PORT ANGELES — Port of Port Angeles commissioners have approved a 12-year lease with Masco Maritime PA LLC for management of the Port Angeles Boat Haven marina and boat yard.

The area formerly operated by Port Angeles Marine has been under Masco’s management since Feb. 29, after Masco assumed the last 10 months of a 10-year agent agreement between the port and Port Angeles Marine, according to John Nutter, director of finance and administration.

The commissioners decided in a meeting last week that Masco should continue to manage the marina and boat yard and that staff should finish negotiating with the company.

In that meeting, commissioners chose between three proposals, with commissioners all agreeing that while the Masco proposal had the highest out-of-pocket costs, it would be a greater benefit to the community.

Masco’s proposal had higher management fees for managing the marina on a monthly basis, and negotiations included financial incentives for Masco if it is able to grow the business.

Masco will pay $1,810 monthly plus 5 percent of gross retail marine supplies and accessories sales income, according to the port.

“I think we’ve got a good agreement and in the long term this will really benefit our community,” Commissioner Steve Burke said of the agreement approved Monday.

Masco has agreed to install underground fuel tanks at its expense and agreed to give the port the option to purchase the tanks over 50 years at lease renewal periods.

The new lease term would start Jan. 1 and is renewable for up to 50 years.

The three commissioners each said that having Masco manage the marina and boat yard would not only benefit the port but also the community.

The port had already negotiated with Masco for several months before commissioners agreed on the lease.

Commissioners said previously they wanted to move quickly to choose a proposal before a Jan. 1 deadline to remove aging underground fuel storage tanks at the Boat Haven, something that Port Angeles Marine or Masco is contractually obligated to do.

Removal must be done by Masco or Port Angeles Marine because the latter’s insurance policy “covers the fact that if — and we have no reason to believe there is — if there was any soil contamination, if there was any leakage from those tanks, his insurance company will cover that,” Nutter said previously.

The five steel, single-walled underground storage tanks feed the adjacent fuel dock float, which provides gasoline, diesel and motor oil products to boats.

The fuel dock float and associated fuel storage tanks are located on the west end of the breakwater directly adjacent to the harbormaster office. Both were installed in 1973.

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Reporter Jesse Major can be reached at 360-452-2345, ext. 56250, or at jmajor@peninsula dailynews.com.