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<< Previous   of   Next >>   ADVERTISEMENT   CONTACT THE HERALD Mike Benbow, Business Editor benbow@heraldnet.com   Published: Wednesday, April 1, 2009 Everett waterfront developer short on cash The Everett port may be forced to look for someone else to lead the now-idled $400 million project. By Mike Benbow, Herald Writer EVERETT -- The Chicago developer of a $400 million project on the Everett waterfront wants to delay a $1.1 million payment owed to the Port of Everett, saying the recession makes coming up with the cash "problematic." The possibility that Maritime Trust could default on its contract leaves port officials with a difficult decision: support a developer they believe has a good plan as it continues to search for financing or look for a someone else to take on the job. Port commission members revealed at a retreat Tuesday that Maritime Trust officials were seeking a way out of the payment, which is due at the end of April. The money is part of Maritime's contract and is intended to compensate the port for lease payments it would have received if it hadn't razed much of the area for development of some 660 condominiums, a public promenade and commercial and office buildings. "As we have discussed with you, today's financing and economic environment makes the actual payment at this time problematic," Bert Meers, Maritime's president, said in a letter to John Mohr, the port's executive director. Maritime has spent $16 million on the project thus far but has halted further work because it's been unable to secure financing in the recession. In the letter, Meers said his intent was to "position the project to take advantage of the first signs of improvement in the economy." "We know they don't have the money and are asking for some relief," said Phil Bannan, port commission chairman. "I don't think it's their fault. It's the economic times. There is no credit out there. "Do we renegotiate the deal? My interest is in getting a good developer out there and these guys have proposed a good development." Commission member Connie Niva said that she and the other commissioners will consider recommendations from Maritime Trust. And Michael Hoffmann, the third commissioner, noted that the port already has a position in the form of its contract. Port lawyer Brad Cattle told commission members that he hadn't had time to fully study the port's options. He suggested that commission make no decisions until it sees whether Maritime will pay the $1.1 million. Mohr said he's already sent Maritime a bill that is due April 30th and that the company has 30 days after that before it's considered to be in default. Meers said he was hoping to reach "a resolution that is satisfactory to the port, the public and Maritime Trust in these unusual times." He suggested the port change the contract to defer the payment until April 1, 2011. The company already has until that date before it has to show some substantial work on the project. He noted that such a move would make the project more desirable to potential investors. An alternative, Meers said, would be for Maritime to pay the port $100,000 at the time of its first land purchase if the port gives up to 24 months before declaring the company in default. When Maritime shelved work on the project, the port took over its planned development of what's called the Craftsman district, a special part of the development for marine-related business. It's spent about $16 million for that work and for development of utilities and other facilities on the property. It's also spent about $7 million to clean up polluted soil in the area to be redeveloped. Niva lauded the work of the port, saying it makes the property more valuable and that there "has been no lost ground" in its part of the project. "We owe it to boaters to have an acceptable boatyard and we owe it to the community to have property that is environmentally sound," Mohr said. READER COMMENTS Be the first to comment. You must be a registered user and verify your e-mail address to post comments to blogs or articles on HeraldNet. To register, click here. To read other terms and conditions, click here. Log out

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