Rayonier Mill, Harbor-Works PDA, Local Taxes, Public Input

I don’t have a firm opinion one way or the other on this; it’s a complicated contentious issue. Today’s PDN has an excellent letter to the editor that raises some important questions. The few other times I’ve reprinted a PDN letter, I’ve left out the author’s name. But the author of this letter, Norma Turner, has been active in local politics, and I’m assuming she would want her name used.

Here’s the entire letter:

The Peninsula Daily News’ series about Rayonier mill property from February 8th through 10th underscored why the Harbor-Works Public Development Authority chairman said it would take 12 to 18 months to complete “due diligence” on the site. Forbes Business Website defines due diligence as “the care a reasonable should take before entering into an agreement or a transaction with another party.”

The board approved completing the purchase and sale agreement by April 2009. (“Harbor-Works wants mill site by April. P.A. agency to use loans to buy Rayonier property,” Feb. 5th PDN.) How did eighteen months get reduced to three?

Harbor-Works is funded with local tax dollars — but spends it without customary public-purse safeguards. Every executive-level position has been filled without public advertisement, including one at $195 an hour and another at $125 an hour. Two weeks ago they decided to hire somebody who did not even apply for the position, relying instead on private conversations.

The total cost to taxpayers of acquiring the Rayonier site remains a huge unknown. Cost was one of several important issues never answered at the City Council/Port of Port Angeles meeting. PDA ownership of Rayonier’s property means a loss of at least $50,000 a year in property taxes. Responsibility for removing the pier, if it is removed, is estimated at $4 million by the State Department of Natural Resources, and the site cleanup costs cannot be determined until the extent of contamination is fully known and remedies are selected.

Rayonier’s aggregate market value is more than $3 billion. It’s 2007 annual financial report reports a “very good year,” with plans to raise stockholders’ dividend payments. Meanwhile, the state and local governments’ balance sheets are grim. Why are local tax dollars being spent on this project?