Request for Proposals


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Request for Proposals

 

Pacific Northwest 

Manufacturing Facility at

Proposals due May 30, 2014

255,000 square 

foot facility with 

manufacturing 

equipment

2

Olympia

Tacoma

Seattle

Portland

Ilwaco

Raymond

Location

Located only 30 minutes off the I-5 corridor, the Satsop Business 

Park is strategically located between Portland and Seattle.

Satsop Business Park is a 1,700-acre mixed-use business and 

technology park located in scenic Grays Harbor County in 

Southwest Washington just 30 minutes from Olympia and the 

I-5 corridor.

Alissa Shay

Manager of Business Development

360.482.1651

ashay@satsop.com 

150 Technology Way

Elma, WA 98541



www.satsop.com

1.866.572.8767

FAX 360.482.1555

business@satsop.com


Background

Constructed in 2002, the equipment and facility was 

originally occupied by Boise Cascade, and most recently 

NewWood Corporation. In November 2012, NewWood 

Corporation ceased operations. On December 10, 2013 

the Port of Grays Harbor acquired the assets of former 

Satsop Business Park tenant NewWood Corporation. The 

assets include the manufacturing equipment located in a 

Port-owned building, as well as the intellectual property 

on the process of turning scrap plastics and wood fiber 

into usable building material. The Port owns the building 

and land. 



Opportunity Overview

The mission of the Port of Grays Harbor is: “To best 

utilize our resources to facilitate, enhance and stimulate 

international trade, economic development and tourism 

for the betterment of the region.” With that in mind, the 

Port of Grays Harbor is presenting this opportunity for 

your business to utilize our assets – a perfect partnership. 

We are accepting proposals from your business to 

utilize our facility with or without the associated assets 

(manufacturing equipment). Whether you desire to 

manufacture the NewWood product, or would like to 

propose an alternative use for the facility, we would like to 

hear from you.

Located only 30 minutes off the I-5 corridor, the Satsop 

Business Park is strategically located between Portland 

and Seattle. 



Request for Proposals

 

Pacific Northwest Manufacturing Facility at Satsop Business Park

 

255,000 square foot facility with manufacturing equipment

Overview

The Port of Grays Harbor is soliciting 

proposals for utilization of its 255,000 square 

foot manufacturing facility and equipment 

at the Satsop Business Park located in Elma

Washington.

3


Asset Overview

The NewWood Facility at the Satsop Business Park sits 

on a 20 acre site with more than 290,000 square feet of 

building space. Facilities include:



•   Main Plant: 255,089 square feet

•   Chip Storage Building: 20,603 square feet

•   Truck Bay Canopy: 5,235 square feet

•   Tarping Shed: 3,233 square feet

•   Admin Office Building: 2,975 square feet

•   Hydraulic/Electrical Building: 2,624 square feet

•   Truck Scale and Scale Office:  513 square feet

•   Manufacturing Equipment (see attached list)

•   Intellectual Property of NewWood (see attached)

Utilities 



   Water:

 The Port of Grays Harbor’s Satsop Business Park 

   owns and operates the industrial water system. 

   We have secure, unrestricted water rights to 2.4 million 

   gallons per day of high quality water. Rates are 

   attached.

•   


Sanitary Sewer:

 The Port of Grays Harbor’s Satsop 

   Business Park owns and operates the sanitary sewer 

   system. We have capacity for 50,000 gallons per day. 

   The system is sized for a workforce of 5,000 people. 

   Rates are attached.

•   

Stormwater:

 Tenants are required to obtain and 

   maintain an industrial stormwater permit from the 

   Department of Ecology.

• 

 Cooling Water: 

The facility is connected to a 496 foot 

   natural draft cooling tower with a 24.4 acre-feet cooling

    pond basin; potential heat exchange capacity is 6.8 

   billion BTU/hour with spray header distribution 

   to tower.

•   

Electricity:

 Grays Harbor Public Utility District (GHPUD) 

   provides electricity to customers in Grays Harbor 

   County. There are two on-site power switch yards with 

   redundant 115 kV BPA feeds, 41.5 MVA main 

   transformer with back-up and 12.5 kV site distribution 

   system.

• 

 Natural Gas:

 Cascade Natural Gas provides natural gas 

   service to this location. There is a 4 inch line serving 

   the site. 

• 

 Telecommunications:

 A variety of providers can provide 

   service to this location. Four separate fiber connections 

   serve the Park coming from different directions and 

   various providers.

