Familiar name does due diligence for Foss

Jim Langus’ ties to Everett run deep.

His family has lived in the city for three generations. His father, Bill Langus, served on the Everett City Council.

In the 1980s and ’90s, Jim Langus worked as the top Everett city administrator under former mayors Ed Hansen and Bill Moore. He later worked as chief administrative officer with the Snohomish County PUD. He still lives in Everett as do his children, grandchildren and other relatives.

He wants to see local businesses and industry prosper.

“Our feelings for the community are genuine and run deep,” Langus said. “Like many others, including friends who have lived in Everett for most of their lives, we care and have an ongoing interest in Everett’s progress and opportunities.”

But he’s been put in charge of the four-month feasibility study determining whether the former Kimberly-Clark site on the Everett waterfront would make a suitable location for Foss Maritime. And it’s a role that he takes seriously.

Principals from Foss’ parent company, Saltchuk, on Oct. 2 announced they were negotiating to buy the vacant industrial property, where Kimberly-Clark finished demolition work this summer. Everett city leaders completed a rezoning process early this year and opted to reserve much of the mill site for marine industrial use.

The company would move Foss Maritime to the location. Foss’ current Seattle facility sits between the Fremont and Ballard bridges, on the Queen Anne Hill side of the Ship Canal.

While acknowledging his deep Everett roots, Saltchuck had no concerns that Langus might have a conflict of interest in bringing this deal to fruition.

“We recognize his integrity representing Saltchuk’s interests, and also his commitment to the Everett community,” said Saltchuk chairman Mark Tabbutt.

The Saltchuk/Foss deal could be big for Everett and the surrounding community. It would bring more to the area than just Foss Maritimes’ signature tugboats.

If the feasibility study proves promising and the sale goes through, the company plans to bring a full state-of-the-art shipyard to the Everett waterfront. Proposed work to be completed at the facility would include new ship construction, ship conversions and repair.

When fully running, the new Everett shipyard and home port could employ about 250 people. The expansion is likely to unfold in stages, and the timeline is subject to change.

“There would be good family-wage jobs provided directly with the shipyard, which would be much larger than its current location,” Langus explained. “In addition to shipyard work, there could be additional jobs created by vendors relied on to support the business.”

But the sale is not a sure thing. While Saltchuk likes the location of the 66-acre Kimberly-Clark site and its waterfront possibilities, it must still determine what permits would be required to develop the property in a way that meets company needs and find out how much that would cost.

Environmental issues have to be addressed. The waterway in front of the plant may require dredging to provide access for larger vessels. Then there is the clean up that Kimberly-Clark would need to complete before Foss could start development.

Finding out the answers to these issues is where Langus comes in. It is his job to work with Foss Maritime’s leadership and its consultants. He has to keep experts focused on their specific responsibilities and make sure no time is wasted in duplicating information.

Saltchuk’s feasibility study of the Kimberly-Clark site should be completed in early 2014. The proposed purchase price for the property has not been disclosed.

Tabbutt praised Langus’ efforts on the company’s behalf. “Jim understands our schedule and is consistently managing the details and providing effective leadership, working with others to meet timelines,” he said.

Those timelines are aggressive and the work is complex. Saltchuk/Foss Maritime consultants have an extensive amount of existing information to assess. In addition, other reports such as environmental studies continue to come in as they are completed.

Environmental cleanup will be an issue for any potential purchaser of the Kimberly-Clark site. Clean-up costs will remain Kimberly-Clark’s responsibility, Langus emphasized. Saltchuk does not intend to provide capital to clean up any issues that were caused by the former tenants.

Kimberly-Clark is still working with the Department of Ecology, and other agencies to identify steps for remediation of any industrial contamination left by the company. That clean up would have to be completed before Foss could develop the site.

If studies suggest that the environmental cleanup is extensive and requires a lengthy remediation, Saltchuk might not be willing to wait for Kimberly-Clark to complete the necessary steps and could take its relocation search elsewhere.

Langus hopes not. He wants this deal to go through for his city. He wants to see jobs return to the waterfront area, along those same streets where his grandfather walked home from his job at the historic Weyerhaeuser mill.

“The Kimberly Clark site presents opportunities for Saltchuk, the city of Everett and the county,” Langus said. “To have a respected company of Saltchuk’s stature and marine experience redeveloping a challenging site for a state-of-the-art shipyard for Foss Maritime, would be a significant outcome.”