Community board defers Port of Mattawa loan payment as port details audit, $17.2M tort claim and cash shortfall

The Community Economic Revitalization Board voted to defer a Port of Mattawa loan payment due in January 2026 until January 31, 2027, adding a condition the port provide updates to department staff every other meeting.

The board’s action followed an extended presentation from Gil Alvarado, the port’s executive director, who described a troubled financial picture that includes a state auditor’s investigation into alleged misappropriation by a former executive director and a pending tort claim that could exceed the port’s insurance limits. “As of January 1, I can tell you that our cash position is negative $27,000,” Alvarado said, describing operating shortfalls and mounting legal fees. He told the board the port has not received a payment from its primary user since September 2025.

The port requested a deferral of a roughly $91,764.70 payment originally due 01/31/2026 and sought recalculation of its amortization schedule. Staff recommended giving the new board and executive director time to implement corrective steps while the board retains discretion to add reporting or other conditions. Board members pressed for accountability measures and regular updates. One member urged periodic reporting to Janae, the agency staff contact, and the board amended the motion to require reporting every other meeting.

Alvarado described multiple stressors: a tort claim reported as about $17.2 million in total demand (he said the asserted damages portion is about $5.5 million with a “tripling” factor alleged by claimants), slow or missing tenant payments, legal costs tied to investigations and an operating model in which revenues do not cover wages and facility operating costs.

Board members asked whether insurance would cover the claim; Alvarado said the port’s insurance limits are $10 million and the claim raises questions about insurability, adding that port counsel is beginning discussions with the claimants’ attorneys. The executive director described plans to sell nonessential assets and pursue grants or low-cost funding for infrastructure upgrades as part of a turnaround strategy.

The board’s motion to approve the one-year deferment passed with the stated amendment: the Port of Mattawa must submit progress reports to Janae every other meeting and accept any additional reporting conditions the staff deems necessary. The board recorded a recusal from Katie Nelson on the vote.

Next steps include the port’s scheduled reporting and any follow-up staff recommendations; the board retained discretion to add conditions or revisit the deferment if circumstances change.