PORT TOWNSEND, Wash. – In a recent court decision aimed at addressing ongoing financial and operational struggles at Fort Worden state park, Jefferson County Superior Court Judge Brandon Mack announced plans to devise a new order. This new directive, deliberated during a Dec. 20 hearing, seeks a more balanced approach among various stakeholders including Kitsap Bank, the court-appointed receiver, and the Fort Worden Public Development Authority (PDA), alongside addressing the interests of the park’s tenants and its ultimate stewards, the taxpayers.
Judge Mack emphasized the importance of a fair and functioning system to both compensate workers and manage assets without neglecting the park’s maintenance needs. He highlighted that the new order would include provisions for “reasonable and necessary” costs related to operation, maintenance, and administration.
The deliberation followed a series of legal motions between Kitsap Bank and the Fort Worden PDA, focusing on critical issues such as extending negotiation deadlines for the PDA’s master lease with the Washington State Parks and Recreation Commission, and clarity on financial responsibilities for the park’s upkeep.
The Fort Worden PDA was placed under receivership on Oct. 4, with Elliott Bay Asset Solutions appointed as the receiver. This move, which was made without warning via an ex-parte decision and prompted by a lawsuit from Kitsap Bank due to fears the PDA was dissolving without addressing a $6.2 million debt, led to critical responses including from the Washington State Attorney General’s Office.
The receiver’s extended deadline to present a new business model by early March has caused frustrations among on-site businesses such as Centrum and Fort Worden Hospitality. These groups expressed concerns over the inability to prepare for future operations, including budget planning and contract approvals for 2025.
Centrum’s executive director, Robert Birman, voiced significant concerns about the receiver’s approach, suggesting a discrepancy between their assigned authority and their willingness to take responsibility. During court proceedings, it was argued that poor management and a restrictive lease had driven the PDA to a financially untenable position, prompting the consideration to disavow the current lease as per the receiver’s stance.
Further, the financial implications of the receivership were underscored by the hefty fees billed by Elliott Bay Asset Solutions for professional services, amounting to $218,704 for October and November alone. Judge Mack also approved motions to ensure these fees were covered, while planning a review of the situation in January.
As Fort Worden looks to the future, the role of the Washington State Parks Commission becomes increasingly significant. Centrum remains hopeful of reverting to an operational model akin to the one before PDA’s inception, provided the Parks Commission supports this shift. Planning for 2025 programs at Centrum is poised to commence in the new year, hinging markedly on forthcoming decisions in January.
This evolving story reveals the complex interplay between legal actions, financial distress, and the preservation of public lands, underscoring the ongoing struggle to balance development authority with public interest and fiscal accountability.
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