Walla Walla Union-Bulletin: Portofwallawalla

Port gives go-ahead for land buy
Commissioners on Thursday authorized the purchase of about 1,900 acres in the western part of the county.

By Vicki Hillhouse of the Union-Bulletin

Port of Walla Walla commissioners authorized the purchase of about 1,900 acres in western Walla Walla County in a move Thursday they said gives the community a strategic advantage in recruiting new industry.

The Port plans to buy the Boise White Paper LLC fiber farm in a $4 million land deal slated to close Oct. 3.

``Looking at it from a holistic perspective, there is very little land like this in the state, let alone Eastern Washington,'' said Port Executive Director Jim Kuntz.

He said money to buy the land will come from two sources: one is a $2 million revenue bond loan agreement with Banner Bank, which was also approved Thursday; the second is the issuance of general obligation revenue bonds, which are paid for by the income from a bonded project.

Boise, which has determined the land is not needed for its long-term operation, retains rights to harvest the cottonwood trees on the property through the end of 2011. As part of the purchase, the Port also agreed not to recruit another pulp and paper plant as a future tenant.

Port officials believe the land will be a major attraction for many other types of light and heavy industrial users.

The location across from the Boise Paper Solutions mill in Wallula has access to rail, barge and highway. It also contains a water right to pump about 4,700 acre feet per year, enough to cover the parcel in 30 inches of water.

``Really there's no downside,'' said Port Commissioner Michael Fredrickson.

Port officials announced their plans for the land purchase in April.

In the meantime, officials have had an environmental assessment and cultural resources review on the property. Under the agreement, mineral interests and oil and gas interests on the property are owned by ConocoPhilips. The Port is trying to acquire the mineral interests, and seeking a waiver of surface rights.

At Thursday's meeting, Port commission candidate Jim Beard asked commissioners whether they'd thoroughly analyzed the purchase to consider the financial consequence if the property is not developed to its potential.

Though western Walla Walla County has become home to a number of major employers, including Boise's pulp and paper mill, Tyson and Railex, that development has taken place over decades with much land remaining for development.

Beard said the Port may have more land than it has demand for the property.

However, at a price of $2,097.54 per acre, Fredrickson said the land could continue to be farmed with no loss to the Port.

``At this price, we could sell it for ag production and come out whole,'' Fredrickson said.

Kuntz said three companies have already shown interest in the land. One is a Fortune 500 firm that Port officials have declined to name for fear of jeopardizing negotiations. The second is Wallula Energy LLC, a firm that wants to build a $2 billion coal gasification plant. The third is a polysilicon operation.

While the possibility exists that none of those projects will ultimately end up on the property, Kuntz said the Port's option on the land was a major factor in why the firms have looked at Walla Walla County to begin with.

``Because we had the site - because we had it optioned at the time - these are the kinds of leads we're generating,'' he said.

``This is a very positive strategic move.''

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Gwen Gerow wrote on Sep 28, 2007 1:57 PM:

" The Port bought the land. Now no one wants it. Big cost to the tax payers. Why was the turn down of 500companyhidden when it had been front page stuff> "