4


Required Permits:

It will be the responsibility of the user to obtain and 

maintain permits for the facility. Known permits include 

but are not limited to:

•   Department of Ecology Industrial Stormwater Permit

•   ORCAA (Olympic Region Clean Air Agency) Air Permit



Strategic Advantages – Location

•   


Foreign Trade Zone

 – The Port of Grays Harbor and 

   Satsop Business Park are part of United States Foreign 

   Trade Zone No. 173 (FTZ). A FTZ is a restricted access 

   site located in or near a U.S. Customs Service port of 

   entry that provides users with cost-saving benefits. 

   FTZs were created to provide special customs 

   procedures to U.S. plants engaged in international 

   trade-related activities. The benefits of an FTZ include 

   duty deferral, reduction, or elimination. While 

   storage and distribution of goods are the most common

    uses of FTZs, goods may also be cleaned, assembled, 

   manufactured, packaged, destroyed, exhibited, 

   re-packed, sorted, graded, labeled, processed and 

   repaired within the FTZ.  

•   


Grays Harbor Innovation Partnership Zone

 – The Port 

   of Grays Harbor and Satsop Business Park were 

   designated an Innovation Partnership Zone by 

   Washington State in 2007. The Grays Harbor Innovation 

   Partnership Zone (GHIPZ) brings private industry and 

   public services together to encourage research, 

   development and commercialization of new products 

   and incubation of small business start-ups to strengthen

    and grow Washington’s coastal economy. 

•   

Proximity to International shipping: 

Just 20 miles to 

   the west of Satsop Business Park, the Port of Grays 

   Harbor’s marine terminals are located only an hour and 

   a half from open ocean. The Port has on-site rail with 

   access to both Class 1 railroads, Burlington Northern 

   Santa Fe and Union Pacific Railroad through Genessee 

   & Wyoming’s Puget Sound and Pacific Railroad. 

5


Proposal Requirements

RESPONSES TO THIS RFP MUST INCLUDE THE FOLLOWING 

ELEMENTS. Responses should address all of the elements 

identified below and should provide a sufficient level of 

detail to allow the Port to evaluate proposals. 

Please indicate if your proposal to utilize the facility is:

•   as an operator and manufacturer of the NewWood 

   product, using all of the assets and intellectual property

•   as a manufacturer of a different product using some 

   or all of the equipment assets

•   as a manufacturer of a different product using none 

   of the equipment assets

  

1.  Capability of the Team



a.

 Please provide background information on your 

   company (history, management team, expertise, etc.)

b.

  Please list and provide bios of the people in your 

   organization that will be involved with this venture. 

   Include any background information that is relevant to 

   this project.

c.

  Provide a description of past and current projects that 

   demonstrate your firm’s ability to manage an industrial 

   manufacturing facility of similar size and complexity 

   from concept initiation to a successful outcome. 

d.

  Provide information about how you anticipate funding 

   your concept including the level of co-invest, third party 

   equity, and debt.



2.  Development Concept:

 To help the Port understand 

   the scope of your proposal, please provide the 

   following elements:



a.

  Proposed use – Include product information



b.

  Jobs – Estimate number and type of permanent jobs 

   expected.

3.  Proposed Agreement Structure:

 Describe the elements 

   you propose as part of an agreement between the Port 

   and your company



a.

  Land area, facilities, equipment, and intellectual 

   property you propose to use (Note: Land is not for sale)

b.

  Lease rate: Include a proposed lease rate for both land 

   and buildings.

c.

  Purchase Price: Include purchase price for equipment 

   and Intellectual Property if you propose to purchase the 

   equipment and utilize within the facility. 



• 

20 acre site

• 

255,000 sq. ft. building

6


d.

  Timing: Indicate your desired timeline for lease 

   commencement and operation within the facility.

e.

  Port requirements: A performance bond is required 

   as part of all Port leases. Port lease policy recommends 

   the performance bond amount be six months rent plus 

   Leasehold Excise Tax of 12.84%. Terms and timing can 

   negotiated. 

 

Selection Process

Evaluation Criteria

Proposals will be considered for the lease of the facility 

and purchase of the assets, or the lease of the facility 

with some or all of the assets removed from the building. 

Proposals should identify the planned use, development/

occupancy timeline, local employment opportunities, key 

personnel, and duration of planned use. Preference will 

be given to proposals that will create long term economic 

development and employment opportunities within 

the community. The Port reserves the right to reject all 

proposals. 

