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The Port of Longview, looking north, with the Columbia River at bottom and wind turbine storage on the left. At right is Longview Fibre. At left center is RSG's log sort. The large vacant area in the center is property for the proposed grain terminal. Bill Wagner / Daily News file photo

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Eminent domain ruling favors Port of Longview

Monday, December 8, 2008 11:39 PM PST

By Erik Olson

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The Port of Longview can force Kalama-based RSG Forest Products to sell the port about six acres of land for a proposed $150 million grain elevator, a Cowlitz County Superior Court judge ruled Monday.

The port proved both the “public use” and “public necessity” of its October condemnation of RSG’s property near the west industrial, Judge Steve Warning said.

“I’m not going to substitute my business judgment for that of these port commissioners,” Warning said.

Both sides will now start negotiating the sale price. If they can’t reach an agreement, a jury would set the amount at trial, which would likely happen next spring, said Larry Smith, the port’s Seattle-based attorney.

The grain elevator will be paid for by grain company Bunge America and Japanese firm Itochu, known together as EGT. The port also is planning to build a new, $6 million Berth 9, which is expected to make the port a major West Coast player in the grain export business. The port is looking to lease the land to EGT for up to 75 years.

The grain elevator is expected to employ about 50 people, with about 30 ancillary jobs. Construction of the development should employ about 300 people at peak, according to the port.

RSG has proposed building a $100 million sawmill at the 54-acre site in the port’s west industrial park, adding 200 jobs to the local economy. The company fears the loss of the six-acre parcel will wreck those plans.

“It makes it very, very difficult for us to continue,” said Greg Mobley, RSG’s chief financial officer and part owner.

During the two-and-a-half hour hearing at the Hall of Justice Monday, RSG attorney Clark Balfour argued that the port overestimated the economic viability of the grain elevator. He called one of the port’s potential competitors, grain merchant James Wu of United Harvest at the Port of Vancouver, to question the port’s projections of how much grain will come through the EGT terminal and how many ships.

The Port of Longview’s projection of 30 million to 35 million metric tons of grain exports is as much as 20 percent too high, said Wu, who is also the incoming president of the Pacific Northwest Grain Exporters Association.

“I personally don’t believe (the port) will get there,” Wu said.

Under cross examination by port attorney Smith, Wu added that projections of grain exports beyond two years are “arbitrary.”

Ken O’Hollaren, the port’s executive director, said EGT’s willingness to invest $150 million in Longview shows the company thinks the project will be successful.

“That’s our best indication of the economic viability of the property,” O’Hollaren said.

Mobley said he still supports the grain elevator project, but not if it requires condemnation of RSG property to be successful.

“It’s disappointing when you have government being able to take private property for the purposes of another private industry,” Mobley said.

Related articles:

Port's eminent domain bid headed to court  (Nov. 14)

Port to seek eminent domain acquisition of RSG land  (Oct. 29)

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Go Chinooks!!! wrote on Dec 9, 2008 4:33 AM:

" Can somebody please tell me what the public use and public necessity" of this is?? This is outright robbery and is a disgrace and severe abuse of power. We don't need a foriegn company getting tax breaks that the Port worked out for them. The other Columbia river elevators are at 60% of capacity on exporting grain right now and thats because THATS ALL THE GRAIN THERE IS TO EXPORT in this area. Add onto that The Port of Longviews projection of 30 million to 35 million metric tons of grain exports is as much as 20 percent too high, and you've got another Port of Longview Debacle. Public good is a road, a freeway, maybe a school NOT a grain elevator. Those of you who think this is a good idea think of how you'd feel if it was your property the Port had just stole from you ..... "

oldracer1 wrote on Dec 9, 2008 4:50 AM:

" RSG shouldn't be surprised with the outcome. They should have asked to have the case heard by an of area court.
Hopefully the fine citizens of the port district will remember this at the next election. While it may have been one big busness against another business this time, next time it could very well be a business or someone with money trying to take a private citizens land, and the same court will her that case. "

snowcat1962 wrote on Dec 9, 2008 5:23 AM:

" more jobs for long shoreman, go figure "

FiscalConservative wrote on Dec 9, 2008 5:30 AM:

" Two hundred jobs from RSG or 50 jobs from the Port.. Hmmmm.... Another version of government going backward! Why doesn't someone go find a manufacturing or distribution company that will bring a thousand jobs here!!! "

US CITIZEN wrote on Dec 9, 2008 6:14 AM:

" it will be 10 years for rsg to rebound and have the need to build a new mill.they are shut down now.this is good deal for everyone,the current mill needs dredged in front of there docks. the building of the elevator will probly help have this happen, and if they get a good price for the property.rsg will be cutting a fat hog. "

spanky wrote on Dec 9, 2008 7:03 AM:

