PORT TOWNSEND — State Parks has resumed management of the 90-acre Fort Worden upper campus, which had been managed by the Fort Worden Public Development Authority since 2013.

“We delivered a letter to both the FWPDA (Fort Worden Public Development Authority) and their court-appointed receiver that effectively terminated the master lease between Parks and the FWPDA,” State Parks Communications Manager Sarah Fronk said. “We have assumed operational management and support for our campus tenants, including administration, maintenance and security.”

Notably for visitors, the upper campus of the fort will require a Discover Pass for day-use parking starting March 1, according to a press release.

“This requirement was waived for the 90-acre upper campus when it was under the management of the Fort Worden Public Development Authority,” the press release stated.

Discover passes cost $10 for a day pass and $30 for an annual pass. Information on how to purchase a Discover Pass can be found at https://tinyurl.com/yw6nb2vf.

The termination letter, sent on Feb. 14 by Heather Saunders, the director of parks development, legally grounds the termination by pointing to breaches in the master lease agreement.

Elliot Bay Asset Solutions, the receiver, was seen as rejecting the master lease by Jefferson County Superior Court on Dec. 20, when Judge Brandon Mack vacated a previously granted extension.

The vacated extension had given Elliot Bay Asset Solutions an additional 90 days on top of the 60 days given by state law for the receiver to assume or reject the lease. Since it did not assume the lease within 60 days, it was automatically rejected.

David Neu, a lawyer for Elliot Bay Asset Solutions, said the receiver never intended to assume the lease as previously structured.

“I think we can all agree that the PDA was mismanaged and is hopelessly insolvent,” Neu said in the Dec. 20 hearing.

While the lease was rejected in late December, it still needed to be terminated by state parks. That happened Feb. 14.

“The termination of the PDA Master Lease effectively means the termination of the tenant leases as well,” Centrum CEO Robert Birman said. “In that regard, Parks is working on short-term, month-to-month leases to keep the business in place for now as they work through the long-term implication of the changes at the Fort. Centrum supports this decision as well.”

Fronk said short-term leases are being drafted for all property tenants.

“We have also begun work on drafting short-term leases with all tenants while we explore longer-term agreements,” Fronk said.

Longer-term plans for the park have yet to be settled, Fronk said.

“We are still in a period of transition,” Fronk said. “We do intend to conduct a planning process to help determine and guide the future of the Upper Campus at Fort Worden, including an exploration of bringing hospitality services back to the park, in the future.”

While state parks has terminated the master lease, the PDA still exists as an entity, pending dissolution from the Port Townsend City Council, former PDA interim Executive Director Celeste Tell said. The receivership was reckless and cost state parks momentum and budget availability, Tell said.

“Over the last 4 1/2 months, the receivership has racked up roughly half a million dollars in legal fees and operational expenses not paid, with no clear benefit to Kitsap Bank, Fort Worden or to the community as a whole,” Tell said. “The receiver has paid no bills and done no property management tasks.”

Tell said the receiver’s refusal to negotiate concession and lease terms is to blame for the closure of Fort Worden Hospitality, causing the loss of 47 jobs and many visitors to lose their deposits.

“We came perilously close to losing Centrum as a Fort Worden tenant and seeing Centrum programming leave Port Townsend after 50-plus years here,” Tell said.

Centrum was founded by the Parks Commision in 1973 when it created the park, Birman said.

“We’ve enjoyed a 52-year relationship with them,” he added.

Birman said Centrum leaders are happy to return to working with the park, given the circumstances.

“Centrum supports the decision by State Parks to terminate the PDA Master Lease,” Birman said. “It has been inevitable since the receiver rejected its terms last year.”

Centrum is moving forward with a full season of programs this year and standing up a temporary hospitality team, Birman previously said. After the closure of Fort Worden Hospitality in January, there was genuine consideration given to the idea of moving operations from Port Townsend, he added.

“The Parks Commission has graciously granted us limited access to housing this summer to allow Centrum to remain in Port Townsend this year,” Birman said.

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Reporter Elijah Sussman can be reached by email at elijah.sussman@sequimgazette.com.