Submission Time and Place

The Port of Grays Harbor must receive all responses to this 

RFP at the Satsop Business Park offices, Satsop Business 

Park, 150 Technology Way, Suite 100, Elma, WA 98541 or 

emailed to Alissa Shay at ashay@satsop.com. Proposals 

are due by 5:00 p.m. on May 30, 2014. The preferred 

responder(s) shall then enter into discussions with the 

Port on the terms and conditions of its use.

Questions about the information contained within this 

RFP are welcomed and encouraged.   



Please direct questions and requests for a facility tour to:

Alissa Shay

Manager of Business Development

Port of Grays Harbor

Satsop Business Park



ashay@satsop.com

(360) 482-1651

Your Partner for Success: The Port 

of Grays Harbor

Founded in 1911, the Port of Grays Harbor was the second 

port district formed in Washington State. Once the leading 

export port for U.S. grown timber, Grays Harbor now leads 

the U.S. in exports of American grown soybean meal and 

is the number one seafood landing point in Washington 

State. While forest products remain an important piece 

of the Grays Harbor cargo mix, the Port has substantially 

diversified the products shipped through this Pacific 

Northwest gateway to include automobiles, biodiesel and 

other liquid and dry bulk products. 

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The Port of Grays Harbor’s business model is to partner 

with private businesses that utilize the community’s 

assets to increase private investment and employment 

opportunities for the citizens of Grays Harbor.  Over the 

past 10 years, private companies have invested hundreds 

of millions of dollars in facilities on Port property. 



The diverse list of successful partners includes:

  

•   AGP, the United State’s largest soybean meal  



   cooperative 

•   Imperium Grays Harbor, biodiesel producer

• The Pasha Group, international stevedoring and auto 

   processing company 

•   Ocean Companies, commercial seafood processing and 

   cold storage facilities

 • Westway Terminal Company, liquid bulk storage and 

   terminaling operator 

The Port expanded their growth capacity with the 

recent acquisition of the Satsop Business Park, adding 

additional land and manufacturing facilities to the  diverse 

opportunities available to the Port’s current and future 

customers. 

Regional Quality of Life

Grays Harbor and Thurston Counties have unrivaled 

quality of life advantages for your company and 

employees, with the advantages of sophisticated urban 

living and unparalleled natural resources within minutes 

of Satsop. Not to mention that transportation, both 

commuting and shipping, is a breeze.

 

Capital to Coast

•   Forbes Magazine’s Top Ten locations to do business in 

   the U.S., chosen for its cost of living and recreational 

   and cultural opportunities.

•   Kiplinger’s named Thurston County #6 in U.S. Innovative

    Communities.

•   The four-lane divided highway between Satsop and 

   Olympia is only at 37% capacity, with no traffic issues.

•   The area offers year-round recreation with Olympic 

   National Park bordering Grays Harbor County and 

   Mt. Rainier and Mt. St. Helens National 

   Parks located within a 2 hour drive.

•   The most popular beaches in Washington are located in

    Grays Harbor with over 4 million visitors a year enjoying

    55 miles of beach to walk, ride horseback, fish, fly kites 

   and beachcomb.

•   The top surfing and fishing spots in the state are in 

   Grays Harbor.

•   The average price of a single family home is $129,000 

   in Grays Harbor County and $293,000 in Thurston 

   County with options ranging from living at the beach, 

   the mountains, in the city or in the country.

8


•   Thriving art communities in Olympia and historic 

   theaters in Aberdeen and Hoquiam offer live music and 

   theater of all genres year-round. 

•   Located halfway between Seattle and Portland for 

   close access to professional sports, including the Seattle 

   Seahawks, the 2014 Superbowl Champions. 

•   The region has several nearby universities, including 

   four-year liberal arts, community colleges and trade 

   schools. 

•   World-class hospitals with outstanding health care 

   providers for the latest in medical technology and 

   treatment. 



Workforce and Education

The region surrounding the Satsop Business Park is 

home to experienced and committed education and 

training partnerships leveraging educational institutions

government agencies, and community organizations 

to ensure a pipeline of highly trained workers for 

growing industries. These partnerships ensure a 

strong pool of skilled workers including manufacturing 

technicians, experienced supervisors and managers, and 

administrative support staff.



Competitive Advantages

•   An established network of education and training 

   providers within the regional “labor shed” of 233,000 

   workers, with substantial manufacturing experience.

•   Proven results in bringing manufacturing operations 

   on-line quickly with operational times of less than 

   180 days from a “go” decision to live manufacturing 

   operations.

•   A targeted recruitment and outreach plan targeting 

   existing skilled workers in manufacturing, separating 

   veterans from Joint Base Lewis McChord, creating a 

   stream of newly trained emerging workers, and 

   attracting talent from outside the region.

