Development Authority Collects $1M for Tenant's Illegal Improvements

ELMA, WA-According to the Grays Harbor Public Development Authority, SafeHarbor Technology has made a $1 million payment to cover tenant improvement that were made two years ago by the authority to SafeHarbor’s headquarters.

SafeHarbor Technology, which is based in the authority’s Satsop Development Park, currently occupies a 48,000-square-foot headquarters building. The authority paid for tenant improvements on the property two years ago. The tenant improvements, however, were seen as an illegal loan by the Washington state auditor’s office.

SafeHarbor’s tenant improvements on the first building totaled $3 million, which was supposed to be repaid over 20 years, but the lease allows the PDA to collect a $1 million payment on the lease’s second anniversary.Satsop Development Park is located on a site where two nuclear reactors were planned by WPPSS before the project was abandoned in 1983.

According to the PDA, European technology company QuinetiQ-TIM, will lease 43,000-sf of space at a building that was built for SafeHarbor. Due to the dot-com bust, SafeHarbor will not use the space.