Port of Edmonds experiences net loss of $700K
Last updated 8/1/2020 at 1:51pm
UPDATE: Statement from the Port of Edmonds:
Recently, the Edmonds Beacon reported that, according to Edmonds City Councilmember Susan Paine at a council meeting, the Port of Edmonds' recent financial report reflected COVID-19 impacts, including a net loss of about $700,000.
That is inaccurate, said Brittany Williams at the Port.
"On May 11, 2020, Port of Edmonds staff presented Port commissioners with a 'worst-case scenario' forecast based on potential COVID-19 implications," she said.
"The report predicted a possible reduction in 2020 net income from $2.3 million to $1.6 million. At this time, the financial impact of COVID-19 on the Port of Edmonds does not appear to be as severe as originally predicted, and the Port has not experienced a net loss. The Port’s primary revenue sources, that being marina operations and commercial rental properties, are both stable.
"Net income for the period ending June 2020 was $1.4 million. A full report on second quarter earnings for 2020 will be presented at the Aug. 10 Commission meeting."
According to Edmonds City Councilmember Susan Paine, the Port of Edmonds' recent financial report reflects COVID-19 impacts, including a net loss of about $700,000.
Paine shared the information July 14 during the outside reports portion of the City Council meeting.
To manage the loss, Paine said, the Port plans to defer some capital projects. Much of the Port's revenue is from fuel and rentals, she said; 12 tenants signed up for the rental deferral program that allowed for a three-month rent deferral plan with payback before June 2021.
Of the 12 that signed up, 11 are still participating, and two are nearly paid up.
Some tenants need more leeway due to the state's phasing as some uses will not be fully operational until Phase 3, Paine said.
At the same time, Paine reported, the Port is working on two large projects – a $1 million project to redo the exterior of Building 3 while the building is occupied.
The Port has experienced cost overruns, and there are safety concerns for employees working in the building, Paine said.
The second project is a gangway replacement for the whale-watching boat operated by Puget Sound Express.