PenPly operated for 22 months before closing in November and vacating the premises at 439 Marine Drive on Dec. 20, 2011.
In a complaint filed in Clallam County Superior Court April 2, the Port claims PenPly entered into a 10-year lease with the Port in 2009. The lease was amended twice, most recently in February 2010, with rent set at $13,500 per month for a period of 10 years, according to court documents.
The Port claims it is owed $1.57 million for breach of PenPly’s lease, $70,000 for breaching a license agreement and $8,000 for breaching an equipment rental agreement.
“We represent the interests of our taxpayers and must pursue all means of collecting what PenPly owes to the Port.” said Jeff Robb, Port executive director. “This legal action will allow us to determine whether there are assets available to satisfy PenPly’s debt and if other means of collection are available.”
PenPly owes the City of Port Angeles nearly $300,000 for unpaid utility bills and $523,000 to the state Department of Labor and Industries for workers’ compensation premiums.
The mill, which received a $1 million state Department of Commerce loan and $700,000 from investors to open in March 2010, employed up to 159 people at its peak production.
PenPly must respond to the Port’s complaint within 20 days.