Fort Worden
Background: the Fort Worden Lifelong Learning Public Development Authority (PDA)
Fort Worden is well-loved by residents and visitors alike with its stunning natural surroundings, unique history and historic buildings and structures, vibrant events and programming and quality accommodation. Fort Worden is a national historic landmark encompassing 434 acres with more than one hundred historic structures, including the coastal defense batteries and the Point Wilson Lighthouse. Additionally, the Fort has over 11 miles of hiking and biking trails, 120 feet of dock space, tennis courts, campgrounds, and two miles of salt water shoreline.
The City originally chartered the Port Townsend Public Development Authority in 2009 and reorganized it as the Fort Worden Lifelong Learning Public Development Authority in 2011. The PDA’s mission is to manage, promote, develop, secure funding, and enhance the Fort Worden State Park, including facilitating the implementation of a Lifelong Learning Center at the Park as envisioned by the 2008 Long-Range Plan. The PDA and Washington State Parks entered into a co-management agreement to carry out the lifelong learning mission.
A number of partner organizations add to the lifelong learning center mission. These partners contribute art, music, poetry, fitness, wellness, history, science, and other programs and activities that make the lifelong learning center possible.
Issue in Brief
During 2020, COVID-19 caused a sudden and significant decline in the PDA’s hospitality revenue creating a financial crisis. This crisis, in turn, brought to light a history of possible mismanagement and malfeasance in the PDA. Currently, the PDA leadership is working with state and local authorities to fully understand what happened and why. Simultaneously, the PDA is looking to ensure the future of the Fort by closing out the Maker’s Square project (renovation of building #305 into a new artistic hub) and restructuring itself to become more viable. The restructure is currently allowed within the current charter and does not require any City Council approval or decision-making. It may, however, require amendments to the PDA’s lease with State Parks. The future of the PDA does not have direct bearing on any possible closure of the Fort Worden State Park and its trail system and grounds.
Path Forward
The PDA expects the Washington State Auditors’ Office to complete the PDA accountability and financial audits in spring 2021. This should clarify the status of the alleged malfeasance and mismanagement. Meanwhile, the PDA continues to work towards restructuring as well as planning for a busy hospitality season in the second half of 2021.
The City oversees but does not control the PDA. Should the City assume operational control of the PDA, the City would also assume significant financial and legal risk and inappropriately undercut the PDA organization’s role, the municipal code, and the PDA charter. Given the recent situation and State Auditors’ Office suggestions, however, the City is pursuing municipal code changes that will enhance the City’s oversight the PDA and clarify the City’s relationship with the PDA. A City Council decision on the code changes is expected by mid-April followed by a nomination process for new PDA board members and the current PDA’s board planned transition.
In March, the City hosted a joint meeting with the PDA Board that gave the Board an opportunity to comment on and discuss the proposed municipal code changes. It also gave the City a chance to learn more about the PDA board’s evolving restructure, which includes a diminished-scale administrative PDA, an associated hospitality nonprofit and, eventually, a second nonprofit focused on managing and renewing the Fort’s capital assets.