" 200 jobs vs. 50 jobs, at this rate we wont have any jobs. More forward thinking by our local govt. Would some one explain how this is better for our community? "

Small Town Girl wrote on Dec 9, 2008 7:07 AM:

" You know, my neighbors have this really nice piece of property with a great view. I'd like to buy it and start my own business, I think I'd do great. Problem is, they won't' sell it. They keep saying that it was theirs first, they paid for it....stuff like that. But, you know what, I want it, even if it's not mine, so I think I'll just go to court and get a judge to force them to sell it to me. Sounds ridiculous? It is! "

Mr40cal wrote on Dec 9, 2008 7:13 AM:

" Finally, some good news!!! Thanks to Judge Warning for for a fair and quick decision. "

No rose glasses wrote on Dec 9, 2008 7:33 AM:

" Seeing how's the Chinese shipping company bought Longview Fibre's docks, and with the port regaining RSG's property via Legalize Theft, The port dock can move their large container crane over the property to accomadate, via tracks installed. Next will come their saying, we'll have to shell out more tax payer monies for an addtional container crane?? This will all come at the expense of the TAX Payers of Cowlitz County.Don't forget these issues, when elections come about, for the port commisioners!! Might make movements toward a RECALL!! It has been shown, that in fact, for the port says new grain elevators will bring more trade, theres not enough grain trade as it stands, to encompass the elevators now exsisting. WHO ARE These Masked YAHOO's "

G444QM wrote on Dec 9, 2008 8:03 AM:

" LOOKS LIKE ANOTHER ATTEMPT TO BRING IN MORE BUSINESS THAT HAS A CHANCE TO START UP AND THEN SHUT DOWN. THIS SORT OF REMINDS ME OF THE MINT FARM AREA. SHORTED SIGHT WILL FAIL IN THE LONG RUN, WE DON'T NEED FOREIGN INVESTMENT, BUT SLOW AND STEADY GROWTH OF LOCAL BUSINESS. OOPS, I FORGOT WE STILL HAVE THE GOOD OL' BOY SYSTEM AROUND HERE. "

Kalama Dude wrote on Dec 9, 2008 8:13 AM:

" Ken O'Hollaren is on some decade long power trip and he clearly has lost all reason or ability to understand the basics of business or decency. He has employed managers who act on his behalf and they too appear to seriously live outside the realm of reality. This situation alone speaks to their power hunger and kingdom building issues. It is too bad some group can't take this entity over and put them back on planet earth before they take us all down with them. The economics of this project alone confirm what questionable managers they are and lead to very serious questions about their ability to lead with the best intentions of the local citizenry and tax payers at heart. It would appear a take over is the only way to stop them from chasing windmills straight into the ground. TDN should demand a lengthy one and one interview with O'Hollaren to force him to explain his actions and to outline in detail his exact plans for the future of this port and how they could or should contribute to the economic viability of the region, instead of doing what they appear to be doing and actually damaging it. These actions deserve a full recall if that is possible or practical. Thanks "

mike oxbigg wrote on Dec 9, 2008 8:23 AM:

" I support the timber industry whole heartedly, but I don't know what to tell you Greg Mobley/RSG....You've drug your feet on these sawmill plans long enought. Get busy growin' or get busy dyin'. Move over and let the "Big Dogs" eat. "

98626 wrote on Dec 9, 2008 8:31 AM:

" Interesting "busniess" decision made by the judge which will produce 50-70 long term jobs vs. 200 long term jobs for this community. 150 family wage long term jobs lost due to another well paid administrator's business decision. "

TDN Bad Boy wrote on Dec 9, 2008 9:06 AM:

" This is good news. It's time to make the port bigger and better and take business and jobs away from the upriver areas of Kalama, Vancouver and Portland. Longview, as the first shipping stop upriver from the mouth, should have a major port. The fact that our port has not grown in decades is one reason Longview has failed to grow at a rate that would make it a vibrant community. This is a start to changing that. It would be nice to see the port go after the Reynolds location and make it into a major container destination. Shippers would love to use this port instead of having to go all the way to Portland or Vancouver. There is no reason that should not happen. "

Mr40cal wrote on Dec 9, 2008 9:29 AM:

" Bad Boy, I never thought that I would agree with you, but you hit the nail on the head this time!! Right on!! I would like to point out that ALL of the Columbia River grain terminals have been operating non stop for many years. How many sawmills can say that? Especially those run by the Saunders family? I can see by the comments here that the people of this area know virtually nothing about the grain industry. If they did, they would embrace this plan. The crappy sawmill plan is dead folks, get over it!!!! "

columbian wrote on Dec 9, 2008 9:35 AM:

