Supreme Court Ruling to Impact Real Estate Talks at Port of Chehalis

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A state Supreme Court ruling has clarified what public governing agencies can discuss in executive session, limiting the talks that can take place behind closed doors when considering the minimum price real estate can be sold or leased.

The unanimous decision is “the biggest change we’ve ever had to the way we do business in our industry,” Randy Mueller, chief executive officer of the Port of Chehalis, said. 

In Columbia Riverkeeper v. Port of Vancouver, the nonprofit environmental group argued the port had kept them out of meetings that discussed more than just the dollar amount of a proposed oil terminal.

The state Supreme Court reversed the trial court’s partial summary judgment in favor of the port, and stated that the statute in the Open Public Meeting Act’s minimum price exception “does not permit a general discussion of the contextual factors themselves,” which need to be discussed at an open public meeting.

Mueller said the Vancouver Port Commission was doing what is standard practice in the port industry. 

“Ports have operated under the methodology where we discuss the sales or lease price and applicable terms of a transaction,” he said, adding that other factors such as the pros and cons and various terms of a deal could influence the final price and therefore are discussed in executive session. 

“The Supreme Court decision was strongly worded and unanimous, and is essentially a ‘smackdown’ of current industry practices,” Mueller said in an email.

Mueller told port commissioners on Thursday the most notable impact will be an increase of open discussions of the port’s projects during meetings. He also said it will be a balancing act to have those talks in a meeting, while protecting the confidentially of companies that do not want to disclose identities. 



“As we move forward it will be awkward and uncomfortable like learning to dance, but we will do it,” Mueller said. “We will comply with the law and the spirit of the law.” 

Commissioner Mark Giffey said the port already discusses many of the items in open sessions, and stressed his biggest concern is confidentiality.

The Supreme Court took into account the plain language of the statute as well as the legislative intent. 

The Open Public Meetings Act states public commissions, boards and councils have to conduct their actions and deliberations openly.

“The people of this state do not yield their sovereignty to the agencies which serve them. The people, in delegating authority, do not give their public servants the right to decide what is good for the people to know and what is not good for them to know,” the act states. “The people insist on remaining informed so that they may retain control over the instruments they have created.” 

Mueller said the port has always erred on the side of transparency. The ruling will now throw “open the doors even wider,” he said.

Kyle Heaton, executive director of the Port of Centralia, said the port does not expect to see major changes to the way it runs its meetings since commissioners there are not directly negotiating the deals.