Request for Proposals
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Request for Proposals
Manufacturing Facility at
Proposals due May 30, 2014
foot facility with
Located only 30 minutes off the I-5 corridor, the Satsop Business
Park is strategically located between Portland and Seattle.
150 Technology Way
Elma, WA 98541
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
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
Request for Proposals
Pacific Northwest Manufacturing Facility at Satsop Business Park
255,000 square foot facility with manufacturing equipment
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,
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)
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
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.
Tenants are required to obtain and
maintain an industrial stormwater permit from the
Department of Ecology.
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
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
Cascade Natural Gas provides natural gas
service to this location. There is a 4 inch line serving
A variety of providers can provide
service to this location. Four separate fiber connections
serve the Park coming from different directions and
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.
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.
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.
• 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
Please provide background information on your
company (history, management team, expertise, etc.)
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
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.
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
Proposed use – Include product information
Jobs – Estimate number and type of permanent jobs
Describe the elements
you propose as part of an agreement between the Port
and your company
Land area, facilities, equipment, and intellectual
property you propose to use (Note: Land is not for sale)
Lease rate: Include a proposed lease rate for both land
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
Timing: Indicate your desired timeline for lease
commencement and operation within the facility.
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
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
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 email@example.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:
Manager of Business Development
Port of Grays Harbor
Satsop Business Park
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.
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
• Imperium Grays Harbor, biodiesel producer
• The Pasha Group, international stevedoring and auto
• Ocean Companies, commercial seafood processing and
cold storage facilities
• Westway Terminal Company, liquid bulk storage and
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
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.
• 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
• 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
• The top surfing and fishing spots in the state are in
• 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.
• 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
• World-class hospitals with outstanding health care
providers for the latest in medical technology and
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.
• 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
• 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.
The region is uniquely poised to access and develop highly
skilled and motivated workers to meet both the short
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
veterans and the
to attract outside
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
Manufacturers and processors for hire
performing manufacturing and research and development
(R&D). Testing operation for a manufacturer and
processor for hire.
Manufacturers, R&D laboratories, and
Commercial testing facilities located in rural counties or
within a CEZ.
Creating new employment positions/ increase instate
employment by 15 percent.
Manufacturers, persons conditioning vegetable seeds,
research and development and commercial testing for
manufacturers in a qualifying county or in a Community
Empowerment Zone (CEZ).
All Washington employers.
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
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.
▪ B&O credit is available to harvesters of forest-derived
▪ 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
Manufacturers of E85 motor fuel or wood biomass fuel.
Property/Leasehold Tax Exemption for Manufacturers of
Biodiesel/Alcohol Fuel, etc.
Manufacturing of E85 motor fuel, biodiesel fuel, biodiesel
feedstock, or wood biomass fuel.
Retail sellers and distributors of biodiesel fuel and E85
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.
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
Service & Other Activities
Washington State Business & Occupation (B&O) Overview
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 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
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 Workforce Development Council
provides specialized training for new employee hiring
• 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.
Satsop Business Park Utility Rate Schedule
Potable Water/Sewer Rates:
0 - 5
6 - 25 Employees/Month
26 - 50 Employees/Month
51 - 75 Employees/Month
76 - 100 Employees/Month
101 - 125 Employees/Month
126 - 150 Employees/Month
151 - 175 Employees/Month
176 - 200 Employees/Month
201 - 225 Employees/Month
226 - 250 Employees/Month
< 1,000 cu ft
Each 100 cu ft subsequent
($1.50 water + $2.50 sewer)
GPM, 15 Degrees Cooling
Port cooling water supply at 70o F or lower, All pumping by Tenant
Industrial - Untreated Raw Water:
< 10,000 cu ft
Each 100 cu ft subsequent
Storm Water Collection
$15 / acre / Mo.
Fire Protection Water:
Flat Rate (when applicable)
Bldg Connection charge
Diesel Generator Backup Power:
Bldg 2 (at cost)
Bldg 1 - SafeHarbor
Bldg 2- Flex Tech
Reactor Auxiliary Building
Current Vendor is Thyssenkrupp Elevator Corp
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.
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.
Manager of Business Development
150 Technology Way
Elma, WA 98541
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