EDC seeks highest and best use of CAAP land (complete article from source)
Source: The Grand Island Independent, by Tracy Overstreet
January 17, 2008
The Grand Island Area Economic Development Corp. wants the chance to buy the remaining 1,750 acres at the former Cornhusker Army Ammunition Plant.
"We believe the highest and best use for this property is economic and industrial development," EDC President Marlan Ferguson stated in a 15-page proposal he presented to Hall County and its Reuse Committee.
Ferguson said he has given up his right to vote on the future of the land (Ferguson is one member of the Reuse Committee that meets Monday to discuss the land's future.) in an attempt for the EDC to become owner of the land.
"It's absolutely worth the effort to go after it," Ferguson said.
The 1,750 acres that comprise the plant's former Load Lines are perfect for new industry growth there, for existing industry growth there and for growing industry in other locations in Grand Island by creating a foreign-trade zone, he said.
"The foreign-trade zone program is a distinct government incentive," Ferguson said. "The program defers, reduces or eliminates U.S. Custom duties on products that are admitted to the trade zone."
Ferguson said having that zone could become a competitive advantage for existing Grand Island companies that use or produce foreign parts such as Case IH, Global Industries, MFS YorkStormor, Chief and Chief Automotive.
The land, with its close proximity to the interstate and other highways, plus its dual-rail access, is perfect for the warehousing and distribution business, he said.
Transport via unit trains is also gaining popularity and the CAAP site is uniquely situated to accommodate a unit train if the rail lines there are upgraded.
Ferguson said DTE Rail Services owns the rail lines at the plant but not the land underneath. DTE officials have stated a desire to upgrade the rail, but only if they can acquire additional land to expand their business.
Ferguson wants to accommodate that request and also an expansion proposal by Heritage Disposal and Storage, which recycles and stores ammunition.
DTE and Heritage Disposal have both submitted their own purchase proposals, but both list a desire to work with the EDC on developing the land.
Ferguson said the EDC has recently sold other land holdings in its existing Platte Valley Industrial Park along Highway 281. It has also finished payments on other projects and is in a better financial situation now than just six months ago, he said.
The EDC plans to use its cash-on-hand, loans from banks, money from leasing the land and its other assets as leverage to buy the acreage at the required "fair market value" if the EDC were designated as a buyer.
The land needs other infrastructure upgrades on roads, water and sewer, Ferguson said. He has detailed six available grant programs and financing mechanisms in his proposal on how the infrastructure could be improved over time.
"Our mission is to create jobs and increase tax base," Ferguson said. "We felt we could do that and we needed to at least be a player for that long-term development."
The Reuse Committee meets at 1 p.m. Monday at the Hall County Administration Building to review the plans. The committee's recommendation will be forwarded to the full Hall County board for final approval.
The Army Corps of Engineers wants to sell the remaining 1,750 acres at the plant by Sept. 30.
The other proposals are:
Woitaszewski Brothers, Wood River. They want to buy all 1,750 acres for land restoration, development and production agriculture. They currently have 10 full -time employees. They would like to expand their operations to include an ag campus for research and development; large economic development such as a multi-county recycling plant, ethanol terminal, composting operation, storage depots and recreational facilities such as a dog park, motocross park and snowmobiling area. Future development could include a regional airport, manufacturing, housing and wind power.
DTE Energy Rail Services, Grand Island. DTE wants to secure a permanent easement to the entire existing rail corridor, which involves about 60 acres. DTE envisions growth on the site and also indicates a desire to work with other current tenants of the buildings on the parcel affected by the easement.
"This access is a necessary component of our future success in sustaining our current market growth and future market growth as we look to expand our services to our customer base," said DTE Director Robert Marshall. "The rail layout on this piece of property would support future business but would need some major capital improvement to support loaded rail car activity. Pending the outcome of this designation, DTE Rail Services has found it necessary to postpone planned rail upgrades until this designation is resolved."
Heritage Disposal and Storage, Alda. Heritage wants to buy about 580 acres to expand its ammunition recycling and storage business. Heritage has already administered more than $6 million of completed work and has another $13.8 million in contract work over the next five years. Heritage would like additional land to accommodate setbacks and to grow along with new Homeland Security programs. It has proposed an area for law enforcement training.
Big B Inc., Grand Island. It wants to buy all 1,750 acres for agricultural-related use, including irrigated farm crops and cattle grazing. It is open to commercial and industrial development in the future.
"Even though I truly believe there are development possibilities in the CAAP properties, they are very limited at this time or anytime in the near future until sewer and water are available," said Big B owner Tom Baxter.
Baxter bought portions of CAAP land for sale at private auction in the past and said he has used that ground to replace dirt in his T and E cattle feeding operation. Some of that land was also resold to become Heritage Disposal and Storage. Baxter said the 1,170 acres of CAAP land currently owned by Southern Public Power District for an industrial park will be sufficient for 99 percent of any new industry needs.
Panowicz Farms, Cairo. It wants to buy all or part of the 1,750 acres, of which it currently rents a portion for ag uses. The future use would be agricultural and other long-term development, including working with current tenants in meeting those land needs. Owner Mike Panowicz listed a desire to work with the EDC, Heritage, DTE and Leon Plastics, which has an existing business at the plant.
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