Humboldt County Supervisors Challenge PL Reorganization Plan

PACIFIC LUMBER FILES FOR BANKRUPTCY
Maxxam/PL Files Bankruptcy Reorganization Plan
PL has filed their plan of reorganization, seeking to sell the Marbled Murrelet Conservation Areas for the inflated price of $400 million, convert 21,800 acres for low-density development, sell the town of Scotia, and hold on to the remaining 181,000 acres. PL's plan tremendously overvalues these lands, sometimes by as much as 10 times the assumed value. PL had claimed that Maxxam would make a 'significant contribution' to the reorganization, but all that Maxxam offers is to forgive $40 million inter-company indebtedness (a claim by Maxxam against PL!) and to offer the company's real estate expertise, as well as shouldering some tax burden from future development. For more information on the Reorganization Plan click here.
Humboldt County Supervisors Challenge PL Reorganization Plan; Come Support them this Tuesday, Oct. 9th, 9 am
The Humboldt County Board of Supervisors has responded to Maxxam’s plan to convert 21,800 acres of prime timberland into 160-acre “kingdoms” (Maxxam’s term) by taking a very brave and powerful stand. Referencing California Government Code Section 65858, Supervisors Bonnie Neely and Jill Geist have brought forward an “urgency ordinance” which would place a temporary moratorium on any residential dwelling units on lands zoned TPZ. This moratorium would give the Supervisors 45 days in which to hold a noticed hearing on the issue, with the ability to extend the moratorium for up to 22 months, 15 days.
This issue will be heard by the Board of Supervisors this Tuesday morning, October 9th, some time after 9:00 a.m. This is the most courageous stand the Supervisors can take; they will need broad public support to go forward.
To declare this “urgency,” the Supervisor’s will need a 4/5 vote. We need to make sure that all of the Supervisors understand exactly how urgent this situation is. This is the single most critical land use decision that has ever faced Humboldt County: If Maxxam gets their way, it would convert an area larger than all of Eureka, Arcata, and Fortuna combined, from timber into unaffordable estates; and would dramatically and permanently alter the very nature of Humboldt County’s character and economy.
At its core, this is simply a question of whether the people of Humboldt County, through their elected officials, should have a voice in deciding such a pivotal issue, or whether it should simply be left up to Maxxam to do whatever they wish with this land, public interest be damned. Lacking public intervention, Maxxam’s reorganization plan could be approved by the bankruptcy court far in advance of the General Plan’s approval. Once such a plan is approved, then the ability for PL to emerge from Chapter 11 would depend upon their ability to carry out this planned conversion, subdivision, and development. If the County’s zoning were to not allow what the Court has approved, PL would likely be plunged back into Chapter 11 for a second time (or “Chapter 22.”)
The best path for PL to emerge from bankruptcy is to ensure that the company’s reorganization is based on a rational, realistic, and feasible plan. Maxxam’s proposal is not such a plan. The County can play a truly critical role in sending a strong message to PL, Maxxam, the company’s Noteholders, and the bankruptcy judge: this proposed plan is simply not in the interest of the community, and will not be tolerated.
The County has perhaps one card to play in this entire process, and this is it. We need to build the strongest possible base of support for the Supervisors for their meeting this Tuesday morning. Please distribute this message far and wide, and urge as many people as possible to be there.
Click here to see background documents:
Board of Supervisor's Staff Report
Board of Supervisor's Proposed Ordinance
Link to the Humboldt County Supervisor's Agenda
(Thanks to Mark Lovelace for this information.)