PAGE 2 | May 15, 2015 | NORTHWEST LABOR PRESS
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140
Mayor Hales ‘blind-sides’ labor after pulling
support on $500 million propane gas terminal
By Michael Gutwig
Editor & Manager
Portland Mayor Charlie Hales
blind-sided union construction
workers May 7 when he
abruptly pulled his support for a
propane gas export facility at the
Port of Portland’s Terminal 6.
Pembina Pipeline Corp. of
Calgary, Alberta, signed a letter
of understanding with the Co-
lumbia Pacific Building and
Construction Trades Council to
build the $500 million facility
with a union workforce esti-
mated between 600 and 800
over two years.
Once completed, the terminal
would create 35 to 40 perma-
nent jobs. That employment was
valued at approximately $7.2
million in wages and benefits
annually. Additionally, an esti-
mated $3.3 million in annual tax
revenues would go to the City of
Portland, $2.4 million to Mult-
nomah County, and $3.1 million
to Portland Public Schools.
Hales welcomed the an-
nouncement last September of a
half-billion-dollar investment—
the largest single private capital
investment in the city’s history,
with no taxpayer subsidies. The
project also had strong support
from the Port of Portland, busi-
ness groups, and organized la-
bor.
The propane terminal drew
loud opposition from the envi-
ronmental community.
Because of the early strong
support, the company spent
nearly $15 million to comply
with various city regulations and
requirements of the zoning
change process. Pembina
needed a zoning change to allow
for an above ground pipe be-
tween its storage tanks and the
shipping berth. [Zoning codes
allow for such pipelines at other
Port facilities on the Willamette
River.]
After several contentious
public hearings, the Portland
Planning and Sustainability
Commission, on a 6-4 vote, ap-
proved the zone change applica-
tion, with a condition that Pem-
bina pay a carbon fee of $6
million. The recommendation
now has to be adopted by the
Portland City Council. With the
first reading scheduled for June
10, proponents thought they had
majority support.
“We were totally blind-
sided,” John Mohlis, executive
secretary of the Oregon State
Building and Construction
Trades Council, said of Hales’
abrupt change.
“What kind of message does
this send to other businesses that
might be considering Portland?”
asked Mohlis, who is also a
member of the Portland Devel-
opment Commission. “Nothing
on this project changed. Pem-
bina had millions (of dollars) in-
vested, only to have the rug
pulled out from under them.”
In a press statement, Hales
said he had “spoken to countless
Portlanders. I’ve studied the tes-
timony at the Planning and Sus-
tainability Commission. I’ve
discussed this with colleagues
inside City Hall and in the busi-
ness community. I do not be-
lieve Pembina has made the
case as far as Portland’s envi-
ronmental standards are con-
cerned. And for that reason, I am
asking Pembina to withdraw.”
Pembina, in a followup press
release, said it would move for-
ward with its application.
The mayor is one of five
votes on the City Council, so
proponents of the project are
still hopeful they can get a ma-
jority. Commissioners Dan
Saltzman and Nick Fish are re-
garded as supporters. Amanda
Fritz is opposed. Steve Novick
is undecided.
Construction unions are plan-
ning a rally and propane gas bar-
becue prior to the council meet-
ing on June 10. Details had not
been finalized at press time.
Pembina’s overall plan is to
build a rail yard with propane
unloading equipment; eight
transloading holding tanks to
receive propane; refrigeration
equipment; two large, refrig-
erated propane storage tanks
capable of holding up to
800,000 barrels (approxi-
mately 33.6 million gallons);
facility piping connecting the
equipment; a control center,
warehouse and maintenance
facilities. It wants to break
ground by mid-2016 and have
the terminal up and running
by early 2018.