Press Release
The City of Norfolk agreed Monday morning to provide infrastructure improvements to attract a proposed soybean processing plant.
Following an executive session, city council members unanimously approved a memorandum of understanding with the developer—Specialty Protein Producers—to finance the sewer, water and street work and a railroad spur through $2.77 million in tax-increment financing (TIF).
For a 15-year period, property taxes on the land located southwest of Victory Road and Eisenhower Avenue will be used to pay off the city’s bonds for the site improvements, which are planned in two phases.
The city also is applying for a $1 million U.S. Economic Development Administration grant for a high-pressure water line needed for the plant.
The financing is a key part of the deal to convince the developers to locate the plant in Norfolk. South Sioux City and towns in Iowa have vied for the plant as well.
After the meeting, city administrator Mike Nolan said the agreement also was important for future development of the site.
“It helps us make ready the entire area for further development. That’s a significant thing,” he said.
The city late last year annexed the 179-acre site, which also contains the Arnold Engineering plant. A total of 40-45 acres will be used by the soybean plant, which will manufacture organic soy isolates used in food products.
Anticipated TIF costs under the first phase of the project are $775,000 for sewer and water infrastructure, $150,000 for an access road, $200,000 for blight removal and site clearing and $400,000 for drives, circulation area and parking.
The second phase of work will go forward when the plant expands. Anticipated costs are $450,000 for sewer and water, $500,000 for a rail siding, $150,000 for blight removal and site clearing and $100,000 for drives, circulation areas, and parking.
Under the agreement, the city will cover interest costs for sewer, water and road improvements. The company will cover interest costs on the remaining TIF-funded improvements.
The agreement calls for the site to be construction-ready by April 9.
It also says that city officials are certain that the appropriate utility companies will provide electrical, natural gas and communication services to the site at no cost to the developer.
Three board members of Specialty Protein Producers—J. Paul McIntosh of Norfolk, Kent Friedrich of Plainview and Bernie Wrede of Pierce—attended the special council meeting Monday. In an interview before the meeting, McIntosh said the group was not ready to discuss details of the project because several pieces remain to be put into place.
In an analysis presented to the city council last November, city finance director Randy Gates said plans call for a 160,000-square-foot building in the first phase and a 300,000-square-foot building in the second phase.
The project will greatly exceed the $10 million investment threshold needed to qualify for tax incentives for economic development under the Nebraska Advantage Act, Gates said. By the third year, it will exceed the 100 new jobs needed to qualify.
The initial phase is expected to involve installation of about $12 million of equipment.
The city council is expected to approve a “blighted and substandard” study of the soybean redevelopment area that is needed for the TIF agreement to move forward.
A group of investors is raising the money needed to build the plant. President of the board is Susanne Stoeger-Moore of Port Washington, Wis., former national sales manager for a food ingredients company.
- Story Courtesy of the Norfolk Daily News
