NEWPORT — The Port of Newport will embark on a new plan for the International Terminal following the collapse of a major business deal and the rejection of a $2 million federal grant one year ago.

Under pressure from state officials to spell out the future of the $15 million terminal and greater port in the wake of those developments, port commissioners are slated to hire a consultant next week and launch a series of public meetings to update a tardy strategic business plan required by state law.

Interim Port Director Teri Dresler this week said the five-year plan is the port’s highest priority. Major elements of the blueprint will likely include a strategy to stay solvent amid $40 million in outstanding debt to satisfy overseers at the Oregon Business Development Commission.

“They wanted it yesterday,” remarked Dresler , an experienced executive hired two months ago after several forced departures in the head office. “We’re still out of favor because we’re behind the eight-ball on this.”

According to port documents, the agency will spend about $3.8 million in debt service this year, including more than $1 million in interest on bonds, a State of Oregon loan and other obligations incurred to build the International Terminal and NOAA Marine Operations Center.

Dresler said public meetings to bring rival interests together in order to navigate the port’s future could begin in late October or early November. The process should take about four or five months.

A contentious issue will be the future of the newly-constructed International Terminal at McLean Point. Aspirations to reinvigorate Newport as a major shipping facility were checked in 2017 after the cargo-centric composition of the board of directors shifted to commercial fishing interests.

Citing “unacceptable financial terms,” the board halted negotiations with Teevin Brothers Land and Logging Co. and Sylvan Forest Products, LLC. In rejecting the proposal, the port forfeited partial financing for terminal projects as well as the TIGAR grant, which could have wiped out port cash with its matching requirement.

Without a lucrative cargo business, the terminal is now used mainly as gear storage for midwater trawlers and as a stop for ships to fuel or offload weight on their journey to the shipyard in Toledo. Fishermen say cargo operations would prevent them from using the facility to switch gear between seasons.

Timber and woodlot owners on Oregon’s central coast currently export logs through facilities on the Columbia River at Portland or at Coos Bay. Shipping from Newport would provide significant savings in transportation costs.

“The conversation needs to be restarted about what kind of shipping is going to work for both the shipping companies and the commercial fishery that use that terminal,” Dresler stated.

Aaron Bretz, port operations manager, confirmed that no cargo operations are currently underway at the terminal, though it is ready for maritime shipping and receiving.

“What it can and should be is the purpose of this visioning process,” said Bretz. “Our job as a port is to facilitate the flow of revenue into this region, and in doing so we have to reach out to the community and get their perspective on the best use of this facility.”

Dresler said after reviewing port finances that the agency is on stable financial ground and will meet its debt obligations and operating expenses this year.

The port has more than $80 million in assets, including land, buildings and equipment. However, the port posted a $1 million loss on revenues of $7.2 million and expenses of $8.2 million in 2017, according to an auditor’s statement.

Commissioners will meet Monday, Oct. 15, to deliberate on the contract with consultants Berger ABAM to begin an updated five-year plan. The meeting will take place at noon at the South Beach Activities Room at 2120 SE Marine Drive, Newport.