Soil stability and other issues could derail sale of mill site

EVERETT — Sale of the Kimberly-Clark Corp. waterfront mill site is not a done deal.

The prospective buyer, a Seattle-based company called Saltchuk, has concerns about the land, including soil stability, and it’s taking more time to study the site.

Saltchuk hopes those concerns can be resolved through negotiations with seller Kimberly-Clark, but the issues could derail the deal, company spokeswoman Emily Reiter said.

The company contacted The Daily Herald this week to say it had unintentionally downplayed its concerns in an article last week that reported the extended review period. The company had said the delay wasn’t because any concerns with the land.

“We’re interested in being as transparent as possible,” Reiter said on Monday.

Saltchuk now says it has concerns with site stability and environmental cleanup. The company is concerned that cleaning and removing contaminated soil could delay site development. Saltchuk also wants to get a better idea of how much cleanup is needed for contaminated sediment in the adjacent East Waterway and who will pay for that, Reiter said.

“All of that goes into negotiations and whether the site is viable for Saltchuk’s uses,” she said.

The transportation and petroleum distribution company is buying the 66 acres to use as a new home for its subsidiary Foss Maritime Co., which operates a shipyard and maintains a fleet of tugs, barges and other specialty vessels in Seattle.

The company already has spent four months examining the site in Everett.

“During due diligence, serious issues have been found that require further investigation,” Reiter said.

Saltchuk asked for more time to address those concerns. Kimberly-Clark agreed to extend the due diligence period into mid-spring.

“Further geotechnical work is required to assess the site for Saltchuk’s work,” Reiter said.

When the deal was announced last October, the company had hoped to conclude the sale before July. It’s not clear what, if any, effect Saltchuk’s additional site review will have on the closing date, she said.

The two companies are “working together to address site issues and risks that will allow the project to move forward,” she said.

The land consists largely of fill dirt, and most of the buildings were on pilings. When most structures were demolished last year, the pilings below ground level were left in place “as is common practice for a demolition of this nature,” Kimberly-Clark spokesman Bob Brand said.

Meanwhile, Kimberly- Clark has removed some contaminated soil from the site and is working with the state Department of Ecology on a longer-term cleanup plan, Brand said.

The waterfront site, first developed more than a century ago, was primarily used for paper and pulp manufacturing from 1931 until the mill closed in 2012.

If the deal goes through, Saltchuk plans to relocate Foss’ Seattle operation to the site. It has outgrown 25 acres along Seattle’s freshwater Ship Canal, where up to 250 workers are employed during busy times and as few as 75 during slow periods. The company has a smaller shipyard in Rainier, Ore., which would not move.

The move would likely happen in phases, Reiter said.

Saltchuk is also considering additional uses for the site, she said.

In addition to Foss, Saltchuk’s other holdings include companies involved in shipping, trucking, marine transport, air cargo and petroleum distribution. The private, family-owned company employs about 6,500 people nationwide, including about 800 around metro Puget Sound.

Dan Catchpole: 425-339-3454; dcatchpole@heraldnet.com; Twitter: @dcatchpole.

Talk to us

> Give us your news tips.

> Send us a letter to the editor.

> More Herald contact information.

More in Local News

A firefighter stands in silence before a panel bearing the names of L. John Regelbrugge and Kris Regelbrugge during the ten-year remembrance of the Oso landslide on Friday, March 22, 2024, at the Oso Landslide Memorial in Oso, Washington. (Ryan Berry / The Herald)
‘Flood of emotions’ as Oso Landslide Memorial opens on 10th anniversary

Friends, family and first responders held a moment of silence at 10:37 a.m. at the new 2-acre memorial off Highway 530.

Julie Petersen poses for a photo with images of her sister Christina Jefferds and Jefferds’ grand daughter Sanoah Violet Huestis next to a memorial for Sanoah at her home on March 20, 2024 in Arlington, Washington. Peterson wears her sister’s favorite color and one of her bangles. (Annie Barker / The Herald)
‘It just all came down’: An oral history of the Oso mudslide

Ten years later, The Daily Herald spoke with dozens of people — first responders, family, survivors — touched by the deadliest slide in U.S. history.