•   Access to workforce development funding including 

   Workforce Investment Act, Trade Act, Veterans Training

   and other State and Federal Grants to lower upfront 

   and ongoing costs for your business.

Regional Education and Workforce 

Partnership

The region is uniquely poised to access and develop highly 

skilled and motivated workers to meet both the short 

Grays Harbor College

9


and long-term growth needs of a major manufacturing 

enterprise. Leveraging strong workforce partnerships, 

access to diverse funding sources and building on past 

demonstrated successes, the skilled worker pipeline will 

continue to expand to ensure long-term growth for your 

business and other advanced manufacturers in the region.



The Regional Workforce

The regional “labor shed” consists of over 230,000 

potential employees, including over 14,000 skilled workers 

in the manufacturing sector. With macroeconomic factors 

driving unemployment, your business would be able to 

attract employees from a pool of over 75,000 workers, the 

majority of which possess post-secondary education and 

credentials. This does not include workforce opportunities 

evolving with 

separating military 

veterans and the 

region’s ability 

to attract outside 

talent. 


 

10

Rediviva Restaurant, Aberdeen



Seabrook 

Olympia, State Capitol

7th Street Theatre, Hoquiam

Tax Incentive Overview

Washington State primary method of collecting revenue 

from Business is in the form of a Business & Occupation 

Tax (B&O). Below are a few incentives specific to your 

project that may offset your liability in paying B&O taxes. 

In addition, as your project progresses, the Greater Grays 

Harbor, Inc.* will explore any and all incentives that may 

apply to your project and further limit your tax liability.

Machinery and Equipment (M&E) Sales & 

Use Tax Exemption

Available to:

Manufacturers and processors for hire

performing manufacturing and research and development 

(R&D). Testing operation for a manufacturer and 

processor for hire.

Rural County/CEZ Business and Occupation (B&O) 

Credit for New Employees

Available to:

Manufacturers, R&D laboratories, and

Commercial testing facilities located in rural counties or 

within a CEZ.



Qualifying Activity:

Creating new employment positions/ increase instate 

employment by 15 percent.

High Unemployment County Sales/Use Tax Deferral/ 

Waiver for Manufacturing Facilities

Available to:

Manufacturers, persons conditioning vegetable seeds, 

research and development and commercial testing for 

manufacturers in a qualifying county or in a Community 

Empowerment Zone (CEZ). 

Washington Customized Employment Training 

Program – B&O Tax Credit

Available to:

All Washington employers.



Qualifying Activity:

Payments to the Employment Training Finance Account 

through the Customized Employment Training Program for 

customized employee training.



Machinery & Equipment Used to Generate Electricity 

Using Renewable Energy- Sales/Use Tax Exemption

Available to:

Anyone that generates electricity using fuel cells, sun, 

wind, biomass energy, tidal and wave energy, geothermal 

resources, anaerobic digestion,technology that converts 

otherwise lost energy from exhaust, or landfill gas.

Hog Fuel and Forest-Derived Biomass – B&O Tax Credit 

and Sales/Use Tax Exemption

Available to:

▪   B&O credit is available to harvesters of forest-derived 

   biomass.

▪   Sales/use tax exemption is available on purchases of 

   hog f uel.

“Hog fuel” is defined as wood waste and other wood 

residuals including forest-derived biomass. Does not 

include firewood or wood pellets.



Other Incentives that may apply:

Reduced B&O Tax Rate for Manufacturing E85 Motor 

Fuel, Wood Biomass Fuel

Available to:

Manufacturers of E85 motor fuel or wood biomass fuel.



Property/Leasehold Tax Exemption for Manufacturers of 

Biodiesel/Alcohol Fuel, etc.

Available to:

Manufacturing of E85 motor fuel, biodiesel fuel, biodiesel 

feedstock, or wood biomass fuel.

B&O Tax Deduction for Income received from Retail Sales 

and Distribution of Biofuels

Available to:

Retail sellers and distributors of biodiesel fuel and E85 

motor fuel.

11

*www.graysharbor.org



What is the Washington State Business and 

Occupation (B&O) tax?

The state B&O tax is a gross receipts tax. It is measured 

on the value of products, gross proceeds of sale, or gross 

income of the business.

Washington, unlike many other states, does not have an 

income tax. Washington’s B&O tax is calculated on the 

gross income from activities. This means there are no 

deductions from the B&O tax for labor, materials, taxes, or 

other costs of doing business.

