_{Thumbnail: Harbor Commissioners last week decided against terminating hoist and building leases with Pacific Seafood despite the company’s decision in October to cease operating the ice plant. | Photo by Paul Critz}

Though they terminated one buyer’s lease due to delinquent rent, Crescent City Harbor commissioners decided against doing the same for Pacific Seafood despite their harbormaster’s concerns with the way they’ve conducted business lately.

In his staff report, Harbormaster Mike Rademaker had recommended terminating the processor’s building and hoist leases due to delinquent rent. At a Harbor District meeting last week, he said Pacific Seafood submitted a $43,000 check, thereby “curing the default,” but he still had concerns.

For one thing, the harbormaster said, the processor isn’t using one of the three hoists it leases. There’s a stipulation in their hoist lease with the Harbor District that 14-days of non-use could be viewed as breaching their contract. Rademaker also brought up Pacific Seafood’s decision in October to cease operating the ice plant at the end of Citizens Dock. The processor pulled their equipment out of the building in November.

“I don’t think that reflects very well on the company and how they’ve conducted themselves,” Rademaker said. “The rent itself has been paid. Now it’s a broader discussion of the other issues and if we want to have a business relationship with them.”

The harbormaster also introduced commissioners to representatives with Fathom Seafood and Ocean Gold Seafoods.

“We have two interested companies that will be able to step in if we decide to sever our ties with Pacific Seafood,” he said. “That was part of the reason I invited these companies to make a presentation to demonstrate their capability and interest and perhaps even to provide an enhanced level of service, possibly processing our other ancillary species.”

Though they echoed some of Rademaker’s concerns, namely the company’s failure to use one of the hoists it leases, commissioners said they didn’t want to terminate their relationship with Pacific Seafood.

Commissioner Dan Schmidt, an attorney, warned his colleagues that terminating the lease, though its rent has been paid, could be seen as the Harbor District breaching its contract with Pacific Seafood.

His colleague, long-time commercial fisherman Rick Shepherd, said Pacific Seafood is often slow in paying its rent. But, he said, it’s also the largest purchaser of crab in Crescent City.

“I think we need them here,” he said. “I hope we can work with them and get them to hoist some shrimp here in the summertime, which is one of the things they buy.”

Despite his reluctance to sever ties with Pacific Seafood, Shepherd said he hoped Fathom Seafood and Ocean Gold Seafoods could take over hoists operated by Global Quality Foods — the other buyer whose lease had been delinquent.

According to Rademaker’s staff report, Global Quality Foods had a lease agreement with the Harbor District to operate two hoists on Citizens Dock and freezer space since January 2023. That agreement expired on Dec. 31, 2024. The company’s lease included a 150 percent rent increase for any holdover tenancy starting Jan. 1, 2025 and “required continued productive use of the premises,” according to the staff report.

Though Global Quality Foods’ monthly rent had increased to $2,250 as of the start of this year, the company has continued to pay the 2024 rent of $1,500 per month, according to the staff report. As a result, Global Quality Foods owes the Harbor District $750 for January 2025.

Global Quality Foods also hasn’t used its hoists for more than 90 consecutive days, according to Rademaker. He said there’s a clause in the company’s least that states if they fail to operate their hoists for more than 60 days in a row, the landlord could consider the property abandoned.

“We’ve received some third party reports that the company has gone defunct and has experienced some financial difficulties,” Rademaker told commissioners, adding that he and his staff haven’t been able to reach a company representative.

Rademaker said the company’s partial rent payment looked like it was an automated payment from Quickbooks. He said he wasn’t sure if anyone in the company reviewed the payment before it was made.

“The biggest impact to us financially is not moving the product across the dock, it’s the poundage fees that really sustain the harbor,” he said. “The lease payment is helpful of course, but that’s sort of the baseline.”

With Pacific Seafood, Dave Negus, the Harbor District’s chief of operations, said he expects another roughly $13,000 shortly. He said CCHD had sent the company two separate invoices.

Rademaker said he’d remind them that CCHD is “paying attention” and will encourage them to make productive use of the hoist.

Shepherd, however, estimated that about half of the Harbor District’s hoist don’t get used most of the year, because “the fishing isn’t here.”
“This buyer here brings a lot to the table,” he said of Pacific Seafood, “and we definitely need to keep an open discussion [with them]. Keeping them here is extremely important.”