The Port of Centralia Commission voted unanimously Wednesday to terminate the contract of longtime executive director Kyle Heaton following an executive session.
Heaton had served the port as its executive director since January 2001.
Commissioner Kyle Markstrom proposed the motion and provided a brief statement on the topic.
“The decision to propose terminating the contract with Executive Director Kyle Heaton is not one I bring forward lightly. Heaton has served the Port of Centralia for more than 20 years, and during that time he has been instrumental in driving economic development, attracting employees and expanding our community’s tax base,” Markstrom said. “His leadership has contributed significantly to the port’s growth and success, and he has positioned the port financially to continue providing tremendous economic benefit well into the future. I want to acknowledge and thank him for that service.
“I have had many conversations, conferred extensively with the port’s legal counsel, looked hard at all available options, and carefully weighed the pros and cons of what is best for the port’s future. There is no perfect solution — but I am convinced this is the best step to take now.”
The contract termination comes after the election of new Port of Centralia Commissioner Ally Pickard, who has been a vocal critic of Heaton’s handling of the port. Pickard will replace Julie Shaffley in the District 2 seat once she is sworn in next month to her six-year term.
Markstrom’s statement indicates that the voters’ decision in November played a role in the port’s decision to terminate Heaton’s contract.
“The voters of Centralia have spoken, and the port is entering a new chapter. I do not see the port being able to stay focused on our core mission — job creation and business development — as a hopefully unified team without distraction, given the new commission taking office on Jan. 1 and the current executive director remaining in place,” Markstrom said. “Taking this step now provides clarity, stability and a clean slate for the incoming commission to choose an executive director whose approach aligns with their vision. My intent in bringing this motion is to support a collaborative and constructive path forward during the transition and to ensure the port is positioned for continued success.”
Port commissioners and Pickard exchanged jabs during The Chronicle’s local election debate at Centralia College’s TransAlta Commons on Oct. 8 regarding Pickard’s political cartoons of Lewis County elected officials and citizens on a Facebook page that is now deleted.
Markstrom asked Pickard during the debate how she would work in collaboration with elected officials and staff members that she “ridiculed,” while Shaffley called Pickard’s depictions of port staff “very insulting and hurtful.”
Pickard said she welcomed conversations about concerns stemming from her political cartoons, adding that such artwork has been “a part of our founding as a country” and that her intent was to bring awareness to local issues. Her comics included depictions of Heaton and Markstrom as skunks. Pickard said she chose a skunk for Heaton because “I needed a character that was recognizable from behind because he sits with his back to the community.”
Markstrom’s motion at the end of Wednesday’s meeting moved to terminate Heaton’s contract and to authorize the president of the commission, which is Markstrom, “to negotiate and execute a separation agreement on behalf of the port with the port’s executive director, modifying Terms of Termination by Port Commission under Section 7(a) of the employment agreement with severance not to exceed amounts provided for in Section 7(a) to take effect Dec. 31, 2025.”
Heaton’s contract reportedly included an annual salary of $250,000 and a lump sum severance payment in an amount equal to 24 months of his current base salary, plus all accrued but unused vacation and less applicable withholdings.
Shaffley, who worked alongside Heaton for 10 of his 24 years with the port, defended the executive director during The Chronicle’s election debate.
“He’s not in the top 10 highest paid executive directors, but he’s certainly the top performer,” Shaffley said of Heaton on Oct. 8. “When he was hired in 2001, [there was] $8.5 million in assets and $7.5 million in debt. Today, $42 million in assets, less than $1 million in debt. The report card speaks for itself.”
Heaton collected criticism from citizens this year after he made the statement “Maybe I’m just attracting idiots” following a public comment criticizing him and the port during the June 18 meeting.
