10A
THE DAILY ASTORIAN • THURSDAY, APRIL 28, 2016
Port: ‘This is an elegant way to solve the problem’
Continued from Page 1A
Commission. The expansion
provides more processing and
cold storage space.
Port staff have argued the
companies need to expand and
diversify to survive in a consoli-
dating seafood industry.
The lease provides the Port
with nearly $25,855 a month.
Da Yang receives rent credits of
$1,200 a month through 2027
for improvements made to the
property. The ish processor also
gets credits of $1,700 a month
for 48 months to offset repairs
to the crumbling docks that the
company had performed around
2013 without the Port’s permis-
sion. The work was done before
much of the current commis-
sioners and staff had joined the
Port.
Clean enough
“This original lease with Da
Yang was messy, as are all exist-
ing leases with the Port,” said
Executive Director Jim Knight,
adding the amended lease helps
the agency set things right.
Shane Jensen, the Port’s
property manager, said the lease
solves several issues for the
Port, from establishing prop-
erty boundaries and a fair mar-
ket lease rate in the warehouse
to providing the agency badly
needed revenue to help repair
issues on Pier 2.
“We’ve always been con-
tractually obligated to repair
Pier 2, and our inability to do it
has caused problems,” Jensen
said.
While the Port can’t ascer-
tain how Da Yang did the con-
struction on Pier 2 without Port’s
sign-off, he said, the lease pro-
vides a cost-share for the work.
Da Yang had made multi-
ple failed attempts to expand,
build a cold storage and estab-
lish a freight depot at the Port.
The space the company is tak-
ing over has gone through mul-
tiple ownership changes, and
Knight said it hasn’t been used
since late summer or early fall of
last year.
The space was most recently
under United Coast Seafoods, a
subsidiary of the now-defunct
CounterPoint Financial. Coun-
terPoint is liquidating its assets
to avoid bankruptcy, and Da
Yang has an agreement to buy
the equipment United Coast left
in the space.
Jensen said letting Da Yang
buy the equipment from United
Coast keeps the Port from
potentially having to ight it
out with United Coast in bank-
ruptcy court and spend large
sums removing the equipment.
“This is an elegant way to solve
the problem,” he said.
Longshore concerns
“You don’t even know what
you just did, buddy,” Hunsinger
told Knight as the meeting
ended and longshoremen exited
en masse. “You’re going to see
pickets.”
Chris Connaway, president
of the local longshoremen chap-
ter, spoke in opposition to the
lease along with two other union
representatives, lanked by even
more members in the audience.
Connaway said Da Yang
wants to establish a hake (Paciic
whiting) facility bringing in ish
on the docks and sending them
out on refrigerated containers in
the Puget Sound region. He said
longshoremen should load and
unload any oceangoing cargo,
and asked the Port to include a
statement in the lease with Da
Yang reafirming the agency’s
prior labor agreements with the
union.
“This is for the Port’s pro-
tection,” he said. “If this goes
through like this, we’re going to
be in arbitration. It’s going to cost
the Port lawyer money. We’re
going to ight this tooth and nail.”
Joel Bergeman, a construc-
tion contractor who does work
for Da Yang, spoke in favor of
Da Yang’s expansion. He said
the company has always paid its
bills and hired local, often union,
tradespeople.
Commission opposition
Fulton and Hunsinger both
said they were not opposed to
Da Yang’s lease amendment,
but wanted to table the issue
and have the Port’s attorney,
who was not present Wednes-
day, look over the lease. Their
motion to table the lease failed,
with the two voting to table the
lease amendment, and Raichl,
Campbell and Mushen voting
against tabling the issue.
Hunsinger, a former long-
shoremen and commercial ish-
erman who has repeatedly
opposed Da Yang’s attempts to
expand, questioned whether the
Port should pay for any of Da
Yang’s previous unapproved
work on Pier 2. Jensen said the
period of work done by Da Yang
was so long, that the Port staff at
the time must have consented.
Mushen said one argument
is that the work Da Yang did
beneited the Port as well as the
company. Campbell added that
the Port should also consider
the liability the agency faces
by leasing docks in such poor
condition.
Edward Stratton/The Daily Astorian
The Port of Astoria Commission approved an amended lease expanding Da Yang Seafoods’ space in the Pier 2 fish-pro-
cessing warehouse by more than 170 percent.
Port approves emergency repairs to Pier 2
Agency under
state pressure to
make ixes by July
By EDWARD STRATTON
The Daily Astorian
The Port of Astoria Commission con-
ditionally approved an emergency expen-
diture of up to $350,000 to ix the most
critical issues on Pier 2.
The state Department of Transpor-
tation warned the Port that a structurally
deicient portion of the eastern dock skirt-
ing the Pier 2 ish-processing warehouse
might have to close by July unless signif-
icant repairs are made. The state recom-
mended a 3-ton weight limit on the dock.
Shane Jensen, the Port’s property man-
ager, said the ish-processing season starts
in May. He said there is a strong chance
of interruption because of the restric-
tions. Repairing the dock enough to lift
the weight restrictions and keep the east-
ern dock open will cost about $60,000, he
said, with another $160,000 to $200,000
needed to ix the most critical issues on
the western side of Pier 2, such as missing
posts underneath the dock.
The Port has received two bids so far
on the work, but needs at least three as
part of competitive bidding requirements
for public agencies. Jensen said the emer-
gency motion protects the Port from lia-
bility if it awards the project with only two
bidders.
A third bid
Bigger picture
“By the time we’re done with Pier 2,
there will be far more than $350,000,”
Jensen said, adding the Port is trying to
break the pier’s repair down into more
manageable pieces.
The Port applied for $1.5 million
through the Department of Transporta-
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to go, although he is still seeking more
bids for the project. He said getting the
permits for repairs is what could hold the
process up.
The scope of the work is being based
off a report by PND Engineers Inc., which
brought in native Astorian and marine
engineer Bill Gunderson three years ago
after the Port declared an emergency on
the west side of Pier 2. The report found
the west side in critical to good condition,
largely because of deferred maintenance.
The Port Commission’s emergency
motion included an amendment that staff
would spend at least another 10 days try-
ing to get another bid.
“I believe we owe it to the community
to get another bid,” said Commissioner
Stephen Fulton, asking if staff could delay
the motion for another 10 days.
Jensen said both contractors, Berg-
erson Construction Co. and Columbia
Dockworks Inc. out of Astoria, are ready
THE DAILY
ASTORIAN
A
Joshua Bessex/The Daily Astorian
Erick Cain and Gene Leon, both with the Oregon Department of Trans-
portation bridge inspection team, paddle in a small boat while inspecting
Pier 2 in January.
tion’s ConnectOregon VI infrastructure
grant program to repair the western docks,
where commercial ishing boats pull up
to deliver their catch to ish processors. A
previous ConnectOregon grant paid for a
new portion of dock on the pier’s eastern
side.
The Port is also tallying up damage to
the pier from storm surges in February,
with hopes of assistance from the Federal
Emergency Management Agency. Execu-
tive Director Jim Knight has said the Port
already has $10 million worth of claims
with the agency, for anything from storm
damage to the piers and marina to silting
in the water because of debris runoff com-
ing down the Columbia River.
Jensen said the emergency appro-
priations for Pier 2 would come out of
the Port’s special revenue fund, which
includes tax revenues from timber sales.
“We’re essentially borrowing money
from ourselves to initiate this emergency
repair pending the FEMA reimburse-
ment,” Knight said.
Evening listings
THURSDAY
A PRIL 28
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