Albert Lea Mayor Bob Haukoos revealed Tuesday the city’s plan of acquiring the old Farmland site in exchange for having the corporation’s new plant in a southside industrial park.

Wednesday, September 26, 2001

Albert Lea Mayor Bob Haukoos revealed Tuesday the city’s plan of acquiring the old Farmland site in exchange for having the corporation’s new plant in a southside industrial park.

The city would take over the estimated $5 million clean-up project on the old site abandoned after the July fire. Then the 40-acre premier downtown land would be incorporated into the city’s urban redevelopment scheme, he said.

The plan is another piece of what city officials say is an excellent package designed to keep Farmland in Albert Lea. Farmland’s communications office said George Richter, Pork Division President, confirmed on Tuesday that the company would rule out Carroll, Iowa as a location, narrowing the list of cities still hoping to land a new Farmland plant.

&uot;We have a preference to rebuild in Albert Lea, because we have good relationships there and a good employment base, and have a good history in the community,&uot; said Sherlyn Manson, the company’s communications manager in Kansas City.

Manson did not specify the date of the final decision other than saying it would be in early October.

According to the plan, the city expects to swap the old site with the alternative land in the industrial park. In addition, the city will seek to offer extensive incentive measures to Farmland, possibly including state funding for the new plant construction and tax-increment financing.

By handing over the old site, Farmland would be exempted from costly, time-consuming debris clean-up.

Haukoos pointed out asbestos contained in the debris particularly pushes up the cost.

The city estimates $4.5 million to $5 million for the project, but part of the expense may be subsidized by the state. The administration also forecasts the $2,000 per-load disposal price can be compressed by taking bids. The clean-up will take eight to 10 months to be completed.

Possibly by this time in next year, the 40-acre old site located in the east of downtown will have been converted into virgin soil for the city’s urban designing.

Emphasizing its proximity to the city’s center, Mayor Haukoos considers utilizing the site for business expansion.

The new site in the industrial park offered to Farmland is on the city’s southeast edge near I-35.

The city council approved the additional acquisition of 12.5 acres next to the park at $700,000 on Monday. Combined with the current city property, the new purchase enables Farmland to have a large enough site for its new plant.

Infrastructure such as roads, water, gas and sewage system are ready to run, Mayor Haukoos said, &uot;Farmland can start construction immediately there,&uot; he said.

The city will also apply for $25 million grant from USDA to fund the Farmland’s $88 million plant construction. The new site will be designated as a tax-increment financing (TIF) district if cleared by state legislators, which entitles Farmland to a reduced property-tax rate possibly for 25 year.

&uot;This is a good offer, and I think Albert Lea has a definite advantage,&uot; Haukoos said.

Rep. Dan Dorman, R-Albert Lea, said he plans on helping the city in any way he can as a legislator, including sponsoring a TIF bill and helping find clean-up funding from various state and federal agencies.

&uot;We know there’s money out there. I know the city is interested in finding any assistance they can if they take over the responsibility of cleaning up the old plant,&uot; said Dorman.

Farmland Foods said that it was notified of the city’s offer by mail. Manson said the corporation’s executives will closely review the offer to decide the site location of the new plant.