What is the B&O tax rate?

The B&O tax rate varies by classification. Once you know 

which classification your business fits into you can find the 

rate that corresponds to your classification on our list of 

B&O tax rates. If you’re not sure of your classification, see 

the list at: http://dor.wa.gov.



Business & Occupation Tax Rates

Major B&O Classifications 

 

Rate

Retailing    .00471

Wholesaling   

 

 

.00484

Manufacturing 

   .00484

Service & Other Activities 

 

.018

Washington State Business & Occupation (B&O) Overview

12


Tax Incentives:

Rural County Business and Occupation Tax Credit 

for New Employers

•   $4,000 credit for each job created with annual wages 

   and benefits over $40,000

•   $2,000 credit for each job created with wages and 

   benefits under $40,000

This tax credit is applied against the Washington State 

Business and Occupation tax.

Sales Tax Exemption:

 Manufacturers Sales/Use Tax Exemption

•   Sales tax or use tax does not apply to machinery and 

   equipment used directly in manufacturing operation

•   Sales of a person engaged in testing for a manufacture 

   for hire of machinery and equipment used for 

   manufacturing



Rural County Sales and Use tax Deferral Program:

•   In addition to sale tax deferral on machinery and 

   equipment Qualified Building and labor/services 

   rendered in the planning, installing and construction 

   of the project can be sales tax deferred.

Washington State Tax Incentives and Training Programs

Training Programs:

•   Washington State Workforce Development Council 

   provides specialized training for new employee hiring 

   in manufacturing.  

•   Washington State Board for Community & Technical 

   Colleges provide customized training programs.  

   Their programs offer credit against the State of 

   Washington Business and Occupational Tax. This credit 

   reduces the cost of customized training 50%.

•   Regional Education Training Center located in the 

   Satsop Business Park provides advance regional 

   workforce development training programs. It provides 

   high tech class room space and built a world class list of

    training partners from across the State of Washington 

   and the Pacific Northwest.

13


Satsop Business Park Utility Rate Schedule

Potable Water/Sewer Rates:

Unmetered Buildings

0 - 5 

  Employees/Month 

 

$  36.75

6 - 25    Employees/Month 

 

$  84.00

26 - 50    Employees/Month 

 

$173.25

51 - 75    Employees/Month 

 

$257.25

76 - 100   Employees/Month 

 

$341.25

101 - 125  Employees/Month 

 

$425.25

126 - 150  Employees/Month 

 

$514.50

151 - 175  Employees/Month 

 

$598.50

176 - 200  Employees/Month 

 

$682.50

201 - 225  Employees/Month 

 

$766.50

226 - 250  Employees/Month 

 

$855.75

Metered Buildings

< 1,000 cu ft   

 

 

$  80.00

Each 100 cu ft subsequent 

 

$    4.00

($1.50 water + $2.50 sewer)



Cooling Water:

GPM, 15 Degrees Cooling  

 

$ 2.00/gpm

Port cooling water supply at 70o F or lower, All pumping by Tenant



Industrial - Untreated Raw Water:

< 10,000 cu ft 

 

 

 

$300.00

Each 100 cu ft subsequent  

 

$    2.00

Storm Water Collection

$15 / acre / Mo.

Fire Protection Water:

Flat Rate (when applicable) 

 

$50.00/mo

Bldg Connection charge



Diesel Generator Backup Power:

250KW   

 

 

 

$1,160.00

Fire Monitoring:

Bldg 2 (at cost)   

 

 

$30.00

Elevator Maintenance:

Bldg 1 - SafeHarbor 

 

 

At Cost 

Bldg 2- Flex Tech   

 

 

At Cost 

Reactor Auxiliary Building  

 

At Cost 

Admin Building   

 

 

At Cost 

Turbine Bldg 

 

 

 

At Cost 

Current Vendor is Thyssenkrupp Elevator Corp

Electric Power:

It is the tenants responsibility to transfer electric power 

liability to themselves effective on the commencement 

date of the lease unless otherwise noted in Lease Agree-

ment. If power is not transferred, The Port at its option, 

may add a 5% Administration fee to Tenant costs.

14


Satsop Business Park is a 1,700-acre mixed-use business and technology park located in scenic 

Grays Harbor County in Southwest Washington just 30 minutes from Olympia and the I-5 corridor.

Alissa Shay

Manager of Business Development

360.482.1651

ashay@satsop.com 

150 Technology Way

Elma, WA 98541



www.satsop.com

1.866.572.8767

FAX 360.482.1555



business@satsop.com


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