Othello port, city disagree about business district

Several elements discussed

OTHELLO - The Port of Othello manager and the Othello City Council disputed a funding request for the multi-use business park Monday.

Port Director Mike Beardsley asked the council to consider funding half of the cost for a proposed infrastructure project to bring water and sewer to a 67-acre business park to allow construction to begin in the fall.

The park is located at the southwest corner of state Route 26 and Reynolds Road, and can accommodate businesses and housing.

The project is expected to cost $477,000 and Beardsley expects the cost should be approximately $238,000.

Before discussing details of the proposal, Beardsley advised council he only wanted to discuss utilities. He said he was not prepared and did not want to discuss housing construction in the business park.

Mayor Shannon McKay agreed to the request.

Beardsley said the port can't afford to fund the entire project and will not ask for additional funding afterward.

He proposed an 8-inch sewer line and a 12-inch water line to accommodate construction in the park.

Beardsley said the park is a primary location for expansion due to its size and the utilities, roads and housing being built in the park.

He said several businesses are not interested in Othello because many spaces are too small or don't have the right amenities.

"So are we open for business, are we really open for business?" Beardsley asked. "Companies have come and left."

He said the city needs to do more to drive economic development.

"Some people would say Othello is dying a slow death, well I can't buy into that," he said.

Beardsley said the primary objective of the port is to bring jobs to Othello. He said it shouldn't matter if the city depletes water and sewer reserve funds and uses debt services to provide funding. The reserve funds are for economic development, Beardsley added.

People are misinformed about the business district causing the project to slow, he said. Information provided in the council's meeting packet produced by city staff was wrong, he claims.

McKay said he was offended by Beardsley's remarks and said the information in the packet was correct and useful concerning where money from the funds is being used.

He said the community and city supports the port district. Between 2003 and 2007 citizens paid $726,352 in taxes to the district, McKay added.

He asked what the port district does in return for citizens.

Beardsley said the port took control of an airport to prevent the city from losing money on it, developed the water system and is preparing a well in the county.

The mayor asked if Beardsley considered asking the county for infrastructure funds and continued to question what the port has done with their funds for the past several years.

"I don't feel I have to defend the port's track record," Beardsley said.

He said in the past the port traditionally bought and sold property to make profit. The issue is not about the performance of the port district, rather it's about growth, Beardsley said. He said the city was hiding from issues.

"Everyone here is behind what you're doing," McKay said.

He added, the city is not hiding from anything and does support economic growth. The city recently approved approximately $25,000 to the Adams County Development Council.

"I support growth but we still have to keep in mind the citizens of the community," McKay said.

He said the council is responsible for spending tax money wisely.

Councilmember Marc Spohr said he disagreed with several of Beardsley's remarks.

He said when Beardsley requested to annex the property in the city a few months ago, he was unaware they would ask for funds to install infrastructure.

Spohr said bringing jobs to Othello should not be the top priority. The top priority is to improve schools, provide more housing and retain the businesses that are there, he said. Several large businesses including Columbia Colstor and McCain Foods have come and stayed and have plenty of open job opportunities.

Spohr said those established businesses are the economic engines of the city. When housing and school needs are satisfied, maybe the business district will receive his support, he added.

Spohr questioned why he should provide funds to an entity who won't explain what they've done in the past.

"This is not a chance to crucify the port," Beardsley said. "Our history is just fine."

Councilmember Eleanor Brodahl asked if the port district will request more money to make additional improvements to the business park including work on a drainage line that may need to be moved.

Beardsley said he will not ask council for additional funds.

Former councilmember Dale Wyman shared some concerns about the business park.

He questioned why the port district is involved with bringing apartments and condominiums into the business park. Wyman said the action is beyond their authority. If the city gets involved with funding the project, they are inadvertently acting beyond their authority as well, he added.

If the business park is functional without the housing, the proposal is acceptable, Wyman said. If the business park doesn't work without the housing, they need to come up with a new plan, he said.

According to port authority, there is a developer ready to build housing there and Othello needs it, but not if it's skirting the law, Wyman said.

Citizen Dave Sperl asked about the status of a proposed housing development located on 14th Avenue.

City Administrator Ehman Sheldon said the development is progressing.

A decision was not made at the meeting because it was a workshop for informational purposes only.