The Port is in the Real Estate Business

The port meeting on September 25, 2023 went without a hitch in the equipment bay of the shop with the wind blowing in and building rattling. Interesting that although the port has a web site it would seem reasonable to see minutes of previous meetings, the agenda for the up coming meeting, and for this meeting, a posting of the ports preliminary 2024 budget. Reasonable expectation to see this on their web site, but no its not there.

What was interesting at the meeting was the port having purchased property previously is now headed for disposal. One of which is the Barbe Queen in Ocean Park which the operators’ have struggled since they leased the building from the port. In 2021 the Port purchased this and the lot adjacent to the west paying $275,000 when the taxable value was only $173,900. Now the Port is has set a minimum sales price of $300,000.

The second property the Port is selling is the four lots just North of the Ocean Park Post Office which was once going to be a community garden. They purchased these four lots in 2015 for $55,000 when the taxable value was $51,000 and now have set a minimum bid of $135,000.

The third property in the Ports action is two lots along Sandridge Road, near 270th, which they purchased in 2020 for $50,000 when the taxable value was $45,000 and now have a minimum bid of $90,000.

Another property that was not in this agenda but has been discussed in previous meetings was the property at 27104 Sandridge Road. The building has been previously a boat shop then a machine and welding service. The Port purchase this in 2022 for $630,000 when the taxable value was for the building and two lots was $127,000. This is not currently being offered, but may in the future, along with other Port lands previously discussed.

What is interesting and leaves the question what plan did the Port have in mind when laying out tax dollars, was it economic development for the community as evidently, they have not succeeded in that endeavor. Its also interesting that the property of the Barbe Queen was going to be purchased by the Fire District but the Port stepped in and made a better offer. I personally don’t much care for one public entity out bidding another. I don’t know if the Port had a business plan from the lessee before signing the lease. A business model has two values the property, buildings, and equipment along with the business it builds. Apparently, the lessee failed to build value into the business leaving the Port only collecting rent and not added value of the business it could have grown into with a good business plan.

The other question that was put to the Board by Bonnie Cozby at the meeting was why aren’t the three properties going up for open bid as defined by the RCW. Jay Personius said they were Industrial properties and are not required to go to open public bid. I don’t believe according the County records these are industrially zoned properties and having the port manager declare they are industrial must somehow trump the Zoning Laws, I guess.

On October 2nd the Port is having their 2024 Budget meeting at the Port Office at 11:00 am.