The Port of Vancouver and Northwest Packing Co. have reached an agreement on a 25-year extension of the company’s lease on its fruit packing plant at the port, ending three years of sometimes tense negotiations over a new lease.
The port did not disclose terms of the deal, which still requires a stamp of approval from its board of commissioners. The company’s previous lease, established in 1987, expired in 2011 but was extended by the port through the end of this year as negotiations continued. That lease included a stipulation that the port would adjust rent to fair market value upon renewal, and rent adjustment became the major sticking point between the port and the fruit packing company.
Abbi Russell, the port’s communications manager, said the tentative lease covers a 10-year period with three five-year options. She said the port has been sensitive during talks to Northwest Packing’s importance in providing hundreds of jobs and bringing investment to the community. “We feel comfortable with an agreement that moves them toward a market rate in a way that works for the company,” she said.
As recently as September, Northwest Packing representatives urged the port’s board of commissioners to maintain the current annual lease payment of about $150,000 as part of the 25-year contract renewal. The company faces stiff global competition and narrow profit margins and would have difficulty absorbing higher costs, said Matt Jones, president and CEO of Northwest Packing’s parent, The Neil Jones Food Co. At the time of that September commission meeting, the port said an adjustment to market rate would establish an annual lease payment of $372,021 by the company.
