Tacoma sells controversial real estate holding
The Port of Tacoma last month sold the 745-acre Maytown property after a failed attempt to convert the industrial site into an inland intermodal terminal and logistics park for international container traffic, with no guarantee it would recoup its entire investment.
The port bought the property in Thurston County in 2006 for $21.25 million but scuttled its development plans in June 2008 in the face of opposition from environmental groups and residents in the area. The port eventually invested another $6.25 million for environmental cleanup at the site. The port commission was heavily criticized in Tacoma for the misstep, one of several that contributed to the departure of Executive Director Tim Farrell at the end of last year.
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The port commission authorized the property’s sale to Maytown Sand and Gravel for $17 million — half in cash and half in sand and gravel at current market prices — plus interest income at 7 percent over the term of the 20-year sales contract and proceeds from any future sale of smaller pieces of the property. Port officials eventually expect to make $23 million to $30 million from the deal, depending on fluctuations in the gravel market and future property sales.
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“While this deal doesn’t recoup the port’s full investment immediately, in the midst of the worst real estate market in decades, it still ' frees up port capital to reinvest in Pierce County,” where Tacoma is located, Commission President Don Johnson said in a statement.
Meanwhile, the port commission is continuing its search for a full-time port director. John Wolfe has served as interim executive director since Jan. 1. Port officials had said they wanted to settle on a permanent replacement by spring, but didn’t hire an executive search firm until March. The port posted a job announcement for the chief executive officer position earlier this month with an initial closing date of May 19. Top candidates will be interviewed in June. Starting salary for the position is $240,000.
Statistics on March trade volume released this week show container volumes at the port declined 11.4 percent compared March 2009, a worrisome comparison given that the international container shipping industry was in the throes of its worst crisis ever a year ago and is now seeing signs of recovery. Tacoma was hurt by the departure last year of Maersk Line, which relocated its service to the Port of Seattle.
Tacoma said its intermodal lifts increased 20 percent year-over-year in March to 30,176, the highest monthly volume in 18 months. The port attributed the positive results to its intermodal rail incentive program, which encourages the use of rail for short-haul containers, and the new Union Pacific domestic service to the South Intermodal Rail Yard.
For more about how the Port of Tacoma has tried to enhance its intermodal capabilities, read. is available 'Tacoma plays to intermodal strength' on www.AmericanShipper.com. ' Eric Kulisch