The Port of Astoria has less than 90 days to consider whether to accept a log handling company as a tenant, and begin exporting logs from the port’s pier facilities on the west end of the city.
The port commission voted unanimously Feb. 16 to accept a letter of intent from Westerlund Log Handlers of Bremerton. The port’s OK to the letter initiated the 90-day window. The agreement allows both the port and Westerlund to seriously assess
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Under a current proposal, the Port of Astoria could move its Pier 3 boatyard to North Tongue Point and use Pier 3 for a log processing facility. Photo: Joanne Rideout
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options regarding the deal.
Current port plans come in the midst of the agency’s discussion of its new strategic plan, and represent a significant change in focus from the previous strategic plan. The policy shift has some tenants worried.
Representatives from both Englund Marine Supply and Bornstein Seafood were at the Feb. 16 meeting and expressed concern about the effect of the proposed switch to heavy industry at Piers 1 and 3.
Both businesses relocated their operations to port property several years ago at the port’s invitation, in the context of plans in place then to create a cluster of maritime-related businesses and tourism efforts that included enhancing the Pier 3 boatyard, and plans for a Bornstein "Fish Factory" facility along the lines of The Tillamook Cheese Factory.
Under the proposed agreement with Westerlund, commissioners have discussed moving the boatyard east of Astoria proper, to North Tongue Point.
What’s next?
Englund Marine Supply’s Kurt England attended the February port meeting, and reiterated the company’s concern about not having been notified ahead of time that the log export project was in the works. He said the company was supportive of economic development.
He said Englund Marine has adopted a wait-and-see attitude about the future of company operations at the port.
"We want to see what the plan is, and hopefully be at the table when they make plans," he said.
Rich Griffith, of Bornstein Seafood, also attended the port meeting and read a lengthy letter from company owner Jay Bornstein. In the letter, Bornstein urged the agency to take its time and consider input from the community and all stakeholders.
"What we are really just trying to say is that we should slow down and go through the process," he said.
Bornstein said there are many questions to be answered that will determine what his company does next.
"We don’t know the extent of what might go in there," he said. He referred to a sentence at the end of his letter, in which he told commissioners that "all things will be on the table," meaning that his company would also weigh its options in light of the port’s change of strategy, and ultimately decide whether to continue to operate on port property.
"We want them to open up the process and get all of the stakeholders involved. There’s more than just us," Bornstein said. "Other small businesses at Pier 3 would be immediately impacted, and in terms of the greater area of Astoria and Clatsop County. Everybody needs to understand the message - slow down, open it up and get us to the table."
Port says tenant needs will be addressed
Port Executive Director Jack Crider said there was never any intention to exclude port tenants from the planning process. He cited concerns about competition as the motivation behind keeping initial talks with Westerlund under wraps.
"When you’re trying to negotiate and do business, having it hit the front page of the paper can be a challenge," Crider said of local newspaper headlines that were the public’s first word that the log deal was being considered. "Basically they sent us a letter of intent that was confidential. One thing led to another very quickly; it’s hard to do business."
Crider said it isn’t practical for the port to inform the public about every lease it signs with tenants.
"That’s why the public elects the board, to conduct that business for them," he said. "Obviously this is a big deal and it’s gotten the attention of the public. From day one, from the very first meeting, we discussed the impacts to our tenants. We never ignored this - it’s always been really out front. We want all our tenants to be successful."
Crider said that while it might seem more logical to run a log operation at the port’s North Tongue Point facility outside of town, that option is likely cost prohibitive. He cited dredging costs, the cost to build a heavy pier to handle ships, and other modifications - all of which would amount to a hefty price tag for capital improvements.
"We have to weigh whether it’s cost effective to spend tens of millions of dollars," he said.
Cruise ships and other maritime tenants
Crider said that so far the port has discussed the idea of debarking and descaling logs at Pier 3 and storing and loading them on ships at Pier 1. He said existing maritime tenants like the Marine Spill Response Corp’s Oregon Responder ship would not be affected. Research vessels would also still be able to call at the port as they have in the past.
And cruise ship traffic would also be welcome under the log-shipping proposal. While cruise ship numbers are down since the recession hit, local businesses get a financial boost every time a ship docks at the port and passengers tour the area.
"We feel we could work around it," Crider said of making room for cruise ships at Pier 1, and still include the local vendor market that has in past seasons greeted arriving passenger vessels.
"It’s all about scheduling. We would just need a couple of days to clean it [the pier] up," he said. "We would have to change the security plan and change some fencing."
Crider said the port is looking at a solid revenue-generating project as it considers the log export proposal.
"We have great location, a great opportunity," he said.
Crider said Westerlund will also be using the 90-day window to carefully assess the feasibility of the operation from their point of view. "One of the things we have asked Westerlund to do is to look at all the different options with the property we have."
He said one option would be to stage debarking and descaling operations, which could involve considerable dust, debris and equipment noise, at Tongue Point, and transport logs to Pier 1 for loading on board ship.
"They will weigh the additional truck traffic through town, and the additional cost," Crider said.