Taxpayers need not worry: The city’s proposal to Farmland is neither exorbitant nor too expensive to the city, said City Manager Paul Sparks.

Friday, October 05, 2001

Taxpayers need not worry: The city’s proposal to Farmland is neither exorbitant nor too expensive to the city, said City Manager Paul Sparks.

The economic development package before the city council does not commit extensive local tax money to subsidize or finance a new Farmland pork processing plant, Sparks said.

Instead, the package aims at securing a new plant while expediting the removal and cleanup of the old plant, he said.

&uot;Beyond the money involved in the 10-year tax increment financing and a small matching grant for clean up, we’re not offering taxpayer money in this proposal,&uot; Sparks said. &uot;We’re not going to jeopardize the financial health of the city.&uot;

Sparks said the proposal to Farmland is the best the company can expect to receive.

&uot;This is a fair offer for both sides,&uot; he said. &uot;We’re not getting into some kind of bidding war. Our first shot at attracting a new plant is our best shot.&uot;

The city actually stands to profit from the proposal in the long term, particularly when the existing plant site is rehabilitated. Sparks said the 40-acre site will make an excellent business park, well served by utilities and city streets.

Though cleaning up the site will cost roughly $5 million, a combination of tax increment proceeds, federal and state grant money and insurance claims will cover the bill, he said. The plant itself contains considerable asbestos, and the property may have cutting oil contamination, Sparks said. In addition, an ash landfill on the southwest corner of the property may require an additional layer of clay to cap it from the environment.

&uot;We’re studying the environmental issues of the site, and they’re not that significant,&uot; Sparks said.

The sources of grant money are plentiful, said Sparks. Brownfield grants from the state, Superfund money from the federal government and economic development assistance are available for municipalities facing environmental challenges, he said.

&uot;Our ability to find grant money for the demolition and clean-up is the key component,&uot; Sparks said.

While the city is handling the old site, Farmland can proceed with its new plant, estimated to be about 250,000 square-feet in size. Using panelized construction, the plant could be built in one year. &uot;It’ll be new, modern, extremely efficient and much more attractive than the old plant,&uot; Spark said.