2023 Election: Port of Benton race pits former boss against incumbent commissioner

Port of Benton voters have a choice to make in the Nov. 7 general election.

They can return an appointed incumbent who has spent the past two years mastering the minutiae of port business.

Or they can turn a retired executive director who helped shape the organization into an elected leader.

Christy Rasmussen, a former school principal now working for Energy Northwest, was appointed to the port’s three-member commission in 2021, filling a vacancy created when Bob Larson retired four years into his six-year germ.

She is being challenged by Scott Keller, who retired from the port as its executive director in 2019. He was one of four candidates for the board opening when Larson left.

What’s at stake

The Port of Benton is based in north Richland and covers much of western Benton County. The Port of Kennewick to the east covers the rest of the county.

The district extends west to Prosser, taking in parts of West Richland and Benton City. Rasmussen and Keller are vying for Position 2, which covers the north end. She lives near Hanford High School. He lives in Horn Rapids.

The port manages various properties as part of its mission to promote business and job growth.

It employs 22 plus the three commissioners. The 2024 budget, slated to be approved in early November, anticipates $24.4 million in expenses.

The port is responsible for a range of facilities that includes airports in Richland and Prosser, wine parks in Prosser, the Walter Clore Wine & Culinary Center, the former Hanford railroad, business and industrial complexes, a barge slip on the Columbia River and Crow Butte Park.

Revenue comes from tenant leases, grants and loans and property taxes. Lease revenue is projected at $6.7 million in 2024, 27% more than the 2023 budget.

The increase is due in part to raising rents on port-owned properties to market rates. The rent increases were an issue in the primary election.

It also expects another revenue bump when it implements an as yet-undetermined rail car fee set to take effect on July 1. Nearly 15,000 rail cars use the rail line each year.

The anticipated 2024 property tax rate translates to a $159 bill for owners of property with a taxable value of $500,000.

The port touts that its property tax rate has dropped 21% since 2018.

That doesn’t automatically translate into lower tax bills. The bill depends on how much the individual property assessment changes over the same period.

Using the Tri-City Association of Realtors median home values for 2018 and 2023 as a proxy for tax values, the median tax bill would rise to $136 in 2024, from $117 in 2018.

Candidate priorities

Rasmussen said her priorities include thoughtful, conservative management of the port’s many assets. That rests on having a detailed vision that allows the port to lay out a road map to the future while making sure it can take advantage of opportunities when they crop up.

When the budget and plan are aligned, she said, the possibilities are endless.

She cited the two airports as examples. Both receive funding from the Federal Aviation Administration (as does the commercial airport operated by the Port of Pasco.) If and when FAA grants are available, having projects ready to go gives it a better shot at securing money.

The port’s efforts around clean energy are another priority.

Atlas Agro, the Swiss startup that wants to build a $1.1 billion carbon-free fertilizer plant in north Richland, is a telling example. In March, the port agreed to sell a 150-plus acre site to Atlas Agro once it completes a feasibility study.

Rasmussen said the study is 80% complete and that Atlas Agro has made progress on securing some of the up to 350 megawatts of power it needs. It has agreements with Energy Northwest and the Bonneville Power Administration, she said.

Atlas Agro has also been selected to participate in the Department of Energy’s recently announced Pacific Northwest hydrogen hub, though it has expressed a prior interest in nuclear energy.

Keller said he would refocus the port to support small business, calling them the community’s most valuable job generators.

He praised the port’s continuing work to repair railroad tracks that link businesses in north Richland with the main railroads in Kennewick. The railroad, originally built for the Hanford site, provides critical transportation infrastructure but it deteriorated under the management of a now-evicted operator.

Increasing speed and safety is important, he said.

The railroad has long been a priority for Keller as a director and for the current leadership, including Rasmussen. The current managers engaged Columbia Rail to operate the rail and have taken steps to secure funding to improve safety. Trains are currently limited to 5 miles per hour. The goal is about 20.

In July, it announced plans to establish a rail-centered shipping hub by creating an inland port in north Richland. Rasmussen said the inland port is a great example of leveraging the port’s most important asset.

“We have made incredible improvements,” she said.

Keller has called for better use of port-owned properties. He cites the Walter Clore Wine & Culinary Center in Prosser as an example.

The port built the center with about $4 million in state and federal grants to showcase Washington wines about a decade ago.

Unfortunately, the nonprofit that ran the center vacated it during the pandemic. The port subsequently leased it to Washington State University and it is seldom open to the public. That needs to change, he said.

The current leaders have worked to revive Walter Clore. While no announcements have been made, staff said a new partnership is in the works. The 2024 budget notes $50,000 in new revenue without identifying the future partner.

Keller pledged to respect the policy-making role of commissioner if elected. The elected leaders delegate day-to-day management to an executive director, Diahann Howard.

“I will not micromanage,” he said, adding that he supports Howard.

Port budget

The port’s debt is getting some attention in the 2024 election cycle.

Keller has questioned the current debt load.

Public entities typically finance large projects with debt or loans and the Port of Benton is no exception. Its total indebtedness has ranged from about $12 million in 2013 to about $11 million in 2024, according to a debt history included in its 2024 proposed budget.

Its current bond-related debt is $9.3 million. In June 2021, it refinanced about $6 million in older debt and acquired $3.9 million in new debt, taking advantage of low interest rates at the time. The 2.57% interest rate will save it $1.2 million in savings in 2023 dollars, according to the budget report.

Keller said he’s specifically concerned about the port’s ability to finance additional debt. Technically, it can afford an additional $12 million based on its $9.5 billion tax base, which represents the combined assessed value of all property inside port boundaries.

Keller said he found the prospect troubling. However, Rasmussen and the other two current board mates indicated they have no interest in expanding the debt during the recent budget meeting.

Rasmussen notes that the proposed 2024 budget is balanced and said she’s pleased with the work staff have done to implement software that allows it to better track its business

“The port is in a really great position,” she said.

Campaign finance

Rasmussen has raised nearly $10,500 for the race, according to campaign filings with the Public Disclosure Commission.

No data was available for Keller.

Rasmussen and her husband are employed by Energy Northwest and Framatome, respectively.

Keller owns his home in Horn Rapids and has property at the Richland Airport, where he leases land from the port for an airplane hangar.

Port commissioners serve six-year terms and are paid $1,500 a month. They are eligible for health insurance and other port benefits. They may also participate in the Washington Public Employees Retirement System.