NEWS RELEASE                        For More Information:

For Immediate Release

Port Communications Manager Carolyn Casey: 360-676-2500
Georgia-Pacific Communications, Melodie Ruse: 404-652-4747

Georgia-Pacific Communications, Carolyn McGreevy: 360-817-2124             

Port and Georgia-Pacific Announce Tentative Agreement
Port to Acquire all Georgia-Pacific Whatcom County Real Estate in Exchange for Cleanup

            BELLINGHAM, Wash. - The Port of Bellingham and Georgia-Pacific Corp. today announced they have reached a tentative agreement for the port to acquire all of Georgia-Pacific’s Whatcom County real estate.   The proposed transaction will involve no cash but the port will assume responsibility for known environmental cleanup of the site. The proposed transaction includes renewable leaseback provisions to give Georgia-Pacific the flexibility to continue operating the tissue mill as long as it is economically viable for the corporation.  Georgia-Pacific said the proposed transaction would have no material effect on its second quarter results of operations.

            The port and Georgia-Pacific have been in discussions about public ownership of the site since late 2003, when company officials first contacted the port. The joint city/port-sponsored Waterfront Futures Group recently released a draft plan that recommends public ownership of this key waterfront property, and the port has had numerous community requests to help bring the land into public ownership for cleanup and reuse.

 “It looks promising that this deal can ensure that the public controls the future of the Bellingham waterfront, but there is a great deal of work to be done during the 120-day due diligence period before this is a done deal,” said Port Commission President Scott Walker.  “Port commissioners are going to want to be certain that we know the cost of the cleanup and that the value of the property is significantly greater than the cost of restoring it in order for this to be a prudent transaction for us to take on behalf of taxpayers.”

            Property included in the tentative agreement includes all of the company’s waterfront property (approximately 137 acres), plus more than 100 acres at locations around Whatcom County.

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            “We’re pleased that the property will ultimately go to the people of Bellingham,” said Glenn Taylor, Georgia-Pacific’s vice president - manufacturing, West.  “It’s been our goal all along to work in the best interests of our community and the company, and this agreement allows us to do that.”

            The tentative agreement allows Georgia-Pacific to complete its environmental analysis of site conditions while the port conducts additional research and due diligence for the next four months to better understand site cleanup and redevelopment costs. During this time, the port agreed not to take any additional condemnation action for the aerated stabilization basin (ASB).  In addition, the port and Georgia-Pacific will ask the Department of Ecology to postpone its evaluation of potential cleanup alternatives for Whatcom Waterway until the end of the due diligence period to allow consideration of a cleanup opportunity that results in a new marina in the ASB Lagoon.  Both parties will analyze the transaction, and support a state-supervised cleanup plan to move forward consistent with future land use. 

            According to the agreement, as development plans for the waterfront unfold, the port will offer portions of the property for sale to other entities for commercial, educational and institutional development.  The port will work with the City of Bellingham to identify public access and open space opportunities at the site and infrastructure development throughout the property.

            “This breakthrough gives the community the opportunity to shape the future of its waterfront and bring the vision of the Waterfront Futures Group alive,” said the port’s executive director Jim Darling.  “Now the next essential step is forming strong partnerships with other government entities and with the private sector to move this key community project ahead. The port can take the first step. Now, we as a community must work together if we want this to be a success.”