BOARDMAN – What Potlatch Corp. decided a year ago to abandon, the new owner of its poplar farm plans to embrace.

GreenWood Tree Farm Fund of Portland Tuesday completed its acquisition of Potlatch’s 17,000-acre hybrid poplar tree farm near Boardman. Potlatch earlier announced it sold the property for $65 million.

Meanwhile, the Collins Companies, also of Portland, plan to build a $35 million sawmill on the site to process lumber from the tree farm.

“This acquisition is the beginning of a new venture to capitalize on a unique combination of leading-edge sustainable tree farm technologies, advanced manufacturing techniques and world-class environmental certification here in Oregon” said Jeff Nuss, president, chief executive officer and founder of GreenWood Resources.

GreenWood Tree Farm Fund is a private equity fund organized to acquire, develop and manage fast-growing tree farms and to manufacture and market Forest Stewardship Council certified products. GreenWood Resources and two other companies manage the fund.

Hunter Brown, chief operating officer of GreenWood Resources, said Collins plans to build on the same 40-acre site Potlatch earlier designated for an $8.1 million lumber mill. Potlatch abandoned that project in the spring of 2006.

At the time, Mike Covey, Potlatch’s CEO said, “The construction of a new sawmill over the next three years … is best suited for a company with deeper hardwood manufacturing and marketing experience.”

Collins has been in the lumber industry since the 1850s.

Mill construction is expected to begin this summer and operations are expected to begin in the spring of 2008.

Once fully operating, the tree farm, harvesting, and mill operations are expected to employ more than 150 people.

At last count, Potlatch had 14 employees in Morrow County.

Collins plans to market a line of fast-growing tree farm products under the trademark “Pacific Albus.”

The Governor’s Office, the Oregon Economic & Community Development Department and Morrow County worked together to develop the project.

“This new facility is another example of how investing in sustainable and innovative tree farming practices can deliver benefits for the environment and the economies of rural Oregon,” said Gov. Ted Kulongoski. “By combining our values as Oregonians with our commitment to creating family wage jobs, we can compete globally in emerging industries such as high-yield, fast-growing sustainable tree farming and renewable energy.”