I think we need to continue to show full support for Harbor-Works, for its intended cleanup, restoration and economic development of the site.”
Need for the money
Jeff Lincoln, Harbor-Works executive director, told port commissioners that the public development authority “obviously cannot proceed with the funding balance that is remaining from the initial loans that were made.
“Harbor-Works, as the port does, will operate like a business,” Lincoln said.
“To that end, we will recognize the interest due. We will recognize on our books the liabilities of those loans with every intention of repaying them with the interest that’s called for in the loan agreements.”
Said Calhoun: “Now is not the time to shrink from providing the necessary resources for your ambitious time line.”
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Reporter Rob Ollikainen can be reached at 360-417-3537 or at rob.ollikainen@peninsuladailynews.com.