Victims of the Oso mudslide on March 22, 2014. (Courtesy photos)
Remembering the 43 lives lost in the Oso mudslide

The slide wiped out a neighborhood along Highway 530 in 2014. “Even though you feel like you’re alone in your grief, you’re really not.”

Director Lucia Schmit, right, and Deputy Director Dara Salmon inside the Snohomish County Department of Emergency Management on Friday, March 8, 2024, in Everett, Washington. (Ryan Berry / The Herald)
How Oso slide changed local emergency response ‘on virtually every level’

“In a decade, we have just really, really advanced,” through hard-earned lessons applied to the pandemic, floods and opioids.

Ron and Gail Thompson at their home on Monday, March 4, 2024 in Oso, Washington. (Olivia Vanni / The Herald)
In shadow of scarred Oso hillside, mudslide’s wounds still feel fresh

Locals reflected on living with grief and finding meaning in the wake of a catastrophe “nothing like you can ever imagine” in 2014.

The view of Mountain Loop Mine out the window of a second floor classroom at Fairmount Elementary on Wednesday, Jan. 10, 2024 in Everett, Washington. (Olivia Vanni / The Herald)
County: Everett mining yard violated order halting work next to school

At least 10 reports accused OMA Construction of violating a stop-work order next to Fairmount Elementary. A judge will hear the case.

Imagine Children's Museum's incoming CEO, Elizabeth "Elee" Wood. (Photo provided by Imagine Children's Museum)
Imagine Children’s Museum in Everett will welcome new CEO in June

Nancy Johnson, who has led Imagine Children’s Museum in Everett for 25 years, will retire in June.

Kelli Littlejohn, who was 11 when her older sister Melissa Lee was murdered, speaks to a group of investigators and deputies to thank them for bringing closure to her family after over 30 years on Thursday, March 28, 2024, at Snohomish County Superior Court in Everett, Washington. (Ryan Berry / The Herald)
‘She can rest in peace’: Jury convicts Bothell man in 1993 killing

Even after police arrested Alan Dean in 2020, it was unclear if he would stand trial. He was convicted Thursday in the murder of Melissa Lee, 15.

Ariel Garcia, 4, was last seen Wednesday morning in an apartment in the 4800 block of Vesper Dr. (Photo provided by Everett Police)
Everett police searching for missing child, 4

Ariel Garcia was last seen Wednesday at an apartment in the 4800 block of Vesper Drive. The child was missing under “suspicious circumstances.”

The rezoned property, seen here from the Hillside Vista luxury development, is surrounded on two sides by modern neighborhoods Monday, March 25, 2024, in Lake Stevens, Washington. (Ryan Berry / The Herald)
Despite petition, Lake Stevens OKs rezone for new 96-home development

The change faced resistance from some residents, who worried about the effects of more density in the neighborhood.

Rep. Suzan DelBene, left, introduces Xichitl Torres Small, center, Undersecretary for Rural Development with the U.S. Department of Agriculture during a talk at Thomas Family Farms on Monday, April 3, 2023, in Snohomish, Washington. (Olivia Vanni / The Herald)
Under new federal program, Washingtonians can file taxes for free

At a press conference Wednesday, U.S. Rep. Suzan DelBene called the Direct File program safe, easy and secure.

Former Snohomish County sheriff’s deputy Jeremie Zeller appears in court for sentencing on multiple counts of misdemeanor theft Wednesday, March 27, 2024, at Snohomish County Superior Court in Everett, Washington. (Ryan Berry / The Herald)
Ex-sheriff’s deputy sentenced to 1 week of jail time for hardware theft

Jeremie Zeller, 47, stole merchandise from Home Depot in south Everett, where he worked overtime as a security guard.

Support local journalism

If you value local news, make a gift now to support the trusted journalism you get in The Daily Herald. Donations processed in this system are not tax deductible.