Port 2 delays action on loan

Commissioners of Port District No. 2 slogged through more budget revisions in preparation for adopting its 2009-2010 budget when they met August 18.

Vista Park Manager Steve McClain brought the commissioners up to date on park operations and explained park needs. “We have a lot of things that need repair and very little money to work with,” he said.

McClain said several of Vista Park’s bathrooms were in need of new roofs and the park’s main restroom in the center of the park needs plumbing work.

McClain asked the board to also consider extending the contract of one of his summer employees because another of his staff members would be attending college at the end of August.

The discussion then moved to what the park can do to increase revenue.

McClain said he and his staff have been discussing the idea of partnering with the local kayaking business to generate new business.

McClain also mentioned that the county has a Challengers’ Ropes Course program, and board Chair Brian O’Connor added, “We have one of the courses at the park, don’t we?"

Yes, McClain said, but the park doesn’t have anyone certified to run the course.

“One of the staff has expressed an interest in getting certified,” McClain said. “If we had someone that’s certified we might be able to attract school groups in the fall and spring, and along with the yurts and kayaking, it might be a way to create some business.”

McClain said the park’s complete vision would be to create a symbiotic relationship between the park and county businesses that would all work together to bring in business.

Commissioners were briefed on a proposed Right of Entry easement with the Port of Portland and U.S. Army Corps of Engineers. The easement would allow the Corps to continue placing dredge spoils along the park’s beach. “We end up with basically the same agreement as we have now,” said McClain. “My worry is that we’ll be responsible for any contaminated soil the Corps might dump on our beach.”

McClain said he’d like it if the Corps is required to provide him with the results of the tests on dredged spoils before Vista Park signs an easement with the Corps. He is also troubled by a section in the easement that would require park management to check the Corps website to learn what it is planning to pump or has already pumped onto to Vista Park’s shores. “The Corps might not post the soil test results on their website until after they’ve pumped the spoils onto our shore,” said McClain. “It’s a public beach and I don’t want to learn after the fact, we have a problem.”

McClain told the board that the park’s revenue is close to last year's but the car count in front of the park is down. People are not turning into the park as often. “There is just not the traffic (on SR 4) we’ve seen in the past,” said McClain.

Commissioners were also presented with a plan for repairs and renovations to all three of the park’s bathrooms and picnic shelter. Commissioners learned that the picnic shelter at the center of the park needed attention immediately because the roof would probably not make it through the winter.

The restrooms also need paint and minor plumbing repairs. “We budgeted $10,000 for the repairs and I’d like you to approve the package so we can get things going by October,” said McClain.

“We’ve got several areas where we’re $20,000 over budget, that’s one reason for the $100,000 loan,” said Commissioner Kayrene Gilbertsen, “and if we’re not going for the loan then somehow the repairs have to come out of what we have.”

The board moved to old business, and O’Connor asked for the board’s thoughts about the $100,000 loan which Gilbertsen had mentioned. The loan was presented as Resolution 2009 at the Port’s July 21 meeting. At that meeting commissioners had earmarked a majority of the $100,000 loan to be used for a park model trailer, with a small amount for maintenance.

“I think at this time we don’t show much interest,” said Gilbertsen.

“I don’t think it’s going to happen, now that we might be able to own the office we now use,” said O’Connor.

“As your manager, looking at our revenue sources, there is nothing in the county’s timber revenues or our dredge sales that indicate the economy is going to bounce back,” said McClain. “I just can’t see us taking on any additional debt at this point.”

O’Connor said there was no point in tabling the loan resolution month after month and called for a motion to approve or reject the loan.

Commissioner Carlton Appelo said the port couldn’t afford to borrow the money now and suggested tabling the resolution again. O’Connor said there was no sense in tabling the loan month after month.

Appelo said there is no point in tying the port’s hands. “If we look at each month the stock market may change and finally reach the bottom and start going up."

“I’d like to keep our options open. I think we’d all hate to renegotiate the loan we have now because the interest rate we have is certainly better than the proposed second loan,” said Gilbertsen.

Port Auditor Sharon Mast told commissioners that the Bank of The Pacific had probably placed a time limit on the interest rate for the loan the port was considering.

The newest budget revision for Vista Park shows the park in the hole over $10,000 by year end. If the port votes to accept the bank’s ARM mortgage, its only remedy for repayment would be its taxing authority.

Port Districts, pursuant to Washington statute, may impose a tax levy up to 45-cents per $1,000 of assessed value of taxable property within the port’s district. The state considers Port 2 a taxing district. As a municipal corporation it has legal authority to impose burdens upon property owners within the district for the purpose of obtaining revenue for public purposes.