Port, tribe admit interest in Kaiser land
01/14/2001
Al Gibbs; The News Tribune
Wildly spiking energy prices may turn out to be a boon for the Port of Tacoma. The port might be able to acquire more than 120 acres of land that could someday become part of another major Blair Waterway car or container terminal.
The land could come from the purchase of an 80-acre Kaiser Aluminum plant that is currently almost completely shut down, and more than 40 acres of adjacent land that the Bonneville Power Administration occupies to provide electricity to the plant.
"If Kaiser goes away, that could easily become part of the port," said Bob DeWald, the port's senior director for industrial development and real estate.
After the price of electricity skyrocketed last summer, Kaiser shut down all but a small manufacturing line at the plant, located between Alexander Avenue and Taylor Way just east of the Blair's turning basin. The price still remains too high to operate the plant at profit.
It is unlikely that Kaiser will reopen its aluminum production lines next fall when it begins receiving power under a new contract with Bonneville.
The price of electricity - about one-third of the production costs for an average aluminum mill - would have to drop far below what it now is in order for Kaiser to consider reopening the plant, said Pete Forsyth, Kaiser's Northwest vice president for external affairs.
Kaiser, based in Houston, is aware that outside parties might want to buy it.
"I don't know how serious they've been, but we've had inquiries," Forsyth said, acknowledging that it would be a desirable location for a new port facility.
"A lot of people have reminded us of that," he said.
The Puyallup Indian Tribe, which sought a contract with car importer Toyota last year in a joint venture with the port, also is interested. The half-century-old plant abuts property the tribe received in its historic land claims settlement more than a decade ago.
Toyota ultimately decided to remain at the Port of Portland, despite the tax breaks the Puyallup Tribe could offer, but the tribe remains interested in developing its properties.
"Whenever adjacent property comes up (for sale), we're interested in it," said tribal spokeswoman Kari-Lynn Frank.
"Obviously, where (the site) is would provide us with an opportunity," she said. "Right now, from everything they've said, it's not up for sale."
Forsyth, however, stopped short of a firm declaration. "There's nothing to believe (a sale) is imminently likely," he said. "There haven't been enough substantive (corporate) discussions that I'm aware of.
"We're not going to not answer the phone," he added. "But there remains some potential to make aluminum (there). If people want to talk, we'll listen."