" Whats all the fuss about RSG still has a large area for there sawmill.And they have had time to start working on building a mill. "

gimpy wrote on Dec 9, 2008 9:51 AM:

" This is property acquisition at the end of a gun barrel! The arguments have been made here about the fact that Kalama exports all the grain that is available. What is the Port of LV trying to do? Horn in on Kalama? Of course, it will all be a moot point if someone in the Port business doesn't pull his head out pretty soon and speak up about the possibility of a total shipping shut-down if there are LNG tankers in the lower river. "

TDN Bad Boy wrote on Dec 9, 2008 10:08 AM:

" Oh boy here goes that LNG the sky is falling routine again. Yes Gimpy we've heard your NYMBYism before. And like before you are exaggerating beyond belief. If LNG goes through, the shipping regs and rules on the Columbia will be changed to accommodate all. And there will be plenty of time to make that happen since it will take more than a year to build the terminal. So keep up your propaganda campaign. Like most NIMBY propaganda, it's all hot air. "

TDN Bad Boy wrote on Dec 9, 2008 10:27 AM:

" And Gimpy, before you accuse the Port of Longview as trying to horn in on Kalama, let me give you a history lesson. Longview had a grain elevator long before Kalama did. So if Longview is trying to horn in on Kalama. So what? Kalama did exactly that. Seems like fair play to me. "

Mr. Bastinado wrote on Dec 9, 2008 10:51 AM:

" TDN Bad Boy, I must say (like 40cal did) that I'm in total agreement with you on the grain elevator issue. Indeed, nail on the head. However, I'm still rallying for Bunge and Itochu to build the dock at their own nickel, then turn it over to the port for $1. As much as I'd like to see those silos there, I don't want to pay for the dock. After all, $5 mil is just "top drawer" money to these corporations. One other thing that's gonna happen (mark my words), once this new elevator is built, the port is gonna come to us taxpayers with their hand out to the tune of about 3-4 mil to demo out the old silos at Berth #4 (the old elevator). "

Proud Teacher wrote on Dec 9, 2008 11:19 AM:

" Why is a job in Kalama a bad thing? As long as it is in Cowlitz County, who cares? TDN Bad Boy, why bad-mouth the Port of Kalama? It is run MUCH more efficiently at a much lower tax base than in Longview. BTW, that's where Cameron Family Glass, with over 100 family-wage jobs, chose to locate. They wouldn't even be in Washington if it weren't for the direct efforts of Governor Chris Gregoire. The company planned to locate in Oregon, but our governor persuaded them that Kalama would be a great choice. Yes, she has helped bring good jobs to our county, but I guess Kalama isn't good enough for you. "

DW wrote on Dec 9, 2008 11:39 AM:

" I'm not exactly sure what RSG is bitching about, they have layed off most of their workers, and the mill is shuttered right now. But did anyone see an article in the paper about it?? It's big news if Steelscape lays off 28 people, but nothing if RSG lays off the entire mill??? Maybe RSG is trying to overvalue their property to get the best price?? Something smells fishy here, and I don't think it's the fish I wrapped with a Longview Daily News and stuck in my freezer yesterday. "

golfer wrote on Dec 9, 2008 2:02 PM:

" tdn bad boy ... Like you said before, the rules will be changed to accommodate the river traffic. If I may ask, how do you know that? Are you on the board of directors? LNG has changed their tune so much in the past, & been totally silent about other certain issues, it scares me. When they get their way, you can bet the farm, you will see many things occur you didn't think of. "

TDN Bad Boy wrote on Dec 9, 2008 2:54 PM:

" Oh whose board of directors? No board of directors that I know of sets the shipping rules on the CR. I do know of at least one shipper that has asked the Coast Guard about the LNG issue, and were re-assured that their work would not be hindered. I read that to mean the rules will change to accommodate the river traffic in respect to the tankers. The rules on the CR were not written in stone and brought down by Moses. Like everything else, they can be revised as the needs require. To think otherwise is just plan NIMBY propaganda scare tactics. And is it any wonder to you that LNG has acted the way you say. The protesters from this community hasn't exactly made them feel welcome. Nor has the local and state governments. But what can they expect from an area controlled by corrupt Liberal Democrat political machines. "

rhino wrote on Dec 9, 2008 3:31 PM:

" i dont know if you have noticed but our economy is in the toilet! everyone is laying off and/or cutting back. do you think the Sanders family enjoys laying off when prices are down? its called business!I dont agree with how they lost that property but its done now, move on. in regards to tdn bad boy-isnt the lng site for cali and not ore or wa? whatever they decide at least i will make money hand over fist building them! "

