The Port of Coupeville held a special meeting Friday after learning previous action taken in regard to tenant leases at Greenbank Farm was not legal.

During an Sept. 21 special meeting, the board of commissioners agreed to keep tenant lease rates the same and cover the $13,000 in leasehold taxes just for 2016. Leases would be renegotiated for 2017 and beyond. Each tenant at Greenbank Farm is required to pay a 12.84 percent leasehold tax.

That action was not legal, according to port staff.

“Department of Revenue says the leasee has to show they paid the tax,” said David Day, executive director for the port. “The passing and wording of that motion is just not feasible.”

After learning of the issue and doing some further research, board chair Marshall Bronson called for a special meeting 10 a.m. Friday at the Coupeville Masonic Lodge.

“I didn’t do the right thing,” Bronson said. “It is illegal for us to pay the leasehold tax.”

Under current lease agreements, the Greenbank Farm Management Group is covering the cost of the leasehold tax out of funds generated at the farm. This fits within the parameters of the law, Day said, because the management group is the leasee at the farm and all the tenants hold subleases.

During the special meeting Friday the board moved to keep tenant lease rates the same for 2016, but that the tenants would be required to pay the 12.84 percent leasehold tax.

The board also took action to extend its budget process since staff does not have financial estimates because of the delay in lease negotiations.