The Fort Worden Public Development Authority is facing more than $120,000 in bills that are more than 90 days past due.

Six of the eight delinquent accounts have debts that run into the thousands of dollars, according to records released last week by the agency.

The PDA has total debt of $125,752 that is characterized by the agency as 90 days past due.

The amount of debt past due — bills more than
30 days old — totaled $352,231 through Dec. 23.

The Fort Worden Public Development Authority is struggling to control a financial crisis that is threatening to leave the agency broke by the end of the year.

At the PDA board’s most recent meetings, board members approved restructuring the agency in the hopes that a new business model will help attract investors who can keep the public entity afloat.

PDA officials have acknowledged the shaky financial foundation of the organization and its debt issues, which Interim Executive Director David Timmons characterized as “a house of cards” during an earlier board meeting.

Timmons has told the board that the agency is expected to run out of cash by the end of the year. Lines of credit with Kitsap Bank that totaled $2 million have been deferred, however, reducing the amount of funding needed for the Makers Square project and “glamping” camping development to less than $900,000.

At the board’s meeting Dec. 16, the board signed off on the terms of a grant anticipation note from Kitsap Bank that would provide $214,000 that would be used to pay construction costs for Makers Square.

Much of the PDA’s financial woes stem from the diversion of loan proceeds that were meant to be spent on Makers Square and the glamping project to the day-to-day costs of running the PDA.

The agency’s spending practices are currently the subject of an accountability audit by the Washington State Auditor’s Office.

The comprehensive look at the organization’s books will cover the time span of 2015 through 2019.

In addition to the two outstanding lines of credit — $1.5 million for the Makers Square project originally due December, and $2 million for Fort Worden’s “glamping” project that was due during the first quarter of 2021 — Timmons previously told the PDA board that substantial debt had been amassed on
19 credit cards under the agency’s name.

Timmons closed 15 of 18 credit card accounts with Bank of America, as well as an American Express credit card that had a balance of $60,000.

The credit cards had been used to pay utilities, vendors, and other costs.

Public records released by the PDA to The Leader last week show $58,283 as 90 days past due to American Express, as of Dec. 23.

Other debt that is past 90 days is $17,696 owed to the city of Port Townsend; approximately $17,390 to Jefferson County PUD No. 1; $16,150 owed to Johnson Fire Controls Protection; and $14,399 owed to East Jefferson Fire Rescue.