Roudyruss wrote on Dec 9, 2008 6:52 PM:

" I agree that using eminent domain is low but at the same time this is great for our county. I have worked at most local sawmills including RSG and I seriously doubt they will ever build a new mill. Now I work at a local fabrication shop and when this job starts we will be hiring a LOT of people as will all the other fab shops in town. We are told this job will last several years too. This project is ready to go now instead of "we might build a sawmill someday". "

Go Chinooks!!! wrote on Dec 9, 2008 7:39 PM:

" You people amaze me, this isnt about RSG or the saw mill or what they coulda woulda shoulda this is about an entity taking property from the rightful owner. We should all be outraged. Eminent Domain was brought about for freeways and roads and other common good needs. NOT A COMMERCIAL ENTERPRIZE. TDN bad boy why arent you leading the charge on this???? This is the real issue here and you all miss the point, if they can do it to RSG today they can do it to you and I tommorrow. "

Hershey's Squirt wrote on Dec 9, 2008 8:36 PM:

" Try reading about Kelo v. City of New London and then you may realize why this was approved. Then read a little about Bunge and you may realize this is a good thing for Longview. Then read about the dying logging industry and you may come to grips with reality. Don't look back - look ahead. Follow the Port... "

TDN Bad Boy wrote on Dec 9, 2008 8:53 PM:

" Go chinooks. I live in Longview and I support the Longview School District. This is good business for Longview and that's why I support it. They used a legal means to do this. You do like, change the law. I agree completely with this. This is good for business. This give the port a chance to grow and growth is good. Let's start getting some of the industries that are settling in Kalama to come back to Longview. We need growth in this city and this could be the start of an expansion that leads to more. We need forward thinking at the port and in this city and in this region. That's the only charge I'm leading. Let's get aggressive toward bringing business back to Longview and let's prosper from it. I could care less about places like Kalama and Vancouver. It's time to make this a thriving community that opens its arms to business growth. That is why I am for this. They used the law and there is nothing wrong with that. "

Go Chinooks!!! wrote on Dec 10, 2008 7:26 AM:

" TDN your "I could care less" comment answers the whole question. Lets talk about how great a deal this was in 10 years....... "

Kalama Dude wrote on Dec 10, 2008 7:52 AM:

" What a freaking hypocrite you are Bad Boy. You preach for months on end about less tax abuse, less taxes, less government, less government in our bidnez and now this? Exactly what business are you in that apparently would so directly prosper from the Port activities? Frankly after all your anti tax and government vitriol in the last year you owe us an explanation on why this should be OK. You claim you are business owner and if so other companies and certainly customers from this region can very positively affect your bottom line, yet you apparently are more than a little happy to throw them all under the bus. What a wonderful person you are to be so blunt about anyone who doesn't look and act and smell and talk and apparently think just exactly like you. You better give credit where it is due regarding Cameron Family Glass being in Kalama, because all you did for months was whine about how the Governor didn't do squat to help or bring new business to THIS REGION. Before it was region and now apparently it is Longview only, heck I am sure Kelso apparently means nothing to you as well. I bet this is just an angle to incite the masses like me to riot and good job that worked, but if this is truly your slant on this specific argument, then you have less credibility now than I could have ever imagined before. HYPOCRITE with a capital H. "

golfer wrote on Dec 10, 2008 8:26 AM:

" I agree go chinooks. tdn bad boy could care less what happens in other communities. His attitude about NIMBY'S, says a lot about his thinking. One wonders if he would change that attitude if he lived on Puget Island within eye sight of the proposed LNG site. Pathetic. "

mole wrote on Dec 10, 2008 8:46 AM:

" If this a bad Idea, why is a vancouver/portland area grain company building the elevator[BUNGE].50 jobs verses 200 how did you come up with that number??and all longshore jobs, at that?Construction workers,concrete laborers/finishers,carpenters,electricians[sp]and then you will have rail roads to bring rail cars to the elavator.The port will build the dock not the elavator!!!lets see I counted out about 500 new jobs to get this rolling!!STOP THINKING THIS IS JUST FOR LONGSHOREMEN??lots of longview residents will get jobs!!! "

Kalama Dude wrote on Dec 10, 2008 12:33 PM:

" Hello Bad Boy we all know you have read my last message where is your response? I know what your tactics are and have been, when someone puts you in the corner you clam up and quit posting, then a few days you later you reappear like nothing was wrong or out of whack. Well that along with your confusing and hypocritical opinion on this issue is wrong PERIOD so come back, make some weird excuse about being busy and clearly we all don't know how much time it takes to run a business, when in fact you must have lots of free time to be able to post on TDN website all day everyday. Tick tock man do us proud and prove me WRONG. "

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