Journal staff report

A business owner says that the Port of Friday Harbor failed to offer a promised lease in the port’s new Spring Street Landing Building.

Mike and Jan Close, San Juan Island business owners, wrote in a press release that “the reasons are due to blatant conflicts of interest of the port commission, and retaliation for a lawsuit over the cause of the [Spring Street] fire.”

When the Spring Street Landing Building burned down in August of 2013, it took with it space leased by the couple. In the aftermath, they moved their marine repair and brokerage business to another facility in Friday Harbor.

A lease termination letter sent to Close from Port Director Marilyn O’Connor in September 2013 stated that “the current tenants of the Spring Street Landing Building will be given the first opportunity to lease space in the building (new or repaired), once it is ready for leasing.”

In July of 2015, Commissioner Greg Hertel told the Journal that past occupants were welcome to come back and “we passed a resolution that all those businesses there before the fire would get a chance to return.”

Close said in his press release that he was not notified that the building was “ready for leasing,” nor offered the opportunity to negotiate a lease.

In February 2016, Close said he attended a port commission meeting to request a new lease of port property to expand his business. Close also said he asked Hertel and Commissioner Mike Ahrenius to recuse themselves from the discussion, because they operate businesses in direct competition with Close. Commissioners say, according to their attorney, there is no conflict of interest.

At a March 23, 2016 port commission meeting, Ahrenius said he assumed Close was not interested in a lease because he did not send in a proposal, and the port entered into negotiation for the final space with a new person because they never heard from Close.

According to Deanna Eltinge, port administrative assistant, notices were placed last February through April on the port’s website asking for lease proposals. Three of the four previous tenants responded and renewed their leases. Commissioners said they never personally reached out to any previous tenants.

The building has four spaces total and all have occupants slated to move in once the building is complete.

At the March 23 meeting, Close asked if his lease was not renewed because Close sued the port over the fire.

Ahrenius replied that, “maybe he [Close] was preoccupied with the lawsuit and didn’t pay attention.”

Mandi Johnson and Courtney Oldwyn contributed to this piece.

(Editor’s note: An earlier version of this article incorrectly stated that the port’s notices were placed in the newspaper.)