Harbor District hears more from public on marine terminal plan
John Driscoll/The Times-Standard
Article Launched: 07/10/2008 01:24:11 AM PDT

The Humboldt Bay Harbor, Recreation and Conservation District board heard more from the public Wednesday night regarding a business plan drafted by consultant TranSystems that looks at developing a marine terminal in Samoa.

Some pleaded with commissioners not to let an opportunity to develop a marine terminal at the Redwood Dock pass by, while others dismissed the business plan's promise of strong returns as ludicrous. The plan was submitted as global investment giant Goldman Sachs recently expressed interest in marketing the port's assets and the North Coast Railroad, which hasn't operated for 10 years.

Others tried to calm the waters of controversy over the plan, saying there is no proposal to actually build anything yet.

”There's a long way to go before this thing gets built,” said Rob McBeth with O&M Industries.

An initial TranSystems study recommended building a single multi-purpose berth of limited size to handle cruise, cargo and container ships. A second possibility, the report recommended, is to build a similar facility with significant ability to expand into adjacent areas to accommodate more shipping, including container shipping. That option would require rail service to be viable.

The business plan requested in a 3-2 vote in late winter projects revenues and costs for the more expanded option, the first phase of which would cost an estimated $35 million. It suggested some of that come from private investment, and some from revenue bonds. The draft plan projects a $1.8 million positive cash flow for the district after 15 years in a best-case scenario, but a reduction of 25 percent in cruise ship or cargo service would leave the project in the red even after 15 years.

Commissioner Pat Higgins expressed disappointment in the plan, saying it doesn't go into how revenue bonds would work or what businesses might be attracted to use the facility, or their financial projections.

”You could also call it skeletal, because I don't see any meat on those bones,” Higgins said.

Some in the room cautioned that opposition to the project might scare off potential investors. Bill Posey of McKinleyville said that other recent proposals like a liquefied natural gas terminal and a plan to ship water out of Humboldt Bay have already been scuttled.

”We've thrown out over the years so many babies with the bath water and I'm really sick of it,” Posey said.

Others urged an excess of caution. Environmental advocate Melvin McKinney said that existing local industries could be harmed by the project and the possibility that additional dredging would be needed to accommodate larger ships.

”Before we go running off half-cocked with the big-money boys that want to play games with us, you'd better look at home and see what you've got,” McKinney said.

Commissioner Mike Wilson called for an abundance of transparency to the process going forward, and chairman Dennis Hunter agreed that all efforts would be made to ensure the public knows when issues related to the Redwood Dock are being considered by the board.

Oyster grower Todd Van Herpe expressed dismay at the polarization occurring over the issue and others. He said he doesn't believe “selling T-shirts and renting kayaks” is the solution to the local economic problems, but said he was supporting the terminal project. He also vowed that he would be a strong environmental advocate -- because his oyster beds depend on it.

”There doesn't seem to be a whole lot of room in the middle anymore,” Van Herpe said, “and that's disconcerting.”