Port Can't Spend Taxpayer Money Fast Enough, Pays Top Dollar For Help Emptying Coffers

If you've been hoping that itchy aneurysm of yours will pop a stroke on you and leave you blessedly free of worldly cares, we recommend the new P-I series On the Waterfront as a trigger event.

We're on Day 2 of the three-day series. Yesterday featured the Port's no-bid, no-audit hospitality towards its hospitality contractor. Today covers the Port's similar treatment of the firm that runs its cruise terminals. Tomorrow Port chief Mic Dinsmore's pork-laden ass takes a turn in the hot seat.

As background, the Port's haul from property taxes was $62.7 million this year, to rise to $68.8 million the next. "Most ports," adds the P-I suggestively, "are profitable without resorting to a tax levy."

Under a no-bid contract, the Port pays Columbia Hospitality base management fees to run its Bell Harbor International Conference Center and World Trade Center Seattle, and then splits the profits. So far, the profits for Bell Harbor have been split 60/40, almost like partners. For their part, the Port paid $11 million in construction costs, gave Columbia $600,000 in working capital for expenses, and agreed to fund operating deficits. For their part, Columbia agreed not to really keep good track of their finances. (Sounds fair! Let's roll!)

Bell Harbor began turning a profit in 1998, we think. No one's really sure, because an audit found that Columbia's financial records from 1997-99 are useless. (Columbia: "Computers! Kablooie!") The audit found that Bell Harbor had made $1 million in profit that hadn't been paid into the Port's account. (Port: "Who cares! We have all that property tax money!")

The Port begged Columbia to accept 57.5% of the profits for running its corporate club, World Trade Center Seattle, serving Port clients in the Port's new building. When the Port renegotiated the contract, the WTC was showing an unexpected profit, so they agreed to up Columbia's take to about 65%. (Makes sense! After all, they provided mints!)

The Port's lead negotiator, who thought the deal stunk, was later laid off. She didn't "get it." The correct response is to give Columbia a 5-year extension of both contracts, beginning next year. But at least the Port has learned their lesson about oversight of taxpayer's money:

Despite vowing to keep a closer eye on its facilities, the port hasn't audited either Bell Harbor or WTC Seattle since 2002.

(Ha! Gotcha!)