Port approves developer settlement, Oyster House contract

Port of Allyn commissioners approved a settlement agreement with a developer at Tuesday’s regular meeting after a brief consultation in executive session with the port’s attorney.

Details of the agreement between Cedarland Homes, LLC and the port are confidential, but an exchange between developer Joseph Cedarland, who operates Batjack Holdings, J & J Development and Cedarland Homes, and the commissioners at a November meeting could shed some light on the dispute.

At that meeting, the port refused to sign a water connection agreement with MTT Construction, a company that planned to buy lots in the Allyn plat from Cedarland’s companies.

Cedarland called the port’s contact “burdensome” at the meeting.

“There’s no way as a builder I would sign that document,” Cedarland told commissioners.

He said he has been in real estate development for 25 years in multiple cities and counties and has not seen the type of bonding requirements the port was asking for in the contract.

The proposed contract asked MTT for a maintenance bond.

“Developer shall provide a maintenance bond in the amount of ten percent (10%) of the construction costs as documented by Developer, but in no event in an amount less than Three Thousand Dollars ($3,000.00) per ERU. The maintenance bond shall guarantee that the Extension Infrastructure transferred to Port by bill of sale shall remain free of defects and in proper working order without the need for maintenance for two (2) years after Final Acceptance of the Extension Infrastructure by Port and shall be in a form acceptable to Port,” according to the contract.

According to the action item on Tuesday’s agenda, the settlement involved certain port procedures.

“Cedarland and the Port dispute whether Cedarland complied with the Port policies and procedures concerning the Water System Infrastructure serving the Block 61 Lots, but it is the intention of the Parties to resolve such disputes in this Agreement,” according to the port document.

“Cedarland installed water system infrastructure to service the Block 61 Lots, that infrastructure has not yet been transferred to the Port,” the action item states.

Executive Director Travis Merrill recommended commissioners sign the settlement agreement.

Commissioner John Sheridan agreed.

“I think it’s a really good direction,” Sheridan said about the settlement.

“I’m just happy are both sides are willing to agree,” he said.

Both the port’s attorney and Cedarland’s lawyer signed off on the settlement, according to Sheridan.

Commissioners Judy Scott and Michael Curtain joined Sheridan in approving the settlement.

Oyster House renovation progresses

Commissioners approved an “on call environmental support” contract for the Oyster House renovation project, according to the agreement.

The professional services agreement with Leon Environmental, LLC “would allow us to support the Sargent Oyster House, while also covering us in the event that our work support other Port priorities. You retain control over the work we perform, but avoids the need to prepare a new scope of work if something urgent comes up that may not have an obvious nexus to the Oyster House,” Peter Leon wrote to Merrill.

“His contract was definitely more fair and balanced on both sides,” Merrill said about Leon’s proposal.

The historic 1951 Sargent Oyster House building was moved to the Port of Allyn Waterfront park in 2014 to save it from demolition.

Scott said she’d previously worked with Leon and Bill Rehe, both with Leon Environmental.

“I trust them. They’re there for the passion of the Oyster House,” she said.

“I would recommend that we go ahead and approve this,” Scott said.

“We haven’t lost any grant money?” Sheridan asked Merrill.

“Not yet,” Merrill responded, saying the grant funds are getting close to expiring and need to be used.

The Port has 3 open funding Grants for the completion of the Oyster House project totaling $432,648, according to port documents.

Merrill said the port can still “cross the finish line” with the grant money they have, but it needs to be spent by June.

He said it may be difficult to get more grant funds given the state of Washington’s current budget deficit, estimated by outgoing Governor Jay Inslee’s office at around $16 billion.

“I suggest we accept their version of the contract,” Curtain said about Leon Environmental, and commissioners unanimously agreed.

Waterfront Park vandalized

The lattice work on one of the two arbors in the Allyn Waterfront Park was destroyed by a vandal sometime between 8 p.m. on Jan. 5 and 6 a.m. Jan. 7, according to Merrill’s security report.

He said he didn’t contact the sheriff’s office because the port was not going to ask for insurance coverage.

Merrill said he would make repairs before the start of the gazebo rental season, according to the report.

Commissioners vote on compensation

Scott and Sheridan will refuse their 2025 stipend while Curtain will accept his, they said at Monday’s meeting.

The Office of Financial Management has made an inflationary adjustment that increases elected official compensation, so commissioners will receive a stipend of $161 per meeting, up from $128 per meeting, according to port documents.

Merrill recommended all the commissioners take their stiped because they budgeted for the money.

While Scott and Sheridan refused, they supported Curtain taking the stipend because he is a new commissioner and has a “learning curve,” Scott said.

Commissioner compensation is limited to two days and/or meetings per month, according to the resolution, and is limited to no more than $3,864 in a 12-month period.